How Business Operate

This presentation provides an overview of how businesses operate, including the classification of business on the basis of public and private sectors, structures within the business, implications on business at local, national and global economic environment, impact of customer service, benefits of customer retention, and more. The presentation focuses on Hennes & Mauritz, a multinational clothing retail store, as a case study.

How Business Operate
(TASK 1 & 5)

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

INTRODUCTION
To operate the business it is important that company
understands the environment as this is the factor that affects
the business operation internally and externally. Therefore, it
is essential that organisation learn about all the component
that are present at market place. This includes legal,
political, socio-cultural environment and political element.
Hennes & Mauritz is a multinational clothing retail store and
its headquarter is in Stockholm, Sweden

Type of business on the basis of private and public
Mainly there are three types of organisation that are required to be
understood but in this assignment the focuses will be on public
and private.
Public Organisation: Companies that comes under this are basically
owned by the regulatory bodies.
Private Organisation: Business that comes under this are owned and
run by an individual who single handedly regulate their company

Implications on business at local, national
and global economic environment
H&M is a leading company and deals in fashion and clothing for
men, women, teenagers etc., they are operating their business in
around 62 countries in which the are having approximately 4,500
stores. Number of employees who are working in these shops are
close to 132,000 according to the report published in 2015. For
establishing their firms in different area H&M has chosen the
nations that are politically stable and developed for example:
Denmark, Finland, Germany, France and many more. Hennes &
Mauritz currency translations had lower down because of which
their sales and profitability

Impact of customer Service
By providing better services to its customers, company can
retain the loyalty of customers this will help the
organisation in fulfilling the demands according to the
needs and wants of clients. H&M is manufacturing
products according to the current market situation because
of which their sales and profitability has increased. This is
having a direct impact on the company's reputation and
through this, firm is establishing their organisation in
different countries as well.

Benefits of customer Service
Customer's reviews are very important and to provide excellent services
H&M is using latest tools and technologies. Feedbacks help the company
in evaluating their drawbacks and positive outcomes which they can
further use for their future proceedings. Apart form this, organisation has
appointed expertise who can give them suggestions about what strategies
will be effective as per the current market situations. Negative reviews
may have a bad impact on the firm and employees may feel discouraged.

CONCLUSION
From the above report it has been concluded that, business
environment plays an important role in operating their firms
in an effective manner. Department of HRM also help the
organisation in some or the other manner as they hire fresh
candidates for different departments who are skilled in their
respective fields. Therefore, for an effective growth leaders
optimise different leadership and motivational theory so as
to encourage their worker. As a result an increase in
company's sales and productivity can be seen.

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.

Thank You!