How Businesses Operate

This presentation provides an overview of how businesses operate, including various types of public and private sectors business, different types of organization structure, PESTLE analysis, the impact of customer service on business success, and the importance of customer profiling. The presentation focuses on Sainsbury's, the second largest chain of supermarkets in the UK.

How Businesses Operate

INDEX
• Various type of public and private sectors business
• Various types of organisation structure
• PESTLE Analysis
• Impact of customers service in success of business
• Importance of customers profiling for business
• Conclusion
• References

INTRODUCTION
Business refers to a an organisation or enterprises which is engaged in various activities such as commercial, industrial, professional etc. It
is an organised efforts of an individual and a group of people who manufacture goods and services and sell their service and goods for
achieving higher profit. For success of an organisation its important that they successfully operate its business operations. Business
operations are influenced by business environment. Business environment refers to a collection of internal and external factors which
positively and negatively influence growth of business. These factors includes customers needs and wants, supplier, supply and demand,
management, social trends, market trends, economic change and so on. For this report Sainsbury company is taking into consideration. It is
the second largest chain of supermarkets headquarter in Holborn, London, U.K. It is founded in 1869 by John James Sainsbury. It has more
than 1428 shops and almost 111,900 employees are working with it. This report includes various types of public and private sectors,
different type of organisation structure, PESTLE. Other than this it includes importance of customer service and customers profiling in
success of business.

Various type of public and private sectors business
Public sector- It refers to those companies which are under the control of government, public funded agencies and other public
enterprise which deliver goods and services and public programs (Boone and et. al. 2019). It provide various services such as
infrastructure, public transportation, healthcare, police, education, military service and so on. There are various types of public
sector organisation which are discuss below:
• Departmental undertaking- It is the oldest form of public sector organisation. It refers to one of the department of government
which have no separate existence and its all operations are controlled by any department of government. For example Railways,
telephone services, broadcasting organisation.
• Public corporations- It refers to a statutory corporations which is formed by the government legislations and fully financed by
the government. All roles and responsibility, aims and objective, imitation and so on are decided by the act of legislation. For
example- Bank of England, British broadcasting corporations.
• Government company- It refers to those companies in which 51% of paid-up-share capital is held by government. This type of
companies are operate its business activities

Private sector business
Private sector- It refers to a company which is run by an individual and company for achieving their personal
objectives and making high profit. There are various types of private sector organisation which are discuss below:
• Sole proprietors- It refers to a type of small business which is owned by a single person and the owner
himself manage and control all activities of business. For example- Achillious Energy
• Partnership- It refers to the association of two or more people who are come together for achieving objective
and making higher profit. Their profit sharing ratio is divided on the bases on terms and conditions written on
agreement between them. For example- EY company
• Limited company- It refers to a company which is registered under company act 2013. It has a limited
liability and have a right to offer shares to general public. For example- Sainsbury's

Various types of organisation structure
• Functional structure
• Divisional structure
• Matrix structure
• Hierarchical structure

Functional structure
It refers to a type of organisation structure in which the whole
organisation is divided into small groups of people based on their skills
and specialisation. Such as finance, marketing, production and so on. For
success of an organisation its important that whole departments of
organisation effectively performs their part.

Divisional structure
It refers to a type of organisation structure which consist
various parallel teams which are focusing on single
parallel teams. In this type of organisation structure the
whole work is divided into various projects and each team
includes its different departments.

Matrix structure
It refers to a type of organisation structure which
means there are more than one line of reporting
managers. In simple terms it means employee have
to report more than one boss. In this type of
organisation the worker is not responsible to answer
any one boss or manager but he is responsible for
answering more than one boss.

Hierarchical structure
It refers to an organisation structure which contain a direct command
from the top level management to lower level (Crane and et. al. 2019). In
this type of organisation structure higher authorities take all decisions
and then pass it to middle level and lower level. For example- Sainsbury's
company is the best example which follow hierarchical organisation
structure in their organisation.

PESTEL Analysis
• Political factors- Sainsbury's company is established in U.K and their political party stability helps company to make effective
strategies for growth and development of company.
• Economic factors- In context of selected firm, it operates its business in U.K and good economic condition of U.K provide various
opportunities to company. Which helps company to achieve higher growth and revenue.
• Social factors- In context of selected firm, they deals in various supermarket and hypermarket which provide all goods under one
roof. Which will increase satisfaction of customers.

Impact of customers service in success of
business
In context of selected company, customers service plays an essential role in the growth and
development of company. Customers services helps business to retain their customers for
long period of time and extracts more values from them. Customers service helps selected
company to make a good reputation of their company in the mind of their customers.
Customers services also helps business to promote their products and services in market. In
context of selected company, its good customer’s services help them in enhancing their
sales of products, better cash flow, repeat customers and so on

Importance of customers profiling for business
• Communication- In context of Sainsbury's, customers profile helps them to communicate with the
right person at a right time which helps in enhancing their sales. With the help of customers profiles
selected company understand their needs and wants of customers and make a product according to
that.
• Provide necessary information- Customers profiling provide necessary information to company
which helps company to make an effective marketing plan. Customers profiling helps selected
company to in effectively achiving its organisational goal.

CONCLUSION
From above analysis on this report it is concluded that various types of public and
private sectors and all have its different functions of operating business. Organization
structure play an essential role in the development of an organization. For success of an
organization its important that the effectively analysis their internal and external
environment. Customers service and customers profiling both play an essential role in
the success of an organization. For success of any organization its important for
company to understand all these factors effectively.

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