One way of considering the impact of businesses upon society is to view all of the groups affected by the behavior of a business as stakeholders. The stakeholders in a business are likely to include customers, employees, shareholders, suppliers, government, and local communities. Businesses have tended to be influenced mainly by customers, employees and shareholders. Increasingly, however, other groups are affecting business behavior. For example, some businesses will only supply their products to other businesses that have an ethical or environmental policy. It is suggested that businesses need to have a greater social responsibility to groups beyond those immediately involved in the business. The way in which businesses respond to issues such as health risks from pollution may depend on their ethics. Ethics are the values and beliefs which influence how individuals, groups and societies behave. The ethical behavior of businesses is , to some extent, controlled by laws and regulation. It is possible that a business following an ethical policy may: -attract customers and employees who agree with its policy;
-have to change its operations to fit in with this policy, for example approving certain suppliers; -have to set a policy for all the business in areas such as recruitment and marketing.
There are certain advantages for businesses in behaving in an ethical or socially responsible way. Increasing numbers of consumers are taking into account a firms behavior when buying products. Firms with an ethical approach believe that they will be more able to recruit well qualified and motivated staff. In addition, ethical firms argue that they are able to retain their staff better if they adopt a more caring approach to employees. Firms which behave in an ethical manner believe that their employees are more committed to their success as a result. They may be prepared to work harder to allow the businesses to achieve its aims. Ethical behavior can result in an increase in costs for a firm, An ethical firm may, for example, be forced to turn down cheaper supplies from a firm which act unethical. Firms may be forced to turn down profitable business due to their ethical stance. When a firms overall profitability comes into conflict with its ethical policy, problems may result. Some suppliers will only supply products to businesses that meet ethical criteria.
Product: Primark mainly has fashionable clothing's, and always moving with the trend. You can describe their products as having style, quality and affordable prices all rolled into one.
Place: Primark sells to its customers through tis own shops (from what i know).
Price: Primark uses cost leadership strategy, where they differentiate themselves from their customers on the basis of their very low costs. Primark has super competitive prices.
Promotion: Primark im guessing since they aim on having low cost, they would not have any advertisements published. But the low prices attract customers fast, and customers may spread the word around to others.
P.E.S.T factors are always very influential in a companies running and trading. Primark believe they are a very ethical company and do not suffer from bad press about slave labour or ‘sweat shops’ abroad making clothes for very little money, with economic changes recently people are now making more money than ever but prices of basic living are increasing rapidly and Primark do believe they cater for this market of affordable and fashionable clothing.
If you look at the business (Primark) prices, you would notice that the products are very cheap, ask your self why is it so cheap, the answer might be that these products are probably handmade. BBC (part of the community) showed the extremely poor conditions and low rates of pay of workers in Primark supply chains. It found child labour, some of which were in India, producing their clothes, this is considered as a weakness of the company...
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