Business Operations: Sector Analysis, Customer Service, and Retention

This report examines the operational aspects of businesses, focusing on the classification of companies into public and private sectors. It uses Morrison, a UK-based retail company, as a case study, exploring its structure, political, economic, and global environment impacts. The report delves into the implications of political and economic factors on businesses, emphasizing the importance of customer service and its impact on brand image and sales. It highlights the benefits of customer retention, such as maintaining customer interest and creating a unique market position, while also providing a conclusion that summarizes the key findings. The report underscores the need for businesses to adapt to changing regulations, technological advancements, and customer demands, with a focus on improving customer service strategies.

How Business Operate
(TASK 1 & 5)

TABLE OF CONTENT
 Introduction
 Classification of business on the basis of public and private sectors
 Structures within the business of Public and Private Companies
 Implications on business at local, national and global economic
environment
 Impact of customer Service
 Benefits of customer retention
 Conclusion
 References

INTRODUCTION
The factors which influences operations of a company are combination of internal
and external business environment. It includes stakeholders, competitors,
technology development, laws and government activities etc. Therefore, for
establishing operations of a business successfully, an industry manager's needs to
take some actions which help in turning affect of these elements in a positive
way. This report has evaluated how companies are classified on the basis of
public and private sectors as well as structure within their business environment.
For this purpose, a private firm Morrison has been taken in this assignment.

Classification of business on the basis of public and
private sectors
Public sector organisation are divided on the basis of state and central basis.
Institutes in this sector are comes under control of government and managed by either
inter department committee or through concerned minister. Therefore, due to control
of regulatory bodies, these firms can operated their business easily by achieving
economic, political and social objectives of a country. While private companies are
distributed on the basis of ownership- individual, partnership and joint stock depends
on size of business. Government has no control on these firms, therefore, making the
business globalise is not an easy task for their management.

Structures within the business of Public and Private
Companies
Structures of the business of companies in UK are divided on the basis
of-
Sole Proprietorship: This type of company consist of a single owner which
shares both risk and profit with no one. Legally these firms enjoys the
most and run their business with simple approaches as they do not have
make alterations because of different partners.
General Partnership: Under this category firms mostly have owners more
than one. Agreement is being done among partners and it totally depends
on them as sometimes it has been located that capital was implemented by
one partner then another.

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Limited Partnership: Under this, partners shares both risks and profits as well.
Agreements which has been done in between people who have done a start up should
be properly elaborated among them so that no issues can take place in upcoming
future.
Corporations: Generating heavy revenue is the main aim of this sort of companies they
follows all the rules and regulations which has been made by a government of United
Kingdom.

Implications on business at local, national and
global economic environment
Morrison is retail company of UK which operates its business in almost 20 countries.
It has 10,000 stores having more than 100,000 number of employees working there.
Political Factors: Since every company has own rules and regulation, therefore, before
moving business to international level, it is necessary for organisation to follow
legislation of regions. This will help in running business in legal manner. Along
with this, due to change in laws, management of industries are needed to modify
their strategies on regular basis.

Implications on business at local, national and
global economic environment
Morrison is retail company of UK which operates its business at different locations.
It has 498 stores having more than 10,000 number of employees working there.
Political Factors: Since every company has own rules and regulation, therefore,
before moving business to international level, it is necessary for organisation to
follow legislation of regions. This will help in running business in legal manner.
Along with this, due to change in laws, management of industries are needed to
modify their strategies on regular basis.

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Economic Policy: Economical condition of a country affects much on sales performance
and business in a wide manner either in positive or negative way. In the period of
inflation, income of persons becomes high so they can purchase commodities on any
price similarly at the time of deflation, this process becomes ineffective. Along with
this interest and tax rates also affects business.

Impact of customer Service
For any firm whether retailer or manufacturer, role of customers are the most important part for
success of their business. If people have got effective services while acquiring commodities of a
company then this will increase brand image of an enterprise in a profitable way. While if they
got bad service then this will impact negatively on sales performance. Therefore, good customer
service is like lifeblood for business of a company which helps in increasing sales performance
and productivity for longer period. Thus, Morrison Company concerns more on providing
effective service to consumers by delivering free for large items, free connection service of
electronic appliances and more.

Benefits of customer retention
Combating higher price: If a company provide good services to customers then this would help in
keeping interest of them in a better way. Along with this, such enterprises can offer their products
on high prices which will help in increasing profitability as well.
Creating niche: Providing effective services at marketplace helps in moving forward from
competitors to a firm. By focusing on providing good services to people at the time of formulating
market strategies shows a sense of uniqueness.

CONCLUSION
This report has evaluated how owners of companies operate their business in order to
gain success in a short period of interval. Along with this, to run a company
whether small or big, management are required to analyse the effect of
environmental factors which impact in both positive and negative way on sales
performance. Due to change in rules and regulations, technological advancements
and demands of customers, management are needed to make modifications in
systems through which they can pay higher attention on customer services.