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Unit 3 Business Operation Assignment HND


Business operation is a one of the of critical process with in an organisation. In United Kingdom competition in retail sector is very high so that each one firm has develop strategies to compete competitors at market. In this report, TESCO are choose to know the impact of operations activities on firm performance, productivity. In this, approx 476000 employees have worked with almost 6553 store in the year of 2017 (Adjei, and et. al., 2014). TESCO has established in 1919 by Jack Cohen at London, England. In this assignment covers kind of business, different structure of several organisation and impact of local, national, global economic environments on performance with a guide on business operations.


1.1 Kind of organisation

Current business environment is highly competitive in nature so that each and every organisation has want to make their own vision as well as mission in order to run enterprises effectively. On this basis of this, business are divided into two type private and public. In private organisation, the main objectives of running operation is a profits. But in public company the main aim is full fill needs and wants to the society in order to provide high growth opportunity in nation economy. One of the major difference between both are government are retain share of public enterprises to save right of common people, but not the same for private institute (Amit and Zott, 2015). On the basis of size system are divided into four type micro, small, medium, large. This show which organisation has how many market share as compare to their competitors in same industry.

1.2 Different structures of the companies

Structures of company mean how many people are working here and level of operational activities. In current market environment of UK, there are five different kind of firm structures are explain as below:

General partnership: Partnership means two or more people are work together and achieve common aim in an effective manner in given time frame. United Kingdom government allows minimum two as well as maximum fifty partners to make partnership firm. In this type of company role are responsibilities are divided in equal proportion.

Limited partnership: In this, partners are share their liability. It is also called limited liabilities organisation. Management of firm has make partnership deed and mention all role, duty of each partners with in work place. In this liability, functions are distribute on agreed ratio or by proportion of investment or in the business operation.

Sole proprietorship: In this type of enterprises, whole business activities are run by single person and they are fully responsible for profits as well as loss. Mostly, this type of institute operate at small level in order to achieve their goals, aim effectively in limited period of time.

Non profits Organisation: The vision of this kid of firm has enhance overall social living Stansted as well as provide equal opportunity to each one (Doppelt, 2017). They are gather fund form various institute in order to provide facilitie4s like food, clothes, house, drinking water, education etc. to poor person those have can not able to purchase their necessary product which help to survive life effectively.

Corporations: It mean one organisation run several subsidiary companies to operate business activities appropriately. TESCO has also came under this section and running work at global level.

1.3 Impact of local, national, global economic environment on enterprises performance

Economic environment has change in different location and it create positive as well as negative impact on organisation performance in long period of time. It is management responsibilities to develop strategies which help to gain competitive advantage at various nation. Impact of local, national, international on institute are explain as follows:

Local: In this, social cultural environment of city or town may affect firm performance in two type which are explain as follow:

  • Positive: Management are consider some economical factor like per person earning capacity, growth, disposable income etc. through this they are able to produce product accordingly in order to gain sustainability at market place (Bernstein, 2015).
  • Negative: Several micro as well as small institute are already work there and they have strong personal relationship with clients that affect firm sales volume as well as profitability.

National: Overall country economy has create both form of effect positive, negative on enterprises presentation that are explain below:

  • Positive: High competition has create lot of opportunity for organisation, in UK retail sector have highly competitive in nature so that TESCO has sell their product at economic price all other competitors are do the same thus help to achieve goals and objectives by their core competences at market.
  • Negative: Low economic growth rate, less employment opportunity, low disposable income etc. has create negative impact on institution execution of task in long period of time.

Global: At international level, most of the company has conducting research to know different nation client's needs, wants and accordingly develop product to sell in several location.

  • Positive: Large number of customers are available at market place and firm has opportunity to gain higher profitability, sustainability and market share.
  • Negative: Home company has receive some benefits form their government like taxation, investment etc. which create negative impact on global enterprises presentation (Dunning, 2014).


2.1 Importance of accounting with in an organisation

Accounting is an importance department within firm which help management to take decision in a appropriate manner. It is accountant responsibility to manage all cash inflow, outflow information and prepare financial statements that includes profits & loss account, balance sheet, training report etc. Some other benefits of accounting are provide several ratio like equity, turnover, current etc.; prepare budget, statutory complaints, forecasting of sales, profits, production, loss, expenses and many more.

2.2 Various function of human resources department

Human resources department has play vital role with in the company which help to enhance productivity of all staff members. Through this, enterprises are able to achieve aim, mission effectively in given time frame (Gassmann, Frankenberger and Csik, 2014). Major function of HR manager are detail as follows:

Training and development program: Human resources manager are analysis needs, want of all staff members and accordingly develop training events in order to enhance skills, knowledge which improve productivity as well as performance of employees.

Recruitment and selection: Recruitment and selection is a main work of HR executive of TESCO. Two kind of hiring sources internal or external are available at market. Human resources assistant of select internal recruitment method, in this they are use promotion, transfer, old employees strategies to hire workers.

Appraisal: They ask all staff members to full fill feedback form related to individual performance. That help to provide compensation, benefits, higher salary, promotion, transfer etc. facilities to higher presentation workers with in an organisation.

2.3 Key feature of employees legislation

Government has make staff members legislation and save their right at working place. It is a management responsibilities to implementing all laws at firm in order to enhance motivation, productivity, performance, self confidence etc. of individuals. Some important legislation are:

Discrimination rule: management of the company can not create discrimination on the basis of colour, age, education, gender and many more (Omar, Leach and March, 2014).

Equality act: It is a administration responsibility to provide equal right like promotion, salary, employment opportunity etc. to all staff members.

Minimum wages rule: Government of UK has make regulation in this they mention that all firms has provide some minimum salary amount to their all employees in return of their work. It is a individuals basic right and each one enterprises including TESCO has execute in rule in their firm.


3.1 Profits and loss account of TESCO

P&L account of TESCO has explain as follow:

Profits and loss account

Year 2017

Total Revenue


Cost of Revenue


Gross Profit


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


Minority Interest


Net Income From Continuing Ops


Non-recurring Events


Discontinued Operations


Net Income


Net Income


Net Income Applicable To Common Shares


Interpretation: TESCO has earn net gross profit of 2363000 £ with net expenses of – 1028000, it shows organisation has earn double amount as compare to their cost. In the last they earn negative income -40000 £.


4.1 Others as well as own role in group

With in a team, various type of individuals are work together in order to achieve common goals in limited period of time. The main objectives group members are follow larders direction, share all relevant information with other group members, effort to win target and many more. As a team leaders my role and responsibilities toward group is more then other some are controlling all employees, manage them, motivation, increase learning, reduce conflict, share experience etc. All these activities has help to workers to completing task in an effective manner.

4.2 Team development plan

Human resources manager organising training to improve employees skills, knowledges which help to achieve goals and objectives in given time frame. For this, HR executive are know workers role as well as responsibilities and accordingly make plan (Palattella and et. al., 2016). There are several step to develop team are explain as follows:

Forming: In this stage, administration has make team as per requirement and they have analyse all staff members capabilities, skills. Manager match their all requirement with workers abilities and develop group accordingly.

Storming: Management of the company has executing brainstorming activities for individuals to improve skills as well as performance that help to achieve aim, objectives appropriately in limited period of time.

Norming: Manager of TESCO has develop strategies to build positive relationship among all employees with in working place that reduce conflicts.

Performing: It is a final step of developing team, leaders provide directions to members in order to complete task effectively.

Motivation theory:

Maslow hierarchy need theory: Maslow has find out four kind of needs and says human needs are going on systematic manner. It arrange into sequence like psychological, social cultural, self esteem, self actualisation (Petro and Gardiner, 2015). In psychological needs, daily necessary product food, water, clothes, etc. In second, relationship, emotional support etc. In third, achieve goals, objectives etc. In last self actualisation cover prestige and many more.

Herzberg's theory: It includes two factor hygiene and motivation. Management of firm says some motivational elements are existing in working environment thus create positive affect on performance. They are also develop strategies to enhance motivation among employees.

Leadership style:

Autocratic style: Management can not involve staff members in organisation decision - making process. Their power are centralise in nature.

Democratic style: Administration of the company motivating workers to take participation in firm decision making process. Though this, they are able to take effective action with lot of new ideas.


5.1 Effect of buyers services of enterprises success

High quality services provide success to organisation through higher profits, strong brand image, satisfy clients have provide positive mouth publicity which increase goodwill, enhance market position, increase sales and many more. Management required to make all task appropriately so that staff members are able to deliver goods as well as services according to needs of potential customers in industry (Reim, Parida and Örtqvist, 2015). Through this, TESCO has capable to achieve attention of large number of clients that enhance profitability sales in long period of time.

5.2 Benefits of customer's services

There are several benefits of clients services which are offer by organisation in order to increase customer's satisfaction as well as build positive brand image in consumer's mind. Through this, firms have capable to achieve higher profitability and sustainability in long period of time. In highly competitive environment, enterprises has develop effective buyers service strategies to complete competitors at market place appropriately.

Also, read how the business operation can impact a company.


From the above report it is concluded that management of the company has develop plan in order to run all business operation in appropriate way. Through this, enterprises are able to achieve aim as well as objectives in limited period of time. It is a UK third largest retail company which run their business work at international level through this firm are gain higher profitability in long period of time.


  • 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.
  • Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model design. Strategic Entrepreneurship Journal. 9(4). pp.331-350.
  • 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.
  • Dunning, J. H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.
  • economies. Routledge.
  • Gassmann, O., Frankenberger, K. and Csik, M., 2014. The business model navigator: 55 models that will revolutionise your business. Pearson UK.
  • 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.
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