Primark Company

Primark Company

Primark Company

Introduction

Primark is one of the leading brands in the retail sector of United Kingdom. Over the years company has been able to create its customer value and today it has 187 stores in major economies of the world. The company provides variety of products for women's, men, children and house wears. The company has to face immense competition in the UK retail sector from not only the local retailers but also from the international clothing brands entering the UK market. In order to stay competitive the company has adopted information technology for running their e-commerce operations. The company has been able to maintain its position in the market by fulfilling the needs of the customers, by offering their customers special offers or promotions and encourage discounts on bulk buying. The company has to develop strategies, design different policies and adapt different measures in order to respond the changes occurring in the business environment and structure of the market. The following report will provide an analysis of the performance of Primark Company during free or command economy and after the changes occurring in the business environment through economic or government policies.

Discussion

The following report will take into consideration two scenarios in order to analyse the performance of Primark Company.

2.1 Benefits of Operating in Free and Command economic System

There are three economic systems free, command and mixed economic system. The most popular among the two are command and free economic system. Every government according to their flexibility adopts an economic system in order to control the economy of a country. Both the economic systems have certain advantages for companies like Primark. Firstly, the advantages faced by the Primark Company within a planned or a command economy are: in a command economy both the private and government owned companies are under the ownership of the government and have to follow their directives regarding production, prices and etc. The greatest advantage of command economy is that financial downturns and inflation are unable to affect the performance of the company. The organization like Primark will have to produce at a reasonable level and thus will not have to invest extra resources into the firm for production. Primark Company will have the advantage of remaining unaffected by the recessions or any financial crisis like happened in 2008. Thus the profits of the firm will not be affected. In the long-run command economic system ...