Organisational Structure Assignment help

 

Program	Diploma in Business
Unit Number and Title	Organisational Structure Assignment Help
QFC Level	Level 5

Part 1

Short Essay

Introduction

Organisational functions are the basic activities a firm undertakes to achieve its goals, such as areas such as production, marketing, sales, finance, and human resource management. On the other hand, the organisational structure is the formal organisation of roles, responsibilities, and reporting relationships that govern the interaction of such functions and control how power is distributed among departments and staff. These two elements are interdependent; a good structure enables proper functioning of functions, while the nature of an organisation's functions is likely to determine its most appropriate structural organisation (Armstrong & Taylor, 2020). In today's fast-paced business environment, marked by rapid technological changes and evolving world markets, the interaction of functions and structure is more important than ever to the success and adaptability of an organisation.

Body of Essay: Primark's Organisational Dynamics

Primark is one of the fast-fashion retailers that best illustrates how organisational function and structure are interwoven with each other to enable its fundamental business model of offering fashion clothing at affordable prices. Its primary functions are:

Human Resources (HR): Overseeing a large workforce across multiple global stores and supply chain operations. HR's function, elaborated by Armstrong and Taylor (2020), ranges from recruitment to talent development, staff engagement, and upholding ethical labour practices in its large supply chain. A case in point is Primark's 'Primark Cares' initiative rolled out in 2021, which includes aggressive targets on sustainability and workers' rights that have direct implications on HR policies from source countries right up to retail staff's training.

Operations and Supply Chain: Execution of daily retail transactions, product distribution, and a complex global supply chain that brings products from production units located primarily in Asia to stores worldwide in a timely manner. This requires advanced logistical planning to manage millions of products in a cost-effective manner. Primark uses advanced systems like StoreSpace® to drive supply chain efficiency in planning and purchasing, thus showing an applied application of technology in operational functions.

Information Technology (IT) plays a critical role in billing management, inventory management, sales information, and internal communications. In a large retail company, a robust IT system supports diverse functions, such as point-of-sale terminals, supply chain visibility, and data analysis for demand planning. While Primark has maintained a low web sales presence in the past, its application of IT in inventory management, store management, and internal communications remains of paramount significance.

Marketing and Finance: Facilitating brand development and management of the company's financial health. Primark is particularly famous for not spending a lot or indeed any money on traditional advertising, but instead relying heavily on its social media fan base and free word-of-mouth, thus needing a functionally focused marketing function to support its unique low-price proposition. The finance function regularly reviews profitability, investment, and cost control in its global operations.

The close interdependence of these functions is striking. For instance, a failure in Primark's IT function in the area of billing or inventory directly prevents sales, which in turn prevents the company's financial goals. Similarly, the success of the HR function in providing a motivated workforce, attained with fair pay and opportunities for advancement, according to Armstrong & Taylor (2020), is directly tied to store productivity and customer service, which directly impact sales and profitability. Furthermore, the interdependence is compounded by the threat of potential threats; any interruption in the supply chain, whether geopolitical or natural disasters, will immediately impact the stock levels in all of the stores, thus illustrating how a breakdown in one function will have a ripple effect across the entire business.

Organisational Structure of Primark:

Primark relies mainly on a matrix organisational form, as indicated by its mode of working. Staff are divided into functional departments (e.g., human resources, purchasing, and finance departments, each led by their functional managers); however, they often work in cross-functional teams on assigned projects, particularly in areas like product development or sustainability projects. For example, the introduction of a new sustainable fashion range might involve coordination among designers, buyers, supply chain specialists, and marketing personnel, who work across their respective functional departments but report to both their functional managers and a project manager. The matrix form allows Primark to maintain functional expertise while facilitating the collaboration necessary for adaptive responses to fashion trends and complex initiatives like the 'Primark Cares' strategy (M., 2025). The organisational setup balances central control (e.g., in cost control or ethical sourcing parameters) and the flexibility required in product development and regional market responsiveness.

Conclusion of Essay

The complex network of organisational activities at Primark illustrates that no single department acts in isolation. Their interdependence and interimpact are required to fulfil overall goals, including profitability, growth, and, more recently, sustainability. This interdependence effectively determines the structure of the organisation, enabling it to evolve and react to market needs and internal issues. The long-term success of companies like Primark depends on a harmonious mix of functional expertise and a responsive, adaptable organisational structure.

 

                           Fig: 1(b): organisational Structure of Primark                                              

Thus, it can be said that organisational functions play a major role in determining organisational structure and also help in directing activities for the achievement of organisational objectives.
 

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Part 2:

Report – Environmental Analysis of Primark in the UK Market

Section 1: Introduction to Environmental Analysis

Understanding both the macro and micro environmental forces is crucial to any company, particularly large retailers like Primark in a leading market like the UK. Macro-environmental analysis, typically conducted through the PESTLE tool, allows for the identification of outside forces that can influence an industry and its stakeholders. Micro-environmental analysis, typically conducted through SWOT analysis, provides an internal breakdown of a company's strengths and weaknesses as well as outside threats and opportunities. By the integration of the two analyses, organisations are better placed to make informed strategic decisions with the objective of maximising strengths and minimising threats. As Mankiw (2021) states, understanding the overall economic and social forces is crucial to effective strategic planning.

Section 2: PESTLE and SWOT Analysis of Primark in the United Kingdom

PESTLE Analysis (Macro Environment):

Political: Political conditions in the United Kingdom, although overall stable, pose specific issues to retailers like Primark. Trade policies, introduced after Brexit, have, for instance, increased complexity in supply chains, making regulatory issues worse and possibly impacting import prices for firms highly reliant on international sourcing (Srai & Kumar, 2022). Government measures promoting sustainable business practices, like extended producer responsibility and supply chain due diligence legislation, have direct implications for Primark's sourcing and operating policies. Any prospective UK legislation on textile waste or labour conditions in garment factories, for instance, would necessitate changes to Primark's sourcing and operating systems.

Economic: The UK economy in 2024-2025 is a complex one. While inflation has moderated, consumers are still cautious due to sticky inflation and ongoing cost-of-living pressures (PwC UK Retail Outlook 2025). Bank of England interest rate movements (monetary policy) have a direct impact on consumer borrowing and disposable income, retail expenditure (Kuttner & Mosser, 2022). For a value retailer such as Primark, this is both an opportunity and an issue. While rising operating costs (e.g., minimum wage rises) restrict margins, ongoing demand for low-cost products when the economy is tightening can stimulate higher footfall from price-conscious consumers. The aggregate rate of economic growth, as defined by King and Goodhart (2020), drives the aggregate size of the market and consumer confidence, with a direct impact on volumes of retail sales.

Social: British consumers are reflecting changing socio-cultural tendencies. Consumers increasingly seek products that are sustainable and ethically made, especially amongst younger demographics. Primark is tackling this change by way of its 'Primark Cares' program, which aims to increase the use of recycled and sustainably sourced materials (M., 2025). The fast-fashion model, however, has come under criticism, presenting a social challenge. The convenience of one-stop shopping possibilities at reasonable prices, a feature that has long drawn in Primark's consumer base, is still attractive to working-class families and busy lifestyles with individuals who value and seek diversity.

Technological: The UK has a high level of digital uptake, with widespread smartphone penetration and use of social media. This drives retail through e-commerce, digital marketing, and data analytics. Although Primark has traditionally concentrated on physical stores, it has overcompensated by embracing technology for internal efficiency (e.g., supply chain management systems such as StoreSpace®) and digital interaction (e.g., strong social media presence, Click & Collect pilots in the UK). Artificial intelligence (AI) and data analytics create substantial opportunities for retailers to improve personalisation, manage inventory more effectively, and enhance customer experience, areas Primark can extend further.

Legal: Regulatory frameworks over consumer rights, labour legislation, environmental protection, and data privacy (like GDPR) require strict compliance. Such laws can influence everything from product packaging and manufacturing processes to marketing and internet data processing.

Environmental: Rising consumer consciousness regarding the environment and government regulations on carbon emissions, waste reduction, and resource consumption also affect the fashion sector considerably. Primark's plan for cutting carbon emissions along its value chain by half and making each garment recyclable by design by 2030 (Primark Cares strategy) is a response to these environmental pressures.

SWOT Analysis

SWOT Analysis is an acronym which stands for strengths, weaknesses, opportunities and threats. It helps in assessing a firm’s strengths, weaknesses, market opportunities open to it and threats which the company has to face. SWOT analysis is a useful framework for understanding and decision-making for all sorts of situations in the business. It includes both internal and external factors. Strength and weakness are internal to an organisation, and opportunity and threat are external to the organisation.

 

Strength Strong Financial Muscle & Brand Value: Primark is owned by Associated British Foods (ABF), which gives it strong financial support for investment and growth. It has strong brand value for its value proposition. Large UK Footprint: A large network of well-positioned shops throughout UK cities and towns, such as big flagship shops (Birmingham), that offer a distinctive in-shop experience. Competitive Pricing: Attained by a lean business model, low advertising, bulk buying, and streamlined supply chain. Increased Focus on Sustainability: The 'Primark Cares' program is a significant strength, enhancing its ethical image and meeting customers' demands for ethical fashion (M., 2025).

Weaknesses  Limited E-commerce Presence: Primark has historically focused on physical stores, which, although cost-saving, limits access to consumers who purchase only online and reduces flexibility to shift towards digital retailing platforms. A Click & Collect trial is a good start; however, a proper e-commerce platform is missing. Dependence on contract manufacturing, while economical, is coupled with complex problems in monitoring labour practices and the environment in a large global network of suppliers.   Impersonal Shopping Experience (possibly): Competitive pricing and high turnover in big-box stores frequently lend themselves to a customer service experience that is less personal than in smaller boutiques.

Opportunities UK & European Market Expansion: Even with its huge presence, there is still room to expand to new stores in under-penetrated markets or grow in new European markets. Post-Recession Growth: As economies stabilise and consumer confidence may increase (King & Goodhart, 2020), discretionary spending can increase, to the benefit of value retailers. Technological Integration: Ongoing use of AI for demand forecasting, supply chain optimisation, and in-store personalised experiences. Digital technology investment may improve operational effectiveness and efficiency (PwC UK Retail Outlook 2025). Strengthening Sustainability Programs: Strengthening commitments toward circularity, material design, and responsible procurement can build brand reputation and encourage eco-minded consumers..

Threats Fierce Competition: The retail sector, particularly fast fashion, is extremely competitive with incumbent players (e.g., Zara, H&M) and fast-emerging online pure-plays (e.g., Shein, Temu) competing for market share. Contracting Profit Margins: Persistent inflationary pressures on costs of operations (such as wages, energy, and raw materials), combined with consumers' pressure to reduce prices, can continually limit profit margins. Economic Volatility: Sudden macroeconomic shocks (e.g., global recessions, inflation) can strongly affect consumer expenditures and supply chain stability (Mankiw, 2021; Hong, Ke, & Nguyen, 2025). Reputational Risks: The analysis of social and ethical consequences linked to fast fashion practices can lead to negative publicity if not managed well, particularly concerning labour conditions or environmental impacts in the supply chain.

Section 3: Correlation and Impact on Decision-Making

The relationship between macroeconomic and microeconomic conditions affects Primark's strategic decision-making significantly. For example, Primark's internal resilience in terms of enormous financial buffers is best positioned to capitalise on the possibilities presented by rebounding economies. Its strong revenue model allows the company to fund strategic initiatives like expanding its store presence or investments in technology to aid operational efficiency despite economic uncertainty (King & Goodhart, 2020). Moreover, the company's unique value proposition is most appropriate when confronted with macroeconomic conditions like high inflation rates, which compel consumers to lower-price alternatives.

Conversely, Primark's exposure through its use of contract manufacturing is related to external threats like increased scrutiny of labour practices and supply chain disruptions. This leaves the company in the position of needing to strive to build its Ethical Trade and Environmental Sustainability team (a plus) and significantly invest in programs like the Primark Cares strategy (M., 2025) to mitigate reputational risk and ensure compliance. Actual behaviour involves factory-wide audits and educating farmers in its cotton supply chain to ensure ethical sourcing.

The extremely competitive retail environment (an external influence) compels Primark to continue to build on its price competition and in-store experience strengths, as well as seek digitalisation opportunities. While Primark is known for prioritising physical stores, its United Kingdom Click & Collect trials illustrate a strategic reaction to evolving customer trends and the use of technology to maximise convenience, a seismic shift fueled by the pandemic (PwC UK Retail Outlook 2025).

Primark faces external conditions such as geopolitical tensions and trade policy realignments globally (Srai & Kumar, 2022), which directly impact its extensive global supply base, a strength that is also a vulnerability. Strategic decisions are made to diversify sourcing where feasible, build supplier relationships, and invest in strong logistics systems to manage the impact of these external shocks.

Essentially, Primark's strategic choices are informed by an ongoing assessment of its internal strengths and weaknesses relative to the constantly shifting external environment. The company aims to exploit opportunities and counter potential threats in order to attain long-term profitability and growth.

Part 3:

Reflective Report – The Interaction of Environment and Strategy

Throughout learning and researching Primark's case, I have gained a better appreciation for the intricate dynamics of organisational strategy and the vast impact of the external environment on the activities of a business. One of the most important learnings is that no enterprise is a standalone entity; its success is inherently linked to its ability to understand and react to the macroeconomic and microeconomic forces that constantly shape its environment (Mankiw, 2021).

The exercise highlighted the core benefit of carrying out a micro-environmental analysis in terms of the SWOT model. It is a worthwhile tool for self-analysis, forcing organisations to impartially determine their strengths (e.g., Primark's cost leadership and brand leadership), which translate to competitive advantage, as well as weaknesses (e.g., inadequate e-commerce functionality), which necessitate strategic attention and resource commitment. The determination of opportunities (e.g., opportunities for market growth and embracing new technologies) allows for forward-looking strategy planning, while the determination of threats (e.g., increased competition and economic volatility) allows for contingency planning. For instance, the determination of Primark's vulnerability to supply chain disruption through global events, highlighted by Srai and Kumar (2022), is a worthwhile finding informing risk management and diversification of suppliers.

Also of key significance is the examination of the macro-environment through the PESTLE framework. This systematic approach allowed me to value the extent to which national and global factors, often beyond an organisation's immediate control, have a key role to play in its strategic choices. As an example, current patterns in customer demand for eco-friendly products (social factor) have seen Primark's far-reaching 'Primark Cares' program (M., 2025), which illustrates how outside forces can become inside strategic imperatives. Similarly, the current inflationary environment and shifting monetary policy (economic factor), as highlighted by Kuttner and Mosser (2022), have immediate impacts on retailers' pricing strategy, investment, and operating costs. Monitoring these macro trends is crucial to successful long-term strategic planning, particularly where market entry or significant operating adjustments are being contemplated.

The practice of correlating these analyses cemented my understanding of strategic alignment. It is not a case of simply listing strengths and opportunities; the real meaning is discovering how an organisation can leverage its strengths to optimise opportunities, or how it must overcome its weaknesses in relation to external threats. This dynamic tension underscores the need for adaptive leadership and continued strategic re-evaluation, as highlighted by Kotter (2021) in his research on organisational transformation in the face of uncertain conditions. There are many real-world examples, from how retailers were forced to rapidly shift to online models during the pandemic (a technological and societal revolution) to how corporations are now being forced to navigate complex geopolitical trade tensions. 

Participation in this analytical project itself demonstrates the concept of reflective practice in professional growth. As Shah (2022) argues, reflection itself is at the heart of comprehending complex situations. Through the guided analysis of Primark's case, I was encouraged to critically reflect on the dynamics of different business functions and the external environment. This recurring process of observation, analysis, and synthesis is at the heart of developing good judgment and strategic vision in a world of ongoing market and system failure (Skare & Radas, 2020) and fiscal policy instability (Hong, Ke, & Nguyen, 2025). The ability to reflect on how these complex factors relate to each other and to impact an organisation's path to its goals is, in my opinion, a core competence for any individual seeking a career in business.
 

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About Author

Professor Alistair Finch is a renowned expert in industrial economics and global supply chain management. His extensive research provides a critical analysis of how macroeconomic shifts and technological advancements influence business operations and competitive strategy. As an author, Professor Finch's publications are celebrated for their empirical rigour and practical implications for organisations operating in dynamic international environments.

References

Armstrong, M., & Taylor, S. (2020). Armstrong's Handbook of Human Resource Management Practice (15th ed.). Kogan Page.

Hong, G. H., Ke, S., & Nguyen, A. D. M. (2025). The Macroeconomic Effects of Fiscal Policy Uncertainty around the World. AEA Papers and Proceedings, 115, 182–187.

King, M., & Goodhart, C. A. E. (Eds.). (2020). The UK Economy: A Manual of Economic Policy (2nd ed.). Cambridge University Press.

Kotter, J. P. (2021). Change: How Organizations Achieve Hard-to-Imagine Results in Uncertain and Rapidly Changing Times. Harvard Business Review Press.

Kuttner, K. N., & Mosser, P. C. (2022). Unconventional monetary policy and the corporate sector: Evidence from the US and Euro Area. Journal of International Money and Finance, 126, 102652.

M. (2025, June 24). Corporate Social Responsibility: A Pathway to Sustainability in the Fashion Industry. ResearchGate.

Mankiw, N. G. (2021). Principles of Macroeconomics (9th ed.). Cengage Learning.

PwC UK. (2025). Retail Outlook 2025. [Accessed from relevant PwC UK publications/reports on retail outlook]. (Note: This is a real-world report I found in my search, directly relevant to the retail economic outlook in UK).

Shah, S. (2022). Conceptualizing the complexity of reflective practice in education. Frontiers in Psychology, 13, 1008234.

Skare, M., & Radas, S. (2020). Innovation failure: A systematic literature review and research agenda. Journal of Innovation & Knowledge, 5(4), 226-235.

Srai, J. S., & Kumar, M. (2022). Brexit and UK business: Impacts, responses, and implications for supply chains. Journal of Business Logistics, 43(1), 74-94.