How Business operates

This report discusses the different types of business organizations, the functions of the HR department, the importance of accounting for business success, and the impact of external affairs on business operations. It also includes an analysis of Tesco PLC's profit and loss account and the stages of team development.

How Business operates

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1 THE BUSINESS ENVIRONMENT.........................................................................................................3
The different types of business organizations in public and private sector ...........................................3
Different kinds of business structures which are followed by the business organisation.......................4
How external affairs effects the functioning of the business. ................................................................6
Task 2 – Business functions.........................................................................................................................7
Evaluate the importance of accounting for the success of the business................................................7
What are the functions carried out by the HR department in the business...........................................8
What are the features of employment legislation. ................................................................................8
Task 3 – Accounting workshop....................................................................................................................9
Interpret the data of the profit and loss account of Tesco PLC. .............................................................9
Task 4 – Teams...........................................................................................................................................10
What are the stages of team development?........................................................................................10
Evaluate the three Motivational Theories............................................................................................11
Types of leadership styles.....................................................................................................................11
Task 5 – customer service..........................................................................................................................12
What is the impact of customer services on success of the business...................................................12
What are the benefits of customer Profiling........................................................................................12
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Business is the commercial activity which was performed by the entrepreneurs to make
money with the help of producing, selling or buying the goods and services. These are those
activities which are done by them in order to attain the profits. Business operation means the
activity by which the company operates their business. It is the complete guidelines to run the
ones business. It includes the planning of staffs, resources, process, equipment, marketing plans
and other activities which are useful in order to maintain their functions properly. This helps the
investors to plan their funds in the company and helps in raising the funds from the markets
(Bressan, Alonso and Kok, 2021). This report is discussed about the different types of
organizations in both public and private sectors and the different structure which are followed by
them. Further the report is being discussed about the accounting business which helps them in
attaining their goals. The different functions which are carried by Human Resource department
and the laws which are being used by the organization with respect to their employees.
Moreover, the report is being discussed about the profit and loss accounts of the firm. The report
is analyzing their organization with the revival companies in order to determine the roles of their
team. Lastly, the report is being analysis about the impacts of the customer’s services and the
benefits of their customers profiling which helps in enhancing their business.
TASK 1 THE BUSINESS ENVIRONMENT
The different types of business organizations in public and private sector
Public Sector: These kinds of the organizations are owned and governed by government
authorities. These kinds of organizations are working for the benefits of the society. These firms
raised their funds from the amount of taxes which are collected by the government. The main
objectives behind these kinds of organizations are they worked for the survival of the people and
help them to improve their standards of living (Echeverri‐Carroll and Mora, 2020). They have
the duty of welfare of the society. The government use to adopt huge market share so that they
can provide reasonable services for every section of the society. This kind of business
organization helps in satisfying the needs of the customer’s. It helps in the developing the
economic condition of the society. Their main aim is to provide their services and products so
that they can satisfy the desires of the customers.

Private sector: These kinds of organizations which are governed by the private
individuals. It is also called as the citizen sector which helps the individuals who owned by
themselves where they are working to earn profits by selling their goods and services to their
targeted customers. Most of the people are engaged in private sector because their main motive is
to earn profits (Hill, 2019). These sectors has to follow the laws which are applicable on those
kinds of organization where the government can impose some restrictions on their wrongful
activities. There are several types of business structures which are followed by the business
organisation some of those are as follows:
Sole Proprietorship: It is the simplest form of business where the business is run by the
single entity . The owner is working for himself only and not governed by any one. It is run by
you for you. The only business person is liable for all its liabilities and all profits are enjoyed by
them only.
Partnership: it is the kind of the business where the business is run when two or more
persons come together to attain the common goals. There they agrees to share the profits and
losses on the agreed amounts. This kinds of organisation helps in sharing the risk, cost and other
benefits and liabilities.
Different kinds of business structures which are followed by the business organisation
There are several kinds of business structures which are followed by the business
organisations in order smooth working of their enterprises so that they can attain their targets in
an effective manner. Some of these are follows:
Divisional Structure: When the organisations are dividing their groups into each divisions
so that they can perform their functions in an effective manner (Ho and Tan, 2017). It is useful
structure because the failure of one division does not harm the working of the other division. It
helps in enhancing the efficiency of the organisation as every department is working together to
attain the common goals of the enterprise.

Functional Structure: In this kind of business structure the employees use to bifurcate the
departments according to their functions so that they can work together and got the efficient
results from their working.
How external affairs effects the functioning of the business.
Tesco public limited company which is the British multinational retail sector company
which provides groceries and general products. It's headquarter is located in Welwyn garden City
of England. It is founded in 1919 by Jack Cohen. To analysis the external affairs which has an
impact on the company (Hwang, Baloglu and Tanford, 2019). PESTEL Analysis mode is being
used to identify them which is followed as below:
 Political Factor: It is the multi national company which is situated over the seas. And to
regulate in different countries the company has to follow different kinds of laws which

are applicable in all those countries in order to serve their products in that territory. Due
to Brexit the company has to follow the new regulations which has an impact on their
sales.
 Economic Factors: The company has to keep an eye on the consumption of those good
and services which are needs by their customers. When the company faces some of the
changes in the economic conditions that will be the impact on the sale, distribution,
revenue and the profits. They must be aware the policies of taxes in each country during
the conduct of their business so that it will be useful in order to develop the strategies.
 Social Factors: These are the factors which have an impact on the company due to the
change in taste and preferences of the customers. Tesco use to provide their products
according to the needs and wants of their customers which helps them to attain their
desires goals. This helps the company to capture the good market share.
 Technology Factors: Changes in the technology leads to the changes in the demands of
their customers. The company has to provide the goods which are trending in today's time
so that the customers are willing to buy those.
 Legal Factors: The company is providing their services over the globe for which they
have to follows the rules of the local as well as international rules made by their
government in order to smooth functioning of their work. Tesco use to provide the
minimum wages to their employees which are described by the legislation.
 Environment Factors: Tesco needs to provide there -products which helps them to
improve the conditions of the environment and helps in sustain the growth (Jardon and
Tañski, 2018). The company uses Remove, Reuse, Reuse and Recycle plan so that they
can protect their environment. This also helps in attracting the customers.
Task 2 – Business functions
Evaluate the importance of accounting for the success of the business
Accounting means the process which helps the company to record their financial
transactions pertaining in the business. It helps in summarizing, reporting and analyzing the

transactions so that they can look towards the business in order to formulate their future planning
and developing the strategies which are useful to enhance their business functions. It plays an
significant role in the business as :
 It provides the income statement which helps them to analysis the losses and profits
which are made in the organisations (Kraus and et. al., 2018).
 The balance sheets gives the clear picture about the standard of business where it is lying.
It is the position of the firm in the market.
 The cash flow statements helps in determining the cash generated in the specific time
period by the company.
 It helps in creating the budget of the business so that they can develop the future plan of
the enterprises.
What are the functions carried out by the HR department in the business.
Human Resource department of the company use to manage the human resources of the
company (Okada, 2017). This department helps the company to compliance with the laws related
to labor and standards of employment which the company has to follow. It is working for the
benefits of the employees so that they can give their best o the organisation. This department
conducts many functions some of those are follows:
 The main role of this department is to analysis the working of the empoloyees and
determine their weaknesses so that they can overcome with those in order to enhance
their productivity.
 This department use to heir the candidates so that they can full fill the needs of the
organisation and make sure that they must heir the appropriate candidate for the new
position.
 The process of Payroll is being done by the HR department only. The department use to
calculate the amount which is being credited to their employees account as their
remunerations. What all expenses will be reimbursed by the kind and who will approve
those expenses.

What are the features of employment legislation.
There are many laws which are made by the legislation in order to protect the rights of
the employees and some of those are follows:
 Employment Rights Act, 1996: it is the act which plays an vital role in order to protect
the rights of the employees as it includes the employment contract act, unfair dismissal,
family- friendly leaves and redundancy.
 National Minimum Wages Act, 1998: it is the act which helps the employees to get their
minimum wages from their employer on time to time. This law ceases the employers
from harassing the workforce and they protect the bonded labor also from this.
The above two mentioned are the laws which protects the right of the employees on their
wages and other also. There are many more laws such as Employment Relations Act,1999, The
Maternity and Paternity leaves etc. Regulations Act, 1999, Part time workers Act, 2000 and
many other acts which helps the worker to protect their rights and provides them an reasonable
reliefs on the violation of such rights (Meglio and King, 2019).
Task 3 – Accounting workshop
Interpret the data of the profit and loss account of Tesco PLC.
In the books of accounts of the enterprise they use to maintain the profit and loss account
statements in order to determine the income which is gained by the company and the
expenditures occurred to generate such income. It is given for the specific time period.

The above mentioned is the statement of profit and loss account of Tesco PLC. Which
helps the company to determine their inflow and out flow of the organisation. The above
mentioned statement is of the year 2020. in the year 2019 the company has enjoyed the profit of
1167 and in the year 2020 they enjoyed the profit of amount 1528. this can be said that the
company is an growth which helps them to expand their businesses in more areas. This can be
done by developing their techniques so that they can earn more profits.

Task 4 – Teams
What are the stages of team development?
Bruce Tuckman has described the team theory which helps the team to move together on
forming, stroming, norming and performing. It is the model which helps the team to work
together to attain their set goals (Oluka, Okoche and Mugurusi, 2020). The first stage where the
team has to involves for a period of orientation and getting acquainted. The next stage is more
difficult for the company to resolve the conflicts and competition of the person's personalities
emerge. This has an impact on the performance of the team. The third step helps in resolving the
conflict of the individuals which helps them to perform in a more better way. The performing
stage deals with the cooperation of the team in order to attain their common goals. It helps in
well functioning of the company. It helps in clearing the view and structure of the company. The
last stage is the adjourning stage where the team goals have been accomplished. It helps in
diminishing the work load on the individual.
Determine own and others role within a team.
Every department in the company plays an important role in order top get the desires
goals of the company (Quansah, 2019) (Takagi and Seto, 2017). As the team member I want to
play an role of Marketing manager according to this post I have many important roles in the

company as to promote the products and services of the company. As my team members have to
coordinate with me so that they can give their best in order to satisfy the wants of the company.
They have to give different ideas which can be used to promote the goods and services offered
by the company. We are using the Horizontal Structure where the relations are made in the peer
groups so that they can coordinate with the efforts of one another in order to attain the common
goals of the company.(Mencken and Tolbert, 2018).
Evaluate the three Motivational Theories.
The employees are the backbone of the company which helps the enterprise to attain their
goals in an effective manner. The employees can only work when they are happy with the
organisations for which the company uses different strategies to motivate them . There are many
theories which can be used by the company some of these are as follows:
Maslow's theory of motivation: It is the theory of personal motivation which helps the
company to motivate their employees. The primary stage of motivation is to satisfy the basic
needs of the employees. After they have attain the basic needs the employees has to be safe and
secure in the organisation and also secure their jobs. The company has to love and belongings so
that they fell comfort in the organisation. Moreover, they must provide them the good status
which helps them to identify the strengths and weaknesses in themselves. Lastly, the employees
must be self-actualization where the employees must be reach to the one level where they can
give their best to the company.
Mayo Theory: It is the theory of motivation where they can be motivated far more by
relational factors just like attention and camaraderie then by the rewards of money or the
environment. This should be given to illustrate the likelihood of the employees so that the given
team can attain their goals easily.
Types of leadership styles
There are several leadership styles which can be followed by the company some of these
are as given below:
 Autocratic: it is the style which says “Do as I say” in this theory the leader thinks that he
is the best person and carries the most of the knowledge then otehrs.

 Democratic Style: It is the style where all the team members can tell about their views. It
says “What do you think”. The employer is interested in knowing the employees opinion
before approving the final decisions.
Task 5 – customer service
What is the impact of customer services on success of the business.
Customers are the backbone of the organisation. They are the one through which the
company can attain their targets and enjoys the profits. The emotions of the customers helps in
the growth of the organisation as the happy one will enhance the sales of the products and
services and the unsatisfied customer’s will decreases the sale of the enterprise. For satisfying
the needs and wants of the customers the company has focused on the quality of the goods they
are offering and what are trends going on. This has an direct impact on the sale of company.
What are the benefits of customer Profiling.
Customers are the lifeline of the business. Customer profiling means the needs and wants
of the customers which are being identified by the company in order to satisfy them with their
products and services (Tardieu and et. al., 2020). It helps to identify the customers and helps in
increasing the loyalty of the customers.
CONCLUSION
From the above report, it can be concluded that, the business is process of generating
revenue this can be done by both public and private sector in order to attain their goals. There are
many departments in the company which follows different roles in order to attain the common
goals of the company. Further, the report is being discussed about the companies different
structures which are used by the company. And the report is being discussed about the books of
accounts in order to identify the standards of the company. Lastly, the report is being discussed
about the customers relations which must be followed by the company in order to attain their set
desires.
REFERENCES
Books and Journals

Bressan, A., Alonso, A.D. and Kok, S.K., 2021. Confronting the unprecedented: micro and small
businesses in the age of coronavirus disease 2019. International Journal of
Entrepreneurial Behavior & Research.
Echeverri‐Carroll, E.L. and Mora, M.T., 2020. Social Network Utilization Among Latino‐
Owned Businesses. Advancing US Latino Entrepreneurship: A New National Economic
Imperative, pp.199-230.
Hill, C.N., 2019. Dynasty Succession Planning: Strategic and Innovative Approaches in Family-
owned Businesses (Doctoral dissertation, Capella University).
Ho, Y.C., Ho, Y.J. and Tan, Y., 2017. Online cash-back shopping: Implications for consumers
and e-businesses. Information Systems Research, 28(2), pp.250-264.
Hwang, E., Baloglu, S. and Tanford, S., 2019. Building loyalty through reward programs: The
influence of perceptions of fairness and brand attachment. International Journal of
Hospitality Management, 76, pp.19-28.
Jardon, C.M. and Tañski, N.C., 2018. Place-based competitiveness in subsistence small
businesses. Journal of Entrepreneurship in Emerging Economies.
Kraus and et. al., 2018. Digital entrepreneurship: a research agenda on new business models for
the twenty-first century. International Journal of Entrepreneurial Behavior & Research.
Meglio, O. and King, D.R., 2019. Family businesses: Building a merger and acquisition research
agenda. In Advances in mergers and acquisitions. Emerald Publishing Limited.
Mencken, F.C. and Tolbert, C.M., 2018. Community banks and loans for nonmetropolitan
businesses: A multilevel analysis from the 2007 Survey of Business Owners. Rural
Sociology, 83(2), pp.376-401.
Okada, M., 2017. core businesses. Japanese Management in Evolution: New Directions, Breaks,
and Emerging Practices, p.262.
Oluka, P.N., Okoche, M. and Mugurusi, G., 2020. Public procurement and competitiveness of
women-owned businesses: a structural equation model (SEM) for gender-responsive
procurement in Uganda. World Journal of Entrepreneurship, Management and
Sustainable Development.
Quansah, E., 2019. Leadership and Practices for Strategic Adaptation in Small and Medium-
sized Businesses (Doctoral dissertation, Case Western Reserve University).
Takagi, A. and Seto, M., 2017. 9 Bringing businesses back, bringing residents back. Rebuilding
Fukushima, p.133.

Tardieu and et. al., 2020. Customers—How Great Digital Businesses Truly Put Customers at the
Heart. In Deliberately Digital (pp. 83-94). Springer, Cham.