Understanding Business Organisations in Tourism and Hospitality Industry

Understanding
Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
A business is a entity, firm and organisation that are engaged in commercial, industrial
and professional activities. Businesses can be profit and non profit based organisation depends
on purpose of the organisation. There are different types of business organisation such as sole
proprietor, partnership and limited companies brief discussion about how advantages and
disadvantages of the business can affect the company. (Mayer, 2018)There are different
organisation structures that help business for there smooth operation such as tall and flat
structures, with comparison and contrast of both in reference to industry. In addition to this there
is a discussion about different types of business function and their impact on management
activities on organisation, functions such as, human resource management, production and
operations. At last brief about organisational culture and how positive culture impact on success
of organisation. In addition to these a reference to the tourism and hospitality industry.
MAIN BODY
A business is a separate entity engaged in industrial, commercial and professional activity
either for earning profit or as a non-profit organisation. It is of different types such as sole
proprietorship, partnership and public limited company. A sole proprietor business is wholly
controlled by one person, the pros of this type of business firm are it is easy to establish as it
require less paperwork to start a sole proprietor firm and low start-up cost as compared to other
form of business. (Calabrese, Cowling and Liu, 2022) The cons of sole proprietorship are
unlimited liability, as a single person is responsible for the debts of the firm and it is difficult to
raise fund because everybody wants to invest in a company because they have strong financial
records. One of the example in context to tourism is A to Z Minicabs.
Partnership business is a business where two or more people come together to earn
profits. (Chión, Charles, and Morales, 2019) The advantage of this type of business are, partners
can be combined expertise and distributed work load as there is involvement of more than one
person who are experts in their own field due to which the work is divided and the disadvantages
of business are, that the involvement of more than one person also leads to some disagreements
at some situations. One of the example with reference to hospitality is ZUMA.
A Public limited company is an organisation which is registered under companies act,
2013 and formed by minimum 7 members with a minimum paid-up capital. Some advantages of
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