How Businesses Operate: Task 1 & 5 Report - Business Overview

This report provides a comprehensive overview of business operations, encompassing the private, public, and voluntary sectors, along with an analysis of business structures, including flat, matrix, and tall organizational structures. The report explores the impact of local, national, and global environments, employing PESTEL analysis to examine political, economic, social, technological, environmental, and legal factors. Furthermore, it delves into the critical role of customer service in business success, detailing the advantages of good customer service and the detrimental effects of poor service. The benefits of customer profiling are also discussed, highlighting its utility in tracking customers, increasing profit, and gaining a comparative advantage. The report concludes by summarizing the key aspects of business operations and their interconnectedness. References are included to support the findings.

How Business Operate
(Task 1 & 5)

Table of Content
• Introduction
• Private Sector
• Public sector
• Voluntary sector
• Structure of business
• Business scale
• Local, National and Global environment impact
• PESTEL analysis
• The impact of customer services on business success
• The benefit of customer profiling
• Conclusion
• References

Introduction
Every organization is having their different branches and each division
has their own rules and regulations along with roles and responsibilities.
In a firm, the fund which are acquired by exchanging the goods and
services is said as business revenue. Along with this, the cost which is
required to produce, develop and deliver the goods and services are the
expenses of the business.

Private Sector
Partnership : This is type where
the two or more persons together
can run a company in which they
decided to share the profits and
losses in collaboration.
Franchising : This is a business
opportunity that allows the owner
(franchisee) to start and operate a
business by legally using the
ideas and expertise of other
individual.

Public sector
Central government - It is the
government which holds absolute
supremacy over a unitary state.
Structure of central government
vary such as many nations have
created autonoms regions by
giving power from central
government to government on
subnational level like regional
etc.
Co-operative – It is an
organisation which is owned by
group of people who work and
bring benefits to owners. Each
and every member pulls together
and motivate each other for
making cooperative.

Voluntary sector
National:
National business will performed within whole world. This many has
various bases. Such as BT are operating over United Kingdom,
Vodafone etc.

Structures within the business in the selected
country
Flat Organisational Structure – This is an organisation structure in
which there is no or few level of middle management between the
employees and management. In this, the organisation who uses this
structure does not supervises their staff members and promote them by
involving them in the process of decision making. In this structure the
information is passes from the top level to lower level.

Cont...
Matrix organisational Structure – This is an organisational structure in
which the one has to report to two or more leader or supervisors, in this
the relationship are set up in grid or matrix, this structure generally
follow the dual relationship fro both the product and functional
manager.

Cont...
Tall Organisational Structure - This is an organisational structure in
which there are many levels of supervision and management. There is a
long chain of command which is running from top management to the
lower management. This mainly consist of eight level of management,
each level will increase the span of control.

Business scale
European – These are the
organisations which operate all
over the European Union. For
example, Maersk trucking
company is that which deliver
products all over the EU and
worlds largest container shipping.
International- Organisation
which operate at worldwide level
are international organisation. In
simple term, such firms are
offering their services at global
level and have customers also at
this. For instance, Lyca, Lebara
simcards and so on.

Local, National and Global environment
impact

PESTEL analysis
• Political factor
• Economic factor
• Social factor
• Technological factor
• Environmental factor
• Legal factor