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Diploma in Business
Unit Number and Title
Unit 1 – Business Environment
Business environment is a vast area where the organization works. The business environment consists of internal environment as well as external environment where the business operates. The internal environment of organization includes the management and the employees and the external environment includes the society, in which the organization works, customers for whom the business works and the stakeholders to whom the business is liable to. The stakeholders are the most important part of business strategy and the organization should keep the stakeholders interested in the business for the betterment of the organization. In this Unit 1 Business Environment Primark Assignment copy 2, various organizations of different categories and their purpose of operations have been discussed. Primark is one of the organizations, situated at UK and the primary business of the company is dealing in the retail industry operating its business in Australia, Belgium, Germany, France, Spain and Ireland. The report presents the purpose of the organization and study has been conducted about the stakeholders and the business environment in which it operates. The report also focuses on how the businesses understand the external environment full of challenges and the impacts of the factors on the operation of the business. In the present world where the businesses have become global, the Business Environment Primark Assignment copy 2 also explains the global factors that affect the working of the organizations. The report includes the explanation of the economic systems which are followed in the countries like Cuba, UK and China. The different market situations such as monopoly, oligopoly is also explained concerning the factors of price determination and the outcome decisions of the organizations.
Primark is an organization which launched in the year 1969 and situated in UK. Primark is a subsidiary company of Associated British Foods group and deals in the retail industry of fashion garments. Primark runs around 238 branches across the countries like UK, Europe and Ireland. Primark’s head office is situated at Ireland. The company indulges in the business of manufacturing of clothing. The purpose of the organization is customers oriented business as it not the manufacturer of its own goods rather it gets the goods manufactured and got supplied as per the needs and demands of the customers. It has the pricing policy which offers the product at low prices and focuses on the target customers.
Charity organizations: The charity organizations are the non-profit organizations which are the focused on the well-being of the society and with the goal of providing several services for the society. NSPCC is a non-profit charity organization working in UK for the benefits of children. The organization helps the parents and the families through counseling for the safeguards of the children. NSPCC works across the whole UK and operates around 40n service centers. The core purpose of the organization is to helping the children and parents with the issues related to mental health. The purpose of NSPCC being a charity organization,
Stakeholders hold the important position in the development of the business and economic growth of the company. The stakeholders are the people who are responsible for building the sustainable position of the organization in the market. There are two types of stakeholders in an organization like Primark which are the internal stakeholders consisting the employees, management of Primark as well as external stakeholders which are the customers, government policies, society and the investors of the company. The stakeholders have an impact on the operations of the company and for the betterment of the business, company need to understand these stakeholders and satisfy them considering their needs. The extent to which Primark meet the objectives of its different stakeholders are;
Internal stakeholders of Primark
Customers: Primark has the policy of customer centric approach. The company gets the manufacturing of the clothing done from the suppliers after analyzing the preferences, needs and demands of the customers. After sales services are also provided by the company to make the customers satisfy with the company.
External Stakeholders of Primark
The organization runs in society and for the society, thus the major responsibility of an organization is to operate in an ethical environment considering all the factors of the internal as well as external environment of the organization. The organization has to keep the interest of all of its stakeholders and should be responsible for its every action. Primark being an organization surrounded with the business environment has to fulfill certain responsibilities towards the society and the people associated with the organization. Some of the responsibilities of the company are;
For the fulfillment of these responsibilities, Primark has taken several steps and formulated various strategies. Some of the strategies of Primark in meeting its responsibilities are;
Market forces are the factors which determine the profit generated by the organization. There are two prominent factors of market and they are demand of the commodity and the supply of the commodity. Demand refers to the willingness of the customers to buy a commodity at a given price and in a particular time frame. Supply, on the other hand, refers to the quantity of goods which the producer is willing to sell at a given price in a given time frame. The market forces have an impact on the shaping of the organizational responses to the demand and supply. The organizations keep on changing the policies and strategies according to the business environment. The increase in demand and supply, decrease in demand and supply relates directly to the change in the pricing policies of the organization. when the market is flooded with the demand of the commodity then the organization can bring changes to its pricing policies and increase the prices of the products so that the organization can gain greater revenue and also to control the demand in the market. Similarly, when there is increase in the supply of the goods in the market as compared to the demand then the organization may decrease the prices so that more sales can be generated. The organization may also bring changes in the production process as in high demand it can increase the production level and with the increase in supply it can control on the production. On the other hand, if the demands are decreasing in the market then the organization may lower the prices to attract more customers and increase the supply. When supply decreases then it will increase the production of the commodity. An example can be taken of a commodity like new brand of protein drink has been launched by the organization and the demand of the drink has increased tremendously, then it may impact the responses of the organization to hike the price of the commodity as a result of increased demand (Stockemer, 2012).
The organizations are surrounded with several factors and these factors are the external as well as internal factors of the organizations. The cultural environment of the organizations shapes the behavior of the workplace. In the organizations present in the global world, various cultures are found and people from different backgrounds are coming together in the same organizations. The cultural diversity which is seen in the organizations affects the behavior of the organization and the responses of the company towards the environment. The coming of people from various backgrounds and cultures brings the diversity in skills, capabilities and the innovations in the business of the organizations. The production capacities can be increased and the connection of the business to the outer world on a global platform can become possible. The language barriers with the international clients of the company can come to an end and with the help of wider business connections the reputation of the company is built up in the market. The advancement in the technology can also be achieved with the cultural diversity and advanced services can be provided to the customers. The organizations like Primark, which have its business in different countries can be benefitted with this kind of cultural environment ion the organization. The customers of different countries can be entertained with the diverse staff of the organization. The communication becomes possible and the barriers in communication can be put at bay. With the culture of having interpersonal communication in the organization the work environment can be benefitted with better understanding of the policies and goals of the organization. The cultural environment in the organization brings lots of opportunities for the business and the efficiency and the effectiveness of the business increases on a rapid phase. The behavior of the organization largely depends on the ethical practices of the organization. If the cultural environment of the organization is healthy, then it results in the high level of performance of the employees and which increases the productivity. Strong leadership also motivates the employees to work in the direction of the organizational goals and promotes the environment of the teamwork. The cultural environment also focuses on the accountability of the members of the staff and the roles and responsibilities are distributed in the organization in order to make the policies clear to all (Brewer, 2014).
The organizations operate its businesses in the business environments which can be the internal business including the employees and the management of the company as well as external environment which may include the customers, suppliers, government, investors, trade unions etc. These factors form the part of the stakeholders of the company who are the most important asset for the company and the success of the business is dependent on these stakeholders. The company need to focus their efforts on the fulfillment of the interest of these stakeholders and strategies should be prepared in order to satisfy the stakeholders. The report has explained the purpose of the organizations. Study has been conducted on an organization named as Primark, a company having a business of retail in clothing and with the head office in Ireland. The purpose of Primark has been explained, responsibilities and the strategies which the company has made for the stakeholders are discussed in the report. The report also explained the economic systems operating in the countries like Cuba, UK and China. Fiscal and monetary policies have also been described and the impact of these policies is shown on farming and the housing businesses in this report. The report also consist the study of various types of markets situations, namely perfect competition, monopoly, oligopoly and duopoly and how these markets effects on pricing. Demand and supply also plays major role in the organizational policies and the shape of behavior of the organization from the cultural environment in organization. report also focuses on the international marketing trade related to the UK business organizations and impacts of global factors on UK. The impacts of European Union on the business of UK business organizations.
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