Understanding Business Organisation: Advantages and Disadvantages of Different Business Structures, Organisational Culture, and Business Functions - Desklib

This essay covers the advantages and disadvantages of different business structures, a comparison and contrast on organisational structure, different business functions which impact business management, and organisational culture and industrial practice. The subject is Understanding Business Organisation, with course code MGBBT0UBN. The essay mentions Premier Inn hotel as an example of a multinational hotel. References are included.

MGBBT0UBN
Understanding
Business Organisation

Business organisation is an important entity which helps out to carry different activities
through which the goods generation is been taken place (Kohe, Purdy, and Litou, 2021). It
incorporates the rights and the working liabilities through which it manage out all the nature and
the commercial and industrial segments. Their are 4 types of business organisation they are like,
partnership, sole proprietorship, corporation and limited liability company. It use to concern and
are covered with the large sectors and the working areas through which it develops the
incorporation and its systematic framework. The organisation chosen in this essay is Premier Inn
hotel which is a luxurious hotel have so many branch and also have about 700 hotels worldwide
with 50,000 rooms majorly in UK. It is a Multinational hotel which offers services like
accommodations, food and beverages etc.(Al-Dmour and et. al., 2017). This essay will cover the
advantages and the disadvantages of different business, a comparison and contrast on
organisational structure, different business function which impacts the business management.
Furthermore it will also cover the organisational culture and industrial practise.
Partnership is a type of business structure which involves more than two people who
share the responsibilities, profits, loss, capital contribution and decision making power. For
instance, Fox hill Manor is a partnership hotel. The advantages of partnerships are like, it helps
in generating and infusing more cash in business, it manages the work life balance and it is a cost
saving process which provides more opportunities in business (Sushma, 2020). Some of the
Disadvantages are like, issues in future selling, lack of stability and there is loss of autonomy as
no partner have full authority to manage business and in hotel industry to manage all the food
and the general facilities by themselves. Sole Trader Is another form of business which involves
single owner who takes the sole responsibility to manage the working of the enterprise. It is
being set up by their own savings or they can take the money from banks or friends. The
advantages of sole trader business are like, they are easy to start or set up secondly all the profit
which is being earned by them lies to their own self and thirdly, all the decision making powers
are in their own hands (Hong, and Kolios, 2020). For instance, Verdant leisure is a small scale
hospitality sector. Whereas the major disadvantages are like, it carries unlimited liability, the
workload on a single owner is over-burdened and the raising of finance for this sector is difficult.

Limited liability company is a private company hybrid structure use to manage all the general
partnership and corporation in business. It helps in giving all the business a general control with
limited liability in business practise (Cabral, and Jabbour, 2020). For instance, Holiday Inn.
Advantages of this business are like, flexibility in income distribution, members are most likely
being easily controlled and it has simple structure. Disadvantages are like, it does not have
perpetual existence in working, it faces difficulty in raising funds and capital and it contains
confusion in all the states.
Flat organisational structure is in which all the top management are directly in
connection with the employees and the working teams and their will be a direct communication
among all. It generally has the decentralized leadership where no major responsibility is being
given to many middle managers. It covers a clear environment where all the relational and the
general contacts between the managers and the upper authority along with employees are smooth
as they use to discuss all the implementing goals and targets with all. For instance, Premier Inn
Hotel uses flat organisational structure and they are concerned to provide all the directions to
their members by the seniors regarding management of hotel and the food and general services.
Tall organisational structure use to have a broken structure in which all the management is
being made according to the distinct hierarchy. As in this kind of structure their have numerous
of managers and all of them will get the responsibility in order to control and manage a particular
portion (Yadav and et. al., 2020). The managers use to assign all the work and the take the major
responsibility of their teams in this structure. For instance, Marriott use tall structure for
managing business their top management give advise to all the members regarding the work and
management. The comparison and the major contract between two is Tall structure have so
many levels of hierarchy whereas, flat structure carry limited number in hierarchy. The time
taken in tall structure is competitively high as for flat structure (Webber, and Dunbar, 2020). As
tall structure carry different levels as they are generally broken in different departments like
food, accommodations etc. and flat structure has a major wide and direct control on all it use to
manage and cover all throughput by themselves their will not be any managerial involvement.
Another difference is that tall structure is costly and the flat structure is low costing (Oh, 2018).
The opportunities raised in order to make the promotion is high in tall structure and for flat
structure it is comparatively low. The control span in tall structure is narrow whereas for flat
structure is particularly wide.

Business functions is the activity which are being made by an enterprise through which it
try to generate the income and the production. This helps in evaluating and managing the general
profitability of the organisation (Moşteanu, Faccia, and Cavaliere, 2020). There are some major
department which helps in managing the business efficiently they are like, Human resource
management, marketing, finance etc. Marketing is a method which is used in order to increase
the promotion of hotels and their facilities which are given to the customers with exciting offers.
The impact on all the functional management is it helps in increasing sales and also in
promoting the goods and services whereas it also play an important impact on employees as by
making them focus on the innovative ideas and creative skills through which they can manage
the production. As Premier Inn Hotel have a team which manage all the marketing with better
promotion skills with advertisement of their various offers of hotel. (Lüdeke-Freund, and
Dembek, 2017). Finance is an important department which use to manage all the costing and the
budgets of the company with proper framing of cost. Its impact on functional management is it
make the cost lower and increase the profit and for the employees it helps in managing benefits
through which increment can be given. The finance department of Premier Inn Hotel carries the
budgets and the costing in accurate manner so as to make the profit as they try to manage
budgets for hotel resources and facilities. HRM is an outgoing practise of a manager to deploy,
hire, recruit all the employees in the organisation (Ek Styvén, and Mariani, 2020). It helps in
making the profit to be earned. It impacts on the functional management is that it helps out to
hire the efficient candidate for the company and which helps in enhancing the facility and
advancement. Whereas its impact on the employees is that this helps in managing the training
process through which it increases the efficiency of the employees which will make the company
to gain profit. As Premier Inn Hotel manages effective selection and training process for
managing services for customers. They focus on hiring efficient staff who are well qualified for
all the management of hotel services.
Organisational Culture is a method which helps out in managing the proper methods and
ways in order to frame values, shared belief and general positive culture and environment
(Ibrahim, Ali, and Besar, 2020). All the values which are implemented in such culture are non-
profit and it generates the major expectations, philosophy, experience etc. as in all the companies
the employees when being hire they use to adapt the similar behaviour which is being going on
since long time. This is the practise which is used by the companies in order manage their

employees to behave morally and ethically with all the shared values. It usually focusses on the
sociology, psychology etc. this use to give all the employees the method of communicating and
also managing the working. So it is important to manage a positive attitude in the working as
this makes the company to enhance their image and reflect a positive attribute in the society.
Positive culture creates an ethical and valuable environment in all the organisation (Ibrahim, Ali,
and Besar, 2020). As when the company use to have good organisational structure it
automatically reflects on the working and the behaviour of the employees as they will be loyal
towards their hotel and hospitality sector and will stuck for longer period, and will manage all
the work to be done in efficient manner. The performance of the hotels uses to be directly
dependent on the organisational culture. Premier Inn Hotel is a leading hotel and it use to
manage a positive environment in their company so as to create a positive approach and also to
enhance their overall performance. They use to manage a happy company culture as by making
better communications and by flourishing the developed nature in their behaviour (Staniškienė,
and Stankevičiūtė, 2018). Thus, organisational culture is the most important factor in all the
companies as it promotes and manages the general positive growth in the company and also
focus in uplifting the behaviour in non-profit attitude.
From this above essay it is analysed that business organisation is management of
different business practise which helps in managing the customers to come and maintain staying
with growth. Sole traders are the single owners which carry the advantages like all the profit
goes to them and the disadvantages like they have major financial liability. Partnership is
generated when two or more person agree to carry same business practise. Tall organisational
structure is the division of all the sectors in different departments and it is different from flat
structure as tall structure is managed by different managers and flat is open for all and have
direct contact between employees and head. HRM helps in selection, hiring and provides
increased growth in hospitality sector. Further it is also concluded that organisational culture
creates a positive attitude in the employees and use to create a major impact of the working
culture (Ibrahim, Ali, and Besar, 2020).

REFERENCES
Books and Journals
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