How Business Operates

This report examines the various aspects of how a business operates, using Sainsbury's as a case study. It covers topics such as accounting, human resource management, team development, leadership styles, and customer service, highlighting their significance for business success. The report also analyzes Sainsbury's strategies for achieving its goals.

HOW BUSINESS
OPERATES

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
2.1 The importance of accounting for business success ........................................................3
5.1 The different functions carried out by the HR department in business ...........................3
5.2 Key features of employment legislation...........................................................................4
TASK 3............................................................................................................................................5
3.1 Accounting workshop.......................................................................................................5
4.1 The stages of team development......................................................................................6
4.2 An analysis to determine own and others’ roles within a team........................................7
4.3 Three motivation theories.................................................................................................8
4.4 Different types of leadership style....................................................................................8
6.1 The impact of customer service on business success.......................................................9
6.2 The benefits of customer profiling to a business..............................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is a collection of factors which impacts on operations, growth and
sales performance either internally or externally (Adjei and et. al., 2014). From these elements,
some are under control of management while others are far behind. Therefore, in order to operate
business in a perfect manner management need to analyse these attributes in a proper manner.
Business organisation involves different sectors and branches which have their own
responsibilities and government. In this report the selected organization is sainsbury base. The
report includes a wide discussion about the organizational structure in UK based companies and
various aspects of Sainsbury. In UK, there are various types of business which have different
operational functions and activities. Such organisation can be differentiated by determined vision
and goals. Along with this, accounting refers to firm which presented in the company success
and failure in large number of persons. Owners and company managers are carry out it in the
context of an organisation. The relationship of consumer can be effective and helping with
achieving desired goals and objectives. Sainsbury is the second largest supermarket chain in the
united kingdom. The roles and responsibility of employer is to contain with appropriate
personnel which practices to implemented in correct manner.
TASK 1
Covered in PPT
TASK 2
2.1 The importance of accounting for business success
For operating business, this is sentential to document information, evaluate
reports and create some data and information regarding assets, debts, liabilities, etc. (Palattella
and et. al., 2016). Accounting information is fundamental for their decision making and
administration of Sainsbury. Along with this, management are not determine any type of
decision without making reasonable data and figures. There are certain points which consist with
benefits of accounting system for success and growth of business are as follows:

 Help in income and revenue can frame budget and manage activities or functions
 Finance department can frame appropriate budget and manage activities
 Accounting can help in acknowledgement loss and profit of business operation with
determining certain functions or activities.
 Assist in managing and controlling financial and position of market of an organisation
5.1 The different functions carried out by the HR department in business
The duty and responsibility of company manager is to contain accurate personnel and
qualified workforce which help in operating and managing whole business functions in
effectively (Petro and Gardiner, 2015). There are various practices which are performed with the
personnel that are described are as follows:
 Recruitment and selection – HR can implement hiring process for occupy vacant places
and select new applicants to increasing at workplace. There are different process of
selection and hiring approaches that includes internal and external recruitment for major
effective implemented of such activities and functions.
 Training and development – Management conduct appraisal, providing encouragement
for analysing skills and abilities of employees with the help of comparing with standard
results for performing effective practices. It will help in providing new alterations, skills
and development to workers which face different issues and problems.
 Employee relation management – Company manager form friendly relations along with
staff members to retain with them stimulated and dedicated regarding their work. They
have to manage and maintain certain negotiation process, anticipate disputes and conflicts
and evaluate proper resolution in more appropriate manner.
 Staffing – It is the fundamental activity and function which help qualified employees on
their appropriate job role and organise more effective exercises to motivate the work.
5.2 Key features of employment legislation
State of nation structure of various rules and regulations for safeguarding staff members
rights and their advantages to their employees. There are certain traits which are related to
legislation of employees that are described as follows:
 Authorities has been framed health and safety legislation, so the employees are getting
secure in this working environment and positive workplace. Along with this, people are

get more authentic duration and working hours which directly affect on their mental
ability and health.
 Discrimination laws help in providing more fair treatment for disable employees where
employees equality act can lead towards fair treatment and limited biasses on the gender,
caste, religion and other grounds.
 HR present members in more opportunities on the determined results and performance
basis, as equality can be supply through treating and providing equal opportunities to
both.
TASK 3
3.1 Accounting workshop
Sainsbury's profit as well as loss statement of 2017
Revenue 2017
Total Revenue 31907000
Cost of Revenue 29919000
Gross Profit 1988000
Operating Expenses
Selling General and Administrative 1207000
Operating Income or Loss 781000
Income from Continuing Operations
Total Other Income/Expenses Net 41000
Earnings Before Interest and Taxes 777000

Interest Expense 165000
Income Before Tax 612000
Income Tax Expense 153000
Net Income From Continuing Ops 414000
Net Income
Net Income 459000
Preferred Stock And Other Adjustments -
Net Income Applicable To Common Shares 459000
Interpretation: It can be analysed that the organisation has earned 45900 net profit in the year of
2017 and 781000 loss and benefits in the year.
4.1 The stages of team development
In Sainsbury, management frame groups and teams which develop and deliver
productivity of effective services and facilities in the large market place. There are various
number of team development which personnel performed that are discussed as follows:
Team Development Stages:
 Forming – It is the first stage where staff members act as more pleasant and polite for
understanding with each other opinions and alterations.
 Storming – It is next stage where team push itself to edge to form in past steps which can
lead towards disputes and conflicts.
 Norming – In this phase, the team members establish evaluating and understanding their
respective opinion and also provide power to their leader.
 Performing – In this stage, team lead towards hard work without friction and reaching
with their desired goals and targets.

 Adjourning- It occurs when group wraps up their work, at that time it is very important
to appreciate the team member and closure of their work with appreciation so that their
motivation enhanced.
Source: Team Development Chart, 2016
4.2 An analysis to determine own and others’ roles within a team
In an organisation, workforce desire for an effective team on the grounds along with their
skills and abilities in regarding to perform various tasks in more effective manner and also
complete their aim within given time frame (Reim, Parida and Örtqvist, 2015).
My roles: My interpersonal abilities was formulated and developed as health and friendly
relation which was form by subordinate. Along with this, my leadership and communication
abilities emphasise according to their guidance and instruction which was rendered to employees
regarding their duties and tasks for assigned workers. Colleagues are doing different practices to
effectively activities to achieving goals and targets deadlines, if the team are allotting desired
targets as per their skills and abilities.
My responsibilities: I am responsible to manage and maintain various talented
employees along with effective workers for long time period. Therefore, an organisation deliver
more correct activities according to their wants and requirement of customers after that they can
achieving desired goals and objectives in better manner.
Reporting structure: The reporting structure which I have to follow is the formal
structure , which can be found on its organization chart of business organization.
The role of the other departments: The other departments also plays very important
roles in team such as finance department provides various budget, production departments helps
in producing required units, marketing department helps in acquiring information about new
market trends and promotional activities which helps a team in achieving their task and goals.

Source: Divisional Organizational Chart Structure, 2019
4.3 Three motivation theories
There are various methods and techniques, theories of motivation which can be used by
business organisation so Sainsbury. There are various mentioned points that are as under:
 Hierarchy need theory of Maslow – It is one of the most known and earliest determined
motivation theory which are given by Abraham Maslow in the year of 1940 – 1950
(Warner, 2018). It is the major that consider five divide such as psychological needs,
safety need, love and belonging and self esteem and other is self actualisation. For lower
the unsatisfied requirement which is became more dominant or significant which is more
powerful necessitate. According to the need of motivation, priority requirement which are
framed in the pyramid from top to bottom.
 Alderfer – ERG theory has been distinguished that motivation requirement in divided
into three parts such as existence, growth and relatedness. Safety and psychological need
to combined that can lead towards possible requirement.
 Expectancy theory of Vroom – This theory emphasise over the content and process of
motivation which combine reinforcement and equality theories. Expectancy define as
belief of person of individual success, instrumentality can be claimed and valance can be
defined as individual rewarding values.

Assessment of theories on the basis of my judgement: According to my judgement the
Hierarchy need theory of Maslow is more suitable for motivating the workforce, because it
defines all the wants and need of employee which helps in motivating him.
4.4 Different types of leadership style
There are various types of leadership styles such as Autocratic, democratic, gratifier,
innovator etc.. the detailed description of these styles as follows:
Autocratic leadership style: These types of leaders strongly focused on the work and
strictly do command to followers to do work at time.
Democratic leadership style: These type of leaders not only provides guideline to the
followers but also participate with them.
Laissez -Faire leadership style: These type of leaders provides no guidance to followers
and leave the all decision making on followers or group members.
Transformational leadership style: These type of leaders are extra talented and goal
focused persons, because they are not only provide guidelines to the members but also help in
achieving their potential goals.
So above discussed are the some of leadership style from variety of leadership style.
Sainsbury is a large business organization so according to the business operations at distinct level
it may be use different types of leadership styles.
6.1 The impact of customer service on business success
Management need to make and create employees to implement task in better manner so
the workers supply services according to their needs and demand of people (Weiss, 2014).
Sainsbury is one of the largest retailing company which provide better services quality to their
customers to make good identified. Administration execute more advanced technology in
framework such as payment options to render effective and fast services to an individual.
Sainsbury is facing higher success due to its higher customer service quality, because a
impressive customer service is very helpful in retaining the customers.
6.2 The benefits of customer profiling to a business
There are various advantages which are deliver to consumer that assist in Sainsbury
success and growth. These are some points which are as follows:
 Company can easily identifying their preferences and interest of customers

 Manage can get absolute and certain information about customers
 Management can adopt and use such methods and techniques such as computer and
internet to manage their customers and stock records.
 Easy customer acquisition is possible with the help of customer profiling.
 Very helpful in announcing offers and other benefits to specific customers.
CONCLUSION
From the above mentioned report it can be analysed that Business organisation involves
different sectors and branches which have their own responsibilities and government. There are
different types of business concerns which operate and regulate that exist in the industry which
have different on the grounds of objectives, structures, size and their scope. There are various
practices which are performed with the personnel.

REFERENCES
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Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
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Warner, K., 2018. Building rules: How local controls shape community environments and
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Weiss, J. W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
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