Importance of Customer Profiling in Business

This assignment delves into the significance of customer profiling in business operations. It highlights how understanding customer needs and demands through profiling leads to better communication, fosters customer retention, and ultimately drives profit growth. The document emphasizes the importance of strategic planning and teamwork in achieving business objectives.

HOW BUSINESS
OPERATES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different types of public and private organization in UK................................................1
1.2 Different structures within businesses and reason for variation.......................................1
1.3 Impact of local and global economic environment on selected business.........................2
TASK 2............................................................................................................................................2
2.1 Importance of accounting for business success................................................................2
5.1 Functions of HR department in business..........................................................................3
5.2 Key features of employment legislation...........................................................................3
TASK 3............................................................................................................................................3
Profit & Loss Account for Marriott Hotel..............................................................................3
TASK 4............................................................................................................................................4
4.1 Role of team-members and own.......................................................................................4
4.2 Team Development..........................................................................................................5
TASK 5............................................................................................................................................6
6.1 Impact of customer service on business success..............................................................6
6.2 Benefits of customer profiling to business.......................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is a collection of factors which impacts on operations, growth and
sales performance either internally or externally. From these elements, some are under control of
management while others are far behind. Therefore, in order to operate business in a perfect
manner management need to analyse these attributes in a proper manner (Gassmann,
Frankenberger and Csik, 2014). In order to understand how companies are divided in a country,
an organisation has been taken in this report named by Marriott hotel. This firm comes under
hospitality sector of UK whose employers take entire responsibility to turn affect of factors of
business environment in positive manner. This assignment has highlighted some concepts
important concept of business environment as well role of HR and Accountant in running the
operations.
TASK 1
1.1 Different types of public and private organization in UK
There are many corporate firms at UK place whose business criteria are classified them
as public or private one. Public sectors organisations are controlled by regulatory bodies and
managed by inter-department committee and concerned minister. These companies are generally
work for serving welfare to citizens. While private associations are emerging for providing best
services to people of national and international countries in order to earn more and more profit.
British petroleum, NHS and Rolls Royce are some public organisations of UK. While Sainsbury,
ASDA, Hilton Hotel come under private corporations.
1.2 Different structures within businesses and reason for variation
Organisations of UK come under public and private sectors have many differences in
terms of structure and target based audience. Along with this, business structures of private
associations are divided on the basis of ownership also. A brief discussion of some major
sections of private companies is described below:-
Private Organisation: Director:- Every association has at least one director who is liable to manage all
operations of daily basis in a proper way.
1

 Company secretary:- These persons take decisions on behalf of directors in a firm as well
as take care all administrative matters like maintaining official records, registers and
budget data and more.
 Shareholders:- An association has various shareholders like investors, employers,
suppliers and more are some company's owners who receives the benefits of success and
profitability as well.
Public organisation- Owners of companies under this category have limited and less liability as
compared with private one. The business structure of these associations consist board of
directors, employers, employees and shareholders.
1.3 Impact of local and global economic environment on selected business
Governmental norms, rules and legislation have great impact on almost all organizations
which lie under territorial regions of a country. Therefore, it is necessary for management of
firms to consider regulations before formulating their strategies and designing organisational
structure. In addition to this, environmental factors also have a greater influence on associations
either internally or externally. These elements are mostly affected when a company wants to
expand their current business at global level. In context with Marriott Hotel, it comes under
hospitality sector whose main objectives is to provide high satisfaction of customers in order to
gain profitability. Due to global economic environment currency rate is changing regularly
which impacted on profitability of all firms in both positive and negative way.
TASK 2
2.1 Importance of accounting for business success
Management accounting is an important part of associations which tells current position
of it at marketplace in terms of finance. Accountant of organisation make records of financial
data which further used in making statement of income, profit & loss account and more. These
statements are used in decision making process of stakeholder and investors (Adjei, et. al., 2014).
In addition to this, management of account is also helpful in controlling expenses as well as in
allocating funds within various departments and raise funds accordingly. In MARRIOTT
HOTEL, accounting is important in controlling cost, expenses and preparing budgets in an
appropriate manner.
2

5.1 Functions of HR department in business
HR department of organisations performs various activities in increasing the growth of
business in an appropriate manner. It includes recruitment and selection, training and
development, reward and compensation, etc. which helps in introducing eligible employees as
well as facilitates them all requirements (Bernstein, 2015). These functions help in designing
workplace and organisational culture as per requirement of business. In context with
MARRIOTT HOTEL, its main objective is to provide effective services to customers so that
they can retain with firm for longer period of time. Therefore, for this purpose HR managers
provide training to employees so that they can learn how to behave with different type of
customers, understand their demand or needs and fulfil requirements accordingly on time.
5.2 Key features of employment legislation
Laws and legislations of a country are made in order to protect employees of an organisation
from various discrimination and harassment. These discriminations are generally occurs in
companies which have diverse organisational cultures which can be done on basis of their
different caste, race, religion, nationality and gender (Palatella, et.al., 2016). Therefore,
Government of UK has established various laws like equality act, sex discrimination act,
employment act and more. These regulations are amendable for firms including Marriott Hotel to
provide healthy and safe working environment to workers.
TASK 3
Profit & Loss Account for Marriott Hotel
Revenue 12/31/2017
Total Revenue 22894000
Cost of Revenue 19192000
Gross Profit 3702000
Selling General and Administrative 894000
Non Recurring 159000
Others 290000
Operating Income or Loss 2359000
3

Income from Continuing Operations
Total Other Income/Expenses Net 726000
Earnings Before Interest and Taxes 3124000
Interest Expense 288000
Income Before Tax 2836000
Income Tax Expense 1464000
Net Income From Continuing Ops 1411000
Net Income
Net Income 1372000
Preferred Stock And Other Adjustments -
Net Income Applicable To Common
Shares 1372000
Interpretation: Through this P & L statement, it has analysed that Marriot Hotel has
incurred 1372000 at the end of financial period of 2017. But before tax it has received 2836000
which show that in this year, interest rate was high.
TASK 4
4.1 Role of team-members and own
Team-work in an organisation provides various advantages like reducing conflicts,
improving relationship among workers, accomplishing a task on time and more. For this
assistance, management of a firm is required to select the most appropriate members in team and
allocate them roles and responsibilities as per their skills (Doppelt, 2017). Therefore, being a
leader of team, I have carried out various activities in order to influence members towards
achievement of goals in a proper way. I used to provide proper guidelines to all persons
associated in my team so that they can understand what to do in perfect manner. Along with this,
main responsibility of mine is to get right work of them in a short-period of time as well as
4

reduce their conflicts as much as possible. So, I have provided basic training to team-members so
that barriers can be removed from their part of work and they can do work well.
4.2 Team Development
For raising productivity and profitability in a short period of time, a company's manager
and leader needs to engage employees in group task. So, by collaboration of people in a
systematic way, an association can complete a project successfully on time (Ward, 2016).
Therefore, it is a prime duty of management of Marriott Hotel to develop a team in followings
manner:-
Stages of team development – Managers are needed to consider on five different stages
for development of team that are forming, storming, norming, performing and adjourning. In
this process, first step is forming which refers to introduce members with each each other by
describing about their abilities and skills (Dunning, 2014). Storming is second step in which all
members shows their best to prove who is better from others. In normalization process, people
start to know each other and start making relationship in a healthy way by sharing about ideas. In
fourth step i.e. performing, team members get achievement of success by contributing their skills
and high commitment while in last stage which is adjourning in which all people enjoy success
of completion of task.
 Motivational theories – After developing team, managers use three motivational
theories that are Maslow's need hierarchy, Herzberg's Motivation Hygiene theory and
Alderfer's ERG theory. These theories are used to analyse performance of each member
as well as provide reward to them for their appreciation.
 Different types of leadership style – In order to get right work of members, leaders need
to adopt some leadership style like democratic, contingency and situational leadership.
These steps and theories of leadership and motivation help in completing a project in a given
period of time. Along with this, motivational theories assist managers and leaders to encourage
employees in accepting challenges and changes with full commitment which helps in enhancing
performance of association in a proper manner.
5

TASK 5
6.1 Impact of customer service on business success
Every organisation whether public or private focuses more on providing effective
customer services which helps in increasing growth of business (Storey, 2016). For this process,
managers use different techniques and strategies to gain attraction of people. In hospitality
industries, customers are lifeblood whose retention helps in achieving growth in a wide manner.
Therefore, Marriott Hotel is used to interact with people of national and international level in a
systematic manner. This firm provides various offers to old customers as well as gives special
services to people who come for first time. Thus, this process helps in enhancing profitability as
well as brand image of hotel. The main targeted audience of this hotel is tourists of other
countries. So, in order to gain attention of them, managers of Marriott provides all information
on websites and social sites about its services. This will prove more beneficial for its growth and
aid in establishing the firm at various locations.
6.2 Benefits of customer profiling to business
In order to gain high retention of customers, companies build various strategies in unique
way to provide effective services to them (Shenkar, Luo and Chi, 2014). In context with
customer profiling, it is a way of creating a portrait which help in making decision for
improvement of services. This will prove beneficial for success of business in following ways:-
 Better communication: Profile of customers help employees in making good interaction
with people in effective way. Through this process, employers can understand needs and
demands of particular consumers properly as well as fulfil the same in a proper way.
 Minimize the competition: Making good connection with regular client aid
organizations to gain retention of them for longer period. Through this process, they gain
high level of competition also.
 Increase profit level: Keeping interest of customers with company's products or services
helps in increasing profitability and productivity at marketplace.
CONCLUSION
From the above report, it has been observed that carrying out business operations in a
required manner is not an easy task for a company. Managers for this purpose require to make
proper plan and strategy which helps in reducing the chance of errors. In addition to this, they
6

have to consider on numerous factors also which impact on business operations. In order to
accomplish set target on time, employers are needed to engage employees in team so that they
can contribute their efforts in achieving the same.
7