How Business Operate

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Table of Contents ................................................................................................................................................................ 0

Introduction ............................................................................................................................................. 2

Task:1 The business environment ............................................................................................................ 3

1.1 Description of the types of organizations found in the public and private sectors in a named

country ................................................................................................................................................ 3

1.2 Explanation of the different structures within the businesses in your selected country and suggest

reasons for the variation ...................................................................................................................... 4

1.3 local, national and global economic environment impacts of Tesco Group in UK: ........................... 5

Task 2. Business Function ....................................................................................................................... 6

2.1 Explanation of the importance of accounting for business success ................................................. 6

Task 3 – Accounting workshop ................................................................................................................ 7

3.1 Interpretation of the information on the profit and loss account..................................................... 7

Task 4 Teams .......................................................................................................................................... 8

4.1 To Carry out an analysis to determine my own and others’ roles within a team. Here are the

results of our work .............................................................................................................................. 8

4.2. Describing the stages of team development .................................................................................. 9

4.3 Assessing three motivation theories .............................................................................................. 9

Task 5 ................................................................................................................................................... 12

5.1 Describing the different functions carried out by the HR department in a business ...................... 12

5.2 Outlining key features of employment legislation ........................................................................ 13

Task 6 Customer service ........................................................................................................................ 13

6.1 Explaining the impact of customer service on business success .................................................... 13

6.2 Explanation of the benefits of customer profiling to a business. ............................................. 14

Conclusion ............................................................................................................................................ 15

References............................................................................................................................................. 16

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Introduction

Business organization consists of several branches & each sector has its own authorities

&regarding responsibilities. In UK there are multifarious types of businesses along with different

structural operations. These businesses can be differentiated through their respective visions &

goals. Accounting is important for an organization because it shows the organisations success

and failure in numbers. Owners and the managers can get a clear idea about the organisations.

Customer relationship can be very helpful as well.

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Task:1 The business environment

1.1 Description of the types of organizations found in the public and

private sectors in a named country

There are different forms of organisation in public and privet sectors these are as follows

Common types organizations in context of UK are described below.

There are fewer formalities required to be performed to form such organization. Electrical,

plumber and busking are good examples of sole proprietorship in UK (Torvalds, 2014).

Partnership

At least two & highest twenty partners can start a collective firm business under a deed & a

relation where they carried on business agreed to share profit & losses. Of course this is

witnessed by a solicitor to follow the mandatory requirements. Blue octopus, JD cycles, Virgin

are some Partnership business in UK.

Company

A company is defined by an eternal successive artificial legal person with a common seal,

accumulated common capital & comprised transferable shares by shareholders (owners of a

company (Sampson, 2010)). Jaguar, Aveda is the examples of companies

Franchising

Franchisee is the party in the franchising agreement that which allowed the rights to use regarded

business trademarks along with another proprietary knowledge for opening a branch. For

example, KFC and MacDonald could be mentioned.

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1.2 Explanation of the different structures within the businesses in

your selected country and suggest reasons for the variation

Deferent forms of organization in UK have different structures. Three of the organizational

structures are described below

Tall structure

Organizations like “British Gas” follow tall or hierarchical structures. It will have a wide

hierarchy of leadership with a limited range of control. This hierarchical structure will have a

wide range of levels of workers all reporting upwards to group pioneers and afterward up to

operational administration.

Flat structures

A hierarchy can be organized by item or client bunches and additionally by capacity (advertising,

HR, deals). Along these lines a huge organization can work as a smaller business. Organizations

like “Unilever” follow Flat structures. In this structure each division gets its own identity which

leads decision more precise & rapid

Matrix structure

Involving groups of cross-useful individuals regularly made for particular undertakings, for

example, the improvement and dispatch of new items and frameworks checked by with respect

to chief in Matrix structure. Organization like “Unison” follows Matrix structure.

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1.3 local, national and global economic environment impacts of

Tesco Group in UK:

Impact of local economic environment

Local economic conditions have its positive or negative impact in Arcadia Group. Increase or

decrees in the income, and inflation determines the demand for the clothing products. During the

time spent putting up our merchandise for sale to the public Tesco Group be aware of the potential

effects our business can have.

National economic environment

During national monetary blast periods of Tesco Group, consumers have more extra cash.

Henceforth, they may purchase all the more dress, expanding deals for garments makers,

wholesalers and retailers. Recessions have the inverse impact. Sales of these different dress

substances might be essentially lower. Consumers may shop for cheaper brands when they have

less income.

Global economic environment

At present, more than 60 percent of world Tesco Group. clothing is being export in different

countries (Global news room-2014). On the UK continent, Tesco Group has made London a

privileged supplier of clothing to Canada and the United States - the leading purchaser of

clothing, importing 24 percent of the world's supply

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Task 2. Business Function

2.1 Explanation of the importance of accounting for business success

Accounting plays a vital role in the success of a business. No business can run properly without

the help of a proper accounting department.

Tracking transaction

Through ledger, journal & other subsidiary books like cash book, voucher, memo, credit-debit

notes any occurred transaction can be tracked at any convenient time Tesco accountants.

Maintain accounts properly

Accounting helps us to maintain regarding accounts efficaciously. Final account, cost

accounting, financial accounting helps us to maintain previous transaction of the business.

Determine the business position

Through Final account (Manufacturing account, Trading account, Profit loss account)Tesco can

determine our business position as well as we can get net profit loss, debt, current asset,

permanent asset & so on.

Inventory management

To properly manage the inventory Tesco uses LIFO or FIFO accounting system so that inventory

pricing and production could be maintained properly.

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Task 3 – Accounting workshop

3.1 Interpretation of the information on the profit and loss account Profit and loss account is the document that shows the profit or loss at a certain period which is

the difference between day to day expenses and incomes.

At first cost of goods sold is identified by adding the expenses of producing the goods

with the cost of raw materials. There are two types of costs one is direct cost the other is

overhead cost. Direct cost is related to production directly like raw material cost.

Overhead cost is the cost that is the running cost like office rent. (Epstein, 2011)

Gross profit is the different between the turnover/income from sales and direct costs.

Gross profit less the sales and administrative costs shows the net operating incomes.

After subtracting the tax and interest payments the remaining balance is known as the net

income or loss.

All the information of the profit and loss statement is very much important because it shows the

net profit or loss in a given period.

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Task 4 Teams

4.1 To Carry out an analysis to determine my own and others’

roles within a team. Here are the results of our work

Teamwork is pretty much important for any organization. Teams can play vital role in the

success of a project or the goal it is serving.

Leader

Leader gives direction, guideline, bearing and authority to a gathering of different worthy people

(the group) with the end goal of accomplishing a key result or gathering of adjusted results of

any given group task.

Shapers

Adaptable and pugnacious people of a group question the working performance of team. They

provide necessary risks or potentials of plan which have been overlooked by the other members

of a team.

Implementers

They materialised the given task. Implementers also maintain necessary communication with

other fellow mates including antagonist teams, this branch is an external catalyst used to perceive

changing environment.

Finisher

Team members giving the finishing touch to the implemented work are described here (Cherry,

2010). They give the finishing touch of the work to make it more efficacious.

In the end it can be said that if everyone plays their given role properly the teamwork will be

promoted and it will bring success.

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4.2. Describing the stages of team development

Shaping a group requires some investment, and individuals frequently experience unmistakable

stages as they change from being an accumulation of outsiders to a unified gathering with shared

objectives. the stages of team development are as following:

figure: stages of team development

4.3 Assessing three motivation theories

Motivational theories assessment

Hierarchy of needs

There are five types of needs a person feel during different stages of life. These are presented

hierarchically by Abraham Maslow.

Forming

Storming

Norming

Performing

Adjourning

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Source: Maslow, 1943

Basic needs are the needs for food, shelter, education, clothing

Security is the second stage. Here morality, family, health, property is included

Needs for affiliation and social belongings rises when people want to get involved in the

social life.

When someone wants to be recognised for the works and feel the self-esteem he is at the

fourth stage.

During self-actualization stage one doesn’t care about other incentive they rather prefer to

work for others and show the world their creativity.

Theory X, Y

Theory X is accepted representatives are actually unmotivated and hate working, and this

empowers a dictator style of administration. On the other hand, Theory YAssume liability

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and are roused to satisfy the objectives they are given by the authorities. they Look for and

acknowledge obligation and needn't bother with much heading.

Source: Douglas Macgregor, 1960

Herzberg theory

Source: Herzberg, 1959

The conclusion Herzberg drew is that employment fulfilment and occupation disappointment are

not contrary energies. The inverse of Satisfaction is No Satisfactions well as the inverse of

Dissatisfaction is No Dissatisfaction.

Different leadership style

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Autocratic leadership

In autocratic leadership leaders keep the entire authority on their hands by centralising power.

Here subordinates don’t have any authorities so they can’t part in decision making process.

Democratic leadership

Leaders allow the subordinates to share ideas with the superiors. Team leaders at Tesco allow

employees to directly communicate to the leaders for any issue.

Laissez faire

Employees get the power to handle tasks at their own decision. Leaders allow them to make

decisions by decentralizing the power.

Task 5

5.1 Describing the different functions carried out by the HR

department in a business

Customer service is a crucial part for the success of business. While doing business in different

forms like B2B, B2C, and B2E customers service becomes vital as everyone is a customer.

Impact of good customer service

For providing better customer service Tesco alludes to practices, techniques and advancements

that organizations use to oversee and break down client associations and information all through

the client lifecycle, with the objective of enhancing business associations with supermarket

clients, helping with client engagement and driving deals development.

Impact of bad customer service

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If there is any bad customer service, then remaining customer will leave as well as it will create a

bad impression upon the potential customers. Starwood hotel chain in UK for instance has well

trained customer service unit in order to handle any complain.

5.2 Outlining key features of employment legislation

Legislation is legal issues for employing the people in the organization. There are various legal issues and

features are considered in the employment in UK. These are point out below:

:

figure: Stages of Team Development

Task 6 Customer service

6.1 Explaining the impact of customer service on business success

Employment act-2002

Employment act-2002

Health and safety at work act-1974

Health and safety at work act-1974

Discriminating act-1975

Working timing regulation-1998

Pension act-2008

The equity act-2010

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The client benefits generally effect on the accomplishment of the association by some ways.

These are appeared as following:

Reduction of cost & market share:

if clients get annoyed then business will gradually go downward & eventually market share will

decrease.

Increasing profit:

Good business customer relationship will increase profit to a great extent.

Uphold reputation:

On the off chance that the better administrations give to the clients they will be steadfast urge to

others to buy item. So notoriety will be expanded. Else it will be hampered.

6.2 Explanation of the benefits of customer profiling to a business.

Customer profiling helps a business to track the customers properly and provide quality service.

Customer profiling is a useful tool for the business organizations.

Tracking customers

Customer profiling helps an organisation to identify the right customer for the right products.

During different stages of the customer life cycle an organisation can serve the customers as per

their need based on the history. Sainsbury is well known for its well-maintained customer

profile.

Facilitates communication

Customer profiling give opportunity to easily communicate with the customers and the

employees about the customer service so that the quality of the customer service can be ensured.

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Increases profit

Better customer service is facilitated by the help of customer profiling. Better customer services

mean higher customer satisfactions which bring the organization profit eventually (Bender,

2014). Tesco has left remarkable foot print in this regard.

Comparative advantage

Organizations which maintain proper customer profiling are more close to the customers as they

know the exact need and demand of the customers (Ashdown, 2012). That is why they have

comparative advantage over other competitors.

Conclusion

There is different structure for different business & each structure has its own levels & chain of

command according to the perspective goals of the business. Every business has its impact on the

macro & micro level economy of a country. There is numerous significance of accounting in

business success. HR dept. perform the most important task of strategic unit by recruiting

manpower training, motivating &retaining them. Every organization mandatorily follows some

employment legislature particularly on rights, health, safety, and environment. Eventually by

maintaining better employee and customer relationship an organisation can lead them towards

success.

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References

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