Analysis of Business Operations, Customer Service and Retention

This report provides an overview of business operations, exploring the structures of public and private companies, and the impact of these structures on business performance. It discusses the importance of customer service in achieving customer satisfaction and building brand loyalty, as well as the benefits of customer retention for business success. The report also examines how factors like legal changes and economic conditions influence business operations. Case studies and examples, such as Marks & Spencer, are used to illustrate key concepts and provide real-world context. Overall, the report offers insights into the multifaceted nature of business operations and the critical role of customer-centric strategies.

How Business
Operates

Table of Content
 Introduction
 Classification of business
 Structures within the business of Public and Private
companies
 Implications on business at local, national and global
 Impact of customer service
 Benefits of customer retention
 References

Introduction
Business environment refers to such environment in which
an organisation operate their business functions in order to
achieve stability for longer period of time. Business
environment includes internal and external factors which
may affects and influences the business operations of an
organisation either in negative or positive way.

Classification of business
Public organisation are owned and controlled by
government in order to operate business functions for the
betterment of people. It includes national and
international industries such as franchises, Health and
Social care, departmental stores, Law enforcements and
more.

Structures within the business of Public and
Private companies
Following are the business structure of companies operating
in UK on the basis of:
Sole proprietorship: It is such type of company which is
owned by single individual thus take all business
decisions solely.

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Non-Profit corporations: It is such type of organisation
which is formed with an objective of enhancing standard
of living of people through providing quality goods and
services at free of cost. Thus, their main motive is to
provide welfare services to needy people instead of
earning huge profits

Implications on business at local, national
and global economic
Marks and Spencer, a UK company which was firstly
founded by Sir Michael Marks and Thomas Spencer in
1884 and from till to now, it has been operated approx.
979 stores across UK including and attain strong brand
image in competitive market.

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Legal changes: Every organisation are liable to operate
their business operation in legal manner so as to avoid
fines and penalties imposed by the government. The
company may find difficulties in operating business
operations in different countries due to alteration of laws
implemented b y government due to political factors.

Impact of customer service
It is considered as the process of delivering services to the
targeted customers so as to maximise their level of
satisfaction. Therefore, it is important for Marks &
Spencer to provide quality products and services if they
want to achieve huge customer strength and build
goodwill in market.

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It has been observed that an organisation can able to retain
large number of customers who are mainly focuses on
providing quality services. In addition with this, the
company can bale to maintain their exist stable position in
market only when they focus on retaining old and regular
customers instead of attracting new customers

Benefits of customer retention
It an organisation successfully retain even 5% of the
customers then it will help in increasing sales
performance up to 125%. Along with this, due to
providing healthy food products, Marks & Spencer are
able to gain 65% much higher profit than their rivals.

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If the company provide quality products and services to the
loyal customers then they will inform others as well about
the quality of product which increases brand image and
reputation of company in market. Providing better
experience to the customers will help in making regular
customer for certain products and services.