Introduction to Business Assignment

This assignment analyzes the functional areas and hierarchy of management at Hotpoint Electric Heating Company. It explores the importance of communication in leadership and management, analyzes the drivers of globalization and their impact on businesses, and compares and contrasts different leadership and management styles. The assignment provides a comprehensive analysis of Hotpoint's operations and its place in the global business landscape.

Introduction to
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Functional areas of Hotpoint business and its hierarchy of management...................................1
TASK 2............................................................................................................................................2
Why is communication central to leadership and management..................................................2
TASK 3............................................................................................................................................3
The current drivers of globalisation and their impact on businesses..........................................3
TASK 4............................................................................................................................................5
Comparison and contrast of two chosen styles of leadership or management............................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Business refers to a company or firm where people work together. In these kind of
organisations people work for making and selling goods and services. Introduction to business
can be the exploration of the functions of modern business management, marketing and ethics or
social responsibility that can help in the improvement of the company (ABU AOUF, 2018). This
assignment is based on Hotpoint Electric Heating company which was founded in 1911 by Earl
Richardson. Tit produces various products such as washing machines, Dishwashers,
Refrigerators, Freezers, Cookers and others. It is headquartered in Peterborough,
Cambridgeshire, UK. The purpose of this report is to analyse the functional areas of this
company and its hierarchy of management. In this assignment will be discussed about the drivers
of globalization and styles of leadership and management.
TASK 1
Functional areas of Hotpoint business and its hierarchy of management
Hotpoint Electric Heating Company was founded in 1911 by Earl Richardson and
headquartered in Peterborough, Cambridgeshire, UK. The grim manufacture electronic products
like washing machines, refrigerators, freezers etc. There are 123 employees who are working
under this firm and the annual revenue of this firm is $2.8 million.
This firm operate its business in various areas. The functional department of Hotpoint are
marketing, human resource, finance etc. and they help in business expansion of the company.
They are as following:
Marketing- It is one of the essential functional area for each organisation. In Hotpoint,
marketing function help in the marketing of the products and services of this company. With the
help of it, the management of this company promote its products and create awareness. It is
beneficial fro increasing the productivity and profitability of the firm.
Human Resource management- It another functional area of Hotpoint which I helpful
for the company because it help in managing the business activities of the firm and formulate
strategies, plans and policies (Belonenko, Druzhilov and Tuzalina, 2015). It is beneficial for the
company because it provide workforce to the organisation for operating the business of the
company.
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To describe the organisational structure, Handy's Model of organisational structure can be
used. It is as following:
Handy's Model of Organisational Structure
This model is developed by Charles Handy in 1932 to define the culture and structure of
an organisation (Canthika and Lestari, 2016). According to this model, there are four types of
culture which can be followed by a company. They are are as following:
Power culture- It refers to the rules and regulations or polices that are framed by the
management of a company for the proper functioning of the firm. In Hotpoint, there are some
people and individuals have some power to make decisions and developing policies or new rules
& regulations. In this company boards of directors and managers have the power of taking
decisions and formulating polices and new rules.
Role culture- It refers to a culture in which every worker is performed roles and
responsibilities according to their specialization and job roles. In Hotpoint, each employees of
the firm, perform their work according to the rules and regulations of the company. In this
culture workers want as much security and stability as possible. In culture there is a clear
hierarchy and status is more essential than performance. It is beneficial because with the help of
it employees have clearly emissary authorities within a highly described cognition.
Task culture- It refers to the work of organisation. In Hotpoint, the teams are framed by
the management of the company to attain organisational target and resolve problems and issues
of any project. In this firm, the management formulate teams and groups to complete a specific
task or work and address problems and conflicts.
Person culture- There are few organisations which think that employees are important
for the business of the firm. In Hotpoint, employees are more essential resources more that the
organisation. So the management of the firm feel them important by providing training &
learning sessions, promotion, incentives etc.
in all these organisational structure and culture, power culture is good for the effective
management of Hotpoint (Chubachi and et. al., 2018). The management of this company can
follow power culture because it is beneficial fro the growth of the firm.
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TASK 2
Why is communication central to leadership and management
Communication refers to the process of delivering information and data from one person
an place to another person and place. It can be a process of conveying a message or information
with the help of communication tools and like message, mail, and others (Goss, 2015). In
Hotpoint, communication is an essential process because with the help of it, the management of
this firm transfer and share information with its different functional areas and departments.
Communication is beneficial for management of the company and leadership also.
Importance of communication in management- Communication is important fro decision
making and planning it provide secure and essential information. Without it, it is not possible to
take decision and resolve and issue. Proper and effective communication is beneficial for the
implementation of plans and polices of the management. It is important for the smooth and
effective running oft the firm.
Importance of communication in leadership- Communication is not merely the transfer of
information but is refers to an art which can be used to encourage and inspire someone. In
leadership communication is necessary because it help in motivating employees of a firm when
they are feeling demotivate so that they can attain their set objective in given period of time. It is
important for making or building good employee relation and resolving conflicts.
For example, In Hotpoint, if there are effective communication within marketing and
production department. Because if they both have effective communication than they can help in
the growth of the firm (Hair Jr and et. al., 2015). If marketing department have strong
communication with production than it have proper information about the manufacturing and
requirement of needed material and resources etc. With the help of it they can have clear data
and budget related to purchasing of materials etc. Whereas, if production department have good
interdepartmental communication with marketing than it can share information about related to
their requirements of raw material and machinery etc.
TASK 3
The current drivers of globalisation and their impact on businesses
Drivers of globalization refers to those factors which are essential for the proper running
of the firm when it operating its business at global level. There are various current drivers of
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globalization which help the organisation to expanding their business at international level. Some
of them are as following:
Technological advancement- It is one of the most important driver which help in the
proper running of the firm. For example, if Hotpoint operate its business at global level or
international market than advancement in technology can help in it with the help of different
factors (Ismajli and et. pl. 2017). By making advancement in telecommunication, the
management of this company can use latest technologies like video conferencing, webchat and
others. With the help of it, they can directly communicate with their employees and save their
cost and time.
International trade- It is another driver of globalization which is beneficial for the
effective operations of the organisations. With the help of it, the firm can operate and expand
their business in international market. For example, if Hotpoint, use this driver then it will be
help the firm in expanding its business and increasing profit or productivity. Basically
international trade refers to the importing and exporting of the goods and services form one
nation to another nation. There are various international organisations have designed economics
and business polices for global trading of the products and services.
International investment- This driver drives internationalization by increasing economic
integration. Basically international investment refers to those investment which are made or done
by international organisation in other nation. For example, this driver is beneficial for Hotpoint
because with the help of it, the management of this company can make international investment
which help in the economic development of the company. With the help of FDI and FPI they
firm can make investment in other countries. It is beneficial because it help in creation of
productive enterprises, employment and new or different sources of income.
Impact of these drivers of globalisation of business
These all drivers of globalization create positive and negative impact on the business. If
the management of the firm adopt technological advancement then it beneficial for expansion of
business and making improvement in business operations. For example, with the help of it, the
firm can use various technology for the production of the product. In promotion of the products,
it can applied various advance channels like web advertisement, social media advertisement etc.
which help in creating awareness and increase the productivity of the firm (JiaYan, 2018).
International trade also beneficial for the business because with the help of it the company can
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expand its business in another nations. It also help in increasing sales and profit of the firm.
International investment is also create positive impact on the business of the firm because with
the help of it, the firm can make investment in different nation and provide employment to others
which help in building a strong brand image and reputation.
TASK 4
Comparison and contrast of two chosen styles of leadership or management
Leadership styles
It refers to those methods and ways that are adopted by a leader to motivate, encourage
and inspire or show direction to people (Mashaba, 2015). There are different leadership styles
which are used by various leaders to encourage employees in an organisation. Some of them are
as following:
Authoritarian leadership style- It is also known as autocratic leadership style and it
totally concentrate on both command by leader and control of the followers. This style of
leadership defined the control of individual on over all decisions and little inputs of group
members. Fro example, in Hotpoint, if the leader follow this style, the leader wholly take
decisions by themselves and they will not consider employees views.
Participative leadership style- It is an another leadership style which is known as
democratic leadership. It is an effective and efficient leadership style. In this leadership style
employees can also participate in decision making process and share their views and ideas. For
example, in Hotpoint if the leader adopt this leadership style then they include employees also in
decision making process and consider their views and ideas.
Management styles
It refer to the principle and methods that can be used by an organisation to control or
manage the firm's activities, operations and functions. There are various management styles and
some of the are as following:
Consultative management style- In this management style, the manger permit for more
discussion before taking any decision. In this management style, all the people of the firm can
consult or make discussion but the final decision are taken by the manger (Mesiono, 2018). This
type of management style leads to loyalty from workers included in decision making process but
those who are left out, they can more likely to move on.
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Persuasive management style- It is another management style which the manger of the
company makes choices which are based on the persuasion of employees (Quinlan and et. al.,
2019). In Hotpoint, the employees can convince their manger of the benefits of a decision and if
they are right then manager can accept their views. If they are not perfect then the manger can
take final decision accordingly.
From the above information it can be analysed that the organisation can follow
participative leadership style and persuasive management style. Because with the help of these
styles, the management can consider their employees views and provide them chance to
participate in decision making process or put their ideas and issues. So that the management can
consider them solve problems on time, this help in the effective running of the business of the
company.
CONCLUSION
From the above information it can be concluded that marketing, human resource
management and other functional area are beneficial and play an essential role in the
management of the business operations of the company. Communication is also beneficial fro the
proper running of the business of a company because if the department of an organisation has an
strong communication with each other than they can help the management in operating the
company. Drivers of globalization also beneficial for increasing the profit and productivity of the
firm. Leadership and management style play an effective role in the management of a firm.
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REFERENCES
Books & Journals
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Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Hair Jr, J. F. and et. al., 2015. Essentials of business research methods. Routledge.
Ismajli, H. and et. pl. 2017. The Role of Internal Audit as a Starting Point for the Discovery of
Irregularities in the Financial Statements of Public Companies in Kosovo.
JiaYan, J., 2018. Impact of Website Quality, Customer’s Trust and Customer’s Attitudes Toward
On-line Channel on Customer’s Intention to Use Service of Premium Department
Stores in Bangkok.
Mashaba, S., 2015. Risk assessment of overhead line hardware on the Eskom distribution
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Mesiono, M., 2018. The contribution of communication intensity to the responsibility attitude of
supervisors in the office of ministry of religious affairs at Medan city.
INTERNATIONAL JOURNAL ON LANGUAGE, RESEARCH AND EDUCATION
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Quinlan, C. and et. al., 2019. Business research methods. South Western Cengage.
Rizki, A. A., Surjandari, I. and Wayasti, R. A., 2017, October. Data mining application to detect
financial fraud in Indonesia's public companies. In 2017 3rd International Conference
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Thakar, H. M., 2015. Role of Management Education in Global Business. Journal of Applied
Management-Jidnyasa.7(2). pp.39-44.
Online
Handy's Model of Organisational Culture.2018. [Online]. Availabel Through:
<https://www.tutor2u.net/business/reference/models-of-organisational-culture-handy>.
Types of Management Styles. 2019. [Online]. Available Through:
<https://www.cornerstoneondemand.com/resources/articles/3-different-types-
management-styles-workplace>.
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