1. Preamble
This report at first gives a brief profile of the company and then covers the economic relative functions such as supply and demand, demographics and the cause and effects relative to Primark. Then, the focus shifts to the persistent issue of ethicality in Primark’s supply chain, highlighting the Rana Plaza disaster in 2013 and how Primark reacted to those events.
Subsequently, the report analyses possible government intervention and the limitations and cost–benefit attached to it. Finally, the report provides recommendation to Primark and the government and concludes.
2. Introduction
Primark’s profile
Primark, a subsidiary of the Associated British Foods (ABF), is a Dublin-headquartered clothing retailer. Starting in 1969 as a …show more content…
b) Price mechanism function rotates and is relevant to the demand and supply fluctuations for example when demand in a market overtakes supply, prices are according resources scarcity such as when there is supply scarcity prices are hiked thus acting like rationing device to maintain demand with supply equilibrium.
c) Equilibrium: Price changes are perceived differently by consumers and producers, increase price generally lessens demand, whilst boosting supply and reduce prices enhances demand while depressing supply.
Economist recommends a free market a single price can balance demand and supply and this is called equilibrium price. Thus, the scarcity resources on either part giving incentive to involving in an …show more content…
It may also happen that the pointers may lead to failure operationally when incentive functions of the pricing strategy fails because the external costing and benefits was not given consideration or consumers are provided inaccurate information.
At Primark, incentives are not provided in the form of discounts because Primark maintains stable low prices but does not offer discounted products (Financial Times 2015a).
e) Demographic variables: Business is affected by demographic factors such as age, gender, location and income. Mostly firms research on customer’s favouritism and then target accordingly in adverts. This assists them in maximising profits. For example, although Primark targets age group is 18-35 year olds (its success is driven by focusing on a target market of young people), but it gets its biggest sale volume in categories that caters all ages, such as jeans and flip flops (Reuters 2014).
3.2 Shifts in
This report at first gives a brief profile of the company and then covers the economic relative functions such as supply and demand, demographics and the cause and effects relative to Primark. Then, the focus shifts to the persistent issue of ethicality in Primark’s supply chain, highlighting the Rana Plaza disaster in 2013 and how Primark reacted to those events.
Subsequently, the report analyses possible government intervention and the limitations and cost–benefit attached to it. Finally, the report provides recommendation to Primark and the government and concludes.
2. Introduction
Primark’s profile
Primark, a subsidiary of the Associated British Foods (ABF), is a Dublin-headquartered clothing retailer. Starting in 1969 as a …show more content…
b) Price mechanism function rotates and is relevant to the demand and supply fluctuations for example when demand in a market overtakes supply, prices are according resources scarcity such as when there is supply scarcity prices are hiked thus acting like rationing device to maintain demand with supply equilibrium.
c) Equilibrium: Price changes are perceived differently by consumers and producers, increase price generally lessens demand, whilst boosting supply and reduce prices enhances demand while depressing supply.
Economist recommends a free market a single price can balance demand and supply and this is called equilibrium price. Thus, the scarcity resources on either part giving incentive to involving in an …show more content…
It may also happen that the pointers may lead to failure operationally when incentive functions of the pricing strategy fails because the external costing and benefits was not given consideration or consumers are provided inaccurate information.
At Primark, incentives are not provided in the form of discounts because Primark maintains stable low prices but does not offer discounted products (Financial Times 2015a).
e) Demographic variables: Business is affected by demographic factors such as age, gender, location and income. Mostly firms research on customer’s favouritism and then target accordingly in adverts. This assists them in maximising profits. For example, although Primark targets age group is 18-35 year olds (its success is driven by focusing on a target market of young people), but it gets its biggest sale volume in categories that caters all ages, such as jeans and flip flops (Reuters 2014).
3.2 Shifts in