Primark Executive Summary

Traditionally the business objectives are aimed at maximizing profits in a sustainable environment while putting the stakeholder’s value in the business as a priority. However, due to the change in the stakeholder’s theory, the business objectives have been changed to putting the stakeholder’s value first in order to maximize the business profits. This is done through improvement of the business ethics. This emphasizes that the business is responsible to the society in which it is operating. Primark is a good example of a firm which is faced by these challenges.
In this article, discussions on how business ethics affects the stakeholder’s value and the profits is done in details. The high demand of clothing in Primark and how it induces the supply to meet the market demands is also discussed. The working conditions in the supplying firm and their wages and …show more content…
When the demand is high, the supply is made high in order to meet the demands of the consumers. Primark sources its garments cheaply and makes them with simple designs and fabrics. This causes the prices cheap and affordable to the customers. They make the clothes in the most popular sizes meeting the demands of majority of its customers, this causes more demand of its products due to low pricing thus causing more pressure to the supplier to produce more commodities to meet the demand in the market.
The consumer behavior to the products offered by Primark depends with the utility of the product. Since Primark sales fashionable clothing, its main target is the middle aged group and therefore makes the consumption pattern different depending with the age. The prices are cheap too making the clothes and fabrics affordable to each person. The clothes are price elastic meaning that more of the garments are bought when the prices are low. Income of the customers also affects the purchasing power of the garments directly hence the products considered income