How Business Operate

Learn about the different types of organizations in the public and private sectors and their operations. Understand the impact of customer service and the benefits of customer profiling. Explore the economic environment and its effects on businesses.

How business operate

1. Types of organization in public and private sectors
Public Sector
 Those sector which are owned by government is known
as public sectors.
 Their motive is to serve for public and public enterprises
usually do not mean to earn money from the public.
 There are various types of public sector in UK such as
Cambridge City Council, it is a institution which is
governed by government and different charity run for
small age children.

Continued..
Private Sector
 This sector is run by private individuals and
groups and their mean is to earn large amount of
profit.
 Private sector do not contributes to the economy
of UK. Some examples of private sectors are
TESCO, which is a leading company in UK who
offer variety of products.

2. Different structure
Functional Structure:
 This structure is beneficial for small group of business and
through this structure each department of an organization can
search to find out talents and knowledge of worker.
 There is wide variation in each sector because of lack in
coordination and communication between departments.
Divisional Structure:
 This structure is helpful for large companies such as in private
sector who operate huge geographic area. This structure is
beneficial because it help to met the need rapidly.
 It need more time and it is quite costlier that is why many
companies usually avoid this structure.

Continued...
Matrix Structure
 It is a mixture of both structure and usually used by
multinational companies.
 This help to create power in all organization because it follow
dual management system.

3. Impact on economic environment
 Local economic factors such as high employment rates
affect the profit and price of TESCO. It also affect its
marketing opportunities and performance in local markets.
Different substitute affect the demand of product and
services of TESCO.
 Having strong retail service TESCO create so many rivals
against it and due to low price of its product it faces loss in
its national economy.
 TESCO affect the global economic environment such as
manufacturing facilities vary from country to country and
cheap labor, low taxes in foreign countries force TESCO
to establish facilities in other countries.

TASK 5
1. Impact of customer service

Continued..
 Providing good customer service will improve the
business's profit.
 Responds to every complaints on timely creates
good image of a business.
 Help to build loyal image in a market.
 Good customer service will help to prevent a
business from negative reviews.
 Positive reviews about a business will make a
company financially strong.

2. Benefits of customer profiling
 Help in better communication.
 Develop better opportunities for a company because
customers provide feedback and suggestion.
 Help in increases profit.
 A good customers profile help in reduces competition.
 If a company know customer profile then it help to
attract more customers and making best strategy for a
company.

References
Buchanan, D. A. and McCalman, J., 2018. High performance work systems:
The digital experience. Routledge.
De Vito, L. and et.al., 2018. Employee motivation based on the hierarchy of
needs, expectancy and the two-factor theories applied with higher education
employees. IJAMEE.
Huda, M. and et.al., 2018. Transmitting leadership based civic responsibility:
insights from service learning. International Journal of Ethics and Systems,
34(1), pp.20-31.