Business Operations Report: H&M Company Analysis, UK Environment

This report provides an analysis of Hennes & Mauritz (H&M)'s business operations, focusing on its structure within the UK market. It begins by differentiating between public and private sector organizations, setting the stage for an examination of H&M's functional organizational structure. The report further explores the impact of the business environment at local, global, and national levels, with specific attention to how factors like political stability and events such as Brexit have affected H&M's sales and profitability. The crucial role of customer service in the clothing sector is also discussed, emphasizing customer retention. Finally, the benefits of customer profiling are highlighted, including improved communication and reduced competition. References to academic sources are included to support the analysis.

HOW BUSINESS
OPERATE

Cover Content
• Introduction
• Kind of Organisation in Public and private sectors
• Different structures within businesses of UK
• Impact of business environment at local, global & national level
• Impact of Customer Service
• Benefits of Customer Profiling
• Conclusion
• References

Introduction
Business environment is an important for every organisation as
directly impacts the performance of employees and company.
It is made up of two environment which is external and
internal. In this factors that are included are like suppliers,
technologies, rules and regulations, social environment etc.,
For this assignment company which is been taken is Hennes &
Mauritz which deals in clothing in United Kingdom.

Public and private sectors Organisation
Basically three kinds of organisational sectors are there but report
will focus on two i.e. public and private and these are
explained below:
Public Organisation: These are the sectors that are run and
regulated by regulatory bodies of a nation. In terms of finance,
taxes that are paid by citizens are used in order to provide
better services and facilities. More than 50 % shares of
company is owned by government due to which they have
more power while taking decision for the company.

Continue…….
Private Organisation: These kind of business is run by
individual or group of people where there main aim is to
satisfy the needs of customers and earn more profitability from
that. Main purpose of these companies is to get maximum
amount of profit from goods and services firm is giving to its
customers.

Public and private sectors Organisation
Every company has its own structure of operating its business
whether small, medium or large. Thus, entire concept depends
upon size and structure of firms. For having better operations
it is necessary that an effective communication is established
in enterprise so that superiors can have better interaction with
its subordinates..

Continue…….
Functional Organisational Structure: This kind of functions are
basically very common in nature and are adopted most of the
companies for their business purpose. Hennes & Mauritz for
operating their business has adopted this organisational
structure and it helps company to increase their profit as work
has been assigned to employees according to their skills and
capabilities

Impact of business environment at local,
global & national level
H&M is one of the leading company that work for providing
services in clothing sectors of different age group whether
men, women, teenagers, old aged people etc., company is big
and they are operating its business in around 62 countries
under which H&M have close to 4,500 stores and
approximately 132,000 number of people are working for
providing maximum benefits in return.

Continue…….
While establishing its business company has chosen countries
that are politically stabled and doesn't face any serious kind of
problems like France, Denmark, Germany etc., because of
some currency translations and current incident of Brexit,
H&M faced lower down of sales and profitability of around
59.7 percent.

Impact of customer service on business
success
All organisations of private and public sectors concerns more on
providing effective services to customers as it impacts directly
on their profitability. In Clothing sector, retention of old
customers is much necessary for its growth. Management of
these companies are much concern on delivering high services
to customers according to their demand and need.

Benefits of customer profiling to a
business
Customer profiling is helpful in understanding needs and
demands of them for company's management
Effective communication:- Due to customer profiling, their
engagement experience improves which helps them to make
effective communication with customers.
Decrease the competition :- Making good connection with old
consumers, help managers to retain them with services for
long time

References
Prajogo, D. I., 2016. The strategic fit between innovation
strategies and business environment in delivering business
performance. International Journal of Production Economics.
171. pp.241-249.
Santos, F., Pache, A. C. and Birkholz, C., 2015. Making hybrids
work: Aligning business models and organizational design for
social enterprises. California Management Review. 57(3).
pp.36-58.