Pest Evaluation of Primark Stores Limited

Organisations And Environment

PEST Analysis Upon Primark Stores Ltd

Items

Introduction 1 Economic Elements 1-2 Technical Factors two to three Social Elements 3-4 Political Factors four Conclusion your five Bibliography 5-6

Introduction

This kind of report can look at the macro environmental elements affecting Primark which operates in the high-street retail clothes sector. Primark offers chic clothing for the cheap by using a number of department shops throughout the UK & Ireland in europe, Holland and Spain. Having its main target market being fashion-conscious under-35-year-olds, it is the second most significant clothing merchant in the UK. The business enterprise environment can be ever-changing, in fact it is crucial that most organisations analyse the environmental elements accurately to enable them to adapt to alterations that may occur. If the environment is not analysed correctly, or in the event not enough attention is paid out to watching environmental adjustments then the company could miss vital chances and belong to massive menace. This survey will give attention to a PEST examination; a PEST analysis is a in depth environmental examination that allows organisations to implement strategies which will respond to every environmental elements that they are facing. A PEST evaluation consists of 4 factors; Political, Economic, Social, and Technological. Primark, just like all organisations will have to manage all these environmental factors in some way. This survey will now get into detail considering how each of these factors impact the high-street selling clothing sector, in particular Primark, and how they have or may respond to such issues.

Economical Factors

The biggest economic factor that has influenced Primark recently, as with most businesses is a recession. This will definitely prevent Primark's functionality, as the recession ensures that their potential consumers could have less disposable income, and therefore will be not as likely to spend vast amounts of money on clothes. However as Primark is certainly in the cheaper end of the high-street retail clothes sector very low much more inelastic income flexibility of demand than some of its garments competitors; which means that it could have a huge advantage more than some of it is higher priced competition. This is because consumers will have less of your budget to spend. But fashion-conscious ladies will still need to look great; and with Primark giving chic apparel for less costly prices, a number of these women could see Primark since an attractive approach to their garments purchases. The second economic component to be brought up is the cost of energy. In the summer of 2008, the price tag on oil reached $147 a barrel (the highest they have ever been). Primark may have noticed big increases in their transportation costs when the price of olive oil was this high. Primark relies very heavily about transportation as it has just two circulation centres, 1 being located in Leicestershire, UK and the additional being located in Naas, Netherlands. As it distributes to all above the UK & Ireland, Netherlands, and Italy it will knowledge heavy gas costs, and heavy shipping and delivery costs. Therefore , the high price of essential oil will increase costs and lower into Primark's profit margins. Unless of course it decides to pass the price onto the customer, in which case it might experience a decrease in revenue. Another important economic factor to check out is the decreasing of interest prices by the Lender of England. ‘The rates of interest...

Bibliography: Dhariwal, N. (2009) Primark Associated with UK Sweatshops [Internet], BBC Information. Available coming from: [Accessed 7 April 2009]

M2 Presswire. (2006) TelecityRedbus: Online selling is only 50 percent the story with regards to UK internet activity; 35% increase in UK internet shopping revenue since September 2005; On the web shoppers are expected to reach twenty four. 9m this year[1]; Figures from TelecityRedbus demonstrate the united kingdom 's developing dependence on numerous online solutions, including govt services, bank, travel and bill paying out as well as a variety of entertainment providers [Internet], M2 Presswire. Available coming from [Accessed on 7 April 2009]

Monk, D. (2009) Low interest rates cost Notts local authorities ВЈ7. 6m; While home loan payers are celebrating the lowest interest rates inside the history of the lender of Britain, Notts local authorities will lose ВЈ7. 6m on the savings the coming year. Nottingham Night Post, 17 February, l. 10.

Primark Stores Ltd. (2009) Primark [Internet]. Available from: [Accessed 7 The spring 2009].

Smithers, R. (2008) National: Trend: Ethical problems left at home as demand for cheap clothes surges: Primark and Asda lead way in contacting masses willing to wear latest designs. The Mom or dad (London), 31 January, s. 9.

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