Business Environment Report: Primark, UK, and Global Factors

This report provides a detailed analysis of Primark's business environment, encompassing various aspects of its operations and external influences. The report begins by examining Primark's engagement with stakeholders, including its responsibilities and strategies as an organization. It then delves into the economic systems of different countries, focusing on the impact of monetary and fiscal policies on various sectors within the UK. Furthermore, the report explores different market structures, market forces, and the business and cultural environment. Finally, the significance of international trade to UK business organizations, the impact of global factors, and the influence of European Union policies on UK businesses are discussed. The report offers a comprehensive overview of the factors shaping Primark's business environment and its strategic responses to these factors.

BUSINESS-ENVIRONMENT
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Contents
Task 1...............................................................................................................................................3
1.1 Primark ..................................................................................................................................3
1.2 Primark’s engagement with stakeholders..............................................................................4
1.3 Responsibilities and strategies of Primark as an organisation...............................................6
Task 2...............................................................................................................................................8
2.1 Economic system of various countries..................................................................................8
2.2 Impact of monetary and fiscal policy on various sectors of UK............................................9
2.3 Competition policies by government...................................................................................10
Task 3.............................................................................................................................................12
3.1 Various market structures....................................................................................................12
3.2 Market forces.......................................................................................................................13
3.3 Business and cultural environment......................................................................................15
Task 4.............................................................................................................................................17
4.1 Significance of international trade to UK business organisations.......................................17
4.2 Impact of global factors on UK business organisations.......................................................18
4.3 Impact of policies of European Union on UK business organisations................................19
References......................................................................................................................................21
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Task 1
1.1 Primark
Primark is a clothing retailer company dealing in most of the countries in UK. This company was
founded in Dublin, Ireland as well it has its headquarters in the same place. The international
headquarters of Primark is registered in Ireland. This company is a subsidiary of Associated
British Foods (ABF) which is an international food, ingredients and retail group. Primark is a
well known name in the area of clothing in UK as most of the people in UK must have used the
clothes of Primark once. This company provides a variety of range of products of clothing,
accessories and many other products.
a) The public sector: Public sector organisations are those organisations which are owned and
controlled by government. The main purpose of these organisations is the welfare of general
public as there is no interference of private sector in these kinds of organisations and the main
aim for which public sectors are established is to do welfare of the society (Goh, 2012).
OECD
OECD stands for Organisation for Economic Co-operation and Development which is
established with a view to develop and promote the policies which are made by government that
will improve the economic and living standard of the people of society.
The purpose of OECD is as follows.
1. To work for the betterment of the society.
2. To develop and promote the policies for economic development of the society.
3. To share a platform to the people to seek solutions for their problems at a single place.
4. To bring economic, social and environmental changes in the society.
5. To improve the quality of living of the people.
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6. To enhance future sustainable growth in the society.
7. To support new sources of technology and innovation in the society so that it helps in
development of emerging economies.
8. To ensure that the people of society work efficiency and effectively so that they get
satisfactory job for them.
9. To improve the quality of services provided by the existing organisations in the market.
10. To take all those measures which are resulting to uplifting of society as well as providing
the society all those facilities which can improve the living standards of people and results to the
growth of economy.
These above mentioned are the purposes of OECD which is a public sector organisation.
Cooperative company: Cooperative organisations are working as a common goal of economic
and social purposes. Main aim of these type of companies is to provide effective services to their
member to maintain their sustainability within organisation. Purposes are set in term of specific
outcomes that what members want to achieve through offer services (Boinet & Martin, 2010).
All people are working for common goal and objectives of the business to attain effective results.
Cooperative bank is working for common goals and objectives within the marketplace.
Charitable company: Charitable business is working as non profit company. They are providing
social and welfare services to poor people. Their main purpose is to protect children and other
people from abuse, discrimination and provide them proper food. In UK SOS Children's Village
working as charitable firm which focus on alternative care for children who cannot live with
their parents.
Mission of Primark
Primark has mission to provide effective retail products and services to their customer to
protect their life.
Vision of Primark
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Primark has vision to protect their customer through offer them low cost products and
services.
1.2 Primark’s engagement with stakeholders
Primark is such a growing company which has captured the retail market of US with its varied
range of products which is only because of its stakeholders because no business can run in
isolation and it is very important for every business to satisfy its stakeholders so Primark also
meets the objectives of its stakeholders.
Stakeholders of Primark: stakeholders of Primark are the persons who are related to Primark
which includes all those persons which are directly and indirectly affected by the activities of
Primark. Stakeholders are the persons who are in concern with the Primark such as creditors,
employees, shareholders, government and all other people who are affected by the activities of
Primark are the stakeholders of Primark (Voinov & Bousquet, 2010). The activities which show
that Primark has been successful in meeting the objectives of its stakeholders are as follows.
1. Good competitive performance of Primark: Primark is such a leading name in the
clothing industry in UK that it is providing a good competition to other clothing industries with
its variety of products.
2. Good corporate governance followed by Primark: Primark follows a good corporate
governance that company regularly follows all the rules and regulations of government that even
company pay all the taxes on time this shows that company’s main motive is to earn profit along
with following a good corporate practise.
3. Good quality services by Primark: Increased numbers of customers shows the good
quality services provided by Primark that the products provided by Primark so good in quality
that the customers are satisfied with the products.
4. Customer’s satisfaction: Primark provides satisfaction to the customers through its good
quality services and good products in better prices and the rapidly increasing revenue of the
primakr shows the satisfaction of customers.
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5. Providing employment opportunities in the society: Primark has captured most of the
places in UK through its market and also rapidly increasing business it is tend to open new stores
at various other places so through this it is providing more employment opportunities to the
people of society.
6. Better competition: There are various brands in UK which are dealing in clothing
industry but the increased revenues and rapid growth in the business of Primark is giving a good
competition to other business of same industry (SHARFSTEIN, 2016).
7. Ethical behaviour of Primark: Ethical behaviour of Primark, providing the best quality
services to the customers along with better prices to the society shows the behaviour of Primark
towards providing the satisfaction to its stakeholders.
8. Increased revenue of Primark: Increased revenues of Primark is a evidence that the
company is successful in meeting the expectations of its stakeholders that company is growing
keeping in view the interest of its stakeholders.
These abovementioned are the extent to which Primark meets the objectives of its stakeholders.
1.3 Responsibilities and strategies of Primark as an organisation
There are so many responsibilities of every organisation towards its stakeholders, employees,
government an towards all other people who are related to the organisation same as this there are
so many factors that affect the business of Primark so there are certain responsibilities of Primark
as an organisation which are as follows.
1. To provide equal opportunities to the employees: Employees play a very essential role in
every organisation same as in Primark employees are indirectly responsible for the success of
Primark so it is the prime most responsibility of Primark to provide equal opportunities to its
employees.
2. To treat the suppliers fairly: Business of Primark cannot run without its suppliers so it is
the responsibility of Primark to treat all its suppliers fairly.
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3. To respect the local communities with respect: Primark should respect the local
communities with respect so that Primark can run its business fairly in the market (Dinu, 2014).
4. To fulfil the responsibilities towards environment: Primark has some responsibilities
towards environment too that it should not do any such activity which can harm the environment.
5. To follow good corporate governance: To retain the stakeholders to the company Primark
should focus on following good corporate governance.
6. To indulge itself in charity works: It is the prime responsibility of each organisation as
well as Primark too to contribute some of the part of its revenues to charity for the betterment of
the society.
7. Primark possess various responsibilities to their different stakeholder in which for
customer, they have to provide them effective qualitative products and services. This is because,
every customer demand products which are in good quality. In addition to this, customer has also
objective is to get low cost for every product within the enterprise. Hence, it is crucial
responsibilities of the cited firm to concentrate on cost of company products.
8. Further, employee possess objectives is to effective and proper working environment
from Primark. Hence, the organisation need to concentrate on employment opportunities
with eliminating discrimination from the business. It will assist to maintain sustainability
of workers towards the cited firm (Boinet & Martin, 2010).
Strategies employed by Primark to meet the responsibilities as an organisation
Primark has some strategies through which it can fulfil all its responsibilities which are like
Focus on targeted customers: The main strategy of Primark is to focus on targeting customers so
that they can fulfil the expectations of targeted customers as well as can earn revenues from them
along with providing them satisfaction (Enst, et.al, 2016).
To include all the marketing mix elements: Marketing is essential for every business so the
strategy of Primark is to use all the marketing mix elements for its products as marketing plays a
very important role in the success of business.
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Product portfolio analysis: Primark introduces its products in the market after the portfolio
analysis so that Primark has not to face the product failure.
Brand strategies of Primark: Primark strategy is to build the brand image in the name of it so that
people know its name due to its quality and reasonable prices.
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Task 2
2.1 Economic system of various countries
Economic system means the system through which the country and government distribute the
resources and services. These systems are used by the government to control the systems of the
economy so that government can maintain a proper balance between the distribution of resources
this system brings equality in the country so that equality should be established which results to
the growth of country. There are four types of economic systems which are as follows.
1. Traditional economic system: This system refers to that type of economic system where
economies produce the products and services of the basis of old customs that is why it is known
as the most ancient economy.
2. Command economic system: This system refers to that type of economic system where
the whole power related to the products and services are vested in government and there is no
control of private sectors.
3. Market economic system: This system refers to that type of economic system where there
is no role of government in the economic system and it is also known as free economy where the
economy is run by private organisations.
4. Mixed economic system: This system refers to that type of economic system where it is a
mixture of both command and market economic system that is why it is also known as dual
economy (Ostrom, 2010).
In the above four economic system every country has its own economic system as each country
is free to develop its own economic system. Economic systems followed by some countries are
as follows.
Cuba: The economy of Cuba is an isolated economy which is dominated by companies which
are owned by state such as military and political. Cuba has a command economic system where
there is a lack of vitality in the economy and most of the non state sectors has expanded but due
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to non political support business in Cuba are suffering from poor environment and poor
regulatory framework. Cuba country possess dual economy system, in which two economy take
place in the nation. In this one system consist socialist in which country provide free education,
health care and many other services within nation. Beside this, government owned planned
economy system which assist to take decisions of country in effective term (Boinet & Martin,
2010). If Primark follow this type of economy system, they have to follow all rules and
regulations which made by government.
United Kingdom: Economy of UK is in the list of largest economies in this world as it has a
mixed economic system. The services sector, construction and manufacturing sector of UK has
been increasing on a rapid growth. The current GDP of UK is rising and even the movements in
the bonds and currency markets are attracting the customers to invest in UK. The economy of
UK is one of the globalised economies of this world. In UK mixed economy system are take
place which assist to make major decisions of the market. Some decisions are take by
government and other are taken on the basis of market demand. This is because, market take
decisions on the basis of customer demand and government support different system such as
supply of water, electricity and build roads, etc. According to this economic system, Primark
need to concentrate on customer demand and rules and regulations of government as well.
China: China has a mixed economic system as china is known in the whole world for its
manufacturing and production concern. Since last few years China has faced a period of market
volatility and slowdown of the economy but due to the rising market China has been able to
recover its economy and China is the global hub for the manufacturing which is well known fact.
China is the largest manufacturing economy in this world as well as the largest exporter of good
in this world. China possess command economy system in which decisions are made according
to government. Every organisation need to make changes their operations on the basis of
government rules and regulations. Only government give proper direction to company to produce
goods and services within the marketplace. If Primark possess this economy system, they have to
concentrate of allocation of resources according to government.
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2.2 Impact of monetary and fiscal policy on various sectors of UK
Monetary and fiscal policy: Monetary policies refer to those policies of government which are
introduced to control the supply of money in the market where fiscal policies are introduced by
the government to adjust the tax rates and expenses of the economy.
Impact of monetary and fiscal policy on housing
Housing policy of UK reflects the growth of economy as housing denotes the living standard of
people so government of UK introduces the monetary and fiscal policies in the favour of the
people as to provide housing services to all the people of UK. Through fiscal policies
government has reduced the tax rates on home loans so that more and more people of UK can
fulfil their dream of having a own home. Government is also providing homes to the people of
UK along with providing them employment as in forward time the properties in UK are going to
be unaffordable to through monetary policy government of UK is controlling the supply of
money in other sectors and promoting the supply of money in housing sector with a view to
provide affordable housing to the people of UK (Miles, 2014).
Fiscal policy create positive impact on housing sector to provide better housing to each
level employee. With the help of fiscal policy, poor and needy people are protect easily. Further,
it consists for enhance living standard and workers conditions effectively. It creates impact in
term of taxes, corporate profit rates and indirect taxes. Beside this, central government
determines monetary policy which influence to money supply within the country. It majors
influences to inflation which is important part of employment and consumption level. It also
generates negative impact due to diminishing aggregate demand and supply (Boinet & Martin,
2010).
Impact of monetary and fiscal policy on farming
Farming is the most ancient source of income but somewhere this trend is coming to an end is
UK so in order to uplift this trend government in UK has decreased the tax rates on agricultures
through its fiscal policies with a view to promote agriculture in UK also government of UK has a
vision of sustainable growth in the agriculture so that the export from this increased which will
be resulting into the increased revenues with the growth of the economy. Government of UK is
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controlling the supply of money on farming through its monetary policies so that all the facilities
should e provided to the people who are engaged in farming so that they can do better farming
and they can contribute to the growth of economy through farming. Through these policies
government of UK is promoting sustainable growth in the farming sector and also it is providing
the possible facilities to the people so that the agriculture business of UK can be promoted and
also various subsidies are provided by the government to the people to increase the business of
agriculture (Boinet & Martin, 2010).
Fiscal policy is very important element which determines to promote growth and equal
distribution of agriculture sector. It generates positive impact on the business technology and
infrastructure development which are important part of agricultural business. It will helpful to
farming to enhance growth in the future. On the other hand, monetary policy also create major
impact on farming sector. This is because, it adopts new production practice and input material
which assist to focus on effective production system. Hence, funding are requires for enhance
business operations.
2.3 Competition policies by government
Competition policies are introduced by the government to promote fair competition in the market
so that no business can take disadvantage of competition as well as the main aim of government
behind these competition policies is to provide relief to the business to carry on free trade in the
market as well as their trade is not affected by any such factors and there are various competition
policies which are introduced by government with a view to improve the competitive process and
to make sure that consumers are benefitted with these policies some of them are as follows.
Laws enacted by the government to reduce monopoly power: There are various laws enacted
by the government of UK against all those business which enjoys monopoly power in the market
as monopoly leads to unfair competition in the market as well as provides dissatisfaction to the
customers relating to the prices of the products (Drinkwater & Jennings, 2016).
Privatisation: One of the competition policies of the government includes privatisation in order
to remove unfair competition from the market so that organisations can run their business freely
as well as customers are also benefitted with the free trade in the market
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