Business Operations Analysis: Task 1 & 5 - Public and Private Sectors

This assignment analyzes various aspects of business operations in the UK. It begins by differentiating between public and private sector organizations, exploring the structures within the private sector such as sole proprietorships, and then contrasts this with public sector organizations. The assignment then delves into different business structures in the UK, including sole traders, partnerships, and both private and public limited companies, explaining the reasons for their variations. It further examines the impact of the global, national, and economic environments on businesses, considering local, national, and economic factors. The assignment also assesses the impact of consumer service on business success, emphasizing customer satisfaction and retention. Finally, it highlights the benefits of consumer profiling, such as improved marketing and understanding of customer behavior, along with references to relevant academic sources.

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 is mainly a family business which is owned
and runs by the individuals. All the loses and profits in the
future or present will be bear by the individual only.
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. Most of the shares
are owned by the government or its subsidiaries
 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. Though
chances of conflict is also high they might have different
perception due to which their decision making process is time
consuming.
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.
Environment directly affects the working performance
of business and should be modified according to the
environment.
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.
Company should analyze and monitor the policies made
by the government and then modify their strategies
accordingly.
CONTD….

Economic environment:
Economic factor have direct impact on the business.
Economic environment should be monitored by company
as it helps them to set their price according to the
economic conditions of the country where they are
operating.
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 and their preferences in
context of taste of products.
 Helps in choosing better sites.
 Helps in developing marketing activities and programs.
 Assist in understanding buying behavior of customers
and then place their products accordingly.
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….

D’Innocenzo, L., Mathieu, J. E. and Kukenberger, M. R., 2016. A
meta-analysis of different forms of shared leadership–team
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1991.
DENIS, J .L., Ferlie, E. and Van Gestel, N., 2015. Understanding
hybridity in public organizations. Public Administration. 93(2).
pp.273-289.
Hughes, R. C. and Troy, M., 2017. Motivations of One Small
Business Community to Implement Environmental Sustainability
as a Business Practice. Journal of Environmental
Sustainability. 5(1). p.2.
REFERENCES