How Business Operates

This presentation provides an overview of how business operates, including the organizations in the private and public sectors, different business structures, and the impact of the economic environment on TESCO. It also discusses the importance of customer service and the benefits of customer profiling to a business.

HOW BUSINESS
OPERATES
Task 1 and 5

TASK 1

1.1) Organizations in private and public sectors-
• Private sector- Private sector is part of national's economy
whichoperated by individual. Types of private sector-
• Sole Proprietorship- In this organization, an individual sale
goods and services for profit. The assets and liabilities of
business are the proprietor's assets and liabilities. Eg.
Plumbers
• Partnership- Partnership is associations of two to twenty
members. Partnership does not have a single legal entity.

CONT..
• Public Limited Companies- These companies are liable
only for invested amount in the business, not for debts
incurred. These kinds of companies are listed on the stock
exchange.
• Public sector- This sector part of nation's economy and
controlled by the government.
• National organizations- A national organization is that run
within the boundary of specific country. A national
business develops products and services according to its
culture. IPMG is a national organization of UK.

1.2) Different business structures-
Different organizations structure of UK is mentioned below-
Line Structure- This organizational structure has vertical
relations between management and employees. Line
departments include production and sales.
Staff or Functional Structure- Position in an enterprise can
be divided as:
I) Line position- This position is responsible for the goals'
achievement.
ii) Staff position- Provides advice and support to the line
position.

CONT..
Divisional Structure- The organization has different basis on
which departments are created
I) Function
ii) Product
iii) Geographic territory
iv)Project
v) Combination Approach

CONT..
• Project Structure- A project business organization is a
temporary organization to achieve certain specific goals
by the help of different functional areas.
• Matrix Structure- It is a permanent designed to
accomplish specific goals by using experts’ team from
different functional areas.

1.3) Economic environment impact on TESCO-
Economic environment are two types- I) Microenvironment
Macro environment- Microenvironment includes local or
national business.
Impact of environment-
Customers- Customers directly impact the business that
cannot earn profit without attracting its targeted customers.
If TESCO wants to earn more profits, it has to provide
services and products according to customers’ demands.

Cont..
Macro environment- Impact of global environments is below-
Interest rates- Interest rate on services in global business is
high. It is fixed by government of country.
Taxes- In global business, tax differs from country to country.
Inflation- During inflation, prices of services might increase
and fall in buying value.

Task 5

5.1) Customer service impact
Good customer service is building of business. Ways of
customers service are below-
• How you are remembered- Build strong image on customer
mind by good customer service
• A statement about business- People assume that if your
customers service is good then goods also good
• People like to feel cared- If business treat customers with
courtesy they start believe in goods.

b) benefits of customer profiling to a business-
Five business benefits of customer profiling-
• Better communication- A strong communication with
customer make business more profitable. Get time to time
feedback from customer easy to understand their changes.
• Greater Opportunities- It is easier to find and develop
business opportunities by customers' feedback.

REFERENCES
• Grayson and Hodges, 2017. Corporate social opportunity!:
Seven steps to make corporate social responsibility work
for your business. Routledge.
• Cramer, 2017. Corporate Social Responsibility and
Globalisation: an action plan for business. Routledge.
• Leipziger, 2017. The corporate responsibility code book.
Routledge.
• Boyd, Henning and et.al, 2017. Hybrid organizations: New
business models for environmental leadership. Routledge.

Thank you