P5

Topics: Inflation, Economics, Monetary policy Pages: 3 (1070 words) Published: February 26, 2015
The business organization I have chosen to talk about is Primark. I have chosen this organization because I have more knowledge about them as a business. Primark is a private limited company meaning you can’t buy shares of the company on the stock exchange but it can only be taxed on its profits. They make their profit by selling larger quantities. They also have a low profit margins. Primark today operates in over 270 stores in nine countries in Europe and growing with the first US store opening in Boston in 2015. With over 43000 employees Primark is a large international business. Primark opened its first ever store in Dublin in 1969 under their trading name Penneys. In 1973 Primark opened its first store in derby, England. Since 2006 Primark has expanded into Europe. The economic cycle is the natural fluctuation of the economy between periods of growth and recession. Factors such as gross domestic product (GDP), interest rates, levels of employment and consumer spending can determine the current stage of the economic cycle. In this report I am going to focus on two economic climates in particular; growth and recession. Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. In a period of growth Primark will have a positive impact. This is due to more consumers having the money to buy their products, this would mean a higher profit for Primark. Growth will also have a negative impact on Primark this is because consumers will have more money to spend so their more likely to spend in more expensive shops. In a period of growth demand would be high and supply would be low. This is due to the fact consumers can afford to buy the products they demand. The more consumers demand a single product the lower the supply.

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The definition of recession in the economic cycle is where 2 quarters in a row the value of all goods and services fall in price. Primark is popular due to their low...
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