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

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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.