MGBBT0UBN: Impact of Business Types, Structure & Culture on Success

This essay provides a comprehensive overview of various business types, including sole proprietorships, limited companies, and partnerships, outlining their respective advantages and disadvantages. It delves into organizational structures, comparing tall and flat hierarchies with relevant examples such as Tesco. The essay also examines critical business functions like human resource management, production, and operations, emphasizing their impact on organizational success and employee well-being. Furthermore, it discusses the concept of organizational culture, highlighting its positive influence on employee motivation, productivity, and overall company growth. The essay concludes by reinforcing the importance of a supportive and well-managed work environment for achieving organizational objectives. Desklib offers a wide range of similar solved assignments and resources for students.

ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Essay on business types and function, organization structure and organization culture have
impact on success of company....................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A business can be defining as enterprising or organization engaged in industrial,
professional or commercial activities (Pride and et.al., 2020). Businesses can be non-profit
organization and profit organization. There are many different types of business such as sole
trader, partnership (McKeen, and Smith.,), join venture, corporation, company etc. this report
includes three types of business that is partnership, limited company and sole trader with their
advantages and disadvantages. Also highlights the concepts of organization structure (tall and
flat structure) and have short comparison with examples and impact of business function such as
production, human resource management, and operation etc. have positive impact on
organization and the employees. This report also illustrates the concepts of organization culture
and impact of positive culture on success of company. A good working culture help employees
to work in proper manner and by optimising resources.
MAIN BODY
Essay on business types and function, organization structure and organization culture have
impact on success of company
A sole proprietorship or sole trader is run by an individual, and this business is not
separate from the owner in simple words sole trader is self-employed individual who run entire
business by own and this business is easy to establish (Bernoste, Khedhaouria, and Thurik.,
2019). There are many cafes or coffee shop are run as sole proprietor.
Advantages of sole proprietorship-
Get start immediately: This business easy to start because sole trader not needed to register their
business and have less paper work.
Profit sharing: In this business whole profits is taken by trader only there is no one who is
eligible for sharing.
Quick decision: sole proprietorship is organized by a single person so it’s easy to take decision
according to market change.
Disadvantages of sole proprietorship-
Unlimited liability: As sole trader is eligible for success as well as failure so in case their
business is not run good then then they have to pay liabilities through personal property or assets.
Limited capital and skill: As there is only one person only that particular person skills are apply
and it have less or limited capital its mean there is limited profits.

Short life: In this business there is no guarantee of continuous business that is if trader not have
child or if chid have no interest in this business than it come to end.
Limited company is an another type of business where company is separate from the owner. It is
public limited company which is own by general people, in this business finance are separate
from the owner’s finance (Yunus.,). For example, Z hotels group limited run their business as
company.
Advantages of limited company-
Separate legal entity: Company is legally separate from its owner, in this business owner is lible
for only personal guarantees or unpaid shares.
Easy funding: For this types of business it’s easy to get finance, there are many schemes for
venture capital such as enterprise investment schemes etc.
Transfer ownership: In this business it’s easy to transfer ownership such as if owner is pass
away, by selling share etc. there are many reasons by which it can be done.
Disadvantage of limited company-
Company name are restricted.
Accounting requirement are time consuming and complex.
It takes time in making decision.
Partnership is when two or more are come together for business. For example, Jurys Inn are
recruiting for partnership to join wonderful team (Polding.,).
Advantages of partnership-
Easy to start
Better decision making
More capital (more partner more capital)
Disadvantage of partnership-
Unlimited liability
Profits are shared between partner
May chances of conflict
A tall and flat structure of a company level of management (Sharma., 2018). Tall
organization structure refers as an organization structure broken down into visible hierarchy in
this there are many managers and who are responsible for controlling a part of organization or by

arrange company department by particular products. Some advantages of tall structure are it
make strong and better chain of command that is from top level of manger to down level of
employees, it also helps in making effective communication. Tall organization structure usually
doesn’t have more than eight level of management, there are many managers so each manager is
responsible for a small group of workers. It has some disadvantages like it create rigid path for
promotion activity, employees feel less responsible and there may be chance of adversarial
relationship between employees and manager. For example, Tesco is follow tall structure to
manage their level of management because the organization is big and have different layers
inside the hierarchy. By this structure Tesco have smooth and efficient work. Tall structure is use
by large scale organization because it gives benefits in making major or big decision.
Flat organization structure has no or few level of management between the top managers
and employees (Reitzig., 2022). In this there is short chain of command therefore in this structure
empower the employees to have more responsibility and autonomy. This structure encourages
employees to work in team to solve organization issue, so newer business or encourage
innovation can apply this structure. There are less layers which lead better communicate, more
responsibility and autonomy for employees that’s help them in feel motivated and be more
productive. Many companies are follow this organization structure. Tall structure has many
layers while flat have less or no layers of management (Clement., 2019). A narrow spam is
required to control tall structure whereas span of control is wide in flat organization. In tall
structure it may take time in decision making while in flat it done in speed. There are more
opportunities of promotion in tall structure from flat structure.
Business functions are operation or process that securing the proper functioning of company,
in simple words it is activity perform by an enterprise (Litvinov., 2021). Business function
includes promotion, purchasing, distribution, human resources management, research and
development, accounting, financing, operation and public relation etc. Human resource
management is one of the important department in organization which in recruiting, deploying
and managing company employees (Stone, Cox, and Gavin., 2020). In many enterprises this
department make or design training programmes which help new employees to get company
culture and work place and for existing employees such training help them in more productive
and upskill. This function help company to managing payments or give wages/salary on time so
employees satisfaction is high which help them in feel motivated, and if employees feel

motivated then it gives positive impact on organization like work is done in more effective
manner. This function is most important in tourism/hospitality industry for managing their
services according to customer needs and promoting an image of the company as top travel sport
(Baum., 2018). Employees like travel agents, hotel staff, tour guide, etc. are considered as HR in
hospitality and tourism industry. The production function use resources to give better services or
products to customer in the market or can be refers as turning minimum input to making more
outputs. For example, in hotel production manager make sure that food in efficient manner so it
serves customer on time, so customer is happy then they give positive reviews which help
organization to get success (Kim, and et.al., 2021). Production function is responsible for handle
things to match customer demand, meet customer expectation and provide good quality with low
cost. Operations business function help organization in performing management functions such
as planning, coordinates, organizes, controls all the resources which are required to produce a
products or services. For example, in travel industry this function provides a depth coverage of
skills and knowledge for successful and effective management (Rutherford., 2021). This function
helps organization in improving revenues and customer satisfaction and efficiency in production.
Organizational culture define as a company’s objectives, mission, values and expectation
which guide employees (Lubis and Hanum., 2020). It determines the proper way to behave in the
organization. The interest, perception, mentalities, through process and attitudes of the
employees influence organization culture. The key characteristics of culture is high performance,
financial stability, good internal community, good relationship between employees. The sources
such as organizational ethics, structure, characteristics of individual in work place, property
rights and working condition according to the company employees. A strong culture helps
organization to success because it creates a workplace where every employee has job
satisfaction, strong employee’s engagement and increase productivity (Ameen and et.al., 2018).
In good organization culture employees feel more supported, valued and comfortable. A better
organization culture create workplace where every employee has job satisfaction, employee
engagement and increase productivity. For example, in hospitality industry they create
environment that influence nature of plans which help organization to move in the direction or to
achieve the objective. A positive culture helps in success because if employees are work in
proper manner, they are self-motivated which improve production that helps organization to
expand and grow.

CONCLUSION
This report illustrates different types of business such as partnership, sole proprietorship and
limited company with some advantages and disadvantages. Then define and compare different
organization structure like tall and flat structure with examples. This report also includes the
business function such as human resources management, operation and production and their
impact on company and their employees and by these function organizations run successfully
Furthermore, discuss about the concept of organizational culture and how it gives positive impact
on success of organization with some examples, if employees are feel motivated and have good
working culture helps them in doing effective work.

REFERENCES
Books and Journals
Pride, and et.al., 2020. Business. Nelson.
Bernoste, I., Khedhaouria, A. and Thurik, R., 2019. Positive affect, the entrepreneurial process,
and the entrepreneurial success of sole proprietors. M@ n@ gement. 22(2). pp.273-296.
Polding, L., Education Business Partnerships.
McKeen, J.D. and Smith, H.A., Building Business Partnerships.
Yunus, A., Limited Company Financial Assets based on State-Owned Enterprises.
Sharma, N., 2018. Organization behavior: Challenges and opportunities. IOSR Journal of
Business and Management. 20(1). pp.47-51.
Reitzig, M., 2022. When Can Flat Structures Beat More Centralized Structures?. In Get Better at
Flatter (pp. 105-119). Palgrave Macmillan, Cham.
Clement, F.H., 2019. Tall or Flat? Examining The Relationship Between Organizational
Structure and Turnover Intention (Doctoral dissertation, Azusa Pacific University).
Litvinov, Y.I., 2021. PROVIDING ENTERPRISE OBJECTIVES WITH MAIN FUNCTIONS
OF BUSINESS ENVIRONMENT. Publishing House “Baltija Publishing”.
Lubis, F.R. and Hanum, F., 2020. Organizational culture. In 2nd Yogyakarta international
conference on educational management/administration and pedagogy (YICEMAP 2019).
Atlantis Press (pp. 88-91).
Rutherford, D.G., 2021. Hotel management and operations.
Stone, R.J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
Kim, and et.al., 2021. Spatial spillovers of agglomeration economies and productivity in the
tourism industry: The case of the UK. Tourism Management. 82. p.104201.
Baum, T., 2018. Sustainable human resource management as a driver in tourism policy and
planning: a serious sin of omission?. Journal of Sustainable Tourism. 26(6). pp.873-889.
Ameen and et.al., 2018. The impact of management accounting and how it can be implemented
into the organizational culture. Dutch Journal of Finance and Management. 2(1). p.02.