Understanding Business Organisation

This essay provides insights on the different types of business organisations, including sole trader, partnership, and public limited company. It also covers the different business functions, such as marketing, human resources, and operations, and the importance of organisational culture. The case study used is Hotel Premier Inn.

Understanding
Business Organisation

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The term business organisation may be referred as the sum total of all factors that have potential
to influence operations of an organisation (Otley and Berry, 2019). There are various factors that
may directly or indirectly impact on company’s functioning. Understanding business
environment facilitates in framing of strategies which leads company towards attainment of goals
within time frame period. By assessing competitor’s actions, it helps company in formulating
effective strategies which helps in gaining competitive advantage. This essay is based on gaining
insights of business environment in which a business operates. For better understanding business
environment, Hotel Premier Inn is taken into consideration. It is a hospitality based company and
operates at various locations. It was founded by Whitbread in 1987 This project essay will cover
various business categories and organisational structure. At last, it will cover distinct business
functions along with organisational culture.
TASK
Business may be referred as any enterprising establishment that is engaged in professional,
industrial along with commercial practices (AJAGBE and et al., 2016). There are various types
of business and one of the simple type of business is sole trader. In this type of business, an
individual establish, operates and controls whole business and is liable to enjoy all profit. It
offers flexibility a there is no interference of any other person. Sole trader has advantage of full
control and there would be no need for consultation with others. The cost of establishment is low
in case of sole trader and have full control over business. It does not require any cost of
professional advices and enjoys all profit. The major drawback of this business is that capital
formation is quiet difficulty in this case. All the duties and responsibilities have to perform by a
single individual and sometimes became hectic. Apart from enjoying profit, it has to bear loss
too. The another type of business is partnership in which business is established, managed and
controlled by two or more people. One of the major advantage of partnership is that it creates
great borrowing potential. This makes business easy to establish and act as a bridge between
expertise and knowledge in order to manage and run company. In addition to that, it limits share
control and enables joint decision making (Jansen, Steenbakkers and Jagers, 2017). In case of
dissolution of partnership, there can be change in partnership deed. All the profits generated by
company have to be distributed as per partnership deed or conflict may arise, in case of absence

of deed. Public limit company is another form of company and it is organised by shares of stock
intended for free trade in stock exchange. Hotel Premier Inn find itself in a good position when it
tries to source fund for further expansion. It becomes easier for company to source fund when it
already listed on a recognised exchange (Collyer, 2016). It facilities in generation of goodwill in
market and makes it easier to source fund from potential investors. The major drawback of this
type of company is that it can be subjected for higher scrutiny from investors and regulators.
This type of company majorly emphasis on short term profits.
Organisational structure may be defined as a system which outlines the ways and
methods by which company can attain its objectives effectively and efficiently. There are various
types of organisational structure such as tall and flat structure. Tall organisational structure also
known as hierarchical structure in which establishment is broken into different hierarchy. In this
type of structure, each department has manager who supervise and control so as to deliver better
customer service to their customer. High control and clear responsibility facilitates in smooth
functioning of business. Tall structure lies in clarity as well as in managerial control. Whereas
flat structure is also known as horizontal structure in which company do not have any middle
management among executives of company. Flat structure comprises of high responsiveness of
market, higher delegation to subordinates, emphasis on customer and decentralised management
approach (Mewafarosh, Tripathi and Gupta, 2020). There are various opportunities to employees
so as to excel time while promotion business vision. It has better potential to adaption of change
due to flexible in nature. The benefit of flat organisational structure is that it tends to empower
workforce and allows them for greater sense of autonomy along with responsibility.
Business function are referred as set of various activities carried out by business
organisation in order to generate higher revenue. In relation to Premier Inn, the key business
functions are marketing. Human Resource and operations. The first business function is
marketing and it relates to promotion of company’s products and offering in target market in
order to meet customer’s needs and wants so that competitive advantage can be achieved.
Marketing function positively impacts on company’s brand equity. It is important for company to
market their products so that audience can be aware about products and offerings. The another
business function is human resource and it undertakes various function such as recruitment and
selection, payroll administration, on boarding and relieving formalities and many more. Human
Resource management of Hotel Premier Inn administer workforce and deals with various queries

of customers. Recruitment and selection is the core function of Human Resource department and
have responsibility to recruit talented candidate for filling vacant job position within
organisation. Along with this, it plays an important role in enhancing productivity of company by
hiring right candidate as well as by providing them with training sessions (Goulandris, 2020).
The another function of business organisation is operation and aims to render services so as to
target customers. This functional practice positively impacts on improving customer satisfaction
that enhances offering quality along with increased revenue generation. In relation of Hotel
premier Inn, it positively affects company’s efficiency and productivity. All the functions of
business management collaboratively contribute in attainment of goals effectively and
efficiently.
Organisational culture may be defined as sum collection of practices, expectations along
with values that informs and directs workforce within an organisation. It facilitates in guiding
and workforce to behave in a specific manner. It consists of shared beliefs which are formed by
management that further reinforce by opting so as to shape behaviour and perception. Having
power culture, company can operate in a centralised culture which emphasis on key decision
makers. The another type of culture is role culture which is more formalised culture that have
numbers of jobs along with clear roles and responsibilities. Task culture emphasis on particular
task and projects. This type of culture exists when a company is trying to accomplish project or
task within time frame period. It is opted by Hotel Premier Inn and so that it can resolve problem
in an innovative manner so as to complete project. It has been analysed that having a positive
culture within an organisation makes it easier to achieve higher success. In addition to that,
employees can work with peak potential which positively affects company’s operation. It is
important to provide a foster working environment in which employees feels valued part of
company. It also facilitates in job satisfaction and employee engagement which eventually
enhance productivity of company. Organisational culture plays an important role in elevating
success of business and contributes in attainment of objectives. It also helps in minimising
overall cost of company because of high employee engagement and job satisfaction. It is
imperative for company to have a well-defined structure and culture so that company can
accomplish its objectives within prescribed time (Govender, 2017). By having positive working
culture, managers of Premier Inn establish well defined structure which comprises of vision and

mission statement of company. All business function collectively aims to enhance productivity
of company.

CONCLUSION
From the above project essay, it was concluded that business organisation operates as per law
systems that governs contract together with exchange of rights. Sole trader, partnership and
Public limited company are some types of business organisation. In sole trader, whole business is
managed and controlled by a single individual. There are various functions of business such as
marketing, operations and human resource that collectively contributes towards attainment of
goal. Marketing function facilitates in promoting products and offerings of company by using
different marketing tools whereas human resource emphasise on hiring of potential candidates so
as to fill vacant job position within an organisation. Operations function helps company in
making process smoother and eliminates barriers of success. Flat and Tall organisational
structure is described in this essay along with organisational culture.

REFERENCES
Books and Journals
AJAGBE and et al., 2016. HOW ORGANIZATIONAL STRUCTURE AIDS BUSINESS
PERFORMANCE. CLEAR International Journal of Research in Commerce &
Management, 7(8).
Collyer, S., 2016. Culture, communication, and leadership for projects in dynamic
environments. Project Management Journal, 47(6), pp.111-125.
Fu, F., 2018. Design and analysis of tall and complex structures. Butterworth-Heinemann.
Goulandris, A., 2020. The Enterprising Barrister: Organisation, Culture and Changing
Professionalism. Bloomsbury Publishing.
Govender, K.K., 2017. Leadership styles, organisation culture, and employee
performance. International Review of Management and Marketing, 7(4), p.191.
Jansen, W., Steenbakkers, W. and Jagers, H., 2017. New business models for the knowledge
economy. Routledge.
Mewafarosh, R., Tripathi, V. and Gupta, S., 2020. A conceptual study: Organisation culture as
an antecedent to employee engagement. International Journal of Environment, Workplace and
Employment, 6(1-2), pp.3-19.
Otley, D.T. and Berry, A.J., 2019. Control, organisation and accounting. In Management Control
Theory (pp. 101-114). Routledge.