Wednesday 11 February 2015

Benefits and Drawbacks of the way Primark is operating

 The benefit of the way Primark is operating which is by having factories in countries such as Bangladesh is that it keeps their costs down because it is cheaper to hire a factory in the poorer countries which means that their profit margin is wider . 

Another benefit is that they will be able to hire staff for less meaning that their wage bill will be lower leading to their costs decreasing meaning that their profit margin will be wider leading to the company having more money to invest into other business activities such as marketing.

A disadvantage of the way that Primark is operating is that it is unethical as they are using child labour to cut costs and are mistreating their workers by giving them poor working conditions a very biased work life balance as they are working very long shifts without any breaks. 

This affects Primark because pressure groups have been aware of this and have started boycotts against Priimark stores which have got the public involved leading to less customers shopping at Primark due to them not believing in their actions  which will mean the sales will decrease leading to the revenue and profit decreasing. Their reputation will also become bad leading to less new customers.

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