change management- primark.edited 123

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1 MANAGING PRIMARK Course Name Professor’s Name Institution Date

2 Table of contents Introduction……………………………………………………………………………………...3 Internal Audit……………………………………………………………………………………3 Corporate Culture …………………………………………………………………………….3 Resources and Capabilities…………………………………………………………………..5 External Audit……………………………………………………………………………………6 Competitive Analysis…………………………………………………………………………6 Customer expectation/users expectations – PESTLE…………………………………………7 SWOT Analysis…………………………………………………………………………………..9 Strategy Recommended…………………………………………………………………………10 Force Field Analysis…………………………………………………………………………….12 Strategic Drift Model………………………………………………………………………… .... 13 Conclusion………………………………………………………………………………… ........ 14 References…………………………………………………………………………………… .... 15 Appendices……………………………………………………………………………………...17

3 Managing Change (Primark Organization) Introduction Primark is a retail clothing store with over 370 stores across various countries. Founded in Dublin in 1969, it is now one of the biggest names in fashion retail. Primark's success is largely due to its focus on providing quality fashion at low prices to its customers ( Xydia, N., 2019) . Primark also offers an extensive range of products, from casual clothing to formal wear. Primark operates in a highly competitive and ever-changing retail environment. To succeed, it must continuously innovate and adapt to changing market conditions. This includes addressing the challenges of online shopping, rising consumer demand for sustainability and ethical sourcing, and responding to consumer tastes and style changes. Primark uses a variety of strategies to stay ahead of the competition, as it offers exclusive products and limited-time promotions and uses digital marketing tools to reach potential customers. It also works with various charities and initiatives to demonstrate its commitment to social responsibility. Primark is also engaging with the wider fashion industry and is a member of the Sustainable Apparel Coalition, a group of brands, retailers, and non-governmental organizations working together to improve the fashion industry's sustainability. Primark is also investing in new technology, including RFID tags, to improve the efficiency of its supply chain. Overall, Primark is operating in a challenging and rapidly changing retail environment. It must continuously adapt to new trends and technologies to remain successful while remaining committed to providing quality fashion at affordable prices. Internal Audit Corporate Culture Primark's corporate culture is built around the core values of trust, respect, and collaboration. According to the Organizational Cultural Web, Primark's culture is based on

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4 shared beliefs and values. Primark's culture is all about teamwork, collaboration, and open communication. Primark is a retail organization that values its employees, offering them a supportive and collaborative culture. This is demonstrated through their focus on equality and diversity, flexible working hours, and offering employees various training opportunities. The organization also promotes a positive and encouraging environment where employees are encouraged to express their ideas and take ownership of their development. This helps to foster a sense of community and responsibility within the organization. Primark's organizational culture is based on a 'customer first' approach, where employees are expected to provide excellent customer service and to be willing to go the extra mile for customers. This is backed up by a strong reward and recognition system, which rewards employees for their hard work and dedication. The company has a culture of continuous improvement, with employees encouraged to constantly innovate and look for new ways to improve the company's performance. This helps to create a culture of collaboration and innovation, where employees are encouraged to share their ideas and contribute to the organization's success. The company has a corporate culture of quality and innovation as it encourages team-working, promotes open communication, and supports individual creativity ( Ramesh, 2022) . This has been developed through a 'Deal and Kennedy' approach to management. This approach is focused on creating a strong bond between the organization and its employees, with a focus on shared values and norms that are mutually beneficial. This helps to develop a culture of trust and respect, leading to increased employee commitment and loyalty. Primark also encourages a strong sense of responsibility and accountability from its employees, which helps to create a culture of excellence and achievement.

5 Additionally, its corporate culture is largely based on the Miles and Snow typology. Primark is a defender-type organization whose corporate culture is focused on stability and efficiency. They keep their focus on known markets and established products and services. Primark values consistency, reliability, and customer satisfaction. They strive to maintain a customer-centric approach to all aspects of their business, from their products to customer service. Primark also values teamwork and collaboration and encourages employees to work together to meet customer needs. They focus on creating an environment that promotes creativity, innovation, and a sense of community. Primark's corporate culture also encourages accountability and transparency, which helps maintain a high level of trust with customers and employees. Resources and Capabilities A resource audit identifies and evaluates the company's resources and capabilities. Primark is a vast organization with many resources and capabilities developed through the years. The company's primary resources include its physical stores, warehouses, and distribution centers. Their store locations are carefully selected to ensure they are in easily accessible areas with high footfall. They also have state-of-the-art warehouses and distribution centers across Europe and the US, which allows them to store and distribute their products effectively. Primark also has financial resources, which gives it a competitive edge, and it is part of Associated British Foods, which offers them access to funds and other financial resources ( al Habibi, 2019) . This allows them to invest in new stores, technology, and marketing campaigns. The company also has a skilled and experienced workforce, with many employees across the country. Their employees are well-trained in customer service and product knowledge, which has helped them develop a loyal customer base. The company also has a strong management team with a wealth

6 of retail experience and expertise. Primark has a strong brand presence, with stores in many major cities and shopping centers. They also have a strong online presence, with a website and social media accounts that attract millions of viewers each month. Primark’s online presence allows them to reach a wider audience and engage with its customers. Additionally, it has a strong supplier network, with relationships across Europe, Asia, and the US. This allows them to source the best quality products at competitive prices ( Team and Kabote, 2021) . Again, they have strong relationships with leading brands and designers, which allows them to create exclusive collections and limited edition items. Primark has a strong research and development team, constantly innovating and developing new products and services. This has enabled them to stay ahead of the competition and meet changing customer needs. Overall, Primark has a wealth of resources and capabilities that have allowed them to become a leading fashion retailer. Their financial resources, experienced workforce, strong brand presence, supplier network, and research and development team have helped them become a successful business. External Audit Competitive Analysis Primark operates in the retail industry, which is in its mature life cycle stage. In this stage, the industry is characterized by intense competition, many competitors, and slow growth in the market. To stay competitive, Primark needs to continuously analyze its competitors' strategies, products, and pricing to identify opportunities for improvement and to develop unique competitive advantages. It also needs to focus on product innovation and marketing strategies to create a competitive edge over its rivals. Additionally, Primark needs to consider cost-saving

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7 strategies such as automation and outsourcing to remain competitive and maintain a competitive cost structure. Primark performs a product life cycle analysis as part of its external audit to evaluate its product offerings. This analysis involves assessing the current stage of the product's lifecycle by looking at the sales volume, profitability, customer satisfaction, and other metrics. Primark assesses the marketability of its products and how they fit into the current product landscape. It strongly focuses on market research, including surveys and focus groups, to assess customer responses and preferences. This helps Primark identify areas of improvement and gain insight into the competitive landscape. The company closely monitors competitor pricing and promotions to ensure its products remain competitive To remain competitive. Primark must ensure that its products are always in the early stages of the product life cycle ( Ortega and Okechukwu 2017) . This requires Primark to continually introduce new products and upgrade existing products to meet customer demand. Primark must also monitor the competition closely to ensure its products remain competitively priced and high-quality. Through this analysis, Primark can identify opportunities to improve its product offerings and stay competitive. A strategic group mapping of Primark organization would focus on its competitive landscape. It would consider direct competitors in the retail industry, such as Next, H&M, and Asos, and evaluate Primark's positioning relative to them. It would also consider the broader market environment and analyze the impact of external factors such as economic conditions, customer preferences, government policies, and technological advancements on Primark's business. Through this analysis, Primark can identify areas of competitive advantage and devise strategies to gain a competitive edge over its rivals . This strategic analysis would be invaluable in Primark's external audit and help it make better-informed decisions.

8 Customer Expectations/ Users Expectation- PESTLE Political Factors Customers/users of Primark expect the company to operate in a responsible, ethical, and compliant manner that meets the local and global government's political and regulatory requirements. This includes implementing policies such as compliance with the GDPR, data protection and privacy laws, anti-bribery, anti-corruption, and anti-trust regulations, and labor laws in each country of operation ( Eisenberg, 2019) . The company is transparent in its operations and ensures that its products and services are produced safely and ethically. Economic Factors Additionally, the company provides goods and services that are affordable and of good quality. Customers expect Primark to be able to handle economic downturns and remain competitive in the market ( Hip, 2022) . The company can respond quickly to changes in the economic environment, such as introducing new taxes or differences in currency exchange rates. Customers expect the company to be able to adjust to changing customer needs and respond to these changes in a timely and efficient manner. Social Factors Again, the users of Primark expect the company to adhere to high social responsibility and sustainability standards. This includes the use of natural resources in a responsible manner, the promotion of fair and safe working conditions, and the promotion of diversity and inclusion ( Eisenberg, 2019) . They also expect the company to be actively involved in the community and support initiatives benefiting local and global communities. Technological Factors

9 The company's users expect Primark to use the latest technological advancements to improve its products and services ( Eisenberg, 2019) . This includes using artificial intelligence, big data and analytics, the Internet of Things, and digital platforms and applications to enhance customer experience. Its Customers expect the company to be able to keep up with the latest trends and developments in technology and to be able to innovate and create new products and services that are in line with customer needs. Legal Factors The company abides by the legal framework of each jurisdiction it operates in and users' expectations. This includes the implementation of laws, regulations, and policies that protect the rights of customers/users, such as data protection, consumer protection, and health and safety regulations. Customers expect the company to comply with all applicable laws and regulations and adhere to ethical business practices. Environmental Factors The company adheres to high standards of environmental responsibility, which include the implementation of measures such as the use of renewable energy sources, the use of sustainable materials and processes, and the reduction of waste and emissions ( Eisenberg, 2019) . Customers/users of Primark expect the company to be actively involved in environmental initiatives and commit to projects that will benefit the local and global environment. SWOT Analysis Primark’s Strengths Primark has a strong presence in Europe, the United States, and Asia and has more than 370 stores worldwide. This gives them a strong global reach and allows them to tap into different markets, according to (Rohim). They offer a wide variety of products for all ages and genders,

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10 which is why they are so popular. Primark also has a reputation for quality and value, which is why customers return to their stores time and time again. Primark’s Weaknesses Primark has a limited online presence and does not offer online shopping, which limits its ability to reach a wider audience and keeps them from taking advantage of the growth of online shopping. Additionally, their low-cost pricing strategy means they have a smaller profit margin than some competitors. Primark’s Opportunities Primark can capitalize on its strong presence in Europe, the United States, and Asia by expanding into new markets and growing its customer base. Additionally, they can take advantage of the growth of online shopping by developing an online presence and offering online services. Primark’s Threats Primark faces competition from other retail chains, both online and in-store. The changing fashion landscape and the emergence of fast fashion retailers pose a threat to their low- cost pricing strategy ( HowandWhat.net and Rahman, 2021) . They also face the risk of changing consumer preferences and tastes, which could lead to a decline in sales. Therefore, Primark's main strengths are its global presence, wide product range, and reputation for quality and value. Their main weaknesses are their limited online presence and low-cost pricing strategy. Their main opportunities are expanding into new markets and taking advantage of the growth of online shopping. Lastly, their main threats are competition from other retailers, the changing fashion landscape, and changing consumer preferences. Strategy recommended

11 The best strategy for Primark Company would be the Ansoff Matrix. This is because the Ansoff Matrix is a strategic planning tool that helps managers to decide on their future course of action and determine potential growth opportunities for the business ( Clarissa, 2020) . It is a useful tool for Primark Company as it allows them to assess their current position, understand their competitive advantage and identify potential risks in moving forward. Ansoff's matrix is based on four strategies that companies can use for growth. The four strategies are market penetration, market development, product development, and diversification, according to Matrix, A., and Ansoff . These strategies are divided into two categories, organic and inorganic growth. Market penetration is selling more of the current products to the existing markets. Primark can use this strategy to increase its market share by increasing the number of stores, increasing the prices, or even offering discounts ( Sukma, Lubis, and Utami, 2019) . Market development is the strategy of introducing new products to existing markets. Primark can do this by introducing new products, expanding into new geographical markets, or improving its distribution and marketing channels. Product development is the strategy of introducing new products to new markets. Primark can introduce new product lines, such as clothing, accessories, or home decor. Diversification is the strategy of introducing completely new products to completely new markets. Primark can do this by introducing products that are completely different from what they currently offer. For example, they could introduce furniture, electronics, or even food. The Ansoff Matrix is a great tool for Primark to assess its current position and identify potential growth opportunities. It helps them understand their competitive advantage, identify potential risks, and decide on their future course of action. Primark can use this tool to assess its current position and identify potential growth opportunities for the business. Primark can also use the Ansoff Matrix to identify potential risks. For example, if they decide to introduce new products

12 to new markets, they must consider the potential dangers of entering a new market. Primark can use the Ansoff Matrix to identify potential risks, such as the cost of entering a new market, the potential competition, or the potential for failure. Overall, the Ansoff Matrix is an effective strategy for Primark to assess its current position and identify potential growth opportunities. It is a useful tool to understand their competitive advantage and identify potential risks in moving forward. With the help of the Ansoff Matrix, Primark can develop a strategy that will help them achieve their business objectives and maximize their potential for growth as it helps to identify new growth opportunities and strategies for the organization. Therefore, it provides four different strategies to develop the business, including market penetration, market development, product development, and diversification, allowing for market analysis and risk management. This helps Primark build products and services that meet customer needs and identify new markets to enter. In addition, the SAF model can be used to support the Ansoff Matrix strategy. The SAF model proposes three key strategic activities: sensing, analyzing, and responding. Primark can use the sensing activity to understand the current market and customer needs, the analyzing activity to identify potential opportunities, and the responding action to develop and implement an appropriate strategy. This will help Primark to identify the most suitable strategy for its goals and objectives. Force Field Analysis Force field analysis is a tool used to identify the forces that affect the direction of change within an organization. It is based on the idea that for change to occur, there must be both driving and restraining forces ( Tahir, 2020) . In Primark's case, both driving and controlling forces could affect the direction of change for the company. There are driving forces which include Customer

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13 demand whereby. Primark has seen an increase in customer demand over the last few years, which has led to new stores and a stronger online presence. Cost savings whereby the company has been able to reduce its costs significantly by using efficient supply chain management and sourcing from suppliers who offer competitive pricing. Additionally, there are Restraining forces such as Economic conditions, Competitors, and Regulations. Primark is subject to various regulations, affecting its ability to operate efficiently and profitably. Overall, the driving forces of customer demand, cost savings, innovation, and brand loyalty are likely to impact Primark's direction of change more than the restraining forces of economic conditions, competitors, regulations, and the supply chain. Strategic Drift Model The Strategic Drift Model can be applied to Primark's current situation to help the company assess its current strategy, identify areas for improvement, and develop a new plan for the future. The first step of the model involves analyzing the current environment in which Primark operates. This includes exploring the competitive landscape, the economic climate, and the company's current strategy ( Team, 2022) . By understanding the current environment, Primark can identify areas where it needs to adjust its strategy to remain competitive. The second step of the model involves assessing the company's current strategy. This includes evaluating Primark's present competitive advantages, pricing strategy, marketing strategy, and ability to innovate. By evaluating the current strategy, Primark can identify areas that need to be adjusted to remain competitive in the market. The third step of the model involves developing a new strategic plan. This includes creating a vision for the future, setting goals and objectives, and developing a strategy to achieve those goals. Primark should focus on creating a competitive advantage in the market by offering unique products, creating a unique brand identity, and leveraging technology

14 to provide an enhanced customer experience. Finally, the fourth step of the model involves implementing the new strategy. According to Kleweno, this includes creating a plan of action, assigning tasks and responsibilities, and measuring progress. Primark should ensure that they have the necessary resources and personnel to implement the new strategy and monitor progress and make adjustments as needed. By applying the Strategic Drift Model, Primark can assess its current system, identify areas for improvement, and develop a new plan for the future. This will help the company remain competitive and ensure its long-term success. Conclusion In conclusion, Primark has a strong organizational culture built over many years and has been successful in the markets it has entered. It has used its resources and capabilities to achieve a competitive advantage in the industry and product life cycles. The SWOT analysis has revealed the key factors essential for Primark's success, and the Ansoff matrix has been used to recommend strategies for further growth. The SAF model has been applied to support the recommended approach, and the force field analysis has been used to identify potential barriers and sources of resistance. Finally, the strategic drift model has been used to help identify the potential risks of pursuing a particular strategy. All of these components have been essential in helping to evaluate the strategic direction of Primark, and it is clear that Primark is in a strong position to continue its growth and success in the future.

15 References al Habibi, B., 2019. HR practices of Marks & Spencer, Selfridges, Primark, and Sainsbury’s (Doctoral dissertation, University of Science & Technology). Clarissia, S.M.S., 2020. A study on Ansoff Matrix Technique: As a growth strategy and an adaptive learning technique adopted in the leading brand of products. BIMS Journal of Management , p.18. Eisenberg, P., 2019. Financial Analysis of Primark Stores Ltd. with regard to a Stock Exchange Floatation (IPO). International Journal of Management , 7 (1), pp.91-112. Hip (2022) Pest analysis of Primark Stores Ltd , Free Essays - PhDessay.com . Available at: https://phdessay.com/pest-analysis-of-primark-stores-ltd/ (Accessed: December 30, 2022). HowandWhat.net and Rahman, M. (2021) SWOT analysis of Primark (Primark SWOT) , howandwhat . Available at: https://www.howandwhat.net/swot-analysis-primark-primark- swot-analysis/ (Accessed: December 30, 2022).

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16 Kleweno, S. (no date) Strategic drift: How to avoid losing competitive advantage , Strategy Software for Planning & Execution . Available at: https://www.cascade.app/blog/strategic- drift (Accessed: December 30, 2022). Matrix, A. and Ansoff, I., Tools for Generating Strategic. Ortega, A.M.G. and Okechukwu, C.U.U., 2017. Strategic means to launch business-Primark in Denmark. Ramesh, D.N., 2022. Importance of brand strategy in stakeholder communication and satisfaction (A study on fashion retail company's stakeholder management) (Doctoral dissertation, Dublin, National College of Ireland). Rohim, M., PRIMARK MARKETING STRATEGY. Sukma, D., Lubis, P.H. and Utami, S., 2019. Analysis of Marketing Strategy of Minyeuk Pret Using STP, Ansoff Matrix, and Marketing Mix. Tahir, U. (2020) Lewin's Force Field Analysis (Change Management) , CMI . Available at: https://changemanagementinsight.com/lewins-force-field-analysis-change-management/ (Accessed: December 30, 2022). Team, E. (2022) What is strategic drift? stages, example and reasons , Being Intelligent . Available at: https://beingintelligent.com/strategic-drift.html (Accessed: December 30, 2022). Team, E. and Kabote, S. (2021) How are Primark's clothes so cheap? , Economy . Available at: https://www.ecnmy.org/engage/how-are-primarks-clothes-so-cheap/ (Accessed: December 30, 2022). Xydia, N., 2019. Sustainably-conscious consumers’ perceptions, attitudes and behaviours towards the fast fashion industry: A Case of Primark.

17 Appendices Appendix 1: SAF Matrix SAF Matrix Porter’s Strategy Ansoff Strategy Suitability 8 5 Feasibility 2 1 Acceptability 4 3 Total 14 9 Appendix 2: Force field Analysis Forces for Change Forces against Change Loss of workforce over time. Staff does not effectively embrace new technology. Cost Impact of new technique on the environment. Increasing cost of maintenance. Increase volume of output. Enhanced speed of production. Clients demand new products.

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