How Businesses Operate

This document provides an overview of how businesses operate, covering topics such as the business environment, functions, accounting, HR, team development, and customer service. It discusses the importance of understanding internal and external factors that influence business success and provides insights into various aspects of business operations.

3.23 How Businesses
Operate

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ONE......................................................................................................................................3
(1) Business Environment......................................................................................................3
TASK TWO.....................................................................................................................................5
(2) Business Functions...........................................................................................................5
TASK THREE.................................................................................................................................7
(3) Accounting Workshop......................................................................................................7
TASK FOUR...................................................................................................................................8
(4) Team.................................................................................................................................8
TASK FIVE...................................................................................................................................12
(5) Customer Service...........................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Environment is an aggregate of all the internal and external factors prevailing in
the environment. These include innovation in technology, fluctuating needs and wants of the
customers, economic changes, trendy markets and others. These causes great influence and
impact on the conduct of business. These need to be determined and updated effectively in order
to achieve growth and success.
TASK ONE
Discussed in PPT
TASK TWO
(2) Business Functions
(2.1) The importance of accounting for business
The accounting plays a vital role in conducting business activities. As the sound business
will attract the investors to invest (Andreini. and Bettinelli,, 2017). Further effective financial
information is beneficial for business in making business decisions. The reason major reasons of
its importance are:-
 Effectively evaluates the performance of business and keeps the business financial
sound.
 Proper accounting system will help the business to compliance statutorily. Further helps
the business to overcome its liabilities.
 It helps to create proper budget and devise financial strategies in order to gain profit.
 It helps the organisation to fulfil its obligations such as filing tax.
(2.2) The different functions carried out by the HR department in a business
The main functions carried out by Human Resource department are as follows:-
Personal Recruitment and Selection
The important function is to recruit and select individuals who possess skills, knowledge
and area of expertise. The HR manager illustrate proper plan to recruit talent which will
contribute its best towards organisational goals.
Positive Ambiance
HR manager causes positive work environment by influencing and motivating workers
towards common goals. Further gather information in respect of employee’s satisfaction.
Evaluate Employee’s Performance

The main function is to evaluate employee’s performance by taking corrective measures
so as to make their performance better. Thus, enables to achieve desired organisational goals
effectively.
.
Administration of Personnel
The central task is to effectively and efficiently manage the personnel department. The
task includes managing business contracts, payslips to employees, availing leaves and others.
(2.3) Key features of Employment Legislation
Legislation in respect of employment generally exists to protect the employer and
employees by providing them with appropriate rights (Shams and et. al., 2020). Further
legislation ensures whether the organisation is adhering the complied regulations and policies.
The main areas covered under the umbrella of employment legislation are:-
 Health and Safety Work Act 1974
 Equality
 Data Protection 1998
 Discrimination rights
Health and Safety
The aims to secure the health of the employees and also fulfilling their safety needs. Also
focuses to eliminate risk at workplace. The act provides the employees safe working conditions
and make sure that the safety standards are maintained in the organisation.
Equality Act 2010
The act aims to create work environment without making any discrimination towards sex,
caste, colour, religion, etc. The act provides equal legal framework for the employees working in
the organisation.

TASK THREE
(3) Accounting Workshop
Figure 1: Interim Results 2020/2021, Tesco Plc, 2021
Figure 2: Income Statement of Tesco Plc, 2021

Tesco invested valuable interest towards customers amid pandemic situation and
continued its business strategies in order to attain good returns.
Cash Profitability
The company earned profit of £(533)m amid pandemic situation. Throughout COVID-19
company focused on providing food, safety and supported the communities.
Customer Satisfaction
Food Sale was up 9.2% whereas clothing went down by 17.2%. Further online delivery
was doubled and reached to 1.5m slots a week. Also the customers were loyal amid pandemic
situation towards the company. The price kept by the company is low and customer purchase
every week. Also the company is adhering social norms and customers has given good rates on
safety.
TASK FOUR
(4) Team
(4.1) Describe the stages of team development
Team Development is the process of working collaboratively in order to achieve common
goals which benefits the organisation (Centobelli and et. al., 2020). Bruce Tuckman a
psychologist devised the five stage of development process which need to be adhered by teams
so as to perform better. The stages are discussed below.
Figure 3: Stages of team development diagram, 2021

Forming Stage
This is the stage of individual orientation in which they seek leadership and authority.
The member who has proper skill and knowledge is looked for to take the control in its hand.
The interaction in this stage is informal as member get to know each other in the orientation.
Questions which generally arises in this stage are “What are the expectations?” “What are the
capabilities?’
Storming Stage
This is considered as critical stage. The stage evolves the competitive spirit among
members and personality is also emerged which may result in conflicts. Team members may
decrease as they are required to put their energy into unproductive activities. Members may
agree or disagree team goals and thus, to get through the stage members are required to cross the
hindrances and resolve conflicts and form as effective team so as to achieve common goals for
long term (Dave, 2017).
Norming Stage
Unity emerges after member crosses the above stage. In this stage consensus emerges in
respect of leader and roles of members. Teamwork quality increases as the members concentrate
towards team goals. The conflicts and disagreement may led the stage back to previous stage.
Performing Stage
Team gets matured, well organised and functions effectively in this stage. Conflicts still
occur but members manages to resolve them. The team gets committed towards the team
mission. The stage led members to meet team goals.
Adjourning Stage
In this stage most part of goal is accomplished effectively by team members. The stage is
formed to give final touch to task and derive outcomes and efforts. The team members can get
reassign to other teams as the former team gets dissolved as soon as goals are accomplished. The
stage acknowledges the work and success of teammates. And the team gets devise again from its
initial stage.
(4.2) Carry out an analysis to determine own and others’ roles within a team
The efficiency of team increases when roles and responsibilities are determined. The role
which was given to according to my skills and knowledge was the role of leader. My role was to
lead the team effectively and efficiently towards organisational goals. The role was very
challenging to me as the duties assigned were to communicate common goals, led proper safety
practices accompanied by deadlines to achieve common goals. My difficult job was to motivate

them on right path and increase their morale towards team goals. Further delegated the task
according to the efficiency of team members. Also I effectively resolved the problems evolving
in the mid of stage.
(4.3) Three Motivational Theories
Maslow Hierarchy Needs
Maslow devised the motivational theory in order to increase the morale of employees
towards the organisational goals (Guy, 2017). Maslow bifurcated the basic needs and further
given them preference accordingly. The needs are
 Physiological Needs: These are the basic human requirements such as water, air shelter,
etc. which is required to survive and to attain quality life.
 Safety Needs: The need of safety encourages the employees to work effectively. These
are emotional security, insurance, law, etc.
 Love and belongingness Needs: These needs develops to form interpersonal relationships
in the organisation. These are trust, loyalty, appreciation, intimacy etc.
 Esteem Needs: Self-esteem is important need to be encouraged in order to achieve
desired goals. One’s reputation and dignity need to be maintained.
 Self-actualisation needs: It is attained on realising one’s potential which led to personal
growth and success.
Mayo’s Motivational Theory
The theory determined the motivational level of employees not only through monetary
reward or other factor but by working productively. Mayo Created matrix showing changing
scenarios of productivity (Ngai and et. al., 2018).
 Groups possessing low cohesive and low norms which led to ineffectiveness. Such team
are not long lasting. As the members are not motivated to provide excel outcomes.
 Groups possessing high cohesive and low norms causes negative ambiance. Further
negative behaviours are entertained more than positive behaviour.
 Groups possessing low cohesive and high norms has little positive impact. As the
teammates focuses on their personal success rather on team goals.
 Groups possessing high cohesive and high norms led positive ambiance on productivity.
Members supports each other and contribute best towards team goals. The lead team
towards success and also achieve personal success. Thus, forma strong network among
team members.

Vroom’s Expectancy Theory
The theory assumes the customer behaviour results from alternatives choices. Further the
theory determined the bases foe employee’s performance and links the motivation in order to
attain organisational goals effectively and efficiently (Ronald, 2019).
Expectancy
It is the belief that more the efforts more will be the performance. Management need to
determine right resources accompanied by right skills with the necessary support or supervision
as needed.
Valence
It refers to emotional attachment in respect of outcomes. Management need to identify
the value of its employee.
Instrumentality
It is a belief of receiving valuable outcome for their performance. Managers must fulfil
their promises.
(4.4) Types of Leadership Styles
There are many leadership styles, some of them are:-
 Autocratic Style
 Democratic
 Gratifier
 Laissez-Faire
 Authoritative
The Two of them are discussed below.
Autocratic Style
In this one person hold the control over the decisions and takes necessary decision.
Further takes less inputs from other members of team. They do not involve members in their
decision making (Suriyanti and et. al., 2020).
Democratic Style
It is known as participative leadership style which involves the participation of members
in the decision making process. Apple, Twitter are the famous examples who follow this
leadership style.
Authoritative Style
This style defines the best leaders accompanied by their confidence. Further it drives both
the employees and organisation towards common goals.

TASK FIVE
(5) Customer Service
(5.1) The impact of customer service on business success
Satisfied and happy customer increases the morale of organisation in conducting its
business activities. It builds strong relationship between customers and organisation. Customer
service will encourage them towards the company which will ultimately impact the sales.
Whereas, same goes for bad customer service, it will cause adverse impact on the sales of
company. The company is required to provide customer service in order to meet its objectives of
customer satisfaction effectively and efficiently (World Bank, 2017). It is considered as a key to
success and growth of the company. Good customer service will led positive interest of customer
towards the company.
(5.2) Customer Profiling
It refers as targeting right segment accompanied by right offering with an aim to increase
customer base and customer loyalty. The benefits of customer profiling are as follows:-
 It helps to attain precise knowledge of customers according to their segments.
 It led effective customer service which will ultimately led to an increase in customer
loyalty.
 Proper profiling will led to analysis the potential market i.e. help in market penetration as
to gain competitive advantage in the market.
 It will increase the response rates of the customers, as it will influence them to repeat
their business practice.
 Direct communication will led to understand their interest and enable organisation to
provide them valuable experience.
CONCLUSION
From the above report it is concluded that business environment need to be accessed
effectively to achieve organisational goals effectively. The report discussed the types of
organisation and its structure. Further features in respect of employment legislation is also
discussed. Thus, overall report has given the idea of operating business effectively and
efficiently.

REFERENCES
Books and Journals
Andreini, D. and Bettinelli, C., 2017. Business model innovation. Springer International
Publishing AG.
Centobelli and et. al., 2020. Designing business models in circular economy: A systematic
literature review and research agenda. Business Strategy and the Environment, 29(4),
pp.1734-1749.
Dave, B., 2017. Business process management–a construction case study. Construction
Innovation.
Guy, S., 2017. Mediating the environment in the property business. The business of greening.
Ngai and et. al., 2018. Business sustainability and corporate social responsibility: case studies of
three gas operators in China. International Journal of Production Research, 56(1-2),
pp.660-676.
Ronald, W.H., 2019. Managerial accounting: Creating value in a dynamic business
environment. MCGRAW-HILL EDUCATION.
Shams and et. al., 2020. Strategic agility in international business: A conceptual framework for
“agile” multinationals. Journal of International Management, p.100737.
Suriyanti and et. al., 2020. Planning Strategy of Operation Business and Maintenance by
Analytical Hierarchy Process and Strength, Weakness, Opportunity, and Threat
Integration for Energy Sustainability. International Journal of Energy Economics and
Policy, 10(4), p.221.
World Bank, 2017. About Doing Business.