A Detailed Report on Business Operations, Leadership, and Incentives

This report provides a comprehensive overview of various aspects of business operations. It begins by examining different types of organizations, specifically focusing on public limited companies like Tesco, outlining their advantages and disadvantages. The report then delves into the concept of the product life cycle, illustrating its stages with examples from the mobile phone industry, such as One Plus, Samsung, HTC, and Nokia. Furthermore, it explores the role of incentives, both financial and non-financial, in motivating employees, providing examples from companies like Tesco and British Airways. Finally, the report contrasts leadership and management, highlighting their distinct functions and importance within an organization, including the roles of planning, controlling, organizing, and leading.

How Business Operate

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
QUESTION 1..................................................................................................................................3
QUESTION 2..................................................................................................................................4
QUESTION 3..................................................................................................................................5
QUESTION 4..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In this report, it will talk about the factors and the aspects which are required to develop
the organization. It helps in building understanding regarding the public sector organization as
well as product life cycle. Further, it emphasize on difference between leadership and the
management.
QUESTION 1
There are different types of organization whose purpose and aims are different. Basically,
there are three types of organization which are private, public a, non- profit organization. Public
limited company is the organization under the UK company law. These companies share are
freely sold and traded to the public (Sealy and Worthington, 2013). Besides this, the main goal of
this company is to maximize the shareholder value. Examples of PLC are Tesco which is a
British retailer.
The advantages of PLC are as follows:
 The organization is the separate legal entity
 The company continues if any of the stakeholder die
 PLC has the benefit that they without any difficulty can borrow funds from banks.
Disadvantages are as follows:
 There are several rules and regulations which are required to be follow
 There is no specific control on the business.
 Profits sharing ratio is more.
There are several advantages which are attached to Tesco as it is counted as the separate
entity from its shareholders. They have main role in the business but if one of the stakeholders
die than all other can continue. In this case, the profit sharing ratio as well as liability will be
changed. As it is the public organization, Tesco sells its food products as well as the grocery in
the minimum rate which is affordable by the consumers (Davies, 2010). This is advantageous for
the public. Besides this, the main benefit of PLC is that they can borrow funds from the bank
easily. As in the competitive environment, regular funds are required by the organization to

expand its operations. But the difficult arises at the time of borrowing. Other companies have to
meet certain criteria to acquire funds from banks.
There are certain disadvantages for the PLC as one of the major disadvantages is that, the
profit is shared among many people. This reduces the revenue earned by the people. This is not
good for the long time period (Kumar, 2016). Besides this, it is directly dealing with the public,
so it has to follow various rules and regulations which sometimes hinder the operations of the
firm. As the public are the owners of the organization so in this case, the organization is not
controlled by any specific individual. This makes the decision process of the company of the
slower and the strategies are developed effectively (Golder and Tellis, 2010).
QUESTION 2
Product life cycle is the marketing concept which basically describes the life of the
product in the market. The product of the company crosses various stages where it becomes
successful and gradually it sees the stage of decline. It is the important concept because
according to the PLC only, the organization makes strategies for sustaining the product in the
market (Stark, 2015). On the other hand, the marketing of the product is also done according to
the present condition of the PLC stage.
Product life cycle includes four stages which are as follows;
 Introductory stage- In this stage, the products is introduced to the customers and the
public are made aware about it. For example: One Plus, the mobile brand which has
recently launched in the market.
 Growth stage- the consumers have been known about the product. In this the sales of the
products are increasing. For example: Samsung mobile phones, as by introducing the new
phones they are increasing their market share (Jørgensen, Finkbeiner, Jørgensenn and
Hauschild, 2010).
 Maturity- The sales are declined and no growth in the product is seen. For example:
HTC.
 Decline stage- The profitability is less that the expense which is generated. For example:
Nokia.
Product life cycle can be better understood by taking the examples of the mobile companies
which are operating in the market. In case of One Plus, the product is at the introductory stage

because it has been introduced in the market and for the product the demand has been created.
Further, the firm is not facing any competition from their rivalry brand. On the other hand, in
case of growth stage, Samsung is increasing its market share by producing different mobiles for
all segments of consumers. Basically, it has been making different price strategy as it is facing
competition from its competitors. In this stage, the profitability of the organization is rising
rapidly and the public are becoming more and more about the product. On the other hand, HTC
is on the maturity stage where the sales are at the peak and in future the sales will not grow. The
profits which are earned by the organization are going down. This is the stage where the firm is
required to develop the strategy to avoid the situation of decline. The last and the final stage is
decline, in which sales have been declined drastically and the profitability of Nokia has been
diminished (Sharma, Saxena, Sethi and Shree, 2011). In this stage, the firm is not incurring
losses or profits which are not beneficial for the long term period.
QUESTION 3
With reference to the organization, incentives are the rewards which are paid to the
employee for encouraging and motivating them so that they can work effectively. In the
company, incentives are the way to increase the productivity of employee in the organization. It
is generally given on the performance of manpower in the firm. It can also be regarded as the
additional benefit apart from the salaries which are paid to the human resource (Fahlenbrach and
Stulz, 2011). All the organization provides incentives but the difference is in the methods and the
way of providing to the employees.
There are many types of incentives which are provided to the employees to make them
motivate so that they can help the organization in their growth. The incentives can be broadly
divided into two categories one is financial and other one is the non- financial. In Tesco
organization, financial incentives are given to the employees in the form appraisal in one year.
On the other hand, there are different companies which provide appraisal two types a year
(Mason and Watts, 2010). This is basically done to retain the employees in the firm. On the other
hand, non- financial are also given by the companies like British Airways etc to the employees
for their good performance. Appreciation for the work is also considered as the incentive which
is provided by the managers to their subordinates. This is given in front of all the members so
that the employee can feel valued for the same.

Besides this, the organization also gives chance to their subordinate in the decision
making process. This is generally done by the big organization, as the manpower is included in
the decision making process. This makes them feel good because they are selected from the
bunch of several people. Further, it is the type of motivation which makes the employee feel
encouraged to work in the organization enthusiastically so that the aims and goals can be
achieved effectively.
Further, the company sometimes provides cabin to the employee whose performance has
remained exceptionally well in the course of time. In this, the finance is not given to them but
their standard is raised as comparison to the other subordinates (Flodgren, Eccles, Shepperd,
Scott, Parmelli and Beyer, 2011). This makes them happy and encouraged. On the other hand,
promotion without raising the salary is also counted in the non- financial incentive.
QUESTION 4
Leadership can be defined as the action in which the individual lead one or group of
people to achieve the targets or the goals of the organization. In the company, the teams are
made and in every team, a leader is appointed which guides the member to achieve the objective
of the firm. On the other hand, management can be defined as controlling or managing the things
which are carried out in the firm (Herman, 2011). The activities regarding the staff are executed
and implemented by the management of the organization. Further, they are also responsible for
making tactics and strategies for the benefit of the company.
Leadership is required in every aspect of the function which is carried out in the
organization. At the time of developing vision, leaders are required to guide the member to
develop the vision effectively because on that basis only, the firm will work in the environment.
With tout proper leadership, the firm will not be able to come to the conclusion as there will be
no one to unite the thinking of all members (Anderson and Anderson, 2010). At the time of
implementing strategies, it is needed to by the firm to carry out the strategy implementation
effectively. Leadership will help in overcoming the conflict and hustle at the time of executing
strategy.
There are 4 functions of management which are planning, controlling, organizing,
leading. They need to plan the action and strategy for the firm. Further, they are required to
control the situations which can affect the business growth and expansion. The management

needs to design the tasks and responsibilities of the manpower (Avolio and Yammarino, eds.,
2013).
The main difference between the leadership and management is that, people follow the
leader in their task but in case of management, they make the people work for themselves. On
the other hand, management controls the individual as without proper control, they will not be
able to manage the people. Besides this, leadership thrives for trust from the subordinates.
Without trust, it will be impossible for the leader to execute their task effectively. The manger
focus is on the system as well as structure which are formed by the organization (Vaccaro and
et.al., 2012). But it is different in case of leadership as they emphasize on the people. It is done
because they are the one who will help them to achieve the targets of the company.
CONCLUSION
From this report, it can be conclude that product life cycle helps in developing strategy.
Further, leadership as well as management is required to build effective organization. Further,
public limited organization has some disadvantages which are required to be considered by the
firm.

REFERENCES
Books and journal
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breakthrough results through conscious change leadership. John Wiley & Sons.
Avolio, B.J. and Yammarino, F.J. eds., 2013. Transformational and charismatic leadership: The
road ahead. Emerald Group Publishing.
Davies, P.L., 2010. Introduction to company law. Oxford University Press.
Fahlenbrach, R. and Stulz, R.M., 2011. Bank CEO incentives and the credit crisis. Journal of
Financial Economics, 99(1), pp.11-26.
Flodgren, G., Eccles, M.P., Shepperd, S., Scott, A., Parmelli, E. and Beyer, F.R., 2011. An
overview of reviews evaluating the effectiveness of financial incentives in changing
healthcare professional behaviours and patient outcomes. Cochrane Database Syst
Rev, 7(7).
Golder, P.N. and Tellis, G.J., 2010. Product Life Cycle. Wiley International Encyclopedia of
Marketing.
Herman, R.D., 2011. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Jørgensen, A., Finkbeiner, M., Jørgensen, M.S. and Hauschild, M.Z., 2010. Defining the baseline
in social life cycle assessment. The international journal of life cycle assessment, 15(4),
pp.376-384.
Kumar, A., 2016. State holding companies and public enterprises in transition. Springer.
Mason, W. and Watts, D.J., 2010. Financial incentives and the performance of crowds. ACM
SigKDD Explorations Newsletter, 11(2), pp.100-108.
Sealy, L. and Worthington, S., 2013. Sealy & Worthington's Cases and Materials in Company
Law. Oxford University Press.
Sharma, A., Saxena, A., Sethi, M. and Shree, V., 2011. Life cycle assessment of buildings: a
review. Renewable and Sustainable Energy Reviews, 15(1), pp.871-875.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (pp. 1-29).
Springer International Publishing.
Vaccaro, I.G., Jansen, J.J., Van Den Bosch, F.A. and Volberda, H.W., 2012. Management
innovation and leadership: The moderating role of organizational size. Journal of
Management Studies, 49(1), pp.28-5