Business Environment Impact & Strategies

This assignment examines the impact of various factors on businesses operating within the UK's environment. It explores how companies can leverage these factors to achieve growth and profitability. Key areas covered include analyzing the external business environment, developing effective strategies to mitigate challenges, and building strong customer relationships. The report emphasizes the importance of adaptability, innovation, and a commitment to social responsibility for sustainable success in today's dynamic market.

HOW BUSINESS
OPERATES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different types of public and private organization in UK................................................1
1.2 Different structures within businesses and reason for variation.......................................1
1.3 Impact of local and global economic environment on selected business.........................2
TASK 2............................................................................................................................................2
2.1 Importance of accounting for business success................................................................2
5.1 Functions of HR department in business..........................................................................3
TASK 3............................................................................................................................................3
Profit & Loss Account for Marriott Hotel..............................................................................3
TASK 4............................................................................................................................................4
4.1 Role of team-members and own.......................................................................................4
4.3 Role of leadership and motivational style in context with different situations................5
4.4 The way leadership style and motivational skills are used to influence workers.............6
TASK 5............................................................................................................................................6
6.1 Impact of customer service on business success..............................................................6
6.2 Benefits of customer profiling to business.......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Today in competitive world, business environment has become dynamic in Functions of a
company is affected by micro and macro environmental factors like suppliers, laws and
legislations, ethics, CSR activities and more. These elements are directly affected the operations
and policies of organisation. Therefore, in order to operate a business at local and global level,
managers of industry needs to analyse impact of the same. Because these attributes are generally
used to force employers to make changes in policies and strategies (Warner, 2018). Marriott
Hotel which is the fourth largest international firm of UK in tourism sector, has taken under this
report. This company operates its business in many countries all over the world. Present
assignment has disclosed some sorts of organisations come under public and private sectors
along with their different business structures.
TASK 1
1.1 Different types of public and private organization in UK
Organisations come under public and private sector companies are classified according to
business in which they operate in. Industries which are under control of Government are public
sectors while others come in private. Private sectors are defined in terms of ownership such that
sole proprietors in which business is run by single owner. While in partnership firms, business is
run by two or more business partners. In context with public organisations, it has no limit of
ownership as business is run in order to serve mankind (Petro and Gardiner, 2015). In UK, Royal
Bank of Scotland, BBC and Ministry of Defence are some public organisation while M&S,
Marriott Hotel and Nestle are private associations.
1.2 Different structures within businesses and reason for variation
Associations of UK have different business structures according to their objectives. These
organisations are generally come under public and private sectors with different purpose but
have common aim is to improve standardisation of people.
Public organisation- Structure of public sectors are classified according to number of employers
as:-
 Vertical structure- This structure of structure is generally seen under military areas
where decision are taken by several directors. These persons are responsible building
policies, programs and various procedures.
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 Horizontal Structure- Law agencies has taken this type of structures at their workplace
because these corporations have few number of directors who made important decisions.
 Matrix Structure- This structure are generally seen under governmental agencies in
which all persons are equal and make decisions with collaborating each order.
Private Organisation: These enterprises are run their business in order to generate more and
more profit by providing effective services to customers. Business structure of such companies
can be classified as- Directors:- It is necessary for private industries to have one director at least who is able
to make important decisions according to company's benefits. Company secretary:- In the absence of directors in a firm, secretaries are responsible to
make decision of administrative matters and maintain official records.
 Shareholders:- Employees, suppliers, investors and more are shareholders of company
who are responsibility for existence of company's business.
1.3 Impact of local and global economic environment on selected business
For expansion of a company, management need to look out various factors which impact
on it either positively or negatively. These factors include technology, environment, political
rules and more which are vary according to country. In present scenario, global and local
environment of a territorial region impact on company's business in a wide manner. Marriott
Hotel has expanded its business already in 47 countries of different location. Therefore, it is
compulsory for management to comply the business according with rules and regulations of
these regions (Palattella and et. al., 2016). The main impact of globalization is that it makes
changes in currency rates due to which profitability of organisation has also influenced.
TASK 2
2.1 Importance of accounting for business success
Managing accounts is the most essential part of every association whether small or big. As
it helps in keeping the record of finance as well as controlling and managing cash related
activities in a proper manner. People in account and finance department are used to keep record
of daily transactions of office and prepare records, income statement etc. in order to track
position of company. In Marriott Hotel, management of accounts helps in developing packages
of travel, planning tourism related activities and more.
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5.1 Functions of HR department in business
Human resource department of an association holds several responsibility like providing
required staff within all divisions of company as per need of job, ensuring healthy and safe
environment for them, giving essential trainings and so on. In Marriott Hotel, its HR managers
are mainly concern on recruiting staff that are highly skilled and experienced as well as can be
able to speak and understand different kind of languages. As in tourism industry, employees are
needed to deal with guest who belongs from different countries so, it is essential for them to gain
knowledge of various languages so that they can deliver effective services
5.3 Key features of employment legislation
Employment legislations are made in order to protect people from exploitation and
discrimination which could be occurred on the basis of different characteristics they have (Omar,
Leach and March, 2014). It includes factors like difference in sex, gender, race, colour and
nationality etc. With this assistance, UK Government has established various laws like Minimum
Wage Act, Employment Act and more. These laws are helpful in reducing discrimination as well
as improving working condition of employees in an organisation. Therefore, for this procedure
Marriott Hotel provides healthy and safe working environment to workers.
TASK 3
Profit & Loss Account for Marriott Hotel
Revenue 12/31/2017
Total Revenue 22894000
Cost of Revenue 19192000
Gross Profit 3702000
Selling General and Administrative 894000
Non Recurring 159000
Others 290000
Operating Income or Loss 2359000
Income from Continuing Operations
Total Other Income/Expenses Net 726000
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Earnings Before Interest and Taxes 3124000
Interest Expense 288000
Income Before Tax 2836000
Income Tax Expense 1464000
Net Income From Continuing Ops 1411000
Net Income
Net Income 1372000
Preferred Stock And Other Adjustments -
Net Income Applicable To Common
Shares 1372000
Interpretation: As per above P&L statement, it has interpreted that Marriot Hotel has
22894000 total number of revenues in the year 2017. While in operations this firm has lost
2359000 and the end of financial period it has received amount of 1372000.
TASK 4
4.1 Role of team-members and own
When people engage in a team to do a common task then it will be easy for them to
accomplish the same in appropriate manner (Mackey and Sisodia, 2014). As by this process, they
can generate a relationship between those are unknown for them and have different background.
In the same procedure, I have also being a part of team for completion a major project. So, have
learnt a lot like before being in a group my patience level was down. But after doing a common
task with others I am able to behave calmly behave with others. Leader of this team has given us
various responsibilities according to abilities and knowledge we have. Every person in my group
has able to do any type of task. So, have worked with them teach me skills which I haven’t
possessed before.
4.2 Team Development
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Engaging employees in a group task helps an organisation to achieve success of business
in a higher manner. Therefore, management of a company needs to build some strategies which
are used to engage people in group task (Weiss, 2014). For this process they are required to focus
on stages of team development as well as adopt some motivational theories and leadership style.
Stages of team development – It includes five types of stages that are-
Forming: In this initial process, management is required to introduce each team-member with
each other.
Storming: It is the second phase in which each member of team give their best in order to show
their abilities. So, chance of conflicts naturally occurs among them.
Norming: In order to reduce conflicts and make a good relationship between people of group,
leaders are required to influence them about benefits of working in team. This will prove in
making collaboration among them.
Performing: After norming stage, people used to behave each other in calm and friendly as well
as help in accomplishment of task successfully. Therefore, in this phase company has got
achievement of a project in short period of time due to team-work.
Adjouning: It is the last stage in which all members come with each other and enjoy the party of
success.
Motivational theories – To complete requirement of every stage in a proper manner,
managers are needed to adopt some motivational theories like Alderfer's ERG theory,
McCelland’s Need and Maslow’s Hierarchy. Concept of these theories helps in encouraging
members of team to boost their morale up and complete a task successfully.
Leadership styles- In order to motivate workers and influence them towards objectives
of a task, leaders and managers are needed to change their styles of leadership (Doppelt, 2017).
They can adopt situational, contingency and democratic leadership styles according to type of
situation.
4.3 Role of leadership and motivational style in context with different situations
. Leaders are required to change their styles according to situations vary in team of an
organisation. When people are working in team then as per different skills and knowledge, many
differences are occurred among them. Therefore through motivational theories and leadership
styles, group-leader becomes able to resolve their conflicts and engage them in team. Theories
like McCelland’s Need and Alderfer's ERG are used to motivate workers to work properly.
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While if problems arise like conflicts, resistance of change and more are solved by managers
with the help of leadership skills.
4.4 The way leadership style and motivational skills are used to influence workers
In order to influence workers, leaders and managers are used to possess some leadership
and motivational styles in them. As a team cannot achieve success in a given period of time
without a perfect leader who manages all work of them. In Marriot Hotel, managers are used to
influence staff members to deliver good services to customers as per their demand. They use
many motivational theories like McCelland’s Need Theory, through which managers can identify
needs of team-members and fulfil the same on time. Along with this, according to situation they
use various leadership styles also (Bernstein, 2015). In general, leaders use democratic style to
encourage workers towards business objectives
TASK 5
6.1 Impact of customer service on business success
All organisations of private and public sectors concerns more on providing effective
services to customers as it impacts directly on their profitability. In tourism sector, retention of
old customers is much necessary for its growth. Management of these companies are much
concern on delivering high services to customers according to their demand and need. This
would help in earning more and more profitability as well as success of business in high manner
(Reim, Parida and Örtqvist, 2015). With this assistance, Marriott Hotel has made various
modifications in services which aid them to get interest of customers easily.
6.2 Benefits of customer profiling to business
Customer profiling is helpful in understanding needs and demands of them for company's
management. Therefore, for this process managers of Marriott Hotel used to make good
interaction with its guests and make connection with them through various applications of social
sites (Adjei and et. al., 2014). Some main benefits of customer profiling for business success of
industries are:-
 Effective communication:- When employees of a firm know profile of customers then
they can interact with such people easily. As staff members will know how to deal with
their demands by communicate with them properly as well as complete needs on time.
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 Decrease the competition :- Making good connection with old consumers, help
managers to retain them with services for long time. This would help in decreasing
competition of a firm if it has large number of customers.
CONCLUSION
From this report it has suggested that is a company wants to carry out its business in a
profitable way then management has to analyse impact of various factors which are present
under business environment. Along with this, in order to turn impact of factors on growth of
organisation in a positive way, employers have to build strong strategies and policies as well as
made changes in entire operations. Further, to gain competency firms of UK are required to
provide effective services to customers.
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REFERENCES
Books and Journals
Adjei, H. and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4). pp.36-47.
Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University
Press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Mackey, J. and Sisodia, R., 2014. Conscious capitalism, with a new preface by the authors:
Liberating the heroic spirit of business. Harvard Business Review Press.
Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
pp.657-678.
Palattella, M. R. and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-
527.
Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on
project portfolio success, effectiveness and business efficiency for project-based
organizations. International Journal of Project Management. 33(8). pp.1717-1729.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Warner, K., 2018. Building rules: How local controls shape community environments and
economies. Routledge.
Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
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