HND Business Environment Report: Primark's Organizational Analysis

This report provides a comprehensive analysis of Primark's business environment, examining the impact of both internal and external factors on its operations. It begins by defining the business environment and its significance, then delves into Primark's organizational structure, objectives, and functions, including finance, sales and marketing, human resource management, administration, research and development, and manufacturing. The report further explores the positive and negative impacts of macro-environmental factors, such as political, economic, social, technological, legal, and environmental influences, on Primark's business. Finally, it conducts an internal and external analysis of Primark, utilizing SWOT analysis to identify its strengths, weaknesses, opportunities, and threats, offering insights into its strategic positioning and challenges within the competitive landscape. The report concludes by highlighting the interrelation between organizational purposes and goals.

BUSINESS ENVIRONMENT

INTRODUCTION
Organizational surrounding is term which defined as a cluster of external and internal
factors which have a greater influence on a decisional process of an organization. In fact
surrounding of enterprise is divided into two parts macro and micro which affect employees
working there in various manner. Therefore environment act as a indispensable tool in success of
a company because it consist of all the essential resources which is used by organization during
manufacturing process(ZhenLin, 2016). Basically this report is going to classified into two parts
which shows indispensable role of environmental factors towards achievement of their goals and
objectives in a given time frame. Primark is a multinational enterprise expanded across national
borders and popular for its trendy clothes of new born babies, men's wear, women's clothes,
accessories as well as beauty products. It means assignment is going to throw lights on influence
of external and internal factors on Primark which affect their success as well as decision making
process. Apart from this, report also explains various types of organization existing in a
corporate world and shows its size or scope at a marketplace. At last it consist of negative impact
of environmental factors on selected business by showing relationship between external and
internal surroundings (Guang, 2016).
TASK 1
P1 Covered in PPT
P2 Covered in PPT
P3 Interrelation between several organizational purpose and its relation with goals
Primark is a multinational corporations having its branches across national boundaries by
introducing innovative and catchy products to satisfy the desires of domestic as well as foreign
clients. Basically they are popular for its qualitative goods with best services and they
manufacture men's wear, women's clothes, accessories as well as grocery items (Worthington,
2015). They are going to follow hierarchical structure to achieve their set target and objectives in
given time frame. According to this structure they need to classified works in between
employees on the basis of their knowledge and skills. Therefore higher authority have too much
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duties and responsibilities towards success of organization. Main objectives of Primark is
described below :-
 They need to expand their business across national boundaries for seeking the attention of
foreign consumers.
 It is very essential to provide best goods and services to their customers at affordable
prices.
 Contribute in economy of a nation by creating employment opportunities for unemployed
people which resulted in a entire development of a country.
 Providing employment opportunity to various unemployed individuals so that they can
live their live comfortably (Britton, 2015).
 Their main motive is to manufacture goods which does not harm surrounding of UK.
 Trying to increase their supply and demand of goods and services.
Apart from this Primark performs various organizational functions to run their business
smoothly which are mentioned below :- Finance :- Capital is a backbone of an organization because all the activities and task are
implemented with the help of sufficient fund. Therefore managers of Primark is trying to
maintain all the records in a proper way which is very useful in preparing budget for
organization. Main motive of finance is to make appropriate plans by considering
financial statements of previous year for maximization of profit. Sales and marketing :- According to this function sales managers need to increase their
sales by adopting useful and effective methods of promotion of products. Basically they
perform all the roles and responsibilities of market for example advertisement of product,
assessment of marketplace, analysis of competitor strategy or other marketing activities
(Trkman, 2010). Human resource management :- Personnel managers of Primark is responsible to
selecting or recruiting right person at a right job on the basis of their talent and
knowledge. Therefore they need to conduct various improvement programmes for
employees for example training and development, motivational session with the help of
specialised and experienced persons. In fact various functions which is performed by
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human resource mangers are selection of deserving candidates, conduct improvement
session, enhance the knowledge of existing employees, design induction programmes etc. Administration :- According to this functions, administrative of a company are liable to
provide support to various other department. In fact their main motive is to organize and
managed overall enterprise in a proper manner by maintaining accurate records. Apart
from this administrative managers have the authority to control all the activities are task
occurring in an enterprise (Teece, 2010). Research and development :- Investigation team is conducted by organization for
gathering accurate information and data which is useful at the time of decision making
process. In additional they are helpful in collecting various effective content which act as
a indispensable tool in raising the standard of their products by modifying their available
goods.
 Manufacturing department :- First and foremost motive of this department is to convert
raw materials into finished goods for satisfying the needs and wants of desired customers.
Main objective of a production department is to design and produce creative goods by
considering various essential factors which plays a very vital role in attainment of
companies goals (Srdjevic, 2012).
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Illustration 1: Functions of Primark

By concluding all these above functions of Primark it has been understood that objectives
of n organization is mainly depended upon all the above department due to its roles and
responsibility towards attainment of goals.
TASK 2
P4 Optimistic and pessimistic impact of external surroundings upon organizational operations
All the environmental component have a greater impact on business operations of
Primark due to its roles and responsibilities played in an organization. Therefore they influence
manufacturing department in both manner either in negative or positive because of their broad
concept. Operational department of cited company is affected by various macro environmental
factors positively and negatively which are explained below :-
 Political factors :- All the rules and regulations are implemented by governing bodies
which must be followed by cited company to run their business effectively. But somehow
it act as positively and sometime negatively which is stated as follows -
Positive impact :- These norms of government remove discrimination from surrounding and
provide equal opportunity for development of an enterprise (Bajcetic, 2012). All the organization
existing at a marketplace are equal in the eye of advisory bodies.
Negative impact :- Sometime it creates restriction while exchanging goods and services
across national boundaries which act as a major obstacles in success of a Primark.
 Economical factors :- According to this external factor an organization get influenced
directly or indirectly which resulted in a both way for example :-
Positive:- If there is a decrease in taxation of a nation then it affect the export and import
of a goods and services which somehow very much beneficial for Primark (Srdjevic, 2012).
Therefore they can easily maximize their profit.
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Negative :- If there is a change in exchange rate or currency rate of foreign countries then
a cited company has to suffer heavy losses which affect their supply of goods.
 Social :- Operational management also affect overall society due to change in
environmental factors in different manner which are mentioned below :-
Positive:- Introduction of new and creative products capture the minds of million of
customers which maximize the product demand at a marketplace. In fact sometime managers of
production department trying to manufacture unique product to satisfy the needs of desired
consumers (Self, 2012).
Negative affect :- Sometime society get attracted towards foreign products due to which
there is decrease in sales of a product which influence success of a Primark. In fact change in a
taste and preferences of a customers have a negative impact on chosen enterprise.
 Technological:- Emergence of advanced technology affect manufacturing department in
two ways such as -
Positive :- One of a major advantage of innovative technology for business operations that
employees can complete their work in a minimum time period by attaining its goals and
objectives. Apart from this advanced technology is very useful tool in enhancing the knowledge
of a exiting employees and labours (Wu, 2012).
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Illustration 2: Influence of market on economy

Negative:- Unskilled labours are not aware how to handle or manage new equipments and
technology due to their new features which is not easy understand for less knowledgable
employees.
 Legal :- According to this environmental factors an organization need to follow all the
legal rules and laws while manufacturing any products. It means they need to acquire
permission from legal bodies before producing some particular products. Therefore it also
affect an organization in two ways which is stated below :-
Positive :- Protect society from harmful and dangerous products which may cause any
disease which affect the life of a human beings. Thus operational manager must consider all the
essential laws and norms implemented by legal bodies.
Negative :- Sometime managers of production department feels like restrict during
exchange of goods at international level due to legal formalities. In fact it will consume
maximum time in transferring of goods from one place to another (Schwenter, 2011).
 Environmental :-
Positive impact - One of major factor is a environmental which is very helpful for business
operations because it provides all the necessary resources for example land and building, plant or
machinery, labours , raw materials etc.
Negative impact :- Shortage of necessary resources which affect success of Primark in
different manner. In fact it affect overall society and demand of a individuals which is not
fulfilled by organization due to limited resources.
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Illustration 3: Macro factors

P5 Internal and external analysis of Primark
Primark is very much affected micro environmental factors due to their broad concept
with complex nature as well as it affect success of an enterprise in different manner. In fact
assessment of internal and external factors is very much useful in identifying its hidden problems
and obstacles which influence the success of a company (Sainsbury, 2011). Basically Primark is
a multinational organization expanded across national boundaries due to which they are facing
various challenges and risk at international level due to which objectives of an organization is get
affected in various manner. Therefore to resolve all these challenges and determination of a
barriers an enterprise need ton conduct SWOT analysis which is mentioned below :-
Strength :- According to this factor an organization is going to aware about their hidden talent
and capability of employees due to which they are attaining their goals and objectives by
satisfying domestic as well as foreign consumers. Primark have many more strength due to
which they attain their target in a minimum time period which is explained as follows :-
 Qualitative products which is major power of seeking attention of different customers
across national borders (Benton, 2011).
 Implementation of impressive and attractive schemes and policies for manufacturing
catchy products.
 Appointed skilled and talented employees so that they can handle and manage advanced
technology for completing their task in a minimum time period.
Weakness :- According to this, an organization need to find out the reason behind unsuccessful
as well as major disadvantage which affect overall development of Primark. Due to emergence
of numbers of competitors an enterprise is going face various problems due to their inner
weakness which is mentioned below :-
 Shortage of capital is a major drawback of a referred company which influence their
profit.
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 Mismanagement of overall company.
 Stressful environment influence the employees working in an enterprise.
 Improper interaction in between higher level and lower level creates a confusion
between them (Raza, 2013).
 Limited resources is also one of main disadvantages which affect success of a
company.
Threats :- One of a indispensable factor which must be considered while making strategies for
cited company so that an organization must know about products of their competitors . Major
threats of Primark are mentioned below :-
 Products of their competitors have a major threat for example Zara, H&S and many
other clothing industry which affect success of an organization.
 Changes in taste and preferences of consumers.
 Emergence of various competitors with different and unique products which attract
number of consumers affect the policy of a Primark.
Opportunities :- Primark is expanding its business across national boundaries which creates
various opportunity and ideas of seeking attention of domestic and foreign consumers (Hanif,
2013). Basically an organization need to alter its goods as per customer demand by
considering necessary elements which act as a indispensable tool in achieving objectives of
firm.
P6 Strength and weakness interrelate with external macro factors
Primark is a multinational brand which influences by change in a environmental factors
due to their roles and responsibility towards organization. Basically strength and weakness have
a major relations with macro factors because success of business is mainly depend upon them
only. Interrelations between micro and macro factors is mentioned below :-
Micro factors Macro factors
Strength-
1. Major advantages of Primark is a qualitative
PESTLE :-
Political- All the rules and norms are amended
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products which capture the minds of numbers
of customers (Pizam, 2010).
2. Secondly, they have very skilled and
dedicated employees.
3. Expanded across national boundaries by
introducing innovative products.
Weakness :-
1. Poor marketing strategy.
2. Lack of communication in between higher
authority and lower authority.
by governing bodies due to which Primark get
affected.
Economical :- Wage rate and income rate is
very much affected by reform in a economical
situation.
Social :- According to this society is very
much affected by change in a social factors.
Technological :- Emergence of advanced
technology influence the marketing strategy of
a company (Pestle, 2012).
Legal factors :- Various laws and rules and
amended by legal authority restrict Primark
during export and import process.
According to the above comparison it has been understood that micro and macro factors
both are interrelated with each other in every manner. For example if there is change in rules and
laws of legal authority then marketing strategy of a company influences due to strictness over the
seas. Apart from this while comparing strength of a company with political factors it has been
concluded that if governing bodies have change their norms of granting licence for specific
products then production department get affected (Colvard, 2012). In additional Primark is
having its branches at international level with their creative minds by considering all the internal
and external factors which impact overall organization in various manner. Effects of these factors
are mentioned below :-
 Change in taxation rate or currency rate resulted in a inflation or deflation which
influence strategy of a company.
 Any sudden disaster affects overall surrounding of an organization and due to which
Primark has to face heavy loss.
 Unskilled and less knowledgable persons creates problem for company while attaining its
goals and objectives in a minimum time period (Molly, 2010).
 Availability of limited resources resulted in a creation of minimum goods.
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CONCLUSION
As per above mention this research report is based on business environment, it played
very important role in any kind of firm this is very essential to managed and controlled all over
activities and operations of the company. For properly analysing and evaluating actual position
and strengths of the organization there has been used SWOT method with the help of this easy to
identify actual condition and position of cited company. Business environment affected by
different factors and causes for effectively determining them here has been used PESTEL. It
includes all over component which can be impacted in negative and positive manner. In this
research report has been discussed about different types of organisational structures as per that
easy to clarify working style of a particular firm. Primark is one of the largest leading company
across all over the world which is dealing with clothing products.
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REFERENCES
Books and Journals
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