PESTLE analysis of Primark in UK
Introduction
Every organization provided different strategies to be effective in the market. However, most of the successful organizations admired the importance of analysis in creating their approach to strategies. In an organization that target huge market and have an efficiency in bringing the demands of the market, Primark is still realizing and in-depth analysis that can help them provide long-run benefits.
PESTLE Analysis
Political Analysis pertains to the ability of the organization to adopt or follow on the different governmental initiatives that might affect the performance of the entire firm. The policies established by the government might divert the local priorities of the companies. The government contributes in forecasting the success of downfall of the Primark. The government gradually acts in the changes of monetary and fiscal policies in a degree on how the economy reacts. Government also holds the regulations that should be part of the business’s cycle. The health and safety act, sex discrimination act, disability discrimination act, data protection act, sales protection acts, consumers’ protection act and so on are the several examples act that the organization needed for compliance. In deeper sense, the organization should react in the impact of an increase or decrease in taxation or in the impact of the acts in their business.
Economic Analysis is where the impact of the different economic trends or market changes might appear that usually creates risk in the organization. A strategic decision is mostly assumed in the presence of the uncertainty. Most of the analysis helps the business answer the increase / decrease in interest rates and its impact on businesses or how a recession / boom in the business cycle can affect businesses. The issues that often involved in the economic analysis are the monetary policy and fiscal policy. This measures the strength of the policy to support the business cycle and in the matter of recession. Also, Primark is also recognized as one of the strong business that can contribute a lot in the country’s Gross Domestic Product or GDP. To make the organization able to stand in different economic changes, there should be a strong monetary fund that holds in the effects of recession as much in low exchange rates made by the import and export operations.
Social Analysis is focused on the demographic changes that might affect the influence of the product in the new buying perceptions of the market. The social changes is a strong force for the organization to conduct further research, develop their processes, and craft another product that will earn the trust of the market. In this area of analysis, the taste and preferences of the buying population is on the priority of the business. It there is a newly-marketed product, the organization will surely finds another way to enhance their own creation and be on the leading market once again. This answers the capability of the Primark in different social changes and challenges especially when there are presents of competitors.
Technological Analysis is the ability of the organization to adopt and to use on the latest technological innovation that usually has an idea in helping the performance of the business. There are different technological innovations that might improve the quality of the products or the efficiency of every transaction’s processes. Technologies typically provide help in the nature of the business. Through the use of the technology, the uncertainties that appear in economic and social changes will be minimized. For some other reasons, the technologies can also lessen the different unethical working behavior such as fraud, shoplifting, misconducts, and so on. Through the inventions of different high definition cameras and advanced software, the Primark’s leaders can have the sense of security.
Legal Analysis is the effort of the organization to comply on law such as in terms of tariffs, trading policies, taxation, insurance policies, wages and salaries, and so on. The organizations’ finds the legal aspect connected to the political because most of the laws are created by the government. In terms of legal analysis, there are other issues that the organizations should answer. Most of the revolving issues is the overuse of the labor and maximizing their strength to produce more product which is definitely against the law. Another is on the issue of the consumer protection. Since the business is committed to produce and deliver the demands of the customers, the business should give importance to their rights as buyers. In the legal terms, it emphasizes the importance of the employee-employer relationship, supplier-producer relationship, and the customer-organizations relationship.
Environmental Analysis can be considered as part of the corporate social responsibility of the organization because the organizations should commit in environmental issues. The environmental issues may be also in the relation of ethics. Environment typically correlates in the action of the business’s usage of resource or how the wastes are dispatched. Policies are created to protect the environment such as limiting the use of the resources to avoid exploitations which is a big dilemma for the business especially when there are number of competitors.
Consulted Works:
SDI Greeenstone, 2008. Primark Case study, Lutterworth UK. [Online] Available at: http://www.sdigroupuk.com/files/Case-Study-Primark.pdf. [Accessed 10 Feb 2010].
Sundeep, K., A Brief Guide to the Use of “PESTLE” Analysis. [Online] Available at: http://www.ipfbenchmarking.net/consultancy_dfes/R28%20A%20Brief%20Guide%20to%20the%20use%20of%20PESTLE%20Analysis.pdf. [Accessed 10 Feb 2010].
Credit:ivythesis.typepad.com
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