Business Ethics and Customer Service

This assignment examines the crucial role of ethical considerations in business operations. It delves into understanding the needs of various stakeholders, including customers, and emphasizes the significance of providing effective services to retain them. The assignment highlights the interconnectedness of ethical practices, customer satisfaction, and sustainable business growth.

HOW BUSINESS
OPERATES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Classification of business on the basis of public and private sectors...............................1
1.2 Structures within the business of Public and Private Companies.....................................1
1.3 Implications on business at local, national and global economic environment...............2
TASK 2............................................................................................................................................3
2.1 Importance of accounting for business success................................................................3
5.1 Functions of HR department...........................................................................................3
5.2 Key features of employee legislation...............................................................................4
TASK 3............................................................................................................................................4
3.1 Accounting workshop.......................................................................................................4
TASK 4............................................................................................................................................5
4.1 An analysis on determination of roles of team members.................................................5
4.2 Team Development.........................................................................................................5
4.3 Need of leadership and motivational style in context with different situations...............6
4.4 The way leadership style and motivational skills are used to influence workers.............6
TASK 5............................................................................................................................................7
6.1 Impact of customer Service..............................................................................................7
6.2 Benefits of customer retention..........................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment consists various internal and external factors which impacts on
operations of a company. In order to establish business successfully a company needs to discover
affect of these elements as well as sources required in carrying out the operations. It includes
finance, human resource, raw materials and more (Weiss, 2014). Therefore, in order to know
how an industry like Walmart operates its business a report has prepared. It describes type of
organisations includes in public and private sectors and describes the structures of them. Impact
of customer services and team work on success of business are some highlighted points of this
file. Along with this, it also discuss the importance of accounting, various functions carried by
HR department and key features of employment legislation.
TASK 1
1.1 Classification of business on the basis of public and private sectors
Public companies are owned by government which operates the business according to
needs and interests of whole. It includes national and international industries like Franchises,
Health and Social Care, Departmental stores, Law enforcements and more. These associations
are work on national and international level with common purpose is to provide welfare to
citizens. While regulatory bodies has no role in private sectors, business of these are operated by
an individual. It includes sole traders, partnerships etc. Purpose of these companies is to earn
more and more profit (Bernstein, 2015). In Public sectors, types of organisation are found on the
basis of state and central ownership while private companies are divided on individual,
partnership and joint stock basis.
1.2 Structures within the business of Public and Private Companies
Structures of the business of companies in UK are divided on the basis of-
Sole Proprietorship: Such companies are operated by a single person. Structure of sole
proprietors are simple and owners enjoy greater flexibility of management with less legal
control.
General Partnership: Industries come in this category have two or more owners who
make partnership agreement which includes contribution of money required to carry out
business. Therefore, each partners shares equally the profit or loss as well as pay debts.
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Limited Partnership: In this type of businesses, partners share loss or profit on the basis
of investment of capital. Along with this, partners are also not involves in regular operations.
Corporations: It holds a more complex business structure in which companies have
certain rights and liabilities. These organisations are worked for generating higher revenues.
Non-Profit corporations: Instead of obtaining profit, firms under this category operate
business on non-profit basis (Mackey and Sisodia, 2014). They provide services to citizens for
their public interest.
In UK, organisations are divided on the basis of their aim and how they operate business.
Along with these, all such companies have different structures also which shows that variations
are necessary in order to meet demand and needs of every individual. Although industries
whether private or public have different purpose but they work for the common aim i.e. to serve
mankind.
1.3 Implications on business at local, national and global economic environment
Walmart Company of UK has established its business in 1962 in retailing sector. It has
11,718 stores in 28 countries which serves the products like fresh food, groceries, leisure and
clothing. It operates the business within international market. It has carried operations on local
and global level both. Therefore, key areas of policy which affect business are:-
Economic Policy: This factor includes the taxation policy which affects the business in a
large way. For example- If there is rise in economy of a country then profitability of companies
are also rise and vice versa. In addition to this, taxation and interest rates which are determined
by government impact on business. For instance- If interest rates are high then it forces industries
to borrow loan and due to low income, citizens are needed to reduce their expenditure all of
which causes fall in sales performance of business (Warner, 2018). Therefore, economic policies
create much impact on business of Walmart Company also.
Legal changes: Every organisation whether small or large are need to operate their
business in a legal manner. Due to political factors, government of a country has to make
alteration in laws which forces companies to respond to changes. Along with this, if a firm wants
to operate business at global level then it need to go through various legal formation.
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TASK 2
2.1 Importance of accounting for business success
In order to run a business in a proper way, a company needs to prepare data about assets,
reports on transactions, debts, liabilities and more. This would help in analysing whether
industries have gained profit or loss in the end of a period. All these processes are done by
accounts department of an organisation. Persons associated in this section carry out these
activities which are helpful for the management in decision making. The main purpose of
accountants in companies are to prepare record of financial transactions in systematic order. This
would help associations to find their position of business (Doppelt, 2017). In Walmart Company,
accounts department helps in identifying and measuring the economic information which helps
in analysing proportion of equity and debt in a systematic manner. Along with this, it assist
organisations in evaluating performance of business, making budget as well as managing anf
monitoring the cash flow.
5.1 Functions of HR department
Human resource department is the important part of an organisation who define the
structure and manages entire function of business. People associated in this management have
abilities to manage work of employees by increasing their productivity in order to meet needs of
business in a desired manner. HR managers perform various functions to manage working
organisation in the following manner:
Recruitment and Selection: It is the most important function of managers in which they
used to hire the best talented people having desired skills in workforce. In Walmart Company,
employers use various methods of recruitment and selection for fulfilment of vacancies.
Training and Development: Since companies are used to change technologies on regular
basis according to demand of marketplace in order to gain sustainability. Therefore, managers of
this department provide training programs to workers so that they can work on new system in a
proper manner (Palattella and et. al., 2016).
Compensation and Benefit: As success of a company depends on work of employees,
therefore, HR managers used to provide them various rewards and compensation in order to
appreciate their work. This would help in making staff more happy while working in
organisation as well as assist companies to get their retention for longer period of time.
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5.2 Key features of employee legislation
Government of UK has made various laws and legislation in order to provide safety to
employees while working at organisation. The main key feature of these laws is to eliminate
discrimination from workplace which could be done on the basis of sex, gender, race, caste or
religion. Another features involves in this segment are to provide safety to workers, minimum
wages, redundancy and dismissals etc. Therefore, for this process regulatory bodies had
established various laws like Employment Act, Equality Act, Sex Discrimination Act and more
(Adjei and et. al., 2014). These regulations are proved much helpful for employees to work in
healthy and safe working environment as well as improving their conditions.
TASK 3
3.1 Accounting workshop
Profit and Loss Statement for Walmart for the year 2017 are given below:
Income Statement
All numbers in thousands
Revenue 1/31/2017
Total Revenue 485873000
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
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Income Before Tax 20497000
Income Tax Expense 6204000
Minority Interest 2737000
Net Income 13643000
Dividend charges -
Net Income Applicable To Common
Shares 13643000
Interpretation: It has interpreted from this report in the year 2017, that in this year
Walmart has gained total revenues 485873000, while it receives net income 13643000 (Goldratt,
2017). But before tax, it has earned 22864000 this shows that last year taxation rate was high due
to which this firm has to pay much.
TASK 4
4.1 An analysis on determination of roles of team members
Working in group helps team-members to decrease their weaknesses by sharing views
and opinions with each other. It also aid people to work in an efficient manner along with,
accomplishing a task in a short period of time. Through this process, employees can enhance
skills and share a high level of commitment in order to achieve set goals and objectives in an
appropriate way (Dijkman and et. al., 2015). Being a part of such team, I have experienced a
high level of satisfaction and in future can work well together in an integrated way. By working
in group I have gained capability to solve any type task easily. I have also observed from
management point of view that in a company, working in team helps in getting better result of
outcomes. In addition to this, I have evaluated that for increasing effectiveness of a team, group
manager need to make clear objectives, adopt appropriate leadership and suitable membership so
that he can gain commitment of all team members in an efficient way.
4.2 Team Development
In every organisation including Walmart, team development is necessary to enhance
productivity as well as profitability in a proper manner (Omar, Leach and March, 2014). This
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process helps in achievement of success also, therefore, managers are required to understand the
stages of team development as describes below:-
Forming: It is an initial stage of team development which involves influencing of team-
members towards objectives of business goals.
Storming: It involves a brainstorming activity in which roles and responsibilities of
members are allotted. So, in this process conflicts over authority, structure and power may arise.
Norming: In this stage, group-people are now start learning about ideas, procedures and
solutions by making collaboration with others. Along with this, they can now improve relations
by reducing conflicts in a proper way.
Performing: After group activities, in performing stage every person can understand
their part of role in a common task as well as work accordingly.
After completing four stages of team development, a group-leader requires to possess
some skills in order to motivate people. In Walmart Company, managers are used some theories
of motivation like Maslow's needs hierarchy, Alderfer's ERG Theory and Herzberg's two-factor.
These theories help management to discover needs of employees while working at organisation
and fulfil the same in a proper way (Omar, Leach and March, 2014). Along with this, in order to
get high commitment of workers, they adopt some leadership styles also like Autocratic,
Democratic and Transformational theory according to situation arise in company.
4.3 Need of leadership and motivational style in context with different situations
In order to deal with ongoing changes and challenges in a company, employers are
required to develop their motivation skills in a required manner (Amit and Zott, 2015). In a
company many problems are arise on day-to-day operations which produces various barriers in
execution of a project. Therefore, managers are used to encourage workers to accept changes as
well. With leadership skills, they can judge performance of each individual as well as identify
needs of them. This would help in suggesting which techniques they should used to remove their
weaknesses and make them able to work in a desired manner.
4.4 The way leadership style and motivational skills are used to influence workers
In the corporate organisation like Walmart, many problems are arise on daily basis at
workplace. Therefore, in order to resolve such situations, managers and leaders are required to
adopt some leadership and motivational skills. This would help them in encouraging workers to
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work in desired manner (Reim, Parida and Örtqvist, 2015). For example- If this company has
introduced new techniques in working system then with the help of Maslow theory they can
understand needs of employees and democratic style of leadership they can influence workers
towards objectives. Similarly, when resistivity of employees are raised then using autocratic style
leaders can motivate and encourage them to adopt changes.
TASK 5
6.1 Impact of customer Service
It is a procedure of service that a company used to provide customers for ensuring their
satisfaction towards products. Therefore, industries are needed to provide good service to
consumers as if they receive high satisfaction then it will improve bottom line of business. In
order to run business, a firm like Walmart needs to concern on provide effective customer
service. 80% of consumers are liked to retain with such companies who give high services.
Along with this, keeping retention of old customers is much useful then to gain a new one, as it
will takes seven times more expensive.
6.2 Benefits of customer retention
If industries receives 5% of retention of people then it will lead enhancing their sales
performance up to 125%. In addition to this, due to providing effective services to customers,
Walmart has gained 60% much higher profit than its competitors (Petro and Gardiner, 2015). If
people get happy with services of a company then they will tell good experience among others
which will enhances their brand image in a profitable way. In addition to this, gaining good
experiences retain customers with company's commodities for long purpose as well as such
people retain them with 33%.
CONCLUSION
From this report it has evaluated that in order to operate business whether in public or
private sector, a company needs to evaluate the impact of some factors of environment. This
would help in running the business successful in proper manner. Employers of associations are
required to evaluate needs of people. Along with this, following assignment also reveals that a
firm has to provide effective services to customers so that they can retain them with products for
longer period.
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REFERENCES
Books and Journals
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.
Warner, K., 2018. Building rules: How local controls shape community environments and
economies. Routledge.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Palattella, M. R., and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and
business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-
527.
Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4). pp.36-47.
Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
pp.657-678.
Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on
project portfolio success, effectiveness and business efficiency for project-based
organizations. International Journal of Project Management. 33(8). pp.1717-1729.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model
design. Strategic Entrepreneurship Journal. 9(4). pp.331-350.
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