Introduction
In this unit 1 business environment Primark assignment copy focused the role of the business environment for the organisations operating in UK will be highlighted. The first part will give the details of the general purposes of the different type of organisation relating it with the organisation Primark. Moreover the objectives of the different stakeholders towards the business and responsibilities of the organisation Primark will be focus.
The second part of the report will state the different economic system by relating it with the nations UK, China and Cuba for understanding the output fixation and resource allocation. The economic policies of the Government specially the Fiscal policy and monetary policy along with the competition policy will be highlighted.
The third part of the report will give the understanding of the different type of market structures and market forces in order to fix the pricing and output decisions. At last the formation of Brexit will be related with the context of the international trade and global factors towards the organisations.
Task 1
1.1
An organisation is termed as a people working with leading group with a common intention to achieve the overall business goal. Organisation can be of many types which influence the basic purposes. The common objective is to achieve the goals with a combined effort of the members. Primark is an Irish based private company who is specialised in the fashion products. It is a subsidiary company of Associated British Foods. The main purpose of this company is to provide quality products to the people at a reasonable price in return of a profit (Buckett, 2012).
They have given the licence to the Asian countries like India, Bangladesh and China due to reduce the cost of manufacturing and operations. Thus the motive is profit based as well as minimisation of cost in order to achieve more revenue. The basic objective is to serve the customers effectively with the superior fashion products in the countries like Austria, Germany, France, Belgium, Spain, UK etc.
They do not offer any shares to the public and they have memorandum of Association where the rights and structure of the company is there. Basically this company has a specific hierarchy that clearly defines the responsibility and divisions of the organisations.
PUBLIC SECTOR
Public sector is mainly the organisations which are managed and funded mainly by the concerned Government. For example, National Health Service (NHS) is a public sector organisation that is managed by the four Governments that are Scottish, Welsh, UK and Northern Ireland. 98% of the fund is come from the public taxation and a very small amount is from the patients. The basic purpose of NHS is to deliver emergency care service, GP service, dental service, pharmacy service, hospital services etc. in the form of information and help the organisations to maintain the standard in the health and social care sector. The motive is not profit based rather they are serious to provide quality service to the people at free of cost or sometimes they charge price which is very small amount.
CHARITY
Charity is mainly formed to serve the communities, backward people and emergency service by considering the social welfare. The funds of the charities are managed by the members, volunteers, Governments and private companies etc. British Red Cross Society is the organisation under charity whose mission to provide emergency service, first aid service to the people. The main motive of this sector is to serve the people in order to meet the emergency needs (Red Cross, 2016).
COOPERATIVE
Cooperative is the voluntary association of the people to meet the aspirations based on the economic, cultural and social factors by controlling the business democratically. In this type of organisation, people used to become the member in order to achieve return out of their investments. One of the popular organisations in UK is Cooperatives UK (COOPS) have the basic purpose of promoting and developing the member based business including retail sector, agricultural sector and other business sector and nearly this sector is having the value that is nearly 34.1 billion pound towards the economy (Cooperatives UK, 2016).
1.2
Stakeholders are the part of the business that has a direct or indirect influence towards the successful business of the organisation. They can be the investors, employees, customers, suppliers etc. All the stakeholders have different objectives and influence towards the business of an organisation. Thus the management of the organisation must conduct a Stakeholder mapping in order to understand the power and interest level of the stakeholders towards their business in order to devise strategies for them (Noland and Phillips, 2014). The stakeholder mapping of Primark is shown below:
(Stakeholder Mapping)
There are four dimensions in the stakeholder mapping which are as follows:
- Latents: As per the stakeholder mapping they used to share high power with low interest towards the business. Thus they will be the customerswho are major drivers of the revenue for Primark. The basic objective of the customers will be to extract the best value from the organisation at a reasonable pricing. In this context, the organisation Primark gives their best offerings towards the customers by maintaining quality and design at a reasonable rate (Freeman, 2013).
- Promoters: It is clear from the stakeholder mapping, that promoters are the groups who are having high power with high interest towards the business. Thus they will be the investorsof the Primark who used to lend their fund towards the business for a profitable return. The objective of the investors is to lend their money at a favourable Return on Investment (ROI). In this perspective, the top management of Primark used to conduct meetings and share regular updates to the investors in order to make them aware of the business situations.
- Defenders: From the stakeholder mapping it is clear that defenders used to share less power but high interest. They are mainly the employeesand suppliers of Primark. The basic objective of the employee is to give performances in return of remuneration. On the other hand suppliers will be producing the products for Primark in return of a profit (Freeman, 2013). The management of Primark used to give preference to the employees by providing sound remuneration, training, workplace rights, job security etc. Along with that the suppliers are given wide information about the standard and based in that profit margin is designed.
- Apathetics: They are mainly having less power with less interest as per the stakeholders mapping. They can be the charitable organisations who are being funded by the organisation Primark in order to support the social welfare. On this area, the management has secured some portion of the fund for the NGOs in order to serve the communities.
1.3
Carroll’s pyramid model shows four set of responsibilities that should be considered by the organisation in order to achieve the profit for a long term period. The four set of responsibilities which are important for Primark are shown in a picture form (Carroll’s pyramid model):
- Economic Responsibility: As per Carroll’s pyramid model economic responsibility is to be focused on the activities that should support the organisation to achieve profit for a long term period. Primark as an organisation supports the employment generation directly and indirectly. The suppliers from the Asian and European countries employ several people in order to support the manufacturing process and this way the employment is generated indirectly. Secondly the payment of the taxes, VAT and other duties are contributing the economy of the countries where the organisation Primark is operating their business(Capon, 2015).
- Legal responsibility: In this background obeying the laws, regulations and legislations by the organisation are generally considered. In the perspective of Primark they are maintaining and following the regulations of the Government by considering the health and Safety Act, Equality Act, Data protection Act in order to maintain their goodwill across the market.
- Ethical Responsibilities: These are the responsibilities which are related to the treatment with the employees or suppliers by the organisations. Primark is the organisations who are very much aware of the employee’s rights and safety in the workplace. Apart from that code of conduct is there which is mandatory for the suppliers to maintain in order to remain in the contract. These responsibilities will increase the goodwill of the organisation and able to attract potential employees and suppliers across the world (Harris & Mc Donald, 2014).
- Philanthropic Responsibilities: These are the responsibilities which influence the organisation to contribute in the society in order to maintain a sustainable future. In case of Primark donations to the charitable trust, working with NGOs are observed.
In order to meet the strategies the organisation Primark has undertaken certain responsibilities which are as follows:
- Paying the taxes, VAT and duties of the countries like Austria, Germany, France, Belgium, Spain and UK along with India, Bangladesh and China etc.
- All the employees are selected without any discrimination done based on the gender, religion, race etc. The rights are also protected for the employees in order to enhance their job security
- Sustainable business practices like opening the Green Stores in order to reduce the negative impact on the environment. Building Energy Management System is being adopted to reduced the consumption of the energy at the stores
- Forming the partnerships with the NGOs and training institute in order to safeguard the society as well as increasing the employment opportunities.
- Designing a code of conduct for the suppliers in order to treat the employees fairly under them in the form of working hours and wages.
Task 2
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