Understanding Business Organisation And Their Environments

This report covers analysis about different types of business structure and also about comparison between different organisational structures. The report explains about organisational culture and their impact on success of organisation. The report also consist of different business functions and the impact of functional management activities on organisation and on people.

Understanding Business
Organisation And Their
Environments

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1 ...........................................................................................................................................4
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................6
TASK 4............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business organisation is a term which is designed for purpose to focus on either
improving society or generating profit. These type of organisation also talks about structure of
business the process through which this structure helps in meeting out their goals There are
different categories of business organisation that relate to how business is established, owned and
operated. The report covers analysis about different types of business structure and also about
comparison between different organisational structures. The report explains about organisational
culture and their impact on success of organisation. The report also consist of different business
functions and the impact of functional management activities on organisation and on people.
TASK 1
Business can be defined as it is an enterprising entity or organisation which is engaged in
industrial, commercial or professional activities. This term can also be explained as it is kind of
organised efforts and activities of individual to produce and sell goods and services for purpose
of profit. There are different kinds of businesses which includes Sole trader, Partnership and
limited company.
Sole Trader: It can be defined as they run their business on their own and raises the necessary
capital, organises the business into structured manner. For example: Novus Accountancy
Ltd(Novus Accountancy Ltd professional services)
The three advantages of Sole Trader are, It is easier to form and organise a sole
trader's business. The other advantage is it is easy to manage and implement the activities of
small business. Apart from this, Sole trader also enjoys profits for himself and this profit motive
is an incentive to work hard.
Three disadvantages of Sole Trader are, it has unlimited liability and is also liable for
organisation's debt. The other advantage is it is very difficult for financing and business credit is
harder to procure. Apart from this, it's a challenging task to raise capital.
Partnership: It refers to formal kind of arrangement by two or more parties for managing and
operating business and share its profits. For example: Social Chain(Partnership business
structure)
Three advantages of Partnership are, it has large resources than a sole proprietorship so that
scale of operation can be enlarged.

The other advantage is that business is flexible and elastic which is free from legal restrictions on
it's activities. Apart from this,This kind of business supports in sharing the burden of different
kinds of responsibilities of business
Limited Company: A limited company refers to kind of general form of incorporation which
limits the amount of liability undertaken by company's shareholders.
Advantages of Limited Company are, it has separate legal entity. The other advantage is that
personal assets are in protected form. Apart from this, company has facility of free and easy
transferability of shares
Disadvantages of Limited Company are, it has long registration process and also requires lots
of steps to complete this process. The other advantage is that reporting requirements are very
complex in terms of nature. Apart from this, company needs lots of capital to establish, maintain
and wind up.
TASK 2
There are different kinds of structure at the organisational level which includes
functional, divisional, matrix and flat. There are two main organisational structure which
includes flat organisational structure and tall organisational structure (Canniford and Bajde eds.,
2015). The key difference between these two organisational structure is that tall structure has an
organisational structure with many levels of hierarchy whereas flat structure has limited number
of levels of hierarchy. Tall structure basically includes government agencies but in context of
UK country there is an industry which is named as HM treasury(Our organisation)It is the
government's economic and finance industry who maintains control over public spending which
sets direction for UK'S economic policy. For example, TESCO is a general merchandise retailer
which follows tall structure. It has been proved because the organisation is large and has multiple
layers within the hierarchy.
In case of flat structure, there is an organisation which is named as square space technology
which follows this particular type of structure and it is that type of company which is all in one
content management system(Check analytics from anywhere).It provides software as a service
for purpose of website building and hosting which allows user to pre-built website templates
(Carlton and Mills., 2017).

Under tall type of structure, they are equipped with narrow span of control where employees
report to their manager. In the case of flat type of structure, it has very wide span of control. It
isalso flexible in terms of nature as compared to tall type of structure.
The speed of decision-making very slow as it has many number of layers of management in tall
structure. The decision making under flat type of structure is responsive towards market changes
and also active towards their customers. Under tall type of structure, communication issues arise
more frequently and delays also have been observed in this type of structure whereas flat type of
structure have communication level is faster as compared to tall type of structure. It is the main
reason due to which they are motive active towards their market as well as to market. For
example, Amazon follows flat type of structure relative to other companies of this size.
TASK 3
There are basically three types of business function which includes human resource
management, production and operations. From perspective of business, human resource
management includes three major key activities i.e. staffing, employee compensation and
benefits. The basic purpose of HRM is to maximize productivity of an organisation by
optimizing the effectiveness of its employees. For instance, in terms of Astra Zeneca the basic
role of HR manager is that to implicate the findings that their organisation has retrospective
outlook of HRM strategies (Enyioko., 2016). They also generate more manpower for
organisation so that they can select talented individuals for their organisation. In case of
production department, it is necessary to consider that products should be produced in a right
direction and resources should be obtained in a sustainable and responsible way.
Production department has to set standards and targets for each section of production process so
that results can be achieved within a period of time. In terms of pharmaceutical industry, it is
very necessary to have transparency in terms of production process so that medicines and
vaccines should be prepared with proper ethics and authentic steps. Astra Zeneca company
employees have to follow strict norms and regulations so that they can ensure safety and efficacy
of the approved drugs to their customers (Jagnani and Achhnani., 2019). On the other hand,

TESCO is a general merchandise retailer company whose core business functions include
finance, administration, human resource, marketing and research and development function.
Main activities of finance department is to record all business transactions which measures
financial performance of TESCO(Functional areas in TESCO). In case of human resource
management where company make records of all their employees which they have in their
possession. This data is majorly protected by data protection act.
TASK 4
Organisational culture plays a very important role into world of business because it is
collection of values, expectations and practices that guide into positive manner. In terms of
pharma industry, culture that they have created is the perception that they put their commercial
goals above interests of governments, prescribers and patients(Our organisation). In pharma
industry, innovation culture plays a very essential role for success of an organisation where this
kind of culture leads employees towards higher job satisfaction, deeper employee engagement
and also contributes towards increased productivity (Maduku and et.al., 2016). Astra Zeneca
company has particular type of values, ethics, norms, practices and standards which includes
bioethics, anti-corruption, data transparency and responsible sales and marketing. Astra Zeneca
has it's focus towards adopting a sustainable mind-set which embraces their core values.
Astra Zeneca provides such kind of environment where employees feel comfortable in terms of
discussing about their ideas ofinnovation with other people so that further progression can be
done with respect to growth of products. Company also creates such kind of environment where
employees can express their point of views in a free manner. With such kind of support system it
will lead towards positive growth of an organisation.Astra Zeneca also focuses more on
transparency which supports for learning and development of employees, suppliers and partners
(Massa, and et.al., 2015). For example in terms of retail sector where TESCO is a general
merchandise retailer(Rewards and benefits).TESCO reward their staff by giving them fifteen
percent off after every pay day for a period of four days and ten percent on the rest of month on
most TESCO purchases

CONCLUSION
It has been concluded from above report that business organisation plays a very important
role in terms of further growth of a nation as well as of an organisation. Within business, there
are various kinds of functions which they need to follow to fulfil objectives of an organisation
which includes human resource management, operations which are important for proper
functioning of an organisation. There are different kinds of structure within business world
which includes flat and tall type of structure who have different ways of working in terms of
professional manner. Within business organisation, positive culture is a parameter which is
responsible for further development of an organisation. It has been find out that different
business structure has different way of working and functions to achieve final targets of their
organisation.

REFERENCES
Books and Journals
Becker, and et.al., 2017. Community energy and social entrepreneurship: Addressing purpose,
organisation and embeddedness of renewable energy projects. Journal of Cleaner
Production, 147, pp.25-36.
Canniford, R. and Bajde, D. eds., 2015. Assembling consumption: Researching actors, networks
and markets. Routledge.
Carlton, S. and Mills, C. E., 2017. The Student Volunteer Army: a ‘repeat emergent’emergency
response organisation. Disasters, 41(4), pp.764-787.
Enyioko, N., 2016. Marketing as a Primary Function of the Entire Organisation Based on
Contemporary Issues. Available at SSRN 2757270.
Jagnani, K. R. and Achhnani, B., 2019. Managing generation Y in the pursuit of creating an
effective organisation. Journal of Management Research and Analysis, 6(3), pp.150-
153.
Maduku, and et.al., 2016. Understanding mobile marketing adoption intention by South African
SMEs: A multi-perspective framework. International Journal of Information
Management, 36(5), pp.711-723.
Massa, and et.al., 2015. Developing a sustainability report in a small to medium enterprise:
process and consequences. Meditari Accountancy Research.
Online
Ourorganisation,2021[Online]Availablethrough:<https://www.astrazeneca.com/our-
company.html/>
Functional areas in TESCO ,2021[Online]Available
through:<https://studymoose.com/functional-areas-in-tesco-and-oxfam-essay/>
Rewards and benefits,2021[Online]Available through:<https://www.tescounderwriting.com/join-
us/benefits-rewards/>
Our organisation,2021[Online]Available
through:<https://www.gov.uk/government/organisations/>
Check analytics from anywhere,2021[Online]Available
through:<https://www.squarespace.com/website-marketing/>
Novus Accountancy Ltd professional services,2021[Online]Available through:<https://bungay-
suffolk.co.uk/directory/novus-accountancy-ltd/>
Partnership business structure,2021[Online]Available
through:<https://www.business.qld.gov.au/starting-business/types-legal-structures/business-
structures/partnership/>