Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 1 – Business Environment
Primark is the renowned fashion designing company offering the innovative fashion products at a lower cost with the help of the supply of their required materials and products from the suppliers from India, Bangladesh, China, and Turkey(Primark, 2015). Based on the functions and the business operations, it can be stated that Primark is the Private limited company. It has the shareholders with the limited liability. The purpose of the business is to offer the requirement of the market in terms of the finished goods or products and to gain the profit from the market to be shared the profit among the limited number of the shareholders. The profit is not shared among the public. Thus, it is recognised as the private limited company.
Out of the three sectors such as Public sector, charity, and the cooperative, it can be stated that the public sector company is the company which use to offer the various governmental services to the entire population of UK(Laegreid & Christensen, 2013). The purpose of the public sector is completely dependent on the offering of the services to the entire population even those are non-tax payers of that received services such as street lights, smooth roads and others. One of the example of the Public sector Company in UK is the Audit commission in UK(Ball, et al., 2014). The Audit commission use to appoint the auditors to all the local authorities in England, and in Wales covering the local government, housing, health community safety, and the criminal justice. Thus, the basic purpose of the public sector Audit commission is to offer the non-discriminated services to be offered to the entire population of UK in an effective manner.
Thus the basic difference between the public sector and the private sector company is the offering of the services for the non-payers / payers and only to the payers for the services or the goods respectively. The profiteared by the public sector company is shared among all bit this does not happen for the private sectorcompany(Mazzucato, 2015).
The key stakeholders of Primark are the Trade Unions- Civil society group, Workers and communities, and the customer groups. The extents that Primark use to meet the objectives of its different stakeholders are as below:
The core responsibilities of Primark are as below:
Thus, the responsibilities such as offering the fair price to the customers, becoming a green organisation, doing the ethical marketing, and maintaining the CSR approaches are properly met by the Primark through their initiatives and activities in an effective manner.
As per the view of Dunning (2012), the international trade is the exchange of the capital, goods, and the services across the cross border countries in the form of the import and the export of the gods and services for the mutual benefit of the cross border nations in an effective manner. On the other hand, the globalization use to reflect the trends of the firms in expanding their global business with the help of the perfect distribution of their offered products and the services to the other markets in the global market along with their local market. Thus, the international trade use to help the organisations in the globalization fact and also use to increase the opportunities by bringing the competiveness for the organisations in a positive manner.
Based on the case scenario, the Britain’s trade with Europe will be affected by Brexit. Thus, as Britain use to export 40 percent of their goods to EU(Theguardian, 2016). Thus, they must have to reach a new trade agreement with the European Union. There are few issues as below:
Thus, with the fair trade agreement, the firms will have a chance to expand their business and also to know the taste and the preference of the new market for the introduction of the product or the service innovation in a large manner. It will also facilitate the enhancement of the opportunities and also to attract the new investors for the further expansion(Hamilton & Webster, 2015). With the diversity maintenance, the firms also will be able to upgrade their existing skills with the help of the technology advancements with the fair trade agreement and the globalization. The perfect access to the new resources, and the perfect access to the unique and quality foods and the services that the local market has also will be possible. The wide ranges of designs, price structure and the taste / prefaces will be come into the picture in a clear form. With the import and export within the local market, the steady growth can be achieved. But with the fair trade agreement and the globalised business concept, the firms will be able to face the internationalreputation and the brand acknowledgement with earning of the maximumrevenue(Hamilton & Webster, 2015).The international trade gives the opportunity to exchange the products otherwise there will be scare choice of products and services for each and every nation.
Globalization is the most important factor to be focused by the entire UK business house for the perfect development of the economic condition. In the globalized economy, it offers the provision to the UK business to make the different parts of a products in different nations and also to get assembled in different nations to get the quality goods in an effective manner(Forsgren & Johanson, 2014). This globalisation of economy use to influence the fact to sell the similar quality products to the global market instead of selling the different products to the different nations. In this globalization of economy, the intentional trade use to play an important role. It use to boost up the UK economy in a large manner. Many of the UK organisations use to operate their business operations to the other counters for the cheap labour and the resources to earn more profit.
In this aspect, the greater market opportunity along with the Global growth also can be expected in UK due to the impact of the global factors in an effective manner. The UK market has the opportunity with their advancement in the technology to conduct their business in an effective manner all over the world. The international marketing trade duties is another important global factor to have an impact on the business organisations. The countries buying the raw materials for other countries should bear the import duty and those are selling their goods to other counties from UK should bear the export duty(Forsgren & Johanson, 2014). The international trade duty in UK is low after the inflation rate. Thus, they can buy and sell ore products from and to the other nations.
The global financial stability is another important globalization factor to have a string impact in an effective manner. The business organisations use the international financial solutions and the trade agreements to reduce tariff. In UK, due to the stable finical situation, the nations can encourage more to invest their money to the further development of the trade. The impact of the Brexit through the trade and investment channels would have most severe impact in UK. The regulatory divergence would increase and will effect on the trade volumes and will also reduce the attractiveness of UK to attract the investors (Forsgren & Johanson, 2014). The overall impact of the Brexit has been mentioned as below:
The EU is a unique economic and the political union between the 28 European countries that together work for the better trade functions the global market (Europa.eu, 2016). To Foster the economic strength, it was created after the Second World War. The EU has delivered peace, the economic development and alsohas raised the livingstandards. The aim of EU was to make the countries economically independent ad more likelyto conflictfree. The policies and the impacts of the EU policies on the UK business are as below:
Fig: UK Goods and Services Exports and Imports since 1980
The UK share of the global good exports is as below:
fig: UK Share of Global Goods Exports
fig: Unemployment rate in UK
Afonso, A. & Sousa, R., 2012. The macroeconomic effects of fiscal policy. Applied Economics, 44(34), pp. 4439-4454.
Alvesson, M., 2012. Understanding organizational culture. London: Sage.
Ambrosini, V., Jenkins, M. & Mowbray, N. e., 2015. Advanced strategic management: A multi-perspective approach. USA: Palgrave Macmillan.
Askar, S., 2014. Complex dynamic properties of Cournot duopoly games with convex and log-concave demand function. Operations Research Letters, 42(1), pp. 85-90.
Ball, A., Grubnic, S. & Birchall, J., 2014. Sustainability accounting and accountability in the public sector. Sustainability accounting and accountability, p. 176.
Ball, M., 2014. Rebuilding Construction (Routledge Revivals): Economic Change in the British Construction Industry. London: Routledge.
Baum, A., Poplawski-Ribeiro, M. & Weber, A., 2012. Fiscal Multipliers and the State of the Economy. London: s.n.
Competitionpolicy, 2016. Centre for Competition Policy. [Online]
Available at: http://competitionpolicy.ac.uk/ [Accessed 16 November 2016].
De Grauwe, P., 2016. Economics of monetary union. USA: Oxford university press.
Dosi, G. et al., 2015. Fiscal and monetary policies in complex evolving economies. Journal of Economic Dynamics and Control, Volume 52, pp. 166-189.
Dunning, J., 2012. International Production and the Multinational Enterprise. London: Routledge.
Economicsonline, 2016. The Common Agricultural Policy. [Online]
Available at: http://www.economicsonline.co.uk/Global_economics/Common_Agricultural_Policy.html [Accessed 16 November 2016].