Understanding Business Organisations and Their Environments

Understanding Business Organisations
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Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
Explanation of Various types of business structures .............................................................3
TASK 2............................................................................................................................................4
Difference between tall and flat organisational structure.......................................................4
TASK 3............................................................................................................................................5
Various business functions performed at the primary organisation.......................................5
TASK 4............................................................................................................................................5
Define organisational culture and impact of positive culture upon the success of the
organisation............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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Introduction
Business environment comprises of two basic terms i.e. Business and environment.
Business is referred to an economic activity performed with an intention of earning profits.
Environment is basically the surroundings of the business that have an impact over the
operations of the business organisation. It is very important to have an in depth understanding of
the business (Audretsch and Belitski, 2019).
The report revolves around the Business concepts wherein the primary organisation that
is considered is Unilever. Unilever is considered a UK based multinational organisation that
deals in consumer goods. The headquarters for Unilever are established at London.
TASK 1
Explanation of Various types of business structures
Business is referred to an economic activity performed with an intention of earning
profits. The business activity comprises of selling and buying of goods in order to earn profits.
There are various types of business structures such as sole proprietorship, partnership and limited
liability corporation. The various types of business structures are explained below.
Sole Proprietorship business is a type of business organisation that has a sole or single
authority to control the business and its operations in the business organisation. The sole
proprietorship business structure comes with its pros and cons. The pros of sole proprietorship
are that the owner is only person to enjoy the profits of the business alone. The sole
proprietorship business is easy to operate and comprises of lesser complications. Another benefit
of sole proprietor business is that it is taxed only once under the income of the owner. The
various cons of the sole proprietor business is that the owner is the solely responsible and bearer
of the losses as well as risks. The business can lack expertise while performing various business
functions. Further the proprietor has limited liability which means that in order to pay off the
debts the proprietor may have to sell off his personal assets (Rye, 2020). An example of sole
proprietorship business can be any local grocery store in the surrounding.
Partnership business is type of business structure which is owned and operated by two
or more people. The business has a contract signed among the partners that is also known as
partnership deed. The partnership business also has its various pros and cons. The benefits of
operating as a partnership business are that the risks and losses are shared among the various
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