Business Environment Analysis Report: Primark PLC and Stakeholders

This report provides a comprehensive analysis of Primark PLC's business environment. It begins by exploring different types of organizations and then focuses on Primark, examining how it meets stakeholder objectives and outlining its responsibilities and strategies. The report delves into the economic systems of various countries, analyzing the impact of fiscal and monetary policies, and the role of competition and regulatory mechanisms in the UK. It investigates pricing and output decisions in different market structures, and how demand and supply shape the organization. The analysis extends to the impact of business and cultural environments on Primark's behavior. Furthermore, the report assesses the significance of international trade for UK businesses, the impact of global factors, and the effects of EU policies, including BREXIT, on UK businesses. The report concludes with a summary of key findings and recommendations for Primark PLC, providing a holistic view of its operational context and strategic considerations.

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different types of organizations availing in the market...................................................1
1.2 Determining the manner in which Primark meet the objectives of stakeholders.............2
1.3 Responsibilities of Primark PLC and there strategies......................................................3
TASK 2............................................................................................................................................4
2.1 Economic system of different countries...........................................................................4
2.2 Impact of fiscal and monetary policy...............................................................................6
2.3 Identifying with the competition policy and regulatory mechanisms in UK...................7
TASK 3............................................................................................................................................8
3.1 Determining how the pricing and output decisions in different market structures..........8
3.2 Determine how demand and supply shapes the organization ..........................................9
3.3 Determining how the business and cultural environment help in shaping the behaviour of
Primark.................................................................................................................................11
TASK 4 .........................................................................................................................................12
4.1 Significance of international trade to UK businesses.....................................................12
4.2 Impact of global factors on UK......................................................................................13
4.3 Impact of policies of EU on UK businesses...................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment is considered as an effective and efficient part for the organization.
It determines with the internal as well as external situation of the market which highly affects the
functioning of the business. Thus, in the present scenariotime with the development of countries,
it has become important for the an organization to develop with an efficient market analysis so as
to evaluate the actual position of the industry (McGovern, 2014). It is been seen that factors
involved in the business environment are having high impact on the performance of the
company. Further, in this report Primark PLC company is been taken for developing the analysis.
It is a retail outlet which serves with many things to the customers. Moreover, in this goals and
targets of the firm are been determined in a detailed manner. Further, the different policies such
as monetary and fiscal for many countries are been stated efficiently. In this the report structure
of the company is studied for setting up with the prices and output decisions for it. At the end, it
includes the EU and BREXIT problem is been stated as it is one of the major issues faced in UK.
TASK 1
1.1 Different types of organizations availing in the market
There are large number of firms which are established to serve the products and services
to the customers (Fernando, 2011). Further, they are been segregated in different sectors which
are having there owntheir own aims and objectives for theretheir companies. The following
sectors are been stated in an efficient manner:
 Public sector company- In this the organizations are been established and managed by
the legal authority. Further, they are the only ones which are serving with the rights to
take the major decisions regarding the operations and functions of the company.
FurtherAlso, there main objective is to serve the people with higher satisfaction by
providing them the best quality products at adequate prices (Jennings, 2010).
Example of public sector companyPublic Sector Company: NHS, Tesco Plc,
Sainsbury Plc etc. are public companies which are developed for serving greater services to the
public. Key purpose of the company is to provide better services to the customers as well as
helps to them in their welfare.
 Charity sector company- In this, the companies are mainly working under non-profit
basis which means that there their main motive is to ensure the welfare of the people and
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work for there their betterment in the society. Like American Red Ccross is an
organization which is been established for providing blood to the needy people. They are
not taking any money from the people who take the blood rather give them best services
so as to help them to greater level. There main objective is to give assistance to the
people rather than earning money. American Red crossCross is a firm which operates in
the charity sector. Further, purpose behind operating in such industry is to provide blood
to the people who are needy and most requires.
 Cooperative companies- In this, there are number of people who make theretheir mind
to work together and establish a firm with a motive to earn maximum money. They need
aspire to acquire greater level in attaining the political, economical and social stability.
Example of this type of company is Baywind Energy Co-operative which is UK based
and operating in the energy sector. Purpose or objective of the firm is to provide wind as
well as energy products to the country at the lowest rate.
 NGO sector- Those business entities which operate in the country for addressing and
resolving social as well as political issues are identified as non-profit organisations
(Gottheil, 2013). On such businesses any kind of regulations and rules are not imposed by
government because these are work for social welfare. Examples of NGO firm in UK are
such as AJR Charitable Trust, A Rocha International etc.
Primark PLC comes under the public sector company which means that the functioning
of it is in the hands of the government. They are highly responsible for making the decisions
regarding the purchase and sales of the products (Gottheil, 2013). Furthermore, there their main
objective is to develop with customer oriented approach and serveing goods as per there their
preferences. Primark is a public sector company and operates in the retail industry of the UK.
Key products of the firm are such as clothing items, cosmetic products as well as various
housewares. Objectives or purposes of the Primark Plc are to provide the better and high
quality of products and items at the lowest price to the consumers. Along with this, there is not
any kind of motive like enhancing level of profit on consistent basis and improve market share.
1.2 Determining the manner in which Primark meet the objectives of stakeholders
To start up with a company, they need to acquire with large number of stakeholders
which are highly involved in the proper functioning of the organization. Thus, it is very crucial to
understand with the needs of them and serve them with greater satisfaction level. Moreover, they
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are playing major part in making the decisions for the company. Further, following are the major
stakeholdersmajor stakeholders which are involved in organization are:
 Employees- They are the major elements of the company as they company is are directly
dependent on them for the completion of the work. Thus, it is very important to satisfy
them to a greater level by serving them with high incentives, bonuses, adequate salary,
healthy working conditions etc. This will help to meet with there their personal as well as
professional needs and enhance the performance level of the company (Haigh and
Brubaker, 2010).
 Customers- In the present time, the industry is using customer centric approach as
customers are playing an important role in the sustainability of the company. Thus, it is
highly important for the firm to develop with the goods and services after evaluating with
the needs and requirements of the customers. This will help to acquire large number of
people towards their organization.
 Suppliers- For developing with the final goods, the company requires raw materials from
different sources so it is important to maintain healthy relations with them. This will
assist them in getting adequate amount of goods at proper time so as to develop the
products.
 Government- It is been seen that every organization whether it is service or product
providers, all are highly affected by the policies and regulations developed by the legal
authority. Thus, it is important for the company to perform there their activities following
all the norms stated by the organization (Halbert and Ingulli, 2014).
1.3 Responsibilities of Primark PLC and their strategies
The company needs to develop with there their activities by proper planning. This will
involves with fulfilling the needs and responsibilities of all the stakeholders in an efficient
manner. Thus, this develops with the need to formulate with the policies and strategies ensuring
that the demands of all the people are achieved. Further, following are the major responsibilities
for Primark:
 Stakeholders’ interest- It is highly important for the firm that before setting up the
objectives for them, they should evaluate with the interest of all the stakeholders so as to
ensure there their high performance. It is also seen that by serving the benefits to them
will directly enhance with the efficiency of the company (Hurn, 2011).
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 Ethical consideration- The companyCompany is liable to make sure that they are highly
rich with theretheir ethical and moral values at the workplace. This will help to maintain
harmony among the employees and develops with the efficiency of company. They must
provide with equal opportunities to the employees and treat them equally.
 Health and safety at workplace- It is necessary for the Ccompany to take several
measures for ensuring the safety at the workplace so as to make people free from every
type of risk. Furthermore, they must also provide with other facilities such as clean
toilets, healthy drinking water, ventilation, proper lighting etc. so that employees feel
highly satisfied.
 Environmental concerns- The companyCompany must develop with the policies which
will ensure the betterment of the environment to a greater extent. This will include that
they must use the products which do not cause any harm to the nature. Further, they must
go for eco-friendly goods so that people get satisfied with it.
 Business responsibility- They must serve with highly quality products at adequate price
as it will help them to meet with theretheir business responsibility. Furthermore, they
must take several measures to acquire with market share in the industry (Iqbal and
Strong, 2010).
Every business organisation whether it operates in the public or another sector needs to
meet with the expectations and objectives of the potential stakeholders who are key assets for the
firm. Responsibilities of the Primark for customers is to provide better quality of product at the
affordable prices and increase their satisfaction level. Further. Employee wants that firm provide
god salary and better allowances. Towards the shareholders or investors responsibilities of the
Primark is to give better and higher return on the investment.
Moreover, in order to meet with the objective of the stakeholders the Primark needs to
make different strategies which helps to increase profit of the firm. The management used to
increase global presence across the world which lead to attract more number of customers are
sales and profit as well. Higher the profitability ratios lead to provide good salary and better
return to the employees and shareholders respectively. Apart from this it has to use different
approaches such as TQM, kaizen, lean production etc. which helps to increase quality of the
products and reduce cost of production as well. Hence, these all these the strategies are used by
Primark in order to meet and achieve goals and objectives of the stakeholders.
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TASK 2
2.1 Economic system of different countries
For every country there is a different economic system which determines the regulations
and legislations for the businesses. They are developing with the trading policies by evaluating
the availing conditions of the country. Thus, it will determine the rules for distributing the goods
and services to the different places.
In China, they are following transitional economy in the country. This means that the
people living there are free to make theretheir decisions as per there their needs. Further, by
analysing it is been seen that China is one of the largest economy in the world. According to the
transitional type of economy it changes from the planned economy. As per this the company and
community is restricted in order to take business decisions. Due to increasing population with
higher rate the respective kind of economy adopted by the China. (Jones and Vagliasindi, 2013).
In the transitional economy resources are allotted to the companies by considering authority
parties and companies both. Very basic accountable reason for this is that higher the population
is not handled by government only and due to which business entities also support in allocating
resources adequately. The transitional economic system is one of the best for those countries
which have higher number of population. By considering this kind of economic system China is
able to grow in the market because it leads to make command over the local community.
In United kingdomKingdom, it uses mixed economy in order to increase level of the
companies as well as enhance growth rate of the country. It is the combination or mixture of
types of economies such as capitalist and socialist. In the UK there are some decisions are made
by the company itself and in some type of decisions the government takes place. Very main
reason behind using such type of economy is that the UK is developed country which require
internal and external both decisions. In the UK, at the current scenario economy is under the
recession where financial resources are available in lesser quantity. Along with this, it is highly
necessary to manage such resources and for that responsibilities are taken by both government
and company (Gibbon and Sliwa, 2012). Hence, resources allocation systems are attempted by
both kinds of firms like private and public. Mixed economy is known as the dual economy also
because under this private as well as public both kinds of firms have high level of command in
order to produce products and services. Further, in the resource allocation method also both plays
significant role within industry.
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In Cuba, they are adopting with planned economy under which the government is ruling
on the industries and labour forces. In it, around 80% of Cuba's works under government owned
industries and 20% in private companies. Legal authority is having the authority for providing
with different facilities such as free education, programs for entertainment and food.
Furthermore, it is focusing to serve with higher foreign investment in country. Cuba having
lower population as compare to China as well as United Kingdom where community is easily
handled by government only. Moreover, due to having majority of public companies government
of the Cuba allocate resource where private entities not take place in this process. Because of
adopting planned economic system, in the Cuba different kinds of decisions like control over the
firms, prepare regulations, distribution system, price determining etc. are taken by government
only.
2.2 Impact of fiscal and monetary policy
In every country they follow with different set of fiscal as well as monetary policyies.
Furthermore, fiscal policy means that the use of money done by the legal authority and invest
them to have a positive influence on the economy of the country (Joseph and et.al. 2013). Thus,
this situation occurs because they need to control several factors such as unemployment rates,
taxation and many others which need to managedmanage at the proper time to ensure the
betterment of the country. Further, it may have negative effect on the economy if they are not
controlled properly at a proper time. Moreover, by developing proper analysis it is been found
that with the investment made by the government will have increase the employment
opportunities and reduce the taxation rate by a greater amount. Furthermore, they take the
decision for making the investment in different sectors such as in hospitality, education, health
etc. Further, this policy is having a great effect on the farming and housing sector. Thus, they get
positive and negative impact according to the availing situations of the market. Further, to
control with the situation, government make high investment to stabilize the growth rate of the
country (Lihitkar, 2013).
In contrast to this, monetary policy is an effective process which is been determined by
the central bank that are liable for the control of supply chain and the rotation of the money
across the market. In context to this, they are mainly targeting the inflation rates and currency
determination in the country. Further, with this policy, it may not be said that the farming and
housing sectors are affected by it. Moreover, from the data collected it can be analysed that with
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the stabilization of the prices, it will have a negative impact on the availing economy in the
country. In case of housing, when the interest rates are been increased than the prices of the real
house prices.
2.3 Identifying with the competition policy and regulatory mechanisms in UK
With the era of globalisation, there are large number of companies emerging in the
industry for serving the goods to the customers. Further, dueDue to this reason it enhances
increaseswith the competition level among the companies. Thus, it is important for the firms to
develop with unique products and marketing policies so as to attract with large number of
customers towards there organization. Moreover, the government has developed with the
competition policy to curb with the abuse of monopoly and protect with the rights and policies of
private as well as public sector. This policy will ensure that the rights of consumes are also taken
care of properly (Alcidi and Gros, 2011). Thus, the following are the major policies in context to
competition level determined by UK.
 Competition Act 1998 : It is determined to as one of the important reform that has made
to acquiree the improvement in the trading conditions availing in UK with other
countries. This act has highly helped to stabilise with trading between UK and Europe
with the protection of traders from monopoly abuse.
 Competition Appeal Tribunal : It comes under the section of Enterprise Act 2002 and
was developed to listen the appeals and actions which were taken against the law in
different sectors.
 Office of Fair Trading : It is considered as an independent body which was developed to
protect the people as well as competition law and has now become the economic
regulator of UK.
 Competition Commission : This was a body set up for investigating markets, mergers
and is a non departmental organisation.
 Enterprise Act 2002: This Act was an improvement and change made to the competition
act. This Act led the Office of Fair Trading a body independent from the government
(Dickinson, 2013).
Competition leads to create affect to the firm Primark Plc in order to meet with the
objectives and goals effectively. The reason is that due to occurring high competition level,
management needs to make changes in products and services due forto attracting more
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customers. Along with this, it is highly necessary to cut down costs and prices of the products
because people are always concerned towards pricing aspect. On the other hand side, because of
changing in production and pricing process, expenses burden create which is also negative
impact. Hence, it can be said that, when competition enhances then revenue generation capability
as well as profit level goes down of Primark within retain industry (Fernando, 2011).
Moreover, for every company it is highly necessary to consider various kinds of rules and
regulations which are framed by the government and accountable parties. Due to following and
implementing all the regulations within entity smooth functioning sometimes happen. Along
with this, because of changing in regulatory mechanisms modifications are has to be made which
hamper smooth business process. Within the company of Primark Plc there are several kinds of
regulatory mechanism available which lead to have an impact on the business process. Wages
are determined by the government and Labour Union for the workers in which it must provide
their minimum wage amount. At the previous scenario, if entity gives wages worth of 250 GBP
per day but as per the mechanisms it must be nearby 350-400 GBP each day then it leads to
create negative impact. Apart from this, several kinds of acts like Competition Act 1998,
Competition Commission Act and regulatory mechanisms, Office Fair Trading, Enterprise bill
2002 etc. are there (McGovern, 2014). On the basis of these all, the cited business has to assure
that they are using fair rules and policies to compete with rivals in same industry.
TASK 3
3.1 Determining how the pricing and output decisions in different market structures
In the economy, there are several markets which are availing to serve with the goods and
services to the customers. Thus, under each market they are having there owntheir own set of
values and pricing strategies for theretheir companies. Some of them are been explained in detail
below:
Perfect competition is a market structure in which there are many buyers and sellers for
the same good. It may only differ in theretheir brand names or quality. Further, under this
individual companies are having limited control over the pricing and in the market as every
company is sustaining and leading in there owntheir own manner (Evans, Stonehouse and
Campbell, 2012). Thus they have make a joint decision for setting up the prices for theretheir
goods. In this customers are having large number of choices to choose with theretheir product so
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it is important for company to come up with effective marketing strategy to attract the customers.
Primark PLC is included under this as there are large number of other retail outlets which are
selling with same products.
Monopoly refers to the market structure in which there is single seller who is serving
many people with theritse goods and services. It is availing with high control over the market as
they are the single firm which are producing with a particular product. Thus, they may set up
with the prices as per there needs and also seeing the demand for it. But it is very sensitive in
nature as with anthe increase in the prices it will highly have a negative impact on the sales
volume of the company (Gibbon and Sliwa, 2012).
Duopoly is considered to be next market similar to the oligopoly. In this there are mainly
two major firms which are having high influence in the market. In this, they are free to make the
decisions as only two of them are there which are serving with similar products an there are large
number of customers for the same. The appropriate example under this is Amazon and Apple
which developed with concept of e-book.
Oligopoly isOligopoly is the market structure in which there are some sellers which are
serving with the things which have some similarities within them. The decision for price is taken
by applying various strategies. The example of computer operating system shows oligopoly
feature of market where windows and apple use to dominate (Gottheil, 2013).
3.2 Determine how demand and supply shapes the organization
From the analysis made on the industry, it is been found that the market forces have a
great importance in shaping with the demand and supply with by serving with the goods and
services to the people. In the long run, the reaction given by the companies have a higher impact
on the brand image and the profit margin of companies. For evaluating with the appropriate
amount of demand and supply, the organization mainly develops with the efficient research
which help them to evaluate with the needs and requirements of the customers. In case of
Primark, they are efficient enough in stating with the adequate amount of demand in the future
market and this help them to produce with the products accordingly. They are effective in
distributing with the goods at proper time to appropriate people (Haigh and Brubaker, 2010).
Further, it is serving as a good sign in the increase of the profit margin of the company to a
greater extent. For example, in some stores of Primark, they are facing losses because of
inappropriate calculation made about the customer’s demand. As a result of this, they are either
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leaving the customers with empty handed or leave their business overstocked as no one is
interested in buying the stuff supplied by them. Thus it also affects the brand image of the
company. Further, the relationship between market forces as well as organization’s response is
important in ensuring the success of the firm and to satisfy the customers.
From the above diagram or graph of demand and supply it can be analysed that if demand
changes in the market then prices are as well changed. On the other side price gives responses on
the basis of supply in the market as well. It can be visualized from above graph diagram that if
demand increases then prices of products are also increased and vice-versa. On the other side if
supply reduce then prices as well. Further, between the supply and demand there is an inverse
relationship and highly impact on the prices of products and services. Demand and supply both
are economic aspects through which price of products and services are determined. When any
one aspect of the products of Primark Plc changes then pricing of services affects up to the
higher level. Due to enhancing in supply or demand or the retail products within industry, level
of price reduce and increase respectively (Evans, Stonehouse and Campbell, 2012). On the other
side, when supply and demand of goods reduce then prices are goes up and down respectively.
Hence, because of two economic elements like (supply and demand), company changes within
industry in terms of pricing aspect which create has direct impact on profitability position.
In the supply and demand apart from market equilibrium and price determination there
are several factors included which also lead to make changes under in the company. Moreover,
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