Understanding Business Organisation - Essay Guide 2021/2022

This essay guide provides an in-depth understanding of different types of business organizations, their structures, functional areas, and organizational culture. It also includes a case study of Premier Inn Hotel. Suitable for students studying business courses in college or university.

Level 0 Guide - Essay
2021/2022.
UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
Paragraph 1 – task 1.........................................................................................................................1
Paragraph 2- task 2...........................................................................................................................2
Paragraph 3 – task 3.........................................................................................................................3
Paragraph 4- task 4...........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business is the legal entity which is being formed by the individual for managing the
various operational actives with the core motive of generating higher profits and revenue. This is
being carried out for the general consideration of having business to be operated for the higher
sales and good brand image (Ramori and et. al., 2021). There are various types of business which
are working on specific legal forms and these are sole trader, partnership, company and
corporation. All they are working for the fuller utilization of resources so that they can enhance
their productivity of the company. The premier inn hotel is the chosen organisation form the
hospitality sectors for this essay. It is the luxurious multinational hotel which is operating their
business about 700 hotels in different location with 50,000 rooms. Moreover, they are
emphasising on offering the best accommodation, food and beverage and other related services
to guest.
Paragraph 1 – task 1
Sole trader is the type of venture which is being owned and controlled by the single
individual and all the profits and losses in being belongs to them only. This is not necessary to
register their venture as they are earning just for their own survival not for the higher revenue.
All the assets and the liabilities are connected by the venture as they are not separate from the
owner itself. Advantage of operating business as the sole trader is that they are not separate legal
entity, all the assets and liabilities is the part of the personal income of the person who is
operating business. All the decisions are being made with the consideration of generating
revenue for the easy survival and happy life of the individual. Disadvantages are, all the
operating decisions is being carried out by the management is resisting to the particular aspect
which resists the formation of the limited skills (Klever, Visser and Engelfriet, 2021). In order to
operate such type of venture is limited. The suitable example for such type of venture is Verdant
Leisure.
Another form of business is partnership, It is the legal agreement which is being
establish when two or more people come together with aim of running a business venture with
the consideration of generating high profits so that they can move towards higher success and
growth. All the profits and loses is being shared on the agreed basis and all the tax which is being
applied on the business is paid by all the partners itself. Advantages are, with the help of formal
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agreement, all the business activities can be operated in an appropriate manner with less
interventions of government to the limited company as they are having written or verbal contract
among the partners. Disadvantages are, partners do not have separate entity for their profits or to
own their own venture, they tend to share the profits and losses on the agreed basis and all the
tax is being paid by all the partners which is being implied on the business (Beynon-Davies,
2021).
Corporation is the legal entity which is separate from their owners and the main
consideration of the them is to earn higher profits and revenue due to separate ownership. Some
advantages for such type of business are, they can protect their personal liabilities due to
individual ownership and they ca easily access their capital with right approach (Yang. and et.
al., 2020). Disadvantages for the business are, the application process for the company is time
consuming and this is more expensive type of venture which also includes the new start-ups.
Paragraph 2- task 2
Flat organisational structure is the structure which is being carried out by the firm who
are having various departments and all the work is being divided in to small groups so that the
work can be done by the specialised individual in order to gain effectiveness in them (Will,
Gossel and Windscheid, 2020). In this, employees can rightly share their opinion and suggestion
and which is being analysed by the manager before making the final decisions. This also helps in
getting innovation within the departments so that company can meet the competitive advantages
in the target market. Premier inn hotel is using flat organisational structure which make easy
functions within the organisation and employees can have the open communication among the
all level of management. Generally, there are limited levels of management is formed for running
the success business venture.
Tall organisational structure is also known as hierarchical organisational structure in
which all the task to be performed is being divided among the employees according to their skills
and abilities so that the right work can be accomplished by the specialised person (Ramori and
et. al., 2021). All the decisions are being made by the top level management and employees are
not allowed to give their suggestions or feedback for any change within the departments. They
just have to follow the instruction received by their seniors only. Generally autocratic leader use
this type of structure so that all the work can be accomplished win a well-defined manner. Which
also helps in having the effectiveness within the organisation. Marriott is the largest group of
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chain hotel in which effective guidance is given to the employees in order to complete the
assigned task to them so that they can get higher results within the hospitality sector.
When comparing with these two, tall organisational structure is the time consuming and
leads to create conflicts at workplace which leads to have slowdown in the sale of the company.
Flat organisational structure has various structure in which all the work in being divided into
small groups. This is time saving and initiated the open communication among the employees
(HOFEREK, 2020).
Paragraph 3 – task 3
Functional areas are the various units which are working for offering the quality
services to their guest and to make their experience better. Finance is the department which is
concerned for procuring and allocating the funds in the right direction so that they work can be
performed with the better approach (Kapoor and et. al., 2021). They usually decide the budget of
the company in which they tend to operate all the business activities by which they can ensure
higher production and sales. Housekeeping is the unit which is engaging in preparing room and
also responsible for aesthetic up-keeping of the premises so that guest can have the wonderful
stay. Premier inn hotel is managing the best services so that they can ensure higher profits and
growth within the organisation.
Human resources department is responsible for hiring the potential candidate who can
perform their job role by making fuller utilization of their skills and capabilities by which they
can contributes towards higher profitability and growth (Hatakka,Thapa and Sæbø, 2020). The
main consideration of the employees is meet the demands of their potential customers. In relation
to Premier inn hotel, they are giving advance training to their employees by which they can
enhance their skills by which they get effectiveness within the operations which can leads to
higher success and growth.
Paragraph 4- task 4
Organisational culture is the significant aspects which helps in developing the
necessary traits which can leads to success of the enterprises. An organisation can have the right
approach by which they can understands the values, expectations and practices of the employees
in order to guide them in the direction (Chevrollier and et. al., 2020). Positive organisational
culture impacts positively on overall performance of the company. This also helps in retention of
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the employees which given their best in attaining the organisational goal. It is the main element
by which they can attract the young talent who is going to have the better approach within the
organisation and also leads to meet the competitive edges in the large market. This also make
employees trust worthy and build integrity within the organisation by which they can have the
effective working environment.
Impact of positive culture are It attract and retain the talented employees, when the
employees are getting positive working environment so that they tend to make fuller utilisation
of their skills in order to achieve the predefined goal of the company. They are also working with
the full efficiency by which they can move towards high success and growth (Abdulrasool and
Turnbull, 2020). Another it improves the productivity, as the employees is getting positive
working environment then they work with fuller potential by which they can enhance the overall
efficiency of the business. In this stage, they usually work for the main motive that they can
understands the needs and wants of the potential customer in order to sustain in the market.
CONCLUSION
It is concluded from the above report that there are different types of business which is
being operated in the business environment which includes are sole trader, partnership and
corporation. Their main motive of the company is to generate higher revenue and profitability as
they are aimed to enhance the standard of living of people. Moreover, it is necessary to have the
effective management and take the right decisions in the hospitality sector with the help of
housekeeping, food and beverage and front office. Further, it is concluded that the positive
culture of company mainly helps in improving the productivity of the employees and also attracts
and retains the talented and skilled employees.
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REFERENCES
Books and Journals
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governance model for universities: applied research based on the COBIT
framework. International Journal of Electronic Banking, 2(3), pp.237-265.
Alshawaaf, N. and Lee, S.H., 2021. Business model innovation through digitisation in social
purpose organisations: A comparative analysis of Tate Modern and Pompidou
Centre. Journal of Business Research, 125, pp.597-608.
Beynon-Davies, P., 2021. Business Analysis and Design: Understanding Innovation in
Organisation. Springer Nature.
Breese, R., Couch, O. and Turner, D., 2020. The project sponsor role and benefits realisation:
More than ‘just doing the day job’. International Journal of Project
Management, 38(1), pp.17-26.
Chevrollier, N. and et. al., 2020. The predictive value of strategic orientation for ESG
performance over time. Corporate Governance: The International Journal of Business in
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Field, L., 2020. Organisational learning: basic concepts. In Understanding adult education and
training (pp. 159-173). Routledge.
Hatakka, M., Thapa, D. and Sæbø, Ø., 2020. Understanding the role of ICT and study circles in
enabling economic opportunities: Lessons learned from an educational project in
Kenya. Information Systems Journal, 30(4), pp.664-698.
HOFEREK, F., 2020. Analysis and proposals for optimization of transfer pricing illustrated on a
specific business organisation (Doctoral dissertation, Vysoká škola ekonomická v
Praze).
Kapoor, K. and et. al., 2021. A socio-technical view of platform ecosystems: Systematic review
and research agenda. Journal of Business Research, 128, pp.94-108.
Klever, S., Visser, M. and Engelfriet, A., 2021. Planning and organisation. In Digital Marketing
Fundamentals (pp. 564-621). Routledge.
Ramori, K.A. and et. al., 2021. Lean business models in healthcare: a systematic review. Total
Quality Management & Business Excellence, 32(5-6), pp.558-573.
Rojas-Lema, X. and et. al., 2020. Performance measurement in SMEs: systematic literature
review and research directions. Total Quality Management & Business Excellence,
pp.1-26.
Wannags, L.L. and Gold, S., 2020. Assessing tensions in corporate sustainability transition: from
a review of the literature towards an actor-oriented management approach. Journal of
Cleaner Production, 264, p.121662.
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Will, A., Gossel, B. and Windscheid, J., 2020. Eyes on tech! Media entrepreneurship and the
relevance of technology in business models. In Media Management Matters (pp. 188-
203). Routledge.
Yang, R. and et. al., 2020. Public and private blockchain in construction business process and
information integration. Automation in construction, 118, p.103276.
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