Different Types of Organizations and Their Impact on Business
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This report discusses the various types of organizations and their impact on business profitability and productivity. It explores different organizational structures and the factors that affect them. Additionally, it explains the concept of PESTEL analysis and how it helps in understanding the external factors influencing the business environment.
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Table of Contents INTRODUCTION...........................................................................................................................3 Section 1..........................................................................................................................................4 Describe various kind of companies and how they work in effective manner...........................4 Section 2.........................................................................................................................................5 Examine different type of companies which operates business effectively..............................5 Section 3........................................................................................................................................6 Critically analysis of different organisation structures and explain various factors which affects the business probability and productivity of company...................................................6 Explain the external factor and how they affect business environment so conduct PESTEL analysis......................................................................................................................................7 CONCLUSION...............................................................................................................................9 REFERENCES...............................................................................................................................9
INTRODUCTION In present scenario, organisation performs a various activities in order to attain goal and objective of company. It uses a tools and techniques to smooth way perform a operations on the basis of different size and shape along with different motives and purpose(Enneking, 2017). It also helps to improving profitability and productivity of company. Business faces cut throat competition in the market so accordingly plan their policies and strategies to grape opportunities at marketplace.It has been organisation established their own vision, mission, objectives and targets of firm. In this report, study about different types of organizations established in order to gain profitability and satisfy the needs and wants of customers. Along with this various organizational structure whichfollowedbyenterprisesonthatbasisaccordinglyadaptingfunctionsso influencing profitability of the firm. PESTEL is effective tool which helps to analysed the external enviorment. Section 1 Describe various kind of organisation in order to effectively accomplished work. In present context, There ample number of companies which operates their business function in order to achieved a goal and objective of company. These kind of organisation establish for similar kind of objective to earn profits and it's adding value in our economy. There are so many organisation run their business so mention below. Micro or small business-:Micro small business organisation structure refers to those which only 9 or less employees(Hussaini, 2019). These kind of firm operates business functions very small level which comes under small start up and dealing small products which known as hand made items. It turnover very small in numbers such as less than two million so fall in under micro or small business enterprise. It is owned by single person who owner of company and individual controlled and monitored business function. In these company centralised decision system because single person takes all types of decision related to business. Single person considered as sole traders, self employed and family business.
Medium size business-:These kind of businesses includes slightly larger size from small and micro business because utilise more resources in term of human resources and involves morefunds to start business. This business model earns more profit rather than small or micro business so income as thirty-six million approx and number of employee are working 250 employees.It establish to enhancing profitability and achieved objective of company. They work together to achieve common purpose of company(Corazza, 2019). Large size business-:Large scale business refers to those which including organisation in order to investing huge amount of capital and required able and capable human resource in order to produces goods and service at large level. They owned company by mutual understanding and set as mission and vision of company. It involves in various activities related to business and at least have 5000 employees are worked. They profit turnover approximately 1.5 billion euros which is more than other business model. Hence, there are various kind of business which works in systematic manner in order to increasing profitability and productivity of company(Wilshusen, 2019). Section 2 Examine different type of companies which operates business effectively. There are so many firms which operate a business in order to gaining profitability in future. Sole traders, partnership, limited liability business and cooperative firm all are considered as they owned way of working and gaining competitive advantages. They utilise various process in order to smooth functioning of business activity. Similarly, various companies which are mentioned below.ï‚·Sole proeritership-:These kind of business model which owned by single people and monitored and controlled are the business function effectively.It also known assole proprietorship, individual entrepreneurship where the handle all business operations performed by individual or a single person. They single personresponsibletoallthingsandindividuallydecisionmakingnoone interference in that there are not required any kind of legal documentation. Individual person adapting working style they want to do work in systematic
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manner. There ample number of example of sole trader like saloons, carpenters, painters and many more.ï‚·Partnership-:These kind of business forms which run by business two or more individual. They are set up business to achieved a common purpose and mutual understanding. It way of working in very effective manner and achieved business objective in order to collaboration and coordinated work with each other. Partner liable to share profits and loss of the company accordingly equally contributes capital in business. They are so many legal obligations sign each partners on documentation process because it is contract or agreement between partners. Limited liability business-:It is form of business structure which refers to limited liability company (LLC) when company not earn adequate profit becomes failure to run business so there owners are not personally liable for that. Owners only pursue a limited liability in order to paying sort of debt, amount invested in firm and loss of company(Pham, 2020). It also shareholder has been limited liability because unpaid amount if any on the shares. Organisation considered as included both type of features are partnership and sole proprietorships firm. Under that various organisation structure so discuss below.ï‚·Public limited liability business:It is another form of company where buy and sell of securities in market in order to achieved objectives of company. It is market where number of buyers and sellers gathered at market place because traded on stock exchangeso it is conveniently buying and selling of securities. Public company issue share and bonds and inviting applications so people spend lot of money to purchase the shares and stock. These kind of company follow rules and regulation which developed by government of country along with to known the guideline about financial position(Oluoch, 2016). ï‚·Cooperative enterprises:It is another form of business enterprises in order to fully private business. It includes managed business opertaion by those people which utilising products and services. In addition to this, it is structure formulated onthebasisofcustomersneedsandwantswhichareessentialtofulfil, objectives are predetermined due to accomplished proper time frame. Along
with, on that basis organisation using effective strategies and policies in order to achieved specific purpose. All of the above concept, it analysis the various business entity and how they performed business functions for achieved common purpose. These includes operates business operations onthebasis of rules. Regulation andnorms (Nallusamy, 2016). Section 3 Critically analysis of different organisation structures and explain various factors which affects the business probability and productivity of company. Organizational structure-:It is structure whichrefers to how business activities such assupervision, task allocation, as well as work together in effective manner so easilyattaintargetsofcompany.Thesekindofbusinessstructureincludes management team which play vital role in decisions making process. It is flexible and dynamic form so easily adapting changes on the basis of requirements, goals and targets. It developing new policies and strategies in order to smooth functioning of activities. In addition to this, There are different kind of organizational structure so which are discuss below. Functional organization structure-:These type of an structure refers to those which including company because superiors properly division of work and assign to the team members. It involves various departments in organisation they perform their functions on the basis of their roles which are predefined roles and responsibilities of each department as well as employees performed activities on the basis of knowledge, skills and capabilities. It followed procedure which work in vertical structure every department with the roles decided by top level management. All the business functions linked to each other and work together. This structure performed activities in effective manner and highly influences the profitability due to work with coordinated. Therefore, it consider to properly maintaining flow of information with the team members so reducing confusion.(Jammulamadaka, 2017). Divisional organization structures-:It isdifferent type of form which known as divisionalorganizational structureit includes various forms in order to companies
perform their functions under different division. Each division considered as class in ordertoessentialresourceswhichhelpstosmoothmanufacturingprocess.In organisation divided into different division such as human resource department, sales department, finance department, customer service department and many more. These kind of organizations structure work in very systematic format and accordingly plan their strategies and increasing productivity of company. It includes provides cooperation with each other and clearly communicated policy according to the requirements(Garrigues, 2018). Explain the external factor and how they affect business environment so conduct PESTEL analysis. Pestle is the model which helps to analysis to a company because examine macro environment which are affecting organisation business. It is tool and framework which evaluates different business condition and identifying weaknesses and threat for the company with help of these elements. There are ample numbers of elements which are mentioned below. Politicalfactors-:Politicalfactorswhichincludingthatfactorsaboutthe governmentsmakingpolicies,rulesandregulationstowardsinterventioninthe business. It may includes various different policy, rules and regulations in different overseas market along with trade restrictions. It involves various factors which helps to organisation easily assesses conditionshow governmentsinfluences their productivity and profitability. These factors necessary for organisation on basis organisation taking important decision related to business operations and functions.(Hussaini, 2019). Economic factors-:Economic factors play a vital role to analysis this factor which are impact on business operations and productivity of company. It involves in economic factors like growth, inflation rate, deflation rate, tax rate and interest rate and manymore.Organisationevaluatesthesefactorsbecauseithelpstodetermine revenue and profit for the company. Social factors-:Social factor is important factor because it includes values, beliefs and attitudein the context of different individuals. On that basis of these factors organization helps to easily understanding the consumer needs and requirements. Thesefactorshelpstodeterminethehealthconsciousness,attitudes,different
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perception of customers and distribution of the market because satisfied the needs and wants of customers. Technological factors-:In present context,this componentrefers to those which drastically environment change very fast and also affect the business process of company. Noe days organization utilize different technology in order to using advanced technology regarding manufacturing of products and services effectively. Most of the company utilize advanced technology to increasing productivity of company(Enneking, 2017). Environmental factors:Environmental factors plays crucial to because impact on goodwill and sustainability of organization. It includes various aspects in order to wastage of disposal, recycling of products and biodegradable Organization adapting those techniques which cannot harmful for environment like recycle of products and utilize biodegradable. All the activities affect the business goodwill and image and it helps to developing brand image at the marketplace(Corazza, 2019). Legal factors:This factors plays vital role becauseit including legislation, consumer rights and employment contract act which all are the affectsbusiness model and government prescribed about rules and regulation so it is fulfilled by company as per norms. Organization bound to followed all the conditions and rules because it helps to easily conducting the business. CONCLUSION From the above report it has been concluded that, it included various types of companies have different objectives, rules and size. Company establish which has own motive and goals as well as adding value in our economy along with it has also been examined that there organizational structure in order to their smoothly flow of business activity and easily achieving organisation goal and objective of company. It includes organization adapting effective structure which result as their policies, strategies and according to the needs and wants. Further, it has also been analysed the PESTEL model because their factors affects the performance of company.
REFERENCES Books and Journals Corazza,L.,2019.Thestandardizationofdown-streamedsmallbusinesssocial responsibility(SBSR):SMEsandtheirsustainabilityreportingpractices. InSocialEntrepreneurship:Concepts,Methodologies,Tools,and Applications(pp. 670-685). IGI Global. Enneking,L.,2017.Payingthepriceforsociallyirresponsiblebusiness practices?.AktuelleJuristischePraxis/PratiqueJuridiqueActuelle,26(8), pp.988-997. Garrigues, E., 2018. A review of industrial aeroelasticity practices at dassault aviation for military aircraft and business jets. Hussaini, A., 2019. Organizational management through strategic planning and financial practices:Anempiricalassessmentfrombusinessfirmsof Kuwait.Management Science Letters,9(5), pp.713-726. Jammulamadaka, N., 2017.Indian business: Notions and practices of responsibility. Taylor & Francis. Nallusamy, S., 2016. A proposed model for sustaining quality assurance using TQM practices in smalland medium scale industries. InInternationalJournalof Engineering Research in Africa(Vol. 22, pp. 184-190). Trans Tech Publications Ltd. Oluoch, J.O., 2016. The impact of cash management practices on performance of SMEs:AsurveyofSMEsinEldoretCentralBusinessDistrict.Journalof Economics & Finance,7(6), pp.01-07. Pham, H., 2020. Impact of human resource management practices on enterprises' competitiveadvantagesandbusinessperformance:Evidencefrom telecommunication industry.Management Science Letters,10(4), pp.721-732. Wilshusen, P.R., 2019. Environmental governance in motion: Practices of assemblage andthepoliticalperformativityofeconomisticconservation.World Development,124, p.104626.