Regent College HND Business: Business and Environment Report

This report provides a detailed analysis of Primark's business environment, examining its organizational structure, functional departments, and strategic positioning. It begins by exploring different types of organizations, including private, public, and charitable sectors, and then delves into Primark's mission, vision, goals, objectives, and legal structure. The report investigates the interrelationship among Primark's functional departments, such as finance, human resources, marketing, and sales, and how these departments link to the overall organizational structure. Furthermore, it discusses the influence of macro-level factors on Primark, conducts internal and external analyses to identify strengths and weaknesses, and applies a SWOT analysis to evaluate the company's key strategic elements. The report also explores the impact of stakeholders, including shareholders, directors, and employees, on the business operations. Overall, the report provides a comprehensive understanding of Primark's business environment, its internal dynamics, and its strategic decision-making processes.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Different types and purposes of organisations.......................................................................1
P2 Detail information about Primark organisation their mission, vision goals and objectives,
the organisational legal structure................................................................................................2
P3 Explaining the interrelationship among different Functional departments and presenting
their linkage with organisational structure..................................................................................6
Task 2...............................................................................................................................................9
P4 Discussing the influence of various macro level factors on Primark organisation................9
P5 Conducting internal and external analysis for Primark in order to analyse strength and
weaknesses. Explain the way these elements have influence on decision making process......11
P6 Application of Swot analysis technique to Primark organisation in order to analyse their
key strength and weaknesses ....................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is the aggregate of all external and internal factors that have direct
influence on business. The concept business environment refers to the way various external and
internal forces have impact on various activities of company. The Aim of the study is to explain
the concept of business environment. Primark cooperation is an Irish clothing and accessories
organization has been selected for conducting research. The report will include detail explanation
about function of Primark enterprise. Primark company has been chosen as it has many
functional department, so it will assist in explaining the relationship between different functional
department and the way they are associated with enterprise objectives and structure. The study
will also have focus on analysing the impact of various external and internal factor on Primark
business operations. Various techniques will be in included in the report in order to analysis in
order to measure the internal strength and weakness of organisation.
Task 1
P1 Different types and purposes of organisations
There are many types of organisations and every enterprise is being established to serve
different purposes. Various company's has been categorised into various sectors such as private,
public, cooperative, non profit organisation, etc.These enterprises are being categorised on the
basis of their function as well in the ground of purposes serve by them.
Private sector-private limited company's are formed by one individual person or it can be
established by two or more persons. The private enterprises consist maximum 50 members. In
private limited organisation the shares are allotted to members only. Government do not have
any interference in activities carried by private firm. Primark is the private limited company
dealing in clothes and accessories (Kew and Stredwick, 2017).
The private limited company can be further divided into three on the basis of their
ownership.
Sole proprietorship organisation-The sole proprietorship enterprises are owned and control by
individual owner. Proprietor of the firm has the authority to take major decisions and all the
liabilities are to be fulfilled by owner. The main aim of this organisation is to generate
profitability and increase market share for its products.
Partnership-Partnership refers to the business organisation established and controlled by two or
more owners. The partnership structure consist of minimum two members and maximum 20
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members'. The main objective of partnership organisation is to increase its share capital and to
reduce risk.
Joint stock company-Joint stock organisation is a whose stockholder have the same liabilities
and privileged as unlimited partnership enterprises. Joint stockholders have right to buy and sell
shares freely in the market.
Public sector -The public organisation are owned and controlled by government authorities. This
is the enterprise whose membership is open to public. The public limited company has the right
to advertise their share and issue their share to public. Example of public limited company is
Environmental agency of UK established with the objective to prevent environment from
degradation.
The public limited is further divided on the basis of their objective of establishment and
management by various authorities.
Departmental organisation-These departmental stores are managed and control by official
government authorities. Examples are railways, British airways' company, etc objective of this
organisation is to provide services related specialised services such as services related to
transport, to public.
Public cooperation-The public cooperation are wholly owned and controlled by state
government. The main aim of public cooperation is to serve general services to public.
Government companies-The government company's are the enterprises managed and controlled
by central government. The main objective of government organisation is to maintain economic
stability, long term growth of country and to generate high level of employment.
Charitable organisation-This enterprises are also known as charitable cooperation as the main
objective of their establishment is social welfare. This charitable organisation can be owned and
managed by individual person. Example of charitable trust : Child welfare organisation
established with aim to provide care to poor and orphanage children (Dutta, 2017).
P2 Detail information about Primark organisation their mission, vision goals and objectives, the
organisational legal structure
Company background
United kingdom the company can not use name J.C penney as this was registered named
used by existing organisation operating in UK. So the owner of the firm has invented Primark
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name to be used outside Ireland. The new headquarter was being opened by organisation in 2015
(Kew. and Stredwick, 2017)
Products and services offered by Primark organisation
Primark offer wide range of products in fashion industries. Their products include
newborn and children clothing, women's and men's wear, home wear, beauty and footwear
products. The enterprise sells good quality and fashionable clothes and accessories products at
reasonable and affordable price. There are many companies that are dealing in fashion industries
such as Zara and H&M, but Primark is contributing to contemporary latest fashion trend.
Recently the Primark has decided to expand its product line. The firm has created a
cosmetics line called “PS Pro” which is among the most favourites products liked by consumers
because of the high quality and low cost (Vedung, 2017)
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Illustration 1: Composite loyalty Index
Source:Market Force Information, 2015

Size and Scope of organisation
Primark has owned over 315 retail stores. Its Largest store is located in England
occupying 155000 sq ft of retail space across three floors. The Firm has high growth rate and has
expanded rapidly in UK. The organisation has established Little woods retail outlet for 409 m
euros retaining 40 outlets and selling rest. The enterprise ids serving and has its number of outlet
in various country's such as in UK, Spain, Netherlands, Portugal, Germany. Mission,
Vision, goals, objectives and core competencies of firm
Vision- Vision of Primark is to expand its core business activities. The other mission of the
company is to offer most effective and attractive facilities in order to fulfil most immediate and
basic need of customers at most reasonable price. The visual modality of the enterprise is to
provide facilities to its client in professional manner.
Mission-Mission of Primark is to achieve vision through various strategies. Other mission of the
company is to establish its largest outlet in the world and to become most popular supermarket
dealing in dry goods, food operators, services.
Objectives-The objective of the firm is to provide the most convenient and primmest basic need
of society.
Aim-The aim of the organisations is to provide good quality products at reasonable price. The
purpose of the enterprise is to gain loyalty and retain customers. The Primark business unit
intends to serve all clients equally no matter whether they belong to upper or middle status of
society.
Goals -The goal of the enterprise is to increase its sales and market share. Its other goals is to
enhance its sustainability and profitability.
Core competences-The core competencies is that company has framed various expansion and
marketing strategies that has assisted the organisation in growing rapidly.
Legal Structure of organisation
Primark is taking imitative by collaborating with other business organisation, trade
unions and non government organisations to contributing to solve various labour rights issues. In
December 2008, the UK charity War on Want has presented report name “Fashion victim”
conferred data indicating the condition of Bangladeshi factories that were supplying material to
Primark. These data has been analysed by ETI and the authority has removed the branding from
Primark store. The programme named 'Prime mark was being telecast. These telecast was based
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on documentary showing poor conditions working environment in Indian factories that are
supplying material to Primark. Analysing this Primark has subsequently stopped trade with
Indian organisations. Website was being created by the organisation in order to deal with such
issues (Ostos, Hinderer and Bravo, 2017).
Information about company stakeholders
Stakeholders are those persons who have direct or indirectly associated with various
activities carried out by firm. There are two types of stakeholders internal and external. Internal
stakeholder include employees, mangers, owners, directors etc. External stakeholders include
suppliers, investors, customers etc. Stakeholders of Primark are:
Shareholders :The shareholders interest in Primark are associated with profits growth, share price
growth and dividends
Shareholders -The directors of the company are interested in knowing the status and position of
the organisation in market. They have the power to take major decisions regarding enterprise, all
the policies and strategies framed in business unit need to be approved by them. They are
interested in knowing the status and performance level of employees.
Employees-They are directly associated with the internal operation in the organisation. They
play vital role in achieving the goals and objectives for the firm. They are interested in knowing
the profitability status of business as this factor may have impact on their salaries and wages
(Economica and Deresky, 2017).
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P3 Explaining the interrelationship among different Functional departments and presenting their
linkage with organisational structure
Organisations have different department these administrative coordinate with each other
in order to assist enterprise in achieving goals and objectives. Coordination between these
department helps firm in achieving its goals and objectives. The interrelationship between these
departments aid organisation in enhancing its performance and growth.
Finance Department- This department specialises in managing financial resources for
organisation in order to carry out various business activities in smooth and effective way.
Budgets are being provided by this department to other functional department. This budgeting
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Illustration 2: Stakeholders and their Interest. 2009
Source:Jim Riley (What are the main interests of business
stakeholders?)

processing assist Primark organisation in reducing unnecessary cost and expenses and enables
the firm to fulfil their objective of increasing profit margins (Manning, 2017).
Human resource department-All the human activities are managed and controlled by this
department. Personnel manager hire skilled and talented candidates which assist other
department in achieving enterprise mission and vision. Various policies are being framed by
personal manager which lead to motivation in employees and encourage them to increase their
contribution in achieving mission and vision of the enterprise. The training provided by human
resource management assist employees in improving their performance which aid firm in
achieving goals according to set standards.
Customer service-Customer service department plays vital role in developing and maintaining
relationship between business unit and customers. They gather various customer related data and
provide same information to other operation department. This helps operation department to
improve quality of products and services and develop such products which leads to satisfaction
of client which the main objective of firm.
Marketing Department- Marketing department has direct link with operation and sales
department. Marketing department provides customer base data which helps operation
department in producing quality and quality of product which is demanded by consumers in
market. This department enables organisation in fulfilling its aim of increasing market share and
enhancing growth.
Sales department- Marketing department also coordinate with sales department in order to
analyse the business performance. Sales department in Primark private limited company provide
opportunity to increase its sales and generate revenue.
Research and development -The research department conduct research for the organisational.
On the basis of research it helps the other functional department in Primark enterprises producing
such design and quality of clothes as well as accessories that are most demanded by clients in the
market. This department assist firm in enhancing its sustainability, profitably by organisation.
Operational department-Operational department are linked with purchase and marketing
department. The operation department coordinate with marketing department in order to analyse
the demand of customers. Operational department by coordinate gets information about clients
demand it assists firm in enhancing its effectiveness and helps organisation in cutting down of
unnecessary cost.
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Purchase department-Purchase department coordinate with finance and operation department.
The finance department provides purchase budget to purchase department In order to avoid
purchase of unwanted material. Purchase department is interrelationship with operation
department. They coordinate with operation department in order to identify material requirement
in operational activities, shortage of stock etc. Proper coordination and interrelationship between
these departments aid organisation in eliminating delay in processes and assist firm in gaining
customer loyalty as well fulfilling its objectives of customer satisfaction.
Accounts department-Accounts department has interrelationship with all others functional
department. They coordinate with all other department in order to keep record of all activities
carried out by all sections. The information provided by these divisions helps the firm in
analysing the financial performance of organisation. It provides business unit with opportunity to
enhance its financial performance and fulfils its objective of increasing profitability (Burrell,
Gibson and Gareth Morgan, 2017).
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Task 2
P4 Discussing the influence of various macro level factors on Primark organisation
Pestle analysis technique can be used to measuring the impact of various factors on
Primark organisation. The macro factors are these external factors and these elements may have
positive and negative impact on business. These macro environmental factors are uncontrollable.
Negative Impact of these factors can be eliminated by Primark organisation by adopting effective
strategies. Positive impact of these factors provides opportunity to business init in enhancing its
growth and sustainability (Parke and Seo, 2017).
Political factors: Government rules and
regulation., code of conduct related to business
activities, political stability and instability has
direct impact on organisational activities. The
Economic factors:The Primark company is
having its retail store in many of the country,
so economic instability or economic recession
may have impact on its growth and
9
Illustration 2: Organisational Chart 2017
Source:Wendy's/Arby's Group (Organisational Stucture)

primark can eliminate negative impact of these
factors by framing effective strategies and by
complying with all code of conduct framed by
government.
Political stability and favourable government
will assist firm in enhancing sustainability of
organisation.
profitability. Change in interest rate, inflation
and other monetary has direct influence on
customer confidence. This factors may have
impact on revenue of the enterprise.
Increase in level of consumer income ,
favourable monetary policies may have
positive impact on Primark growth and
profitability.
Decrease in current exchange rate will lead to
transactional; benefit for Primark.
Social factors:Various social factors such as
income distribution, change in fashion and
trend, change in lifestyle have direct impact on
growth and on Primark strategies. Social
factors have direct influence on the customer
perception about products. These factors may
hinders the growth rate of firm. In order reduce
the impact of these factors the Primark
organisation can conduct various research
process and should introduce new product
according to demand of the consumers.
Positive impact
Changes in social factors may lead to increase
in demand for Primark products.
Increase in UK population
Technological factors:
Positive impact
Technological factors have mostly the positive
impact on business operation. Adoption of new
technology enables Primark organisation to
enhance its efficiency of its operation and
helps the firm in managing various data. The
technology assists business unit in designing
clothes and accessories. The technology is
used by company in order to analyse the need
and demand of consumers, Technology
provides opportunity to enterprise to reduce its
various expenses and allow firm to enhance its
profitability.
Growth of online commerce provides
advantage this platform to sell its products to
new customers and explore large geographical
market.
Negative impact
The negative impact of advancement in
technological factors is that it increase
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competition.
Legal factors:
Negative impact:
Legal factors include variation in government
laws and policies, import and exports policies,
taxation etc. Changes in government laws and
policies have direct impact on various decision
of Primark company. These factors have direct
impact on organisation behaviour. Various in
legislation s related to wages and working
hours have direct impact on employees and
workers working in business unit.
Positive impact
Changes in import and export policies by UK
government has provided the opportunity to
Primark to expands its core business activities.
Environmental factors:
Negative impact:
These factors include various environmental
issues such as climate , weather. Primark is
dealing in fashion industry as such these
factors have less impact on its operation.
Environmental factors may have effect on
demand of particular fabric of clothes. As the
primark enterprise have suppliers belonging to
other countries, following factors such as
natural calamities flood may create barriers in
availing supply of clothes and accessories.
Positive impact:
Ethical and environmental awareness among
consumers may lead to increase in demand of
trendy clothes like organic cotton clothes or
need of recyclable fabric material.
In winter season there can be increase in
demand for blazers and coats.
P5 Conducting internal and external analysis for Primark in order to analyse strength and
weaknesses. Explaining the way these elements have influence on decision making
process.
Swot Analysis
Swot analysis is famous tool for conducting internal audit and identifying strategic
position business and its environment. The objective of this technique is to provide
Swot analysis techniques helps organisation in analysing various strategic factors such as
Strength, Weaknesses, opportunities, and threat. Various core competencies and opportunities
are being represented by this technique which can be used by Primark enterprises in framing
other strategies (Schaltegger and Wagner, 2017).
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The swot analysis is simple and effective tool that conduct internal research and provides
accurate data. The information provided by this technique plays significant role in determining
key issues in organisational environment. The objectives of this technique is to identifying those
strategies that will create organisation specific model that are best fitted to origination resources,
capabilities and structure. These strategies will assist firm in fulfilling the requirement of
environment in which its operate (Marsh, 2017).
This technique views all positive and negative aspects of factors within organisation and
outside the business unit the have direct effect on enterprise success. The consistent study of
these factors assist management in forecasting and analysing changing trends. It also provides
assistance to enterprise in decision making process (Galati and Moessner, 2017).
Strengths-Identifying strength assist management in framing various strategies that will allow
business unit in enhancing their performance. Determining strength by management will aid
enterprise in growing their business. This involves finding the way of using and increasing these
strengths.
Weakness -Swot analysis technique can be helpful for Primark organisation in evaluating their
weaknesses and minimising imperfections. It also aids firm in improving such weakness before it
converts into problems. It is essential for management to be realistic about weaknesses while
conducting swot analysis. This model helps administration department on finding various
methods to deal with such weakness and converting such imperfections' into strength.
Opportunities-The swot analysis tool assist organisation in determining and seizing
opportunities. This method encourages firm to take advantage of such opportunities to generate
greater profits. The swot analysis model provides the way to enterprise to examine their ability to
take advantage of new opportunities and assist them in exploring more benefits. The
management cancan use this technique for accessing their capabilities and finding the solution to
enhance their ability to capture opportunities.
Threats- Examining threats assist organisation in evaluating various threats and helps
management in finding various methods and techniques to counter them depending on enterprise
strengths and weaknesses. This technique enable firm to make various strategical decision.
Management decision includes discussing on competitors marketing strategies, discussion to deal
with government policies etc.
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This swot analysis techniques helps management in taking various decision for
improving profitability, sales, revenue, cost, enhancing brand image etc. (Pitelis. and Runde,
2017).
External analysis
Environmental analysis-This analysis presents trends and events that have direct impact on
business activities. This factors manger in determining influence of external factors and
analysing the way to reduce the effect of these factors on organisational activities.
Economic factors-identification of these factors aid management in evaluating the economic
stability of business. It provides opportunity to enterprise to identify impact of various external
factors on firm economic activities and adopting various strategies in order to eliminate impact
of these economic factors.
Technological factors-determination of these factors provides organisation an opportunity to
choose and select effective technology. It enables enterprise to make effective use of technology
and allow management to identifying areas where such technology can be used.
Political factors-The changes in tax rates, government laws and regulation have direct Impact on
various decision taken by management in organisation.
Social factors-External analysis techniques help enterprise in identifying the latest trends and
culture, fashion , demographic trends and their effect on size and growth of Primark industry.
External analysis techniques provides opportunity to Primark firm in predicting their
future events and uncertainties, key areas of risks and possibility of increase in demand for their
product in market (Wheelen and Hunger, 2017).
P6 Application of Swot analysis technique to Primark organisation in order to analyse their key
strength and weaknesses
Swot analysis techniques can be used to analyse the internal strength and weakness of the
organisation. These techniques assist firm in enhancing their strength, reducing risks, helps
enterprise in capturing opportunities and aid business in transforming its weaknesses into
strength.
Strength : Weaknesses:
Social factor-Consumers perception about
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Talented and skilled employees,
Dealing in wide range of products,
wide market share,
Effective adversing strategies
Company is offering good quality of product at
affordable price has enabled brand to become
third largest clothing and footwear retailer in
UK.
Its Position as low price leader.
Primark is the part of Ethical Trading initiative
they are working for employees rights its helps
the firm in developing and motivating workers.
This process will encourage workers increasing
their contribution in achieving goals and
objectives for organisation.
Business Power and high market share.
Primark organisation. Its clients Perceives that
the enterprise is using unethical way to do its
business.
Due to low price of its product customer
consider it as basic brand.
Its is totally relies on UK market for its
turnover and revenue.
Technological factor-Growth of Primark is
hampered by lack of advance technology.
Lack of online e-commerce presence. E
commerce is fast growing channel adopted by
most of fashion retailers in UK market.
Slow growth rate.
Ineffective growth and expansion strategies.
Outsourcing of manufacture apparels may lead
to inconsistency in quality of product.
Opportunities:
Social factor such as Rising obesity level n
consumers gas provided the opportunity for
clothing retailers to increase its profit margin
by fulfilling the need of client those who want
special size clothes.
Economic factor such as Decrease in current
exchange rate has provided the opportunity to
business unit to enhance its profitability.
The positive impact of political factors has
provided firm opportunity to generate revenue
and increase its market share.
The primark can make use of E-commerce
channel and can generate opportunity to
Threats:
Environmental factor-Increasing in
competition.
Unfavourable changes in External forces and
changes may have influence on marketing
strategies adopted by Primark.
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increase its market share and customers.
CONCLUSION
The project has successfully studied different types of organisation and their purposes.
From the report it has concluded that various element in business environment has direct effect
on business activities. Positive and negative impact of various environmental factors have been
discussed in this study. Assignment has described the significance and importance of business
environment study. Interrelationship between various function within organisation and the way
they are associated with organisational structure has been explained. Various techniques has
been used in order to analyse internal and external factors and to determine the influence of
various factors on activities carried by Primark organisation.
The various strategies have been suggested by this summary that can be used by Primark
to reduce the impact of external and internal factors. The swot analysis techniques has suggested
various areas where the Primark can make improvement. This technique has recommended
various methods using which Primark can find solution to convert their weaknesses into strength.
Pestle model has provided the advice to frame effective strategies in order to eliminate the
influence of these environmental factors on Primary profitability, sustainability and growth.
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