How Businesses Operate

This presentation provides an overview of how businesses operate, including the types of organisations found in the public and private sectors, different business structures, and the impact of the local, national, and global economic environment on businesses. It also discusses the impact of customer service on business success and the benefits of customer profiling to a business.

How Businesses Operate
TASK 1 and TASK 5

TASK 1

1.1. Types of organisations found in the
public and private sectors
The main types of business organisation within private sector of UK
are:
•Sole traders: It is own and operated by one natural person and in
which there is no legal distinction between owner and business entity.
•Partnerships: This is an arrangement where two or more person
parties agreed to manage and operate business.

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• Corporations: IT is a legal entity which is separated from its
owners. Corporations enjoyed rights and responsibilities, which are;
the right to enter into contracts, loan and borrow money, sue and be
sued, hire employees, pay taxes, etc.
• Franchise: It is an authority given by an organisation to an
individual or a group , allowing them to sell their goods or services.
The public sector enterprises within UK is responsible to conduct all
the Public activities within UK. This includes; Education and
medical care, Tourism Promotion. Collection of Tax and healthcare
within United Kingdom.

1.2. The different structures within the
businesses
There are different types of structure within different forms of
organisation:
•Sole traders: The sole proprietorship has simple organisation set up it
includes; an individual along with business place or assets for
conducting their business. Tax and legal requirements are minimal.
•Partnerships: The process of setting up a partnership business is
simple and less complicated. It involves two or more people that
operates a business as co-owners and share income. There is a
partnership deed showing the agreed ratio between each paryner.

• Corporations: Organisational structure of corporations consists of,
Board of Directors, Officers, Employees and Shareholders.
Corporations can have many types of structure depending upon it
nature and scope of business.
• Franchise: There are different forms of Franchise business within
UK. These includes; Local, International, Sole trader and
partnership Franchising. Thus, different forms of franchise have
different organisation structure within their business.

1.3.How the local, national and global
economic environment impacts on the
business.
• The H&M is leading Swedish clothing brand. Company operates
globally across the world.
• H&M is suffered from the impact of economy of different nations.
The local economic environment within UK is not stable company
suffers from society being increasingly influenced by growing
digitalisation, due to this there is a substantial changes and shift in
industry.
• More over company suffers from Brexit problems within UK and
drowning income of people.

TASK 5

5.1.The impact of customer service on
business success.
• Customers are important assets of every business.
• The good and timely services to customer will create great impact
on business.
• It will help H&M to generate revenue and build up a strong brand
loyalty for their products.
• The better customer services will generate customer retention and it
will reduce cost asserted on different customers.
• Further, it help to gain new customers to organisation.
• Company can raise price for their products and charge more to
customers that's because most consumers are willing to pay little
higher for better quality.

5.2. The benefits of customer profiling to
a business
• Better Communication: This will promote better communication
with potential and existing customers and H&M can easily sell off
their products through this strategy.
• Reduces Competition: Company knows the elements of maintaining
strong customer relationship are less exposed to competition.
• Increase profitability: This helps to increase revenue of company
which is good for the company in future..

References
• Chen, J. S. and Tsou, H. T., 2012. Performance effects of IT capability,
service process innovation, and the mediating role of customer service.
Journal of Engineering and Technology Management. 29(1). pp.71-94.
• Gaspar, J., and et. al., 2016. Introduction to global business:
Understanding the international environment & global business functions.
Nelson Education.
• Griffin, P.A. and Wright, A.M., 2015. Commentaries on Big Data's
importance for accounting and auditing. Accounting Horizons. 29(2).
pp.377-379.
• Ha, J. and Jung, Y., 2014. Evaluation of CM Capability based on Business
Functions for International Plant Construction. Korean Journal of
Construction Engineering and Management. 15(6). pp.3-15.