Analysis of Business Operations: Structures, and Customer Service

This report provides an overview of how businesses operate, covering various aspects crucial for success. It begins by differentiating between private and public businesses and then delves into different organizational structures, such as functional and product-based structures, highlighting their roles. The report further examines how the economic environment, both local and global, impacts business operations. A significant portion is dedicated to the importance of customer service, its impact on profitability, and how it affects brand image. Finally, the report explores the benefits of customer profiling, including improved communication, increased opportunities, and reduced competition. The content is supported by online references that provide additional insights into the discussed topics. The report is designed to help students understand core business concepts and their practical applications.

How Businesses Operate

INTRODUCTION
A business operates in different sector with various
services and structure in order to provide quality
services to customers.

1. Types of organisation
Private and public businesses are common and can be
easily found in any country. There are a lot of
businesses operating in UK in both public and private
sector.
Private business: The business is owned and managed by
an individual or private group that there is no
involvement of state. The main purpose of such
businesses is to make profits generate revenues.
For an example, Iceland business, United Kingdom.

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Public business: Public businesses are managed and
controlled by local government to provide services to
people living in that particular nation.
For an example, Pentland group, United Kingdom.

2. Different structure of business
Business structure is a crucial part of any organisation
that it helps to improve and develop performance of
employees if managed and controlled well. The
structure of every business is different from each
other as per the requirement and development in
market share effectively.

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Functional business structure: The structure if very
common and used by many businesses. It is a
structure used by human resource management and
accounting in order to separate each area of work in
order to manage work of others effectively.
For an example, managers report to their top level
management operating in various functional areas.

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Product business structure: The structure is based on
everting and specific in relation to a particular
product or service.
For an example, Executive an over kraft service or
product is responsible for each product which is
under the label.

3. Economic environment effect business
Internal or external environment directly affects the
working of organisation and its management
responsibilities to scan their environment and modify
their strategies and policies accordingly.
Local environment: Local environment has a direct
impact on business and its overall development.
Competition, global warming local government,
political and small businesses focused on
sustainability encourage environmentally friendly
practices within a region.

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Global environment: There are some global economic
factors such as interest rates, demand and supply,
inflation rates and recessions which has a great
impact on business productivity and profitability.
National environment: National environmental factors
such as periods of growth, unemployment,
discretionary spendings and taxes has an impact on
business operational activities. Businesses are
interlinked which creates a powerful force in terms of
market without borders.

1. Impact of customer services
A business become successful by providing good
customer services to all the consumers in the market.
Customers who receives quality services helps to
improve and develop business bottom line by
behaviour of repeating purchasing effectively. The
bad customer service will decrease profitability as
well as brand image. It is analysed that a happy
customer tells at least three of his or her best friends,
family members and others about his or her
experience with brand after using the product and
service effectively.

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How customer service can affect business
It is analysed that there are 80% people likes to work
with businesses who provides good services.
Enhancing consumer retention by 5% can increase
profitability up to 125% effectively.
Loyal consumers are worth ten times as their first
purchase on average.
Business who prioritise customer service can make 60%
higher profits than its competitor.

2. Benefit of customer profiling
There are several benefits of consumer profiling to a
business which helps to increase profitability and
production. This will also help to achieve desired
goals and objectives effectively. Here are some
benefits described below:
Better communication: Customer profiling can develop
better communication for business because they
provide valuable suggestions and feedbacks. This will
help to make changes in products and services
according to their needs effectively.

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Greater opportunities: Opportunities in terms of
valuable suggestions can help to make extra efforts
from business towards customers. It will help to make
process much easier for company as they know more
about customers.
Reduces competition: A business is able to determine
key elements in order to maintain a strong
relationship with customers. This will help to
compete others in the market effectively.

REFERENCES
Online:
Deborah Edwards, 2015. Impact of customer service.
Online available through:
https://www.lireo.com/how-customer-service-can-
impact-your-business-infographic/
Susan Oakes, 2016. Benefits Of Customer Profiling.
Online available through:
http://www.m4bmarketing.com/5-benefits-of-
building-simple-customer-profiles/