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How Business Operates Level 5 HND Diploma Business

University: University of Sunderland in London

  • Unit No: 5
  • Level: High school
  • Pages: 11 / Words 2626
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 3098

Table of Content

  1. Introduction
Question :

This assessment will cover some topics which are discussed there under:

  • Discuss about the different types of public and private organization.
  • Discuss about the Benefits of customer profiling to business
Answer :


Today in competitive world, business environment has become dynamic in Functions of a company is affected by micro and macro environmental factors like suppliers, laws and legislations, ethics, CSR activities and more. These elements are directly affected the operations and policies of organisation. Therefore, in order to operate a business at local and global level, managers of industry needs to analyse impact of the same. Because these attributes are generally used to force employers to make changes in policies and strategies (Warner, 2018). Marriott Hotel which is the fourth largest international firm of UK in tourism sector, has taken under this report. This company operates its business in many countries all over the world. Present assignment has disclosed some sorts of organisations come under public and private sectors along with their different business structures.


1.1 Different types of public and private organization in UK

Organisations come under public and private sector companies are classified according to business in which they operate in. Industries which are under control of Government are public sectors while others come in private. Private sectors are defined in terms of ownership such that sole proprietors in which business is run by single owner. While in partnership firms, business is run by two or more business partners. In context with public organisations, it has no limit of ownership as business is run in order to serve mankind (Petro and Gardiner, 2015). In UK, Royal Bank of Scotland, BBC and Ministry of Defence are some public organisation while M&S, Marriott Hotel and Nestle are private associations.

1.2 Different structures within businesses and reason for variation

Associations of UK have different business structures according to their objectives. These organisations are generally come under public and private sectors with different purpose but have common aim is to improve standardisation of people.

Public organisation- Structure of public sectors are classified according to number of employers as:-

  • Vertical structure- This structure of structure is generally seen under military areas where decision are taken by several directors. These persons are responsible building policies, programs and various procedures.
  • Horizontal Structure- Law agencies has taken this type of structures at their workplace because these corporations have few number of directors who made important decisions.
  • Matrix Structure- This structure are generally seen under governmental agencies in which all persons are equal and make decisions with collaborating each order.

Private Organisation: These enterprises are run their business in order to generate more and more profit by providing effective services to customers. Business structure of such companies can be classified as-

  • Directors:- It is necessary for private industries to have one director at least who is able to make important decisions according to company's benefits.
  • Company secretary:- In the absence of directors in a firm, secretaries are responsible to make decision of administrative matters and maintain official records.
  • Shareholders:- Employees, suppliers, investors and more are shareholders of company who are responsibility for existence of company's business.

1.3 Impact of local and global economic environment on selected business

For expansion of a company, management need to look out various factors which impact on it either positively or negatively. These factors include technology, environment, political rules and more which are vary according to country. In present scenario, global and local environment of a territorial region impact on company's business in a wide manner. Marriott Hotel has expanded its business already in 47 countries of different location. Therefore, it is compulsory for management to comply the business according with rules and regulations of these regions (Palattella and et. al., 2016). The main impact of globalization is that it makes changes in currency rates due to which profitability of organisation has also influenced.


2.1 Importance of accounting for business success

Managing accounts is the most essential part of every association whether small or big. As it helps in keeping the record of finance as well as controlling and managing cash related activities in a proper manner. People in account and finance department are used to keep record of daily transactions of office and prepare records, income statement etc. in order to track position of company. In Marriott Hotel, management of accounts helps in developing packages of travel, planning tourism related activities and more.

2.2 Functions of HR department in business

Human resource department of an association holds several responsibility like providing required staff within all divisions of company as per need of job, ensuring healthy and safe environment for them, giving essential trainings and so on. In Marriott Hotel, its HR managers are mainly concern on recruiting staff that are highly skilled and experienced as well as can be able to speak and understand different kind of languages. As in tourism industry, employees are needed to deal with guest who belongs from different countries so, it is essential for them to gain knowledge of various languages so that they can deliver effective services

5.3 Key features of employment legislation

Employment legislations are made in order to protect people from exploitation and discrimination which could be occurred on the basis of different characteristics they have (Omar, Leach and March, 2014). It includes factors like difference in sex, gender, race, colour and nationality etc. With this assistance, UK Government has established various laws like Minimum Wage Act, Employment Act and more. These laws are helpful in reducing discrimination as well as improving working condition of employees in an organisation. Therefore, for this procedure Marriott Hotel provides healthy and safe working environment to workers.


Profit & Loss Account for Marriott Hotel



Total Revenue


Cost of Revenue


Gross Profit


Selling General and Administrative


Non Recurring




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


Preferred Stock And Other Adjustments


Net Income Applicable To Common Shares


Interpretation: As per above P&L statement, it has interpreted that Marriot Hotel has 22894000 total number of revenues in the year 2017. While in operations this firm has lost 2359000 and the end of financial period it has received amount of 1372000.


4.1 Role of team-members and own

When people engage in a team to do a common task then it will be easy for them to accomplish the same in appropriate manner (Mackey and Sisodia, 2014). As by this process, they can generate a relationship between those are unknown for them and have different background. In the same procedure, I have also being a part of team for completion a major project. So, have learnt a lot like before being in a group my patience level was down. But after doing a common task with others I am able to behave calmly behave with others. Leader of this team has given us various responsibilities according to abilities and knowledge we have. Every person in my group has able to do any type of task. So, have worked with them teach me skills which I haven't possessed before.

4.2 Team Development

Engaging employees in a group task helps an organisation to achieve success of business in a higher manner. Therefore, management of a company needs to build some strategies which are used to engage people in group task (Weiss, 2014). For this process they are required to focus on stages of team development as well as adopt some motivational theories and leadership style.

Stages of team development - It includes five types of stages that are-

Forming: In this initial process, management is required to introduce each team-member with each other.

Storming: It is the second phase in which each member of team give their best in order to show their abilities. So, chance of conflicts naturally occurs among them.

Norming: In order to reduce conflicts and make a good relationship between people of group, leaders are required to influence them about benefits of working in team. This will prove in making collaboration among them.

Performing: After norming stage, people used to behave each other in calm and friendly as well as help in accomplishment of task successfully. Therefore, in this phase company has got achievement of a project in short period of time due to team-work.

Adjouning: It is the last stage in which all members come with each other and enjoy the party of success.

Motivational theories - To complete requirement of every stage in a proper manner, managers are needed to adopt some motivational theories like Alderfer's ERG theory, McCelland's Need and Maslow's Hierarchy. Concept of these theories helps in encouraging members of team to boost their morale up and complete a task successfully.

Leadership styles- In order to motivate workers and influence them towards objectives of a task, leaders and managers are needed to change their styles of leadership (Doppelt, 2017). They can adopt situational, contingency and democratic leadership styles according to type of situation.

4.3 Role of leadership and motivational style in context with different situations

. Leaders are required to change their styles according to situations vary in team of an organisation. When people are working in team then as per different skills and knowledge, many differences are occurred among them. Therefore through motivational theories and leadership styles, group-leader becomes able to resolve their conflicts and engage them in team. Theories like McCelland's Need and Alderfer's ERG are used to motivate workers to work properly. While if problems arise like conflicts, resistance of change and more are solved by managers with the help of leadership skills.

4.4 The way leadership style and motivational skills are used to influence workers

In order to influence workers, leaders and managers are used to possess some leadership and motivational styles in them. As a team cannot achieve success in a given period of time without a perfect leader who manages all work of them. In Marriot Hotel, managers are used to influence staff members to deliver good services to customers as per their demand. They use many motivational theories like McCelland's Need Theory, through which managers can identify needs of team-members and fulfil the same on time. Along with this, according to situation they use various leadership styles also (Bernstein, 2015). In general, leaders use democratic style to encourage workers towards business objectives


5.1 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 tourism 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 (Reim, Parida and Örtqvist, 2015). With this assistance, Marriott Hotel has made various modifications in services which aid them to get interest of customers easily.

5.2 Benefits of customer profiling to business

Customer profiling is helpful in understanding needs and demands of them for company's management. Therefore, for this process managers of Marriott Hotel used to make good interaction with its guests and make connection with them through various applications of social sites (Adjei and et. al., 2014). 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. 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.


From this report it has suggested that is a company wants to carry out its business in a profitable way then management has to analyse impact of various factors which are present under business environment. Along with this, in order to turn impact of factors on growth of organisation in a positive way, employers have to build strong strategies and policies as well as made changes in entire operations. Further, to gain competency firms of UK are required to provide effective services to customers.


  • Adjei, H. and et. al., 2014. Assessing the Corporate Social Responsibility Activities of Atwima Kwawoman Rural Bank Limited and its Impact on the Communities it Operates. European Journal of Business and Innovation Research. 2(4). pp.36-47.
  • Bernstein, M. H., 2015. Regulating business by independent commission. Princeton University Press.
  • Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
  • Mackey, J. and Sisodia, R., 2014. Conscious capitalism, with a new preface by the authors: Liberating the heroic spirit of business. Harvard Business Review Press.
  • Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business sectors: A framework to guide strategy development for nonprofit organizations. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations. 25(3). pp.657-678.
  • Palattella, M. R. and et. al., 2016. Internet of things in the 5G era: Enablers, architecture, and business models. IEEE Journal on Selected Areas in Communications. 34(3). pp.510-527.
  • Petro, Y. and Gardiner, P., 2015. An investigation of the influence of organizational design on project portfolio success, effectiveness and business efficiency for project-based organizations. International Journal of Project Management. 33(8). pp.1717-1729.
  • Reim, W., Parida, V. and Örtqvist, D., 2015. Product-Service Systems (PSS) business models and tactics-a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
  • Warner, K., 2018. Building rules: How local controls shape community environments and economies. Routledge.
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