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1751 Downloads1 I Published: 17 Dec ,2019
Business environment is considered as an effective and efficient part for the organization. It determines with the internal as well as external situation of the market which highly affects the functioning of the business. Thus, in the present time with the development of countries, it has become important for the organization to develop with an efficient market analysis so as to evaluate the actual position of the industry (McGovern, 2014).
It is been seen that factors involved in the business environment are having high impact on the performance of the company. Further, in this report Primark PLC company is been taken for developing the analysis. It is a retail outlet which serves with many things to the customers. Moreover, in this goals and targets of the firm are been determined in a detailed manner. Further, the different policies such as monetary and fiscal for many countries are been stated efficiently. In this the structure of the company is studied for setting up with the prices and output decisions for it. At the end, it includes the EU and BREXIT problem is been stated as it is of the major issue faced in UK.
1.1 Different types of organizations availing in the market
There are large number of firms which are established to serve the products and services to the customers (Fernando, 2011). Further, they are been segregated in different sectors which are having there own aims and objectives for there companies. The following sectors are been stated in an efficient manner:
Primary PLC comes under the public sector company which means that the functioning of it is in the hands of the government. They are highly responsible for making the decisions regarding the purchase and sales of the products (Gottheil, 2013). Furthermore, there main objective is to develop with customer oriented approach and serving goods as per there preferences.
1.2 Determining the manner in which Primark meet the objectives of stakeholders
To start up with a company, they need to acquire with large number of stakeholders which are highly involved in the proper functioning of the organization. Thus, it is very crucial to understand with the needs of them and serve them with greater satisfaction level. Moreover, they are playing major part in making the decisions for the company. Further, following are the major stakeholders which are involved in organization are:
1.3 Responsibilities of Primark PLC and there strategies
The company needs to develop with there activities by proper planning. This will involve with fulfilling the needs and responsibilities of all the stakeholders in an efficient manner. Thus, this develops with the need to formulate with the policies and strategies ensuring that the demands of all the people are achieved. Further, following are the major responsibilities for Primark:
2.1 Economic system of different countries
For every country there is different economic system which determines the regulations and legislations for the businesses. They are developing with the trading policies by evaluating the availing conditions of the country. Thus, it will determine the rules for distributing the goods and services to the different places.
In China they are following socialist market economy in the country. This means that the people living there are free to make there decisions as per there need. Further, by analysing it is been seen that China is one of the largest economy in the world. Moreover, they are adopting with the customer centric approach to serve with the goods to the people. It is been transited from socialist economy to the socialist market economy which means that the investors and businessman are allowed to earn more and more profits but under government control. Further, several changes took place in a proper manner (Jones and Vagliasindi, 2013).
In UK, capitalist economy is been followed in the economy. But, they adopt with a mix of both American and European system. They are been serving as fifth position in the world in terms of high economy. Further, there are several privately owned firms which which are doing good in there field. Moreover, only few sectors such as health and education sector are been managed by the government sector.
In Cuba, they are adopting with planned economy under which the government is ruling on the industries and labour forces. In it, around 80% of Cuba's works under government owned industries and 20% in private companies. Legal authority is having the authority for providing with different facilities such as free education, programs for entertainment and food. Furthermore, it is focusing to serve with higher foreign investment in country.
2.2 Impact of fiscal and monetary policy
In every country they follow with different set of fiscal as well as monetary policy. Furthermore, fiscal policy means that the use of money done by the legal authority and invest them to have a positive influence on the economy of the country (Joseph and et.al. 2013). Thus, this situation occurs because they need to control several factors such as unemployment rates, taxation and many others which need to managed at the proper time to ensure the betterment of the country. Further, it may have negative effect on the economy if they are not controlled properly at a proper time.
Moreover, by developing proper analysis it is been found that with the investment made by the government will have increase the employment opportunities and reduce the taxation rate by a greater amount. Furthermore, they take the decision for making the investment in different sectors such as in hospitality, education, health etc. Further, this policy is having a great effect on the farming and housing sector. Thus, they get positive and negative impact according to the availing situations of the market. Further, to control with the situation, government make high investment to stabilize the growth rate of the country (Lihitkar, 2013).
In contrast to this, monetary policy is an effective process which is been determined by the central bank that are liable for the control of supply chain and the rotation of the money across the market. In context to this, they are mainly targeting the inflation rates and currency determination in the country. Further, with this policy, it may not be said that the farming and housing sectors are affected by it.
Moreover, from the data collected it can be analysed that with the stabilization of the prices, it will have a negative impact on the availing economy in the country. In case of housing, when the interest rates are been increased than the prices of the real house prices.
2.3 Identifying with the competition policy and regulatory mechanisms in UK
With the era of globalisation, there are large number of companies emerging in the industry for serving the goods to the customers. Further, due to this reason it enhances with the competition level among the companies.
Thus, it is important for the firms to develop with unique products and marketing policies so as to attract with large number of customers towards there organization. Moreover, the government has developed with the competition policy to curb with the abuse of monopoly and protect with the rights and policies of private as well as public sector. This policy will ensure that the rights of consumes are also taken care of properly (Alcidi and Gros, 2011). Thus, the following are the major policies in context to competition level determined by UK.
Competition Act 1998: It is determined to as one of the important reform that has made to acquiree the improvement in the trading conditions availing in UK with other countries. This act has highly helped to stabilise with trading between UK and Europe with the protection of traders from monopoly abuse.
Competition Appeal Tribunal: It comes under the section of Enterprise Act 2002 and was developed to listen the appeals and actions which were taken against the law in different sectors.
Office of Fair Trading: It is considered as an independent body which was developed to protect the people as well as competition law and has now become the economic regulator of UK.
Competition Commission: This was a body set up for investigating markets, mergers and is a non departmental organisation.
Enterprise Act 2002: This Act was an improvement and change made to the competition act. This Act led the Office of Fair Trading a body independent from the government (Dickinson, 2013).
3.1 Determining how the pricing and output decisions in different market structures
In the economy, there are several markets which are availing to serve with the goods and services to the customers. Thus, under each market they are having there own set of values and pricing strategies for there companies. Some of them are been explained in detail below:
Perfect competition is a market structure in which there are many buyer and sellers for the same good. It may only differ in there brand names or quality. Further, under this individual companies are having limited control over the pricing and in the market as every company is sustaining and leading in there own manner (Evans, Stonehouse and Campbell, 2012). Thus they have make a joint decision for setting up the prices for there goods.
In this customers are having large number of choices to choose with there product so it is important for company to come up with effective marketing strategy to attract the customers. Primark PLC is included under this as there are large number of other retail outlets which are selling with same products.
Monopoly refers to the market structure in which there is single seller who is serving many people with there goods and services. It is availing with high control over the market as they are the single firm which are producing with a particular product. Thus, they may set up with the prices as per there needs and also seeing the demand for it. But it is very sensitive in nature as with the increase in the prices will highly have a negative impact on the sales volume of the company (Gibbon and Sliwa, 2012).
Duopoly is considered to be next market similar to the oligopoly. In this there are mainly two major firms which are having high influence in the market. In this, they are free to make the decisions as only two of them are there which are serving with similar products an there are large number of customers for the same. The appropriate example under this is Amazon and Apple which developed with concept of e-book.
Oligopoly is the market structure in which there are some sellers which are serving with the things which have some similarities within them. The decision for price is taken by applying various strategies. The example of computer operating system shows oligopoly feature of market where windows and apple use to dominate (Gottheil, 2013).
3.2 Determine how demand and supply shapes the organization
From the analysis made on the industry, it is been found that the market forces have a great importance in shaping with the demand and supply with serving with the goods and services to the people. In the long run, the reaction given by the companies have a higher impact on the brand image and the profit margin of companies. For evaluating with the appropriate amount of demand and supply, the organization mainly develops with the efficient research which help them to evaluate with the needs and requirements of the customers.
In case of Primark, they are efficient enough in stating with the adequate amount of demand in the future market and this help them to produce with the products accordingly. They are effective in distributing with the goods at proper time to appropriate people (Haigh and Brubaker, 2010). Further, it is serving as a good sign in the increase of the profit margin of the company to a greater extent.
For example, in some stores of Primark, they are facing losses because of inappropriate calculation made about the customer’s demand. As a result of this, they are either leaving the customers with empty handed or leave their business overstocked as no one is interested in buying the stuff supplied by them. Thus it also affects the brand image of the company. Further, the relationship between market forces as well as organization’s response is important in ensuring the success of the firm and to satisfy the customers.
3.3 Determining how the business and cultural environment help in shaping the behaviour of Primark
Business and cultural environment is having a greater influence in determining with the behaviour in the company. Further, there are mainly two major factors which have a great impact on the sustainability of the business in the market. It mainly involves economic as well as non-economic factors. Moreover, in the former refers to the different policies, systems etc. which are been taken into mind for the achievement of the goal for the company.
Furthermore, the later one there are many factors such as social, technological, legal, natural and others which need to be considered while developing with the policies of the company. Primark is having large number of outlets at various places, this develops with the need of evaluating with the economic system of that particular place and than develop with the strategies according to it (Halbert and Ingulli, 2014). Further, it is also crucial for the company to consider with the non-economic factors so as to serve the customers with the best of products and services which gives higher level of satisfaction to them at a greater extent. Thus, they need to evaluate with the latest technology which can help the organization to give higher assistance to the customers.
Moreover, it also important for Primark to make sure that the legal terms which are been determined by the legal authority of the defined place must be considered for better results. This will assist the organization to complete with there activities legally. In addition to this, it becomes the duty of the organization to make sure that they are not harming the nature in an manner.
4.1 Significance of international trade to UK businesses
In the market, there is a higher importance of international trading in the industry. This is due to the reason that in the country they cannot produce with all the goods on there own so they need to import some of the goods from other countries. Thus, it started up with the concept of international trading among different countries. Furthermore, there are various benefits of international trade which are been stated as under:
4.2 Impact of global factors on UK
By evaluating from the market it is been stated that with the development in the economy, it has enhanced with the number of opportunities for the companies. Thus, they can develop with the business and earn high profits to attain a greater market share. There are several global factors which on a greater level and have a impact on the functioning of the business:
It is been seen that UK is adopting with BREXIT, this is a negative sign for the country as they will not be able to go for trading among EU countries easily as it is becoming independent country.
4.3 Impact of policies of EU on UK businesses
EU is having a greater level of power in all the countries which are included under it. They are having the authority to develop with the rules and regulations for trading. Further, all the countries are having the rights to go for free trading among the countries. There is no tax or any other regulation which can hinder them for international trading. Moreover, it has a higher influence on the companies of UK by spending and taxation law, spending and directive and also providing with subsidies for supporting the companies (Aras and Crowther, 2011).
This will assist them in enhance with the job opportunities for the people. hey have been provided with rights that all the EU countries can trade between themselves without any kind of barrier. If the companies are having license they can easily import or export their goods to different countries. National authorities are responsible for monitoring the activities of the business organizations. Further, the directives are been implemented in the national legislation effectively.
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From the above report, it can articulated that every firm needs to evaluate with the environment factors availing in the market to grow the business to a greater extent. Thus, Primary must identify with the factors which are highly having there impact on the functioning of the company's activities. Further, the privately owned as well as public owned sectors are been determined and there objectives to be fulfilled.
Moreover, with the analysis of this, it has been found that each organizational structure has its own set of targets and goals which are to be achieved by them. Market forces have a higher impact on the decisions taken by the company in respect to the pricing as well as the development of the output. Furthermore, in the end the policies regarding the international trading is been stated. Thus, the term BREXIT and its impact on UK gives the clear view of the trading system in it.
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