Understanding Business Organisation Essay - Desklib

This essay discusses different types of businesses, organisational structure, impact of functional management activities, and how positive culture can impact the success of the organisation. It includes examples and references.

International Studies

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Different types of businesses:.................................................................................................3
Compare and contrast organisational structure:.....................................................................4
Impact of functional management activities on the organisation:..........................................4
How positive culture can impact the success of the organisation:.........................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Business is the activity or entity that is focused in several industrial, commercial as well as
professional practice which is done for the motive of earning money. There are various types of
the businesses such as limited company, partnership firm, sole trader etc that owns their own
perks and disadvantages. In this essay it will conclude comparison and contrast of structures of
the organisation and it involves several divisions of the business that makes a impact on practices
of the organisation (Volik, 2019). There are various division or functions of the business which
are marketing, finance, sales, human resource management, production, operations and several
others. It consist of research of different culture of the firm and its optimistic affects on the
growth and success of the company. Additionally, it involves different examples of activities of
sector in the various organisations.
TASK
Different types of businesses:
Sole trader is the type of business that is owned by a single person and is convenient to set up as
it requires low cost in doing it as compare to other forms of businesses. In this type of business it
involves owner's unlimited liabilities. Its one of the advantage is that it can be very easily
establish as it does not require large amount of investment with having proper control over
decision making and profits of the business. Apart from this one of the disadvantage of this type
of business is that it gives limited profits but has unlimited liabilities. There are many various
examples of this type of the organisation such as Novus Accountancy Ltd.
Partnership is also a type of business that involves two or more person who are owns the
business as according to their agreement also the profit sharing capital investment is also
depends on the agreement between the partners. Its biggest advantage is that it gives support in
terms of financially, physically and emotionally to each partner for the smooth working of the
firm whereas, in it liabilities are unlimited and partners are only liable for them. Social chain ltd
company is the example of this type of the organisation(Tai and Ku, 2017).
Moreover, Limited company is also a type of a business that involves a person to make a
separate and different entity of business and in this type of business stakeholders and owner has
to take all the risk and are the liable to their failures but also ca keep their assets which are not
linked to the company protected. Main advantage of this type of business is that it is tax efficient

business model and also there is limited liability of the owners whereas, it is very complex in
establishing a limited company. So the example of this type of business is River Island.
Compare and contrast organisational structure:
Tall and flat structure of business in one of the best method which involves several level of
organisational management. It refers to the company in which top most authorised person or
main chain of command is for the company's CEO who manages various levels of management.
A flat and horizontal business structure refers to few levels of management in a company that
involves many people in the decision making in the operations. For example, UK army has
various member in its organisation that includes a big line of command, so this type of
organisation is tall organisation. In this organisation there are several levels of the management
team that is between seniors and juniors. As a tall company has low number of workers who
reports or are responsible to each other in the supervision of of their leaders or managers and this
organisational structure has low numbers of management levels in comparison of flat
organisational structure that also has lower chain of command. In this structure of business it
authorise or empowers workers to the sense of the autonomy as well as responsibility in the
business. Where as, in flat organisation structure work force are highly motivated in accordance
to accomplish their task with the support of the other employees which helps in resolving
conflicts in the company. Several new organisation that are concerned on creating a new
products and services are favoured to utilise the flat organisation structure. An example of this
structure is that Tesla is that company that is utilising flat business structure in their firm that
assist them to analyse and understand the several method to the issues that is beneficial for their
growth of their business (Mili, Gharbi and Teulon, 2019).
Impact of functional management activities on the organisation:
Human resource management is one of the essential function of the organisation that works in
motivating employees, hiring, recruiting, maintaining peace among workers etc. and it also deals
with several kinds of challenges that are linked to the worker in the firm such as, compensation,
administration, communication, motivation and development. It assist in enhancing motivation
and satisfaction of workers in the organisation and encourage them to enhance their productivity
to accomplish the objectives of the business. For example, Microsoft's human resource
management is adapting various strategies that can make their workers happy and satisfied and
also enhance their productivity. It also helps them in retaining their employees for long term with

them only. Marketing states to several methods that is linked to creating, exchanging and
supplying the products or services which contains value to others. This business function helps in
creating products and services of worth for their consumers by understanding and satisfying
them and also increase new consumer base for them. It assist organisation by enhancing their
sales and increasing their revenues. Without the help of this division company is incapable to
generate revenue for the firm. For example, KIA motors is adopting this successful strategy in
order to raise their new consumer base which can leaded to increase in the revenue of their
consumers in the business (Mathu, 2018).
Production refers to the manufacturing of goods and services from the raw material to finish
product. It is very essential department of the organisation because as it assist them to enhance
their production that supports firm to supply those finish goods to their consumers in exchange
of money or anything which contains similar value to the organisation. So effective
manufacturing can assist organisation to maximum utilisation of every resources to enhance their
production that can lead to reduce in the cost and increment in the profits. For example Unilever
Plc is adopting various effective strategies of production that assist them to eliminate wastage in
their organisation which ultimately lead to increase in the revenues of the firm
How positive culture can impact the success of the organisation:
Organisation culture means that the combination of practices, expectation, values that instruct
and provide guidance to several practices of the business that can make a impact on the failure
and growth of the firm. Affect of organisational culture is more essential in various sectors like
one of them is hospitality sectors. It is the aspect which is evaluated and maintained with the
objective of getting vision, mission and values which is executes by the various member of the
firm. For instance, it assists managers of Hilton hotel to adopt positive behaviour of the workers
towards their clients or guests as well as the suppliers which help in developing the optimistic
atmosphere that is needed by their consumers in their hotel (Андреева and Хрусталева, 2018)..
It is also giving the initial knowledge that is shared among tge various people in the
organisation. This culture is the set of ethics, beliefs and behaviours that is done in the firm. It is
linked to the aspects that is evaluated in the specific campaigns that can be there in the business.
It also influence the failure and success of the company and accordingly one of the best
organisation is hospitality sector is like having proper culture that us directed through belief. In

the organisational culture, each members of the organisation is focuses in the accomplishment of
their respective objectives that can improve their performance(Abdurakhmanova, 2020.).
CONCLUSION
From the above mentioned report it is concluded that there are several types of the businesses
such as sole trader, limited company, partnership etc. All these kinds of business has many
advantages as well as disadvantages for the firm. Company can also has various kinds of
structures that alots responsibility and roles to the people that is perfect for them. There are two
kinds of structures in the organisation like flat and tall which are having different chain of
command and levels. So all the functions and structures of the business is crucial for the long
term growth and earning of the company.
REFERENCES
Abdurakhmanova, G., 2020. Effective regulation of employment in small business. Архив
научных исследований, (11).
Mathu, K., 2018. Transforming South African public-sector supply chain using public-private
partnership business Acumen. Journal of Contemporary Issues in Business and
Government, The, 24(1), pp.23-35.
Mili, M., Gharbi, S. and Teulon, F., 2019. Business ethics, company value and ownership
structure. Journal of Management and Governance, 23(4), pp.973-987.
Tai, Y.M. and Ku, Y.C., 2017. From value generating to partnership creating: highlighting the
business-to-business information sharing service. International Journal of Integrated
Supply Management, 11(2-3), pp.217-235.
Volik, M., 2019, October. Features of the analysis of business processes of the company (on the
example of customer service in a travel agency). In Proceedings of the 2019
International SPBPU Scientific Conference on Innovations in Digital Economy (pp. 1-
6).
Андреева, А.А. and Хрусталева, Т.А., 2018. SOLE PROPRIETORSHIP IN RUSSIA AND
THE USA. In НОВЫЕ МОДЕЛИ РАЗВИТИЯ РАЗЛИЧНЫХ ЭКОНОМИЧЕСКИХ
СИСТЕМ (pp. 12-14).
(Abdurakhmanova, 2020.)(Mathu, 2018)(Mili, Gharbi and Teulon, 2019)(Tai and Ku, 2017)
(Volik, 2019)(Андреева and Хрусталева, 2018).