Factors That Affect Streptomyces Growth Biology Essay

Factors That Affect Streptomyces Growth Biology Essay The growth of a microorganism is extremely dependent upon the surrounding environmental conditions. Every organism has a range of optimum conditions at which members of its species will grow ideally. Inoculum, temperature, pH and dissolved oxygen concentration (among other factors) within the media is often carefully controlled in industrial applications as deviations from the optimal conditions often have profound effects on the growth rate and activity of the organism (Shuler and Kargi, 1992). When directing experiments involving microbial growth, the preparation and quality of the inocula are as important as any other parameter control. In Streptomyces if mycelia are used in the inoculum, many uncontrolled variables will emerge. These variables include age, stress level and growth stage of the cells, all of which obligatory should be controlled (Kieser et al., 2000). This problem gets even worse when attempting to initiate trials over a period of several months as even small variations in the population size of the inoculum can result in large changes in the level and rate of growth. Streptomyces vegetative inocula are often prepared through the addition of several colonies sometimes from many starter plates to small amounts of media. This is afterward incubated until sufficient biomass is produced, as determined through optical density measurements of the media. This method of vegetative inoculum used by Jakeman et al. (2004) is effective in obtaining biomass; neverthele ss it does not provide the consistent inoculum required for comparative trials. The number of cells within the inoculum is hard to directly measure and the inconsistent manner of initially adding cells can result in cells at different stages of growth or stress level. Another method of preparing an inoculum is to harvest spores from the selected culture and store under conditions not satisfactory for germination. The cells within a spore suspension remain in a consistent state while still providing an instant inoculum (Kutzner and Nitsch, 1970). This technique also allows long term storage of a viable inoculum that should produce reliable results. By suspending the spores in a soft agar spore suspension, Kutzner and Nitsch (1970) have proven that a suspension of Streptomyces spores will remain viable as an inoculum over a year. Temperature The bacterial growth behavior is greatly influenced by many factors such as environmental conditions and the physiological state of the bacteria. The temperature of the environment directly affects the activity and growth of cells; every species has an ideal temperature for growth that is influenced by its physiology (Shuler and Kargi, 1992). This optimum temperature for growth may not be the same as the temperature at which metabolites are produced most efficiently. Streptomyces venezuelae ISP 5230 are mesophilic bacteria, which means that their optimal growth temperature is between 15 and 40 Â °C. For every increase of 10 Â °C closer to the optimum growth temperature, the growth rate of bacteria approximately doubles (Truelstrup-Hansen et al, 2002). If the media temperature is above optimal, the rate of growth is reduced. The temperatures used for Streptomyces venezuelae growth have been cited as 30 Â °C Â ± 2 Â °C (Wang and Vining, 2003; Jakeman et al., 2006). At 42 Â °C Str eptomyces venezuelae express heat shock genes that motivate sporulation and antibiotic production (Yang et al., 2008). pH Similarly to temperature, the pH (hydronium ion concentration) of the media affects the growth rate of bacteria by influencing the activity of cellular enzymes (Shuler and Kargi, 1992). To achieve the maximum growth rate level, current literature recommends growing Streptomyces venezuelae in a media with the maintenance of pH between 6.0 7.8 (Jakeman et al., 2006). The optimal pH levels are often different when maximizing growth rate and highest product yield (Shuler and Kargi, 1992). However, bacteria are often able to grow within a huge range of pH. Studies on the Streptomyces species by Kontro et al. (2005) have found the optimal pH ranges of growth and sporulation for this species to be between 5.5 and 11.5. The study executed by Kontro et al. (2005) has also found that the media strongly affects the acid tolerance of Streptomyces species. When grown at pH 4 in a media that contains yeast extract most species included in the studies were unable to grow, while at the pH of 7 the majority of species displayed maximum growth rate on most types of media. In order to buffer the pH of the growth medium to near neutral values, a buffer called MOPS (3-(N-morpholino) propanesulfonic acid) is normally used for this species of Streptomyces. While studying the effects of carbon sources on antibiotic production by Streptomyces venezuelae, MOPS was added to jadomycin B production media by Jakeman et al. (2006) however, no buffer was added to the Maltose yeast extract malt extract (MYM) agar that was used for the growth during the study. Glazebrook et al. (1990) studied the effect of different carbon sources on Streptomyces venezuelae sporulation in minimal LS media. In this media, enough amounts of MOPS were added to maintain the pH of the media at near neutral values for every carbon source except glucose. During growth in glucose-based LS media, a high production of oxo-acids was observed resulting in growth inhibition. Dissolved Oxygen The dissolved oxygen available to bacterial cells within the media can be a limiting factor if the rate of consumption exceeds the rate of supply (Schuler, 2000). There is a critical oxygen concentration exclusive to each bacteria species, above which the growth rate is independent of the media dissolved oxygen concentration. This value is usually 5 10 % of the maximum saturation level; however the maximum saturation is influenced through the existence of dissolved salts, organics, and the medias temperature (Shuler and Kargi, 1992). The production of secondary metabolites can also be influenced through dissolved oxygen concentration. During antibiotic production Streptomyces clavuligerus, increased oxygen saturation above the critical dissolved oxygen concentration which resulted in additional product and biomass yield (Yegneswaran et al., 1991) up to the maximum saturation limit of oxygen in the media. Substrate The substrate used in the media is an important factor that can affect growth rate of the bacteria as well as its characteristics. For instance, Kontro et al. (2005) found that Streptomyces species changed its behavior as acidophiles, neutrophiles or alkalophiles, depending on the growth media. Most species would grow optimally at pH that is near to neutral or slightly alkaline conditions on a media that included yeast extract (Kontro et al., 2005). Streptomyces venezuelae is grown using many carbon sources including glycerol, glucose, lactose, mannose, maltotriose, maltose starch and more. The effect of these carbon sources on growth and secondary metabolite production is dependent upon many factors such as pH (Kontro et al., 2005). For example, studies on the sporulation of Streptomyces venezuelae in liquid media by Glazebrook et al., (1990) found that while maltose supported the growth and sporulation of Streptomyces venezuelae, glucose significantly inhibited sporulation. Specifi cally, when grown in minimal LS media using glucose as the main carbon source, the pH of the media dropped rapidly with the production of oxo-acids by the bacteria. The increased acidity likely contributed to growth inhibition; however the glucose was reported to also have an inhibitory effect on sporulation that was un-related to the increased acidity of the media. As the jadomycin family of antibiotics is linked to the sporulation pathway (Wang and Vining, 2003), it is visible that the media has a huge effect on the growth and antibiotic production by Streptomyces venezuelae. Work by Jakeman et al. (2006) found that the carbon source supplied in to the media also has an influence on the antibiotic production by Streptomyces venezuelae. The effect of several sugars on jadomycin B production was studied and important differences in antibiotic production between sugars were found, where glucose was found to be optimal. Heat Balance The bacterial behavior is greatly influenced by the environmental temperature; however the metabolism and activity of bacteria also affects media temperature. Naturally about 50 60 % of energy produced during the metabolism of nutrients within a system is transformed into heat energy (Shuler and Kargi, 1992). The metabolism of sugar is a great source of thermal energy that must be taken into consideration in bioreactor design (Ben-Hassan et al., 1992). Streptomyces venezuelae aerobically metabolize sugars for energy and the production of metabolites. In industry, the amount of substrate used by the microorganism for growth and product synthesis determines the economic viability of the process. The heat energy produced can be determined through the utilization of a heat balance model (Ghaly et al., 1992). Once the heat of mixing is determined, the energy generated by Streptomyces venezuelae can be determined. The work by Ghaly et al. (1992) on the heat generated through mixing and me tabolism during lactose fermentation showed that the temperature of media increased from 22 to 32 Â °C with bacterial growth (Figure 3.9). This increase in temperature was due to the heat generated by the yeast (7.4 JÂ ·s-1) as well as the heat of mixing (1.01 JÂ ·s-1). The amount of heat generated by the organisms in a bioreactor can be estimated by modeling the heat flux over the boundary of the enclosed system. This mathematical model or heat balance balances the thermal energy generated within a system with the energy stored and lost from the system (Ben-Hassan et al., 1992). To develop a heat balance using this method, a trial must first be executed on the system through normal stable state operation to evaluate the heat generation during operation of the bioreactor. A heat balance can be performed on a bioreactor to determine the amount of thermal energy generated within the system during normal operation due to mixing. To model the system under different operating circumst ances the reactor can be run at several agitation speeds (e.g. 200, 400 and 600 rpm) until a state of thermal balance is reached. At thermal balance the amount of energy generated within the bioreactor is equal to the amount of energy lost; this state of stability can be used to eliminate unknown parameters within the heat balance model.

American Imperialism :: United States America Imperialist essays papers

America had definitely played its role in its imperialism. First of all imperialism is the control from one country doing to another. America has controlled a lot of countries in its time. In this essay I will talk about the causes and effects that America’s imperialism played a role in. We have really controlled a lot of countries in our time but this essay will focus more on the 19th and 20th century. We play a pretty big influence in the world today as in status wise. A lot of countries respect us because of our integrity and greatness that we have achieved. Overall I will talk about how imperialism existed in the time of American in 19th and 20th century as well as explain the causes by this time and effects that resulted on our lives today.   Ã‚  Ã‚  Ã‚  Ã‚  Imperialism is the policy or action by which one country controls another country or territory. Most such control is achieved by military means to gain economic and political advantages. Such a policy is also called expansionism. An expansionist state that obtains overseas territories follows a policy usually called colonialism. An imperialist government may wish to gain new markets for its exports, plus sources of inexpensive labor and raw materials. A far-flung empire may satisfy a nation's desire for military advantage or recognition as a world power. Imperialism has definitely played its role in our lifetime as well as in the 19th century. First of all we attacked Iraq regarding a power issue. We believed they had some powerful items in which could be harmful to our nation so we decided to attack them to ensure our security. Another one is how we attacked Japan because they were becoming to powerful. We have done a lot to these countries just so we could have the security of keeping our power. Military reasons are also another reason for Imperialism.   Ã‚  Ã‚  Ã‚  Ã‚  Since ancient times, nations have absorbed territory near their borders to protect themselves from foreign attack. This kind of territory could be used as kind of a cushion support. This way they have land around them to help them stay secure. In the late 1800's, many European powers had colonies throughout the world where their ships, both naval and merchant, could take on supplies. Imperialism can also be encouraged by patriotism, religion, and a sense of cultural and racial superiority. During the late 1800’s, a strong feeling of nationalism swept most European countries.

Business and Administration Hint and Tips Essay

Plagiarism – learners are reminded that plagiarism is not acceptable under any circumstances and that learners who persist on plagiarising work could be removed from the course. If you wish to use other information you have researched beyond the course materials: 1. Make sure it is additional to the Business Administration course material. 2. Make sure it supports/is relevant to your answer. 3. Quote the source. The main thing to remember when constructing each answer is to be as robust as you can. Try to include as much relevant detail from the learning materials as you can. It is very important to use your own words. The following information should be helpful to you. If you have any queries get in touch with your tutor using v-mail. Section 1 Q2. As well as the learning materials the website http://smallbusiness.chron.com/information-technology-business-success-4019.html gives some good information regarding the benefits IT can bring to a business. Section 2 Q1. Why is it important that you know what you are required to research and having a date to have the research completed by? If you didn’t have either of the above what could be the possible outcome? Q2. This question is in three parts which all need to be answered fully. Break your answer down into the areas of research, organising & reporting information. How would you conduct your research? The information you collected how would you organise it? How would you present your findings? Q3a. This question also needs to be answered in three parts. How is information archived? How would you retrieve the information you have archived? If the information is no longer required how is it disposed of? Q3b. Are there any legal requirements that relate to the storing of information? Is there any specific legislation relating to the industry you currently/have worked in? Section 3 Q1. Why is it important that documents are fit for purpose? Think about the structure, the content of the document & what impression will it have or the person reading the document. Q2. Complete all sections of the table. Consider would a business letter be used? When are formal reports used? When would sending an email be appropriate? Section 4 Q1. It is worth considering the 5 P’s for this question proper planning prevents poor performance. Without proper planning how would the document appear? Q2a. Would you be the only person to check a document is correct? Are there tools you can use on a computer to check the spelling & grammar of documents? Q3. Why is it important that personal information does not fall into the wrong people? What could happen to the company if this happens? Q4a: You need to give the different types of documents that can be produced from notes and describe how these documents would look. What information would you expect to find on a letter for example? Q4b: When taking notes to produce a document what things need to be considered? Why are you taking notes? What type of document is to be produced from the notes e.g. business letter, formal report. Is it important that the notes are clear & there is sufficient detail in the notes?

History and analysis of primark stores - Free Essay Example

Sample details Pages: 8 Words: 2532 Downloads: 1 Date added: 2017/06/26 Category Fashion Essay Type Case study Did you like this example? Primark stores ltd is famous for the trading of high street quality clothes with simple designs and fabrics for all genders, ages and in various sizes to fashion conscious individuals for cheap prices. It was incorporated on 30 April 1948 and has its head quarters in Dublin, Ireland. The first store was opened in June 1969 and within a year 4 more stores were opened. Don’t waste time! Our writers will create an original "History and analysis of primark stores" essay for you Create order Primarks story has been one of continuous success as they now have 215 stores across United Kingdom and six other countries. Primark has about 21,827 employees, and operate from over 6.0 million square feet of selling. It is also a subsidiary of Associated British Foods Plc (ABF). As retailers they have various competitors such as Next Plc, Newlook, TK maxx and many others. In assessing the financial situation of Primark it is required to look at its balance sheet, income statement and cash flow statement. Ratio analysis was carried out for Primark over a five year period in order to identify the trend and also two of its competitors (Next Plc and Newlook) to be able to know how primark is doing in the industry. Revenue and Profitability Primarks revenue has been increasing considerably over the five years period. There was an increase in sales by 13.64% to pound;1743.01million in 2009, 18.13% to pound;1533.79million in 2008, 41.86% to pound;1298.4million in 2007 and 21.29% to pound;915.3million in 2006. Profit however increased by 78.77% in 2009 and 7.54% in 2006 and declined significantly in 2007 by 33.99 and 2008 by 55.07%. In 2009, Primark opened 5 new stores in different countries and thereby increasing profit and sales. The growth in Cost of sales and expenses exceeded that of sales hence a decline in profit. Interpretation of financial statements Ratios are essential in ascertaining the worth of a company. Ratios help in checking the performance of a company. This performance could be against past periods (Trend analysis), similar businesses and planned performance. Profitability and return ratios Gross Profit Margin Primarks gross profit margin in decreased in 2009 by 0.20%, increased by 0.4% in 2008, decreased by 3.2% in 2007 and increased by 0.3% in 2006. It is a measure of profitability in buying (or producing) and selling goods before any other expenses are taken into account (Mclaney, Atrill, 2005, pp215). A decline in these ratio shows that gross profit was lower when compared to the sales revenue. This also shows that the cost of sales was higher relative to the sales revenue in 2009 and 2007, than in 2008 and 2006. Next and Newlook had higher margins when compared to primark and continuous growth from 2005 to 2009 except the slight decline in 2008 for next and 2007 for newlook. 2005 2006 2007 2008 2009 Primark 20.5% 20.80% 17.60% 18% 17.80% Next Plc 26.10% 26% 26.50% 26% 27.40% New look 53.30% 56% 55.10% 58% 59% Net Profit Margin Net profit margin increased by 1.07% in 2009 but decreased by 3.05% in 2008, 5.68% in 2007 and 1.30% in 2006. In 2005 for every pound;1 of sales revenue an average of 11.90p was left as profit, after paying for other expenses of operating the business. This dropped significantly as the years progressed. In 2008 it became 1.87p, but and increase to 2.94p occurred in 2009. Newlook and Next did better than Primark. 2005 2006 2007 2008 2009 Primark 11.90% 10.60% 4.92% 1.87% 2.94% Next Plc 6.38% 6.90% 8.47% 8.06% 13.60% New look 13.60 % 13.3% 11.60% 14.40% 10.70% Return on capital employed (ROCE) ROCE is essential in analyzing the performance of a business. It compares the inputs (capital invested) with outputs (Profit) (Mclaney, Atrill, 2005 pp214). Primarks ratio declined continuously from 2005 to 2009. Next had the best ROCE but primarks did better than newlook and also had a high ratio which indicates that the profit generated in the utilization of the companys resources. 2005 2006 2007 2008 2009 Primark 0.62 0.61 0.60 0.58 0.55 Next Plc 1.70 7.20 1.73 0.81 0.64 New look 0.36 0.25 0.18 0.16 0.15 Return on asset (ROA) It measures productivity of the assets by indicating how effective the management of the company utilizes the earnings generated from the assets. Primarks ROA increased in 2009 by 1.54% but subsequently declined in the remaining years, in 2008 by 2.98%, in 2007 by 3.35% and 8.44% in 2006. For each pound invested in the asset Primark made 3.77p in 2009, 2.23p in 2008, 5.21p in 2007 and 8.56p in 2006. Next and Newlook utilizes the earnings generated from their assets when compared to primark. 2005 2006 2007 2008 2009 Primark 17% 8.56% 5.21% 2.23% 3.77% Next Plc 5.09% 5.88% 7.02% 6.56% 10% New look 18.2% 14% 10.90% 12.80% 10% Return on Equity (ROE) ROE measures the profitability of the returns of shareholders funds invested. †¦If an investment in a particular company presents a greater risk, the higher degree of uncertainty should be rewarded with a greater potential return (Kramer, Johnson, 2009). The ROE increased in 2009 by 9% but declined in 2008 by 17%, in 2007 by 11% and in 2006 by 1%. Next and Newlook generated returns fairly better than Primark. 2005 2006 2007 2008 2009 Primark 40% 39% 28% 11% 20% Next Plc 55.3% 26.19% 67.9% 35.6% 37.8% New look 37.7% 25.7% 21.2% 22.6% 21.4% Gross profit margin on inventory investment The GPMOI declined all through except in 2008 where it remained stagnant. This figures show that Newlook and Next are more productive than primark as they generate more returns on gross profit from the inventory invested when compared to primark. 2005 2006 2007 2008 2009 Primark 1.63 1.62 1.47 1.47 1.30 Next Plc 2.40 2.70 2.91 2.69 2.87 New look 8.43 7.02 6.49 7.33 6.21 Graph showing the profitability and return ratios Liquidity Ratios Current Ratio The current ratio indicates how well a company would be able to pay its short term obligations as they fall due. This relationship of current assets to current liabilities is an attempt to show the safety of current debt holders claims in case of default (Helfert,2001). The higher the ratio the more liquid the company is considered to be (Mclaney, Atrill, 2005, pp225). After the decline in current ratio to 0.2 in 2006 from 0.30 in 2005, there has been a continuous increase from then till 2009. Usually the accepted ratio is usually between 1 and 1.5. Primark and Next have low current ratios and this could be seen as an issue because it means they would not be able to easily pay their short term obligation. On the other hand, Newlook has sufficient funds to pay their debt as they fall due. If the ratio is high it could also mean that the company is tying most of its funds in cash and other liquid assets. 2005 2006 2007 2008 2009 Primark 0.3 times 0.2 times 0.21 times 0.26 times 0.27 times Next Plc 0.24 times 0.23 times 0.26 times 0.28 times 0.28 times New look 1.61 times 1.15 times 1.3 times 1.6 times 2 times Cash generated from operations to maturing obligations Primarks ratios increased in 2009 to 0.019 times from 0.017 in 2008. A major decline occurred in 2006 by 66.92% and then it improved from then on. Primark and Newlook have poor ratios. This means that it would be hard for them to meet their maturing obligations as they fall due. Higher ratios signify better liquidity. Next has a better chance of meeting their obligations. 2005 2006 2007 2008 2009 Primark 0.013 times 0.0043 times 0.0026 times 0.017 times 0.019 times Next Plc 0.036 times 0.074 times 0.14 times 0.25 times 0.31 times New look 0.015 times 0.018 times 0.036 times 0.006 times 0.008 times Efficiency ratios Average inventory turnover period It measures the number of day in a year that it takes a company to sell its inventories. It took primark 61 days in 2009 to sell or turn over the inventories held and when compared to prior years the difference is not much although there was an increase in 2009. Next has a better turnover period but Primark s turnover is better than that of newlook. A business will normally prefer a short stock turnover period to a long one, as funds tied up in stocks cannot be used for other purposes (Mclaney, Atrill, 2005, pp218). 2005 2006 2007 2008 2009 Primark 58 days 59 days 53 days 56 days 61 days Next Plc 54 days 47 days 45 days 47 days 48 days New look 49 days 66 days 69 days 70 days 85 days Average settlement period for creditors This ratio measures the number of days on average it takes the company to pay its creditors. Most companies try to increase their trade payable periods because it could be regarded as a short term free finance. It takes Primark and Next 24 days to pay their creditors in 2009 and there was not much difference in prior years. However, it took newlook 90days to pay its creditors. The reputation of the company is at stake when the number of days is high. 2005 2006 2007 2008 2009 Primark 27 days 27 days 20 days 25 days 24 days Next Plc 24 days 22 days 23 days 27.4 days 24 days New look 49 days 80 days 64 days 68 days 90 days Sales revenue to capital employed The sales revenue to capital employed ratio (or asset turnover ratio) examines how effectively the assets of the business are being used to generate sales revenue (Mclaney, Atrill, 2005, pp220). The higher the ratio the better. There was an increase in 2009 by 1.90%, in 2008 by 37.98%, in 2007 by 51.29% and 2006 by 2.86%. This signifies that there has been an improvement, since revenue increased in 2009 for each pound;1 of capital employed (pound;10.7) when compared to that of 2008 (pound;10.5) and that of the Next (pound;4.71) and Newlook (pound;1.43). 2005 2006 2007 2008 2009 Primark 4.89 times 5.03 times 7.61 times 10.5 times 10.7 times Next Plc 12.9 times 58 times 12.02 times 6.31 times 4.71 times New look 2.67 times 2.05 times 1.86 times 1.58 times 1.43 times Gearing ratios Capital gearing The gearing ratio measures the contribution of long-term lenders to the long-term capital structure of a business (Mclaney, Atrill, 2005, pp230). The capital gearing in primark, Newlook and Next are relatively low and this means that most of funds used in acquiring assets and ongoing operations are the funds invested by shareholders. 2005 2006 2007 2008 2009 Primark 1.10% 7.70% 8% 10% 9% Next Plc 0% 0% 0% 0% 1.5% New look 1.9% 4.4% 5.6% 6.1% 0% Debt to worth ratio This ratio measures the financial strength of a company by comparing the amount owed to creditors to the funds invested by the shareholders. It is exposes the debt of a company. 2005 2006 2007 2008 2009 Primark 2.42 5.58 6.59 8.58 7.98 Next Plc 15.2 67.2 13.5 6.69 4.51 New look 1.02 1.01 1.07 0.85 0.61 Interest cover This is signifies the number of times the profits of the company covers the interest owed to creditors. The ratio declined dramatically from a position where profit could cover interest 6.4 times in 2006 to 1.39 times in 2007, 0.52 times in 2008 and 1.36 times in 2009. Newlook has the highest ratio and this indicates the availability of funds to cover interest payable and this reduces the risk for lenders. A small decline in the profit of primark in 2009 would have left the business with insufficient funds to cover the interest payment. Next profits cover its interest by 5.67 times. 2005 2006 2007 2008 2009 Primark 0 times 6.4 times 1.39 times 0.52 times 1.36 times Next Plc 1.94 times 2.24 times 2.43 times 2.68 times 5.67 times New look 96.4 times 24.6 times 7.47 times 13.4 times 106 times Productivity ratio Sale/employee Every company would like to have a high ratio because it shows the effectiveness of the employees in that company. Primarks ratio increased in 2009 by 8.55%, in 2008 by 7.52% and declined in 2007 by 1.75% and 2006 by 8.26%. New branches where opened in 2009 and 2008 hence increasing the number of employees. This ratio indicates that the employees have been working effectively. Next is fairly better than primark in terms of productivity of the employees in relation to sales revenue but primark did better than newlook. 2005 2006 2007 2008 2009 Primark pound;75,906 pound;69,636 pound;68,420 pound;73,567 pound;79,856 Next Plc pound;73,189 pound;70,375 pound;72,348 pound;73,698 pound;81,564 New look pound;63,175 pound;62,269 pound;63,200 pound;120,732 pound;63,617 SWOT ANALYSIS This is an effective business analysis model used in executing any companys internal and external analysis. Internal analysis considers the strengths and weaknesses of the company while external analysis considers the opportunities and threats faced by an organization. STRENGTH The organization structure of primark is simple and orderly. Primark provides high street quality clothes for all ages, gender and sizes for cheap prices and this is beneficial because their competitors (Next and Newlook) prices are not as cheap therefore greater number of customers in primark. They have been around for awhile (over 41 years) and have been a key player in the retail business and this gives the competitive advantage. They implemented the ethical trading policy which focuses on respect for workers, that is, improving the working lives of people across the globe that is within the supply chai n. Next and Newlook are also implement the ethical trade policy. Primark has won several awards. Some of which are the prestigious retail week award 2010 for outstanding contribution to retail, Multi Market Retailer of the Year Oracle World Retail Awards , Best Outfit for under pound;50 Award Fabulous High Street Awards 2010 and many others. During the recession Primark sales still increased by 41.86% while Newlook where majorly affected. Primark continued to thrive in the recession, with sales at the discount clothing chain up by 21% since last September. (Wearden, guardian). New look planned to get listed on the London stock exchange. The chain aims to expand to compete with other budget rivals such as Primark. It will also use the proceeds to pay down debt (Dailymail). Nexts turnover increased by 0.97% during the recession and this was because a major supplier was also affected by the recession. WEAKNESS Primark relies on customers to talk about their product since they h ave no form of advertisement. Competitors such as newlook and next rely on advertisement which is an advantage for them. Primark stores are usually crowded because the prices are cheap. The return process and payment for sales tend to be slow due to large number of customers. Unlike Next and newlook the customer service is faster as the queue is usually not as long as that of primarks. Primark does not fully comply with rules governing working conditions, living wages, working hours, legal requirements. Figure 1.1 shows the extent of their non-compliance. OPPORTUNITIES Opportunity to provide cheap quality clothes to fashion conscious individuals regardless of variation in age, gender and size in various countries in the world. THREATS They have big and established competitors who have also been in the retail business for awhile. Relying on people to do your advertising might not be a good idea because there is no guaranty that they are spreading good words about the comp any. PESTLE Analysis This is a model of business analysis that is used to understand the environment in which the company is operating in. It considers how various factors such as political, economical, social, technological, legal and environmental affects Primark. POLITICAL Primarks operations are subject to government policies and regulations such as tax policies, employment laws, environmental regulations, trade restriction, tariffs and political stability which affect the business costs. Most businesses tend to pass this cost to final consumers but primark keeps their overhead cost very low in order for them to sell to customers at a cheap price. Primark is a member of the Ethical Trading Initiative and they are determined to succeed on their own merit and not at the expense of others. Economic factors The economic factor considers economic growth, interest rate, recession, exchange rate and inflation rate. Primark is located in different countries and has glo bal presence. If the exchange rate of a supplying country increases this could affect primarks business or the interest rate of creditors increasing. Primark has grown significantly in the past years. In 2009, Primark opened 5 stores in various countries. Social Factor Primark has a corporate social responsibility which aims at giving all employees equal opportunities, treating suppliers fairly, supporting and respecting local communities and taking environmental responsibilities seriously. Technological Factor There is rapid change in technology and every organization should try to be at par with the change. Growth and development would be impeded if an organization does not meet the trend. In 2009, Primark invested in an auditing software (Entropy Software) that is designed to help in the effective management of suppliers with compliance to ethical standards. Primark has also set some targets to achieve in the coming year such as developing buyer reporting function on Entropy database, Launch ethical trading extranet (Online information resource) for suppliers and factories. Legal Factors The government regularly change laws in line with political polices thus causing businesses to respond to changes in legal framework. Environmental analysis Asides from Primark providing jobs for people in the environment they also support many local charitable organizations, community projects and they also replaced plastic carrier bags with paper bags thus reducing their impact on the environment. Conclusion