Analysis of Business Operations: Task 1 and Task 5

This report provides an analysis of business operations within the UK, focusing on both the private and public sectors. It begins by differentiating between various types of organizations found in these sectors, such as sole proprietorships, partnerships, and limited companies, detailing their characteristics and operational scopes. The report then explores different business structures in the UK, including sole traders, partnerships, private and public limited companies, explaining their structures and the reasons for their variations. Furthermore, it examines the impact of the global, national, and economic environments on businesses, considering factors like social and cultural influences, government regulations, and economic indicators such as tax and exchange rates. The report also assesses the impact of consumer service on business success, highlighting how consumer satisfaction and profiling can influence customer retention, marketing strategies, and overall profitability. The benefits of consumer profiling are detailed, emphasizing its role in understanding market potential, improving target marketing, and enhancing communication, ultimately leading to increased opportunities and reduced competition. The report concludes by referencing relevant academic sources to support the presented findings.

How Business Operates
TASK 1 and 5

Types of Organisation in private sector in UK:
 The origination are a part of economy of nation which are
operated by individuals and companies. This organisation has
a sole motive of earning profits. The government do not have
any control over these organisations.
 Sole proprietors such as designers, developers, partnership
business such as legal, accounting firms. Small and medium
sizes business such as retail, hospitality food and leisure are
different types of private organisation.
1.1 Different types of organisations found in public and private sector in
UK

Types of Organisation in public sectors in UK:
 public sector organisation are one with are generally owned
and operated by government of the nation.
 The public sector organisation engage private enterprises to
deliver goods and provide services to its citizens.
 Healthcare, Education Social care, housing, Tourism
development, Audit commission, Crown prosecution services,
Department of children school and families.
CONTD….

 Sole traders: the operated generally in retailing, finance and
construction industry. For this no complicated paperwork is
required to set up business. In this decision is made quickly
and close contract can be kept.
 Partnership: in this type of business two or more individuals
come together to carry on a business and introduce capital.
The partners to business agree to share profits among
themselves on predetermined ratio or percentage.
1.2 Different structures of businesses in UK and reasons for
variations

 Public Limited Companies: in a public limited company to
issue share capital to public the company with a high
operating cost, a minimum value of 50000 shares are required
to be issues.
 Private limited companies: company requires at least
one director over age of 16 years, having a registered office in
UK. At least one share must be issued a time of incorporation
and must comply with all government regulations.
CONTD….

Local environment:
Social and cultural factors also have direct impact on
businesses and their growth and revenue.
Also, they play important role in modifying business
operations.
These social and cultural factors are social value,
education development, lifestyle, age, urbanization,
social mobility, demographics, industrialisation
advancement, personalisation.
1.3 Impact of global, national and economic environment on
business

National environment:
Government rules and regulation have great influence
on businesses and have direct effect on profitability
and business revenues.
The more friendly the political environment is the more
company is likely to do well in that country
CONTD….

Economic environment:
Economic factor have direct impact on the business.
Economic environment of a nation is a determining
factor of profitability in that market.
Tax rate, exchange rate, buying power of consumer are
major drivers of economic environment.
CONTD….

A connection which a customer have during a conversation with a company
directly have an impact upon how much the customer is willing to spent on
the product or services offered by the company. The customer can affect a
business in several ways, these are:
 customer services result in consumer satisfaction which directly affects
their retention.
 This affects the conservation rates.
 A bad consumer experience is really tough to make-up which gives a bas
impression of business, so business always try to make consumer happy.
 A quality consumer support attracts new consumers.
5.1 Impact of consumer service on business success

 Understanding untapped market potential
 Improve target marketing
 Helps in choosing better sites.
 Helps in developing marketing activities and programs.
 Assist in understanding buying behaviour interest and
their attitude towards purchasing.
5.2 Benefits of consumer profiling to a business

 Ones a consumer profile is made it is easy to update
and maintain such database.
 Leads to better communication.
 Open gates to greater opportunities.
 Reduces competition as you know your target
customers.
 Enhancement in profits of organisation.
CONTD….

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Hughes, R. C. and Troy, M., 2017. Motivations of One Small
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REFERENCES