Understanding Business Organisation and Environments

This essay analyzes the advantages and disadvantages of different types of business organizations such as sole trader, partnership, and limited company. It also evaluates the tall structure of Tesco and the flat structure of Valve. Additionally, it explains the impact of organizational culture, human resource management, production, and operations on the functional management activities of companies like Marks and Spencer, Tesco, Valve, Adnil Creations, Pret A Manger, and Anglo American Plc.

Understanding Business
Organization
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
The aim of the essay is to understand business organization and their environments.
The essay will analyze advantages and disadvantages of three types of business that are sole
trader, partnership and limited company which will help in providing the information of three
different companies well associated. Comparison of tall structure of Tesco with flat structure of
Valve will be evaluated which will provide essential information of both the structures. Human
Resource Management, Productions, Operations will be explained along with impact of their
functional management activities on Marks and Spencer and people within organization. Further,
organizational culture will be explained and evaluated for how positive culture impacts the
success of the organization and this will analyze the scale through which all perspectives are
known at expanded basis or success and growth of the organizations which will be taken in the
below essay. The essay will thus be focusing on four tasks.
MAIN BODY
Task 1
Advantages of Sole Trader Company – The major advantage of sole trading business is that it
is easy to form. There are many profit incentives in Adnil Creations Company which helps in
providing many benefits to company (Cribb and et.al., 2019). Adnil Creations Company is
simple to manage which helps in knowing basic forms through which all possible facts and
information is managed in an easy manner.
Disadvantages of Sole Trader Company – Adnil Creations has very less capability which
makes company less effective and efficient. There is limited borrowing capacity which company
has (Cudby, 2018). The company has less borrowing capacity which is major drawback of
company.
Advantages of Partnership – Pret A Manger provides better working environment within
organization. Morale support is being provided to the employees within organization. There is a
lot much of cash savings in the partnership business (Butenko and et.al., 2019). Potentiality of
tax benefits also increases. More opportunities for business are also provided effectively and
efficiently.
Disadvantages of Partnership – Pret A Manger incurs future selling complications in being
with partnership business. This is major disadvantage. There is lack of scalability in the business.
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Apart from this, there is loss of emotional issues (Brodie, 2018). There is loss of autonomy
which creates problem in the business at large scale.
Advantages of Limited Company – Anglo American Plc has free and easy transferability of
shares. There are dual relationships which are observed in company helping to expand the
business (Daroń, 2017). Uninterrupted existence is the major phase in which company is taking
the concern of how the things are being productive for them.
Disadvantages of Limited Company – Anglo American Plc has compliance formalities which
makes business difficult. There is division of ownership in business which creates difficulty in
business (Andonovski and et.al., 2018). The winding up of the company is major problem and
disadvantage for which all aspects are known at large scale in the business environment.
Task 2
Tall Structure of Tesco Flat Structure of Valve
1. Tesco follows tall and hierarchal structure because the
company is big and offers many layers of management
which provides individual place in the business to each
and every segment of business (Puustinen and et.al.,
2018).
2. Tesco has fewer employees reporting to the manager
and then the manager provides the supervision to the
employees’ at large scale.
3. There are several management layers which help in
defining the front – line managers and upper
management systems.
1. Flat structure is defined as organization structure with
no or lower level of hierarchies. There are no levels
between the managers, staff and executives at large
scale.
2. Flat structure of Valve has comparable size with no
levels of employees and managers link between in the
company (Lin and et.al., 2018).
3. There are no front – line managers and no guidance
for the employees within Valve.
Apart from this, the flat and tall structures of both organizations are taken into
consideration as how effective and in efficient manner scale of structure is being differentiated.
There are different structures which companies follow. The tall structure is one of effective
structures as this helps in providing guidance to employees through senior and upper level
managers. This is more convenient to employees as they are guided and provided information of
what work is to be done. Flat structure within organization is of less use as there are almost or
similar to no levels which are being framed in company (Lee, 2021). There is no level of
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management to guide employees of organization at large scale. The major benefits which are
being seen in tall structure within organizations like Tesco is that company is favourably seeking
growth and development through this. Whereas disadvantage of Valve following flat structure
proves to be in lesser growth than Tesco having tall structure.
Task 3
Human Resource Management – The human resource management of Marks and Spencer has
impact on the functional management activities in organization and people within. As there are
changes in policies and practices which are being framed by HRM of company, functional
management activities within company are also changed and the people who are working in the
company are also affected as this hinders their performance at large scale (Michael, 2019). The
functional activities are being formulated by how HRM frames rules according to it and this
influences the decisions which are made for the activities to be performed and people working on
it.
Production – The production of Marks and Spencer has impact on the functional management
activities in organization and people within as the production function impacts the decisions
made for products and services which are provided to the customers at large scale and this also
impacts the people within the company which are working in the organization as the decisions
are being impacting the organization and the performance of the people working within
organization (Berry and et.al., 2019). This is the major impact of production function which
impacts the functions of the management and people performing their roles and responsibilities
effectively and efficiently at large scale.
Operations – The operation function within Marks and Spencer has impact on the functional
management activities in organization and on people working within organization as this impact
the decisions which are made for the people working within the organization (Qu and et.al.,
2021). The operations of Marks and Spencer helps impacts the performance and productivity of
how the operations are being taking place within organization and people who are engaged in
delivering their best performance in the process. The operations of how Marks and Spencer
works are known as how effective and efficient the systems and processes are being impacted on
the functional management activities.
Task 4
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Organizational culture is defined as the collection of values, practices and expectations that
informs and guides the actions of all team members at all levels and this helps in knowing how
the organization works. Zara’s has a very entrepreneurial culture and employs lot of people and
individuals which helps in initiating the progress of the company and increases the growth and
development through the performance of the individuals (Strati, 2017). The culture encourages
risk – taking and implementation that is fast. This helps Zara in initiating the aspects of how it
grows and the modernization of working within healthy and positive environment at large scale.
Positive culture impacts success of organization at large scale as the progress is observed
when there are changes which seek towards the initiatives taken newly and helps in developing
the scale of motivating and encouraging the employees to perform effectively and deliver results
which helps in growth and development overall of Zara (Chatterjee and et.al., 2018). Zara incurs
positive working organizational culture and environment which implies that employees are the
major source through which the company can create the value in the environment and for this
they should be provided positive organizational culture and environment. The success of the
organization is measured by the positive organizational environment and in this the employees
are also encouraged to deliver effective results and achieve the targets, goals and objectives set.
The success is dependent upon the positive work culture which is inhibited within Zara and its
employees are engaged in providing the scale of growth and development through which the
growth and progress is achieved (Nikpour, 2017). Thus, it is very important for Zara to maintain
positive working environment which helps in seeking business objectives at large scale and this
benefits employees by having their attention towards contributing to the success factors of
organization in effective manner.
CONCLUSION
Thus, it is concluded from the above essay that advantages and disadvantages of three types
of business that are sole trader, partnership and limited company helped in providing the
information of three different companies well associated. Comparison of tall structure of Tesco
with flat structure of Valve was being evaluated which provided essential information of both the
structures. Human Resource Management, Productions, Operations were explained along with
impact of their functional management activities on Marks and Spencer and people within
organization. Further, organizational culture was explained and evaluated for how positive
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culture impacts the success of the organization and this helped in analyzing the scale through
which all perspectives are known at large scale for success and growth of the organizations
which have been taken in the above essay. Also, understanding the business organizations and
their environment easy topic helped in describing the tasks which were developed in significant
manner.
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REFERENCES
Books and journals
Cribb, J. and et.al., 2019. Who are business owners and what are they doing? (No. R158). IFS
Report.
Cudby, A., 2018. Commercial Lending: Principles and Practice. Kogan Page Publishers.
Butenko, N. and et.al., 2019. Methodological Approaches To The Evaluation of The
Effectiveness of Partnership Relations. Baltic Journal of Economic Studies.5(4).pp.42-
49.
Brodie, D., 2018. Partnership working: a service user perspective. In Care Trusts (pp. 69-80).
CRC Press.
Daroń, M., 2017. A Verification of Advantages and Disadvantages in Partnership
Relations. Zeszyty Naukowe Politechniki Częstochowskiej. Zarządzanie.27.pp.96-105.
Andonovski, P.M. and et.al., 2018. Type And Scope Of Responsibility Of The Cooperators In
The Public Trade Company-Advantages And Disadvantages. Cataloging-In-Publication
Data.p.105.
Puustinen, T. and et.al., 2018. The distribution of perceived advantages and disadvantages of
infill development among owners of a commonhold and its’ implications. Land Use
Policy.75.pp.303-313.
Lin, C. and et.al., 2018. Analysis and Solution of the Problems in the Distribution of Suning
Tesco. Transportation Management.1(1).
Lee, S.R., 2021. The Myth of the Flat Start-up: Reconsidering the Organizational Structure of
Start-ups. Available at SSRN 3835538.
Michael, A., 2019. A handbook of human resource management practice.
Berry, S. and et.al., 2019. Do increasing markups matter? lessons from empirical industrial
organization. Journal of Economic Perspectives.33(3).pp.44-68.
Qu, W. and et.al., 2021. Research on the establishment and operation management of flexible
organization. In E3S Web of Conferences (Vol. 253, p. 03070). EDP Sciences.
Strati, A., 2017. Organizational culture. In Concise Encyclopaedia of Participation and Co-
Management (pp. 578-584). de Gruyter.
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Chatterjee, A. and et.al., 2018. Impact of individual perception of organizational culture on the
learning transfer environment. International Journal of Training and
Development.22(1).pp.15-33.
Nikpour, A., 2017. The impact of organizational culture on organizational performance: The
mediating role of employee’s organizational commitment. International Journal of
Organizational Leadership.6.pp.65-72.
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