Business Operations: UK Environment and Customer Service Report

This report provides an overview of UK business operations, covering various aspects of the business environment and customer service. It begins by defining different types of organizations in the private and public sectors within the UK, including sole proprietorships and limited liability companies. The report then explores organizational structures, such as functional and divisional structures, and applies a PESTLE analysis to Morrisons, examining political and economic factors. Furthermore, the report delves into the importance of customer service, highlighting its impact on customer retention, brand image, and business success. It also discusses the benefits of customer profiling, such as tailoring communications and increasing response rates. The report concludes with a list of references.

HOW BUSINESS OPERATE

Table of content
 TASK-1 BUSINESS ENVIRONMENT
 TASK-5 CUSTOMER SERVICE

TASK-1 BUSINESS ENVIRONMENT
Type of organization in private sector in UK
Sole proprietor:
 These business are owned by a single individual.
 That person is having all the power to take decision.
 All the profit earned and loss incurred will be borne by that sole person.

Continued…
Limited liability companies:
 It includes all those companies under which liability will be limited up-to the number of
share hold by shareholders.
It further categorized into various types:
Private limited company-limited by share:
 Under this form of companies the liability of the shareholders will be limited up-to the
amount of investment.
 This means that there is no unlimited liability of the shareholders.
 No shares will be given to shareholders of public company.

Types of organization in public sector
Departmental undertaking:
 It is one of the department of the
government.
 Overall controlled by government.
Statutory corporation:
 Formed by special act of parliament or
central and state legislation.
 Fully financed by government.
 All the power, objectives and limitation
decided by legislature.

Types of organizational structure in UK
Functional structure:
 Under this form the organizational structure the employees will be categorized on the basis
of similar role and task.
 Division made as on the basis of functions performed by the organization.
Divisional structure:
 Under this form the whole organization is divided into various divisions.
 Every division will have all the type of resources and functions.

PESTLE analysis of Morrisons
Political:
 It comprised of all the political forces and changes including laws
and regulations.
 Brexit is one of the major political factor that has influenced
Morrisons and its working.
 Imposition of trade restriction between UK and EU has affected
Morrisons in terms of affecting its sales and profits.
Economic:
 It comprised of factors including fluctuation in fuel cost,
competition, interest rate, employment rate and many more.
 Direct impact over Morrisons in terms of facing fluctuation in
currency, and inflationary situation.

Task 5 – Customer service
 Customer service impacts business success in the following ways:
Customer retention-
An important role is played by customer service in retaining the
customers. Further it also works to extract more value from them. In
this way, by assisting in customer retention, customer service assists
the organization in increasing its profit. This is because repeat
customers have a tendency to spend more with the brand.
Representing brand image, values and mission:
Customer service leads to organizational success by representing the
brand image, its values and mission. In this way, customer service
exerts a positive influence on the customers which helps in convincing
them regarding the strengths of the organization over its competitors.

Following are the benefits of customer profiling to the business:
Tailor relevant audience:
With customer profiling, a business is able to tailor its communications on the basis of
interests of the customers. As a result of this, there is enhancement of customer experience,
engagement as well as sales.
Increase response rates:
With the help of customer profiling, the organization is able to communicate with the required
customers at the right time. As a result of this, it is better able to target its customers. It leads
to better outcomes of the campaigns as well as sales. In this way, it helps in providing a boost
to the response rates.

References
 Burton, R.M. and Obel, B., 2018. The science of organizational design: fit between structure
and coordination. Journal of Organization Design. 7(1). pp.1-13.
 Delana, K., Savva, N. and Tezcan, T., 2021. Proactive customer service: operational benefits
and economic frictions. Manufacturing & Service Operations Management. 23(1). pp.70-87.
 Maryani, I. and Riana, D., 2017, August. Clustering and profiling of customers using RFM
for customer relationship management recommendations. In 2017 5th International
Conference on Cyber and IT Service Management (CITSM) (pp. 1-6). IEEE.
 Perera, R., 2017. The PESTLE analysis. Nerdynaut.
 Santouridis, I. and Veraki, A., 2017. Customer relationship management and customer
satisfaction: the mediating role of relationship quality. Total Quality Management &
Business Excellence. 28(9-10). pp.1122-1133.