Impact of Factors on Business Operations

This assignment examines the various factors that impact a company's success, both internally and externally. It highlights the importance of employee engagement, skill development, effective service delivery, and adapting to changing market conditions. The assignment uses Marriott Hotels as an example to illustrate these concepts and concludes by emphasizing the need for managers to address these factors to ensure business growth.

HOW BUSINESS
OPERATES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different types of public and private organization in UK................................................1
1.2 Different structures within businesses and reason for variation.......................................1
1.3 Impact of local and global economic environment on selected business.........................2
TASK 2............................................................................................................................................2
2.1 Importance of accounting for business success................................................................2
5.1 Functions of HR department in business..........................................................................3
5.3 Key features of employment legislation...........................................................................3
TASK 3............................................................................................................................................3
Profit & Loss Statement of Hilton Hotel................................................................................3
TASK 4............................................................................................................................................4
4.1 Role of team-members and own.......................................................................................4
4.2 Team Development.........................................................................................................5
4.3 Role of leadership and motivational style in context with different situations................5
4.4 The way leadership style and motivational skills are used to influence workers.............6
TASK 5............................................................................................................................................6
6.1 Impact of customer service on business success..............................................................6
6.2 Benefits of customer profiling to business.......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Functions of a company are much affected by business environment which includes many
internal and external factors. It includes employees, suppliers, customers and so on. These
elements which come under macro environment are generally beyond control of organisation.
Apart from these, business environment is more dynamic and complex in nature as it keeps on
changing. Therefore, it is necessary for management to apply changes in operational activities so
that impact of these factors can be reduced. In order to understand how a company operates its
business, this report has been made. In this context an organisation of UK named by Hilton Hotel
has taken. It highlights some basic concepts like a description on how organisation can be
divided on basis of public and private sectors. Along with importance of accounting, team
development, impact of customer service and their profiling has also discussed.
TASK 1
1.1 Different types of public and private organization in UK
In marketplace of UK, companies are generally divided on the basis of their business
criteria. Organisations in private sectors are classified on the basis of ownership like sole
proprietors, partnership, joint corporations and more. These firms are operating business to earn
more and more profit as well as government has no control on them. While firms under public
sectors are fully controlled by regulatory bodies with common aim is to provide welfare to
people. Therefore, it is easy for them to operate their business at global level. Associations like
Nestle, Marriott Hotel and more are come under private while NHS, Royal Bank of Scotland are
some public organisations.
1.2 Different structures within businesses and reason for variation
Enterprises under public and private sectors are also divided on the basis of their
structures through which they carry their operations. These organisations are worked for
different purpose having different target based audience.
Public organisation-
 Vertical structure- In this type of structure, industries have several directors who are
responsible taking important decisions which are used in making policies, programs and
operational procedures. It includes corporations like Military.
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 Horizontal Structure- It embodies with few directors who have equal responsibility as
well as corporate each other in managing the organisation. These structures are generally
seen in Law Firms.
 Matrix Structure- These structures are created mostly in government agencies in order
to handle complex situations. The main advantage of matrix structure is that it helps in
empowering workers by motivating them towards company's objectives.
Private Organisation: Directors:- Private companies have at least one director who takes entire decisions and
manage day to day operations. Company secretary:- Secretary are also acts as directors who are responsible for
administrative matters as well as manage official records.
 Shareholders:- An industry has number of shareholders without whom it cannot exists. It
includes members associated with firm, investors, suppliers and more.
1.3 Impact of local and global economic environment on selected business
In order to expand growth of business, a company always seeks to carry its operations in
another locations. For this purpose industries are needed to concern on rules and regulations of
countries where they want to bring their business. It includes factors like political, economical,
environmental etc. which impact on functions in a great manner. But among these elements,
local and global economic environment create more impact. It assist companies to focus on
political norms before carry out their business at international level. In context with Hilton Hotel,
the changes in economy influence its profitability in both positive and negative manner.
TASK 2
2.1 Importance of accounting for business success
In order to know the actual position of a company in context with finance, it is necessary
for accounting managers to prepare record of daily transactions. Along with making records,
accountant of enterprises prepares further documents also which include Profit & Loss A/c,
Income Statement and more. These statements are helpful in analysing needs of resources like
funds. In hotel industries including Hilton, accounting management helps in planning tourism
destination, operations, developing travel packages as well as in preparing and controlling
budget.
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5.1 Functions of HR department in business
Human resource management refers as the main part of an enterprise which performs
various functions like staffing, planning, organising and so on. The main purpose of HR
department is to design organisational culture as well as provide effective training to employees.
Along with this, managers of this division used to track performance of employees in order to
identify their needs in completing a task. After identification they provide basic facilities to
workers so that they can work in required manner. In Hilton Hotel, some important functions of
managers are:-
 Hire highly skilled candidates from different locations as per need of job.
 Identify needs of employees on individual basis and provide training accordingly in order
to make them capable to do any type of task.
5.3 Key features of employment legislation
To prevent people from discrimination and unusual activities, Government of UK has
made several laws. It includes Minimum Wage Act, Healthy & Safety Act, Equality Act, Sec
Discrimination Act and more. These laws are playing an eminent role in improving working
conditions of employees at workplace. In enterprises discriminations are occurred when people
having different background. So, it is necessary for all firms to facilitate workers with basic
training programs so that they can become able to work in team. Along with this, HR managers
are required to provide information about policies and rules of workplace to employees at the
time of recruitment. In addition to this, employers should ensure that their workplace must be
away from exploiting activities.
TASK 3
Profit & Loss Statement of Hilton Hotel
Income Statement of Hilton Hotel, 2017
All numbers in thousands
Revenue 12/31/2017
Total Revenue 1457000
Cost of Revenue 413000
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Gross Profit 1044000
Operating Expenses
Selling General and Administrative 667000
Total Operating Expenses 1104000
Operating Income or Loss 353000
Income from Continuing Operations
Total Other Income/Expenses Net -60000
Earnings Before Interest and Taxes 353000
Interest Expense -29000
Income Before Tax 293000
Income Tax Expense 125000
Minority Interest -
Net Income From Continuing Ops 168000
Non-recurring Events
Net Income 168000
Net Income Applicable To Common
Shares 168000
Interpretation: As per P&L Statement of Hilton Hotel of 2017, it has interpreted that in
current year this firm has total revenue 1457000. At the end of financial year, it has earned
293000 net income before tax.
TASK 4
4.1 Role of team-members and own
When people at workplace work in team then it is easy for them to complete various task
on time. Through this process, they can share opinion with each other which helps in reducing
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weakness in a wide manner. Therefore, being a part of team I have learned various things like
how to make interaction with each, the way to behave and understand needs of persons within a
group. The main thing which I have gained through working with team-members is that now I
can control my anger and make coordination. In our group, every member is much skilled and
knowledgeable, therefore, managers allocate us various responsibilities according to abilities.
4.2 Team Development
Due to increase in competition, a company's management has to modify its strategies on
daily purpose as it impacts on business functions in a wide manner. Along with this, in order to
gain better position, a firm is required to accomplish its objectives in a short period of time. This
would can be achieved if only by encouraging workers to work in a more profitable way.
Therefore, for this accomplishment managers are required to engage employees in group task.
Along with this in order to develop their team, employers of are needed to focus on:-
Stages of team development – Managers are needed to consider on five different stages
for development of team that are forming, storming, norming, performing and adjourning. In
these stages, forming is first step in which managers are used to give introductions of members
who are being part of team. After introduction next step is storming, in this process team-
members are used to show own skills in order to prove better from others. Further, in
normalization stage, people are now begin to start collaboration with each other and help to
accomplish a task on time. After then, fourth phase of team development is performing in which
efforts and coordination of all people assist managers to complete task in desired manner. At last,
final stage of this procedure is adjourning. Here all members collaborate with each other to enjoy
success of a project.
Motivational theories – In team development procedure, various problems are occurred
in each phase. Therefore, to resolve such issues managers are needed to encourage workers by
using motivational theories. In context with Hilton Hotel, employers use three motivational
theories for boosting morale of employees viz. Herzberg's Motivation Hygiene theory and
Alderfer's ERG theory and Maslow's need hierarchy.
Leadership styles- Along with motivational theories, managers are required to adopt
some styles of leadership such as situational, system and democratic in order to influence people
towards achievement of task.
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4.3 Role of leadership and motivational style in context with different situations
Motivational theories assist employers of an enterprise to encourage and motivate people
for completion of a project on time. In context with team development, managers go through
several stages for building an effective team. In Hilton Hotel, its management is always focused
on providing effective services to guest. Therefore, in order to deal with tourists of different
countries, managers used to divide employees in various groups and distribute responsibilities to
each accordingly. Thus, to get right work of them, employers are used to change their leadership
styles as per requirement.
4.4 The way leadership style and motivational skills are used to influence workers
In group task, many problems are occurred due to different opinion and background of
members. Therefore, managers of Hilton Hotel has used different leadership skills in order to
collaborate team with each other. For example- To generate feeling of equality among group-
members, managers used democratic style of leadership. This style facilitates workers to work in
own style. Along with this, they use situational leadership also to determine needs of team-
members as well as make decisions accordingly.
TASK 5
6.1 Impact of customer service on business success
Business of hospitality sector is focus more on providing effective services to people.
Management of organisations come under this sector formulate effective strategies in order to
give good services to customers. This process would help in retaining them for longer period of
time. The main impact of providing impressive services to people is that it facilitates industries
to gain their growth and profitability in a required manner. If customers in a hotel get best
services then they will spread its efficiencies to other people in a positive way which proves
beneficial in improving its image at marketplace. Similarly, if they will receive ineffective
service then whole process goes in opposite way. Therefore, for this process Hilton Hotel
focused more on facilitating good services to guest.
6.2 Benefits of customer profiling to business
Customers are like oxygen for sustainability and growth of a business. Therefore,
industries of all sectors focused more on providing good services to them (). In this manner in
order to know what customers are seeking with products or services of a company, management
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needs to identify their profiling. It is beneficial for success of business like Hilton Hotel in
following ways:-
 Reduce the competition :- By making good interaction with consumers, it is easy for
firm to keep interest of them with products or services for longer period of time.
 Enhance profitability:- Getting retention of consumers always prove in increasing
growth and profitability of a company like Marriott hotel. Because of this, firm gets
success in carrying out its business in more than 85 countries.
CONCLUSION
From this assignment it has concluded that to operate a business whether of private or
public sectors, it is necessary to concern on factors which impact on their functions. In order to
reduce such impact, a company's managers are required to introduce best employs in firm as well
as engage them inn group task. Along with this, to get a proper work of them, managers should
focus on developing their skills and team development. Further to increase growth of business, it
is essential for firm to provide effective services to customers.
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REFERENCES
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business, government and civil society. Routledge.
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business models. IEEE Journal on Selected Areas in Communications. 34(3), pp.510-
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Adjei, H., and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima
Kwawoman Rural Bank Limited and its Impact on the Communities it Operates.
European Journal of Business and Innovation Research. 2(4), pp.36-47.
Omar, A. T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business
sectors: A framework to guide strategy development for nonprofit organizations.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3).
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Gassmann, O., Frankenberger, K. and Csik, M., 2014. The business model navigator: 55 models
that will revolutionise your business. Pearson UK.
Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University
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Online
Organizational structure, 2018. [Online]. Available
through<https://www.heflo.com/blog/business-management/small-business-
organizational-structure-examples/>.
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