How to Operate or Run Businesses in the Uk

TASK 1

P1 Types of Organisation Found in the Public and Private Sectors in UK Country.

The public sector defines all the public services given by the government or owned by the organization in the UK. Healthcare to education, pensions to promotion, housing to social care, protection to global development, etc. Tesco is an example of a public-sector organization.

• Tesco is a public-sector organization in retailing. It is a British multinational grocery retailer (Arnaboldi, Lapsley, and Steccolini, 2015). They had ruined 3400 stores all over the world. Tesco helps community groups to bloom and make a product that is zero-alcohol, fat-free, and healthy.

A private sector organization is the portion of a state economic system that is ruined by individuals or companies. Most of the private organization's intention is to run their business to make a profit. This sector is very different from the public sector. Some private organizations or companies in the UK are described as general energy companies and European metal recycling.

• Greenergy organization: Greenery International Ltd. is a British supplier of petrol and diesel for motor vehicles. In this company there are only 137 employees; they established their headquarters in 198 High Holborn and London. They give their services in the United Kingdom, Ireland, Canada, and Brazil. Tesco, Owen's family, and Caradog are their main shareholders. They have the largest independent wholesalers in the UK.
• European Metal Recycling Limited: the work of this company is to recycle scarab metal in the United Kingdom and internationally (Axelrod and VanDeveer eds., 2014). They scrap metal from sources like businesses and trade, merchant scrap, organizations, and government bodies. They provide their services in managing waste totally; ship breaking, copper or aluminum, etc.

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AC1.2 Different Types of Organizational Structures and Their Reason for Variation

Variation Between Functional and Divisional Structure

P2: Explain the Structures Within the Businesses in the UK and the Reasons for the Variation.

Business structure is based on the most ordinary forms of business: sole ownership, corporation, and partnership. Here are the 4 types of business structures that are used in the UK, such as sole proprietorship, limited partnership, non-profit corporation, and non-profit corporation.

• Sole proprietorship: this is the most common variety of businesses structure. This business is very simple to operate and also very flexible in managing and controlling legal fewer and fewer taxes. It runs individually, or there is no preeminence between the business entity and owner. In this structure, it is compulsory to register a business name, which is uncomplicated without selecting a name.
  Advantages of sole traders:
  1. Control: They fully control all over their business and run it without the interference of others.
  2. Profit retention: sole traders keep all their profits in business.
  Disadvantages of sole traders: liability means if the organization is losing money, the owner of the business is responsible for it. Natural problems, random causes, or noise is the reason for the variation. It is very different from the other structures.
• Limited partnership: this structure defines the partnership between one or more persons or partners. General partnership share their profit and loss equally and also manage their business, but on the other side of this structure, limited partnership share their profit but their loss in the business is limited. They are not active in daily business operations.
• Non-profit corporation: this type of corporation is not interested in any profit. Many other corporations or organizations serve their services in public and private sector activities. Charitable trusts work for non-profits. This structure is very different from the others. Change in system, environment, or circumstances is the main reason for the variations in UK business.

P3: How Local, National, and Global Economic Environments Impact Retail Businesses.

Local economic environment impact on Asda business: ASDA is a British supermarket retailer. They produce groceries and general merchandise and also provide financial services. Cultural economic, political, and technological are the local economic environment that has an impact on the growth of Asda business. This environment impacts the costs of their products or business growth. Political factors are also having an impact on increasing their business or strategies.

National economic environment impact on Asda business: The national environment affects businesses on both sides, external and internal. The external side is their business condition and economic, political, illegal, or technological factors. National environment effect on financial policies of asda business. It is described in three levels, which are local level, national level, and international level. This will impact the influence of public finance, the state of currency monetary policy, etc.

Global environment impact on Asda business: different political and economic systems impact globally on Asda business. In this point, some political factors, such as democracies, follow the rule of law.

TASK 2

P4: Importance of Accounting for Business Success

Accounting is a very important part of business or achieving business success. Asda is a retail business organization. Accounting motivates the work or employees in an organization. It helps in business for managing or making proper decisions. It performs the financial level of their owner, investors, and managers. The main purpose of this factor is to help their stakeholders make better decisions for their business by providing their information in financial areas. Asda depends on accounting information to make the right decision. Accounting is important in organization, motivation, coordination, control, media communication, budgeting, and in professional advice.

P5: Define the Different HR Department Functions in a Business

There are 4 main functions of a human resource department: new recruitment, job safety, employee relations, and training & development.

• New Recruitment: this is the most important part of a successful business organization. Recruitment means to hire those people who are highly qualified or suitable for the job. The resource department helps people in the organization to make growth in their business. Through advertising or making interviews, the resource department recruits people.
• Job safety: safety in the workplace is the most important concern of employees. The resource department takes care of the safety and security of their workers in the organization. They also manage the compensation issues of workers.
• Employee relations: the relation and understanding between employees and leaders is very important in the growth of business. The resource department of Asda is concerned about the relationship between the workers and their team leaders. Through motivation and support, the leader creates a strong understanding level between both of them in the organization.
• Training and development: The human resource department organizes training and development for the growth of their employee skills. Employee growth helps in increasing the growth of businesses and their productivity in the organization.

P6: Outline Key Features of Employment Legislation

Employment legislation means their protection. Employment rights, discrimination, land equalities, safety, and health—all these things are called employment legislation. Employee safety and health are the main focus points in the organization. Employees leave organizations because they do not get paid well for their work. Equalities of work or reward, support motivation, and many other things can decrease employee turnover in the organization. Hours worked, redundancy and dismissal, training and union rights, etc.—they. These are all the main features of employment legislation.

Employment Legislation :

TASK 3

P7 Interpret the information on the Profit and Loss Account.

By looking at the financial report of ASDA, it can be interpreted that the entity has a big supermarket chain. In 2017, the entity had a 10% slump in its profit. The pre-tax profit of the business has fallen and has reached 791.7 million. Though sales have increased by 2.6%, the entity still requires to work on its strategy because competitors are generating more sales as compared to ASDA. In the year 2017, its post-tax profit reached $780 million, which shows that the entity has started increasing its market shares. Tesco is the biggest competitor of the firm, and ASDA has a high profit as compared to TESCO. The profit and loss account of ASDA for 2016 shows that the enterprise has increased its operating profit by 3.3%. Group revenue of the company has decreased by 3.7%.

TASK 4

P8 Role of a Leader and Other Team Members

The Asda stores operating their business in supermarkets as retailers need a team leader, which facilitates organization by building a good team and helps to achieve its objectives. The team leader plays a vital role in bringing good outcomes for business operations. The role of a manager or team leader is to provide guidance to employees and motivate them. The roles of the manager and team members to bring good outcomes for the organization are as follows:

Role Of A Manager

The basic role of the manager is to manage and develop the business of an organization. The business development manager aims to guide the employees and motivate them to work with innovation and creation to achieve the organizational goals and objectives. Some roles and responsibilities of a business development manager in developing a great team that leads to success are explained below:

• Develop a Strategy: the manager of the Asda stores focuses on achieving the business objectives and uses various plans and strategies to achieve them. To achieve the organizational objectives, the manager needs effective teamwork and strategy that guides employees toward the success of the organization. The strategy provides the mission, vision of the organization, and steps to achieve them.
• Manage The Flow Of Day-To-Day Operations: the manager of Asda stores is responsible for handling the day-to-day activities of the store. The manager assures that everyone is given a task to complete and also ensures that everyone is given the right task to do.

Encourage And Motivate Employees: the manager of Asda stores aims to motivate the team members to utilize their skills and knowledge and give their best to the company. The manager motivates and encourages the team members by making the work interesting by involving some activities, giving them the feeling of motivation from which they feel valued and satisfied.

Monitors The Work Of Team Members: it is the responsibility of Asda's manager to monitor the employees' performance to guide them, allocate or divide the work among members, and give them training if needed. The proper monitoring of team members guides the leader in making the organization's employees' performance better.

Resolves Conflicts Among Team Members: Asda's manager is responsible for resolving the conflicts of team members. The disputes that happen between team members may be related through process, allocation, or division of work among members, or any other. It is the responsibility of the leader to resolve the conflict and maintain the smooth flow of the business process.

Role Of Other Team Members

Effective business operations are the result of the coordination of team members. The team members must support and help each other with work or tasks being provided to them to bring good outcomes. Following are some roles and responsibilities of team members, as follows:

• Co-Ordinate with other team members: coordination among employees or team members is necessary to be maintained to make a smooth flow of work. A coordinated team is capable of bringing positive outcomes; therefore, the team members should coordinate with other team members.
• To bring innovation: the team members are responsible for bringing and creating, which benefits the Asda stores in achieving success. Every team member is expected to bring innovation to work, and it also improves the quality of work.
• Share skills and knowledge among other team members: every employee is specialized in some form of work and is expected to share his knowledge and skills with other team members so that it leads to the generation of skilled teams, which can benefit the organization.

Results Of Effective Participation By Manager And Team Members:

The result of effective participation from the side of team members and managers leads to positive outcomes for the Asda stores.

• An effective team leads to good outcomes for the organization.
• Effective participation of the team leader and manager leads the organization to bring creativity and innovation to the work.
• Effective participation by every employee of the organization leads to strengths and opportunities for the organization.
• It builds trust among the team members, leaders, and managers and also in the minds of customers.
• Effective participation promotes the business, and it encourages the organization to face risk, any weakness, and even threats.

Stages of Team Development

The organization always focuses on developing its business. And to bring development requires a developed team. This is the role of a team leader or manager to develop the team and meet the objectives of the organization. The Asda store also aims to develop its business and uses the following steps for team development.

Forming: this is the first step of team development, where team members are introduced to their work, share their experience, and also discuss their working environment and goals and objectives to be achieved. The first step is to make team members of Asda stores clear about the objectives and introduce them to the work that needs to be done to achieve those objectives.

Storming: the storming stage aims to build trust among team leaders for each other. This step aims to make the team members of Asda stores comfortable with other members and develop coordination among them.

Norming: in the norming stage, the team members of Asda stores start working comfortably with the other team members. The members are encouraged to work together in a team, share information and knowledge, avoid conflicts, make decisions, and get the work done.

Performing: in this last performing stage, the team members are developed and do their work independently. The team members of Asda stores can make their own decisions, solve problems, and solve conflicts if they happen. The team members can perform well, are developed at this stage, and can function properly and achieve the targeted goals of the company.

The Belbin model or theory was introduced by Meredith Belbin in 1981. This theory explains that every individual tends to behave in a specific manner while working with others in a group or organization. There are nine roles of the Belbin team, which are mentioned below:

• Resource Investigator.
• Team worker
• Co-ordinator
• Plant
• Monitor Evaluator
• Specialist
• Shaper
• Implementer
• Monitor

Three Motivational Theories

The manager motivates and encourages team members to make them move towards achieving the goals and objectives. The manager of Asda stores uses different motivational theories to motivate the employees and team members.

• Maslow's hierarchy needs: Maslow's hierarchy theory states that every employee or team member wants a company to provide five basic needs.

1. Physiological needs: these are the most important needs, and they include food, water, sleep, and shelter. The manager of Asda should provide the basic needs to its team members so that they feel motivated towards the work.

2. Safety and security: the manager should provide safety and security to its team members to motivate them. Safety and security include a safe working environment, a secured source of income, and providing insurance policies.

3. Belongingness and love: this need includes belongingness and love that employees expect. The manager should ensure that people are accepted in their social groups.

4. Esteem: the team members expect to be valued and respected for their work. The manager of Asda stores aims to ensure that the esteem needs of employees are being fulfilled.

5. Self-actualization: this need refers to that every team member expects to develop and grow with his potential (Larrimore, 2014.). The manager makes sure to fulfill the needs of self-actualization to motivate them.

• Alderfer-Erg Theory: Alderfer describes three needs of employees that must be fulfilled to try to motivate them and achieve the targeted goals and objectives. The needs are as follows:

1. Existence needs: the manager should provide the basic material needs to the team members to make them motivated.

2. Relationship needs: the team members need significant relationships in their personal lives and expect to have love and belongingness from them.

3. Growth needs: this need refers to the self-development, growth, and advancement of employees, which they expect to be fulfilled.

• Herzberg-Two Factor Theory: This theory is known as motivation-hygiene theory and describes that motivation is equal to satisfaction. To motivate the team members, the employees must be satisfied first. The theory is explained below:

1. Hygiene factor: the manager should provide the employees with a proper hygienic environment; it includes proper working conditions and environment, safety, and security of employees. This factor satisfies and motivates the employees.

2. Motivating factors: the motivating factors include responsibilities given to members, personal growth and development, and work opportunities, and it motivates the employees as it also supplies satisfaction.

Three Leadership Styles

The manager manages the team members and motivates them to work and bring innovation to achieve the organizational objectives. The manager or leader has some form of style to manage the team, which is as follows:

1. Autocratic leadership style: autocratic leaders control all the decisions made regarding the organization and restrict the participation of team members.
2. Laissez-faire leadership style: in this leadership style, the leader allows team members to make the decisions and has the least responsibilities in his hands. This leadership style is adopted so that employees excel in their work on their own with the least guidance and help provided.
3. Democratic leadership style: democratic leaders allow the employees to participate in decision-making, motivate them to bring innovation and creation to the work, and make the employees satisfied.

TASK 5

P12: The Impact of Customer Service on Business Success

A business succeeds by providing good customer service to its customers. It impacts on the growth of their business. The bad customer service decreases the growth of the businesses in the organization. People want to work for companies or organizations that provide good customer service. Loyal customers purchase products more than once because they are satisfied with their services. Some companies make a profit because they give priority to their customers. Resolving customer problems quickly creates a positive thought in the mind of the customer, and they get attracted to or interested in the business. This will also impact the growth or success of the organization.

P13: The Benefits of Customer Profiling to a Business

Customer profiling is the way to make a structure of customers and how to help them by making decisions concerning customer services. This profiling is broken with a photo, name, or description of a customer. Customer profiling is important to give the correct services according to their financial level. The benefits of this profiling are that when the customer service provider divides customers according to their financial base and understands what they want, this key helps to achieve the goal in business or the success of the organization.

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CONCLUSIONS

Every business aims to run its activities and operations with a smooth flow, which may result in achieving the goals and objectives. The smooth flow of work can be achieved by the proper participation and functioning of the team and team members. The above study explains different employment legislation that must be followed to run the organization effectively. This study also describes various leadership styles and motivational theories that are adopted in organizations to actively operate theratthe rationsake an effective team.

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