Advantages and Disadvantages of Different Types of Business and Organizational Structures

This essay discusses the advantages and disadvantages of different types of businesses, including sole trader, limited company, and partnership, as well as the comparison and contrast of organizational structures, such as tall and flat structures. It also covers various business functions, including production, human resource management, and operations, and their impact on functional management activities. Additionally, it explores organizational culture and its positive cultural impact on the success of the organization.

Essay

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
TASK 3............................................................................................................................................4
TASK 4............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business refers to an organization that is having various industrial, commercial and
professional activities. In this, there are many types of organizations like Limited company, sole
trader and partnership company that have their advantages and disadvantages. In this essay, there
is a discussion about various advantages and disadvantages of different types of business which
includes sole trader, limitd company and partnership. There is also a comparison and contrast of
organization structure which includes tall and flat structures. There is also discussion about
various business function like production, human resource management, operations and their
impact on their functional management activities. It also includes organizational culture and its
positive cultural impact on the success of the organization. It also provides some examples of
industry practices from different types of organisations (Symons, (2017)).
TASK 1
The limited company refers to another type of business structure which help individual to
separate their business entity. In this type of business, stakeholders and owner are liable and
wear risk in their investment where they keep their personal asset protected. This one is refers to
tax-efficient business structure where it has limited liability to stakeholders and owner of the
business. It is separate legal structure and contain different advantage and disadvantage. It is
difficult to establish and includes complex account within the business. There is no need to
include count of accountancy where the company needs to hire a various employees to conduct
their business. River Island is an example of limited company. Partnership refers to a relationship
within two different individual who get agree to share their profit with their business partner in
which they are working all together. In this type of organization involves two or more than two
person to run a business. This includes various advantages and disadvantages to business. There
is a requirement of many financial resources to expand their business (Yeboah, (2021)). There is
a requirement of many skilled person due to the involvement of many individual within business.
Due to structure of the organisation it is easy to manage the business and easy to manage and
establish. There is a disadvantage that this type of business have an independent legal identity
and their partners are liable to the liabilities. There is a disadvantage that such type of company
have some limitded sources of capital and to restained growth in the comparison to corporate
along with limited company. Example of a partnership company is Social Chain.Sole trader

refers to a self-emplyed person who can run and own the business as an individual. This
individual is legally responsible for the debts and losses of the business. This tyupe of ownership
leads to unlimited liability to the owner (Duru, (2017)). This includes differtn advantages and
disadvantages. When talk about the advantage it includes that this is the easiest to establish due
to no requirement of huge capital. Owner have the authority to control over all the business-
related decision. In this type of business, owner have the risk that is regarding loss in business.
There is also a disadvantage that there is limited profit for the business. It is also difficult to
manage all the functions of the business by an individual. One of example of this type of sole
trader is Novus Accountancy Ltd.
TASK 2
Tall and flatter structure within the organization is a structure that includes various level
of management whereas in the organizational structure of tall and vertical have a main chain of
command where CEO of the company have the control on different level of management. Flat
and horizontal organization structure includes some level of management within the organization
where employees are involved in decision making. Big organizations have complex
organizational structures that have a long chain of command. US military is an example of an
organization who has various members within the organization and includes long chain of
command that refers to tall organization (Tilleard, (2021)). There are different management layer
which is between employee and upper management. Tall organization has number of employees
who report to each other where management provides safe supervision to employees. Flat
organizational structure have few numbers of management in comparison to flat organizational
structure. There is short chain of command which is highly effective within an organization.
Such type of organizational structure empowers their employees and provides some sense of
responsibility along with autonomy in business. Employees get more encouraged within flat
organizational structure to work effectively and can resolve various issues within the
organization. There are various new organizations to focus on innovation generally preferred flat
organizational structure. For example- Tesla is an organization that uses flat organizational
structure within company which can allow to find and think a different type of solution for their
issues that provides high benefit to the business (Hepworth, (2021)).

TASK 3
Human resource management refers to an important function of the business organization
who have the responsibility to hire, maintain and motivate their employee within the enterprise.
This organizational function deals with various organizational issue that is related with
employees like compensation, hiring, administration, communication, motivation and
development. This organizational function have the responsibility to satisfy the employee by
providing various reward or compensation and motivate them to work effectively for better
growth of business and to achieve business objective. HRM of Google adopting a various
strategy that allows the employees to get satisfied. It also helps to increase their engagement due
to the satisfaction and engagement of employees that allows the organization to retain their
employee within their business. Production is the main function to any organization which is
related with goods and services in a business organization. It allows generating goods and
services which is in demand to satisfy customer needs and their want (Delisle, (2020)). This also
allows the organization to meet their requirement and exchange goods or services for some
amount. Production function should be effective within the organization which can adopted by
utilizing optimum resources to generate maximum profit and reduced in cost of the company.
Unilever Plc is an example of an organization that adopts an effective production strategy that
help to reduce their wastage and increase profit for the organization. Marketing refers to a
different activity which is related with delivering of values, exchanging, creating and
communicating with others. Marketing is an important function of business that is capable of
creating value for customers demand and identify to satisfy their need for longer period.
Marketing function also help business organizations to maximize business profit. In absence of
this function no organization is capable to sell its product effectively and make profit. MG Motor
is the company who use effective marketing strategy to increase their customer base and their
satisfaction to make large profit for the business (Akita, (2021)).
TASK 4
Organizational culture defined as a collection of expectations, value, practices that can
inform and guide different members of team to take action. Business culture is responsible for
environment development within the organization which can help to perform various activities to
run the business effectively. This also helps to create an impact for the success or failure of the
company. Cultural organization is highly effective and important within the hospitality industry.

It helps to develop and manage value, vision and mission together to implement in effective
manner within business. Organizational culture refers to a catalyst that influences employees
behaviour to motivate them for delivering of their effective services within an organisation. This
can help to boost organizational production and provide high efficacy to the business. Marriott
Hotel is an example of better cultural environment where employees behaviour towards their
guest are polite and gentle (ABUBAKAR, (2018)). This create positive environment and allow
guest to stay in hotel and enjoy their hospitality. Business culture also provides understanding
about influence of the decision-making process that is generally shared between companies
members or stakeholders. Organizational culture define culture of belief, behavior and ethics
which should be involve in business. It is related with feelings that generally develop and put a
place during particular program. It influence success with an organization and allow to perform
effectively. Best hospitality organizations are the one who have their quality culture and guided
through believes in refer to the culture. Every member within the business are committed to their
work and focus on their performance to improve quality of services and contribute to achieving
the company objective. Marriott Hotel have a better understanding about need and want of the
customer which allow them to minimize their error and focus on quality delivery of services
(Amirkulov, (2021)).
CONCLUSION
From our discussion, it can be concluded that there are various type of business which
includes limited company, partnership and sole trade and many more. These are the business
who have various advantages and disadvantages. There are different type of a structure along
with their define roles and responsibility within different situation. There is a discussion about
different type of organizational structure which includes flat and tall organization along with
different command off chain. There is also different management layers within business and
various function which allow the organisation to survive for long term through delivering their
services effectively and making large profit. In any organization, every function have their
importance that allows large profit by managing business properly. This function may include
production, marketing, Human Resource Management and finance.

REFERENCES
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