Contents

Introduction:....................................................................................................................................1
1. Key feature of business Environment:........................................................................................1
1.1 Different types of the organization:.......................................................................................2
1.2 Types of organizations found in the public and private sectors:............................................4
1.3 Local, national and global economic environment impacts on a business:...........................6
1 M 1How and why business objectives differ between different organizations:...........................6
1 D 1 the impact of the current national and global environments in Businesses:..........................8
The importance of accounting for business.....................................................................................9
2.1 Importance of accounting for business success:....................................................................9
3. be able to apply key principles of accounting and present and interpret data.............................9
3.1 Key accounting information:.................................................................................................9
3 M 1 Analyze business performance using basic ratios:..............................................................12
3 D 1 Analyze business performance using ratios and accounting information including budgets,
profit & loss accounts and cash flows:..........................................................................................13
4. Understand the principles of managing and leading teams in organizations.............................14
4.1 Stages of team development:...............................................................................................14
4.2 An analysis to determine own and others roles within a team:...........................................15
4.3 Three motivation theories:...................................................................................................15
4.4 Types of leadership style:.....................................................................................................16
4D1 Different types of leadership style:....................................................................................16
4 M 1 why it might be appropriate to use different leadership and motivational styles in different
situations:.......................................................................................................................................17
4D1 how motivational theories used to motivate Employees:......................................................18

4 D2 the impact of different leadership styles on employees:...................................................18

The Human Resources Department...............................................................................................19
5.1 Different functions carried out by the HR department of a business:..................................19
5.2 Key features of employment legislation:.............................................................................19
5M1 Benefits of employment legislation to employees and business:..........................................19
5D1 Impact of employment legislation on businesses in a country:.............................................20
6. Understand the importance of customer service to organizational success...............................20
6.1 Impact of customer service on business success:.................................................................20
6.2 Benefits of customer profiling:............................................................................................21
6 M1 the impact of customer service on business success:...........................................................21
6D1 how customer profiling is used to help deliver targeted customer service:...........................21
Conclusion:....................................................................................................................................22
References:....................................................................................................................................22

Introduction:
Business, in economic term, refers to the systematic human activities like production or
purchase of goods & services and sales of products & services which are rendered to earn
money. Environment, on the other hand includes both external and internal aspect surrounding
the business organization. Business environment encompasses set of conditions, economic,
social, political or institutional in which business operations are performed (Arthur M. Weimer).
Thus business is a profit making organization which exchange value by means of the business
process. Business can be defined as an economic entity of our society which intends to make
profit by creating value. So business exists to satisfy some sorts of needs and wants of people by
offering product, service, experiences etc.

1. Key feature of business Environment:

Business environment consists of external factors and institutions which are not under the
control of business organizations resulting significant influence in decision making process of
business organizations. The term business organization refers to how a business is structured and
how the formation of the entity emerges. Business organization can be formed in different way
and according to it nature of ownership and formation of founders business can be classified into
different form. In this part of the report we will discuss different form of business in terms of
their ownership and explain their business operation based on business environment.
From the above discussion, key business environment feature can be summarized as follow.
a) Diversity of business environment is widely recognized in business environment. Taste
and value cherished by the people in the USA are widely differed from that of the people
in UK.
b) As the nature of business environment is dynamic, sometimes the changes of business
environment may pull new avenue for rapid evolving and sometimes it may force an
existential threat to the business.
c) Diversity of business environment is widely recognized in business environment. Taste
and value cherished by the people in USA are widely differed from that of the people in
the UK.
1.1 Different types of the organization:
Business organization can be formed in different way and according to it nature of ownership
and formation of founders business can be classified into different form. In this part of the
report we will discuss different form of business in terms of their ownership and explain their
business operation based on business environment. During setting up a new business, a
businessman have to perform extensive observations and projections about business products
and services and make decision under the context of legal, regulatory, taxation and socioeconomic perspective. In the UK, sole traders, partnership, franchise, private limited
company and public limited company are some of the prevailing business types.
Sole proprietorship:

Sole proprietorship is the most basic and primitive form of business organization. The ownership
and management of this business is controlled by a single person. So the existence of business is
not different from the owner and liability of the owner is not limited with the amount of equity of
the business. The proprietor and the business enterprise are the same existence in the eye of law.
Only source of capital for these types of business is the fund provided by the owner and thus
both risk and profit of the firm is claimed by the owner only. The main objective of this form of
business is to maximize profit of the owner (Madura, 2006).
Although this form of business has not defined in formal legal codes and considered as risky
form of business because of its unlimited liability, this form of business is widely popular in
almost all over the world. About 75% of total USAs firm is formed as sole trader and in case of
Bangladesh most of the business form is sole proprietorship. Because of its small size and
limited scope most of the sole proprietorship business operation is limited as small producer,
traders, service provider or professional.

Partnership Business:
Partnership business is owned by two or more people. In UK most partnership businesses are
comprised of two to twenty partners though there are many accountancy firms where more than
hundreds partners come to associate a partnership business. Partnership firm consists of two or
more individual as owners who accord to do business together under certain agreement. The
relationship between these partner is created through a contract which is called partnership
deed. But in the eye of law there is no separate existence between partner and firm and thus
partner means firm and firm means partner
Limited company:
Limited company can be private and public limited company. Public limited company can
publicly trade in the secondary market. In the UK, Limited company (LC) refers to a form of
business incorporation where the liability

undertaken by the shareholders is limited. The

ownership of limited company is divided into share. Anyone can be the owner of a company by
buying any number of shares of respective company and known as a shareholder of that

company. This type of business organization is considered as the separate legal entity and thus its
existence is separate from the owners. The business is controlled by the directors board which is
the representative of the shareholders of the business. That director board selects the
management group who are responsible for the control and management of the business. The
main objective of the joint stock corporation is the maximization profit and wealth of
shareholders (Madura, 2006).

1.2 Types of organizations found in the public and private sectors:

Profit maximization is the core objective of private sector. On the other hand there is some
business organization built by government authorities to provide services on nonprofit
motives. Besides nonprofit business organizations are set up to address some social causes
which are other than profit maximization motives. Business organizations are set up to serve
a specific objective.

Business organization in private sectors is a types of business

organization which is owned by either non- government organization or a group of persons.

The main objective of the private sectors business is to earn money buy serving its
customers.Uk economy is a mixed economy. Both public and private sectors provides
services to the citizens. In the UK public sectors provides health care services to education.
Private sectors vary widely from small departmental stores to giant IT firms working around
the world. Business organizations structure can be defined as the hierarchal order, chain of
command and span of command in different department of a firm and of the whole firm.
hierarchical structure is the most common structure of business and it can also defined as
command organization as in this structure the chain of command is strict, orders comes from
higher to lower designation and span of control is also predetermined.

Different Organizational:

The flow of information and reporting authority is vertical. On the other hand functional
organizational structures concentrates on job function such as operation, marketing, finance,
research etc. and arrange human resource and their reporting authority according to the function.
In this structure reporting authority is also vertical. On the other hand flat organization is a very
flexible as it has less layers of authority and employees are given significant independence to
interact and make swift decision. A matrix structure provides for reporting level both horizontally
and vertically.
Hierarchical structure:
In hierarchical organization, employees within the organization are ranked at various levels.
Moreover in each of the level in the chain, a person has a number of workers under the direct
control of them.

Figure.1: Organizational Chart Real time Board

2016)

Source: (Businessballs.com,

Flat Organizational structure: Flat organizational structure is very effective for small
business organization like sole proprietorship. It is also cost minimizing organizational structure
for sole proprietorship. In flat organizational structure, top level management directly
communicates with front-line eliminating middle level management.
Matrix organizational structure:
Large business organization operating in different geographical location have implemented
matrix organizational structure where employees need to report both regional and product
division managers. Matrix organizational structure is a complicated organizational structure
where employees of the organization have dual reporting relationship both to the functional
manager and to the product manager.

1.3 Local, national and global economic environment impacts on a business:

Marketing a product in the USA market may be successful but may not be successful in the UK
market due to diversified market and customers acceptability. Moreover economic environment
consists of taxation policy, government fiscal policy, consumer behavior, GDP etc. which are
varied country to country. For example, government taxation system has a significant influence
on investment decision making process as corporations try to minimize tax burden and prefer tax
haven countries to build business. It is a very common phenomenon in business environment that
due to changes of both local and international economic environment, market of business product
and services also changes which creates both opportunities and threat. On the other hand per
capita income also determines what types of products are to be delivered. Tesco PLC UK based
supermarket delivered wide range of product to customer considering consumers choice and
their purchasing abilities. Availability of technology and human resource also act as deterministic
factors to build up business organization.

1 M 1How and why business objectives differ between different organizations:

In the UK, Sainsbury's PLC is one of the world largest retail corporations serving millions of
customers. The objective of Tesco PLC is to serve Britains shoppers and help them with valued
product at great price thus ensure to add value to its shareholders as well. On the other hand, the
objective of the sole proprietorship businesses such as Anglia Tax Help is to provide professional
services to its clients thus ensure self-employment and progress. Moreover there are many
nonprofit organizations like Calico Group which works for social causes and try to address
specific social causes like health services, housing etc. A business has some stated or unstated
business objectives. Objectives of may differ based on the types and structure of the business.
A specific result that a person or system aims to achieve within a time frame and with available
resources. In general, objectives are more specific and easier to measure than goals. Objectives
are basic tools that underlie all planning and strategic activities.
A business objective is to sales goods or services, maximizing profit by its activities, wealth
maximization, product or service diversification, doing corporate social responsibilities,
customer service priorities and market positioning for long term survival.

Profit earning is the main objective of every business entities other than non-profit firms. The
objective of a firm may vary for different reasons. There are some certain objectives towards the
society as well as nation. The business unit prospers only if it enjoys the support of the society.

I.
II.
III.

Objectives of the business are classified as survival and growth

Economic objectives
Social objectives

When individual think for his/her business coming, he/she will yield a roll of possible goals they
want it to achieve. These are targets. The appointed moves they adopt to find to those targets are
their goals. The objectives are often used ex-changeably, but they each have important
differentiating attributes. They are used at different stages of the business planning process, and
each serves a different purpose.

Goals are very important facts they you pick about the incoming for their business. They have a
set a plan to reach their goals and there are so many ways to reach the goals and they have to
practice different methods to reach their desired goals.
In realistic situations setting up of goals for individuals and teams are important for Sainsbury's
without setting desired goal, it is impossible to reach certain destination. Whenever goals are set
it become easy to go ahead. It is not true for individuals but also for teams. This kind of process
makes every task easy to understand for subordinates. The administrative manager can easily
coordinate with others through this process. We can demonstrate our leadership skill through
personal and social activities. Goals help business owners to judge all the things technically and
not be parted from in their dynamic thinking process.

1 D 1 the impact of the current national and global environments in Businesses:

The impact of the current national and global environments in businesses can be explained
through marketing theories- PEST Analysis, is a framework or tool used by marketers to analyze
and monitor the macro-environmental factors that have an impact on an organization.
Businesses are affected by global external environments as much as they are affected by its
competitors. That also true for Sainsbury's PLC. Political, social, economic and technological
factors comprise the global environment of particular business. . For example, companies
operating in European Union have to follow directives and regulation issued by EU. With the
rise of online retails stores in global market, Tesco Plc. faces a threat of losing its customers to its
online retailer competitors. As technology shapes the societies, with the innovation of
technology, social value and customers behavior is also changing which has a great impact on
businesss sustainability. Political factors have also significance in business decision making
process.

a. Political: This can include government policy, political stability or instability in the
markets, foreign trade policy, tax policy, labor law, environmental law, trade restrictions
and so on.
b. Economic: Economic factors include economic growth, interest rates, exchange rates,
inflation, disposable income of consumers and businesses and so on.
c. Social :These factors include- population growth, life style, health
Consciousness, career attitudes and so on.
d.

Technological :
Advanced ways of producing goods and services
Improving ways of distributing goods and services
Speedier ways of communicating with target markets

e. Environmental: Increasing scarcity of raw materials, population targets, doing business

as an ethical and sustainable company, carbon footprint targets set by governments.
f. Legal: Legal factors include health and safety, equal opportunities, advertising
standards, consumer rights and laws, product labeling and product safety.

The importance of accounting for business

2.1 Importance of accounting for business success:

Accounting, the language of business works in two major field: managerial accounting which
provides information to the internal manager to manage organization productively hence increase
profitability and financial accounting which provide historical business information to external
users to facilitate investment decision of existing and potential investor of the entity. Financial
accounting includes income statement, balance sheet and cash flow statement to communicate
historical information to stakeholders.

3. be able to apply key principles of accounting and present and interpret data

3.1 Key accounting information:

Business organizations are expected to prepare profit and loss account using certain format.
Profit and loss accounts contain historical data about business performance. To steer a business
organization to the right direction, management need to be well informed about the money where
it is coming from and where it is spending over a period Typically profit and loss account
presents revenue generated and expenses for generating revenue.

A sample account of J.Sainsbury PLC

Profit & Loss A/C

Revenue

250000

Less discounts and allowances

(20000)

Net Revenue

= 230000

Less cost of sold

(80000)

Gross profit

= 150000

Less operating expense

(25000)

Operating profit

= 125000

Plus other income

10000

Less other expenses

(5000)

Profit before tax

= 130000

Less tax

(30000)

Net profit (or net loss)

= 100000

Nowadays several accounting software are using for preparing profit & loss A/C. In profit and
loss account, net profit is calculating after deducting all kinds of operating and non-operating
expense from net revenue income.

Ratio analysis for interpreting data:

Ratio analysis is a popular technique of interpretation and decision making (Elliott & Elliott,
2007). In this regard, current ratio (CR= current assets/current liability) is a liquidity ratio which
measures firm liquid asset in terms of liquid liability. Net profit margin (npm= net profit/sales
*100) is profitability ratio which shows profit of a firm as a percentage of revenue. Leverage
ratio (LR= liability/ asset) measures the ratio of external liability in the total asset of the firm.
total asset turnover ratio (TAT= revenue/asset) measures the efficiency of a company and its
management to make sales revenue from it available resources. So all of these ratios can interpret
accounting information and help business to make decision regarding business (Elliott & Elliott,
2007).There are a wide range of ratio analysis techniques to measure the profitability, liquidity
and effective utilization of fund. Current ratio which can be defined as total current asset relative
to the total current liabilities measures companys ability to settle short term liability. Quick ratio
also measures how quickly company can settle its short term liabilities. Return on investment
which is a profitability measurement ratio can provides information regarding to what extend
investment can generate return.

3 M 1 Analyze business performance using basic ratios:

J Sainsbury plc
Common-size income statement 2012
($ in millions)
Sales
Cost of goods sold
Depreciation
Earnings before interest & Tax
Interest paid
Taxable income
Taxes (34%)
Net income

$2311
1344
276
691
141
550
187
$ 363

Dividend
$121
Retained earnings 242

Liquidity measures, profitability measures and asset turnover measures:

1. Current ratio= Current assets/current liabilities=$708/$540=1.31 times
2. Quick or acid test ratio=Current assets inventory/current liability=($708422)/540=.53 times
3. Cash ratio=Cash/current liabilities=Total cash balance/total current liabilities
4. Working capital ratio=(current assets-current liabilities)/current liabilities
= (708-540)/540=.31 times
5. Return on investment or Asset=Net income / total assets=$363/$ 3588=10.1%
6. Return on capital or equity=Net income/Total equity=$363/$2591=14%

7. Gross margin =Gross profit / sales=$ 691/$ 2311=29.9%

8. Profit margin=Net profit /sales=$ 363 /$ 2311=15.7%
9. Break even point=Revenue-Expenses=0

3 D 1 Analyze business performance using ratios and accounting information including

budgets, profit & loss accounts and cash flows:

Profitability measures are intended to measure how efficiently the firm uses its assets and how
efficiently the firm manages its operation.
We can analyze a business performance or results through financial statements ratio

analysis,

trend analysis, cross-section analysis and others accounting information including budgetary
analysis, profit and loss accounts and annual cash flows interpretation.
To analyze business performance, business organizations extensively use different ratio analysis,
financial and managerial accounting tools. Tesco Plc. a billion dollar retail business operating
around 11 countries provides profit & loss statement, statement of financial position and cash
flow statement for investor for making investment decision. in Profit and loss account,

Sainsbury plc. Show that around 58000 million dollar revenue for ending year 2015.
Long-term solvency ratios are intended to address the firms long run ability to meet it
obligations or more generally, its financial leverage.
Short-term solvency ratios as a group are intended to provide information about a firms liquidity
and these ratios are sometimes called liquidity measures. Liquidity ratios are particularly
interesting to short-term creditors. Financial managers are constantly working with banks and
other short-term lenders.

The future cash flows of J Sainsbury plc. Determine the firms performance for maximizing its
profitability and wealth.

4. Understand the principles of managing and leading teams in organizations

4.1 Stages of team development:
A team can be defined as a small group of people with common or contemporary skills to share
responsibility to achieve a specific performance goal. Team is a association of two or more
person in an organization to achieve a joint purpose or objective (Griffin, 2006).
These stages of changes are as follow
Forming this stage team members meet each other, share background, establish rules and
relation.
Storming: In this stage a team leader must resolve conflict, bargain compromise and delegate
responsibilities.
Norming:
At this stage team members feel comfortable with their roles and responsibilities.
In this stage team members become inherent to abide by teams ground roles. They begin to
understand their respective roles and responsibility and forsake personal interest.
Performing:
In this stage which can be defined as very high level of functioning focuses on the goal as a
team. Team members become amicable to each other and trust each other which enable a team to
solve any conflict. In this stage resources are allocated effectively and process are perform
productively to achieve final goal. The team reach to the performing phase when members start
to work hard, interact with each other to achieve team goal

4.2 An analysis to determine own and others roles within a team:

People orientated group includes coordinator who helps every one focus on their task and can be
excessively controlling,

team worker who cares individuals and the team, investigator who

explores new ideas and can be good networker. Thought oriented group includes plant who
solves difficult problems but poor in communication, evaluator who can see the big picture and
specialist who has expertise knowledge in key area. Team performance can be improved
dramatically by understanding team roles. (Dr Meredith Belbin, 2006) observed for many years
that people in a team trend to assume different roles.
4.3 Three motivation theories:
Dozens of motivation theories have been proposed over the years. Motivation provides the
required strength to the team members to achieve organizational goals. Social scientists have
been studying for decades to find different way to motivate make a change in behavior to achieve
goals and objectives effectively Three of them are as follow;
Maslows hierarchy theory: According to the theory one must have a good health, safety
relationship before doing the best one can perform. In workplace employers need to be aware
about other aspects of employees outside the work to get the best out of them.
Herzbergs two factor theory: Federick Herzberg in 1950s developed a motivation theory
named Herzbergs two factors theory. He found two factors which motivate and inspire
employees to work are as follow.
Motivator factors: Motivators factors inspire employees to work hard with full dedication which
includes career progress, recognition and enjoying works
Hygiene factors: In the absence of these factors, dissatisfactions and lack of motivation may
arise. These factors contain salary, company policies relationship with managers and co-workers
etc.
Theory X and theory Y:

Douglas McGregor in 1960 formulated theory X and theory Y. Theory X assumed that average
human beings have an inherent dislike of work and tries to avoid it. It also assumed that average
human beings want to be directed and they desire security above all. Theory Y , on the other
hand assumed that exposure to physical and mental efforts to work is as nature as play. It also
assumed that control and punishment are not the only way of getting things done by employees.
Job satisfaction may result in greater commitment to the organization.

4.4 Types of leadership style:

Leadership style of the manager and leaders varies according to organizational needs and
perspective. A wide range of leadership style exists in the work environment. The organizational
culture and goals determine which types of leadership style best fit for the organization along
with considering both advantage and disadvantage of respective leadership style. Some of
leadership style is discussed as follow:

4D1 Different types of leadership style:

Laissez-Faire style: A laissez-faire leadership lacks of direct supervision of

employees and fails to provide regular feedback to those under his supervision.

Autocratic style: The autocratic leadership style allows managers to make decisions
alone without the participation of others.

Participative style: Its known as democratic leadership style, participative

leadership values the opinion of team members and peers, but the responsibility of
making the final decision rests with the participative leader.

Transactional style: Managers using the transactional leadership style receive certain
tasks to perform and provide rewards or punishments to team members based on
performance results.

Designing strategies for developing informal coaching skill is very important. Team leadership
coaching is less expensive than private coaching but both are important. Peer coaching is often
initiated within programs at management institutes and is a very helpful and less expensive
alternative to simple individual coaching. Informal coaching skills can be developed through
diplomacy and tactfulness of a leader. A leader must have to be diplomatic and tactful.
Diplomacy helps to take proper decision on right time. It helps managers/administrative officers
to be concern about their own interest. Diplomacy is an important quality of a leader (Griffin,
1990). A leader needs to develop communication with others. He/she has to maintain good
relationship with people.

4 M 1 why it might be appropriate to use different leadership and motivational styles in

different situations:
If a manager wants to motivate each and every employee in the organization, he or she may need
to apply different motivational styles as well as different leadership styles in distinct situations.
There have a heterogeneous types of employee worked within a company and they have some
distinct needs and wants. Organizational solvency is also a consideration for applying motivation
theory to an employee. In the current circumstances, participative leadership style brings
organizations speed.
Motivation is the key for increasing employees productivity. J Sainsbury PLC designs jobs and
job characteristics to empower its employees. Empowering employees and creating equal
opportunity to prosper is the prominent approach in motivating employees. Even various
business models are formulated for empowering employees and generate a sense of ownership
thus ensure high level of commitment and motivation. Flexi time, workers allowance in
determining work time also ensure high level of motivation

4D1 how motivational theories used to motivate Employees:

J Sainsbury PLC designs jobs and job characteristics to empower its employees. Empowering
employees and creating equal opportunity to prosper is the prominent approach in motivating
employees. Even various business models are formulated for empowering employees and
generate a sense of ownership thus ensure high level of commitment and motivation. Flexi time,
workers allowance in determining work time also ensure high level of motivation,
Understanding how to apply motivational theories in the workplace can take your leadership
skills to the next level. Managers can motivate an employee using the classical theory, the X&Y
theory, Modern motivational theories.
Motivational theories attempt to explain what motivates people to behave the way they do.
Motivational theories can be applied to workplace settings to through light into why some people
work harder or are more committed than others, which can lead managers to understand how to
motivate each employee to perform at peak levels. Motivation provides the required strength to
the team members to achieve organizational goals. Social scientists have been studying for
decades to find different way to motivate make a change in behavior to achieve goals and
objectives effectively. Dozens of motivation theories have been proposed over the years.
Designing strategies for developing informal coaching skill is very important.
4 D2 the impact of different leadership styles on employees:
Democratic leadership which is opposite of autocratic leadership provides employees to
contribute in company decision making. A feeling of ownership and being accomplishment are
generated in employees mind. Moreover other types of leadership like transactional and
translational readership also used to pursuit certain objective. J Sainsbury plc widely use
participative leadership in different level of management to motivate employees.
The effect of leadership styles on employee performance has increased in the recent times. The
traditional concept of personnel administration has gradually replaced with the Human resource
management (HRM).This give importance to the strategic integration of new leadership styles
into effective management of employees performance. Different leadership styles are used that
fit to employees on the basis of amount of directions, empowerment and decision making power.

A leader must have to be diplomatic and tactful. Diplomacy helps to take proper decision on
right time. It helps managers/administrative officers to be concern about their own interest.
Diplomacy is an important quality of a leader (Griffin, 1990). A leader needs to develop
communication with others. He/she has to maintain good relationship with people.

The Human Resources Department

5.1 Different functions carried out by the HR department of a business:
The main function of HRM department is thus recruitment of employees. HR department
measures the vacancy in different department and take necessary steps such as job advertising,
applicant screening, interview and selection of prospective candidates.
5.2 Key features of employment legislation:
Employment Right Act provides a set contractual right to employees like minimum wage,
protection against unfair dismissal etc.

Working Time Regulation Act provides employees

working hour guideline and ensures holiday times. Moreover Working contract Act, Sexual
Discrimination Act, Disability Discrimination Act and others employees protection act are
formulate for establishing better employer and employee relationship. Over the set of legislation
regarding employer and employee relationship, work term and security have been developed
around the world to establish better work environment.

5M1 Benefits of employment legislation to employees and business:

In UK we can see that employee legislation can help employees but it also increases costs and
adds to the many burdens that businesses face. J.Sainsbury PLC designs jobs and job
characteristics to empower its employees. They can join in the bargaining trade unions for their
rights and minimum wage level and compensation. Business also gets benefits from the
employment legislation by getting incentives from the regulator such tax incentives. Designing
strategies for empowering others is crucial. We had taken many strategies to empower others
during our work period. These strategies are helpful to execute plans effectively. It develops self-

consciousness becoming more conscious of my shortcomings and growth opportunities as a

leader.

5D1 Impact of employment legislation on businesses in a country:

The employment regulations are imposed burden on the businesses. Small firms are felt to be
particularly seriously affected. It is argued employment legislation raises firms labor costs and
adds to their administrative burdens. The effects on small firms may be particularly acute for
reasons including their limited administrative resources and their economic vulnerabilities.
Leader follower relationship is crucial for any organization. Although in UK business
organizations persistently complain about the burden of excess employment legislation, J
Sainsbury plc is very careful in confirming legislation regarding employees right. J Sainbury
plc. are operating many countries around the world and employing more than 10 million
employees. Tesco create an image in UK retail market as both customer and employee oriented
retailers. As legislation regarding employment are confirmed, employees working in Tesco get
satisfied and work in more productive way.

6. Understand the importance of customer service to organizational success

6.1 Impact of customer service on business success:

As customer satisfaction is the key to the growth of the business, it also ensures sustainable
growth of organizational performance. Customer satisfaction with the customer service also
encourages employee to be satisfied with their works and get recognized what they have done
which lead to less employee turnover. Providing expected customer services to the diversified
customer of a business helps to build organizational branding which ensure growth of the
business.
6.2 Benefits of customer profiling:
Customer profiling is a very necessary resource in market research and development. It helps
marketers to design marketing strategy and take effective programs. Customer profiling helps
business to establish better communication with customers and realize their demand into market
offerings. Customer profiling is necessary for target marketing and improve understanding of the

market and its changing aspect. So customer profiling is necessary for overall business success
(Chen & Popovich, 2003). It may provide immense benefit to the businesses which are as
follow-

a)
b)
c)
d)

It helps to understand untapped market potential.

Helps to improve targeted market
Choosing better site to deliver services and products
It helps to reduce competition and increases profitability.

6 M1 the impact of customer service on business success:

J Sainbury always gives customer service. They are ready to provide all types of customer
services. It helps to understand untapped market potential and also helps to improve targeted
market. Choosing better site to deliver services and products
It helps to reduce competition and increases profitability. In the previous explanation it is clearly
analyze the impact of customer service for the businesss future success and survival. A profile of
key customers which includes information regarding customer desire and expectation helps
business to discharge their services to those customers effectively. Though initially it takes some
hurdles to know about customer buying behaviors and attitudes but it may provide immense
benefits for J Sainsbury PLC.

6D1 how customer profiling is used to help deliver targeted customer service:
In that case J Sainbury takes all the necessary steps. A profile of key customers which includes
information regarding customer desire and expectation helps business to discharge their services
to those customers effectively. These customers profiling can be used to know the potential and
existing needs and willingness. Your customers are broken down (segmented

into groups of

customers sharing similar goals and characteristics and each group is given a representative with
photomap name and a descriptions. .
A customer profile is a simple tool that can help businesses better understand current and
potential customers, so they can increase sale and grow their business. Customer profile is

collection of information about customers that help determine why people buy or dont buy a
products or services.

Conclusion:
This report contains several issue regarding how business operates and different aspect of
business management which can help manager to make effective decision.

Business

environment is dynamic in nature. Changes in business organizations create both opportunities

and threats. A successful business always try to adapt with the changes occurred in business
environment. Consumers taste and behavior also change with the rapid change of technology.
Change is an inherent facet of business environment. Flexibility in business operation is the key
for ensuring long term sustainability.

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