Unit 13 - How Business Operate - Pearson BTEC Level 5 HND Diploma Health and Social Care - David Game College


Business environment includes external and internal factor that are very important so as to run a business in an effective manner. Therefore, it has a impact on the performance performed by the company (Sekaran and Bougie, 2016). In this current market area there are many companies that are evolving with innovative ideas. Hilton Hotel is a leading companies that provides services in the field of hospitality. The report will mainly focuses on various business agencies that are operating their company in different parts of the world. Elements that are essential for this are mentioned in this assignment. Other than this role of human resources department is also included in this assignment for having a better understanding of the roles and responsibilities which they perform.

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Task 1

1.1 Different types of public and private organization in UK

United kingdom is is a established company and comes under top most nation in the world. There economy is very strong as compared with other developing nations. Both private and public organisation are operating their business in a proper manner and they are working for giving excellent services to all the citizens present in the United Kingdom. Some of the public companies includes British Petroleum, Burberry Group PLC, Rolls Royce and many more. All these mentioned organisation perform their act so as to give excellent quality products through which customers can fulfil their demands and wants as per their needs (Bryman and Bell, 2015).

Private companies works for attaining profits but they also give services so the people can enjoy their services and facilities. This includes some of the companies like River Island, Merlin Entertainment etc., Although both public and private companies provides the same services but difference between them is of their sizes, structure and scope that make them different from one another.

1.2 Various structure within business in UK

For achieving different objectives most of the organisation perform their task effectively so as to establish themselves unique form others. Different kind of structures are mentioned below:

Sole trader: Individual who comes under this work alone and operate their business without any help (Murillo and Vallentin, 2016). This includes small departmental stores, plumper, health and safety etc., therefore, they take all the profit and losses on themselves and they are solely responsible for that.

Partnership: Under this, two or more people merge so as with their own concern in order to get maximum profits form their business. Whether the company faces loss or profits it is shares between both the partners.

Limited Liability company: In 1977, this concept was formulated with the help of which companies sign n agreement under which all the laws and legislation are included. It includes details about the sharing of profit, liabilities and basic information (Santos, Pache and Birkholz, 2015).

1.3 Impact of local and global economic environment on business operations

In business operations there are various factors that can influence or hamper the functioning of a firm internally or externally. This includes economic, social, technological, political and environmental. Hilton hotel is renowned company that is situated in United Kingdom. It has around 570 hotel plus resorts in different parts of the world i.e. approximately 85 countries along with some territories. Economical and environmental factor are the most important element that must be considered by the organisation so that negativity can be converted into positive outcomes. Therefore, the main motive of the company is to provide excellent services and facilities to its end customers. As a result they are sustaining a better position at market area.

Task 2

2.1 Importance of accounting for business success

Accounting is considered as an important element for an organisation and perform various functions like keeping up a record of all the funds that have been utilised by the organisation in given period of time (Prajogo, 2016). Transactions made by the company is recorded by the department of finance. Therefore, Hilton Hotel has prepared a statement in which cash inflow and outflow is mentioned. This is helping organisation in providing related information to Stakeholders and investors so that they can have an overview about the plan which the firm is trying to implement in their business operations. Some of the advantages are mentioned below:

Analysing the performance of business: Continuous monitoring of the performance of the activities is helping Hilton hotel in developing a balanced sheet which they use for further proceedings. Other than this, it is assisting them in evaluating all the profit and loss they have gone through in one year or financial year (Cohen, 2017).

Managing and monitoring of cash flow: It is important that superiors of an organisation have a control over cash flow so that it cannot be utilised in negative manner. For this, it is required that company creates a balance sheet that they can optimise for carrying out their function effectively.

5.1 Different functions that is carried out by the department of Human resource management

HR department in Hilton hotel is helping the organisation in giving basic facilities that are needed by the organisation. Therefore, they are conducting recruitment and selection process in order to hire eligible candidates for the company. Along with this, they provides basic training programmes that worker of the firm are optimising so as to increase their knowledge in order to work effectively. Managers of the Hilton Hotel are going through the activities in order to get knowledge about the needs and wants of employees with the help of which they can implement right strategy at right time. Apart from this, superiors of Hilton Hotel are helping the organisation in maintaining a healthy relation at workplace by resolving their conflicts and issues which employees are facing. All these process will gradually help the organisation in increasing the productivity and profitability at the same time (Goffee and Scase, 2015).

5.3 Key features of employment legislations

In order to run a business in an effective manner Government of a nation formulates some or the other laws that are to be followed by the company. This will assist them in operate the whole business in a proper manner. Hilton Hotel is following all the rules and regulations that are giving them maximum benefits. This includes legislation like discrimination, harassment, act for equality and many more. The laws which are incorporated by Hilton Hotel is providing better outcomes. For example: they are hiring individuals purely on the basis of their talents and skills they acquire. Along with this, company is providing facilities and services related to health and safety like they are insurance is given to employees if he/she face some serious injuries or death while working in the organisation. But if any company doesn't follow these rules than they can face some legal actions or penalties that are fixed by the regulatory bodies (Morecroft, 2015).

Task 3

3.1 Accounting Workshop 

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: Form the above mentioned table it can be evaluated that, the company's total revenues was 14,57,000 and there net income was 16,8000. Apart from this, their interest expenses was -29000.

Task 4

4.1 Analysis to determine own and others' role within the team

A proper interaction with employees is necessary so that their performance and nature towards their organisation can be evaluated. According to the situations it is necessary that a effective team is maintained so that they roles and responsibilities can be given (Buhmann, 2015). Henceforth, every individual is important in a team. Being a part of the squad I have learned a lot many things and it is helping me in performing the task in an effective manner. My prime role is to show appropriate path to new employees so that they can perform their task in a proper manner. For this, first I set a clear vision and target so that employees have an ideas about the outcomes they want to achieve. Other than this, I am taking opinions and views from them in order to get a best possible way through which aim can be achieved. Along with this, it is helping me to have a better relation with all the members in the group.

4.2 Steps for developing a team

For getting maximum results it is important that Hilton Hotel is engaging all its employees in their work so as to achieve their set targets and objectives in given period of time. There are various steps that are mentioned below for developing a effective team:

Forming: It is the first step in which team is developed as per the perception or thought that are shared by individuals. Therefore, people who share the same concepts are included in this (Wajdi, Ummah and Sari, 2017).

Storming: This is the most complex and difficult part of this step as chances of conflicts are higher as compared to other steps that are mentioned. State of competition develops because of which clashes amongst employees can be seen.

Norming: By coming to this step all the abilities and skills are recognised by other members of the team. Through this, a healthy relationship is maintained between workers.

Performing: Under this step, team starts performing the activities and superiors assign the task accordingly. This help the team to attain the objectives in an appropriate manner.

Adjourning: It is the final stage, under which employees complete the task by using effective tools and technologies through which they can complete the work in given time period.

Different motivational theory

Maslow's Need hierarchy theory: This is considered as an important it look out for basic elements that are essential for fulfilling the basic requirements i.e. physiological, social, esteem, safety security and self actualisation needs (Zander, McDougall-Covin and Rose, 2015).

Herzberg's motivation hygiene theory: While working in a company it is important that firm focuses on two factors and provide facilities accordingly.

Various kinds of leadership styles

There are different leadership styles which organisation can follow so as to guide and lead the team in an effective manner and some of them are given below:

Autocratic: It is classified as one of the rigid leadership styles amongst all as under this, leaders try to encourage their employees to achieve the targets in limited period of time. This process is very effective for excessive growth in business operations.

Democratic: Hilton Hotel has adopted this style and they are giving chance to every individual so that they can present their views in front of superiors. This can be helpful in making appropriate strategies and plan of action (Sekaran and Bougie, 2016).

4.3 Appropriate use of different motivational theories in business activities

Most of the organisation uses motivational theory in order to encourage and boost the morale of an individual and for this it is essential that company accept all the changes this will help them in achieving the set targets and objectives. Hilton Hotel is optimising these different theories for motivating their workers like Maslow theory is used for performing the task according to the basic requirements. Other than this, Herzberg's hygiene theory is utilised for giving a healthy workplace where employees can sit and perform the task effectively.

4.4 Impact of various leadership styles on employees

Various leadership styles are used by the manager of Hilton Hotel so as to have an effective team who can work for a common goal. Other than this, they are using these leadership style for maintaining a healthy environment at work place. Company is mainly using democratic style of the leadership and employees who are working in the organisation is happy while working with the company (Bryman and Bell, 2015).

Task 5

6.1 Impact of customer service on business success

To sustain a better position in the market area it is important that company,manufacture products according to the needs and wants of consumers. Along with this, it is essential company provides services accordingly so that they can win the loyalty of people this will help them in minting a better position at market area.

6.2 Benefits of customer profiling to a business

Maximum number of advantages are present at the market area what important is the methods that will be incorporated by the organisation for gaining more profits. For knowing the choices and taste Hilton Hotel is conducting surveys and it is giving them competitive advantages as they are providing services accordingly (Murillo and Vallentin, 2016).

You may also like to read: Unit 2 Business Future Assignment R/508/0486 Regent College

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As per above report, it can be concluded that organisation exist in dynamic environment which consists internal and external components which directly or indirectly impact on business operations. It is necessary that management frame appropriate objective and goals are formed in according to market conditions. Superior uses motivational theories and leadership style to increase morale of members and dedicated towards job. Team development helps company to have adequate manpower so that activities are executed appropriately. 

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  • Bryman, A. and Bell, E., 2015.Business research methods. Oxford University Press, USA.
  • Buhmann, K., 2015. Public Regulators and CSR: The ‘Social Licence to Operate’in Recent United Nations Instruments on Business and Human Rights and the Juridification of CSR.
  • Cohen, T., 2017. HTM Departments Should Operate like a Business.Biomedical instrumentation & technology. 51(4). pp.301-305.
  • Goffee, R. and Scase, R., 2015.The Real World of the Small Business Owner (Routledge Revivals). Routledge.
  • Morecroft, J. D., 2015.Strategic modelling and business dynamics: a feedback systems approach. John Wiley & Sons.
  • Murillo, D. and Vallentin, S., 2016. The business school’s right to operate: Responsibilization and resistance.Journal of business ethics. 136(4). pp.743-757.
  • Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in delivering business performance.International Journal of Production Economics. 171. pp.241-249.
  • Santos, F., Pache, A. C. and Birkholz, C., 2015. Making hybrids work: Aligning business models and organizational design for social enterprises.California Management Review. 57(3). pp.36-58.
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