Business sectors have developed rapid growth over the years. In a nutshell, the global market has a very conducive business environment which helps in flourishing the businesses across the globe. The success and progress of the business development of a business organization depends upon the number of factors. In this assessment, there is a broader discussion on business operation in the current business environment. The essay has 5 tasks where the different factors and activities will be taken into consideration and accordingly illustrated with a specific example.
Types of organizations in public and private sectors:
Private sector: In this sector of the business, all the business organizations are prominently owned by the private owner. These types of the business organizations are engaged in economic activity and operate their business under the rules and regulations of the government. Under the guidance and rules and regulations of the government, the business organizations operate their business (Korcsmáros, 2018). The business organizations in the private sectors are mostly profit making. The aim of such an organization is to make profit. This type of the organizations is either manufacturer or service provider. There are many types of business organizations in the private sector in the UK. Undoubtedly, these business organizations are profit making and therefore adopt the wide range of business strategy so as to do the business effectively in the market. In the private sector, this includes partnership, proprietorship and corporation. There are few examples which can be cited in this regard are local business, sole proprietorship, and retail stores in the country. All of these privately owned business organizations which have been operating the business in the domestic market in the country are contributing for the growth of the national economy.
Public sector: The country has its public sectors (Prajogo, 2016). In the public sectors, all the organizations which operate its operation and business work are completely owned by the government. These kinds of organizations are completely owned by the government. The business organizations which are operating in this sector as mentioned are owned by the government. This has been seen over the years that these two types of the organization operating their businesses in the country have been able to make sustainable development. The organizations which come in this category are all the educational institutions, public healthcare organizations, and public services organizations such as police, defense, fire and disaster management.
Business structure: There are different types of business structure with these businesses and this completely varies. There are some of the prominent business structures in the UK.
Partnership: In this kind of business structure, the business organization is operated and owned by the two individuals. In this kind of organization, the business operation is operated by the two owners of the country. This kind of the business organization has been operating their business in the country in most places. This kind of business structure in a business organization provides an effective leadership for the business growth.
Corporation: corporation is also one of the most effective business bodies which have been operating its business in the country. This has to be ensured that in this kind of business organization, there is the number of stakeholders in the organizations. This kind of business organization and the business structure always aims at providing effective services.
Sole proprietorship: This kind of business structure has only a single ownership or in a nutshell, in this kind of business structure, there is only a single owner who is responsible for the overall business operation in the country. There are many types of the business organizations who have such kind of sole proprietorship. The aim of such a business organization is to gain the business and competitive advantage.
The business organization which has been selected is Morrison. The company is one of the largest business organizations in the UK who has been operating the business in the retail sector. The company since its inception in 1889 has been witnessing huge development and growth. The financial growth of the company depended upon the effective business strategy and business environment in which the company has been able to grow its business and in the current scenario, the company has been giving a tough fight to its competitors (Veselovsky et al. 2017). There are two types of business environment. These are external and internal business organizations. For the successful growth of a business organization, this is imperative to have the conductive business environment in which the business operation can be carried out effectively. After the financial crisis in 2009, the national and international business environment has become much more conductive and supportive for the business to grow. This has helped much business organization type grow and expand its business in the domestic as well as domestic market of the country. This has to be ensured that given the conducive and supportive environment for the business and its growth, there is a high competition as well in the business environment which has been supporting the growth of the business and there are some of the factors which are responsible for the development of the business organization. Businesses organizations are adopting the various types of business strategy to grow the business and sustain its progress. Significantly, the business environment and economic growth of the country impact the business operation.
Business objective: Business objective of different organizations always differs. This specifically depends upon the types of business which are being done by the business organizations. Considering the business organization and its nature of functioning, objectives of business always differs (Kozubikova et al. 2017). For example, a business organization who does provide service and therefore comes under the service industry aims at providing the best services to the customer whereas a business organization who manufacture products has aim to provide the best quality of the products so as to gain high revenue.
Importance of accounting: Accounting is defined as a detailed and systematic recording of financial transactions of business. This plays a very significant role in terms of operation of a business. With the help of accounting, a business organization can keep the records of all kinds of transactions and expenditure as well as total costing. It not only helps in tracking the business expenditure but also this helps in ensuring statutory compliance thereby providing management and investors or a government with detailed information of the expenditure which happened. The role of the accounting is also associated with the decision making of the organization. Most of the organization takes all kinds of decisions based upon the accounting and its current status. Henceforth, the role of accounting plays a very important role and this will ensure that the organization is spending the right amount of money. For running a successful organization, this is the utmost requirement of a business organization to have an effective mechanism of accounting by which accounting and its process can be done effectively (Talman, 2018). Thus, this can arguably state that accounting plays a major role in a business organization. Accounting provides information of loss and profit as to how much the company earns or how much the company has to incur. In addition, accounting also provides income statements, cash flow and balance sheets and all information of income.
Function of HR department: HR Department plays a very significant role in terms of development of the business in an organization. HR department in an organization is responsible for managing the human resources,
There are following different functions of HR.
This has been mentioned that the role of the HR department in an organization is very important and the HR department in an organization is responsible for handling all kinds of work which are related to management and human resources. The work range which can be included in this area compliance of labor law, record keeping, training and hiring, compensation etc. all these tasks are performed by the HR. This different function can be discussed below:
Ensure compliance with labor laws: This is one of the most important functions of the HR department within an organization. The HR department in an organization always ensures that labor law is sneered at and the process of hiring an employee all the regulations of the government is ensured by the organization.
Recruitment and training: This is also one of the most important functions of the HR department to provide effective training and recruitment in an organization. Within an organization an HR always provides a training program for the employees and mostly the Job role of HR is also associated with the process of recruitment and talent acquisition.
Record keeping: HR departments in an organization also play a very significant role in keeping the record of all processes which are done in an organization (Baum et al. 2017). An HR department always keeps all kinds of records such as records of em[loyees, tax records, expenditure, and all forms of the record are being processed by the HR department within an organization.
Relationship with employee: HR department in an organization is also responsible for having a better relationship with the employees. An HR department in an organization always abides by the management and its decision and accordingly establishes a good relationship with the employers. This is one of the key roles and most important functions of the HR which is performed by the HR department (Austen et al. 2018). For establishing a better organizational culture employee engagement is the utmost requirement.
Performance improvement plan: This is also one of the key roles and functions of the HR. The HR department in an organization always keeps all the records of performance of the employees and accordingly prepares a plan for the improvement of employees’ performance.
Key features of employment legislation: employment legislation is con suffered to be a law which aims at giving the business organization. Each and every county in this world has its own legislation for the employees. The labor laws provide the specific rules and regulations for the employers. In each country, there is a specific employment legislation which aims at g or refining the business organization. The aim of the employment legislation is to protect the rights of the employees. The legislation also outlines responsibilities and obligations of the
organization (Austen et al. 2018). This has to be considered that different countries have different types of employment legislation.
Key features of employment legislations:
There are some of the key features of this kind of legislation.
These key features of employment legislations include harassment and bullying at workplace, gender discrimination, Disability, equal pay, working hours. These are some of the key features of employment legislation. All of the features and provisions which have been included in employment legislation aim at protecting the rights of the employees.
Benefits of employment legislation: There are benefits of the employment legislation. These benefits of the legislation aim at protecting the rights of the employee working in the different organization. All the business organizations are abided by the law. This law has been able to establish a benchmark among the employees and the law has the provision that the employers have to abide by the law. Considering this effectively, there are following descriptions of the benefits of the employment law can be given.
Employee protection: Protection of employees is the main aim of this law. This law aims at protecting the employees from any kind of harassment and wrongdoing. In addition, this law also protects the employee from any kind of discrimination.
Protection of employer: The employment law also protects the employer and the employee, the law does not mean to provide the benefit and protection to the employee working in an organization but also this provides equal rights for both employer and employees (Alammar 2016). This can be outlined with the fact that employment legislation also provides the protection of the employers. Therefore, the organization can easily run the business and enhance the growth of business. For the purpose of business, employment law always plays a significant role.
Economic stability: economic stability is also one of the core benefits of this law. This kind of law always provides stability to an economy.
Health and safety: health and safety is one of the priorities of the employment law. This law takes care of health and safety of the employees thereby providing social security to the employee (Ibrahim et al. 2020). This is one of the most crucial benefits of this law which always controls the organization to take the appropriate steps for the health and safety of the employees working in the organization.
Interpretation of profit and loss account
Profit and loss of the company can be interpreted with its financial statement. Morrison has witnessed the growth in terms of profitability [Referred to Appendix 1].
The company has been able to increase its turnover in 2010 and the profitability ratio of the company has also been higher. The annual growth of the company has increased and its sales growth has been +4.8% and its profit has been 406m and the free cash flow generation of the company has been 265 million approx.
Analysis of business performance
This profit and loss of the company has demonstrated the performance of the company as how the company has been able to increase its growth and strives for the further development of the company in terms of its growth and profitability. [Referred to Appendix 2]
Analysis: Working in an organization always includes teamwork which means to work with each member of the team simultaneously. Undoubtedly, teamwork always plays a very significant role in an organization. For the successive growth of the organization, this is important to lead the teamwork; the contribution of teamwork always helps the organization to sustain its business development (Berisha et al. 2017). This has been seen that many business organization adopt the effective strategy of teamwork which includes all the operational management of the organization, this can be stated that the team work play a very significant role and this is also to be noted that the role of the team leader is important in terms of leading and heading the team to achieve the goal and purpose of the organization,. Over the years this has been seen that many organizations are always focusing on the strategy to initiate an effective team so that the operational management of the company can be easily carried out.
For these purposes, the role of the team member and the leader who is responsible for leading the team is important (Roška, 2018). Significantly, the role of the team and its members is the level of productivity and achieve the organizational aim of the organization, in each business organization; there is an effective team who always work for the betterment and growth for the organization. Significantly, a team is the backbone of the organization that always helps the organization to grow.
Stages of team development: Morrison is one of the largest retail chains which has been catering the needs of millions of consumers across the country through its effective
distribution channel and an effective operation strategy (Barlow et al. 2019). All of these can be done with an effective management of the team and its constant hard work. According to bruce Tuckman : There are certain stages of team development which helps the organization to develop the tea, There are detailed illustration of each of these stages can be given below :
Stage 1: Forming: This is the first stage of team development. In this first stage of the team, members of the team meet together and chalk out a plan and agree with each other for gaining and obtaining the common goal for the organization. This is one of the most important parts of the team development and therefore this part is also known for its initial part of the organization.
Stage 2: Storming: This is the second stage of team development as per this theory. According to this theory, in this stage, it is apparent that there are some kinds of disagreement which always happens and this has become a part of the team. In this stage, storming always erupts among the members of the team. For the avoidance of this situation which always comes. In this kind of situation, the role of the team leader is effective. The role of the team leader plays a very significant role in this kind of challenge. Hence, this can be stated that the role of the team member and most importantly the role of the team leader is important to avoid any kind of conflict within the team (Najeeb and Barrett, 2019). The team leader must create an environment in which the team can perform well and contribute for the sustainable growth of the organization.
Stage 3: Norming : Norming is also one of the crucial stages of team development in this theory. According to this theory of norming, there are some of the following factors which arise, roles and responsibility of the team. In this development of the team, the role of the team member and all the members of the team should be supportive. In this stage of the team development, the team leader of the concerned team always encourages the team to do the best and increase the level of productivity for the employees who has been working within the organization,
Stage 4: Performing: Performing is one of the most crucial stages of team development. In this stage of team development, all the members of the team and team leader carry out the different types of tasks. In this stage, each employee shows their support to each other. Apparently, the members of the team depend on each other and all carry out all the tasks which are required. In addition, the team leader in this stage motivates each and every member of the team.
Stage 5: Adjourning: In this cycle of team development, adjourning is the last stage. In this stage of team development, each member of the team completes the tasks which have been assigned. This is the last stage of team development where all the members of the team have to complete the tasks and evaluate the overall work which has been done. This is also to be noted after the completion of the tasks, each member of the team rejoice and celebrate the team’s achievements (Hunt, 2017). This is essential to celebrate the achievements as this instills the positive feeling among all the members of the team and looks for the overall development of the organizational as well individual professional development.
Three motivation theories
Motivation theories are associated with the theories of motivation which are tasked with discovering what drives an individual to perform the work for achieving the goal. Business organizations are interested in motivation theory as this helps an individual or employee to stay motivated. This apart, this also increases the level of productivity. There are three prominent theories of motivation. These are:
- Maslow’s hierarchy of needs
- Hertzberg’s two factor theory
- McClelland’s theory of needs
Maslow’s hierarchy of needs: According to this theory of Abraham Maslow, an individual can only be satisfied if his wishes are accomplished. This theory of motivation considerably focuses on the needs of an individual. This theory of motivation categorically suggests that an individual always strives to fulfill his needs by taking into consideration the needs which are essential.
Hertzberg’s two factor theory: This is also one of the most important theories of motivation which also focuses on the needs of an individual (Cui et al. 2017). This theory of motivation can be classified into two factors. These two factors are Hygiene and motivating factors.
McClelland’s theory of needs: This is also one of the most important theories of Motivation. According to this theory of motivation, all of these factors assumes greater significance and helps in motivating the employees working in the different organizations
Different types of leadership styles: Leadership styles are defined as a manner by which an individual utilizes his capacity so as to lead others. In terms of organizational context this plays a very crucial role. There are different types of leadership styles which are discussed below:
Democratic leadership: This is one of the best leadership styles. A leader using this style of leadership alway takes decisions based upon the advice and suggestions of each team member. In this type of leadership style, each and every stakeholder is respected.
Autocratic leadership: This is the leadership style is completely inverse of democratic styles of leadership. In this type of leadership, a leader always makes decisions without taking any suggestion from anyone.
Strategic leadership: In this style of leadership, a leader always makes decisions based upon the strategy and all the decisions which have been taken by the leader are based upon the strategy.
Transformational leadership: This is one of the best leadership styles which most of the business leaders apply while working in an organization. In this kind of leadership style, A leader always strives for change and innovation.
Use of leadership and motivational styles :
Use of leadership style and motivational styles: The use of leadership and motivational style plays a very significant role in terms of leading the team and organization simultaneously. A business leader always tries to fix the complicated situations with the style of leadership and motivation (Gnewuch et al. 2017). This has been seen often that employees in an organization always get demotivated. At that time, the role of leadership and motivation plays a very significant role and it enhances the commitment of the organization. There are different kinds of situations within an organization where the leader has to play a very important role with his style of leadership and motivation
Impact of customer service
An effective customer service always paves the way for the business and organizational development. Effective customer service always helps the business organization to potentially develop its business and retain high growth of revenue. A good customer service also plays a very crucial role in terms of strengthening the customer base (Pesch and Bussiere, 2017). Good customer service always creates an image of brand equity among the consumer by which the consumers ever prefers the service and products. Morrison, being one of the largest retail companies in the UK has always been focusing on customer service and this has contributed a huge success in terms of business development of the organization across the UK.
Benefits of customer profiling
There are many benefits of customer profiling.
This is a marketing tool by which an organization always categorizes its customer as per their behavior and need. In terms of increasing the sales and profitability of the organization, Morrison utilizes its latest technology and tool in order to do the profiling of the customers as well as assessing their behaviors. By doing so, the company has been able to increase its profitability and growth.
Analysis – The impact of customer service on business success can be stated with the fact that effective customer service paves the way for further development of business and helps in extending the business in the global market. Morrison is one of the largest retail companies in the UK with 498 stores across the country. The success of the business of the organization is the corollary of its effective customer service and support. It is the best outcome of its better customer service and support that the company has 17.735 million of revenue.
Business sectors in the UK have been growing rapidly and this has been impacting the national economy of the country. Over the years, the business environment within the country has been very conducive and supportive which has helped the organization to flourish the business. Undoubtedly, the businesses are flourishing within the country and contributing for sustainable growth for the national economy. Considering the business sectors of the UK, business organizations have been able to achieve the national fame within the country. Business environment impacts the business organization within the country. This assessment has categorically stated the role of the business environment and its parameters and factors under which a business operates. In this assessment, each task has categorically discussed the factors which are conducive for the business and its sustainable development. In this assessment, a business named Morrison has been taken into consideration and all the aspects of the business operation of the company has been discussed in this.
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Appendix 1: Loss and account of Morrison
Appendix 2: Financial growth of Morrison