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How Businesses Operates in United Kingdom

University: ITCM College London

  • Unit No: 3
  • Level: Diploma
  • Pages: 13 / Words 3259
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 830
Question :
This assessment will cover the following questions:
  • Discuss about the Kinds of organisation.
  • Discuss about the Different structure within business
Answer :
Organization Selected : Hennes & Mauritz


Business environment plays a crucial role in operating a business in a better manner as it includes both internal and external factor which can have an impact on company's performance. In this, factors that are included are like suppliers, technologies, rules and regulations, social environment etc., For this assignment, company which has been taken is Hennes & Mauritz; which deals in clothing in United Kingdom (Adjei, H and et. al., 2014). Report will majorly focus on different kind of structure that are followed by public and private sectors in United Kingdom. Other than this business functions and environment that are present in a company is included in this assignment. Accounting workshop has also been explained and lastly, customers services provided by companies are included in this report.


1.1 Kinds of organisation that are found in both public and private sector in United Kingdom

Basically three kinds of organisational sectors are there but report will focus on two i.e. public and private and these are explained below:

Public Organisation: These are the sectors that are run and regulated by regulatory bodies of nation. In terms of finance, taxes that are paid by citizens are used for providing better services and facilities. Public organisation can be further classified into two categories i.e. Central that includes defence, national health care services, activities that are related to social security etc., whereas local government constitutes primary and secondary educations to every individual, big libraries and many more. Henceforth,

Private Organisation: These kind of businesses are run and regulated by a single individual along with some of their subordinates. Main purpose of these companies is to get maximum amount of profit from goods and services that the firm is giving to its customers. Private organisation can be further divided or classified into sole traders, partnership, franchises and many more. Companies that comes under public organisation contributes ample amount of money in nation's economy.

1.2 Different structure within business in United Kingdom

Every company has its own structure of operating its business whether small, medium or large. Thus, entire concept depends upon size and structure of firms. For having better operations it is necessary that an effective communication is established in enterprise so that superiors can have better interaction with its subordinates. In total there are 5 common business organisational structure that are being followed by most of the companies. In terms of Hennes & Mauritz they are using Functional Organisational Structure that are explained below:

Functional Organisational Structure: This kind of functions are basically very common in nature and are adopted by most of the companies for their business purpose. Hennes & Mauritz has adopted this organisational structure for operating their business and it is assisting them in classifying groups as per the functions in which they are good. Thus, company has separate departments for their functioning like human resource, operation management, finance department etc., therefore, it helps organisation in performing their task in a systematic manner. For example: Managers in an organisation play their role and analyse functions that are performed by employees and report to their superiors which includes directors or vice presidents. Work performed by expertise help organisation helps firm in executing plans in a better manner. In different companies, no significant changes can be seen in their business operations as maximum number of firms use functional organisational structure.

1.3 Impact of local and global environment on business operations by Hennes & Mauritz

H&M is one of the leading company that work for providing services in clothing sectors of different age group whether men, women, teenagers, old aged people etc., company is big and they are operating its business in around 62 countries under which H&M have close to 4,500 stores and approximately 132,000 number of people are working for providing maximum benefits in return. While establishing its business, company has chosen countries that are politically stabled and doesn't face any serious kind of problems like France, Denmark, Germany etc., because of some currency translations and current incident of Brexit, H&M faced lower down of sales and profitability of around 59.7 percent. Although in the initial years of BREXIT complications were there but due to the cheap fashion commodities provided by company had level up entire issues. Therefore, for increasing sales Hennes & Mauritz are planning to establish new stores which is around 2,700 in China, U.S and Great Britain as well. In terms of global level company is gradually getting maximum benefits from the stores that are located in local and national level.


2.1 Importance of accounting for business success

In order to get effective information about how much company has gained profit in terms of profit and loss; accounting plays an important role in deciding a budget plan so as to run business in an effective manner. Thus, it can be said that accounting gives detailed information of financial statement which can further be used for making strategies. Other than this, if a company wants to know how much expenses company has done in one financial year than accounting help company ion doing so. Therefore, accounting also assist organisation in expanding business using appropriate funds and methodologies (Aronoff and Ward, 2016).

5.1 Different functions carried out by Human Resource department in business

Human resource department is one important department that plays a crucial role in terms of hiring selecting eligible candidates in an organisation. Entire procedure of recruitment and selection process are conducted by Human resource department by considering the post that are vacant and needs to be fulfilled. Basically companies in order to attract a large number of suitable candidates they give advertisements on television, magazines, newspaper, commercial channels etc. Providing job safety is a big concern of human resource department and HR manager look out for terms related to health and safety in order to provide better services to its workers and employees. If you want to receive an original document according to your university guidelines, then take our assignment help Bradford, right away!

5.2 Key features of employment legislations

Employment legislations are followed for maintaining a standard of working at workplace. These are formulated by regulatory bodies of a nation and under this certain rules and regulations are made that are related to minimum wages at workplace, appropriate working hours, norms related to leaves. Therefore, H&M has incorporated all these laws for maintaining a peaceful environment at workplace (Bernstein, 2015). With the help of Equality Act of 2010, it is enabling them in providing equal chances to every individual in giving views and thoughts for making strategies and plan of action. Other than this, laws that are related to providing job safety to every person who is working in an organisation so that employees may feel connected to the company. For example: H&M gives compensation to worker who faces any kind of serious injury or death which is a great move by the firm so as to show gestures of goodwill about workers.


3.1 Information on profit and loss account

Profit and Loss statement of H&M


All numbers in thousands




Total Revenue


Cost of Revenue


Gross Profit


Operating Expenses

Selling General and Administrative


Total Operating Expenses


Operating Income or Loss


Income from Continuing Operations

Total Other Income/Expenses Net


Earnings Before Interest and Taxes


Interest Expense


Income Before Tax


Income Tax Expense


Net Income From Continuing Ops


Net Income


Net Income Applicable To Common Shares




4.1 Analysis to determine own and other's role within a team

Every company built team in order to achieve set goals and objectives for this, it is required that mutual understanding is maintained between employees who share same opinions and thoughts. As I am working as a manager and my prime role is to assign task and responsibilities according capabilities that are possessed by an individual. For this, I am monitoring performance of employees on a regular basis and this is enabling me in identifying strong and weak points of a person respectively. Although I am a manager in this company and its my prime responsibility to maintain a better environment at workplace, along with this, I am giving employees freedom in expressing all their views and thoughts for betterment of the company.

4.2 Notes which can be incorporated for having support in future training events

An effective team always give positive results which help company in sustaining a better position at workplace. To form an appropriate team it is required that company follow certain steps which are explained below:

Forming: It is considered as the first step of forming an effective team and through this step superiors try to identify nature and behaviour of employees so that people sharing same thought can be kept while generating a team. In this, people those who are included are very humble and polite because all individuals are new to organisation.

Storming: It is next step after forming in which new employees starts pushing their limits for performing the task effectively which disabled company in having proper control over activities (Buhmann, 2016).

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Norming: In this, employees try to interact with every individual who are there in an organisation so as to resolve issues and differences. Workers starts respecting their superiors and leaders.

Performing: This is the last step in which employees start performing their activities in order to achieve set goals and objectives in speculated period of time. Superiors keep an eye on performance so as to evaluate whether work is going in a right direction or not.

Different types of motivational theory:

Maslow's Need Hierarchy theory: It is categorised as one of the basic theory that are being adopted by most of the organisation. This includes human needs that are basic in nature and it involves physiological, safety and security, social, esteem and self actualisation. Mainly it is used for motivating employees.

Herzberg's motivational theory: This theory is majorly classified into two elements which are intrinsic and extrinsic motivation. It is used in order to maintain a linear relationship between employees along with this, job satisfaction and dissatisfaction are included.

Various kinds of leadership style:

According to current market scenario, there are different kinds of leadership styles that have been incorporated by Hennes and Mauritz company. Mainly implementation of all these styles are depends upon situations and circumstances. For example: while increasing productivity level firm uses autocratic leadership style as it enable company in producing goods in ample number in specific period of time. Apart from this, company prefer democratic style of leadership which gives equal opportunity to every person in expressing their views and thoughts.

4.3 Adequate use of different motivational theories for business activities

Leaders and managers plays a crucial role in motivating its employees so that task can be accomplished in timely manner. H&M company is using Maslow's hierarchy for motivating its employees along with this firm is providing bonuses and rewards to individual who are doing good in their job. Enterprise is considering all basic needs like safety and security. Self actualisation and esteemed are taken into consideration which encourage workers in pushing their limits (Carayannis, Sindakis and Walter, 2015). Get the best online offer to assignment help Nottingham service by experts.

4.4 Impact of various leadership styles on employees

Although autocratic leadership style is effective when company wants to increase its sales and profitability but differences in clashes can create problem in maintaining mutual understanding. During normal days for providing better environment at work place company uses democratic style of leadership which helps workers in having proper interaction with other individuals.

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6.1 Impact of customer service on business success

All organisations of private and public sectors concerns more on providing effective services to customers as it impacts directly on their profitability. In Clothing sector, retention of old customers is much necessary for its growth. Management of these companies are much concern on delivering high services to customers according to their demand and need. This would help in earning more and more profitability as well as success of business in high manner. With this assistance, H & M has made various modifications in services which aid them to get interest of customers easily.

6.2 Benefits of customer profiling to a business

Customer profiling is helpful in understanding needs and demands of them for company's management. Therefore, for this process managers of H & M used to make good interaction with its guests and make connection with them through various applications of social sites. Some main benefits of customer profiling for business success of industries are:-

Effective communication:- When employees of a firm know profile of customers then they can interact with such people easily (Charter, M. ed., 2017).

  • As staff members will know how to deal with their demands by communicate with them properly as well as complete needs on time.
  • Decrease the competition:- Making good connection with old consumers, help managers to retain them with services for long time. This would help in decreasing competition of a firm if it has large number of customers.

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From the above report it has been concluded that, a better business environment plays a crucial role in operating business in an effective way. All departments do their part of work for providing maximum benefits to companies. Human resource department helps company in selecting suitable candidates for its company along with this, they use various kinds of leadership and motivational theory. As a result it assist companies in improving its sales and profitability.


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