Business and Business Environment Report: Primark Analysis

This report provides a comprehensive analysis of Primark's business environment, covering various aspects of its operations and strategic decision-making. It begins with an introduction to the business environment, highlighting the impact of external and internal factors on business performance. The report then delves into the different types of organizations, their sizes, and scopes, followed by an evaluation of organizational structures and functions. Task 1 explores different types of organizations, including public, private, and voluntary sectors, while also examining their size and scope. Task 2 focuses on organizational functions, such as marketing, human resources, and finance, and their interrelationships with firm objectives. Furthermore, the report analyzes the macro environment using the PESTLE model and evaluates the impacts of macro and micro factors. The report concludes with an internal and external analysis of Primark, including a SWOT analysis and its influence on the company's decision-making processes. The report aims to provide insights into Primark's business strategies and the challenges it faces within its competitive environment.

Business and Business
environment

Table of Content
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Different types of organization and its types.....................................................................3
P2 Size and Scope of different types of organisations...........................................................5
M1 Evaluation of different types of structure and scope........................................................6
D1 Critical evaluation of various organisations, its size and different functions. .................6
TASK 2......................................................................................................................................6
P3 Different organisational function and its international between firm's objectives............6
M2 Advantage and disadvantage of interrelationship between organisational functions......8
TASK 3......................................................................................................................................8
P4 Postive and negative impact of macro environment..........................................................8
M3 Analysing PESTLE model...............................................................................................9
D2 Critically evalting the impacts of Macro and micro factors..........................................10
TASK 4....................................................................................................................................10
P5 Internal and external analysis of Primark .......................................................................10
P6 Interrelation of strength and weakness with external macro factors...............................11
M4 SWOT analysis and its influence on Primark's decision making...................................12
CONCUSION...........................................................................................................................13
REFERENCES.........................................................................................................................14

INTRODUCTION
Business environment is to complex and change over a period of time which having a
great significant on the business and its future performance. There are two major environment
which is related with the business environment. External factors having a large impact on the
business which can not be controllable by the company. On the other hand, internal
environment is related with the internal elements of the business organization such as
employees, customers, motivation, leadership, organizational culture and polices etc. this is
the role of the business entity is to control and overcome the impact (Morrison,2011). The
present report is based on the Primark which is one of the leading retail business in the
United Kingdom. They provide a wide range of products and services to its customers which
can leads to increase their revenue and profitability which is the core objectives of each and
every business unit. The main purpose of this report is to identify those factors and try to
overcome in the future sop that they can achieve their desired goals and objectives in an
effective manner (Keillor, 2013).
TASK 1
P1 Different types of organization and its types
Business is the exchange of goods and services in order to gain profit from the
market. There are two types of organisations one of profit making and another one is non-
profit making. Both firm's are having its different goals and objective. The role of these
business unit in to the economy is too significant. It can help to generate revenue, provide
growth to the country and create new jobs. The role of the government in the development of
these units are too important. These organisation are divided in to three categories which as
given below:
Public sector: This is one of the major business unit which is related with the
government and other enterprises. These business units are owned and operated by the
government which can help to provide various goods and services to the public (Guay, 2014).
These units main aim is to focus on the maximum production and not concentrate on the
profit. There are various firm's which are related with the public sector in the United
Kingdom. The main purpose of these unit to provide public services and earn revenue for

their operational profits. These companies are legally formed according to the UK companies
act. These can be related with the different sector which is given below:
Education sector: This is one of the key sectors which can be related with the public
sector. There are various educational institutions, collages and universities which are under
the government control and provide their services at free of cost or at minimum cost the
public. The main aim of these units is to provide education to their customers ( Bataglia, and
Meirelles, 2009).
Power sector: This is another important sectors which is related with the electricity
and power generation. These organisation having a large role in the growth and development
of the country economic growth. Therefore, the government having a full control on such
units.
Oil and gas: This are related with the mining and oil drilling resources which are
under control on the government authorities. The main purpose of these industries is to
provide these resources in order to provide these resources in an effective manner.
Healthcare: Healthcare services is one of the important industry which are required to
provide good services to the public. The government having a full control on such
organisation in order to improve public healthcare in an effective manner (Bataglia and et. al.,
2009).
Transportation: There are basically three types of services which can included air
transportation, railways and bus services. These business unit can be private and both public
and private partnership. The main aim of these unit in order to provide effective
transportation services to the public.
Private sector: This is another business unit which main purpose is to earn profit and
provide high quality goods and services to their customers. These business unit can be:
Sole proprietorship: This is one of the common form of business which are operating
its business in a limited geographical area. These units are owned and managed by the
individual person. The main purpose of these organisation is to sale products and services and
earn maximum profit out of them. These units are legally registered according to the United
Kingdom legislation (Porto, and et. al., 2009).

Partnership: This is another types of business unit where two or more persons are
involving in to the business and operating their business. Such kind of enterprises are under
the partnership act of the United kingdom.
Large business enterprises: These corporations are quite large and they operate their
business in to large area. The main aim of these units is to increase market share and
profitability in an effective manner.
Voluntary sector: These units are related with the charitable trust and these units are
working for the society. The main purpose of these institutions is to provide community
welfare so that they can create an ideal image in the public (Bohdanowicz, Zientara, and
Novotna, 2011).
P2 Size and Scope of different types of organisations
There are different types of business organisation which having their own size and
scope which is given below:
Sole proprietorship: In this type of business, entrepreneur are manage the capital and
other resources in order to conduct business activities. Such kind of business are operating in
a limited area which involved limited amount of risk. The all decision-making and
responsibilities of the failure are depends on the individual person. The size of these business
is too small which can be involved small and medium enterprises. The funds which can be
managed by them through government and other higher authorities so that they operate their
business smoothly.
Partnership: This is another form of organisation which is managed and controlled by
two or more person (Bonilla-Priego, Nájera,and Font,2011). The size and scope of these
business units are quite large as compare to sole proprietorship. The profit and loss are
equally divide or accordingly to the pre decided ratio. There are various sectors such as
transportation, logistics and hospitality can be under partnership.
Public listed company: These business entities are listed under the London stock
exchange of the company. The size and scope of these companies are quite large as compare
to other form of business. They operate and conduct their business in to international level.
There are various factors such as internal and external which having a large impact on the
business performance of the company.

Joint stock company: There are the joint venture or merger business corporation
which provide goods and services to the customers and gain profit. The size and scope of
these business units are quite large as compare to other business forms. They are operate its
operations domestically or internationally (Chan, 2013.Chan, 2009).
M1 Evaluation of different types of structure and scope
It is essential for a entrepreneur is to design the size and scope of the company which
can help to provide a long term direction to their business. Each and every business is
different due to various factors such as amount of capital, resources availability, business
capabilities, market opportunities, risk associated with the business and other factor. They
mostly related to all three sectors. In the primary sector mining, drilling etc. In secondary
sector involves steel manufacture, car manufacture, medicine manufacture etc. and in the
sector involves services like IT, legal services, hospitality, logistics, telecommunication,
medical services etc. (Bataglia and Meirelles, 2009).
D1 Critical evaluation of various organisations, its size and different functions.
There are various organisation which are operate in the same business-environment
but their profitability and market share are totally different. The small and medium size of
business unit are not operate in a large area which not required various functions. On the
other hand, there are various large business unit are operate in to global level which needs to
functional and divisional organisational structural in order to increase efficiency and
effectiveness of their business so that they can attain their desired goals.
TASK 2
P3 Different organisational function and its international between firm's objectives
There are various functional department which are operating the business in an
effective manner. These departments are related with the marketing, human resource, finance,
production etc. It is essential for a company is to make an effective communication system
which can help to increase productivity and efficiency. These all department are design and
developed according to the organisational structure. There are following organisational
structure are given below:
Functional structure: This is one of the most common structure which can be used by
the various business units. In this structure a business entity is required to divide their overall
organisation in to different departments according to its respective area. These functions can

be production, marketing, HR, accounting, sales and after sales services (Morrison, 2011). In
the context of Primark, the cited business unit can divide their company in to such area which
can help to increase performance. These departments can be:
Production department: This is one of the major function which is related with the
production activities of the company. This department is managed by the production manger
which required that to focused on the goods and services which are produced by them. In the
context of Primark the production department is required that to provide goods at the right
time so that they can attain their long term goals and targets.
Marketing department: This is another department which is related with the marketing
and promotional activities of the company. This is one of the key department for the each and
every business unit. The marketing manager of the business unit is responsible for all
promotional and marketing activities of the business unit. In the context of given case study
the cited business organisation is required that to use appropriate marketing tools and
techniques which can help to promote their products and services in an effective manner
(Keillor 2013).
Accounting department: This is one of the major department of the every company
which is related with the financial and accounting information. There are various data which
are required to record by this department. Apart form that this department also helps to
HR department: Human resource are the valuable asset for a company which can help
to contribute organisational objectives. Therefore, this is the responsibilities of the HR
department is that to provide training and development on a reM4: SWOT analysis and its
influence on Primark's decision makinggular basis which can help to improve its performance
and productivity in an effective manner.
Divisional structure: This is one of the key structure which can be used by the large
business corporations. There are various multinational companies which used such structure.
Primark is operating their business in to United Kingdom which is too large. It is too
competitive for the company is that to manage large area. In the context of cited business unit
they required that to divide UK in to small segment like Wales, England, Ireland, Scotland
division. Each division can be managed by the regional manager and provide all required
resources and authorities to them so that they can perform their task and attain their targets in
an effective manner (Guay, 2014.).

Matrix structure: This is another types of structure which is a combination of two
divisional and functional structure. This is one of the complex structure which is used by the
modern business units. The main aim of such structure is to improve business performance
and productivity so that they can help to increase customers satisfaction level in an
appropriate manner.
M2 Advantage and disadvantage of interrelationship between organisational functions
In Primark company there are different organisational structure. The function of every
department should be related with each other so that they can achieve their business
objectives in appropriate manner. The cited company is profit making organisation and
making continuous development in the customer’s needs (Chassain and et. al., 2012). So the
organisation structure is including the line of authority, the roles and responsibilities of every
one are clear which can also operate in the dynamic environment in appropriate manner. The
adoption of organisation structure should be done on the basis of their objectives and working
profiles.
TASK 3
P4 Postive and negative impact of macro environment
The manager of Primark company has to properly analyse the macro environmental
factors and these factors are also known as external factors. These are uncontrollable factors
and direct influence on the organisation objectives. These factors directly influence on the
function of organisation through which it became difficult for company to achieve their
business objectives. The manager has to set proper strategies and plan in order to cope with
the changes. These external factors include social, economic, political, environmental,
technological and legal forces (Daleiden and et. al., 2010). For example, change in customer
taste and preferences, governments policies are affecting business objectives. Those risks
which are associated with external factors have to analyse on regular basis so that
organisation can fulfil their targets. The PESTAL analyses are explained as below.
Political factor – These factors are related with the management of public affair’s
which affect the organisation objectives sometimes. The positive impact of this factor is that,
if the government is providing subsidy or applying low rate of taxes then the organisation has
to pay the taxes at lower rate. The customer will also attract towards and purchase the large
amount of products at bulk quantity. The negative impact is that, if there is instability of

government then the company has to change the policies and rules according to their
decisions.
Economic factor – The organisation are already working in complex environment.
The company has to set the prices of products and services according to the income of
customers (Hagos and Pal, 2010). If there is any change in the customer income then it
directly effect on the business objectives. It includes various types of factors which have
direct impact on business such as inflation, wage, income rate and many more.
Environmental factor – The resources which are using by the organisation in order
to provide quality of services and goods these resources must be used in limited manner. The
manager has to take decision after analysing that how much resource are available with
company in order to provide services.
Technological factor – The manager of Primark company has to use new
technologies and skill which are required for the production of quality of products and service
(Issa, Chang and Issa, 2010). The technology should be use up to date so that they can
provide quality of products and services. The organisation has to provide online services also
because there are many customers who prefer to do online shopping which save their time
and cost.
Social and culture factor – The company has to understand the needs and
requirements of customers in order to target new customers. They have to clearly understand
the taste and preferences, customer attitudes and many more factors which directly effect on
the demand and supply of products and services. There are different cultures in the country so
the products and services should be according to their expectations. Through this the
company will achieve competitive advantage.
Legal environment – The organisation has to follow all the rules and regulations
which have been made by the government. The services which are provided by organisation
should be provided legally (van Wijngaarden, Scholten and van Wijk, 2012). If there is any
change in the policies and regulations of authority then these should be considered properly.
M3 Analysing PESTLE model
With the help of pestle model the organisation can take better decisions for the
achievement of their business objectives. It is the responsibility of manager to monitor these
factors on regular analysis. The external factor also includes competitors, suppliers or

intermediaries which have to be analysing by the organisation. The manager should know
about their competitors that what strategies they are making in order to target their customers.
The economic factor affects the profitability of organisation (Hagos and Pal, 2010). The
environmental factors have to be considered as significant due to increase in the scarcity of
resources. In legal factors the products should not include any alcohol so that it will not harm
to the health of people.
D2 Critically evalting the impacts of Macro and micro factors
The organisation is working in both internal and external environment. There are
numerous factors which are including in both factors such as in internal environment the
company has to analyse the SWOT so that they can determines their strength and
weaknesses. On other side in external or macro factors include natural, economic, culture and
many more factors (Yüksel, 2012). The strength of Primark is they are providing all kinds of
products such as cloths, furniture, toys and many more at one place so it save the time of
customers. The weakness is that they are not able to target new customers because not using
the new and latest technologies. The opportunity is that the organisation has to expand their
business in new sector due to strong communication with customers. The last one threat is
that as there are many competitor of organisation such as TESCO, Sainsbury so that they
have to analyse their strength and weaknesses in order to lead them.
TASK 4
P5 Internal and external analysis of Primark
Primark has been a remarkable name in the retail clothing industry and holds the
membership in the Ethical Trading Initiative which is a forum collaborated by bringing the
businesses together to work on the labor rights and their issues related to their chains of work.
There are certain rules, regulations and codes of conduct to be followed under the human
labor rights in the organizations. Primark have been known from a point of time when they
started implications of strategies in support of workers and promotion of the labor rights at
the workplace. The company has already initialized the ethical trade strategy in the year of
2006. Primark have been stressing to focus on the assessment of the working conditions of
the employees, operations concerned with the factory and also implied other essential
positive changes (Piercy and Giles, 2015).

Primark sticks to the principle of sharing and collaboration for the successful
achievement of the suppliers factory and their sustaining positive progression. The major
challenges for the company is brought by the external environment of the organization that
emphasizes the global market of business. Primark has been opt for using SWOT analysis for
the assessment of the internal environment.
Whilst, all the strengths are involved in the above said portion of Primark's business
structure and management, there are certain points at where the company falls weak. One of
the weak points of the company, Primark can be seen if their way of managing people are
deeply observed. Even though , Primark holds the membership of the Ethical Trade
Initiative, studies prove that there are various negative problems related with the operations
of the company's business and other transactions such as child labor and inconsiderable
values as in case of ethical matters. The other major issues that are following towards the
points of exploitation for the company, Primark are abuse on labor force working in the
organization, some other concerns related with environment, working conditions which are
considerably poor and the problem of right dis-valuation of the workers.
The assessment of the external environment of the organizations are most probably
done by the PESTLE analysis. All the operations conducted by Primark are a subject to the
government policies and regulations (Yüksel, 2012). A business firm is supposed to be
operational under the the panel of rules and regulations that are organized by the government
and the policies regulated by the state . The firm is also responsible to maintain the social
responsibility that is obviously a part of the Corporate Social Responsibility of the
organization. Nowadays, the business enterprises are just working for their organizational
objectives to be achieved and to make more financial profits. The companies which cares
about the social and environmental issues to make the people aware about nature and equality
are considered to be most responsible entrepreneurship. The economical system of a nation,
the environment which the company operates, laws under which they have to work and the
technology by which the company remains advanced are the other inseparable factors that
influences the business operations (Bohari, Cheng and Fuad, 2013).
P6 Interrelation of strength and weakness with external macro factors
The factors that have been analysed via the SWOT analysis within the environment of
the Primark and the external aspects that effects the company which has been found through
PESTLE analysis have a major relation with each other. Like in a human body, when a

bacteria from the atmosphere enters the body, it may create infections and make the person
sick, the same way the external factors like political situations, economic regimes, social
responsibilities, technological advancements, legal restrictions and environmental factors
could affect the internal atmosphere of a working place very vastly.
Lets take an example of the changing economic decisions of the government that
would affect the company positively or negatively depending on the changing aspect. Lets
assume that in the budget of nation, prices of industrial machineries are cutting down, then
the company would imply their capital on the advancement of technologies in their factories
and workplaces. This may help in the production rate of the company in a positive manner ,
or if it happens the opposite, then the reverse will be happening in the company too (Peng and
Nunes, 2012).
And if Primark decides to establish a CSR campaign of educating the lower class
people in the society of the nation by a portion of the profit they acquire by their sales, then it
will lead with a major rise in the education or say the literacy rate of the nation which will be
followed with a decrease in the country's poverty, later. In the same way, if the legal system
of a nation decides to cut down taxes for the certain companies in the sector of textile
retailing, Primark will be able to utilize the amount that they used to pay as tax in the
investment of purchasing more capital assets which may help them more in case of
operational advantages and advanced functioning. Technology and updates in them are a
major reason of their high production value and it helps in better processing of the raw
material by maintaining their top quality. Advanced technology introduced in the markets
could be purchased by Primark in order to produce more textile outputs in a comparatively
less time than they used to produce with the machineries they had earlier. In such ways as
described above, the external and internal environment of an organization is interrelated with
the operational functions of Primark.
M4 SWOT analysis and its influence on Primark's decision making
Assessing the strengths and weaknesses of the company's management and the
business structure. The assessment is to be made in the management and the business
structure as it is an important part of the analysing process in the SWOT (Glaister and
Falshaw, 2011). As per the knowledge, Primark has been holding their strength in the simple,
systematic and organized structure of business which have been properly assigned by the
concerned authorities to the appropriate positions. They have the strength of attracting more