Analysis of Primark's Business Environment and International Trade

This report provides a detailed analysis of Primark's business environment, examining various aspects such as the purpose of different organizational types, stakeholder objectives, and the company's responsibilities. It explores different economic systems, including Cuba, UK, and China's models, and assesses the impact of fiscal and monetary policies on farming and housing. The report further delves into competition policies, market structures, and the determination of price and output decisions, as well as market forces and Primark's responses. It also discusses Primark's behavior within its business and cultural environments. Moreover, the report highlights the significance of international trade to Primark, the impact of global factors, and the influence of European Union (EU) policies on the company's operations. The report concludes by summarizing the key findings and providing relevant references.

Business Environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Purpose of different types of organization.............................................................................4
1.2 Extent to meet with stakeholder objectives...........................................................................5
1.3 Responsibility of Primark towards stakeholder.....................................................................6
TASK 2............................................................................................................................................6
2.1 Different economy system.....................................................................................................6
2.2 Impact of fiscal and monetary policy on farming and housing.............................................7
2.3 Competition policies for operate effective functions.............................................................7
TASK 3............................................................................................................................................7
3.1 Market Structure and Determination of Price and Output decision......................................7
3.2 Market Force and Response of Primark................................................................................8
3.3 Behaviour of Primark towards their business and cultural environment...............................9
TASK 4............................................................................................................................................9
4.1 Significance of International Trade to Primark.....................................................................9
4.2 Impact of global factors on Primark......................................................................................9
4.3 Impact of European Union (EU) policies on Primark.........................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is composed of those activities that are either being performed by
the individual set of employee’s or group of individuals with a pivotal goal of generating
considerable profits and revenues. These undertakings are usually outlined as the carried
procedurals of business along with the operations that are being executed by the appointed set of
personnel’s in an organisation. Wherein, the business environment is together impacted by varied
influences that involve both internal and external environmental factors (Babatunde and Adebisi,
2012). It however represents such business situations that are based upon their distinct
institutional, legal, political and economic rules that are riotous in nature and affects the intended
goals of the enterprise. The below report has together depicted the business environment of
Primark that is a well-recognised establishment of UK and is a subsidiary entity of Associated
British Foods (ABF). Into which, it has also discoursed upon varied prospects of business
environment that is being referred by Primark. It is with a vital aim of providing a prime
understanding about the factual environment of the firm that in turn impact upon their
undertaken decisions of their business.
TASK 1
1.1 Purpose of different types of organization
Every business pursue different purpose to operate their functions. In this context, each
organization conduct policies and regulations at workplace through, they can achieve goals and
objectives. Purpose are frame for achieve targets and effective functions (Gurjar and Rathore,
2013). Primark operate functions privately in different part of the nation. There are different types
of business pursue objectives and goals. They are as follows:
Public company: In order to achieve business objectives these types of organization frame
operations for public. They are determine share in public so that general people have benefits
through enterprise outcomes. In respect to this, Sainsbury is operating their functions as public to
enhance profits at workplace (Beamish and Lupton, 2016).

Charitable business: Charitable firm operate functions as nonprofit business. Their main goals is
to create welfare in term of educational, religious, and many other activities which are frame
according to public interest and goals (Trkman, 2013). For example, British heart foundation
operate functions for protect public in UK.
Cooperative firm: Cooperative business are working with various people who work for common
purpose and goals. In this aspect, they are frame strategies to determine objectives and goals at
workplace (Laursen and Thorlund, 2016).
Mission of Primark
Primark has mission to achieve business goals and making long term plan to manage business
results. They are develop functions to attain firm objectives and meet goals of the company.
Vision of Primark
Primark has vision to meet customer requirement and attract potential customer to deal with
business outcomes (Donchev and Ujhelyi, 2014).
1.2 Extent to meet with stakeholder objectives
In order to meet with business objectives there are various things which need to be
accomplish by Primark. The business can perform following activities to meet objectives of
stakeholders:
Customer: Customer are very important element of Primark who has objectives to get right
product with effective quality. Thus, the cited firm need to fulfil their objectives through
providing them quality products (Sigurjonsson, Vaiman and Arnardottir, 2014).
Employees: Employees are perform functions to deliver products and services to customer.
In this aspect, the cited firm has responsibility to offer products and services with effective
environment. In addition to this, effective payment must be providing by the firm to develop
effective functions.
Government: Government possess objectives to get taxes by the firm. Thus, it is
responsibility of Primark to give them taxes on time. In this context, the firm can easily maintain
relations with government (Ward, 2016).

Trade union: In order to maintain effective functions, trade union frame policies and
regulations through employees can easily protect from business operations.
Supplier: Supplier provide raw material to the business so that Primark need to fulfil
objectives of them. In addition to this, the cited firm need to give them right payment to fulfil
their objectives.
1.3 Responsibility of Primark towards stakeholder
There are various responsibilities which need to be accomplish at workplace by Primark. In
this aspect the firm support following responsibility:
Stakeholder objectives: In order to maintain business objectives, Primark has responsibilities
to deal with objectives of customer, employee, government and other people. Hence, the firm can
easily meet objectives of different people (Laursen and Thorlund, 2016).
Healthy and safety environment: In order to maintain functions, health and safety at
workplace. To fulfil objectives, the company can provide effective working environment.
TASK 2
2.1 Different economy system
Cuba’s economy system: In order to perform effective functions Cuba adopt command system at
workplace to perform functions. Their all decisions are making through consider government
functions (Tharenou, 2015).
UK’s economy system
UK pursue free economy system to perform effective functions within the environment.
In respect to this, their all functions are operating freely to promote operations. Hence, they are
easily operate functions without any rules and regulations.
China’s economy system

In order to perform business functions, China has planned economy system which
determine to operate functions through determine market supply and demand. Hence, supply and
demand is determine through developing organization functions.
2.2 Impact of fiscal and monetary policy on farming and housing
Fiscal policy is frame to develop functions of country in spending level and outcomes. In
respect to this, country have to make effective functions at workplace. On the other hand,
monetary policy determine money supply within the country. In respect to this, fiscal policy
effectively supply goods and services at workplace. Agriculture system is determine effective
functions to manage outcomes. On the other hand, monetary policy demonstrate functions at
workplace. Housing business also affect by monetary policy which need to be determine
functions at workplace. Fiscal policy adversely impact on the housing business.
2.3 Competition policies for operate effective functions
In order to make effective functions, there are different policies need to perform
functions. Agriculture policy is frame to develop effective functions of the company. In respect
to this, firm need to follow functions with managing outcomes. This can manage profitability for
ascertain business results. Further, competition policy also take place for trade freely within the
business environment so that business can maintain their operations effectively.
TASK 3
3.1 Market Structure and Determination of Price and Output decision
Market structure plays an essential role in determining the decisions of pricing and other
related verdicts regarding their production and outputs, etc. However, there exists varied market
structure under which, a company is required to operate its business functions (De Roeck and
et.al., 2014). These market structures are mainly of four distinct types that include monopolistic
or perfect competition market, monopoly, oligopoly and duopoly market sets.
 Monopolistic market- It is a contending set of market that consists of large number of
organizations with a small portion of shares and revenues for each of those entities. Its
competitive nature of market is mainly due to an analogous products and services by
most of the firms. This in turn increases the rivalry among them where such type of

markets does not make much impact upon the output and pricing decisions of Primark
where it is also operating under a similar set of market. In context to which, they are
much active in making regular and continual supply of their respective goods and
services. In such perfectly competitive market, there exists unlimited consumers and with
perfectly elastic price.
 Oligopoly market- There exist very small number of enterprises under this particular set
of market where they have much control over their market shares and revenues
(Karaszewski, 2010). With reference to which, they also tend to undertake the decisions
regarding their supply and price, etc.
 Monopoly market- Under this particular set of market, only one buyer is there with a sole
determination of taking the decisions regarding the supply and price structure of their
offered products and services. In case, there exists an abundant demand of commodities
in the market then the ventures tend to increase their price where an excessive price
dejects the demand of their products.
 Duopoly market- In this particular structure, there exist numerous sellers with only few
number of buyers (Oskam, Meester and Silvis, 2011). In context to which, the sellers are
hereby having abundant number of alternatives for which the sellers in turn tries to keep a
lowest alignment of their cost structure as a way of attracting the buyers towards them.
3.2 Market Force and Response of Primark
Market forces tend to exemplify the relationship among the demand and supply of goods
and services in the market. In context to which, the structural response is being given by the
organisations like Primark in accordance to their economic circumstances. This in turn creates a
vital impact on the reputational measures of the cited firm by together affecting their profitability
status. Primark is hereby evident to conduct a proper research of their market where their
analysis assures them their ability in regard to serve their respective set of consumers (Zhang and
Huang, 2012). This also tends to involve some considerable measures such as giving discount on
purchase along with some other promotional offers, etc. The acquired profits of the quoted entity
are growing with an accurate judgement of their accepted standards where they are also
providing best services to their consumers. It is in case they fail to meet the expectations of their
clients and users; this may tarnish their reputation as well. It is therefore said that the relationship
between the market forces and organisation’s reaction is subsequently an utmost consideration in

terms of the success of business by together improving the satisfaction level of their respective
customers.
3.3 Behaviour of Primark towards their business and cultural environment
Business and socio- cultural environment plays a greater role in the undertaken decisions
of Primark by directly impacting upon them. Wherein, the economic conditions are not similar in
all marketplaces. Economic policies include the industrial, fiscal, foreign investment and export-
import policies that largely differ from one country to another (Chadamoyo and Dumbu, 2012).
Herein, the socio- cultural factors together immensely impacts upon the behaviour of Primark
where it tends to depict the current preferences of the customers as a mean of satisfying them on
due period of time. This in turn enhances the profitability ratio of the organisations like Primark
by together escalating their brand image in both domestic and international set of markets.
TASK 4
4.1 Significance of International Trade to Primark
International trade is evident to play a crucial role in enhancing the economic condition
of the nation where it is highly significant for Primark to globally operate their business. It is
thereby evident to support the strategic objectives of the quoted firm to grow and expand into the
outer set of market (Harrison, 2013). For which, Primark is hereby required to generate certain
changes in their produced commodities within a nation. It is therefore in context to the cited
entity, where international trading has some remarkable measures that are profitable for them.
The leading benefits of international trade for Primark are as referred below-
 Domestic effectiveness – The enlargement in newer set of market will in turn
improve the existent capabilities of Primark by amending their contending spirit of
work.
 Global market share – It is also evident to provide a newer source of earning to attain
high level profits from all over the market.
 Existing market – The escalating benefits from the international set of market tends
to reduce the dependency of Primark on their domestic market that in turn motivates
the organisation to successively continue a prospective business.

4.2 Impact of global factors on Primark
There exists varied global factors that directly tends to impact upon the undertaken
decisions of a business where it is composed of some below mentioned constituents-
 International trade and the UK economy: The worldwide factors give a newer prospect
of trading at an international level that in turn boosts the economic condition of UK
(Lebovits, 2012). A large number of enterprises in UK are operating in outer countries in
which they are benefitted by cheaper costs of labour and raw materials.
 Worldwide Growth: A rising trend of international trade provides a vital possibility to the
businesses as a mean of extending into the outer set of market all over the globe that in
turn makes an affirmative impact on the economic status of UK.
 Market Opportunity: A considerable reputation of UK has been observed in the
international set of markets with a special context of their technical advancement
(Scharpf, 2011). It is where such global factors give a prime opportunity to the UK
business organisations for carrying out the business at a worldwide level.
 World Trade Organisation (WTO): WTO refers to deal with the international norms and
standards of trade among distinct set of nations. It is however with a leading function of
ensuring a smooth flow of trading operations that is definite in nature.
4.3 Impact of European Union (EU) policies on Primark
The factual impact of EU is addressable by measuring the influence of their implicated
rules and regulations that are specially enforced for the industrial sectors. It is after linking the
industrial norms with the affiliated standards of EU, UK businesses are hereby required to \
maintain all regulative criterion of work where these legislative rules are similar for all European
Union’s nations (Harrison, 2013). With reference to which, all nations are hereby required to
follow the Union’s lawmaking. Wherein, in case any of the organization is willing to operate into
the EU nations, then they are hereby required to interact with the European Money Union as a
mean of transecting in Euro’s.
These EU policies have enormously influenced upon the business organizations of UK by
spending on taxation law and directive that in turn inspires the business activities by providing
substantial support and grants to them. It is where almost all UK organizations can refer to
exchange their commodities with other EU countries with no obstacles. If UK establishments

have proper permits then they can effortlessly export their commodities in some other nation that
is affiliated with the pertinent criteria of EU by together referring to import (Scharpf, 2011). It is
however a prime liability of their national consultants to continually monitor the carried
activities of their local business organizations where the directives are hereby required to be
applied in their nationwide legislature.
CONCLUSION
The above report has summarized the pertinent environment of an elected business
organization named Primark in four precise sections. It is with a foremost unit that has referred
to outline the organizational purpose of Primark with another part that has described the nature
of Primark’s domestic market. The subsequent unit of this report has comprehended the behavior
of Primark in their prevalent market environment with an eventual portion that has apprehended
the importance of such global factors that in turn shapes up Primark’s domicile business
activities.

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