Business & Environment: Strategic Analysis of Primark in England, UK
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This report provides a comprehensive analysis of Primark's business environment in England, utilizing both PESTLE and SWOT frameworks. The PESTLE analysis examines political, economic, social, technological, environmental, and legal factors influencing Primark's operations, highlighting the favorable political stability and corporate tax rates, alongside economic challenges like inflation. The SWOT analysis identifies Primark's strengths such as a large customer base and ethical programs, weaknesses including quality inconsistency and high competition, opportunities for increasing sales and expanding product ranges, and threats like changing customer preferences and technological advancements. The report concludes with recommendations for Primark to enhance its market position through technological upgrades, promotional activities, quality control processes, and product range expansion. Desklib offers a wealth of similar solved assignments and past papers for students.

BUSINESS AND BUSINESS ENVIRONEMENT 0
BUSINESS AND BUSINESS ENVIRONEMENT
STUDENT NAME
1-13-2019
BUSINESS AND BUSINESS ENVIRONEMENT
STUDENT NAME
1-13-2019
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BUSINESS AND BUSINESS ENVIRONEMENT 1
Contents
Task 2.........................................................................................................................................2
Introduction................................................................................................................................2
PESTLE analysis........................................................................................................................3
SWOT analysis...........................................................................................................................5
Recommendations......................................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11
Contents
Task 2.........................................................................................................................................2
Introduction................................................................................................................................2
PESTLE analysis........................................................................................................................3
SWOT analysis...........................................................................................................................5
Recommendations......................................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

BUSINESS AND BUSINESS ENVIRONEMENT 2
Task 2
Introduction
An organization is working in an environment, through which it gets effected and is affecting
the environment as well. In today’s world, where companies are going international to gain
opportunities, the requirement to study the business environment increases. Before entering
into a new environment, it is important for the company to analysis the external environment
of the entering nation, and internal environment of the self, in order to understand their own
capability to enter into the market. For a detailed analysis of these criteria, an organizational
case will be considered in the report further (Gernmain & Meek, 2015).
PRIMARK is an Irish based private limited company, retailing in fast fashion goods for men,
women, kids, and homeware. The company has already invested in various nations with more
than 350 stores and plans to enter into many other countries (primark, 2018). The report will
focus on the trading of the company in England. For which, the external business
environment through PESTLE analysis and internal business environment through SWOT
analysis will be included in the report (primark, 2018).
Task 2
Introduction
An organization is working in an environment, through which it gets effected and is affecting
the environment as well. In today’s world, where companies are going international to gain
opportunities, the requirement to study the business environment increases. Before entering
into a new environment, it is important for the company to analysis the external environment
of the entering nation, and internal environment of the self, in order to understand their own
capability to enter into the market. For a detailed analysis of these criteria, an organizational
case will be considered in the report further (Gernmain & Meek, 2015).
PRIMARK is an Irish based private limited company, retailing in fast fashion goods for men,
women, kids, and homeware. The company has already invested in various nations with more
than 350 stores and plans to enter into many other countries (primark, 2018). The report will
focus on the trading of the company in England. For which, the external business
environment through PESTLE analysis and internal business environment through SWOT
analysis will be included in the report (primark, 2018).
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BUSINESS AND BUSINESS ENVIRONEMENT 3
PESTLE analysis
1. Political factors
This is a most important factor while analyzing the external environment, the being
the political system of the country has a major effect on business and business
decisions. The United Kingdom is a developed nation and considered to be a very
attractive nation for foreign direct investment. One of the major aspects of this factor
is political stability, which is one of the big strength of the nation, and this creates the
environment beneficial for the company to trade. Moreover, another aspect is a
corporate tax, which will affect the investment and business decision of the company,
which is 19% of the United Kingdom (gov.uk, 2018). Although in budget 2016, the
authorities had announced to reduce the corporate tax, which is advantageous for
Primark, which will be expected to reduce by 2% from 2020. Therefore it can be said
that the political factor is in favor of the trading decision of Primark in England
(gov.uk, 2018).
2. Economic factors
These factors of the nation are related to the economic condition of the country, which
is essential to observe while trading in the country. One of the major strength of the
United Kingdom related to this factor is that the nation is ranked at fifth position in
the worldwide economy, according to the GDP provided by World Bank in 2017.
Nevertheless, the economy had faced the recession period in 2008, but the
government was able to recover this period quickly. Some negative aspects observed
were the challenges faced by British households in 2017. The prices were started
rising at high rates in the shops, which eventually increased the importing cost of
goods and services. Some of the aspect to study in this factor includes the inflation
rate which rose in 2017 to 3.1 percent. Moreover, the key interest rate was also
PESTLE analysis
1. Political factors
This is a most important factor while analyzing the external environment, the being
the political system of the country has a major effect on business and business
decisions. The United Kingdom is a developed nation and considered to be a very
attractive nation for foreign direct investment. One of the major aspects of this factor
is political stability, which is one of the big strength of the nation, and this creates the
environment beneficial for the company to trade. Moreover, another aspect is a
corporate tax, which will affect the investment and business decision of the company,
which is 19% of the United Kingdom (gov.uk, 2018). Although in budget 2016, the
authorities had announced to reduce the corporate tax, which is advantageous for
Primark, which will be expected to reduce by 2% from 2020. Therefore it can be said
that the political factor is in favor of the trading decision of Primark in England
(gov.uk, 2018).
2. Economic factors
These factors of the nation are related to the economic condition of the country, which
is essential to observe while trading in the country. One of the major strength of the
United Kingdom related to this factor is that the nation is ranked at fifth position in
the worldwide economy, according to the GDP provided by World Bank in 2017.
Nevertheless, the economy had faced the recession period in 2008, but the
government was able to recover this period quickly. Some negative aspects observed
were the challenges faced by British households in 2017. The prices were started
rising at high rates in the shops, which eventually increased the importing cost of
goods and services. Some of the aspect to study in this factor includes the inflation
rate which rose in 2017 to 3.1 percent. Moreover, the key interest rate was also
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BUSINESS AND BUSINESS ENVIRONEMENT 4
increased in November 2017, which makes the cost of the Primark to do business in
this country (bbc, 2018).
3. Social factors
These factors include the aspects related to population, consumption and other social
aspects of the United Kingdom. It was observed that the consumer market of UK is
very large. Where the population recorded national statics was to be 65.6 million in
the year 2016, among whom all the age groups are there, 2.4% were above the 85
years age, and 18% being the age above 65, and the majority of people are still 65
age. After this analysis, it can be said the for the fashion brand like Primark must
decide the product line according to this factor while investing this nation (Arg,
2014). Moreover, the residents are more towards the approach of social class, with a
multicultural population. Another aspect is education, and the United Kingdom is
ranked in the third position in this aspect, which shows that the customers are smart
enough and the company must strategize their business plan accordingly (Trivedi,
2016)
4. Technological factors
This is a major factor for a nation like the United Kingdom, as the nation is very much
influence and adopting upgraded technology. This nation is considered to be one of
the technologically advanced countries, and various new technology has been
implemented by the companies as well, which Primark must consider, and use
advanced technology while reaching out to the customers. This sector has a major
contribution towards the economy of UK. The company could include the use of
technology while providing offers, billing system, payment system, and online selling
(telegraph, 2018).
5. Environmental factors
increased in November 2017, which makes the cost of the Primark to do business in
this country (bbc, 2018).
3. Social factors
These factors include the aspects related to population, consumption and other social
aspects of the United Kingdom. It was observed that the consumer market of UK is
very large. Where the population recorded national statics was to be 65.6 million in
the year 2016, among whom all the age groups are there, 2.4% were above the 85
years age, and 18% being the age above 65, and the majority of people are still 65
age. After this analysis, it can be said the for the fashion brand like Primark must
decide the product line according to this factor while investing this nation (Arg,
2014). Moreover, the residents are more towards the approach of social class, with a
multicultural population. Another aspect is education, and the United Kingdom is
ranked in the third position in this aspect, which shows that the customers are smart
enough and the company must strategize their business plan accordingly (Trivedi,
2016)
4. Technological factors
This is a major factor for a nation like the United Kingdom, as the nation is very much
influence and adopting upgraded technology. This nation is considered to be one of
the technologically advanced countries, and various new technology has been
implemented by the companies as well, which Primark must consider, and use
advanced technology while reaching out to the customers. This sector has a major
contribution towards the economy of UK. The company could include the use of
technology while providing offers, billing system, payment system, and online selling
(telegraph, 2018).
5. Environmental factors

BUSINESS AND BUSINESS ENVIRONEMENT 5
The business decisions are not only related to the business environment but also
depends upon countries environment as well, this include the aspects like climate
conditions, tourism and much more. The activities in the economy affect largely over
the environment, the government is up to reduce the negative impact of corporate over
the environment. This could be one of the reason to create sustainability plan by the
Primark while trading in UK. The corporate social responsibility of the company
could include this factor in order to gain advantage (Read, 2013).
6. Legal factors
The last aspect of the PESTLE analysis is Legal factors of the nation. If an
organization is working in a nation, it has to follow the laws and justice as per the host
country, which makes this aspect very relevant to analyse in order to trade into a
nation. The aspects that are studied under this factor are the employment rules or act,
the act in order to help and protect the rights of the employees of the organization is
the employment act 1996. Some other protected rights are holiday pay, minimum
wage rate, sick pay, paternity and maternity leave. Moreover equality act 2010 is also
applied in order to protect people from discrimination (Hayran, 2016)
SWOT analysis
Strengths
Large customer base
Employees associated
Ethical programs
No advertisement cost
Goodwill
Weakness
Quality inconsistency
Competition
Opportunities Threats
The business decisions are not only related to the business environment but also
depends upon countries environment as well, this include the aspects like climate
conditions, tourism and much more. The activities in the economy affect largely over
the environment, the government is up to reduce the negative impact of corporate over
the environment. This could be one of the reason to create sustainability plan by the
Primark while trading in UK. The corporate social responsibility of the company
could include this factor in order to gain advantage (Read, 2013).
6. Legal factors
The last aspect of the PESTLE analysis is Legal factors of the nation. If an
organization is working in a nation, it has to follow the laws and justice as per the host
country, which makes this aspect very relevant to analyse in order to trade into a
nation. The aspects that are studied under this factor are the employment rules or act,
the act in order to help and protect the rights of the employees of the organization is
the employment act 1996. Some other protected rights are holiday pay, minimum
wage rate, sick pay, paternity and maternity leave. Moreover equality act 2010 is also
applied in order to protect people from discrimination (Hayran, 2016)
SWOT analysis
Strengths
Large customer base
Employees associated
Ethical programs
No advertisement cost
Goodwill
Weakness
Quality inconsistency
Competition
Opportunities Threats
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BUSINESS AND BUSINESS ENVIRONEMENT 6
Increasing sales
Product range
Sportswear range
Expansion
Change in preference
Dynamic industry
Technological change
Strengths
Large customer base – the customer base of the company is large, which reflect the
customer relationship of the company is very good. This will also be helpful in
building relationship with customers in international market as well.
Employees associated – there are more than 70,000 employees working for Primark,
this is beneficial for the company to recruit employee in United Kingdom as well. The
reason being the relation with employees, and their rights are considered, which is the
reason for satisfaction among the employees working in this company.
Ethical programs – the company has already done various programs, and the business
ethics are very much followed by Primark by every individual of the organization.
This will let the company to create the image of the company in international market,
and brand positioning as social responsible company (primark, 2018).
No advertisement cost – the company is majorly depended upon the word of mouth
promotion, and no major promotional activities are conducted by the company. This
let the company to increase the profit per unit, as the cost of promotion is not included
in the product.
Goodwill – since the company is a well reputed and one of the global leader in this
industry, it indicates positive goodwill of the company according to the customer
perception. The goodwill and brand name will be helpful in company to conduct
Increasing sales
Product range
Sportswear range
Expansion
Change in preference
Dynamic industry
Technological change
Strengths
Large customer base – the customer base of the company is large, which reflect the
customer relationship of the company is very good. This will also be helpful in
building relationship with customers in international market as well.
Employees associated – there are more than 70,000 employees working for Primark,
this is beneficial for the company to recruit employee in United Kingdom as well. The
reason being the relation with employees, and their rights are considered, which is the
reason for satisfaction among the employees working in this company.
Ethical programs – the company has already done various programs, and the business
ethics are very much followed by Primark by every individual of the organization.
This will let the company to create the image of the company in international market,
and brand positioning as social responsible company (primark, 2018).
No advertisement cost – the company is majorly depended upon the word of mouth
promotion, and no major promotional activities are conducted by the company. This
let the company to increase the profit per unit, as the cost of promotion is not included
in the product.
Goodwill – since the company is a well reputed and one of the global leader in this
industry, it indicates positive goodwill of the company according to the customer
perception. The goodwill and brand name will be helpful in company to conduct
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BUSINESS AND BUSINESS ENVIRONEMENT 7
business and attract new customers in UK, and other nations as well (Hunt & Bicen,
2017)
Weakness
Quality inconsistency – since the production is large, the company tries to keep the
quality standards high and according to the international trading benchmark, but the
issue of inconsistency in this aspect remains with the production of this company
Competition – the competition is very high in this industry because the shifting cost
for the customer is not very high. The only way to retain the existing customers are
providing wide range of products with latest fashion and design. Moreover, if a
customer feels any change in quality they can immediately switch to another brand
(firstcarbonsolutions, 2018)
Opportunities
Increasing sales – one of the opportunity for the company to grow is increase in sales
through various sales promotion and tactics. Although the recent sales figures are
attractive of the organization due to economies of scale, low pricing strategy of the
company and high standard quality products
Product range – another opportunity for Primark is to increase the existing range of
the product, this will be helpful in gaining more customers and retaining the existing
one, because in such a fashion retailing industry the more products are offered to the
customer, the satisfaction level increases among the customers (Bull & Sitas, 2016)
Sportswear range – the company can deal in another product line, say sportswear.
This is because the sportswear industry is growing at a large pace. Therefore, Primark
can gain advantage while investing in product range of sportswear while conducting
business in UK.
business and attract new customers in UK, and other nations as well (Hunt & Bicen,
2017)
Weakness
Quality inconsistency – since the production is large, the company tries to keep the
quality standards high and according to the international trading benchmark, but the
issue of inconsistency in this aspect remains with the production of this company
Competition – the competition is very high in this industry because the shifting cost
for the customer is not very high. The only way to retain the existing customers are
providing wide range of products with latest fashion and design. Moreover, if a
customer feels any change in quality they can immediately switch to another brand
(firstcarbonsolutions, 2018)
Opportunities
Increasing sales – one of the opportunity for the company to grow is increase in sales
through various sales promotion and tactics. Although the recent sales figures are
attractive of the organization due to economies of scale, low pricing strategy of the
company and high standard quality products
Product range – another opportunity for Primark is to increase the existing range of
the product, this will be helpful in gaining more customers and retaining the existing
one, because in such a fashion retailing industry the more products are offered to the
customer, the satisfaction level increases among the customers (Bull & Sitas, 2016)
Sportswear range – the company can deal in another product line, say sportswear.
This is because the sportswear industry is growing at a large pace. Therefore, Primark
can gain advantage while investing in product range of sportswear while conducting
business in UK.

BUSINESS AND BUSINESS ENVIRONEMENT 8
Expansion – another aspect of gaining opportunity is expanding business in various
other nations. Since, after a time span the business is stable and the domestic market
is exhausted, it better to invest in new market to gain customers for the business
(mbaskool, 2018)
Threats
Change in preference – the preference of the customers can change in future related to
the fashion, or way of shopping. Moreover, the customer can switch to another brand,
if they found their design better or higher quality is observed by the customer (Head,
2017)
Dynamic industry – this industry related to apparel and fashion is very dynamic, and
changing very rapidly. This is the reason people avoid to invest in this industry,
specifically in international market. The risk of loss is very high sue to this reason
(Head, 2017)
Technological change – the technology degraded very fast, and since UK is one of the
technological advanced nation, therefore the company has to keep technology
upgraded in order to sustain in the market (Boone, 2016).
Recommendations
Technological up gradation – the technology is an aspect which is very relevant to
adopt for a country like United Kingdom. For the use of technology, Primark must
accept different modes of payment, like credit and debit card, mobile wallets, direct
transfer, cash, and many more. Moreover, for promoting more technology, the
company must have the online platform for customers to purchase good through more
user friendly website or application. Moreover, the delivery system must be improve
Expansion – another aspect of gaining opportunity is expanding business in various
other nations. Since, after a time span the business is stable and the domestic market
is exhausted, it better to invest in new market to gain customers for the business
(mbaskool, 2018)
Threats
Change in preference – the preference of the customers can change in future related to
the fashion, or way of shopping. Moreover, the customer can switch to another brand,
if they found their design better or higher quality is observed by the customer (Head,
2017)
Dynamic industry – this industry related to apparel and fashion is very dynamic, and
changing very rapidly. This is the reason people avoid to invest in this industry,
specifically in international market. The risk of loss is very high sue to this reason
(Head, 2017)
Technological change – the technology degraded very fast, and since UK is one of the
technological advanced nation, therefore the company has to keep technology
upgraded in order to sustain in the market (Boone, 2016).
Recommendations
Technological up gradation – the technology is an aspect which is very relevant to
adopt for a country like United Kingdom. For the use of technology, Primark must
accept different modes of payment, like credit and debit card, mobile wallets, direct
transfer, cash, and many more. Moreover, for promoting more technology, the
company must have the online platform for customers to purchase good through more
user friendly website or application. Moreover, the delivery system must be improve
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BUSINESS AND BUSINESS ENVIRONEMENT 9
by providing customers, with their goods at their door step (Amabile & Rigolizzo,
2015).
Promotional activities – the company use only word of mouth method for promoting
the brand and product. For better sales and increase in data base, the company can use
some promotional tools as well like sales promotion through discount coupons, and
contests. Moreover advertisement can be helpful in creating brand awareness in
another nation to conduct business and create goodwill.
Quality check process – the quality of every set produced must be checked before
offering to the customer. For this a monitoring team for quality check must be created
by the company to have higher quality standards and consistent in nature (Kolk, 2016)
Increase in product range – the product range of the brand Primark must be increased
so as to attract new and more customers. The recommendation for sportswear range
can be provided to the company, the reason being the high growth opportunities in
this range of goods, as the market is growing rapidly in UK for sportswear (primark,
2018).
by providing customers, with their goods at their door step (Amabile & Rigolizzo,
2015).
Promotional activities – the company use only word of mouth method for promoting
the brand and product. For better sales and increase in data base, the company can use
some promotional tools as well like sales promotion through discount coupons, and
contests. Moreover advertisement can be helpful in creating brand awareness in
another nation to conduct business and create goodwill.
Quality check process – the quality of every set produced must be checked before
offering to the customer. For this a monitoring team for quality check must be created
by the company to have higher quality standards and consistent in nature (Kolk, 2016)
Increase in product range – the product range of the brand Primark must be increased
so as to attract new and more customers. The recommendation for sportswear range
can be provided to the company, the reason being the high growth opportunities in
this range of goods, as the market is growing rapidly in UK for sportswear (primark,
2018).
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BUSINESS AND BUSINESS ENVIRONEMENT 10
Conclusion
To conclude the report, it can be said that Primark is part of fashion retail industry of Ireland,
which is have more than 350 stores, in various nations. This organization was taken to
understand the business environment and its relevance in the report. Business environment is
important to analyse in order to sustain and trade in particular nation. In the report, the focus
was over Primark, which is dealing with business environment of England, UK.
For this purpose, the initial step was to assess the external business environment for which
PESTLE analysis was conducted. The political stability indicated the benefit for the company
to invest in the country. Moreover, through economical factor a problem of inflation was
observed. Moreover, considering the technological factors, which shows high advancement in
the nation, it is suggested to the company to invest in technology up gradation while
conducting business. For internal business analysis, the strength and weakness of the
company were identified for gaining opportunity and avoid threats.
Conclusion
To conclude the report, it can be said that Primark is part of fashion retail industry of Ireland,
which is have more than 350 stores, in various nations. This organization was taken to
understand the business environment and its relevance in the report. Business environment is
important to analyse in order to sustain and trade in particular nation. In the report, the focus
was over Primark, which is dealing with business environment of England, UK.
For this purpose, the initial step was to assess the external business environment for which
PESTLE analysis was conducted. The political stability indicated the benefit for the company
to invest in the country. Moreover, through economical factor a problem of inflation was
observed. Moreover, considering the technological factors, which shows high advancement in
the nation, it is suggested to the company to invest in technology up gradation while
conducting business. For internal business analysis, the strength and weakness of the
company were identified for gaining opportunity and avoid threats.

BUSINESS AND BUSINESS ENVIRONEMENT 11
References
Amabile, T. & Rigolizzo, M., 2015. Entrepreneurial creativity: The role of learning processes
and work environment supports. The Oxford handbook of creativity, innovation, and
entrepreneurship, p. 61.
Arg, 2014. Business Environment United Arab Emirates. [Online]
Available at: http://www.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-
SEA/PDF/6469-eng.pdf
bbc, 2018. UK inflation rate at near six-year high. [Online]
Available at: https://www.bbc.com/news/business-42320052
Boone, A., 2016. Preparing for the ingestion of SWOT data into continental-scale river
models. In EGU General Assembly Conference Abstracts, Volume 18, p. 11068.
Bull, J. & Sitas, N., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework. Ecosystem Services, 17(1), p. 99.
firstcarbonsolutions, 2018. Top Environmental Problems and their Impact on Global
Business. [Online]
Available at: https://www.firstcarbonsolutions.com/resources/newsletters/july-2015-top-
environmental-problems-and-their-impact-on-global-business/top-environmental-problems-
and-their-impact-on-global-business/
Gernmain, R. & Meek, W., 2015. Entrepreneurial self-efficacy and firm performance in
challenging environments: Evidence from the franchise context. Journal of Developmental
Entrepreneurship, 20(1), p. 1550004.
References
Amabile, T. & Rigolizzo, M., 2015. Entrepreneurial creativity: The role of learning processes
and work environment supports. The Oxford handbook of creativity, innovation, and
entrepreneurship, p. 61.
Arg, 2014. Business Environment United Arab Emirates. [Online]
Available at: http://www.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-
SEA/PDF/6469-eng.pdf
bbc, 2018. UK inflation rate at near six-year high. [Online]
Available at: https://www.bbc.com/news/business-42320052
Boone, A., 2016. Preparing for the ingestion of SWOT data into continental-scale river
models. In EGU General Assembly Conference Abstracts, Volume 18, p. 11068.
Bull, J. & Sitas, N., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework. Ecosystem Services, 17(1), p. 99.
firstcarbonsolutions, 2018. Top Environmental Problems and their Impact on Global
Business. [Online]
Available at: https://www.firstcarbonsolutions.com/resources/newsletters/july-2015-top-
environmental-problems-and-their-impact-on-global-business/top-environmental-problems-
and-their-impact-on-global-business/
Gernmain, R. & Meek, W., 2015. Entrepreneurial self-efficacy and firm performance in
challenging environments: Evidence from the franchise context. Journal of Developmental
Entrepreneurship, 20(1), p. 1550004.
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