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Unit 3 How Business Operates BTEC Level 5 HND Diploma Business Regent College Higher Education

University: University of Oxford

  • Unit No: 4
  • Level: Diploma
  • Pages: 10 / Words 2596
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 3484

Table of Content

  1. Introduction
Question :
This assessment will cover some topics which are discussed there under:
  • Discuss about the Different structures within businesses and reason for variation.
  • Discuss about the Importance of accounting for business success




      Answer :


      Functions of a company are much affected by business environment which includes many internal and external factors. It includes employees, suppliers, customers and so on. These elements which come under macro environment are generally beyond control of organisation. Apart from these, business environment is more dynamic and complex in nature as it keeps on changing. Therefore, it is necessary for management to apply changes in operational activities so that impact of these factors can be reduced. In order to understand how a company operates its business, this report has been made. In this context an organisation of UK named by Hilton Hotel has taken. It highlights some basic concepts like a description on how an organisation can be divided on basis of public and private sectors. Along with importance of accounting, team development, impact of customer service and their profiling has also discussed.

      TASK 1

      1.1 Different types of public and private organization in UK

      In marketplace of UK, companies are generally divided on the basis of their business criteria. Organisations in private sectors are classified on the basis of ownership like sole proprietors, partnership, joint corporations and more. These firms are operating business to earn more and more profit as well as government has no control on them. While firms under public sectors are fully controlled by regulatory bodies with common aim is to provide welfare to people. Therefore, it is easy for them to operate their business at global level. Associations like Nestle, Marriott Hotel and more are come under private while NHS, Royal Bank of Scotland are some public organisations.

      1.2 Different structures within businesses and reason for variation

      Enterprises under public and private sectors are also divided on the basis of their structures through which they carry their operations. These organisations are worked for different purpose having different target based audience.

      Public organisation-

      • Vertical structure- In this type of structure, industries have several directors who are responsible taking important decisions which are used in making policies, programs and operational procedures. It includes corporations like Military.
      • Horizontal Structure- It embodies with few directors who have equal responsibility as well as corporate each other in managing the organisation. These structures are generally seen in Law Firms.
      • Matrix Structure- These structures are created mostly in government agencies in order to handle complex situations. The main advantage of matrix structure is that it helps in empowering workers by motivating them towards company's objectives.

      Private Organisation:

      • Directors:- Private companies have at least one director who takes entire decisions and manage day to day operations.
      • Company secretary:- Secretary are also acts as directors who are responsible for administrative matters as well as manage official records.
      • Shareholders:- An industry has number of shareholders without whom it cannot exists. It includes members associated with firm, investors, suppliers and more.

      1.3 Impact of local and global economic environment on selected business

      In order to expand growth of business, a company always seeks to carry its operations in another locations. For this purpose industries are needed to concern on rules and regulations of countries where they want to bring their business. It includes factors like political, economical, environmental etc. which impact on functions in a great manner. But among these elements, local and global economic environment create more impact. It assist companies to focus on political norms before carry out their business at international level. In context with Hilton Hotel, the changes in economy influence its profitability in both positive and negative manner.

      TASK 2

      2.1 Importance of accounting for business success

      In order to know the actual position of a company in context with finance, it is necessary for accounting managers to prepare record of daily transactions. Along with making records, accountant of enterprises prepares further documents also which include Profit & Loss A/c, Income Statement and more. These statements are helpful in analysing needs of resources like funds. In hotel industries including Hilton, accounting management helps in planning tourism destination, operations, developing travel packages as well as in preparing and controlling budget.

      2.2 Functions of HR department in business

      Human resource management refers as the main part of an enterprise which performs various functions like staffing, planning, organising and so on. The main purpose of HR department is to design organisational culture as well as provide effective training to employees. Along with this, managers of this division used to track performance of employees in order to identify their needs in completing a task. After identification they provide basic facilities to workers so that they can work in required manner. In Hilton Hotel, some important functions of managers are:-

      • Hire highly skilled candidates from different locations as per need of job.
      • Identify needs of employees on individual basis and provide training accordingly in order to make them capable to do any type of task.

      2.3 Key features of employment legislation

      To prevent people from discrimination and unusual activities, Government of UK has made several laws. It includes Minimum Wage Act, Healthy & Safety Act, Equality Act, Sec Discrimination Act and more. These laws are playing an eminent role in improving working conditions of employees at workplace. In enterprises discriminations are occurred when people having different background. So, it is necessary for all firms to facilitate workers with basic training programs so that they can become able to work in team. Along with this, HR managers are required to provide information about policies and rules of workplace to employees at the time of recruitment. In addition to this, employers should ensure that their workplace must be away from exploiting activities.

      TASK 3

      Profit & Loss Statement of Hilton Hotel

      Income Statement of Hilton Hotel, 2017


      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


      Minority Interest


      Net Income From Continuing Ops


      Non-recurring Events


      Net Income


      Net Income Applicable To Common Shares


      Interpretation: As per P&L Statement of Hilton Hotel of 2017, it has interpreted that in current year this firm has total revenue 1457000. At the end of financial year, it has earned 293000 net income before tax.

      TASK 4

      4.1 Role of team-members and own

      When people at workplace work in team then it is easy for them to complete various task on time. Through this process, they can share opinion with each other which helps in reducing weakness in a wide manner. Therefore, being a part of team I have learned various things like how to make interaction with each, the way to behave and understand needs of persons within a group. The main thing which I have gained through working with team-members is that now I can control my anger and make coordination. In our group, every member is much skilled and knowledgeable, therefore, managers allocate us various responsibilities according to abilities.

      4.2 Team Development

      Due to increase in competition, a company's management has to modify its strategies on daily purpose as it impacts on business functions in a wide manner. Along with this, in order to gain better position, a firm is required to accomplish its objectives in a short period of time. This would can be achieved if only by encouraging workers to work in a more profitable way. Therefore, for this accomplishment managers are required to engage employees in group task. Along with this in order to develop their team, employers of are needed to focus on:-

      Stages of team development - Managers are needed to consider on five different stages for development of team that are forming, storming, norming, performing and adjourning. In these stages, forming is first step in which managers are used to give introductions of members who are being part of team. After introduction next step is storming, in this process team-members are used to show own skills in order to prove better from others. Further, in normalization stage, people are now begin to start collaboration with each other and help to accomplish a task on time. After then, fourth phase of team development is performing in which efforts and coordination of all people assist managers to complete task in desired manner. At last, final stage of this procedure is adjourning. Here all members collaborate with each other to enjoy success of a project.

      Motivational theories - In team development procedure, various problems are occurred in each phase. Therefore, to resolve such issues managers are needed to encourage workers by using motivational theories. In context with Hilton Hotel, employers use three motivational theories for boosting morale of employees viz. Herzberg's Motivation Hygiene theory and Alderfer's ERG theory and Maslow's need hierarchy.

      Leadership styles- Along with motivational theories, managers are required to adopt some styles of leadership such as situational, system and democratic in order to influence people towards achievement of task.

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

      Motivational theories assist employers of an enterprise to encourage and motivate people for completion of a project on time. In context with team development, managers go through several stages for building an effective team. In Hilton Hotel, its management is always focused on providing effective services to guest. Therefore, in order to deal with tourists of different countries, managers used to divide employees in various groups and distribute responsibilities to each accordingly. Thus, to get right work of them, employers are used to change their leadership styles as per requirement.

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

      In group task, many problems are occurred due to different opinion and background of members. Therefore, managers of Hilton Hotel has used different leadership skills in order to collaborate team with each other. For example- To generate feeling of equality among group-members, managers used democratic style of leadership. This style facilitates workers to work in own style. Along with this, they use situational leadership also to determine needs of team-members as well as make decisions accordingly.

      TASK 5

      5.1 Impact of customer service on business success

      Business of hospitality sector is focus more on providing effective services to people. Management of organisations come under this sector formulate effective strategies in order to give good services to customers. This process would help in retaining them for longer period of time. The main impact of providing impressive services to people is that it facilitates industries to gain their growth and profitability in a required manner. If customers in a hotel get best services then they will spread its efficiencies to other people in a positive way which proves beneficial in improving its image at marketplace. Similarly, if they will receive ineffective service then whole process goes in opposite way. Therefore, for this process Hilton Hotel focused more on facilitating good services to guest.

      5.2 Benefits of customer profiling to business

      Customers are like oxygen for sustainability and growth of a business. Therefore, industries of all sectors focused more on providing good services to them (). In this manner in order to know what customers are seeking with products or services of a company, management needs to identify their profiling. It is beneficial for success of business like Hilton Hotel in following ways:-

      • Reduce the competition :- By making good interaction with consumers, it is easy for firm to keep interest of them with products or services for longer period of time.
      • Enhance profitability:- Getting retention of consumers always prove in increasing growth and profitability of a company like Marriott hotel. Because of this, firm gets success in carrying out its business in more than 85 countries.


      From this assignment it has concluded that to operate a business whether of private or public sectors, it is necessary to concern on factors which impact on their functions. In order to reduce such impact, a company's managers are required to introduce best employs in firm as well as engage them inn group task. Along with this, to get a proper work of them, managers should focus on developing their skills and team development. Further to increase growth of business, it is essential for firm to provide effective services to customers.


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