Impact of Environmental Factors on Business Operations

This report discusses the importance of evaluating environmental factors that affect business operations. It also emphasizes the need for companies to provide effective services to customers to foster loyalty. The report draws from various sources, including books and journals, to illustrate the significance of these factors in running a successful business.

How Business Operates

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................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
6.1 Impact of customer Service...................................................................................................6
6.2 Benefits of customer retention..............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment mainly compiles up of many of the external and internal factors
such as Govt. , customers, suppliers, competitors and many more. It is needed to acknowledge
them along with its impacts. This mainly provide help in collecting vital data for the marketing
conductions and abilities of system (Weiss, 2014). There are various kind of sectors which are
present in both public and private sector and those are HR, Finance, Production, Research and
development and many others. Company taken for this kind of report is TESCO, which is
famous retail sector established in UK and other nations. Main duty of the employer is to have
genuine manpower in order to execute the activities in proper manner.
TASK 1
Covered in PPT
TASK 2
2.1 Importance of accounting for business success
In order to operate the business process in better way, it is highly essential to have better
capital. It is highly essential for optimum utilisation of material, funds and manpower in effective
way so that products can be deliver within marketplace effectively (Bernstein, 2015). There are
various kind of benefits which are being provided accounting process to growth and prosperity:
 Budget is being formulated by the finance sector which will be incurred for executing the
activities in effectual manner.
 Management mainly record the incomes and expenses in order to have effectual data
about present fund.
 It is the duty of management for acknowledging the operational profit which are being
ascertained from the business operations.
 Help is being given by accounting system for having accurate system for the market
position along with financial status of company.
5.1 Different functions of HR department in business
Main duty of the employer is to have proper manpower along with skilled workforce in
order to conduct the business operations which are being operated in proper manner. There are
various kind of activities which are being performed by the HR which are described below:

Staffing: There are certain group discussion, aptitude test along with interviews in order to
acknowledge the abilities and skills for the candidates and thus select the best one who is up-to
the expected level (Mackey and Sisodia, 2014). It is highly necessary for the managers to assign
the tasks and responsibilities as per the abilities so that it can be completed within allocated time.
Training and development: Performance appraisal needs to be conducted by the management
for anticipating abilities by comparing the genuine outcomes along with standards. Hence, there
are sessions and seminars which are being conducted by the human resource for skills
enhancement and handle the issues and resolve them effectively.
Recruitment:There are certain tasks which are being executed by the HR manager for filling up
the vacant posts and thus mainly employ for increasing workforce. There are certain internal and
external approaches like promotion, transfer, employment agencies along with other methods as
well which are being utilised for hiring the right candidate (Warner, 2018).
Employee relations: Friendly bond is being established by employer with members for keeping
them motivated and dedication for job. Moreover, there are issues which are being anticipated
along with conflicts faced by staff and thus give them proper solutions.
5.2 Key features of employment legislation
There are various kind of laws which are being made by UK Govt. for providing safety
for the employees while working within company. Main characteristic for the laws is to reduce
inequality within workplace which can be done on the grounds of gender, race, caste or the
religion (Doppelt, 2017). There are various kind of features which are being involved for
providing safety to employees, minimum wages along with dismissals and many more. Hence,
numerous laws are being established by the certain bodies like Employment Act, Equality Act,
sex discrimination and many more.
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
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
When people work in team, weaknesses are being reduced by different minds and
opinions (Palattella and et. al., 2016). This provide help in accomplishing the tasks in effectual
way for short period of time. Skills and abilities can be enhanced by employees so that goals and
objectives can be attained in effectual manner. Being part of that, I have acknowledged that the
high level of satisfaction and thus can work upon the future. There are certain abilities which I

have gained within the team for solving out in effectual way. There are better outcomes which
are being observed while working in team within company. There are objectives which needs to
be made clear by the manager and thus for that appropriate leadership can be attained in order to
gain commitment for all kind of team members.
4.2 Team Development
In TESCO, management develop team to enhance productivity and deliver important
item and services in the market. There are various stages of team development that human
resource performs which are explain as below:-
Forming:- It is first stage of team development under this team needs to write its own mission
statement as well as goals. In this team members will get to know each other and they build the
commitment towards the larger goal (Adjei and et. al., 2014).
Storming:- In this team members begin showing their actual styles. Under this communication is
important and tension will increase. In this human resource conduct brainstorming activities to
make their ideas and make them efficient towards duties.
Norming:- In this people start to notice and recognise their team member's strength. Through
this team members understand their role in the project and starting respecting their authority as
leader. Management maintain relations with members to evaluate conflicts and issue faced by
them.
Performing:- This is last stages in which superior provides various direction and counselling to
their employees so that they can do work effectively in better manner so that maximum
efficiency and productivity increase which help in achieving towards the goal (Omar, Leach and
March, 2014).
Maslow's need hierarchy:- This theory identify that staff members basic needs and
wants is to earn satisfactory money to fullil their basic needs such as food, water , shelter and
homes. He stated that people are motivated to achieve various needs and that some needs take
advantages over others. If the basic needs are fullfil they move on the next level which are
related with safety and security. After this they need friendly relations with their superiors and
subordinates through love, affection as well as companionship. If social needs are satisfied they
moves to fulfil their esteem needs which is important for individual (Petro and Gardiner, 2015).
These needs are for higher position within a group it include confidence, achievement, respect
etc. At last employees want to get fulfil their self actualizing need which is related with their

potential , abilities, talent, personal growth and creativity etc. Thus these are the various level
through which employees can be motivated in organisation.
Herzberg's Motivation -Hygiene theory:- This is also known as two factor theory or
motivation -hygiene theory. This explain that there are various factors in the workplace which
help in job satisfactions and other factors give dissatisfaction. In this two feeling cannot simply
be treated as opposites of one another. In this it is responsibilities of management to provide
necessary working conditions and facilities so that their employess feel motivated and focused
towards their job.
Alderfer's ERG theory of motivation:- This is also known as three factor theory which is
related with existence , relatedness, and growth. It is dealing with motivation of people. This
uses employees in the organization, in the preparation or understanding of various factors. Under
this management is able to make employees able to increase their growth in career.
Different leadership style that are used by superiors of TESCO are as follows:-
Autocratic style:- Under this superiors conduct decision making process and not take
the help of their subordinates, So they maintain alternative according to their knowledge.
Democratic style:- In this management involves employees in decision making process
and give them chance to give their thoughts so that they feel motivated.
Laissez-Fair style:- In this leaders allow members to make the decision .This provide
complete freedom for followers to make decisions in effective manner.
4.3 Need of leadership and motivational style in context with different situations
It is highly essential to develop the motivational skills in order to deal with certain
changes along with challenges. There are many of the issues which are being faced by company
on regular basis which in turn creates the barrier. Hence, workers are being encouraged for
accepting the changes (Reim, Parida and Örtqvist, 2015). By the help of leadership skills,
performance of an individual is being judged along with need identification. This in turn will
help out in suggesting the techniques which in turn will remove the weaknesses and thus make
them work in desired way.
4.4 The way leadership style and motivational skills are used to influence workers
There are various kind of issues which are being faced by TESCO on the regular basis.
Hence, there are some of the leadership and motivational skills which are being utilised for
resolving the issues in certain situations. Example can be taken up of new techniques introduced

by company with the help of Maslow Theory which in turn can understand the need of
employees along with democratic styles. Same as, when the employee's resistivity are being
raised for utilising the autocratic styles which in turn can motivate and thus encourage for
adopting changes.
TASK 5
6.1 Impact of customer Service
Covered in PPT
6.2 Benefits of customer retention
Covered in PPT
CONCLUSION
From the above report, it has been concluded that the various kind of environmental
factors needs to be evaluated as they make huge impact upon the operations of business. This in
turn will help in running the business in proper manner. Along with this, in this report, it has
been highlighted that the effectual services needs to be given to customers by company in order
to bring loyalty in effectual manner.

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.