Different Types of Organization and Business Functions in Unilever and BBC
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AI Summary
This project discusses the different types of organization in the business and their legal structure, size and scope. It also explores the business functions in Unilever and BBC and the impact of interrelation among these functions on the structure of the organization. The project highlights the background, vision & mission, legal & organizational structure and stakeholders of different types of organizations.
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Business and Business Environment
INTRODUCTION
Business organization refers to the structure formed with a purpose of
carrying out trade and commerce related activities.
There are mainly four form of business structure i.e. sole proprietary,
partnership firms, corporations and companies.
Every business needs to adopt legal configurations that defines the
ownership, control and structure of the organization.
The project is about the different types of organization in the business
and their legal structure, size and scope.
The project highlights the functions of the organization along with the
interrelation of every functions.
Advantages and disadvantages of interrelationship between organizational functions
Advantages
1. It helps in creating specialization and lead to better work in less time.
2. Employees work in the department in which they are well- qualified and this
establishes coordination among employees within the department.
3. Each and every department is dependent upon each other for fulfilling their
own responsibilities. For example, to procure raw materials, production department
requires finance and it is dependent upon finance department for this.
4. It helps in increasing efficiency as same work is done again and again.
Unilever
Unilever is a British multinational company which is engaged in manufacturing of
food and consumers goods. The founder of the company Lever Brothers and
Margarine Unie and headquarter is in London, England. It is a public limited
company dealing in food & beverages, home appliances, beauty products and
personal care products. It is a large scale company operating in more than 190
countries with a large workforce and around 400 brands.
Vision of the company
The vision of Unilever is to make sustainable living a common place, and they
believe that it is the best long term way to grow in the business (Akter, 2021). The
main points in the vision are:
• Sustainable living
• Long term way
• Business growth
Mission
The mission of the company is to add vitality of life by providing nutritious,
hygienic and personal care products which make consumers feel and look good
and have a standard living.
DIFFERENT TYPES OF ORGANIZATION
Partnerships
It is the form of structure which involves two or more people or entity
who share ownership in same business.
Corporation
It is a separate entity which is considered as a legal person. The entity
and the people forming the entity are different person in law
Company
Company is a separate legal entity incorporated under company’s act.
The owners of the company are known as members and shareholders
who invest in the company by purchasing shares of the company
(Karpenko and et.al., 2019).
Business functions in Unilever
BBC
British broadcast corporation is national broadcaster of UK. Headquarter of the
corporation is in London, England. It is a public corporation owned by the
Government and the shares are bought by public. BCC deals in broadcasting
services. It is a medium scale corporation and is the largest broadcast in the world.
Vision
The vision of the corporation is to become the most creative broadcasting
organization in the world. The components in the statement are:
• Be the most creative
• Global reach
Mission
The mission of BBC is to act in the public interest and serving all the audience
with high quality and distinctive output to educate and entertain.
Unilever
Production Human
resource
Sales &
Marketing Finance
INTRODUCTION
Business organization refers to the structure formed with a purpose of
carrying out trade and commerce related activities.
There are mainly four form of business structure i.e. sole proprietary,
partnership firms, corporations and companies.
Every business needs to adopt legal configurations that defines the
ownership, control and structure of the organization.
The project is about the different types of organization in the business
and their legal structure, size and scope.
The project highlights the functions of the organization along with the
interrelation of every functions.
Advantages and disadvantages of interrelationship between organizational functions
Advantages
1. It helps in creating specialization and lead to better work in less time.
2. Employees work in the department in which they are well- qualified and this
establishes coordination among employees within the department.
3. Each and every department is dependent upon each other for fulfilling their
own responsibilities. For example, to procure raw materials, production department
requires finance and it is dependent upon finance department for this.
4. It helps in increasing efficiency as same work is done again and again.
Unilever
Unilever is a British multinational company which is engaged in manufacturing of
food and consumers goods. The founder of the company Lever Brothers and
Margarine Unie and headquarter is in London, England. It is a public limited
company dealing in food & beverages, home appliances, beauty products and
personal care products. It is a large scale company operating in more than 190
countries with a large workforce and around 400 brands.
Vision of the company
The vision of Unilever is to make sustainable living a common place, and they
believe that it is the best long term way to grow in the business (Akter, 2021). The
main points in the vision are:
• Sustainable living
• Long term way
• Business growth
Mission
The mission of the company is to add vitality of life by providing nutritious,
hygienic and personal care products which make consumers feel and look good
and have a standard living.
DIFFERENT TYPES OF ORGANIZATION
Partnerships
It is the form of structure which involves two or more people or entity
who share ownership in same business.
Corporation
It is a separate entity which is considered as a legal person. The entity
and the people forming the entity are different person in law
Company
Company is a separate legal entity incorporated under company’s act.
The owners of the company are known as members and shareholders
who invest in the company by purchasing shares of the company
(Karpenko and et.al., 2019).
Business functions in Unilever
BBC
British broadcast corporation is national broadcaster of UK. Headquarter of the
corporation is in London, England. It is a public corporation owned by the
Government and the shares are bought by public. BCC deals in broadcasting
services. It is a medium scale corporation and is the largest broadcast in the world.
Vision
The vision of the corporation is to become the most creative broadcasting
organization in the world. The components in the statement are:
• Be the most creative
• Global reach
Mission
The mission of BBC is to act in the public interest and serving all the audience
with high quality and distinctive output to educate and entertain.
Unilever
Production Human
resource
Sales &
Marketing Finance
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Notes
It is very important to choose an appropriate form of business structure. The type of business is selected after analysing all the legal formalities, cost of formation, capital and size of the business. The three
types of business structure highlighted in the project are: partnership, corporation and company.
DIFFERENT TYPES OF ORGANIZATION
Partnerships
The partners of the entity make a written agreement in which the duration and purpose of the entity, the profit and loss sharing ratio, etc. are mentioned to avoid disputes. It is easy to form
partnership firm as there is very less legal requirements.
Corporation
The liability of the owners is limited to the capital invested in the corporation. It is a costly form of business which requires complex paperwork.
Company
It is a medium or large scale entity which has the ability to raise large amount of capital. The formation of company is very costly and requires compliance of many legal requirements.
Unilever is the company discussed in the project.
Background, size and legal structure of different types of organization
Social Chain
Social chain is a partnership entity which was founded by Steve Bartlett and Dom McGregor. It is a hugely innovative social media marketing agency on international scale. Headquarter of the
entity is in Berlin. It is an online business platform which enable the customers to shop online food, home appliances and beauty products (Background of Social Chain, 2022). The entity has around 1300
employees and dealing in different locations like London, Gallin, Los Angeles, etc.
Vision
The vision of Social Chain is to become the most innovative social media commerce platform in the world. The key components of the statement are:
Innovative commerce platform
worldwide reach
Mission
The mission of the entity is to make people available with all brands in home & living sector to enable them with standard living. The key components of the statement are:
Success of all brands in home & living sector Standardized living
Objectives
The objective of Social chain are:
To become successful in internation market
To increase the scope of e-commerce platform To build a strong customer relationship
Organizational and legal structure of Social Chain
The organizational structure of Social Chain includes partners, general manager, assistant manager, different departmental managers and employees. It is a partnership form of business which
was formed by the mutual agreement between the two partners of the entity.
Stakeholders
The internal stakeholders of Social chain are partners, managers and employees. The external stakeholders are Government, customers, banks and suppliers who render technical services.
BBC
(Vision, mission and objectives of BCC, 2022). The components in the statement are:
High quality services Serving all audience
Objective of the corporation
The objectives of BBC are:
To maximize the reach of all language services
To demonstrate value for money To reflect the value and culture of UK to the world
Organizational and legal structure
The organizational structure of BBC consists of board of Governor, executive board, journalism board, creative board and commercial board. It is a corporative type of business.
Stakeholders
The internal stakeholders of BBC include owners or shareholders, managers and employees of the corporation. The external stakeholders include local community, banks, Government,
customers and suppliers.
REFERENCES
Books and Journals
Karpenko, L. and et.al., 2019. Formation of the system of fair business practice of the company under conditions of corporate responsibility. Academy of Strategic Management Journal. 18(2). pp.1-8.
Macassa, G. and et.al., 2022. Corporate Social Responsibility Reporting for Stakeholders’ Health and Wellbeing in the Food and Beverage Industry: A Case Study of a Multinational Company.
Sustainability. 14(9). p.4879.
Roberts, V. Z., 2019. The organization of work: Contributions from open systems theory. In The unconscious at work (pp. 37-48). Routledge.
Online
Background of Social Chain, 2022. [Online]. Available through: <https://socialchain.com/en/about-us>
Vision, mission and objectives of BCC, 2022. [Online]. Available through: HYPERLINK "https://www.bbc.com/aboutthebbc/governance/mission"https://www.bbc.com/abouttheb
.
It is very important to choose an appropriate form of business structure. The type of business is selected after analysing all the legal formalities, cost of formation, capital and size of the business. The three
types of business structure highlighted in the project are: partnership, corporation and company.
DIFFERENT TYPES OF ORGANIZATION
Partnerships
The partners of the entity make a written agreement in which the duration and purpose of the entity, the profit and loss sharing ratio, etc. are mentioned to avoid disputes. It is easy to form
partnership firm as there is very less legal requirements.
Corporation
The liability of the owners is limited to the capital invested in the corporation. It is a costly form of business which requires complex paperwork.
Company
It is a medium or large scale entity which has the ability to raise large amount of capital. The formation of company is very costly and requires compliance of many legal requirements.
Unilever is the company discussed in the project.
Background, size and legal structure of different types of organization
Social Chain
Social chain is a partnership entity which was founded by Steve Bartlett and Dom McGregor. It is a hugely innovative social media marketing agency on international scale. Headquarter of the
entity is in Berlin. It is an online business platform which enable the customers to shop online food, home appliances and beauty products (Background of Social Chain, 2022). The entity has around 1300
employees and dealing in different locations like London, Gallin, Los Angeles, etc.
Vision
The vision of Social Chain is to become the most innovative social media commerce platform in the world. The key components of the statement are:
Innovative commerce platform
worldwide reach
Mission
The mission of the entity is to make people available with all brands in home & living sector to enable them with standard living. The key components of the statement are:
Success of all brands in home & living sector Standardized living
Objectives
The objective of Social chain are:
To become successful in internation market
To increase the scope of e-commerce platform To build a strong customer relationship
Organizational and legal structure of Social Chain
The organizational structure of Social Chain includes partners, general manager, assistant manager, different departmental managers and employees. It is a partnership form of business which
was formed by the mutual agreement between the two partners of the entity.
Stakeholders
The internal stakeholders of Social chain are partners, managers and employees. The external stakeholders are Government, customers, banks and suppliers who render technical services.
BBC
(Vision, mission and objectives of BCC, 2022). The components in the statement are:
High quality services Serving all audience
Objective of the corporation
The objectives of BBC are:
To maximize the reach of all language services
To demonstrate value for money To reflect the value and culture of UK to the world
Organizational and legal structure
The organizational structure of BBC consists of board of Governor, executive board, journalism board, creative board and commercial board. It is a corporative type of business.
Stakeholders
The internal stakeholders of BBC include owners or shareholders, managers and employees of the corporation. The external stakeholders include local community, banks, Government,
customers and suppliers.
REFERENCES
Books and Journals
Karpenko, L. and et.al., 2019. Formation of the system of fair business practice of the company under conditions of corporate responsibility. Academy of Strategic Management Journal. 18(2). pp.1-8.
Macassa, G. and et.al., 2022. Corporate Social Responsibility Reporting for Stakeholders’ Health and Wellbeing in the Food and Beverage Industry: A Case Study of a Multinational Company.
Sustainability. 14(9). p.4879.
Roberts, V. Z., 2019. The organization of work: Contributions from open systems theory. In The unconscious at work (pp. 37-48). Routledge.
Online
Background of Social Chain, 2022. [Online]. Available through: <https://socialchain.com/en/about-us>
Vision, mission and objectives of BCC, 2022. [Online]. Available through: HYPERLINK "https://www.bbc.com/aboutthebbc/governance/mission"https://www.bbc.com/abouttheb
.
Notes
UNILEVER
Adding vitality
Meet everyday needs of nutrition, hygiene and personal care Enable consumers with standard living
Objectives
The objectives of the company are:
To improve the health and well-being of its consumers
To improve livelihood of people in supply chain To minimize the negative impact of company's operation on environment
Organizational structure
Unilever has a divisional structure in which it has divided into five business groups each is fully responsible and accountable for its own strategy, growth and profit
(Islami and et.al., 2021). The advantage of this structure is it supports innovation and product development as each group is responsible for its own growth.
Legal structure
Initially, company was operating as two separate public companies i.e. Unilever PLC and Unilever N.V. These companies have merger into single parent company i.e.
Unilever Plc to create a simple company that can be better positioned in the future.
Stakeholders of the company
The main internal stakeholders of the company are employees, managers and shareholders. The internal stakeholders also includes members of leadership team i.e.
CEO, vice president, general managers, etc (Macassa and et.al., 2022). The external stakeholders of the company are Governments, NGOs, suppliers, customers and local trade
associations. It works with Government to be aware of the policies that affects the operations of the company. It engages with NGOs to render social services to the society.
Business functions in Unilever and the impact of interrelation among these functions on structure of organization
The different business functions of the company are production, human resource, finance and marketing.
Production
Production department of the company is responsible for the production of products to its customers. The responsibilities of the department includes:
• Procurement of raw materials for production
• Conversion of raw materials into finished goods
• Maintaining the production level and quality
Human resource
Human resource department is responsible for the management of human resource in the company (Kar and Tripathy, 2021). The responsibilities of the department are:
• Forecast the demand and supply of workforce
• Hiring employees according to the required qualification
• Training and development of employees to encourage them to improve productivity
• Creating a healthy work culture
• Evaluating performance of employees and giving rewards and incentives
• Handling and resolving the grievances of employees
Sales & Marketing
Sales and marketing department is responsible for making products available to its customers at right time and place. They analyse the customer needs and develop
appropriate marketing strategies to attract the customers. The responsibilities of the department includes:
• Market research
• After sale service
• Maintaining strong customer relationship
• Conducting promotion and advertisement activities
• Developing an appropriate distribution channel
Finance
Finance department deals with managing of funds in the company. The responsibilities of finance department are:
• Procurement of funds in the business
• Preparation of budgets and cost allocation
• Managing the financial transactions and maintaining records
• Building appropriate investment strategies
5. It helps in facilitating training to employees.
6. As the work is divided it avoids duplication of work.
Disadvantages
1. There may be conflict among different functional managers.
2. As each department has its own goals, they may ignore the overall goal of the company.
3. Every department is dependent upon others there may be chance of blaming each other for not achieving departmental goals.
The interrelationship between the organizational functions may have negative impact on the structure of organization as each department has their own duties and
responsibilities (Roberts, 2019). They would give priority to their own departmental goal rather than on company's goals. The interdependency on each other for fulfilling the
responsibilities may impact entire company as negligence of one department will impact the functions of other departments.
CONCLUSION
The selection of appropriate business type depends on various factors like size, capital, duration, scope, etc. The project is about different type of organization in the
business. Discussion on background, vision & mission, legal & organizational structure and stakeholders of different type of organizations. The project also highlights the
organizational functions and impact of interrelation among different functions on structure of organization.
UNILEVER
Adding vitality
Meet everyday needs of nutrition, hygiene and personal care Enable consumers with standard living
Objectives
The objectives of the company are:
To improve the health and well-being of its consumers
To improve livelihood of people in supply chain To minimize the negative impact of company's operation on environment
Organizational structure
Unilever has a divisional structure in which it has divided into five business groups each is fully responsible and accountable for its own strategy, growth and profit
(Islami and et.al., 2021). The advantage of this structure is it supports innovation and product development as each group is responsible for its own growth.
Legal structure
Initially, company was operating as two separate public companies i.e. Unilever PLC and Unilever N.V. These companies have merger into single parent company i.e.
Unilever Plc to create a simple company that can be better positioned in the future.
Stakeholders of the company
The main internal stakeholders of the company are employees, managers and shareholders. The internal stakeholders also includes members of leadership team i.e.
CEO, vice president, general managers, etc (Macassa and et.al., 2022). The external stakeholders of the company are Governments, NGOs, suppliers, customers and local trade
associations. It works with Government to be aware of the policies that affects the operations of the company. It engages with NGOs to render social services to the society.
Business functions in Unilever and the impact of interrelation among these functions on structure of organization
The different business functions of the company are production, human resource, finance and marketing.
Production
Production department of the company is responsible for the production of products to its customers. The responsibilities of the department includes:
• Procurement of raw materials for production
• Conversion of raw materials into finished goods
• Maintaining the production level and quality
Human resource
Human resource department is responsible for the management of human resource in the company (Kar and Tripathy, 2021). The responsibilities of the department are:
• Forecast the demand and supply of workforce
• Hiring employees according to the required qualification
• Training and development of employees to encourage them to improve productivity
• Creating a healthy work culture
• Evaluating performance of employees and giving rewards and incentives
• Handling and resolving the grievances of employees
Sales & Marketing
Sales and marketing department is responsible for making products available to its customers at right time and place. They analyse the customer needs and develop
appropriate marketing strategies to attract the customers. The responsibilities of the department includes:
• Market research
• After sale service
• Maintaining strong customer relationship
• Conducting promotion and advertisement activities
• Developing an appropriate distribution channel
Finance
Finance department deals with managing of funds in the company. The responsibilities of finance department are:
• Procurement of funds in the business
• Preparation of budgets and cost allocation
• Managing the financial transactions and maintaining records
• Building appropriate investment strategies
5. It helps in facilitating training to employees.
6. As the work is divided it avoids duplication of work.
Disadvantages
1. There may be conflict among different functional managers.
2. As each department has its own goals, they may ignore the overall goal of the company.
3. Every department is dependent upon others there may be chance of blaming each other for not achieving departmental goals.
The interrelationship between the organizational functions may have negative impact on the structure of organization as each department has their own duties and
responsibilities (Roberts, 2019). They would give priority to their own departmental goal rather than on company's goals. The interdependency on each other for fulfilling the
responsibilities may impact entire company as negligence of one department will impact the functions of other departments.
CONCLUSION
The selection of appropriate business type depends on various factors like size, capital, duration, scope, etc. The project is about different type of organization in the
business. Discussion on background, vision & mission, legal & organizational structure and stakeholders of different type of organizations. The project also highlights the
organizational functions and impact of interrelation among different functions on structure of organization.
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