Understanding Business Organisations and Their Environments

Understanding business
organisations and their
environments

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Types of businesses ....................................................................................................................1
Compare and contrast organisational structures.........................................................................2
Different business functions and the impact of their functional management activities on the
organisation.................................................................................................................................3
Organisational culture and explain how positive culture impacts on the success of an
organisation.................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisations refers to an entity whose purpose is to carry out commercial
activities. It is a process through which tasks gets divided into groups an delegation of authority
and responsibility has to be done. The aim of the entity is to make people work at their utmost
efficiency so that the organisation can achieve goals and objectives (Brewster, Mayrhofer and
Farndale eds., 2018.). The main purpose of an entity is to provide products and services to the
consumers in return to which they receive monetary benefits. The products and services of the
business provides value to he customers and because of that added value the consumers are
willing to pay prices which is the revenue of the company. In this report, types of business is
boing discussed along with the understanding of organisational structures. Furthermore, different
business functions and its impact on management activities along with organisational culture's
impact on success has been provided.
MAIN BODY
Types of businesses
Their are three types of business which are given below:
Sole proprietor: These types of entities are financed, controlled and managed by a single owner
and are generally small scale organisations (McGilvray., 2021). For example, Ma Bakery is a UK
based business providing various types of breads to its customers along with recipe courses.
Advantages:
 The formation of this type of entity is generally easier than any other form.
 They enjoy wide variety of government subsidies. Quick decision making because of full control of a single person.
Disadvantages
 These types of entities generally lack professional talent
 The owner have unlimited liability. Limited growth prospects.
Partnership: This type of entities involves more than one owner who are willing to do business
mutually (Mathieu and et. al., 2019). For example 909c is a partnership firm providing digital
marketing services to its customers.
Advantages
1