Understanding Business Operations and Success

This assignment analyzes key factors contributing to successful business operations. It explores various motivational theories and leadership styles to understand employee engagement and performance. Additionally, it emphasizes the significance of customer profiling in meeting consumer demands and driving profitability. The report utilizes real-world examples and a case study approach to illustrate these concepts.

HOW BUSINESS OPERATE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Types of organisation found in public and private sector in United Kingdom.....................1
1.2 Different structures within the businesses in United Kingdom............................................2
1.3 Impact of local and global economic environment on business operation...........................2
TASK 2............................................................................................................................................3
2.1 Importance of accounting for business success ...................................................................3
5.1 Different functions carried out by the HR department in a business....................................3
5.3 Key features of employment legislation...............................................................................4
TASK 3............................................................................................................................................4
3.1 Information on the profit and loss account...........................................................................4
TASK 4............................................................................................................................................5
4.1 Analysis to determine your own and others’ roles within a team.........................................5
4.2 Notes which can be used to support future training events..................................................5
4.3 Appropriate use of different motivational theories in business activities.............................6
4.4 Impact of various leadership styles on employees................................................................7
TASK 4............................................................................................................................................7
6.1 Impact of customer service on business success...................................................................7
6.2 Benefits of customer profiling to a business.........................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment includes both external and internal factor that can affect the firm in
conducting their business. This includes elements like suppliers, latest technologies, laws and
legislation, market and social environment and many more (Charter, 2017). Therefore, it is
important that organisation should consider all the aspect for running their business in an
effective manner. Company that has been taken in this is Morrisons. This report will throw light
on types and structures of public and private sector in United Kingdom. Business functions are
also included in this assignment. Other than this, benefits of team work is mentioned in this
report.
TASK 1
1.1 Types of organisation found in public and private sector in United Kingdom
Companies that comes under private sector are not majorly under control of government
or ownership but sometimes they can collaborate with governmental body so as to deliver
appropriate stuff to its end customers. Whereas public are owned and operated by regulatory
bodies for the betterment of the citizens. Companies that included in private sector are classified
into two i.e.
INDIVIDUAL OWNERSHIP: It is considered as the oldest and simplest form in business
organisation. Solely the person is only responsible for any losses or profits (Sekaran and Bougie,
2016).
PARTNERSHIP ORGANISATION: under this, the risk are high and companies have limited
financial resources.
Organisations that comes under public sector includes:
STATE OWNERSHIP: it is determined as one of the suitable factor for establishing and
developing business according to the modern industries.
CENTRAL GOVERNMENT: companies that comes under this are fully controlled by the
regulatory bodies of the nation.
Therefore, different sectors plays an their role according to the market situations so that
they can help the country in increasing their GDP and national income (Shenkar, Luo and Chi,
2014).
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1.2 Different structures within the businesses in United Kingdom
There as various kind of business structures and it differs form country to country.
Therefore, United Kingdom is following four basic types of structure that are given below so as
to understand it in a better manner:
Sole trader: This is considered as an incorporated organisation that is owned by a single
person. Under this, small retail shops, musicians etc., it is the simplest form of business that can
be started by any person at any point of time if the individual have sufficient amount of money
(Storey, 2016).
Partnership: This includes two or more owners who merge or collaborate with their own
concern so as to get maximum benefits from the market area. Both the partner shares loss and
profit equally. Therefore, for working in partnership they have to sign a legal agreement under
which all the norms are included about the business.
Limited liability company: This concept was first proposed in the year 1977, under this
the LLC merge the element of corporation with other partnership or sole business owner. So, in
this, businessman are not responsible for debts and liabilities.
Therefore, companies in United Kingdom are running their business according to the
types that are mentioned above.
1.3 Impact of local and global economic environment on business operation
There are many factors that affect the business environment internally or externally. It is
important that organisation follows all the elements that can hinder their business operations.
Economic environment should be considered as an important factor because it helps an
organisation in fulfilling the demands and needs of a company (Ward, 2016). This will enable
them in providing all the goods and commodities right on time. Morrisons is a supermarket in
United Kingdom and provides items like food and drink beverages, clothings, books, magazines
etc., they are operating their business across Europe and has around 498 superstores across
England, Wales and Scotland. According to a current study done in August 2017, Morrisons'
was having a market share of 10.14% that was 0.86% which is less as compared to survey
conducted in the year 2015. As the organisation doesn't work globally because of which their
profit is low as compared with other organisations.
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TASK 2
2.1 Importance of accounting for business success
Accounting is determine as a common process through which all the data related to the
organisation is maintained according to day to day activities (Dunning, 2014). Therefore, it is
considered as a process in which al the information are recorded, summarized and analysed so
that organisation can get better results. Business accounting is very important for a company as
they provides quantitative information to different stakeholders and investors. Some of the
importance are given below:
Evaluating the performance of business: Accounting shows the financial statement of a
company in which balance sheet is formed so that firm can evaluate profit and loss account.
Under this, enterprise can analyse the growth compared to previous years.
Managing and monitoring of cash flow: This will help the organisation and provides an
overview about the cash and capital that is required for appropriate accounting system.
Helps business to be statutory complaints: Under this, it will assist the organisation in
preparing the budget according to the needs and wants of current market place. It includes
provident fund, pension etc.,
Assist in creating budget and future: Accounting aid an organisation in proper decision
making for future proceedings (Doppelt, 2017).
5.1 Different functions carried out by the HR department in a business
Human Resource department is considered as an important part of an organisations as
they provide them with basic facilities which are required by the company. Their main function
is to hire suitable candidates for their firm so that new candidates can help them in increasing
their sales and profitability. Apart from this, they monitor the whole business operations along
with the performance of employees as it will assist them in providing proper training
programmes which they can opt for enhancing their existing skills and knowledge. Along with
this, they tries to maintain a healthy relation between employees and subordinates so that all the
task can be accomplished in a better manner. Therefore, it can be said as Human resource
department is very essential for a company and it is required that candidates those who are
selected are eligible in providing services and facilities accordingly.
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5.3 Key features of employment legislation
For operating a business in an effective manner it is important that Morrison follows all
the rules and regulations that are formulated by the regulatory bodies in a nation (Palattella and
et. al., 2016). It is essential that company incorporate all the laws like anti discrimination that
protect individual from get discriminated on the basis of caste, gender, race, age, working hours
and many more. Other than this, health and safety legislations are also required to be followed as
this provides an individual security about their life. For instance anything happens while working
for the organisation than they can avail the rights for living their rest of the life. Morrison is
following all the laws and because of which they are able to sustain the loyalty of employees for
a longer period of time. This is enabling them in gaining better position at market area.
According to the law they are giving fixed minimum working hours along with fixed salaries.
TASK 3
3.1 Information on the profit and loss account
Profit and Loss of Statement of Morrison (2017)
Revenue 31/12/17
Total Revenue 3885290
Cost of Revenue 3146361
Gross Profit 738929
Selling General and Administrative 390440
Operating Income or Loss 348489
Income from Continuing Operations
Total Other Income/Expenses Net -1679
Earnings Before Interest and Taxes 355656
Interest Expense -
Income Before Tax 355656
Income Tax Expense 179006
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Minority Interest 750428
Net Income From Continuing Ops 176650
Net Income 91220
Preferred Stock And Other Adjustments -
Net Income Applicable To Common Shares 91220
As per the above mentioned table it can be evaluated that company's total revenue in
2017 was 3885290 which is higher according to the previous years. Their income before tax was
355656 and net income was 91220 receptively (Adjei and et. al., 2014).
TASK 4
4.1 Analysis to determine your own and others’ roles within a team
Team is determines as one of the essential factor in order to accomplish the targets and
objectives in a given period of time. In a squad every member is important as every single person
is good in some or the other field. Working in a team is always gives maximum benefits to an
organisation. Role and responsibility differs according to the qualities and skills that is acquired
by an individual. In a team my role is to give guidance and making strategies which company
can follow in order to achieve maximum benefits. For this, I take views and feedbacks from all
my employees so that their thoughts can be incorporated for the betterment of the organisation.
Through this, a healthy relationship is maintained in a company. Although my role is to show
appropriate path to employees but apart from by professional life I am very friendly with my
team members so that they can share their problems easily without any hesitation.
4.2 Notes which can be used to support future training events
For achieving a great result it is important that company builds a strong team who can
help the organisation in doing the same (Omar, Leach and March, 2014). Therefore, for
formulating a team it is required that firm consider all the steps that are mentioned below:
Stages of team development: According to Tuckman there are four stages of group
development that are mentioned below in order to understand it in an effective manner:
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Forming: This is considered when a group is in the initial stages. So, in the beginning the
members are cautious with their behaviour so that they doesn't face much losses. Conflict are
avoided in this stage.
Storming: Under this stage the chances of conflicts and competition is at higher due to
the reason that employees now are more confident as compared to times when they were new.
Norming: It is the third stage of development and in this others starts recognising the
other team mates and appreciate their efforts.
Performing: Under this, all the workers know their assigned roles and responsibility. Till
this time employees are highly motivated and knowledgeable (Gassmann, Frankenberger and
Csik, 2014).
Different types of Motivational theory
Motivational theories: For getting an expected results it is important that employees are
motivated this will assist them in performing the task in full enthusiasm. Three motivational
theories are given below:
Maslow's Need hierarchy theory: This theory is based on basic human needs that is most
important in order to accomplish the task appropriately. It includes factors like physiological,
safety, social, esteem and self actualisation needs.
Herzberg's motivation hygiene theory: It is considered as a two factor theory and
optimised by most of the organisation at their workplace. This is associated with minimum
salary, working conditions and many more.
McClelland's Need Theory: This is being considered as another theory which aid in
motivating staff members. It has been analysed that theory directly fulfil needs of workers and
aid in making positive working environment.
Various kinds of leadership styles
There are different kind of leadership styles that organisation follow in order to operate
their business in an effective manner (Bernstein, 2015). This includes democratic, autocratic and
Laissez-faire style etc.,
4.3 Appropriate use of different motivational theories in business activities
In order to run a business according to the current market situation it is important that
company accept changes. For this Morrison is using different motivational theories for example:
They are adopting Maslow hierarchy theories for encouraging their employees to perform their
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task appropriately. It is helping them in identifying the basic needs that are to be considered for
accomplishing the work which are related to physiological, safety needs as company is providing
them basic health security to their employees. Other esteemed and self actualisation needs are
assisting employees to know which task is to performed first and vice versa.
4.4 Impact of various leadership styles on employees
Leadership styles helps an individual to lead the team form front so that workers can
accomplish their task and achieve their set goals and targets (Charter, 2017). Morrison is using
autocratic and democratic style of leadership respectively according to the demands of situations
of the market area. This is enabling employees in performing under pressure but in an effective
manner.
TASK 4
6.1 Impact of customer service on business success
It is prime duty of administration that they train their employees effectively so that they
can deliver the products as per the needs and wants of customers. Morrison is a renowned retail
store in United Kingdom. For making their workers eligible they are providing proper training
programmes through which employees can enhance their skills and knowledge. Customer service
is assisting the organisation in giving appropriate products that is fulfilling the demands of
customers.
6.2 Benefits of customer profiling to a business
For attaining maximum benefits, Morrison is using latest tools and technologies which is
helping them in manufacturing goods as per the needs and demands of consumers. Therefore, it
is important that company is taking feedbacks and reviews so as to to produce products
according to the demands of clients. This is gradually increasing the sales and profitability of the
organisation (Sekaran and Bougie, 2016).
CONCLUSION
Form the above report it has been concluded that to operate a business it is necessary that
companies consider various factors through which they can attain their set targets. It includes
different motivational theories and leadership styles so as to encourage and guide employees
respectively. This will assist them sustaining a better position at market area for a longer period
of time.
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