Wednesday 4 February 2015

How functions of the business will be affected ?

Due to Primark having bad ethics, members of many pressure groups have protested against Primark due to their mistreatment of child labour and their workers which has led to a substantial amount of the public boycotting Primark and not buying their products and shopping at other stores. This has an effect on the sales function of Primark because due to the public boycotting Primark their amount of customers will drop leading to their number of sales decreasing leading to the profit margin of Primark narrowing down. However, when Primark became ethical, they used it as a unqiue selling point which attracted more customers to the stores which increased the number of sales Primark generated leading to a wider profit margin.

The function of marketing will be affected by Primark having bad ethics because the marketing team will have to work harder to create a product that will sell due to the public boycotting the company and Primark having a bad image which will mean that Primark will have to spend more money on creating the product and advertising it so that people may buy it as it will take more persuading to get customers to buy the products due to Primark's bad reputation.
Source: www.guardian.com 

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