How Business Operate

This presentation explores how businesses operate in different environments, including the classification of businesses based on public and private sectors, the structures within these businesses, and the implications on business in local, national, and global economic environments. It also discusses the impact of customer service and the benefits of customer retention.

How Business Operate
(TASK 1 & 5)

Table of Contents
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
Functions of a company are much affected by business environment which
includes many internal and external factors. It includes employees,
suppliers, customers and so on. These elements which come under macro
environment are generally beyond control of organisation. Apart from
these, business environment is more dynamic and complex in nature as it
keeps on changing. Therefore, it is necessary for management to apply
changes in operational activities so that impact of these factors can be
reduced. In order to understand how a company operates its business, this
report has been made.

Type of business on the basis of private and public
In marketplace of UK, companies are generally divided on the basis of
their business criteria. Organisations in private sectors are classified
on the basis of ownership like sole proprietors, partnership, joint
corporations and more. These firms are operating business to earn
more and more profit as well as government has no control on them.
While firms under public sectors are fully controlled by regulatory
bodies with common aim is to provide welfare to people.

Different structures of business
Enterprises under public and private sectors are also divided on the
basis of their structures through which they carry their operations
Public organisation-
Vertical structure- In this type of structure, industries have several
directors who are responsible taking important decisions which are
used in making policies, programs and operational procedures. It
includes corporations like Military.

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Horizontal Structure- It embodies with few directors who have
equal responsibility as well as corporate each other in managing the
organisation.
Matrix Structure- These structures are created mostly in
government agencies in order to handle complex situations

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Private Organisation:
Directors:- Private companies have at least one director who takes
entire decisions and manage day to day operations.
Company secretary:- Secretary are also acts as directors who are
responsible for administrative matters as well as manage official
records.
Shareholders:- An industry has number of shareholders without
whom it cannot exists. It includes members associated with firm,
investors, suppliers and more.

Implications on business at local, national
and global economic environment
In order to expand growth of business, a company always seeks to
carry its operations in another locations. For this purpose industries
are needed to concern on rules and regulations of countries where
they want to bring their business. It includes factors like political,
economical, environmental etc. which impact on functions in a great
manner. But among these elements, local and global economic
environment create more impact.

Impact of customer Service
Business of hospitality sector is focus more on providing
effective services to people. Management of organisations
come under this sector formulate effective strategies in order
to give good services to customers. This process would help
in retaining them for longer period of time. The main impact
of providing impressive services to people is that it facilitates
industries to gain their growth and profitability in a required
manner.

Benefits of customer Service
Customers are like oxygen for sustainability and growth of a business.
Therefore, industries of all sectors focused more on providing good
services to them.
Effective communication:- When employees of a firm know profile of
customers then they can interact with such people easily.

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Reduce the competition :- By making good interaction with
consumers, it is easy for firm to keep interest of them with products
or services for longer period of time.
Enhance profitability:- Getting retention of consumers always
prove in increasing growth and profitability of a company like
Marriott hotel. Because of this, firm gets success in carrying out its
business in more than 85 countries.

Conclusion
From this assignment it has concluded that to operate a business whether
of private or public sectors, it is necessary to concern on factors
which impact on their functions. In order to reduce such impact, a
company's managers are required to introduce best employs in firm
as well as engage them inn group task. Along with this, to get a
proper work of them, managers should focus on developing their
skills and team development. Further to increase growth of business,
it is essential for firm to provide effective services to customers.

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.