Business Environment Report: Analysis of PRIMARK and its Environment

This report provides a comprehensive analysis of PRIMARK's business environment. It begins with an introduction to the business environment and its importance, followed by an overview of PRIMARK, a private sector organization in the retail industry. The report then explores different types of organizations (public, private, and voluntary sectors) and their legal structures, followed by an explanation of the size and scope of various organizations, using PRIMARK, BBC, and Oxfam as examples. It examines the organizational structure, vision, and mission of each company. The report then analyzes the relationship between different organizational functions within PRIMARK and how they contribute to organizational objectives. Furthermore, it identifies the positive and negative impacts of the macro environment on PRIMARK's operations using PESTEL analysis. Finally, it conducts internal and external analyses of PRIMARK to identify its strengths, weaknesses, opportunities, and threats (SWOT). The report concludes by explaining how strengths and weaknesses interrelate with external macro factors. The report's structure allows for a clear understanding of the business environment and its influence on the operations of a retail company like PRIMARK.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations; public, private and voluntary sectors and
legal structures............................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations.............................2
TASK 2............................................................................................................................................6
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................6
TASK 3............................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................7
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................................9
TASK 4..........................................................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors.................10
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment acts as an most essentials element, as it consists of different types
of factors with the understanding of which organisation can effectively able to operate their
business functions (Andersson, Forsgren and Holm, 2015). Within business environment there
are different types of internal as well as external forces that further drive functioning of business
in a negative and positive manner. It is essential for business organisation to effectively
understand these factors in order to conduct business operations in a well defined manner.
Present report has been conducted on PRIMARK. Company was founded in the year 1969 and
operate their functions in retail industry. Clothing, Cosmetics and housewares are main products
of company. Size as well as scope of voluntary, public and private organisation has been covered
in this report with SWOT analysis. Lastly report include relationship among organisational
functions within organisational structure.
TASK 1
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal
structures
There are numerous range of organisations those who perform their operations in best effective
manner with an aim to gain high rate of profitability. All these organisations operate their
functions with some certain roles and responsibilities as to offer qualitative products and services
to customers. Main motive behind this is to serve customers with best and earn adequate profits.
It has been determined that every organisation perform their operations in different legal
structures. There are classification of these organisations are defined below:
Private sector
Organisations those who perform their operation in private sector have main motive
which is to effectively gain large base of profitability. These organisations are duly managed by
firms, individuals and other legal authority. In addition with this, sole traders are also considered
as private sector organisations as they perform their business by own. Organisations within this
sector effectively conduct their functions with an aim to serve customers in best effective manner
and ensure high rate of profitability. Funds have been mainly gather by these private sector
organisations through business entities, investors, bank loan, financial institutions etc.
1

For example PRIMARK operate their functioning in private sector as they conduct their
roles and responsibilities with having their own working structure.
Public sector
Public sector include those organisation who are fully controlled by public bodies,
government agencies and government bodies. These organisation operate their functions as to
serve customers in best effective manner and further provide welfare to individuals and society.
It has been analysed that public sector organisations operate their functions in a democratic way
as in this every person who is entitled can undertake their own decision. Public sector
organisation have authorisation by government entities. Further it has been determined that
organisation in this sector that different size, shape and structure as compared to legal bodies.
For example BBC conduct their operations as public sector entity and they are mainly
managed and controlled by government bodies.
Voluntary organisation
Entities those who conduct their functions in Voluntary sector have an aim which is to
effectively satisfy needs and wants of society (Apăvăloaie, 2014). These organisations allocate
funds from large private sector organisations and other organisational units. They donate their
funds as to gain goodwill. Volunteers offer their contribution willingly in order to effectively
serve individuals.
For example Oxfam conduct their functions and activities voluntary sector as to offer
welfare services of needy individual from drought prone and other affected areas. This
organisation have an aim which is to effectively increase society and individual standard of
living.
P2 Explain the size and scope of a range of different types of organisations
There are numerous range of organisations who conduct their operations as to effectively
fulfil their predetermined goals as well as objectives. All these entities have distinguished set of
size, structure and scope. It has been analysed that public, voluntary and private sector
organisations conduct their operation with having their own size and scope. Organisations with
their size, scope and structure is being defined below:
PRIMARK
2

PRIMARK conduct their services in retailing industry and was established in 1969.
company headquartered in Dublin, Ireland and serve in more than 372 locations all around their
world. PRIMARK contribute their contribution in fast fashion trend with amazingly low prices.
Main motive of company is to effectively serve their customers in best effective manner as to
gain high rate of profitability. Organisation is having their own culture and environment and
further treats their customers with best and qualitative products as well as services.
Vision and Mission PRIMARK a private sector organisation perform their activities with
a formative mission which is to effectively serve their customers and expand their services in
those areas where they still untouched. Further it has been analysed that PRIMARK main vision
is to become “ Consumer first priority”. With Vision and Mission objectives company lead
towards more directional growth and opportunities.
Size and scope PRIMARK serves in more than 372 locations with having 70,000 and
more employees. Key areas where company offer their services include Austria, Netherlands,
France, Italy, Germany, United Kingdom and more. In addition with this, PRIMAK is planning
to make an expansion of their services in Europe region in order to effectively serve European
consumers with their best services (Botha, Kourie and Snyman, 2014).
Organisation structure:
Illustration 1: Structure of the PRIMARK
3

Sources: Structure of the PRIMARK, 2018
BBC
BBC conduct their functions as one of the leading broadcasting firm. Company also offer
their services as Financial Institutions as they offer services like TV views to consumers,
investment generation in well defined manner. In addition with this, organisation also provide
best effective services as Consultancy Service.
Vision and Mission Organisation vision statement is to make “ “People thought to be
broadcast”. In addition with this, it has been determined that Mission statement of company is to
effectively increase overall organisational profitability by 20% with coming next financial years.
Size and scope
BBC offer their services as one of the largest and leading broadcasting entity and conduct their
operations in different nation with 1200 and more than employees. It has been determined that
organisation is having flat organisational structure in which they have diverse range of business
functions.
Organisational structure:
4

Illustration 2: Organisation structure of the BBC
Oxfam
Oxfam operate their operations as charitable organisation. It is a combination of 20 other
entities and further offer welfare to society in best effective manner. This entity offer their
contribution in drought prone, famine prone etc. areas in order to effectively increase individuals
living standard.
Vision and Mission Oxfam a voluntary charitable organisation conduct their operations
with a mission which is to effectively serve society and offer them welfare and humanitarian
services. Vision of entity is to enhance living standards of individuals.
Size and scope Oxfam does not have any particular form of structure as their services are
operated with the help of volunteers . Scope of entity is to increase individual living standard and
offer humanitarian services world wide.
Organisational structure:
Figure 1 Oxfam's organisational structure
Sources: Organisation structure of Oxfam, 2019
5

TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure
In an organisation there are different types of departments those who operate their
functions in coordinating manner (Bocken and et.al., 2013). Organisations are required to
conduct their operations in best effective manner thus, for this it is essential for all departments
to have formative set of relationship with each other in order to goals and objectives in well
defined manner. PRIMARK conduct their operations in retailing segment. This industrial sector
measure a lot competition. Thus, it is essential for them to effectively interrelated their functions
as to gain more competitive advancements as compared to their rivals. Mentioned below
interrelationship among PRIMARK department is being defined:
Finance with human resource department:
PRIMARK human resource department effectively perform their operations with finance
department in best effective manner. As they operate their functions in an interlinked manner.
Human resource department provide talented candidates to finance department. This benefits
them to effectively conduct their financial operations. While finance department of company
offer adequate and required sum of funds to human resources department that aid them to
conduct their operations related to recruitment, training and other. This lead towards effective
accomplishment of organisational goals and objectives.
Marketing with finance department:
Both of the marketing as well finance department are key pillars of PRIMARK. Thus, it
is essential for these department to operate their operations in a combined manner. As with the
help of this they can effectively able to increase organisation profitability and well as
productivity. Marketing department aid finance department by increasing organisational sales
and fund reserves while finance department offer financial aid to marketing department in order
6

to effectively conduct their operations. With the help of this both departments can effectively
able to accomplish goals and objectives of organisation in best effective manner.
Human resource with sales department:
Human resource department and sales department of Primark are interrelated with one
another. It has been identified that company deals in retail sector thus it requires a highly skilled
staff who can perform all organisational activities in effective manner that also supports them in
gaining competitive advantages. Here, it can be said that HR manager of the company tries hard
to select effective and skilled workforce for sales department who could easily examine
requirement of market and according to that only they develops their sales activity which leads
to improvement in sales performance of the company in rightful manner. This shows
interrelationship between both the department. Along with this, sales department of this company
also convey required number of skills in workforce that makes it easier for them to finalise right
candidate according to the requirement. The main advantage and disadvantage of this are
described as below:
Advantages: Strong relationship between both the department will allow them in
bringing best talent in the company so that organisational goals and objectives as well as their
personal goals can be attained in quicker manner. Right selection of employees will also lead to
reduction in employee turnover with in Primark. Along with this, another advantage of this for
the company is that sales performance of company will be raised as effective staff will provide
better output to the company.
Disadvantage: Excessive link among two or more department could affect organisation
in negative manner as they might get confused and could also forget their core motive. Along
with this, higher influence of one department on another could also create conflicts at workplace
which directly affects their working capability and might also reduce their productivity of
department at individual level.
7

TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
Organisation is required to effectively evaluate macro environment impact on
organisation functions in order to conduct operations in smooth and effective manner. It has been
analysed that macro environment include different types of elements that impacts on an
organisation in a negative manner. Thus, it become essential for PRIMARK to effectively
evaluate political, economical, environmental, legal and social factors as to increase
effectiveness of operations. PESTEL analysis has been in context with PRIMARK is being
conducted below:
Political factor:
Political factor include laws, legislations and rules of government which is required to be
undertaken by organisations in order to abide by them as to conduct their operations in best
effective manner. This factor mainly determines government interference. Thus, PRIMARK is
required to ensure that they implement all government trade policies, pricing policies and more.
Positive – PRIMARK also operate their services in UK which is having stable market
stability. In addition with this, UK government is also taking many welfare decisions for
organisation that will benefit company to grow their opportunities.
Negative -Strict regulations of government on trade may turn out as an negative factor for
PRIMARK as this will affect their import as well as export of products.
Economical factor:
Economical factor is related to inflation, economic condition of country, economic
growth, exchange rates, inflation and more. These factor affect organisation activities as well as
consumer purchasing power.
Positive – UK economic conditions continuously measure steady growth and it is
included in world leading economies. This will benefit PRIMARK to gain many developing
opportunities and growth for this region and increase their profitability.
Negative – Government of United Kingdom increased interest rates relating to products
and services. This will impact on sales of PRIMARK products as well as services that later
impact on their profitability.
Social factor:
8

Social factor covers different types of factors such as attitude, culture and believes,
education level, population class structure, leisure interests and more (Cairncross, 2014 ). It is
essential for PRIMARK to effectively undertake proper understanding of all these factors in
order to effectively operate organisational operations.
Positive -It has been analysed that culture and consumer lifestyle of UK society match
with PRIMARK products as well as services. This will benefit company to increase their overall
sales ratio in best effective manner.
Negative -Due to change in consumer needs and wants in continuous manner affect
PRIMARK in negative way. This will affect organisation functioning in many different ways.
Technological factor:
Technology include factors relating to innovation and development. This impacts on
PRIMARK operations in many ways. As in this company is required to keeps on updating their
software, and other technological aspects as to effectively operate their operations.
Positive – UK is technologically advanced which will impact on PRIMARK in positive
ways. Thus, company can undertake the use of new as well as updated technology in order to
effectively increase organisational productivity.
Negative -In order to compete with other organisational units company require huge
amount of fund. In addition with this, company is required to provide training to their employees
in order to use implemented techniques that also require funds.
Environmental factor:
Environmental factor include elements related to laws relating of pollution,
environmental laws, weather condition, waste management and climate change. All these factors
impact on organisation in negative as well as positive way. Thus it is essential for PRIMARK to
implement all environmental laws and regulations in best effective manner in their
organisational structure.
Positive – PRIMARK can lower down their operational waste and can take use of
recycling process in order to create strong brand image. In addition with this, company can also
take advantage of corporate social welfare in order to effectively contribute towards environment
and society.
Negative -Critical inspection and observation lead towards adding additional cost in
PRIMARK operations. This affect organisation in many different ways.
9