How Businesses Operate: Public, Private Sectors and Structures

This report delves into the operational aspects of businesses, focusing on the distinction between public and private sectors. It examines the structures within these sectors, using Marks and Spencer as a case study, and explores the implications of the local, national, and global economic environments on business activities. The report highlights the importance of customer service and the benefits of customer retention, emphasizing how businesses can understand market trends and internal/external factors such as laws, technologies, and social environments. It also covers various business structures like functional organizational structure, and provides insights into how businesses can effectively serve customers and enhance profitability. The report concludes by stressing the significance of considering all factors when operating a business and leveraging motivational and leadership theories to improve performance.

How Business Operate
(TASK 1 & 5)

Table of Contents
 Introduction
 Classification of business on the basis of public and private
sectors
 Structures within the business of Public and Private Companies
 Implications on business at local, national and global economic
environment
 Impact of customer Service
 Benefits of customer retention
 Conclusion
 References

Introduction
To operate any kind of business, it is important for company to effectively
understand the business environment and its internal and external factors
because both are directly affect the operational activities of the business.
Thus, it is vital for organization to learn about the market trends and
entire components such as laws, technologies, social environment and
many more. Along side this, there are various sections that are present in
both public and private business firms and have their own responsibilities
and these are: HR, Finance, Production, Research and development and
so on.

Type of business on the basis of private and public
Private companies are not comes under the government control or
ownership but some time these sector collaborate with legal authorities
in order to effectively offer the quality services and stuff to its
customers
Individual ownership: It is one of the famous and oldest type of business
in which only single person responsible for profits and losses as well.
Partnership organisation: In this, the risk factors of the company is high
and firm having limited financial resources.

Continue....
Apart from this, there are some companies which comes under public sector:
State ownership: It is also know by public ownership which owned by the
government. In which business develop as per modern industries which
may leads in increasing the profitability level.
Central government: In this all the companies are controlled by the
government bodies in which all the share and

Different structures of business
Every business organization follow various structure for operating their
activities. In this number of structure are there in organization but Marks
and Spencer defined their activities as per functional organisation structure
which can be under stood by following detailed:
Functional organisational structure:
This type of structure is more effective and common in which company
perform various functions in most effective manner. In this, Marks and
Spencer established various department like human resources, accounting,
purchasing and many more

Implications on business at local, national
and global economic environment
Number of factors are in market which largely affect the overall business activities.
So that it is important for company to effectively understand all the elements
that can impact in the business activities. In this economic environment is also
consider as an important element which help company in understanding as well
as fulfilling firm needs and demand. With the help of this, firm easily serve
quality services and product to its customers at right time
.

Impact of customer Service
Customers services is one of the important for business
organization to increase their profitability level. Thus, it is
important for Marks and Spencer to serve quality services to
its customers as per their needs and wants which may leads
in increasing the sales and profitability as well. For running a
successful business, it is important for Marks and Spencer to
set their products quality is high for creating customers base
and retention as well.

Benefits of customer Service
Customers are the important assets for every business organization
because they consume products and services which aid in enhancing
the profitability level of the company at market place. In context of
Marks and Spencer, they use various updated tools and techniques
for producing quality goods and services as per customers needs.
Along with this, customer profiling also helps in enhancing the
profitability level of the company in which manager of the company
understand customers taste and preferences towards the products.

Conclusion
From the above mentioned report, it can be concluded that it is
important for business organisation to consider all the factors at the
time of operate the business in effective manner. With the help of
this company attain set goals and objectives in appropriate time
frame. Along with this, various motivational theories and leadership
theory is also used by business organization to improve their
performance level at market place.

References
Weiss, J. W., 2014. Business ethics: A stakeholder and
issues management approach. Berrett-Koehler Publishers.
Bernstein, M. H., 2015. Regulating business by independent
commission. Princeton University Press.
Mackey, J. and Sisodia, R., 2014. Conscious capitalism,
with a new preface by the authors: Liberating the heroic
spirit of business. Harvard Business Review Press.