Comprehensive Report: Business Operations and Argos Analysis

This report provides a detailed analysis of the business operations of Argos, a retail company. It begins by exploring the types of organizations, focusing on private and public sectors and their structures, including flat and hierarchical models, and their impact on Argos. The report then delves into the importance of accounting information for Argos, including income statements and their interpretations. It also examines the roles of HR, including motivation, compensation, and performance appraisal, as well as key features of employee legislation. The report further discusses teamwork, stages of team development, and motivational theories applied within Argos. It also covers different leadership styles, the impact of customer service on business success, and concludes by summarizing the key findings. This report provides a comprehensive overview of business operations, making it a valuable resource for students on Desklib.

How Business Operates

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1Types of organization.........................................................................................................................3
1.2 Structure of business and reasons.....................................................................................................4
1.3 Impact of local, national and international effect on Argos...............................................................4
TASK 2......................................................................................................................................................5
TASK 3.......................................................................................................................................................6
3.1 Accounting information.....................................................................................................................6
4.3Three motivational theories:..............................................................................................................7
4.4 Types of leadership styles..................................................................................................................7
TASK 5..........................................................................................................................................................8
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
Business environment consists of various factors such as external and internal so that they can run
successfully and efficiently. It helps firm to carefully analysis these forces and can make changes in
internal plans and policies (Macaulay, 2018).
. Hence they can work effectively and efficiently. Through this they can increase their profits and can
enhance the market share. Report discusses Argos company which is a retail firm. Assignment describes
about key features of business environment. It also describes about the different functions of
businesses. It further describes about improving accounting skills. It also describes about managing in a
team. Impact of customer service and benefits of customer profiling on businesses.
TASK 1
1.1Types of organization
There are different organizations found in provide and public sector. Types of organizations in Argos
are-
Private sector: These companies are fully controlled by private sector . Types in Argos are
Sole proprietorship: These fully controlled by one person. So hence Argos can run with one individual.
Individual has be to share losses and profits
Partnership: These are run by two or more persons. They have to share losses and profits. So it is
beneficial than sole proprietorship as they can share profits among two or more persons.
Limited liability: They are structure in which company has to pay limited to its debt and they do not
have to pay extra money and other assets related to their business.
Public corporations: There are different types of firms which are available in public sector. They are
Departmental organizations: They are controlled by ministry . For example there is post and telegraphic
department in Argos which is controlled by this sector.
Statutory corporation corporations: These firms are passed by act of parliament. It is created by
different rule and legislations and they can control different activities.
Through this firm can run profitable and smoothly. Argos can earn more profits. Thus it leads to
increase in market share.
Govt company: It is passed by govt regulations act, 1956. In this 51% of capital is held by state or
central govt. It’s main purpose is the purpose of businesses (Laszlo and Cescau, 2017)
.

1.2 Structure of business and reasons
It is the structure in which there are two businesses. So there are firms in which there are different
structure. Structure followed by Argos are-
Flat organization structure: There is an structure in which there are less levels. Through this there are
less confusion and hence they can create effective policies and can earn more revenues (Grayson,
McLaren, and Spitzeck, 2017).
Tall hierarchy structure: It is the structure in which there are different and many levels so hence they
can be confusion. But advantage is that they can create different plans and policies so hence they can
create many strategies.
Argos follows less hierarchical structure in which there are less level hence they can create less and
effective plans and policies so hence they can create effective plans and can earn more revenues.
By following this structure this also leads to less confusion among all buyers. As a result they can create
effective strategies and they can earn more revenues. This also leads to increasing market share. So they
can give strong competition to other firms such as Lidl and Aldi.
Through following this structure, it can increase the coordination and corporation level in the firm. So
hence work can be done more effectively and efficiently. As a result they can enhance their reputation in
market as well as in front of all consumers.
1.3 Impact of local, national and international effect on Argos
There are different business sand effect of local, national and international have different effect on the
Argos. Hence firm have to carefully evaluate these factors so that it can run successfully . Through this
they can modify their plans and strategies according to the changes. Hence it can run successfully and
smoothly. Through this they can enhance the market share.
Impact of local economy: There is drastic impact of local economy. For example there is demand of
online application and shopping. So hence Argos firm tries to products incline and hence it can earn
more profits.
National impact on business: If there is increase in tax rates then company has to pay extra tax on other
products. So it can reduce profits of firm. For example government has fix high rates for the company so
hence it increase the rates high for the country. Thus as a result they cannot sell many products to
various users and it can decrease the market share.
International effect on business: There is international effect on business. For example there is
earthquake or flood in internationals country. So hence there is worst situation of that nation. So it can
have a negative effect on Argos as prices of these products have a higher price (English, 2006)
.

TASK 2
2.1 Importance of accounting for Argos
Accounting is very important for Argos. Proper funds are required to achieve targets but business runs
to earn profit. To give correct ideas to workers it is essential that company adopts proper planning. To
perform activities in better and effective way it is essential that management of Argos take certain
measures. Accounting shows financial status of organization. Company has to create policies which give
right information to stakeholders (Håkansson and Ford, 2002)
. Using proper allocation company can gain trust of employees and consumer both. For effective delivery
of information accounting becomes necessary. Accounting also tells about revenue and expenses of
projects. Proper assistance of legal body ensures its effectiveness.
5.1 Functions of HR
HR of the Argos company have an important role to play. Employees must be given chance so
that they can achieve targets in effective way. Since every worker has different perception and way of
working it becomes extremely important for the company to have a HR manager to achieve targets. For
maximizing company’s profit it is necessary that workers remain motivated and give their level best. HR
of the company has the following roles-
Motivation- Proper targets should be set to fulfill all objectives in the best way. Manager needs
to analyze the external factors and make employees aware of them so they know about the changes in
effect. It is essential that manager motivates employees so they do their jobs in the best way
Compensation and remuneration- Proper compensation is required to get the activities done in
the most effective manner. Employees work in the company to earn money in return for their services.
HR manager becomes responsible to give proper pay so that employees do the job in a better way. It is
essential for the betterment of the company.
Performance appraisal- All the employees perform in different way. It is important to give
chance to employees to earn more through hard work and contribution to the company. Different work
is done by different employees and it is the job of the HR manager to analyze their need and take
necessary actions. Performance appraisal keeps the feeling of competitiveness alive among the workers.
5.2 Key features of employee legislation
Argos company deals with society to operate. Employees need to feel safe at work place.
Company has to take steps for company’s growth. There are certain laws such as equal remuneration
act, employment act, discrimination act, etc. which regulates the company’s working in a better way.
Argos also has employees so that they apply necessary changes to avoid government involvement. A
legal body is also required to make changes and amendments in effective way. When government
policies change Argos has to modify its policies (Chesbrough, 2006)
.

TASK 3
3.1 Accounting information
Argos can prepare books and other statements so that they can make objectives. Income statements
of 2000-2001 is described below:
Income statement
Revenue 2000-01
Total revenue 495974000
Gross profit 13467000
Costs of revenues 35132600
Operating expenses
Research development
Selling General and Administrative 112854000
Operating revenues or loss 23743000
Income from continuing operations
Total other revenues/Net expenses 200000
Interest expenses 2477000
Earning before interest and taxes 23854000
Income before tax 19580000
Minority interest 2758000
Net income
Dividend charges -
Net income applicable to common shares 14682000
Interpretation-
Through above statement it is concluded that there are more revenues in the firm. Hence they can be
invested in other activities. Through this they can earn more revenues. Hence they can increase the
market share. Although also put more emphasis on the research and development activities. Hence as a
result they can also increase their revenues (Day and Tinney, 1968).
TASK 4
4.1 Determination of role of team work
Company has many activities which work to meet the goals. Management of Argos needs to
emphasize on team work. It involves two or more people working to achieve same goals. As per change
in policies there is a need of guidance to meet the goals on time. Team consists of skilled workers to
achieve targets effectively. Management of Argos make teams to get the targets done. Management of
the Argos company also has to develop strategies to do the activities in better way.

All the employees have their own skills and knowledge and perform their best. Company has to
work according to external environment of business, hence working in team becomes really important
to complete the job in the most efficient manner (Kahaner, 1997)
. Members of the team are assigned responsibilities and power which they use for the profit of the
company. Employees are also given knowledge about subject which is necessary for the growth of the
organization. It also becomes important to analyze the market and take certain steps to enhance their
knowledge. Working in teams makes the members more competitive and their actions more effective.
Manager also has to keep check of working styles for competing with external parties.
4.2 Stages of team development:
There are different stages of team development. Stages used in Argos are-
Forming: In this all employees can familiarize with other and company so that they can understand each
other.
Storming: In this stage all members can understand their responsibility towards all activities and tasks.
Most aggressive members can emerge and safer members who are in comfort zone can be come out of
this zone.
Norming: In this all staff members can work together and they can perform well in the firm. They know
each other opinion.
Performing: In this team leader do not take any decisions. They only evaluate progress of all team
members .
4.3Three motivational theories:
Motivational theories used by Argos are-
Hertzberg motivational theory: In this there are 2 factors. First is X factor which help in satisfying needs
and Y can increase satisfaction through rewards and achievement.
Maslow ‘s theory: There are 5 levels. First is psychological which satisfy basic needs. Second is safety
which provide protection to staff members. Third is Love needs in which friendly environment is created.
Fourth is self esteem needs in which rewards can be given to employees. Fifth is self-actualization in
which they can realize their skills to perform tasks.
4.4 Types of leadership styles
Various leadership styles applied in Argos are-
Transactional leadership style: In this leader can set different goals for firm and hence they can motivate
employees easily. Thus it increases zeal of staff members and they give best results (Qualman, 2010).

Democratic styles: In this employees can also give their decisions. So hence they give suggestions
regarding any task and activity (Casadesus-Masanell, and Ricart, 2010).
TASK 5
5.1 Impact of customer service on success of business
Impact of user service on Argos are:
Increase efficiency: If there is good customer service then it increase users in store. Hence
employees work efficiently to convince them (Koçoğlu, Akgun, and Keskin, 2017).
Enhances profits: Through this firm can earn more income.
5.2 Benefits of customer profiling to business:
Various benefits of customer profiling on Argos are-
Understand them well: Through profiling users interviews it helps firm to know customers well
Strong relationship: Through interviews it helps firm to maintain strong relationship with other
firms (Wang,, Guo, and Liu, 2017)
.
CONCLUSION
Business environment is crucial for company. So firm has to evaluate this for success and for earning
huge profits. Types of firm and reasons of variation and improvement of accounting for Argos and
accounting data and determination of team work.

REFERENCES
Books and Journals
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Society Canon (pp. 155-167). Routledge.
Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Grayson, D., McLaren, M. and Spitzeck, H., 2017. Social intrapreneurism and all that jazz: How
business innovators are helping to build a more sustainable world. Routledge.
English, J., 2006. How to organise & operate a small business in Australia. Allen & Unwin.
Håkansson, H. and Ford, D., 2002. How should companies interact in business
networks?. Journal of business research 55(2). pp.133-139.
Chesbrough, H., 2006. Open business models: How to thrive in the new innovation landscape.
Harvard Business Press.
Day, R. H. and Tinney, E .H., 1968. How to co-operate in business without really trying: a
learning model of decentralized decision making. Journal of political
Economy, 76(4, Part 1), pp.583-600.
Kahaner, L., 1997. Competitive intelligence: how to gather analyze and use information to move
your business to the top. Simon and Schuster.
Qualman, E., 2010. Socialnomics: How social media transforms the way we live and do
business. John Wiley & Sons.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2-3). pp.195-215.
Koçoğlu, İ., Akgun, A. E. and Keskin, H., 2017. The Role of Business Model Development in
the Ex-Post Creation of Online Entrepreneurial Opportunity. In Key
Challenges and Opportunities in Web Entrepreneurship (pp. 1-32). IGI
Global.
Wang, D., Guo, H. and Liu, L., 2017. One goal, two paths: How managerial ties impact business
model innovation in a transition economy. Journal of Organizational Change
Management. 30(5). pp.779-796.