Business Context of Primark: SWOT, PESTEL, and Leadership Analysis

This report provides a comprehensive analysis of Primark's business context, utilizing SWOT and PESTEL frameworks to evaluate the company's internal strengths and weaknesses, as well as external opportunities and threats. The SWOT analysis identifies Primark's strengths such as its affordability and innovative practices, weaknesses including the lack of online sales and past controversies, opportunities in digitalization and customer segmentation, and threats from market competition and policy fluctuations. The PESTEL analysis examines political, economic, social, technological, legal, and environmental factors affecting Primark's operations. The report also evaluates how changes in PESTEL factors influence business opportunities and threats, and recommends a democratic leadership style to foster innovation and employee engagement, while also suggesting the use of authoritative leadership in certain situations. This thorough analysis aims to provide strategic insights for Primark's future growth and sustainability.

CONTEXT OF
BUSINESS

Table of Contents
INTRODUCTION : ........................................................................................................................3
TASK...............................................................................................................................................3
Perform a SWOT and PESTEL analysis for chosen business.........................................................3
SWOT analysis- .............................................................................................................................3
Recommend a suitable leadership style......................................................................................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION :
Their is served that in all the countries the growth and the establishment is managed
through the revenue generation which is encompassed by the goods and services that are being
made by the company in order to gain profit and turnover. Business environment implies to be
all such factors in which different orientations and their management is aligned. This helps in
giving the achievement to all the higher terms and also helps the company to manage the growth
in both ethical legal and in corporative manner. This generally tends to maintain the internal and
the external analysis which helps to analyse and manage the tendency of work and also to frame
the business expansion. The organisation chosen in this report is Primark it is a well known
retailing company specialised in footwear, clothing and accessories June 1969 by the western
areas and families. their will be given the the evaluation of all the internal and the external
prepositions which has the SWOT and PESTLE (Rehg, 2022). The company opened first store
in the name of penney's. The company expanded its business into another countries after its
success as penney's The following report is based on Primark. It was founded by Arthur Ryan in
1969. Primark. As of now Primark owned 384 stores in 13 countries.
TASK
Perform a SWOT and PESTEL analysis for chosen business.
SWOT analysis is considered as strategic management exercise that is performed by
organisation in order to assess their internal strength and weaknesses. It also helps in evaluating
varied opportunities and threats which are emerging in market (Roshandel, and Sarookhani,
2022). It assists top management in getting a better understanding of their business so that they
can plan strategically for future. It is beneficial for managers of Primark as it aids in evaluating
external factors which further help in gaining competitive advantage. All the factors of SWOT
analysis in relevance with Primark are discussed below:
STRENGTHS Primark is one of the biggest clothing
retailers in the UK. A number of
surveys finds it as the most famous
brand in UK in terms of affordability
and good value for money.
WEAKNESSES
 Primark does not sells its product
online. It tested out e-commerce in
2013 via ASOS website but the
partnership came to an end in 12 weeks.

 Innovative practices- Primark tend to
bring innovative and new products in
the market. Managers of Primark
encourages their designers to bring
something innovative to attract its
existing as well as potential buyers.
 Primark has found itself in the number
of controversies. The UK government
found that it is one of the 260
employers that have paid less
(Ramakrishna, 2022).
OPPORTUNITIES Digitalisation era- Digital channels
have helped business to increase their
reach to a large number of customer.
Primark also have an opportunity to
increase their marketing through digital
channels. Managers can improvise their
website to make the shopping
experience of people more exited.
 Focus on customer segments-
Managers of Primark can concentrate
on segmenting their customers as per
their needs and desires. This exercise
can help them to make their reach
towards untapped markets.
THREATS
 High competition in market- Primark
is facing a high competition in the UK
market form its competitors including
Next plc, Debanhams, John Lewis.
Increasing competition in market
increases the threat of brand switching
and close substitutes.
 Fluctuations in policies- Primark
operates its business activities globally.
Any fluctuations in trade policies of
that country where it is operating can
poses a threat for organisation (Ruël,
2022).
Pestle analysis-
PESTLE analysis is concerned with identification and assessment of numerous macro
environmental forces which have their impact on internal business situations. Efficient
evaluation of these external factors helps an establishment in planning strategically for the future.
This analysis helps in conceptualising information related to macro environment and thus helps
companies to set their targets accordingly. It is beneficial for managers of Primark as it aids in
evaluating potential opportunities as well as threats which can affect business operations in near
future. All the factors of PESTLE analysis in accordance with Primark are discussed below:

 Political factors- includes rules and regulations framed by government, political stability,
administrative system etc of a nation. In UK, political environment is stable which
provides a safe working atmosphere for companies operating there. Political stability and
compliance with framed rules as well as regulations adheres Primark to operate its
functions smoothly. However, fluctuations in tax rates compels managers of Primark to
increase their product's prices which in turn will affect their sales (Wang, 2022). Economic factors- mainly comprises of inflation rates, GDP growth, foreign exchange
etc of a country. In context to UK, due to global lockdown, businesses face varied
drawbacks. This has also decreases purchasing power of individuals. These factors can
create negative impact on business operations of Primark as people are not able to buy
apparels at premium prices. Opening of local stores and closely substitute goods can also
poses as a threat for establishment(Oc, and Toker, 2022).
 Social factors- encompasses of lifestyle, perception, attitude etc of people of a certain
country. In UK, large population are indulgence in their approach. A massive segment of
people spent a large amount of their income in maintaining their lifestyle and status.
These factor impacts positively on business operations of Primark as they are specialised
in offering fashionable and innovative products at premium prices. UK's large population
is poses as an opportunity for Primark as they can target them by bifurcating them into
small consumer segments .
 Technological factors -stresses on new and innovative practices in adoption of advance
technology. UK is considers as one of the leading country which supports establishments
for adopting varied technological advancements. Managers of Primark have taken steps
to improvise their website which proves to be an exiting tool for shopping. Company is
planning to adapt technology transformation programme in order to digitalise its
operations. Using digital methods for operating its activities and frame marketing
strategies enables company to generate more sales as well as profits. Legal factors -are related to adherence of rules and regulations framed for smooth
functioning of establishments. In UK, government has framed laws for establishments
including employment act, minimum wages act, health and safety act and many more.
Managers of Primark were failed to follow health and safety laws as well as they had
been penalised for this. Company was not able to maintain safety and health of its

employees at workplace. However, apart from that organisation is following all the rules
and regulations in order to be free from any legal complications(Ngereja, and Hussein,
2022).
 Environmental factors are principally related to pollution because of industrialisation
and other like activities. In UK, government and many other non-profit organisations
have taken initiatives to curb the pollution and carbon existence. Top management of
Primark have taken initiatives to build green policy to protect the environment. They
have also collaborated with Better Cotton Initiatives in order to adopt sustainability in
their operations.
evaluate how the changes in PESTEL factors has influenced the Opportunities and Threats
business.
As it is ascertained that PESTLE factors will lead to opportunities and threats. Some
factors may lead to opportunities and other may lead to threats. The opportunity and threats are
as below:
Opportunities:
Technological and economical factors are dynamic in nature and it changes from time to
time. Company has to up to date to current technology and should provide better experience to
their customers. Primark also engages in social media to drive customer attention to its product
and stores. And Marks and Spencer use to be the strongest areas in the aspect of business and
manage all the working with proper proportionate. If economical factors change in other country
it will have benefit to expand its operations (Maiorescu-Murphy, 2022).
Threats:
It will also have direct impact on the company as the company have to up to date to the
technology. If company using the outdated technology the customer will suffer and customer will
think to shift on another brand. The economic factors will also have a threat to company as the
economic factor changes in negative manner it will also lead to reduce the sale and also it will
collapse the business. Primark does not have an online presence and now a days customer chose
to prefer online shopping. This will also a threat to Primark.
Critically analyse business by providing Strengths in order to frame and negate Threats
and Weakness with all their Opportunities.

Primark gives customer full satisfaction and in return the customer gets linked to the brand. By
doing this Primark brand image is enhanced and it will reduce the threats.
1. The company launches various products to many countries and they use websites and
social media channels as effectively and efficiently.
2. Primark is maintaining their values and policies to update the management. This manages
and contemplates all the strategies(Jena,and Dehuri, 2022).
Recommend a suitable leadership style
Leadership considered to be the method and the way which helps in guiding others in
order to manage and develop the organisational production. It refers to the leaders attitude when
guiding, motivating, and managing the units of people. Good leaders makes the operations more
effective and in a systematic way. They motivate, guide, communicate others to do the task
properly. Leader provides a vision to each and every people of organisation. It becomes complex
for the organisation to operate without leadership styles. The leadership styles has various
models.
Daniel Goleman has given six styles of leadership which are to be taken by organisational
leaders in order to being competent for their followers. These includes coercive, authoritative,
affliatitive, democratic, pacesetting and coaching leadership styles(Yorke, and et. al., 2022).
 Coercive leadership style is concerned with giving commands and orders to employees.
This is best suited to deal with a difficult employee or to solve problems in a quick way.
Under authoritative leadership style, leaders give organisational objective or goal to their
team members. It is the responsibility of team members to fulfil that goal by any means
they deem fit.
 Affiliative leaders provides a flexible working environment to their followers by
recognising and appreciating their efforts. In democratic leadership style, every team
member is given equal value and they were asked to give their opinions and suggestions
on a specified issue. Leaders create flexible working environment under this style.
 Pacesetting leadership style is concerned with setting good examples by leaders. They
also set high standards for the job to be done by team members.
 Under coaching leadership style, coaches are tend to develop individuals rather than
organisational goals or objectives. These coaches develop individuals in order to gain
excellence in their workings.

 Goleman has described these leadership styles but he did not advocated its compulsion in
organisation. He said that these styles can be used in combination in order to achieve
organisational goals and objectives. In relevance to Marks & Spencer, leaders should
adopt democratic leadership style in order to attain their business objectives depending on
the dynamic business environment.
 Democratic leadership style gives the right to every team member to voice their opinions.
This practice helps Primarkto get innovative and creative ideas for developing their
products.
It is recommended from the above study that if any thing goes wrong in the management
authoritative leadership is very helpful. This leadership gives efficiency for managing team
members. Motivated team members will lead the organisation to the desired goals. This
leadership is considered as most expertise. The company should use this leadership as motivated
team members will work better and they communicate with their leader if anything goes wrong.
Authoritative leadership helps managers to make quick, effective decisions and keep their
employees at their best. It reduces the mistakes, boost productivity and improves decision
making Gongora, and et. al., 2022).
Critically describe Corporate Social Responsibilities also processes for research.
Corporate Social Responsibilities allows the company to be socially more accountable
that can enhance the brand image by helping both the society and the environment. It also
supports in boosting the morale of the employees by corporate responsibility programs. It is also
explained as various policies and practises which are used by the company in order to bring a
positive change in the society. CSR is categorised into four categories that is philanthropic
responsibilities, economic responsibilities, environmental responsibility and ethical
responsibilities. CSR activities of the chosen company that is Mark and Spencer are explained
below-
 The chosen company focuses on building a sustainable future by making commitment in
order to tackle the issues of the society and planet in the future. The five year plan which
is implemented by the company also encourages to use recycled plastic so that it will
further be used for various purposes for example making clothing, home products and
many others.

 The company also make sure to take care of its employees, customers, suppliers,
stakeholders, society and all the people who are associated with the company by
providing the quality products and maintaining the level of trust among the customers.
 The chosen company notices all the sensitive issues of the society and issues such as
waste management, health of people, climate changes, raw material management and
many others (Ekeskär,and et. al., 2022).
 Primark also donates the revenue and returned clothing to the charity that supports
disabled children and it also funds medical research and operates the awareness
campaigns. It also makes donations to the charitable organisations such as by the
support of M&S local stores. This is done in an systematic manner because separate
budget is made for such activities in order to enhance the situation of society, local
community and people.
 It has also implemented some plans that are linked with reducing the use of energy by
using green electricity that can be done by launching various campaigns for the purpose
of helping the customers and employees.
 The company is also aim to use the wood which is certified from a sustainable source and
it also promises to stop dumping the waste to landfill and boosting the green energy for
the betterment of the society. Further, it also makes sure that customers dispose of their
clothing that will reduce the level of wastage by making new packaging form old
packaging
The company also aims to replace the artificial colours with natural colours and by
building more focus on introducing the Food Standards Agency traffic lights and Guideline
Daily Amounts(GDA) product labelling. Company has also reduced the usage of carrier bags
and it also donates the expired food to the charitable organisation
CONCLUSION
From this analysis this is concluded that all leaders along with executives in organisation
have to manage strategic plan. Several quality factors will be affected by market conditions.
There is also a treatment that have been created for SWOT and PESTLE. SWOT and PESTLE
needs to determine the internal and external factors that affect the company in many ways.
Analyse those steps and taking right decision to overcome the affect is the main aim of SWOT
and PESTLE analysis. The leadership style are the procedure that assists the company in making

work in more effective manner. Leadership style assist the work in a convenient manner and
aims to attain the goal in the desired time. Corporate social responsibility helps top develop the
ethical culture and working in ethical areas. CSR leads to increase the company sales and it will
also enhance the image of the company in society.

REFERENCES
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