Analysis of Primark's PESTLE, Leadership, CSR, Brexit Impact

This report provides a comprehensive analysis of Primark, an Irish multinational fashion retailer. It begins with a PESTLE analysis, examining the political, economic, technological, legal, and environmental factors influencing Primark's market position. The report then delves into leadership styles, focusing on the suitability of various approaches such as bureaucratic, transactional, and democratic leadership, and recommending a combined approach. Furthermore, the report explores Primark's Corporate Social Responsibility (CSR) initiatives, highlighting its ethical practices and stakeholder engagement. Finally, it addresses the impact of Brexit and the COVID-19 pandemic on Primark's operations, offering insights into the challenges and adaptations faced by the company. The report concludes with a summary of key findings and recommendations.

MANAGEMENT

Table of Contents
INTRODUCTION ...........................................................................................................................................3
Conductivity of a PESTLE analysis of Primark. .........................................................................................3
Enumeration of the Leadership style in accordance to the requirement of Primark. ............................5
The elucidation of the completion of CSR by the company. ..................................................................6
The explication of the effects of Brexit and pandemic over the operations of Primark ..........................8
CONCLUSION ............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
The enumeration of the varied factors influencing the market positioning of a brand is an
imperative interjection to explicate in order to formulate a better plan of action to sustain in the
market for a considerable period of time. The analysis of the external environment should be
critically examined by the administration of an organization in order to assess the influence of
the constituents upon the functioning of the businesses (Zibenberg, 2022). The company chosen
for the scrutiny is Primark, which is an Irish multinational fashion retailer with its H.Q.
established in Dublin, Ireland. It is a subordinate of Associated British Foods (ABF) and has an
array of stores all across the Europe and in the USA. The conduction of PESTLE analysis along
with the critical examination of the suitable leadership style that should be opted by the company
will be elucidated in the report. The impact of the BREXIT along with the consequences of the
situation of COVID-19 will also be highlighted in the study.
Conductivity of a PESTLE analysis of Primark.
The scrutiny of the external environment of the business world is imperative for the
understanding of the potent effects of the elements present in the commercial world. The
PESTLE analysis will thereby help in examining the critical influence of the external factors
upon the functioning of the Primark. The factors can thereby be explicated furthermore:
POLITICAL: The importation of the items from the foreign countries can affect the cost
determination of the Primark financial analysis. The consumer will thereby have to face the
modification in the prices because of the rise in the monetary value of the products that will be
offered by the company. In order to bring out the best from the situation, Primark will have to
take severe steps to create a state of assurance for the customers in order to continue the purchase
form the company for the attainment of the standardized profits (Whitehill, 2022).
ECONOMICAL: The implications of the economical impact upon the Primark can further be
explicated:
Ascending fuel Costs: The continuous increase in the prices of the fuel has extensively
impacted the operations of the businesses. The decrease in the supply of the fossil fuels can
significantly affect the taxes that are apportioned by the government over the ecological

concerns. This thereby can result in the increase in the transportation costs. Primark will have to
incur more as compared to the previous transit costs because of this variable. This will ultimately
lead to a loss in the generation of wealth for the company.
Increase in the Remuneration: The dynamical changes that are prevalent in the economy
can raise the expectation of the personnel working in the organizations to have a hike in their
respective pay. This could result in the addition in the expenditure outlay designed by the
finance team. Primark will then be in a position to achieve comparatively less as compared to
the ascertained level of profits.
TECHNOLOICAL: The advancements in the technological facets in the business environment
can also have a significant impact over the functioning of the Primark operations. The aspects
can be further be explained in detail:
Brand-new Analytics: The introduction of the Artificial Intelligence in the form of the
advancements in the technology has enabled the companies to earn distinctive and additional
features about the scope of operations. The utilization of the AI in the accumulation of the data
has proved to be aid for the commercial enterprises to add on to their functionalities. These
improvements can thereby help Primark to explicate the results in a deterministic manner which
surely will lead to an enhancement of the profitability of the company (Tuffour and et. al.,
2022).
LEGAL: These involves all the laws and legislations influencing employment, quotas, import
and export, access to materials and taxation. In respect of Primark, they need to consider the
laws such as Employment Act 1996, Equality Act 2010, Data Protection Act 2018, Health and
Safety Act 1974 and many more.
ENVIRONMENTAL: These variables are profoundly worried about the result of the general
climate and the impact of eco-accommodating perspectives. It covers natural security
regulations, garbage removal regulations as well as energy utilization guideline. In respect of
Primark, brand has been able to sensitize more than five lakh employees concerning the issue of
human trafficking. Furthermore, it also focuses on the sustainability objectives such as limiting
carbon footprints and human rights and many more.

Enumeration of the Leadership style in accordance to the requirement of Primark.
The impact of the pioneers is basic upon the group working under his/her direction and it
is consequently required to embrace and adjust to the most reasonable initiative style which will
have an extensive effect upon the working of the associations. The comprehension of these
changed kinds of the styles can help in the impinging of turning into an adaptable and a revised
pioneer. The Primark can make use of the most suitable form of leadership style that will be
discussed furthermore, for the assurance of the appropriate functioning of the business
(Manchaiah and et. al., 2022).
Bureaucratic Leadership Style: Bureaucratic leadership can be characterized as a system of
rules abide by the management in order to follow a hierarchy where the official obligations are
determined and fixed. Workers in this form of style are anticipated to predate the specified rules
and the significant authorization appointed by their superiors. It is based on a clear chain of
bidding, rigorous modulations, and the follower conformity. It can be of huge benefit and
provides influential advantages to the highly survived businesses where the entire organization
parades on an efficient management.
Transactional Leadership Style: The goals of the Transactional leaders are to obtain the
assorted tasks that are to be performed by the subordinates and it renders punishments or rewards
to the employees based upon the performance results of the employees. The determined goals of
the company have to be exhaustively accomplished by the respective employees and should
significantly follow the direction provided by the managers. The employees tend to set up
planned goals together with a vision to grow along the venture (Magee and et. al., 2022). The
leader ascertained for a particular department is responsible to rouse workers when they neglect
to meet the objectives, they reward them also with rewards when the mission is successfully
accomplished.
Democratic or participative Leadership Style: With a vote-based administration style,
everybody is offered the chance to take part, thoughts are traded openly, and conversation is
energized. While this interaction will in general zero in on bunch uniformity and the free
progression of thoughts, the majority rule pioneer is still there to offer direction and control. The
popularity-based pioneer is likewise accused of concluding who is in the gathering and who will
add to the choices being made. Research has found that the popularity-based authority style is

perhaps of the best sort and prompts higher efficiency, better commitments from bunch
individuals, and expanded bunch resolve
Transformational Leadership Style: It centre around group building, spurring and helping out
representatives of an association to accomplish better changes on its various levels as well as it
improves efficiency and proficiency through elevated degree of correspondence to meet
objectives. The director goes further everyday tasks for taking his association to a higher degree
of progress including the executives (Jiang, Zhang, and Si, 2022). It gives open doors for expert
and self-improvement of representatives as well as pioneer’s core around higher perspective and
agent more modest errand to workers to accomplish objectives.
Laissez-Faire Leadership Style: It provides representatives with a ton of opportunity and
allowed them to function as they degree to fit in. Free enterprise enjoy benefit in organizations
with productive laborers who request less management as it saves time and have better official
relationship. It desires oversight and screen workers and couldn't give successive input on
customary premise. It is invaluable for individual administration and energize imagination
among workers. Yet, on the off chance that there needs oversight from administrators than they
might prompt unfortunate efficiency, inflating cost and absence of control.
The adoption of the transactional leadership by Primark, has helped in the achievement of the
goals of the company. It helps in providing opportunities in order to explore the ideas and the
viewpoints of the employees but the ultimate decision for the plan of action is upon the leader.
The exposition of the transactional leadership is not sufficient for the smooth and proper
functioning of Primark, thereby the company should add on the bureaucratic leadership style in
the management, as this will cater to the the nature of the management through an effective
distribution of the tasks among-st the employees and motivating them through the
conceptualization of rewarding.
The elucidation of the completion of CSR by the company.
The completion of the Corporate Social Responsibility (CSR) is an social obligation that
has to be influentially transferal out by the commercial enterprises that are operating in the
business world. It is thereby a comparison of the overall business performance of the company
with the culmination of the ethical responsibility for the tasks over the tenure of 12-24 months

(Hayat and et. al., 2022). The analysis of the Primark's CSR will be discussed in an explicated
manner in this segment of the study.
Affect upon the stakeholders of the company: The effect of the stakeholders upon the
functioning of the operations of the business, both in an internal and an external sense can be the
sole reason for the apportionment of the profits for the company. The maneuver of the CSR is
thereby significant for the attainment of a reliable and a viable position by the Primark. The
stakeholders can be the competitors, customers, social communities and the suppliers of the
company.
Primark's ethical practices in terms of the CSR: In order to avoid the scope of unethical
practices, the company have invested into a division known as the Trading and Environmental
Protection Team, exclusively designed by Primark. It is responsible for the application of the
ethical and social guidelines through the apportionment of additive policies and schemes
formulated by the company to adhere with the compliance.
 The signing of pledge for not sourcing the cotton from Turkmenistan and Uzbekistan,
until the government of the respective countries force a ban on the practices of forced
adult and child labor in the cotton industry. The commitment thereby generates the
notion in the market that the generated cotton from such practices will not be accepted
by Primark in their operations. This petition took place in the year 2015.
 The ABF, accompanying the practices of Primark, has adopted the Ant-Bribery and
Corruption Policy for the constitutive conduction of the business in an ethical and moral
behavior. The corrupt activities have been forced to halt by the company and the
identification of any of the inappropriate practice will lead to the termination of the
respective employee from the company (Filatotchev, Ireland and Stahl, 2022).
 In addition to abide by with environmental legislating policies in each of the countries in
which it functions, they perpetually raise consciousness of the perseverance of the
environment security, whenever it is possible. Primark is also ethically endowed in the
influential practices of the environment as the primary goal is to lessen the
environmental consequence of its activities, considering the Primark network of shops,
offices, transport, and distribution centres, while checking upon the various range of

goods the company deliver from their international supplying chain and make sure that it
is bring forth in an environmentally-friendly way. The focus of the company is upon the significant targets that are: procurement
responsibility, the supply chain engagement of the company, research over the better,
sustainable and attainable alternatives of the company, generation of the outputs in an
environmental friendly manner, rasing awareness in the general public and complying
with the legislative measures adopted by the government (Ertuna and et. al., 2022).
 Primark is also an invested company with the primary vision to generate and render the
demand of the customers in an eco-friendly manner. The reduced or the minimal
utilisation of packaging, usage of renewable materials in the goods and the reduction in
the wastages generated in the operations of the businesses are some of the elements that
are significantly considered by the functional departments of the company.
The explication of the effects of Brexit and pandemic over the operations of Primark
The exit from the Brexit can cause severe uncertainties for Primark, which can
influentially affect the orientation of the existence of the chain in the marketplace. This can result
in rising up the costs in the procurement of the materials and many other influential impacts upon
the functioning of the company. The critical consequences of the situation of COVID-19, has
furthermore generated rifts for the management and the administrative departments of the
Primark, which will also be discussed in this segment of the report:
The impact of Brexit: The challenges faced by the fashion industry of Europe due to the
situations related to the impact of Brexit has disrupted the functioning of the businesses in a
deliberative manner. The companies have experienced around 74% of hike in the costs
associated with the operations (Douch and Edwards, 2022). The custom clearance procedures
have also raised up to 44%, resulting in the unexpected rise of the duties imposed upon Primark
and other relative fashion stores. Along with the tariff and customs related increase, 98%
increase in the bureaucracy due to the result of Brexit have create significant problems for the
management of Primark. The imports have been affected in an influential manner which has
reduced the scope of trading. The administration charges that were of nominal amount, have
been considerably increased because of the pertaining situation.

Solution opted by Primark for coping up with the situation of Brexit: The vote in regards to
the Brexit in the UK, weakened the strain upon the profit margins of Primark. However, the
acceleration in the number of the stores is predicted to tighten the margins in the scope of the
loss will not pass upon the customers of the brand. The expansion can create an inventory to stop
with the amount of losses experienced by the company due to the pertaining situation of Brexit.
The protocols have been followed along with a revised strategical plan for the attainment of the
desired goals and objective (Coulson, Zou and Fernandez, 2022).
Effects of the situation of Pandemic over the functioning of the company: The implications
of the situation of COVID-19 have had an adverse affect upon the functioning and the operations
of the company. The impinging strike upon the fashion retail stores were fell short of the
management staff due to the restrictions that were imposed by the higher authorities. The shares
of the subsidiary, ABF, were down to about 3.4% in the year 2021. the two biggest marker of
Primark, Britain and Spain were badly affected by the situation of pandemic. The drop were
about 10% in the sales of the company. The finances of the companies along with the
administration of the management team were strike significantly which resulted in the shortages
of the resources.
Solutions derived for lifting up the company: The decision to not to venture in the online
trading platform even after the prevailing situation of COVID-19, has led to the expansion of
multiple stores in the country. The profits ratio of Primark was sternly affected but through the
optimum utilization of the strategical implementation of the company's policies, the situation has
been under the control. The pandemic has helped in the demonstration of the strengths of the
company and the new stores that were opened in the market received positive response form the
general public (Andrej, Breznik and Natek, 2022).

CONCLUSION
A judgement can hence be made that the obtaining of the reasonable reception of the
fitting initiative and the board style is basic for the smooth and viable working of the activities
and usefulness of an association. The identification of the crucial factors of the external
environment is also necessary to form certain measures for the prevention of the scope of
misfortune in the coming future. The analysis of the constituents that can affect the market
positioning of the organisations, must therefore be discovered by the organisations to prevent the
arrival of shortcomings in the operation of the commercial enterprises. The significant factors
that contemplate towards the utilisation of the appropriate culture for the transition is mandatory
for the accomplishment of the determined standards and the objectives of a firm. The
implementation of the justifiable applications for the promotion of the success and improvement
of the administration of the department is thereby imperative for attaining a significant position
in the marketplace.

REFERENCES
Books and Journals
Andrej, N., Breznik, K. and Natek, S., 2022. Managing knowledge to improve performance: The
impact of leadership style and knowledge management on organizational performance
with moderation effects via PLS-SEM. Journal of the Knowledge Economy, pp.1-30.
Coulson, H.L., Zou, Y. and Fernandez, F., 2022. Leadership Theories and Case Study Approach.
In Transformational University Leadership. Emerald Publishing Limited.
Douch, M. and Edwards, T.H., 2022. The bilateral trade effects of announcement shocks: Brexit
as a natural field experiment. Journal of Applied Econometrics, 37(2), pp.305-329.
Ertuna, and et. al., 2022. “A thread connects all beads”: Aligning global CSR strategy by hotel
MNCs. Tourism Management, 91, p.104520.
Filatotchev, I., Ireland, R.D. and Stahl, G.K., 2022. Contextualizing management research: An
open systems perspective. Journal of Management Studies, 59(4), pp.1036-1056.
Hayat, K., and et. al., 2022. Eco-advertising and ban-on-plastic: The influence of CSR green
practices on green impulse behavior. Journal of the Knowledge Economy, pp.1-30.
Jiang, W., Zhang, C. and Si, C., 2022. The real effect of mandatory CSR disclosure: Evidence of
corporate tax avoidance. Technological Forecasting and Social Change, 179, p.121646.
Magee, L.A., and et. al., 2022. The 2021 International Society for the Study of Hypertension in
Pregnancy classification, diagnosis & management recommendations for international
practice. Pregnancy Hypertension, 27, pp.148-169.
Manchaiah, V., and et. al., 2022. International survey of audiologists during the COVID-19
pandemic: effects on the workplace. International Journal of Audiology, 61(4), pp.265-
272.
Tuffour, and et. al., 2022. Managerial leadership style and employee commitment: Evidence
from the financial sector. Global Business Review, 23(3), pp.543-560.
Whitehill, A.M., 2022. Japanese management: Tradition and transition. Taylor & Francis.
Zibenberg, A., 2022. The role of implicit theories in predicting creativity fostering teacher
behavior: Gender as moderator. Thinking Skills and Creativity, 44, p.101024.