Business Operations: Sectors, Structures, and Economic Impact

This report provides a comprehensive overview of business operations, analyzing both public and private sectors, various organizational structures (functional, divisional, matrix, and hierarchical), and the impact of the local, national, and global economic environment through PESTLE analysis. It delves into the importance of accounting for business success, outlining the functions of the HR department and employment legislation features. The report further examines key accounting information using profit and loss accounts, explores the stages of team development, analyzes team roles, and discusses motivational theories and leadership styles. Finally, it discusses the impact of customer service and customer profiling on business success. The Sainsbury's company is used as a case study throughout the report to illustrate the concepts discussed.

How Businesses
Operate

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Explain the different type of organisation found in public and private sectors with
examples......................................................................................................................................4
1.2 Explain various types of organisation structure within the business....................................5
1.3 Describe the impact of local, national and global economic environment through PESTLE.
.....................................................................................................................................................9
TASK 2 .........................................................................................................................................10
2.1 Discuss the importance of accounting for success of business...........................................10
2.2 Explain the functions of HR department in business..........................................................10
2.3 Explain the features of employment legislation..................................................................11
TASK 3..........................................................................................................................................12
3.1 Present the key accounting information by using profit and loss account..........................12
TASK 4..........................................................................................................................................13
4.1 Explain the stage of team development..............................................................................13
4.2 Analysis personal and other roles within a team in an organisation...................................15
4.3 Explain any three motivational theories..............................................................................15
4.4 Explain various types of leadership styles..........................................................................17
TASK 5 .........................................................................................................................................18
5.1 Discuss the impact of customers service in success of business.........................................18
5.2 Explain various importance of customers profiling for a business. ...................................18
CONCLUSION .............................................................................................................................18
REFERENCES .............................................................................................................................19

INTRODUCTION
Business refers to a an organisation or enterprises which is engaged in various activities
such as commercial, industrial, professional etc. (Bonacich and Modell, 2021). It is an organised
efforts of an individual and a group of people who manufacture goods and services and sell their
service and goods for achieving higher profit. For success of an organisation its important that
they successfully operate its business operations. Business operations are influenced by business
environment. Business environment refers to a collection of internal and external factors which
positively and negatively influence growth of business. These factors includes customers needs
and wants, supplier, supply and demand, management, social trends, market trends, economic
change and so on. For this report Sainsbury company is taking into consideration. It is the second
largest chain of supermarkets headquarter in Holborn, London, U.K. It is founded in 1869 by
John James Sainsbury. It has more than 1428 shops and almost 111,900 employees are working
with it. This report includes various types of public and private sectors, different type of
organisation structure,PESTLE, importance of accounting and various functions of HR
department. Other than this it includes various stage of team development, various types of
leadership styles and benefits of customers profiling in business.
MAIN BODY
TASK 1
1.1 Explain the different type of organisation found in public and private sectors with examples.
Public sector- It refers to those companies which are under the control of government,
public funded agencies and other public enterprise which deliver goods and services and public
programs (Boone and et. al. 2019). It provide various services such as infrastructure, public
transportation, healthcare, police, education, military service and so on. There are various types
of public sector organisation which are discuss below:
 Departmental undertaking- It is the oldest form of public sector organisation. It refers
to one of the department of government which have no separate existence and its all
operations are controlled by any department of government. For example Railways,
telephone services, broadcasting organisation.
 Public corporations- It refers to a statutory corporations which is formed by the
government legislations and fully financed by the government. All roles and

responsibility, aims and objective, imitation and so on are decided by the act of
legislation. For example- Bank of England, British broadcasting corporations.
 Government company- It refers to those companies in which 51% of paid-up-share
capital is held by government. This type of companies are operate its business activities
under company act 2013. For example- The highway Agency headquarter in England.
Private sector- It refers to a company which is run by an individual and company for
achieving their personal objectives and making high profit (Brinch, 2018). There are various
types of private sector organisation which are discuss below:
 Sole proprietors- It refers to a type of small business which is owned by a single person
and the owner himself manage and control all activities of business. For example-
Achillious Energy
 Partnership- It refers to the association of two or more people who are come together for
achieving objective and making higher profit. Their profit sharing ratio is divided on the
bases on terms and conditions written on agreement between them. For example- EY
company
 Limited company- It refers to a company which is registered under company act 2013. It
has a limited liability and have a right to offer shares to general public. For example-
Sainsbury's
1.2 Explain various types of organisation structure within the business.
Organisation structure refers to a method through which organisation activities and
operations are organised and control. For success of any organisation its important that they
follow a proper organisation structure and hierarchy. There are various type of organisation
structure which are discuss below:
 Functional structure- It refers to a type of organisation structure in which the whole
organisation is divided into small groups of people based on their skills and
specialisation. Such as finance, marketing, production and so on.

 Divisional structure- It refers to a type of organisation structure which consist various
parallel teams which are focusing on single parallel teams (Cosenz and Noto, 2018).
 Matrix structure- It refers to a type of organisation structure which means there are
more than one line of reporting managers. In simple terms it means employee have to
report more than one boss.

 Hierarchical structure- It refers to a organisation structure which contain a direct
command from the top level management to lower level (Crane and et. al. 2019). In this
type of organisation structure higher authorities take all decisions and then pass it to
middle level and lower level. For example- Sainsbury's company is the best example
which follow hierarchical organisation structure in their organisation.

1.3 Describe the impact of local, national and global economic environment through PESTLE.
For success of any organisation its important that they effectively analysis all internal and
external factors which influence the growth of business. In context of Sainsbury's various
external factors which influence its business are discuss below:
 Political factors- Sainsbury's company is established in U.K and their political party
stability helps company to make effective strategies for growth and development of
company.
 Economic factors- In context of selected firm, it operates its business in U.K and good
economic condition of U.K provide various opportunities to company. Which helps
company to achieve higher growth and revenue.
 Social factors- In context of selected firm, they deals in various supermarket and
hypermarket which provide all goods under one roof. Which will increase satisfaction of
customers.
 Technological factors- In context of Sainsbury's they timely adopt new technology and
recently at the time of COVIDE-19 they come up with new idea of online food selling
and provide options of collecting their purchase from local stores, which increase their
sales and profit (Lee, 2019).
 Legal factors- Selected company conduct its business activity by following all laws of
government. Recently introduction of new Sugar- tax law in U.K affect selected company
most. But Sainsbury's modified their products and get approved from regulatory
authorities and now they are able to launch their product in market.
 Environmental factors- Now a days government and peoples are more attach to
environment. Environmental factors are influence the growth of business most. In context
of selected firm it is working on reducing its waste and carbon emissions operations
which increase its goodwill in market.
TASK 2
2.1 Discuss the importance of accounting for success of business.
Accounting play an essential role in successfully running a business. This is because it
helps in managing all income and expenditure of company and provide a financial information to
all interested parties of business. Various importance of accounting are mention below:

 Help in evaluating performance of business- In context of Sainsbury's, its accounts
reflects the financial position of business. With the helps of it they are able to understand
what's going on their business financially. By maintaining a proper record of all expenses
and income help company to compare their current data with previous data and allocate
their budget.
 Help in preparing budget and future plan- In context of selected firm, its business
budget and future plan are based on financial data. So its very important for company to
maintain a well structured accounting process.
 Maintain reputation of company- In context of selected firm, its financial statement
show its growth to its interested stakeholders. Selected company follow a proper
accounting process which help them to make a effective financial statement which
maintain a good reputation of company between its stakeholders (Lusthaus, 2018).
2.2 Explain the functions of HR department in business.
Human resource department help an organisation to properly manage all employees in an
organisation and increase their efficiency and productivity so that they can easily achieve
organisation goal. In context of selected firm various functions of HR department are mention
below:
 Increase skills and knowledge of employees- In context of Sainsbury's, their HR
department play an important function of increasing skills and knowledge of employees.
They regularly conduct proper training and development programs which increase
employees skills and knowledge. Training and development programs increase efficiency
of their employees which help organisation to achieve their organisation goal.
 Maintain relation between employers and management- In context of selected firm,
their HR department play an important function of maintain good relation between
employers and management. Their managers timely resolve all conflicts and disputes
which helps in maintaining good relation and culture of organisation.
2.3 Explain the features of employment legislation
Employment legislation includes various acts and laws related to rights of employee and
employer and expectations of employee and employer with each other. Their are various laws are
included in employment legislation such as Discrimination act, working hours act, minimum

wages act, employment relation act and so on. In context of selected firm various features of
employment legislation are discuss below:
 Work condition- Employment legislation includes various working conditions such as
rest period, working hours, vacations, special provision regarding women employment,
prohibition of children labour and so on. Its main feature is to ensure that every
organisation is work under these conditions.
 Administration of labour law- This feature of employment legislation include the
functioning of administrative authorities such as labour department, labour inspection
service, encompassing industrial disputes and so on (Moeran, 2021).
TASK 3
3.1 Present the key accounting information by using profit and loss account.
From above financial statement of Sainsbury company it is analysed that its total sales is
increased in comparison of fast two years. Which cause increase in its revenue by 120.5%.

TASK 4
4.1 Explain the stage of team development.
In context of selected company, their team development is based on five important steps
which are mention below:
 Forming- This is the first stage of team development which includes a period of
orientation and getting acquainted. In context of selected company they face high
uncertainty at this level and their employees require proper leadership and the most
knowledgable employee is looked to take control.
 Storming- In context of selected company, this is the most critical and difficult stage of
team development. In this stage because of conflicts and competition the performance of
team is decreased. In this stage selected company motivates their employees to do work
towards achievement of common goal (Ponte, 2019).
 Norming- In context of selected company, in this stage all the conflicts and disputes
between members of team are solved and they all are agree to do work for achieving
common goal. In this stage members of team are learn to cooperate and focus on team
goal which increase their performance.
 Performing- In this stage of team development the team is now fully mature, organizes
and well- functioning. In context of company, in this stage all members are fully
committed towards their mission and form a stable and clear structure. In this stage main
objective of team is to focus on their goal.

 Adjourning- This is the final stage of team development in which the work load is
diminished and all members individually reassigned to another team and the team
disband.
4.2 Analysis personal and other roles within a team in an organisation.
In context of selected company their organisation is based on hierarchical organisation
structure.
All the decisions related to various operations and activities of business are taken by its
higher authority. In selected company, the information is flow from top authorities to lower
level. It will helps company to take quick decisions without interference of other and increase
efficiency of company (Radziwill, 2018).
Nine Belbin team model- This model includes various important roles and responsibility of an
individual in organisation such as the monitor role, specialist, Plant, Shaper, implementer,
completer, coordinator, team work and resource investigator role. Some of them are mention
below:
 Monitor- Its role is to make decisions based on facts and rational thinking and make a
strategic planning. Their main responsibility is to make effective decisions for
successfully facing challenges.

 Specialist- Their main role is to provide expert technical knowledge when senior
management prepare protects on the bases of these specialists.
4.3 Explain any three motivational theories.
Maslow's theory-
This theory is given by Abraham Maslow in 1943, Maslow hierarchy of needs theory is
based on five important needs of human which influence their behaviour. Various human needs
which are included in this theory are Physiological needs, safety needs, social needs, Esteem
needs and self-actualization need (Reis and et. al. 2018).
Mayo motivational theory-