company and how they meet the needs of their stakeholders. In this report, it also includes a recommendation that can contribute to the business’s brand and services they provide. This report is based on Primark, fashion retailer brand. Page Break 1.1 Company background Primark is a fashion retailer brand, also known as Penny’s.
It was first established in the year of June 1969 in Dublin, Ireland by Arthur Ryan. The company is invested by Associated British Foods: it’s subsidiary owned. Primark is popularly known for their low price and high-value products ranging from womenswear, children’s wear, menswear, footwear, cosmetics, accessories and housewares. Primark currently distributes in 11 countries, 356 stores with an estimation of over 68,000 employees. Primark’s objectives “To provide good quality products to our customers at a value for money, to be friendly and ethical towards their employees and customers. Everyone will be treated fairly and feel welcomed”(Primark, 2017). Page Break 2.0 Key Resources Key resources are the elements needed for a business or organisation model to function properly, according to Weaver 1998 he describes key resources in terms of physical, human, and financial.
Physical resource are man-made things, depending on the business these resources are available to use on a daily basis in the company this might be machines, vehicles, buildings, equipment, or products. Human resource focuses on the company’s employees relating to recruitment, training, performance management, payroll administration, and company’s policies. They ensure that the company has the right employees for the job at a minimum cost and well-being of the employees in the company. Financial resource is the money available in the business in order for it to function properly, this might be cash balances, loans, bank overdraft, shareholders capital, and salaries. (Ecommerce digest, 2017) Human Resources Employees are an essential in Primark as they play a major role in the profitability of the company as they’re responsible for the day to day operations such as customer service, stocking shelves, merchandising and customers assistant. Human resources enable the company to meet a number of objectives regarding employee relation in recruiting, training and the company’s structure.
They identify talented candidates to fit positions using clear job description and hire those with the relevant qualifications and skills in the sector. They want to get the best performance out of all their employees by training/coaching all new and current employees. They monitor individual’s performance to ensure that employees are motivated and working effectively to complete their duties. Financial Money is the important key to the business because it’s the enabler to all the business’s opportunities, Primark generates profit from the sales of their products and service they provide this enables the company’s cash flow and it promotes the company’s growth and sustainability. In return, there are enough funds available for the organisation’s financial needs such as paying salaries, shareholders, premises, investors, and creditors. Physical Primark relies on their premises in the ability to sell their products, generate profit and the development of the organisation. Primark uses buildings, facilities and equipment this are the stores, stocking shelves, lifts, escalators, tills and baskets/trolleys. They make sure that all their stores are located in the centre of the city so that they are accessible to the public and customers can shop locally.
They use the tills, this enables them to scan and check out customers who are buying their products and make a profit. They designed all their buildings to accompany their employees so they can work in a safe environment and customers can shop without obstacles for example customers with pushchairs or in wheelchairs can use lifts or escalators to go upper floors of the stores. They want everyone to be able to work or shop without any hassles.
Page Break 2.1 Supply Chain and Stakeholder A supply chain is a system that involves several stages before the product gets to the buyers, it’s the consists of all parties involved either directly or indirectly in fulfilling the customer’s request. According to Christopher 1998, he defines a supply chain as “The network of an organization that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer” (Christopher, 1998). A successful supply chain management is built on 8 stages implementing cross-functional processes. Customer relationship management Supplier relationship management Customer service management Demand management The order fulfilment Manufacturing flow management Product development and communication Returns management. Supply Chain model 1 In a clothing industry see model 1, a supply chain starts with stage 1 the design of the products which includes details of the fabric, silhouettes, trims and finishes. Stage 2 – the material production either growing or creating the raw materials such as cotton picking, spinning fibre, weaving fabric and dying of the materials. Stage 3 – Is the clothing production this involves cutting, sewing, and finishing of the garments.
Stage 4- once the products are manufactured, they are then transported globally to retailers where they would then be sold to consumers. Primark does not directly own any of the suppliers and factories they work with, so they get their products produced in different parts of the world; which include China, India, Turkey, Bangladesh and Eastern Europe. They place their orders with the factories and suppliers who then produce the products on their behalf. Primark is in partnership with these organizations: Ethical Trade and Environment Sustainability who are located within the key sourcing countries who monitors the compliance of the products on behalf of Primark, the goods are then transported globally to Primark’s distribution centres in Leicestershire and Naas until they are ready to be sold in their stores. Stakeholder A stakeholder is defined as anyone with an interest in a business, they can be internal or external see model 2, they can be individuals, groups or organisations “who are affected by or can affect the business’s objectives”.
Johnson and Scholes 2002 explained stakeholders as “Stakeholders are those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson and Scholes, 2002). Stakeholders model 2 Stakeholder management helps the business in engagement strategies and build positive relationships with them by setting objectives and managing their expectations. This enables the business to progress toward their business objectives by keeping their stakeholders satisfied. Workers – The garment workers are the most vulnerable part of the supply chain, Primark is in partnership with Ethical Trading organisations within their supply chain, who ensures that the needs of the workers are met. This is being treated fairly and decent, no child labour, working in good conditions, paid fair wages, and job security. Suppliers and Manufactures – Pay bills promptly, being clear about deadlines, place orders in good time and build fair relationships. Customers – Primark ensure the needs of customers are made by producing good quality products at reasonable prices, provide good customer service and develop customer loyalty.
Page Break 3.0 Recommendation Primark should consider investing in their own factories and suppliers locally, this will enable them to have better control, communication, and performance management on the process of the products and this is significantly proven to be environmentally friendly and socially responsible. Better knowledge of working conditions in the factory limit exploitation of individuals working in the factories Job creation locally Page Break 4.0 Conclusions In conclusion, all three key resources are important in order for Primark to function properly and if all three resources are carried out correctly they can improve the performance of the business and a structured supply chain management will add value to the company and stakeholder satisfaction.