How Businesses Operate

This presentation provides insights into the operations of business enterprises, including types of organizations, different business structures, and the factors that influence business objectives. It also examines the case of Tesco, a leading international firm in the merchandising and grocery sector.

HOW BUSINESSES OPERATE

TABLE OF CONTENT
• INTRODUCTION
• types of organisations found in the public and private sectors
• The different structures within the businesses
• Identify a named business and describe
• CONCLUSION
• REFERENCES

INTRODUCTION
Establishment of a business enterprise is not as easy as it may sound. A detailed research work
needs to be conducted in order to introduce a new enterprise within an industry. The proposed
report highlights upon the elements and attributes that needs to undertake by an individuals in order
to operate a business unit.

TYPES OF ORGANISATIONS FOUND IN THE
PUBLIC AND PRIVATE SECTORS
Public sector organisation can be characterised as the firms that are managed and controlled by government
authorities. Public sector organisation are responsible for providing the necessary services to the citizens of
the Unite kingdom (Temnyshov and Belyaev, 2020). The respective sector involves the education, healthcare,
social care and housing facilities etc. The public sector organisation concentrates upon the rendering effective
services to the public who provides the country with the necessary funding on a constant basis. Here are the
few examples of Public sector firm in UK :-
• Higher Education Universities: The respective educational institution provide an opportunity to the
students to facilitate further research and study in their field of interest.
• NHS : It is public firm that provides healthcare and well being services to the patients who are in needs for
the same.

CONTINUE
Private sector organisation can be termed as the business institutions that are formulated by the
individuals with an objective of profit maximization. There numerous types of private sector
organisation in UK such as :-
• Multinational : It can be defined as a business firm that has its branches scattered all across the
world and operates at a large scale.
• Franchising : It can be termed as business enterprise which has multiple outlets in various
geographical regions and the outlook of each franchisee is similar in order to enhance the
familiarity of the customers towards the same.

THE DIFFERENT STRUCTURES WITHIN THE
BUSINESSES
• Sole Proprietorship : It can be termed as business firm that is owned and operated by a single individual.
• Partnership firm : It is type of private organisation wherein two or more individuals come together in order
to form an institution in which profits and losses will be shared according to the capital invested by the
individuals in the respective business institution.
• Corporation : It is a legal enterprise and an artificial body that enjoys a separate legal entity in which a
number of individuals offer their services to meet the organisational goals and objectives (Eabrasu,
Brueckner and Spencer, 2021).
• Limited Liability company : It a type of corporation in which the liability of the members is limited to the
extent to which they have made the invest in the company. Hence, no single member of the organisation is
responsible for bearing the liability.

WHY BUSINESS OBJECTIVES DIFFER BETWEEN
DIFFERENT ORGANISATIONS
Every given organisation has different form of structure. The respective industry of the business
enterprise , market segment as well as the goals of the business determines the objectives of the
same. Small scale enterprises strive for minimum profits whereas large scale organisation aims for
the maximum profit accumulation as well as acquisition of the largest market share.
• For example :- A sole trader dealing in retail industry will have different set of business objective
in comparison to an internal organisation truing to expand its operations ( Ramaswamy and
Pieters, 2021). Thus, every organisation caters to a diverse section of the market and their
objectives are dependent upon the same.

IDENTIFY A NAMED BUSINESS AND DESCRIBE
Tesco is an international firm founded by Ken Murphy in United Kingdom. The respective firm can considered
to be one of the leading business enterprises in its respective industry i.e. merchandising and grocery sector
(Pronko and Spiridonova, 2020). The respective firm can be impacted by fluctuations and alterations in a
variety of economical conditions and factors such as :-
• Local environment : The local economic condition can influence the demands and requirement of products
and services. The decrease in the demand for organisational offerings can lead to a negative impact on the
operations and profitability of Tesco.
• National environment : The inflation and deflation rate, current interests rates, high unemployment rate can
have severe implication on the functioning of the respective company.
•

CONCLUSION
From the above discussion, it can be evaluated that the success and sustainability of the business
institutions in the market relies upon the amalgamation of a variety of operations such as business
structure, legal obligations, accounting, HR operations, customer satisfaction, leadership,
motivation etc. Hence, it is necessary for the individuals to acquire understanding about all the
above mentioned business elements in order to introduce and establish competent and capable
business firms in the market environment.

REFERENCES
• Ramaswamy, V. and Pieters, M.K., 2021. How companies can learn to operate as co-creational,
adaptive,“living” enterprises. Strategy & Leadership.
• Council, H.D., 2020. Coronavirus: Resources for businesses to operate safely.
• Eabrasu, M., Brueckner, M. and Spencer, R., 2021. A social licence to operate legitimacy test:
Enhancing sustainability through contact quality. Journal of Cleaner Production, 293, p.126080.
• Temnyshov, I.A. and Belyaev, A.M., 2020, February. Business modeling in business operations
of manufacturing company. In IOP Conference Series: Materials Science and Engineering (Vol.
753, No. 8, p. 082027). IOP Publishing.