Introduction to Business: Types of Organizations, Organizational Structures, and Functional Areas

This PPT covers various types of business organizations, justifies why partnership is better than sole trader, analyzes appropriate marketing strategy, and covers appropriate organizational structure and significance of main functional areas in chosen business organization.

INTRODUCTION TO
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
Different types of business organisation................................................................................1
Various types of organisational structure...............................................................................2
Significance of main functional areas of chosen business organisation.................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business is the separate legal entity in which an individual or the group of people work
under the commercial agreement which also helps them to establish the strong infrastructure by
which they also can offer the advance and unique products and services in order to attract large
group of customer base. For this respective PPT Home café is the new start-up business. This
PPT will cover the various types of business organisation and also justify why the partnership is
better version of business in comparison to sole trader while starting a new venture. Moreover, it
will analyse the appropriate marketing strategy to reach their prospective customer. Lastly, it will
cover the appropriate organisational structure and also the significance of main functional areas
in your chosen business organisation.
Different types of business organisation
There are various types of business which is sustaining in the market these are explained
as follows:
 Sole trader: It is the easiest way to register in which an individual is the business owner
and also liable for their all the taxes and all the incorporated venture. They are having the
freedom of choosing their business type and their business management.
 Partnership: It is the commercial agreement in which two or more people come together
and conduct the business in fixed agreement with the sole objective of the business in
order to share their profits and losses. There is full transparency among the partners and
fixed ratio to share their shares respectively.
 Public limited liability: It is the public limited company in which when the company is
profiting then the ownership is being shared in to shares and also divided publicly
tradable in their stock exchange and also includes the attributes such as large capital and
full financial privacy
It is suggested to Home Café start-up firms to use the partnership type of business as it
helps in initialling setting up their business and the all the partners are responsible to
shared all the profits and looses in agreed basis. This reduces the overall risk to the
business to bear all the looses by own as is being sole trader operate their business with
their own investment and bear all the losses by their own. In order to advertise their Home
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Café, it is suggested to use social media marketing so that they can easily advertise their
goods to the large group of customers.
Various types of organisational structure
 Hierarchical structure: It refers to the organisational structure in which all the
authority is being delegated by the top-level management to their subordinate so that
they can rightly complete the given task by using best of their skill set. It is the major
consideration as it assists with the one-way communication in which all the task is
being given by the top-level management only and employees can not give their
suggestions and feedback for any further change.
 Functional structure: it is also known as the flat organisational structure in which all
the duties and task as being divided in various operational departments so that the
specialised employee and also can gain higher level of effectiveness in each unit in
order to get better outcome. These are the aspects which can help the Home café to
establish their start-up business and all the duties can be distributed among the
concern person so that manager can ensures the better accomplishment of all the
business task in an appropriate manner.
 Matrix structure: It is the organisational structure in which all the employees are
engaged in particular job role. for instance, a sales person is conducting their job role
and also having perfect knowledge of marketing by which they can operate in both
the areas in order to establish better relationship with the colleagues.
Significance of main functional areas of chosen business organisation
There are various functional areas which are being operating in different business unit
and in context to Home Café, importance of certain functional areas is given below:
 Human resource: It is the unit which is concern for resourcing skilled employees so that
all the functions can be operated in an appropriate manner with the aim of getting better
outcome in each department. Home Café can reach to higher level of revenue with the
help of their talented employees.
 Finance: It is the backbone for any business which ensures the sufficient availability of
factor of production and budget for all the department so that all the activities can be
operated in an appropriate manner with the use of innovative and advance technology.
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 Marketing: It is the business unit which uses the various social media and direct
marketing techniques in order to promote their services to the large group base in order to
generate higher revenue and can easily establish good brand image in the large market.
This also helps the Home Café to advertise their service in front of large customer base in
order to generate more sales and profitability.
CONCLUSION
From the above PPT, it is concluded that there are various types of business which is
being operating in the market and it is suggested to the new start-up business to use partnership
type of business so that they can smoothly run their business in an appropriate manner.
Furthermore, they must use the social media marketing in order to attract large group of potential
customer. They must use the functional organisational structure as all the department can
effectively work in an given job role in order to gain higher profitability and growth.
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REFERENCES
Books and Journals
Annarelli, A., Battistella, C. and Nonino, F., 2017. Open Innovation practices for Product
Service System as a business model innovation. In ISPIM Conference Proceedings (pp.
1-14). The International Society for Professional Innovation Management (ISPIM).
Farias, L.M.S. and et. al.,2019. Criteria and practices for lean and green performance assessment:
Systematic review and conceptual framework. Journal of Cleaner Production, 218,
pp.746-762.
Leeraphong, A. and Papasratorn, B., 2018. Business models and transactions in C2C social
commerce: practices of selected social commerce practitioners in
Thailand. International Journal of Innovation and Technology Management, 15(06),
p.1850048.
Rahman, M.T. and et. al.,2020. Impact of management practices and managerial ability on the
financial performance of aquaculture farms in Bangladesh. Aquaculture Economics &
Management, 24(1), pp.79-101.
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