BMSW_5105 Report: PESTEL Analysis, Cultural Web, and Ethics at Primark

This report provides a comprehensive analysis of the external factors affecting Primark's business environment through a PESTEL analysis, examining political, economic, social, technological, environmental, and legal influences. It also explores Primark's organizational culture using the cultural web framework, highlighting the company's market-driven approach and its impact on employees. Furthermore, the report addresses ethical dilemmas faced by businesses and potential solutions, emphasizing the importance of ethical practices for organizational growth. The analysis considers globalization, information technology, and the knowledge economy as key factors shaping Primark's strategies for competitiveness and success in the retail industry.

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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Organization environment affected from PESTEL analysis........................................................4
Cultural web.................................................................................................................................7
Ethical Dilemma and their solutions............................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13

INTRODUCTION
PESTEL analysis is structure of external factors which are affecting the business
environment. The full form of this analysis is Political, economical, social, technological,
environmental, and legal. Small and big both kinds of organizations are affected from this
analysis. Culture web is tool for analysis six various culture of the organization. Ethical dilemma
is a situation where employee business man worker have two options but the choosing of right
option is also difficult, That is the reason company give training for ethical principal. It is tool to
provide some approach for changes in organization culture (Wajid and Zafar, 2021). Primark is
one of the top retail industry in UK., which is selling clothes, accessories for women, teenager,
collage students, school students etc. This report will look at the factor which are affecting the
industry or business environment from external forces. Changes in external forces it directly
reflects the company performance. This report will give long detail about various factor which
helps for business environment and ethical business practices for organization growth.
MAIN BODY
Organization environment affected from PESTEL analysis
Every business or organization is affecting from various external factors. Factors are
directly impact on the growth and reputation of the company. The Primark industry will also
affect external forces. But every organization try to make different strategies for business growth
in competitive market. Primark industry or many industries are affecting from PESTEL analysis
as follows,
Political Factor:
This factor is affecting the organization policies and rules. Changes in government
policies will directly affecting the company performance. On the behalf of government policy
company has to focus on changes in their policy is very essential for surviving in market. The
Primark market is also applying policies and regulation for better goodwill in UK market. We
know that this company is mainly selling the cloths, so changes in government policy will
directly affect the selling (Vintilă, and et.al., 2017). So every company has to focus on
maintaining or applying their policies where they run their business. This organization needs to
make sure that it enters its market after the consideration of the political factors as it can create a
lot of changes in its operations.

Economic Factor:
This is the biggest affected factor for organization in recent time. Unwanted situations are
directly affecting the growth of this organization, not only this organization economic factors are
affected so many organization performance. Recently pandemic coronavirus is affecting the
whole world economy. Primark is the market where all types of cloths are selling, it means cheap
and branded both. Managing the various products is very important according to weather.. On
the basis of fashion conscious women, tanagers are always wanted to look good, and Primary
market has cheap cloths store, so this company are not much affected from economic crises. Due
to the economic recession which has been in the UK economy for the last couple of years this
organization has been affected,
Social Factor :
The changes in value, thought's, perception of customer is affects the organization sell.
Fashion trend is the biggest advantage for this industry. People getting more fashionable day by
day it is good for this company. Knowledge about social environmental factor organization
added new product for customer (Rattanapongpinyo, 2019). Primark industry facing many
challenges like, fast changes in fashion is increase wastage of old stock, new brands, new stores,
new techniques in selling process etc. This factor is affecting this kind of organization
performance. People are more believe in new brands is also threat but application of
collaboration of new brands techniques is very great strategy for this organization. The society is
very influential for the organization as the employees of the organization are from the a social
background which affects the business of the organization.
Technological Factor:
Increasing the popularity of smart phone users it is affecting the performance of many
organizations. Uses of various online shopping app people are more comfortable with online
shopping. Currently social media is the biggest platform for selling products. Primark also have
online presence on social medial but lacking of online store presence is threat of this
organization. But due to it low prices and fashionable products are very great strategy for
maintaining the company sell. We all know changes in technology is directly impact the business
activity, but applying some strategy it is very grateful for organization success. Innovation of
technology give improvement in quality of the product and more efficiency in transaction or
supply process. Uses of technology will decrease the economic and social changes.

Environmental Factor:
Every organization has some responsibility to maintain the environment. Uses of proper
resources and low wastage is the best way to decrease environmental issues. When the
organization starts business they have to prepare proper structure for better utilization of
resources and recycle of wastage. Policies are created for avoid some kinds of resources which
are not good for environment. Currently people are more believes in eco-friendly environment.
Primary company always trying to do something better for the environment. Shifting in weather
patterns and natural disasters is directly affecting the business's environment.
Legal factor:
Before started any organization business men has to know about legal rules and
regulation. Changes in legal policy will directly affecting the business performance. Every
organization must be following the laws and rules which is creating by government. Company's
laws like trading policy, salaries, wages, tax policy, insurance policy etc. It is very obvious that
transportation charge will increase when the fuel prices increase, it is directly affecting the cost
of the product. Safety of employee, workers working hour, rights of buyers is essential for
organization because these all laws are creating by government (Saudi, 2021). Changes in the
laws of the related to the organization means that it needs to alter its operations for working with
the legal factors.
Organizations are affected from various environmental changes. The economy fluctuates
on every day basis, running with the changes is very important for surviving in huge market. 3
major factors which are rapidly changes the business environment are as follows,
Globalization:
This is the biggest and important economic phenomenon in today's business environment.
It is the very large issue for business success, increasing competition in market will affect the
business growth. Primark industry has huge market of cloths and accessories. Surviving in this
competitive market this company is adopt policy like produce product with less cost and sells
cheaper prices, it is increase the market sell (Khan, Hossain and Rabbi, 2018). Many
organizations are applying different kinds of technique to fight with their competition in global
market.
Information Technology:

New technology will help to increasing the business environment performance. We all
know that knowing about whole technology is difficult but it is very beneficial for organization
growth in recent market tends. Primark organization using with technology they are increase
their selling activity, market research activity, better productivity and operational activity etc. It
helps to improve the business. According to recent market trend most of the organization are
prepared their website for online selling their products.
The knowledge economy:
Knowledge of new technology, people choice, wants, perception is best key for surviving
in the recent trend marketplace. Knowledge base organization explore their business in many
ways. They have proper structure and clear picture of which product profit margin is most. Many
business man if their business is small or large they have to mainly focus on their tar gate
audience. From the using of social media is very easy to find that which competitor lead in
market. Knowledge of your competitor strength and weaknesses is the best thing which helps to
change your strategy of business environment. Primark company increasing their business with
knowing about which products are most lead in market. Expand of the knowledge in
environmental changes gives more idea about which product is beneficial for business.
Cultural web
When the employees of the Primark company were asked some questions related to the
organisational culture of the company, it helped in generating different insights. They were asked
if they are knowledgeable about which culture is followed by the company. It can be analysed
that maximum people have the idea about the culture followed within Primark. They expressed
their thoughts about the culture being very tactical and strategic. Some employees believed it to
be more organised however a great working environment (Martínez-Caro, Cegarra-Navarro, and
Alfonso-Ruiz, 2020). Employees are happy in working together and making the customers of the
company feel satisfied. Organisational culture are important as they represent the framework
followed by the company along with the shared values and practices. The main focus of Primark
is attaining the competition advantage and growth. Company is stable and in control. The market
culture of Primark helps in putting more focus on the profitability. Each and every thing is
evaluated keeping I the kind about the bottom line which is that each position works wit a certain

objective and it is important for it to align with the large goal of the company. There are different
points of separation which between the employees and roles of leaders.
This organisational culture makes Primark very result oriented which will aim on the
external success and not more about the internal satisfaction (Erthal and Marques, 2018). Market
culture will put more stress on the importance of meeting the goals and reaching the targets to
get the final results. When the employees were asked if this culture is good or bad, there were
some mixed responses saying leading to some pros and cons of the culture. The advantage of
using market culture is that it helps the company to generate maximum profit and do well on the
path of success. This culture makes the organisation be more externally focused and this itself is
the main objective of the behind the work and progress of the employees. However, the
disadvantages of this culture is that there are numbers along with every decision, project as well
as the position present within the company. It becomes stressful for the employees to engage
with their work in a meaningful way and fulfil the professional purpose in the process. Primark
has to follow market culture to survive in its industry. There are many large companies which are
leading in pack and this culture helps in competing and beating out the firms in comparison with
Primark.
Market culture helps the company to always stay one step ahead as there is always
competitors in mind and this culture leads the company to stay updated with the market trends
and on going things within the industry. It helps the company to be ready to react at anything
coming its way. Market culture also helps in driving the ambitious employees towards the
company which are inspired by their leaders and have a constant focus on building skills and
increasing their knowledge (Halim, Ahmad, and Ramayah, 2019). On the other hand, the team
members are under constant pressure to achieve the desired results in a fast pace. This leads to
over work where well being takes the back seat. It can lead to many negative impacts on the
employees such as poor mental health, bad p[productivity and losing the team morale. With this
high competitive environment in the market as well as in the organisation, employees stand
against each other rather than working together. This can lead to create more dishonest situations
in the work place. This can also create difficulty in successful collaboration and problems in
team work.
Lastly, they were asked about the model of the culture within Primark which they have
complete knowledge of the following cultural model.

Hofstede cultural model :
The Hofstede cultural model of the dimensions of national culture explains that there is a
need to change the business and marketing strategies for the basis of needs of demand and local
culture. For the local culture of this organization there should be compromises for the values,
norms and traditions of a specific region. country or community. There is strong influence on the
company which is help responsible as it affects the fashion retailer remark for playing the
sustainability card in the local campaigns and strategies. In this model five dimensions are
discussed which plays an important role in shaping the culture of the organization. These
dimensions are power, gender, uncertainty and time which helps the organization to think about
the cultural value of dimension that helps with the continuum stages of the organization. In
Primark the organizational culture is so important that it follows all the power, gender and
uncertainty and time factor. The power in this organization is divided in the terms of the
structure. There is enough diversification in the organization due to which the organization has
employees from different caste, gender, age and society. Due to this reason there are uncertainty
in the culture of the organization however the work rate of the employees helps in managing the
situations in the given time (Åhman and et.al.,2019).
Ethical Dilemma and their solutions
Ethical dilemma is a problem in decision-making process between two possible options.
These things we are facing in daily life but the other hand when it comes in business place it is
very complicated challenges that cannot be solved easily. Ethical dilemma are specially affecting
the workplace. Some companies are professionally using their ethical standards. At workplace
people don't wanted to do any unethical mistakes but some time by mistake's employee do any
mistakes which is affecting the ethical law of organization. Harassment and discrimination in the
organization is very unethical activity (Anderson and Anderson, 2018). Such kind of unethical
practices are affecting overall business environment. Almost every aspect of business can be
become ethical dilemmas. This includes like relationship clients, business partners, co-workers
etc. For solving of ethical problems companies and organization are set some standards for
employees. Loyalty and truth are the best option for making good environment in organization.
Every company are following their ethical norms. Businesses are provided ethical training to
their employee, it very essential for managing good business environment. Better ethical

practices is one of the keys to creating strong and well run organization. Proper resolution of
ethical dilemmas gives efficient work, better productivity, operation activity, it helps to
employee morale high, create strengthen leadership, and improve company profile at market
place.
For Primark its corporate social responsibility is very important. However, this
organization also faces some ethical dilemma in which it fails to complete the ethical
responsibility. It is important for this organization to have ethics in its organization. Ethical
dilemma occurs for this organization in its operations (Geppert, 2018). Some discussed ethical
dilemmas which Primark faces are regarding the business activities are,
People :
This organization has displayed good transparency as it is listed in 28 different countries.
Due to which its supply chain is very strong. For ensuring the activities which its employees
need to follow the organization has translated its code of conduct 40 languages for assuring the
that people have been able to understand it. Still, after all this organization have been held
responsible for the following allegations. In a report it was concluded that in Sri Lanka the
employees were interview and this interview stated that non of these employees experience were
according to the code of conduct which this organization had developed. These allegations which
were found from these employees were also violating the local laws of the organization.
For Primark the best solutions regarding this breach would be to changes its operations in
Sri Lanka and also increase the awareness of its Code of conduct in different countries even
more than it actually does. The employee safety, health and importances are very crucial for the
organization to consider. For the organization understanding the key requirements of the ethical
responsibility towards the people working for it is very important (Wachs, 2017).
Environment :
Primark has shown bad results when it comes to their ethical responsibility towards the
environment. This organization does show some positive intension towards the environment. For
which they have made some effort in which they have showed ways of improving their business
operation so that the effects the environment less that before. This organization understood that
what the key areas of environmental impact were. It needed to show its chemical management,
sustainable cotton, energy efficiency, transportation and GHG emission. However, this
organization failed to show any of the quantified or dated environmental reduction. This turned

into an ethical dilemma for the organization. This organization needs to show that it is making
more and more efforts for resolving the issues it is having in the organization. With the help of
this the ethical responsibility of the organization will be able to maintained (CFI Education Inc,
2021). This organization can try to increase the its environmental responsibility by planting trees
and making donations for the animal care.
CONCLUSION
With the help of this project it can be concluded that Primark gets affected with the help
of its organization's Pestle analysis in which the external factors and their effects are explained.
This project also identifies the key drivers of changes which are responsible for changes in the
business environment. In this project the cultural web is explained with the help of a developed
questionnaire with the help of which the culture of the organization is determined and examined.
In this project the ethical dilemma is explained and the two ethical dilemmas which has occurred
in Primark are explained.

REFERENCES
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