Understanding Business Organisation: Advantages, Disadvantages, Organisational Structure, Business Functions, and Organisational Culture

This report discusses the advantages and disadvantages of different types of business organizations, including sole proprietorship, limited liability company, and partnership. It also covers organizational structure, including tall and flat structures, and business functions such as marketing, finance, and HRM. Additionally, the report explores organizational culture and its impact on the company. The report uses Marks & Spencer's as an example throughout.

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Understanding
Business Organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation is the assembling or managing the general managing the structure
and functionality of the working areas in order to generate revenue and earn profit. It is an entity
which is made in order to carry different commercial practises through which the revenue
generation and the productivity can be enhanced. Their are generally different legal forms which
are given in business organisation they are like sole proprietorship, limited liability company,
corporation and partnerships. All these helps in managing the different business practises and
also regularise to maintain the productivity of the company with general advancement. The
organisation chosen in this report is Marks & Spencer's which is a multinational company deals
with clothing, food products and various home appliances. Headquartered in London, UK
(Carmichael, 2018). This essay will provide different advantages and disadvantage of business
organisation. And will also explain the organisational structure and the culture which are used by
the company and their practises.
MAIN BODY
Every individual is trying to be innovative and also trying to start their own business
practises in order to make income and also to formulate and setup a proper organisation through
which growth can be regularise. Some of the different kind of business practises are like, Sole
proprietorship, which is the business in which the single individual carries out all the
management and operational activities. These are the kind of business practises which are
handled by sole owner. All the major rights and the responsibilities are managed by that person.
The advantages of all such organisation are like, all profit can be kept for there own self, the
decision making power is with the sole owner and such kind of business can easily be started
with limited funding(Cropley, 2019). Disadvantages of these practises are considered as all the
responsibility are managed by them, unlimited liabilities arises with authority and the financial
management is tough at times for all such companies. Example. Freelancers carry sole business.
Limited Liability company considers the hybrid business practises which perceives the legal
entities through which all the responsibilities are managed by the partners. This is the private
company which have the members, individuals and all the foreign entities through which the

formation and manageable activities are incorporated. Advantages of LLC are like, it has flexible
working, structure is manageable and simple and the income distribution and management is
easy. The disadvantages are like, perpetual succession is not managed, fund raising is confusing
and there are so many imposition fees which are applied on it. For an instance, River island is an
LLC. Other one is Partnership, as this is made by more then two individuals in order to manage
the profit and also to start a new business practises. Some of the major advantages are like, work
load is comparatively less in partnership then other organisation, financial responsibilities can be
easily managed without burden and partners can manage the work life balance. Disadvantages
are like, no surety for stability of such firms, their can be loss of autonomy as no decision is
imposed by single person and conflicts can also be arise. For an instance Yoomoo is a partnership
company (Farhan, Jasim, and Al-Mamoori, 2019).
Tall organisational structure covers different kind of levels in the company and also
manage tiers of work and levels. These are generally being used by the large group of
organisation which cover the arrangements with different departments and also try to make the
systematic arrangements of such business practises. They carry the management with proper
strengths and also motivate the employees towards better working techniques. They focus on
working in an ongoing process rather then changing the working style. For example BBC is well
known company which use this tall organisational structure (Klamet, 2017). Flat organisational
structure are like, one box organisation which considers out to manage all the work by the heads
of the departments. They try to manage the communication with all the employees and analyse
the potential and the skills of the employees working in the company. M&S use the flat
organisation structure, the comparison between the two structure are like, the tall considers out
to be hierarchical process in which information flow from one to another whereas flat provides a
open communication for all, tall is a time consuming process whereas in flat structure all the
flow of information is just buy the managing of time. The cost which is being framed for tall is
high then flat structure. And the flat considers to be wide managing areas rather then tall as it is
comparatively narrow structure. The morale and the working in all the flat structure is high as
they manage all the work with transparent communication and in taller organisational structure it
can be at time difficult to known about the though process of employees or their work force as
senior management is not that connected with all.

Business functions provides all the activities which are managed by the companies or the
enterprise through which they yield income and also manage the production and growth. This is
the systematic approach used by the different departments in the organisation in order to manage
the growth and profitability. Some of the important departments are like Marketing, finance,
HRM and many more (Karpagam,and Velankanni, 2021). Marketing is a technique which is
adapted and used in order to manage and execute all the process for managing the plans, pricing,
and distribution of products and ideas. It considers different techniques through which the
management of efficient practises in business can be made. The impact it create on functional
management is it helps in evaluation of the requirement in the market and also manage the work
and the revenue generations. Impact it make on employees is marketing frames the methods on
which they can focus on making the services. The M&S invest a lot on their marketing team as
they helps in framing and knowing about the strategies which are required in company. HRM is
the most important areas which helps in hiring, selection, recruiting of the candidate who are
eligible for the company. The impact it frames on functional management is it helps them out
to gain skilled workforce so as to achieve the goals and the targets. The other impact it create on
employees is it helps in making the training session so as to make them confident and also to
make the employees capable of work (Ogbonna, 2019). The HR department of M&S manage a
training session through which they make there employees aware about the working pattern so as
to implement proper strategy. Finance is an important department which tries to manage all the
budgets for the company and also try to frame the budgets through which company can earn
profit. impact it frames on functional management is that it helps in providing the specific
amount of funds and budgets through which company can able to analyse and maintain the
budgets and their general resources. Impact it frames on employee are it helps in managing and
making the resources to be framed in proper manner, this also provides a satisfaction and more
the finance work properly it will help in managing the increment. M&S has a team which use to
manage all the resources and finance in order to complete the goal and the objective of the
company.
Organisational Culture is the method which helps to know about the ways in which the
company should behave and manage their strategies. It promotes the culture and the effective
values through which all the shared belief, communication and the general methods can be
analysed. This is mainly the positive attitude which any of the company apply in their work in

order to make it a better and standard in growth and productivity. M&S is a well known
company and they create a positive environment in all the areas and try to impose the methods
through which all the cultural and the positive nature is being attributes(Gutiérrez, 2020). For
managing the organisation culture it is important to implement the ethical and the legal conducts
in their company that generates a positive attitude in the employees and also reinforce the
methods through which the growth can be made. Thus, culture is the prominent element and it
legates the nature and the advancement through which all the company can make their
employees feel confident in working areas and also make them to focus on the growth and the
general areas.
CONCLUSION
From this above report it is concluded that, business organisation frames the management
and the working of the company through which all the function can be implemented. There are
different type of business like sole proprietorship, LLC, partnership. Sole traders are the single
individual carry their own business have advantages of getting ll profit for their own and
disadvantage like unlimited liability. Tall organisational structure is a kind of hierarchical
structure which manage all the top to bottom flow of information. Further HRM plays an
important role in managing, recruiting and training the employees and organisational culture
provides a positive environment in the company by ethical and legal conducts.

REFERENCES
Books and Journals
Carmichael, D.G., 2018. Organisations as systems–difficulties in model development and
validation. Civil Engineering and Environmental Systems, 35(1-4), pp.41-56.
Cropley, D.H., 2019. The Modern Age (1880–1950): Expansion and Conflict. In Homo
Problematis Solvendis–Problem-solving Man (pp. 111-123). Springer, Singapore.
Farhan, S.L., Jasim, I.A. and Al-Mamoori, S.K., 2019. The transformation of the city of Najaf,
Iraq: Analysis, reality and future prospects. Journal of Urban Regeneration & Renewal,
13(2), pp.160-171.
Gutiérrez, R., 2020 Leadership, organisational alignment, and partnerships against economic
exclusion: What do uncommon success stories have in common?. In Base of the
Pyramid Markets in Latin America (pp. 67-86). Routledge.
Karpagam, K. and Velankanni, R., 2021. Impact of Organisational Culture on Organisational
Values-A Review of Literature. EFFLATOUNIA-Multidisciplinary Journal, 5(2).
Klamet, A., 2017. Make or buy? A qualitative analysis of the organisational handling of digital
innovations in the German book publishing sector. Publishing Research Quarterly,
33(1), pp.41-55.
Ogbonna, E., 2019. Can organisational culture explain labour market disadvantage of ethnic
minorities?.