Understanding of the Business Environment

This report provides an overview of three types of business organizations - sole proprietor/trader, partnership structure, and limited liability business. It also discusses the advantages and disadvantages of tall and flat organizational structures and the different functions of a business organization, including management, operations, and finance. Finally, it highlights the importance of organizational culture and its impact on employee satisfaction and performance.

UNDERSTANDING
BUSINESS
ORGANIZATIONS

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Paragraph 1.......................................................................................................................................3
Paragraph 2.......................................................................................................................................4
Paragraph 3.......................................................................................................................................5
Paragraph 4.......................................................................................................................................6
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8

INTRODUCTION
The word business organization can be denoted through the meaning regarding a particular
type of established setup that is created of and formed by unique cohesive group of people
belonging to varied backgrounds who come together for the purpose of conducting commercial
activity. These organizations are governed on the basis of accurately formulated laws, property
rights, and more within which they work. Below provided essay-based report will precisely define
and depict specifically 3 distinct kinds of business/corporate organizations in conjunction with their
advantages plus disadvantages. It will even include several instances based on relative travel and
hospitality industry in the scenario of which following essay report would be conducted. This report
will differentiate and contrast both tall and flat organizational structures with their benefits and
drawbacks that will be led by an alaborate description on 3 particular categories of business
divisional activities and their influence on the management activities. Finally the essay would
descriptively comment on organizational structure and culture (Konovalova and et.al., 2020).
MAIN BODY
Paragraph 1
After properly defining and discussing the concept regarding business organizations, it's
required to comprehend that there are various categorical businesses which are being functioned by
either their owners or cohesive partners upon the foundation of clearly designated varied kinds of
business aims that relate to that specific business type (Cappellino, 2020). Among the several

business types, below are depicted three particular kinds of organizational business types which are
provided as:
Sole proprietor/trader
The sole trading organization is referred to a business or an enterprise that is owned and run
by singular person on individual basis. It is considered single/sole business trader because it has no
legal differentiation amidst the business comprising its owners. In such businesses, the single owner
has complete control over every major operations or upon the aspects regarding respective business,
thereby it constitutes an advantage regarding being the single decision-taker while as its drawback it
again has to suffer all losses individually (MAKUDZA and et.al., 2022). For example the UK-based
hospitaly enterprise such as Virgin Holidays invariably has to bear its profits plus losses.
Partnership structure
The term partnership is defined by an agreement among more than two parties for managing
and operating given business collectively plus sharing gained profits/losses regarding their business
comprehensively. In it are different kinds of partnership agreement treaties, but the accountabilities
and profits concerning the business seem to be managed equally. Herein this business possesses the
benefit regarding shouldering even its shareholder requirements collectively and as its disadvantage
some times its risk rises because of asset liabilities. As an instance of it the travel company of the
United Kingdom like the Travel group of Advantage Business is one fo the major forms concerning
business partnership (Ivashchenko and Isaeva, 2021).
Limited liability business
The limited liability business organization could be denoted as concerning particular type of
sector based business format in which its owners including members don't eaaily get personally and
individually liable for each (presupposed) acts done or witnessed by the particular business
structure. It is the mixed or combined type where company has good advantage of witnessing few
losses since it is confined in nature plus also it has a disadvantage concerning the limitations of
having a few beneficial legislative and/or fiscal policies (Simkovic, 2018). As an example of this is
the popular large chain of Hilton hotel branches within the UK travel sector that falls in this
spectrum.
Paragraph 2
Any business organization just like the different types of organizations consists of varied
number of workspace structures where a specific business organization functions. These comprise a
wide range of organizational formats like the hierarchical structure that might be tall-shaped, flat-

oriented, functional, horizontal or divisional and much more (Faldyna and Mainka, 2020). Given
below have been mentioned and displayed 2 very particular kinds of business structures - tall and
flat.
Organizations with Tall structures: Such business enterprises that exhibit exquisitely tall kind
concerning organizational structure mean that in basic sense the current or other complications
within a company is based upon its large-sized orientation. It can be elaborated through the
exemplification of the US military design that has one long centralized-order chain and similarly a
tall shaped organization has number of members who have to face upwards to various managerial
layers which comprise both frontline employees plus senior supervising leads (Huzzen and et.al.,
2020). The benefit regarding having a tall-structured business is that the managers can offer
multiple directions concerning the personnel but there will remain an absence of integrated
communicative linkages. For examples, the Hyatt hopitality corporation show at times uniquely tall
and/or vertical structured organization.
Organizations with Flat structures: As contrasted with the tall/vertical structure of organizations
the former flat/horizontal structured organizational types could be effectively anayzed and
comprehended by associated name itself which unlike the tall framed management type the
employee-senior connection is much direct with smooth approach. Herein the employees feel very
much motivated because they could smoothly communicate among their senior officials with a
commendable amount of accountable autonomy (Lee, 2022). One very linked major advantages
regarding this flat structure indicates that everyone is encouraged and productive levels increase but
it again comes with associated deficit that is like timely occurence concerning confusion and
misunderstanding or faulty communication that might surface with overlapping construed
infomation including quite a lot free association amidst employees plus managers. For example UK-
based firm Travel Inn functions on this flat/horizontal business structure.
Paragraph 3
There are a lot many diverse and differentiated business functions in varied structures of
distinct organizations founded on existing inter-relationship plus inter-functionality with which
every business concerned tasks or activities then get planned with further execution (Weaver and
et.al., 2021, October). Few of these have been mentioned as follows:
Management: One very much vital business function consists of the management division that
entails 4 main components namely planning segment, arranging, regulating, and leading sections.
These comprise the major or primary responsibilities of the relative managers whose task/duty it is
regarding supervising the proper tracking of organizational members and their associated roles and

responsibilities (Heikkilä and et.al., 2018). This management business section comprises a very
important and vital effect on the functioning of the whole organization as its name itself depicts this
section's role is to handle people plus their attached tasks and duties (Lloyd and Aho, 2020). A
primary example of such business function can be experienced in the hotel service oriented industry
within UK with particular reference to the Premier Inn hotel-chain where its management function
organizes all the consumers' and workforce's needs.
Operations: The operations segment of a business organization is that business function that
incorporates associated inputs and in other words the necessary assets of production get converted
into final desired outputs regarding respective business organization. This operations department is
situated at the central center among any business and industry as it efficiently oversees and looks
over almost every other present business functions and also contributes in the sufficient provision of
all required goods plus services both regarding terms of the quantity and related quality for the
satisfaction of consumers and commits the workers more towards accomplishing working goals
plus company objectives. It influences the entire structure of given organization's structure also its
culture because it helps in the functioning regarding supply chain, with both logistics plus
procurement that could be evidently observed in its structure concerning the organization Travel
Lodge based in United Kingdom (Nielsen and Kristensen, 2020).
Finance: Another of most significant business function comprises the finance division that is tasked
with accurate drafting for economic, money-related plus fiscal plans regarding the contextual
organization. Associated accountants, financial units, and other budget-related individuals are
accounted with the responsibilities of managing, tracking and formulating strategies concerning
both short and long-term objectives of concerned company (de Waal and et.al., 2019). According to
the overall global statistics which have been preserved till now, majority of activities which a
business seems concerned with like the ranging from cumulative gathering of required inputs upto
the execution regarding various plans to the sales, promotion and marketing activities; in actuality
everywhere, this finance department counts as utmost important. It also coordinates with other
segments like the HR payroll calculating system. It could be seen within almost every hospitality
plus tourism companies like the Jet Airways, Mariott, etc.
Paragraph 4
The organizational culture could be referred as coherence of virtue laden values that aids in
guiding actions regarding every member in company. It could even be connoted as trait that makes
travel plus hotel firms example Hilton or Virgin Airways how they should integrate. It involves
philosophy, expectations, qualities including experiences related to company (Paais and Pattiruhu,
2020). The organizational culture generally means involvement of hygienic-working surroundings

for all. Healthy environment concerning every business structure can also be created by strong
inputs of multiple efforts which employees put within their organizations. The five features which
are involved among business organizations globally regarding business culture given below are
these – financial solidification, amiable inter-cultural connections, high-work-performance growth,
praise and recognition encouragement of employees, etc (Hardcopf and et.al., 2021).
CONCLUSION
It could be clearly observed from the above essay report that there are various types of
business structures/formats and several related functions. The above-mentioned report has
accurately provided the description of a business organization including number of types of such
businesses are existing there in conjunction with discussion of their characteristics in the scenario of
instances from tourism and hospitality organizations. This essay report even has depicted and
compared among the kinds of business structures which exist diversely. Furthermore it has
evaluated and examined the different kinds regarding business functions which runs, integrate and
coordinate with one another in specific business contexts and finally it has adequately defined and
illustrated the vitality of business cultures and associated positive impacts.

REFERENCES
Books and Journals
Cappellino, A., 2020. How to Choose the Right Business Organization Form.
de Waal, A., and et.al., 2019. Removing the barriers on the way to European high-performance
finance functions. Problems and Perspectives in Management. 17(4). p.370.
Faldyna, V. and Mainka, M.K., 2020. The Essence and Types of Development of Business
Structures. Path of Science. 6(12). pp.2001-2006.
Hardcopf, R., and et.al., 2021. Lean production and operational performance: The influence of
organizational culture. International Journal of Production Economics. 235. p.108060.
Heikkilä, J., and et.al., 2018. Purchasing category management: providing integration between

purchasing and other business functions. International Journal of Procurement
Management. 11(5). pp.533-550.
Huzzen, B.E., and et.al., 2020. An effective survey method for studying volant species activity and
behavior at tall structures. PeerJ. 8. p.e8438.
Ivashchenko, N. and Isaeva, L., 2021. Basic principles of partnership as the factor of sustainable
development in the context of business ecosystems. In E3S Web of Conferences (Vol. 291,
p. 08005). EDP Sciences.
Konovalova, E.E., and et.al., 2020. Development of forms of the hotel business organization in
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862.
Lee, S., 2022. The myth of the flat start‐up: Reconsidering the organizational structure of start‐
ups. Strategic Management Journal. 43(1). pp.58-92.
Lloyd, R. and Aho, W., 2020. The Four Functions of Management-An essential guide to
Management Principles.
MAKUDZA, F., and et.al., 2022. Towards Sustainability of Single-Owner Entities: An Examination
of Financial Factors That Influence Growth of Sole Proprietorship. The Journal of
Industrial Distribution & Business. 13(5). pp.15-26.
Nielsen, H. and Kristensen, T.B., 2020. Impact of lean operations on the roles of finance functions
and their application of lean. European Business Review.
Paais, M. and Pattiruhu, J.R., 2020. Effect of motivation, leadership, and organizational culture on
satisfaction and employee performance. The Journal of Asian Finance, Economics and
Business. 7(8). pp.577-588.
Simkovic, M., 2018. Limited Liability and the Known Unknown. Duke LJ. 68. p.275.
Weaver, G.A., and et.al., 2021, October. Continuous Infrastructure Assessment for Key Business
Functions in Changing Environments. In 2021 Resilience Week (RWS) (pp. 1-8). IEEE.