How Business Operate

This presentation provides an overview of how businesses operate, including the classification of business, structures within the business, implications on business at local, national and global economic environment, impact of customer service, and benefits of customer retention.

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How Business Operate
(TASK 1 & 5)

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COVERED CONTENT
 Introduction
 Classification of business on the basis of public and
private sectors
 Structures within the business of Public and Private
Companies
 Implications on business at local, national and global
economic environment
 Impact of customer Service
 Benefits of customer retention
 Conclusion
 References

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INTRODUCTION
Internal and external factors of business environment create much impact on
operations of a company. These elements consists competitors, ethics,
corporate social responsibilities, stakeholders and more which demands a
firm to create changes in operational activities. Along with this, if an
association wants to move its business in other countries then it needs to
analyse factors like laws and legislations, political and economical
activities. For this assistance, a report has been prepared for TESCO
Company, which entails its business structure as well as how global factors
affect its operations.

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Type of business on the basis of private and public
Organisations which come under control of government are consider as
public and the rest one under private. Companies which come under
these sectors can be classified as:- Companies that included in
private sector are divided on basis of ownership like:-
Individual ownership: In this type of enterprises, business is run by
owners on individual basis.
Partnership ownership: Business in this sector is divided among
partners equally.

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Institutions under public sector are divided on basis of control:
State Government: It is consider as most appropriate factor for
companies in order to establish their business.
Central Government: Companies under this category are fully
controlled by national government.

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Different structures of business
In a country, various companies are run their business in own manner
according to different objectives. Therefore, all have different
structures as seen below:-
Sole trader: These are incorporated organisation in which business is
operated by an individual.
Partnership: In this section, business is divided among partners
equally. This would help in maximising benefits as partners shares
equal shares in profit or loss.

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Limited liability company: This concept was enacted in the year 1977,
under which owners used to make an agreement among partners. It
includes sharing of profit, loss or liabilities as per capital introduce
by them in business.

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Implications on business at local, national
and global economic environment
External and internal factors of environment affect the business environment
in a wide manner. It includes economic, political and legal environment
which impact at global and national level on operations of a company. In
context with TESCO, it is a retail company of UK which sales products
like clothes, food and electronic items. It has more than 6500 sores at
various location. Therefore, it is vital for organisation to follow all the
factors which can hinder their business operations.

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Impact of customer Service
For any company, it is prime duty of administration to provide effective
services to customers. Because consumers are like lifeline for them
whose enrolment impact a lot on profitability and growth of
business. Therefore, in this assistance management of TESCO
used to provide necessary training to existing and new employees.
These training assist workers to how to deal with customers and
fulfil their demands on time. A highly trained staff at stores help in
providing high satisfaction to people who used to come buy
products there in a perfect manner.

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Benefits of customer Service
Management of a company always try to keep interest of customers
towards its products. As gaining retention of them help in enhancing
sales performance as well as improving brand image of organisation
at marketplace. In context with TESCO, its management mainly
focus on identifying demand of people as well as completing the
same in a short period of time.

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CONCLUSION
From this report it has analysed that every organisation whether private
or public are needed to concern on various factors which impact on
their business environment. Along with this, they should focus on
strategies they used to get satisfaction of customers and if required
make modifications in the same.

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REFERENCES
Weiss, J. W., 2014. Business ethics: A stakeholder and
issues management approach. Berrett-Koehler Publishers.
Bernstein, M. H., 2015. Regulating business by independent
commission. Princeton University Press.
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.

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Thank You!