Business Operations Analysis: Tesco and Economic Impact Report

This report analyzes the operational aspects of businesses, using Tesco as a case study. It begins by differentiating between public and private sector organizations, exploring various business structures like partnerships and joint stock companies, and assessing the impact of local, national, and global economic environments. The report then delves into the importance of accounting, the functions of a human resources department, and employment legislation. It further interprets profit and loss accounts, discusses roles within a team, the stages of team development, and motivational theories like Maslow's and Herzberg's. The report also examines different leadership styles, the impact of customer service, and concludes with an overview of key findings, offering a comprehensive understanding of business operations and management principles. This report covers key aspects of business operations, financial analysis, human resources, and team management, making it a valuable resource for students studying business development.

How business Operate

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Discussing the various types of organisation which are under the public and private sector.....1
Various types of structures within the business..........................................................................1
Impact of the local, global and national economic environment on the business ......................2
TASK 2 ...........................................................................................................................................2
Importance of accounting in the business ..................................................................................2
Functions of human resource department ..................................................................................3
Features of employment legislation ...........................................................................................3
TASK 3............................................................................................................................................3
Interpret profit and loss account..................................................................................................3
TASK 4 ...........................................................................................................................................3
4.1 Role within a team................................................................................................................3
4.2 the stages of team development ...........................................................................................4
4.3 motivational theories ............................................................................................................5
4.4 different types of leadership style ........................................................................................5
TASK 5 ...........................................................................................................................................6
5.1 impact of customer service...................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
This refers to starting the business and its working. For starting any business person or
the owner will add additional features of it. British multinational chain Tesco is taken for
discussion which has headquarter in London, England. innovation is needed in the business. It
will help in selling the product or services. This study will explain about the different
organisation coming under the public and private sector. It will more explain about the various
structures of the organisation. This study will explain about the impact of local, global and
national economic environment on business. Furthermore, it will tell about the importance if
accounting in business. This will more study about the developing team and employment
legislation. This will more study about the different functions performed by Human resource
department.
TASK 1
Discussing the various types of organisation which are under the public and private sector.
There are different types of organisation which are under public and private sector in UK
country. These are
Private
 Partnership - in this type of business people who are involved are two or more than two
persons. Before entering in business people must register himself in the Partnership
business. In this involves the address of the people, name of the partners, name of the
business, capital distribution and profit sharing. Ratio in which profit is distributed is
according to the money and knowledge invest in the starting.
 Joint stock company - risk is more involved in this. Capital is raised by selling of shares
of diverse range. Shares are purchased by those persons are called shareholders. The
body who is managing this type of company is called Board of Directors and has the
power of taking decision.
Public
 Government companies- in this type of the organisations, government involvement is
more than compared to other. In this 50% of shares or more than that is owned by the
local government. Other than that remaining shares is owned by the individuals who has
shares of company.
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 Public corporations-These type of organisation is fully controlled by the government.
firm are made because of special act of parliament.
Various types of structures within the business
There are various types of business structures prevailing in the organisation. These are :
 General partnership – In general partnerships, two or more than two individual comes
together to start a business so that they can satisfy the unmet needs of customers. Every
partner has decided all the ratios of the capital as well as profits prevailing in the
organisation. Partners are liable for profits as well as losses. In this person has to register
himself in the Partnership agreement.
 Non profit organisation- this type of organisation are running for making the change in
the society. Main aim of this is to enhance the living conditions of people. People are
working not for the profits but for uplifting the society. For raising the funds for the
business, are doing the campaigns and many more.
Impact of the local, global and national economic environment on the business
Business has more impact of local, national and global level. Business which are
prevailing in the local level - it has effect the business because at the time of recession people are
more concious about the money and it will affect to the earning of the business. Most of the
people lose job at this point of time.
At national level - at national level also business is adversely affected. At national level
competition level also increases due to increase in competition and marketing efforts.. Due to
this only there are chances of occurring loss in the business. Financial position of the business
will affect very much. After facing loss company can remove employees to reduce cost. This
will increase unemployment.
At global level - in the country like UK business which are small will adversely affect the
competition. It achieves with the help of globalisation as company enters into foreign countries
to increase their customer and market share. But people are more affected by the increase in
competition of company as well as products. Their is a benefit to customers as they are getting
more more products and services with cheap products.
TASK 2
Importance of accounting in the business
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From the business point of view accounting is very necessary. It will help in knowing
correct position of the firm. These are of diverse rang. Like it will help in knowing the accurate
position of the firm. This accounting helps entity to take long term as well as short term
decisions. For understanding the correct position of the business these documents are necessary :
profit &loss, Balance sheet and Cash flow statement(Maeda and et.al. 2018.). These three
statements shows the turnover of the business. By accounting only firm can know the
performance of the company. This also helps in managing cash and looking after the expenses of
the business. Accounts is important as it includes P&L accounts or balance sheet through which
they provide their financial status to their stakeholders.
Functions of human resource department
Main function of human resource department is to appoint employees. There are more
work like training and development provide to new employees. This will help the employees to
know the working of the company. While providing training to employees all the working
criteria must be told to each and every employee. Every employee must understood the working
criteria of the business. For hiring purpose also candidates are chosen according to their working
profile. This section is responsible for giving facilities to employees. Candidates should be
recruited according to the skills and competencies requires in the business. This is the basic right
of employee. Section has a duty to give peaceful environment to employees. Their essential role
is to maintain peace and harmony of the company so that every employees would be able to give
their best potential.
Features of employment legislation
Employment legislation is made by the government to prevent the rights of the
employees. This will help in the employees to work without any fear. Rules are made for
employees to work eight hours a day. This will maintain in the health of workers and help them
to concentrate on their work. Excess of work can become tired to employees(Perren and
Kozinets, 2018.). Lunch facilities is also given to employees. This the right of employees.
Sometime is given to employees for other than working. Safety equipments are also provided to
employees. This will help in reducing the accidents of workers. HR department role is to keep
the company aware and updates about the legal rules and regulation which is set by the
government where company is operating their business.
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TASK 3
Interpret profit and loss account
Profit and loss account tell about the turnover of the business. This will help in knowing
the sources of the revenues of the firm. This will help the business to understand where is excess
expenses are there. It includes the revenue, cost of goods sold, gross profit, operating income,
operating expenses, other income, income tax, net income and earning per share. this will more
determine the true position of the business. P&L reports shows financial status of the company
and predicts future of company as how they will perform in the future. It also states
requirements of funds in the future so that company can run their business operations smoothly.
TASK 4
4.1 Role within a team
There are many members within a team and each individuals have various role which
together needed to be synchronised for achieving the certain target which are provided by the
higher authority. Being a manager of team, my role was to manage every aspects which comes
in the proper functioning of a teams. I lead the team through various principles and apart from
them, it was needed to be focussed on the aspect of optimal utilisation of resources so that the
efficiency and effectiveness of every task must be maintained. Other responsibilities in a role
includes solving several conflicts and providing negotiation between other individuals (Khalaila,
2015). Also, in have to make plans regarding the increase of efficiency in productions and
working towards the accomplishment of goals and objectives of the firm. Other embers of the
team was assigned other responsibility such as leading the team and their subordinates. Team
leaders were responsible for influencing and motivating the subordinates to make them follow
the strategy which is decided by me.
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4.2 the stages of team development
The steps which are involved in the development of team are :
Forming- It includes the orientation of structure of the team and it leads to provide the
answer for what roles can be provided by the team to an individual and what will be his
contribution.
Storming- It is considered as the critical stage and may include various conflicts and also
competition as there is an emergence of individual's personality (Priest and Gass, 2017). The
performance of t team may reduce because energy is transferred to other unproductive activities.
Norming- When conflicts are resolved, a degree of unity emerges. In this stage, leaders
and the role of individuals are determined. Here, harmony is considered as precarious , therefore
if any conflicts occur again it leads to get back at storming stage.
Performing- In this the cooperation and consensus is very effective and all the members
of a team coordinate in an effective manner and all the problems are solved together effectively.
Adjourning- This is the last stage where the goals and objectives of the team are about to
accomplished and certain steps for wrapping up of all the task are implemented.
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Illustration 1: Stages of Team Development

4.3 motivational theories
Following are the theories for motivation :
Maslow's Need Theory :
This theory includes that there are various stages involved to determine the needs of an
individual and motivate him according. The first need is dependent on the physiological one
which includes the basic requirements such as food, shelter and clothing. After this the second
stage includes security needs which involves the security of job. Apart from this the third stage
includes social needs which is comprises of love, companionship, friendship and being able to
interact with others successfully (Jabłońska and et.al.,2016). On the other side the next is esteem
need which includes a sense of self respect , knowledge, achievement and competence. The last
stage includes the self actualisation need which involves the transformation of self into reality.
Herzberg’s Motivation Hygiene Theory :
These theories focus on various factors which leads to satisfy other candidates which can
lead to make their job more satisfactory and like by them. Every employee is affected by every
decision which is taken by the orientation therefore it is very necessary to acknowledge there
aspect as well.
Theory X and theory Y :
It includes two type of individuals first one is X in which individuals are indolence, they
do not like to take responsibility. Their motivational source is reward or punishment as they
work only for money (Vahlne and Johanson, 2017). On the other side, Theory Y says that
individuals are very active they are ready to take various responsibility and works for excellency
while providing innovative ideas for improvements.
4.4 different types of leadership style
Different types of leadership styles are
System leadership- where the leader tries to improve the systematic structure of an
organisation by introducing various policies and influencing the individual to follow them they
focus in the improvisation of the company and individuals (Storey, 2014).
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Behavioural Leadership- In this the leader adopts the strategies according to the
behaviour of his subordinates as it leads to provide him to formulate plans and control them ins a
way they want. This style completely focuses on the follows only.
Situational leadership- In this the individual tries to follow the the leadership style
according to the situation. He does not have any fixed type of style and changes whenever he
feels that the scenario must be requiring.
TASK 5
5.1 impact of customer service
1. Building loyal customers – It leads to attract lots of customers in am market and lead
them to become loyal for availing their services as it leads to provide them a chance to
suggest other people for availing their services from different aspect.
2. Non sales in the form of customers- Other benefit can include if there is no sales in a
particular season that would not mean that sales are reducing , it might lead to increase
the sales further after certain period of time which is always worth for a wait.
3. Prevention of Negative Reviews- When there is a good rapport of the services and it
leads to satisfy the customers in every aspects then the reviews which are negative get
reduces which leads to build up a goodwill in market leading to increase the sale
5.2 Benefits of customer profiling
 To improve the customer experience by providing them with best quality and quantity.
 It helps company to know customers need and preference so that they can make their
products according to that.
 Helps them to gain competitive advantage over others.
CONCLUSION
From this report has concluded that benefits of customer profiling. It has also discussed
more about the impact of customer service on the business. This has discussed more about the
various leadership styles. It has also explained about the steps in development of team.
Functions of human resource department. Motivational theories has also discussed. Role of
leadership has also discussed in this.
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REFERENCES
Books and journals
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Maeda, Y. and et.al. 2018. Marine microalgae for production of biofuels and chemicals. Current
opinion in biotechnology, 50, pp.111-120.
Long, T.B., Looijen, A. and Blok, V., 2018. Critical success factors for the transition to business
models for sustainability in the food and beverage industry in the Netherlands. Journal of
Cleaner Production, 175. pp.82-95.
Klotins, E., Unterkalmsteiner, M. and Gorschek, T., 2018. Software engineering in start-up
companies: An analysis of 88 experience reports. Empirical Software Engineering, pp.1-35.
Cuervo-Cazurra, and et.al.2018. Home country uncertainty and the internationalization-
performance relationship: Building an uncertainty management capability. Journal of World
Business. 53(2). pp.209-221.
Begg, K., Van der Woerd, F. and Levy, D. eds., 2018. The business of climate change:
Corporate responses to Kyoto. Routledge.
Adrodegari, F., Bacchetti, A., Saccani, N., Arnaiz, A. and Meiren, T., 2018. The transition
towards service-oriented business models: A European survey on capital goods
manufacturers. International Journal of Engineering Business Management, 10, p.1847979018754469.
Online
How business operate. 2018 .[online] Available
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