Understanding Business Organisation

Understanding Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
REFERENCES................................................................................................................................7

INTRODUCTION
When it comes to managing business there are different factors that needs to be
highlighted such as the organisational structure, the culture been practiced in an organisation
how it affects the human resource and the business success. Following a positive working culture
drives the human resource towards attaining efficacies and productivity at work. This report
briefly talks about the definition and outline of merits and demerits of different types of
businesses such as sole trader, partnership, limited company. The comparison and contrast of
organisational structures such as tall and flat structure of an organisation. Discussion about the
functional units of the business such as human resource management, production, operation et
cetera and how it impacts on the business performance and the human resource of an
organisation, how the positive culture affects a business success and organizational
performances. Where each and every discussion is briefly outlined by corporate examples to add
relevant information in real life examples (Aldous, 2018).
What is sole trader businesses - Sole trader are businesses that are operated by single owner who
owns the business and runs by himself/herself. The advantages of sole trader business are: In sole
trader business is the profit is being enjoyed by the single owner. The overall business cost for
capital expenditure of the business is all over minimum. The owner enjoys the privacy. The
disadvantages of Sole trading are: There is unlimited liability for debts, The sole trader business
has limited capacity in order to raise capital and The taxes of the business are to be beard by the
owner of the business, the life of the business is limited (Anitha, 2016). The examples of sole
trader businesses can be plumbers, hairdressers, electricians and other self-employed people.
What is Partnership businesses? Partnership business can be defined by such businesses that are
formed by a legal contract between two or more partners agreeing for sharing common vision to
operate the business activity and share its profits. One such example of partnership business is
“Pret a manger” which is a UK-based partnership business, headquartered in London, UK and
established in the year 1983. This business is famously known for offering food services to its
global customers (Beynon-Davies, 2021). The advantages in Partnership businesses can be:
Financing the business is more convenient with number of partners, The business losses are
shared among the partners and Collective decisions can be made. Disadvantages of partnership