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Conclusion - Essay Example

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Summary
The competition is indeed quite stiff in the market place. The retail sector in particular, is witness to a tough competition and amidst a large number of players in the fray. The era of globalisation in general has brought about an intense amount of competitive rivalry and shrinking profit margins…
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Download file to see previous pages It is quite apparent from the study that Primark has indeed created a niche for itself even in these challenging times. In fact, the strategy of competitors to label Primark as a 'cheap' brand while making efforts to label their own brands as premium ones' has not worked to their advantage. Instead Primark seems to have taken a lead in understanding the requirements of the common consumer and offering them value for money. Primark seems to believe in market penetration strategy, while passing on maximum benefits to the consumer and thus playing the volume game. Primark has opened up stores in UK and Ireland at vantage points, the places most frequented by the common consumer. Thus saving on the marketing communication costs to a great extent. Today marketing communication forms an integral cost component of any business proposition. If a company can save on this expenditure to some extent while making itself visible amongst the existing and prospective customers, then it helps in leveraging the economies of scale. These costs can be passed on to the workforce, which motivates them for pooling their efforts in a better manner, thus coming out with quality products. In fact this chain of events has been quite ably used by Primark to the advantage of its own business prospects as well as to the advantage of its workforce.
Motivational theories discussed during the study clearly suggest that if the needs of the fellow human beings are taken care of, they are bound to come out with their optimum performance. Effective management of the workforce lends credence to the notion that a company is being managed professionally. Primark, while charging less from its customers, has maintained good industrial relations. As the returned questionnaire indicates, the workforce is not too unhappy with the HR policies of the company, which appear to be employee friendly. As pointed out in the study, the kind of attention paid to employees' care, by the MNCs is an indication towards the level of competition and the innovative methods devised to sail ahead in these competitive times. The higher levels of turnover of the workforce, in Parimark, could be explained by the fact that in an intensely competitive world the rival companies are always on the lookout for experienced workforce. The workforce, particularly the youth segment, also is on the lookout for making quick bucks, so they don't attach too much importance to the loyalty part and hop on to the company with better payment packages.
The higher levels of employee turnover also results in some cost escalation to the company, as it has to incur fresh costs on recruitment and training of the workforce. The newer workforce also requires some time to adjust to the working environment and this could have some effect on the efficiency of the service being provided to the customer. On the other hand, it can also be stated that the young blood brings renewed enthusiasm and more energy to the working environment. As the questionnaire points out the younger lot is there to make some quick money during their free time or vacation period. Therefore it good that Primark does attach too much loyalty strings to the job profile. This, in a way helps in offsetting the disadvantage resulting from the extra efforts being put into recruiting and retaining the work force. It goes to the credit of ...Download file to see next pagesRead More
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