How Business Operate

This presentation discusses the types of organizations in the public and private sectors in the UK, different business structures, and the impact of the economic environment on organizations. It also explains the importance of customer service and customer profiling for the success of an organization.

HOW BUSINESS OPERATE

Table of Contents
TASK 1 - The Business Environment
TASK 5 – Customer Service

1.1 Discussing types of organisations found in public
and private sectors in UK
• The public sector organisations in UK are direct
administration company funded through the taxes garnered by
government and thus, production is met without having view
to attain profits.
• The example is NHS which is funded by direct taxation.
• Another type of organisation is state-owned entities which are
purely owned by concerned states and exercises full control
over company.
• However, this type of public organisation differs from direct
administration as profit earning is main motive and partial
control is observed by the government.

Cont.
• The private sector organisations are sole proprietorship,
partnership, limited companies etc.
• The partnership is formed by two or more partners which
share profit and losses on equal basis.
• Sole proprietors are only owners of business and as such, have
limited liability.
• The limited companies are funded with the help of
shareholders who subscribes for its shares.
• Shareholders have limited liability as they are liable to pay for
quantum of shares held.
• M&S is a private firm.

1.2 Explaining different structures within the
businesses in the country
• There are various structures of organisations in
UK listed below-
• Sole proprietor-
• The business is run solely by owner and has
unlimited liability to discharge his dues and
obligations.
• It is operated for earning profits, further no
legal formalities are to be complied with.

Cont.
• Private Company-
• Organisation is traded with the help of
shareholders' investment and has a separate
legal identity from the owners forming it.
• Shares cannot be traded in public.

• Public Company-
• The formalities are same in public company which are found in private
enterprises.
• However, shares are easily traded and subscribed by public.
• Limited Liability Partnership (LLP)-
• The idea of LLP is to earn profits and minimum two members become
partners and share profits and losses in accordance to ratio of capital
contributed by them.
• Non-Profit Company (Guarantee)-
• These are also called Limited by Guarantee organisation as profit-earning
motive is not main purpose.
• Charitable donations are made by company.

1.3 Identifying a named business and discussing local,
national and global economic environment impacts on
organisation
• Tesco Plc is one of the biggest organisation in UK engaged in
food retailing business and earning profits in effective way by
satisfying customers.
• Local environment-
• The local environment impacts Tesco as it has to comply with
various norms in order to provide customers better quality of
products.
• Needs and preferences of consumers should be evaluated so
that they may be satisfied with items imparted by organisation
up to a high extent.

Cont.
• National environment-
• It consists of various legal norms which are to be considered so that
operations can be conducted without any difficulty.
• Firm is influenced by interest rate implemented by Central bank, inflation
and related factors.
• Global economic environment-
• The international economic environment affects organisation.
• Change in taxation, fluctuations in exchange rate directly affects operations
of Tesco.
• The demand in international market by customers and taxes levied by
government to reduce imports influences organisation quite adversely.

6.1 Explaining impact of customer service on success of
organisation
• The impact of customer service on organisation which
provides success in the best possible manner.
• Customers' become loyal to organisation as it company
imparts services in effective way.
• Furthermore, company is able to expand its operations in
global markets and earn higher amount of revenue.
• Furthermore, firm can easily attain broaden customer base and
as such, market share is expanded with much ease.
• Hence, providing better customer services, organisation can
accomplish desired goals quite easily.

6.2 Explaining benefits of customer profiling to
company
• The benefits arrived due to customer profiling are discussed below-
• Identification of potential markets-
• The markets are tapped with the help of customer profiling.
• More requirements of consumers can be identified which will be beneficial
for organisation in garnering additional revenue
• Enhancing marketing-
• Marketing can be done in accordance to target customers which will
purchase products and thus, penetration would be helpful.
• Better sites to target customers-
• Target customers may be identified in particular place and thus, sales are
achieved.

REFERENCES
Brumana, M., Minola, T., Garrett, R. P. and Digan, S. P., 2017. How Do Family Firms
Launch New Businesses? A Developmental Perspective on Internal Corporate
Venturing in Family Business. Journal of Small Business Management.55(4).
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Evans, G., 2017. Implementing e-government: An executive report for civil servants
and their advisors. Routledge.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice
and the idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
Young, K. and Pagliari, S., 2017. Capital united? Business unity in regulatory politics
and the special place of finance.Regulation & Governance. 11(1). pp.3-23.

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