The Impact of Environmental Components on Business Operations

This assignment provides an understanding of various environmental components that affect business operations either directly or indirectly. It highlights the importance of catering to effective services for clients to gain their trust and loyalty. The assignment also explores leadership styles, such as democratic and autocratic, and how they influence workers' motivation in Tesco.

How Business Operate

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Importance of accounting for business success................................................................1
5.1 Different functions of HR department in business...........................................................1
5.2 Key features of employment legislation...........................................................................2
TASK 3............................................................................................................................................2
3.1 Accounting workshop.......................................................................................................2
TASK 4............................................................................................................................................3
4.1 An analysis on determination of roles of team members.................................................3
4.2 Team Development..........................................................................................................4
4.3 Need 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.............5
TASK 5............................................................................................................................................6
Covered in PPT.......................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment will include both intrinsic as well as extrinsic kind of components.
For example clients, government, rivals and so on. This is essential to examine their influence on
business operations (Welford, 2013). With aid of this, firm will gather data and information
which is required to complete marketing activities. Present assignment is based on Tesco which
is operating their business in retail segment. They are providing effective services and products
to customers. Fundamental targets of superior of to set some targets which need to be get
accomplished by workers within limited period of time.
TASK 1
Covered in PPT
TASK 2
2.1 Importance of accounting for business success
To regulate procedure of business in an effective manner, company requires proper
finance. This is must for an enterprise to use available resources effectually; therefore, they will
be able to cater qualitative items to customers significantly (Casadesus-Masanell and Ricart,
2011). There are several types of advantages which rendered accounting process to success as
well as prosperity:
 It is fundamental for finance unit to develop budget for each department so that they will
be able to perform overall business activities in a proper way.
 This is main responsibility of management to identify operational revenues which will be
generated through operations of business.
 An effective system needs to be utilized by firm; in this manner, they will be able to
maintain their market position with appropriate financial status (Mosco, 2014).
5.1 Different functions of HR department in business
Fundamental target of manager is to appoint talented and skilled manpower at workplace;
thus, they will be able to complete entire business operations in an effective way. Henceforth,
there are some types of activities which need to be executed by human resource and these are
stated as beneath:
Staffing: Aptitude test, group discussion and interview will be organised by manager of
an organisation to find out skills as well as capabilities of the candidate; therefore, they will be
able to choose best one amongst many people. It is must for superior to allot roles and duties to
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each employee according to their abilities; in this manner, they will easily accomplish their work
within limited period of time (Trevino and Nelson, 2016).
Training and development: This needs to provide by superior to their subordinates; thus,
they will be able to complete work up to the set standards. Various seminars or programs will be
conducted by human resource manager as it aids to enhance capabilities and skills in an effective
manner. Along with, they will be able to resolve any sort of problem effectually and
appropriately.
Recruitment: It is require for employer of human resource to appoint best and suitable
candidate; thus, they will fill the vacant position significantly. For above stated purpose, there
are many kinds of methods will be used by them, for instance transfer, promotion, employment
agencies and so on. Best suitable method will be used by organisation to fill the vacant place in
firm (Rummler and Brache, 2012).
Employee relations: If there is an effective relationship amongst staff members then they
will be able to complete their work properly. It aids to motivate them; therefore, they will be able
to accomplish their work in an efficient manner. This results to reduce clashes between
employees and they will easily determine appropriate solution.
5.2 Key features of employment legislation
Several laws and legislations are formulated by government of UK so that they will be
able to protect staff members within workplace. Fundamental aim of it to decrease inequality at
premises which can be in form of caste, gender, religion, race and so on. It is must for employer
to render minimum wages to employees as per minimum wages act. Along with this, there are
some more laws which need to be get implemented at workplace, such as health and safety act,
equality act, employment act and many more (Clark Jr and Babson, 2011).
TASK 3
3.1 Accounting workshop
Profit and Loss Statement for TESCO for the year 2017 are given below:
Income Statement
All numbers in thousands
Revenue 1/31/2017
Total Revenue 485873000
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Gross Profit 124617000
Cost of Revenue 361256000
Operating Expenses
Research Development -
Selling General and Administrative 101853000
Operating Income or Loss 22764000
Income from Continuing Operations
Total Other Income/Expenses Net 100000
Interest Expense 2367000
Earnings Before Interest and Taxes 22864000
Income Before Tax 20497000
Income Tax Expense 6204000
Minority Interest 2737000
Net Income 13643000
Dividend charges -
Net Income Applicable To Common
Shares 13643000
TASK 4
4.1 An analysis on determination of roles of team members
If individuals are working in group then, they will easily overcome from their
shortcoming. Persons who are working in team have different type of mind set. This will aid
them to complete their work within certain time duration. This will help them to improve their
abilities as well as skills effectually (Baden-Fuller and Haefliger, 2013). Being a part of group, I
analysed that this improves my satisfaction level and provide me growth and opportunities.
Along with this, I will easily sort out problems in an appropriate way. As a result, work will get
finished by me within certain period of time. Proper guidance are provided by leader to team
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members; thus, they will complete it with maximum effectiveness and appropriateness and in
addition requisite results will be attain by company. They will implement latest methods into
products as well.
4.2 Team Development
Manager of Tesco needs to develop some groups at workplace as this helps to improve
production. In this manner, company will render appropriate products and services at
marketplace. There are some stages which will comes under team development and these are
stated as beneath:
Forming: This is considered as first stage and as per this, group has to written down their
mission and targets. If group members are much familiar with each other then, they will easily
fulfil coveted objectives within certain time span (Zott and Amit, 2013).
Storming: In this, people are presenting their own styles. Conversation amongst
individual is much and tension will enhanced. HR will conduct some exercise which will create
some thoughts and make persons more effective so they will accomplish their responsibilities.
Norming: Under this, individuals get started noticing each other; thus, they will
recognise strengths of each others. This aids people to comprehend their duty in project. They
get started to respect each others. An appropriate relationship is maintaining by individuals;
hence, clashes get reduced and in addition problems will be sort out effectually.
Performing: It is the final phase under which employer has to give appropriate guidance
as well as counselling to staff members; therefore, they will be able to complete work with
maximum effectiveness. In this manner, production and profits of company will get improved.
Maslow's need hierarchy: With assistance of this hypothesis, needs and wants of staff
members will determined effectively. There are some basic requirement which they want to
fulfil, for instance shelter, food and water. If individuals are much motivated then, they will
easily accomplish their work with maximum effectiveness. In this manner, desired targets will
get finished timely. If basic wants get fulfilled then, they will move to the another level, i.e. they
want security and protection from their manager (McGrath, 2013). It is must to maintain
significant relations with co- workers through love, companionship etc. If their social desires get
accomplished then they will go to another level to complete their esteem needs which is must for
them. It is must for them to complete goals, i.e. achievement, confidence, respect and so on.
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Finally, each worker wants to get fulfilled their self needs like growth and success. This will aid
to encourage staff members regarding work.
Herzberg's Motivation -Hygiene theory: Two factor theory is another name of this. It
demonstrates that there are numerous elements at premises which aid to cater job satisfaction to
staff members. There will be some components which will provide them dissatisfaction as well.
It will not be treated as opposite to each other in any manner. This is fundamental for superior to
cater appropriate working circumstances as well as facilities to staff members; thus, they will get
motivated towards job and in addition accomplish work with maximum effectiveness (Welford,
2013).
Alderfer's ERG theory of motivation: It is also called as three factor hypothesis which
is much associated with existence, relatedness as well as growth. With assistance of this, staff
members will easily comprehend many types of elements. By understanding this, administration
will easily help workers into their success and development.
There are many kinds of style of leadership which will be utilized by Tesco and these are
described as below:
Autocratic style: As per this, manager will never take support of their workers into
process of decision making. This will reduce involvement of staff members at workplace.
Democratic style: This method will help to increase participation level of employees.
They will provide their suggestions to superior which work as a motivation for them.
Laissez-Fair style: According to this, leader allow persons into decision making process.
It caters freedom to people; thus, this will assist to take judgement proficiently (Casadesus-
Masanell and Ricart, 2011).
4.3 Need of leadership and motivational style in context with different situations
Manager of an enterprise need to develop some abilities related to motivation; therefore,
staff members will confront various issues without any obstacles. This aids to inspire individuals
to accept modifications. To analyse workers performance, leadership abilities will be used by
superior because this also aid to determine their requirements. In this manner, they will be able to
examine those methods through which weaknesses of employees will get removed and coveted
targets and objectives will attain significantly (Mosco, 2014).
4.4 The way leadership style and motivational skills are used to influence workers
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Many problems are facing by Tesco on continuous basis. This is connected with
motivational as well as leadership abilities which are using by manager to sort out any type of
troubles. For an example: latest methods will be implement by association and for this, they will
take assistance of Maslow theory, because it aids to comprehend requirements and demands of
staff members and democratic leadership styles as well. Similar to this, if autocratic styles is not
using in firm then, this helps to motivate workers regarding working and they will embrace
alterations without any issues (Trevino and Nelson, 2016).
TASK 5
Covered in PPT
CONCLUSION
From above assignment this has been understood that there are many types of
environmental components which will cater affect on operational activities of business either in a
direct or indirect manner. By analysing this, manager will easily run business significantly. It is
required to cater effective services to clients as this helps to gain their trust as well as loyalty.
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REFERENCES
Books and Journals
Baden-Fuller, C. and Haefliger, S., 2013. Business models and technological innovation. Long
range planning. 46(6). pp.419-426.
Casadesus-Masanell, R. and Ricart, J. E., 2011. How to design a winning business
model. Harvard business review. 89(1/2). pp.100-107.
Clark Jr, W. H. and Babson, E. K., 2011. How benefit corporations are redefining the purpose of
business corporations. Wm. Mitchell L. Rev.. 38. p.817.
McGrath, R. G., 2013. The end of competitive advantage: How to keep your strategy moving as
fast as your business. Harvard Business Review Press.
Mosco, V., 2014. Political Economy. In The Routledge Companion to Global Popular Culture.
pp. 35-44. Routledge.
Rummler, G. A. and Brache, A. P., 2012. Improving performance: How to manage the white
space on the organization chart. John Wiley & Sons.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for
strategic analysis. Strategic Organization. 11(4). pp.403-411.
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