This is a distinction example of unit 1- exploring business assignment 1 essay. To compare a profit and not for profit organisation. In this report I have used primark and cancer research. This includes Learning aim A and B.
Assignment A
Introduction
For this summative assignment I have been required to talk about the different features for two contrasting businesses and
how they are different from each other but fit suitably for that type of business. Before I came to the conclusion of my two
businesses I have conducted initial research of several businesses that Walsall council has provided to ensure they both
included different features from each other. I then concluded on 2 contrasting businesses for my report. I have chosen the
businesses:
Primark (profit organisation)
Cancer research Uk (not for profit organisation)
These businesses I have found many contrasting things between the two and gathered comprehensive research of each to
conduct my report.
This assignment will include features such as: business ownerships and liabilities, aims and objectives, relationship and
influences of different types of internal and external stakeholders etc.
[A.P1 Explain the features of two contrasting businesses.]
Business 1- Primark
Features of the business
- Ownership and liability
Primark is a profitable organisation which is owned by Associated British Foods which is one of the largest food
processing and retail companies in the world. They own other large popular brands such as Jordan’s and Ryvita,
etc. Primark is a private limited company with limited liability as they have shareholders. Only shareholders risk
losing their investment. However this is a positive for primark as it means primark can keep their personal assets
and finances protected.
- Purpose
The purpose of Primark is to ensure people who may not be able to afford good quality clothes as much can now
do so due to Primark good quality products at affordable prices. By this, the workers who design the clothes that
Primark sells are often ideas from other businesses who may be on the pricier side, but instead Primark have
made close designs like those clothes for a much more affordable price. Nevertheless, of course the main
purpose they have is to make profit out of all the products they are selling. They have a strategy of selling things
for cheaper in order to make more profit.
- Sector
- As a retail store Primark has incorporated most sectors. They have included primary sectors which has made use
of natural resources. Only a quarter of the clothing it sells is made of recycled or sustainably sourced materials.
Cotton is the main fibre used to make Primark products. Primark is a secondary sector as all the natural recourses
gathered are then manufactured into the clothing and other processed goods that Primark sell. Another sector
Primark use is tertiary sector is the which is the main sector they produce. This is the products that they sell and
services. Recently they have opened a Primark in Birmingham. This is the largest Primark to exist so far, which
has included a barber, café and a place to get your nails done. Another sector you can also consider Primark use,
is the quaternary sector. This sector is where you research and plan how to develop the product. In my research
whilst reading about Primark I have learnt that they research other company’s products and put their own
alternative to it.
- Scope of activities and size
Primark has 398 stores so far and are still planning to expand further. 191 of these stores are in the UK and there
are only 9 other countries which Primark is present in outside of the UK. Nevertheless, Primark is considered as a
large company and has over 70,000 employees currently. They also have 928 supplier factories globally to
manufacture their products which over half are based in China and the rest are spread out into another 27
different countries.
[B.P3 Explore the organisation structures, aims and objectives of two contrasting businesses]
Organisational structure and functional
areas
Primark organisational structure has been
planned out to be a hierarchal structure due to its
various levels of authority. The control is very
narrow making productivity and communication
, slower and less efficient. This makes the company more unresponsive. The company has many different departments to go
through before passing on information. Which is quite complicated and can make rescission making longer. As a large
retailer Primark is better off suited to this big structure as it shows hierarchy of responsibility and shows who has authority
of what. Nevertheless, Primark has also incorporated a bit of matrix structure into the business as well as hierarchy as
individuals usually must report to a manager in their own department. This can consist of more than one person.
The functional areas Primark have been the managing production of goods and services which is to ensure the safety of
others and that the machines are in the right conditions to be working and that the development of a safe working
environment. Another important functional area consists of the finance team, which provides logistics of the revenue
coming in and what kind of products is getting them the most profit. This helps them expand their product selection in the
future and ensure that they are not going bankrupt. The finances also handle the employees' wages. Nevertheless, because
Primark is such a big company and have quite large stores, they require an IT team which manages things like tills and
making sure they operate efficiently and effectively. They also manage the security cameras ensuring no one steals any of
their products.
Business mission, vision and values
Primark's mission statement is “to provide customers with high quality, fashion basics at value for money prices” by this
it is obvious that Primark is intending. To provide high quality stuff to customers at low prices. They are targeting the
majority of the population that usually buys stuff that is high quality just cheaper. Primark's vision is to become a popular
brand with a strong brand presence. They want people to think whenever they talk about Primark to think of them as a
better alternative to something that almost looks the same at double the price. The value of Primark is that they have a
solid commitment to be an ethical business by being a member of the ethical trading initiative (ETI) and have adopted their
code of conduct as well as having cultural diversity emerged into their company. They have included 180 different
nationalities to model and work at for their stores. Nevertheless, Primark has also released a pride range in partnership of
stonewall who is a charity for those who stand with the LGBTQ community. They have donated 20% of sales of the pride
products directly to stonewall. The ethical work that Primark have Included is to make sure wages are fair and working
conditions are safe. In addition to this, they have also got a zero-tolerance policy on child labour.
Aims and objectives
The aims and objectives of Primark is that they won't the public the realise that Primark is a good and reliable company.
And that just because they are cheap does not mean their products are not good quality. They just want the public to have
a wide range of options. To achieve their goal to be the cheapest option to shop for people, Primark. Has set objectives
which is the provide the best possible services and high-quality products to customers at low prices and provide stuff for
every age group for both men and women. In addition to this. Primark have conducted many operational strategies whilst
keeping in mind the competitors that they have.as Primark is aiming to increase customers.
[A.P2 Explain how two contrasting businesses are influenced by stakeholders]
Influences of Internal and external stakeholders
Primark has internal as well as eternal stakeholders, Internal Stakeholders are more closely associated with the company.
This consists of employees and shareholders. They know what is going on within the company and have more knowledge
of Primark as a whole. The external stakeholders are relatively less close to the organisation which consist of customers
and suppliers of Primark.
Internal stakeholders:
Shareholders: owners have the most influencer as they are the ones who come to a conclusion about business
decisions and activities run through Primark's organisation. Nevertheless, they provide funding to the
organisation which helps to fund the starting of the business. Shareholders influence the objectives of Primark.
Managers: managers can give input on recommendations and ideas the influence the activities in an
organisation. They also help and provide employees with knowledge and support.
Employees: employees don’t have much influence on a business however they can provide bad customer service
and assistance which will impact Primark as a bad company, and they also can refuse to work. Which will impact
the productivity of the organisation. In January 2009, Primark was exposed by an undercover BBC investigation
that found one of Primark UK supplier factories, was employing illegal workers and paying some staff just £3.50
an hour, which is well below the legal minimum wage of £4.77 for those aged 18 to 21 and £5.73 for those over
22 which influenced many employees to quit their job and people to not want to work there.
Owners: owners influence a company by making important decisions of the future of the business. As Primark.
May change strategic skills and may change their prices and start becoming more expensive than now. This
would influence the customers which may be. A good or bad thing depending on if customers are still okay with
the price increases.
Trade unions: trade unions are more sectioned pressure groups within an organisation. They influence groups
and employees; they can influence people to go on strikes or protests if there are no working rights within a
company.
Marketing team: the marketing team influence the finances and ensure the cash flow is coming in. they make
sure that money coming in from customers buying their products is more than what primark are buying for
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller amank2005. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.62. You're not tied to anything after your purchase.
