Primark's Business Environment: Economic Policies and Market Forces

This report provides a comprehensive analysis of Primark's business environment, examining various factors that influence its operations and performance. It begins by identifying different types of organizations and their purposes, followed by an assessment of how well Primark meets the objectives of its stakeholders, including shareholders, employees, customers, and suppliers. The report also explores the responsibilities of organizations and the strategies they employ to meet them, such as satisfying stakeholder interests, promoting equal opportunities, and adhering to health and safety legislation. Furthermore, it delves into different economic systems adopted by countries like Cuba, the UK, and China, and their impact on resource allocation. The impact of fiscal and monetary policies on industries like farming and housing is also examined, along with the effects of competition policies on business activities in the UK. The report further discusses how pricing and output decisions are made in different market structures and how market forces and the business and cultural environment shape Primark's strategies. Finally, the significance of international trade in the UK, the impact of global factors, and the influence of EU policies on Primark's operations are analyzed. This detailed overview provides a holistic understanding of the multifaceted business environment in which Primark operates.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different types of organization and its purposes...................................................................1
1.2 Extent to which Primark meets the objectives of different stakeholders...............................2
1.3 Responsibilities of organization and strategies to meet them................................................2
TASK 2............................................................................................................................................3
2.1 Different economic systems adopted by different countries to attempt to allocate resources
.....................................................................................................................................................3
2.2 Impact of fiscal and monetary policy....................................................................................4
2.3 Impact of competition policy on business activities..............................................................5
TASK 3............................................................................................................................................5
3.1 How pricing and output decisions of the company determines in distinctive market
structure.......................................................................................................................................5
3.2 What are ways through market forces can shape to business................................................7
3.3 How business and cultural environment can shape to Primark.............................................8
TASK 4............................................................................................................................................8
4.1 Significance of international trade in UK..............................................................................8
4.2 Impact of global factors on UK.............................................................................................9
4.3 Impact of different policies of EU.......................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Every enterprise set their purpose according to their resource availability and formulation of
plan. Business environment consist purpose to achieve common goals and objectives of
the business. It determines process through company can ascertain profits and positive
results at workplace (Popovič, Hackney and Jaklič, 2014). In this way, different factors
are creates impact on the organisation performances which assist to make decisions
regarding business operations and outcomes. In this context, present report is based on
Primark which determines to achieve goals through policies and regulations. It is
subsidiary company of British food group in retail clothing.
For gaining insight knowledge of the company, present report covers objectives of
different stakeholder who are participated to achieve goals of the business. Furthermore, it also
involves functions of organisation environment who can take responsibilities through strategies
and purposes for comply legal regulations within the business environment. Moreover, it also
determines impact of fiscal and monetary policy on company performances.
TASK 1
1.1 Different types of organization and its purposes
Following are the purposes of different types of organization such as-
 Public sector- It involves the companies that is owned and operated by public. However,
such type of companies’ issues securities in the form of shares for general public and
often them share in the stock of firm. Main purpose of public sector company is to earn
profits in order to share profits in the form of dividends with its shareholders. Primark
falls under such sector and deals in retail clothing in regard to provide wide range of
products or services to clients and attain satisfaction (Grublješič and Jaklič, 2015).
 Charity- It falls under non-profit company and does not operate its services in regard to
earn profits. Here, individual works in regard to fulfill the interest of society and not
individual interest. Thus, its main purpose is to serve the society as the whole and not
earning profits. Chilliness Organization of UK is a charitable firm and offers 24 hour help
line services for children who are facing poverty. Thus, such organization’s main purpose
is to safeguard the children from any type of danger. However, it also runs programs
related to child welfare, development etc (Kalfa and Taksa, 2015).
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 Cooperative- Further, it is another sector in which businesses operates and thus work for
attaining dual interest both profit and social welfare. Main purpose of such organization
is to deliver services to its members and attain satisfaction. Cooperative sector main
purpose is to earn profits and also serve the society for their benefits.
1.2 Extent to which Primark meets the objectives of different stakeholders
The organization undertaken is Primark and its main objective is to earn profits and
improve customer service in market. Following are the different objectives of its stakeholders
involved within firm and thus firm aims to attain the same which are discussed underneath-
 Shareholders- It is considered as one of the crucial stakeholder and thus Primark needs to
share dividends among them from the profits. However, in regard to meet the objectives,
firm needs to enhance its market share and satisfaction among customers. Thus, through
such it would prove to be beneficial for firm to meet the desired objectives of its
shareholders (Alonso and Bressan, 2014).
 Employees- Further, workers are considered as crucial asset for every organization and
thus Primark needs to assess the objective of providing best working environment for its
works and improve their satisfaction. In order to meet the objectives it helps Primark to
offer them high salaries and gain their satisfaction.
 Customers- Main objective of firm towards customers is that providing them best quality
products or services and attain satisfaction. Therefore, it is similar with Primark as due to
tough competition in market, firm aims to provide quality fashionable clothes at
affordable prices and thus gain satisfaction among customers (Sharma, 2015). It proves
beneficial for firm to attain desired objectives and enhance productivity of firm in market.
 Suppliers- Further, Primark tries to attain the objectives of its suppliers that provide them
timely payments and thus maintain relationship with them. Through attaining such
objective it helps firm to have strong bond with the suppliers and deliver good quality
raw material to them.
1.3 Responsibilities of organization and strategies to meet them
Following are the different responsibilities of businesses and strategies employed to meet
them such as-
 Interest of stakeholders- Primark’s main responsibility is to earn profits in regard to share
profits among its stakeholders in the form of profits. Therefore, firm need to implement
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effective strategy of serving good quality retail clothes at affordable prices and thus
satisfy individual’s needs. Hence, it is the best way through meeting the needs of
stakeholders (Kozubíková, Belás and Bartos, 2015).
 Satisfying the objectives of stakeholders- Further, it is another responsibility of
organization and they aim to earn high profits in order to gain positive outcomes. Primark
identifies the objectives of its stakeholders and provide them better services to attain
success. Thus, through delivering quality products it helps firm to raise the brand image
in market.
 Carrying equal opportunities and follow discriminatory regulations- Primark possess the
responsibility of carrying out equal opportunities for each and every workers and thus
follow discriminatory regulations and thus does not discriminate among workers.
However, in order to achieve such objective (Humphrey, Spratt and Henson, 2014),
Primark adopts the strategy of carrying out effective recruitment and selection process
and does not discriminate workers on the bases of age, sex or race. They hire candidates
on the basis of skills and talents and attain objectives of firm.
 Health and safety legislation- One of the main responsibilities of Primark is to maintain
proper health an safety legislation in regard satisfy the needs of workers. Thus, it is
crucial for firm to develop effective objectives and thus maintain healthy workplace
environment so that business activities could be carried out effectively (Dües, Tan and
Lim, 2013).
TASK 2
2.1 Different economic systems adopted by different countries to attempt to allocate resources
Following ate the different economic systems adopted by countries in regard to allocate
resources effectively and efficiently-
 Cuba- It involves 2 different types of economic system which is also known as dual
economy system. However, on economic system consists of socialist which provides free
education, health care services and provide employment opportunities to people. While,
another economic system which is followed by Cuba is planned economic system which
is operated and owned by government (Williams and Schaefer, 2013). However, Cuba is
the country which is mainly suffering from corruption and bureaucracy and thus if
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Primark aims to operate in such economic system then they need to follow the decisions
of government in order to carry out their activities and operations.
 UK- Mixed economic system is being followed within UK and thus in such type of
country major decisions are being taken by the market forces. While, there are certain
decisions which ate also being taken by the government forces related with supply of
products, medicines and infrastructure etc. Here, it requires businesses to carry out high
amount of efficiency and thus take major decisions so that companies can operate in
competitive market (Folke and Kåberger, 2013). Thus, if Primark chooses such market to
operate it provides them market and therefore they need to follow the rules and
regulations developed by government.
 China- Further, command economy is being followed within such type of country and
thus all the decisions are being taken by the government as they control the operations of
firm in market. Therefore, here before entering Primark needs to collaborate with some
local company then only they can start their operations in China.
2.2 Impact of fiscal and monetary policy
Following are the impact of fiscal and monetary policy on different types of businesses
such as housing and farming such as-
 Impact of fiscal and monetary policy on farming- Fiscal policy is considered as the
crucial element that is available with government and thus it helps in determining that
developing countries helps in promoting growth and distribution of income in farming
activities. However, it also impacts upon firm in regard to obtain positive impact so that
they can help in improving technology, infrastructure and human resources. All these
factors are cruel part of agricultural sector and thus improve the business (Brea‐Solís,
Casadesus‐Masanell and Grifell‐Tatjé, 2015). Furthermore, monetary policy also impacts
upon farming activities as it is essential for farmers to require money in order to carry out
their operations. Thus, through involving monetary policy that impacts on agricultural
development and carries out effective practices and attains success. However, it helps in
improving funding and enhances farming activities in business.
 Impact of fiscal and monetary policy on housing- Through developing fiscal policy it
helps in creating better housing facilities for employees who fall at lower level. Hence, it
helps in satisfying the needs of poor people who aim to construct houses. While,
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monetary policy has been determined by Central government and thus it influences
money supply within economy (Grublješič and Jaklič, 2015). Its main impact upon
housing sector is that it influences the rate of interest and inflation that are considered as
the main part of employment and consumption level.
2.3 Impact of competition policy on business activities
Following are the different completion policy that affects the business activities in UK
such as-
 Impact of competition act 1998- Such act is made in terms of fulfilling the purpose of
business and trade activities. Primark aims to provide quality products that assists in
raising the sales in market (Kalfa and Taksa, 2015).
 Impact of regional policy- In such policy it helps EU to assign funds in regard to enhance
employment opportunities within country. Thus, it impacts positive impact upon Primark
to improve business operations.
 Impact of industrial policy- Industrial policy within UK is being carried for development
of firm. However, it motivates small businesses and improves their contribution towards
economic growth and development (Alonso and Bressan, 2014).
 Impact of training and skills policy- It is essential for government to determine rules and
regulations in regard to improve training for workers and improve their skills. Primark
aims to undertake such policy in relation to enhance training within workers (Sharma,
2015).
 Impact of fair trading act 1973- In such act it creates positive impact upon firm in regard
to make loyal customers within Primark.
TASK 3
3.1 How pricing and output decisions of the company determines in distinctive market structure
Different types of economic system follows by market through they can take pricing and
output decisions at workplace. It assists to manage business results for develop operations and
results in effective manner. Effective pricing and output decisions are made for overall growth
and results at workplace. Following are four type of market structure consist important role
within the organisation:
Market structure Attributes Pricing and output decisions
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Perfect competition In this type of market
structure, various buyers and
sellers are take place. Thus,
both have wide choice to
purchase and sell products and
services. Primark comes under
in this type of market structure
so that they can have no effect
if anyone leaves purchasing
and selling to particular
person.
In this type of market structure
pricing and output
decisions are made on
the market demand.
Hence, various
outcomes can be take
place (Popovič,
Hackney and Jaklič,
2014).
Monopoly In this type of structure, only
one seller take place
within the market who
sell products and
services according to
their own convenience.
Hence, customer have
no choice to make
profitability and
positive results in the
company. British gas is
the best example of this
market structure (Brea‐
Solís, Casadesus‐
Masanell and Grifell‐
Tatjé, 2015).
In monopoly market structure,
pricing and output decisions
are taken their own
determination.
Duopoly In duopoly market structure
only two firms are
undertake their
In this type of market
structure, both firms review
market activities and take
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outcomes within the
market. They are
producing uniform
products and services
within the market.
Amazon is one of the
best example of this
type of market structure
(Popovič, Hackney and
Jaklič, 2014).
decisions accordingly.
Oligopoly Oligopoly market structure
dominating in which few firm
compete with each other. They
all are selling same products
and services through the
company can achieve
competitive advantages
Pricing and output decisions
are made according to
competitive marketing strategy
through business can set their
plan at workplace.
3.2 What are ways through market forces can shape to business
Market forces are determines to develop functions and operations in term of demand and
supply of the company. These factor create major impact on the quality performances of
Primark which need to e undertake for development of operations. It can also influence
and give shape to manage business results. This is because, demand and supply
fluctuating day by day that create impact on company performance (Safrudin, Rosemann
and Genrich, 2014). It can be determines through increasing and decreasing of demand
and supply within the cited firm. Thus, two types of demand can be schedule which are as
follows:
Increasing in demand curve
Increasing demand curve determine shifting of curve in right side. It is the situation when
demand of Primark products is increases. In this aspect, the cited firm undertake various
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roles and responsibilities through they will easily achieve high price on their products and
services (Brea‐Solís, Casadesus‐Masanell and Grifell‐Tatjé, 2015).
Decreasing in demand curve
Decreasing in demand curve determine when demand of particular products is reduce.
Thus, it creates negative impact on the business performances. Hence, the cited firm need to
develop their results and profitability. It is the situation when substitute products of the company
enhance at workplace (Popovič, Hackney and Jaklič, 2014).
3.3 How business and cultural environment can shape to Primark
External business environment create major impact on the business performance which
determine through organisation behaviour. In this aspect, Primark is greatly affected
through different elements which need to be ascertain at workplace. It can be influence to
behaviour and activity which need to be undertake at workplace. It also shape to business
operations which determine for development of the company operations (Bernstein,
2015).
On the other hand, culture environment can also shape through develop operations
according to customer requirement. In this way, the cited firm need to expand their
operations according to market demand. In this way, Primark can easily satisfy all
customer of different countries and other places. In addition to this, it is also determines
to ascertain results through understanding demographic segmentation at workplace
(Safrudin, Rosemann and Genrich, 2014). Hence, the company can easily develop market
for achieve common goals and objectives.
TASK 4
4.1 Significance of international trade in UK
International trade is develops across the national boundaries, through business can
achieve targets and goals in systematic manner. In this aspect, activities are created within
two or more national boundaries which can support to various outcomes of the company.
In addition to this, it also imposes to import and export element of the market which
determines through protect business environment (Kliegl and Weaver, 2014). Following
are such significance can be considers in international trade of UK market:
Production cost
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International trade produce effective results at workplace through perform different
activities and actions. Thus, company need to develop their operations in new areas. In
this way, Primark has effective advantages through they will able to cooperate with
international market. With the supplying of qualitative products and services, the cited
firm can easily enhance their operations and results in different areas (McBride, 2014).
Enhance currency and foreign trade
With the help of international trade, Primark has opportunity through they can increase
foreign currency at workplace. Hence, different areas of the business can ascertain
profitability which need to be manage within the enterprise (Griffin, 2013).
Effective economy system
Economy also create significant impact through developing outcomes at international
place. In this way, the company can easily enhance profits and manage business results at
workplace (Beske, Land and Seuring, 2014). In addition to this, Primark has chances to
adopt new economy system through maintain their relations in international market.
4.2 Impact of global factors on UK
There are various global factors which create impact on the business performances of UK.
In this aspect, when any business operating their functions in international market, they
can easily boost their economy in different part of the world. With the help of new
market, targets and positive results can be undertake at workplace (Fraser, 2015). In
addition to this, Primark have different global factors which creates impact when they are
operating functions in international market. They are as follows:
Global warming
Due to water shortage, UK market is highly affected so that Primark cannot easily
enhance their operations in new areas. In addition to this, poor economy conditions of
various other country such as china, Cuba many other nation can generate impact on the
business performances. Global warming requires for attain positive results and outcomes
through perform different activities at workplace (Pattanayak and Roy, 2015).
Market opportunity
Market opportunities develops for the business through organisation can easily operate
functions in new places. In this aspect, Primark need to concentrate on existing elements
of market that determine to achieve common goals and targets at workplace (Brea‐Solís,
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