Understanding Business Organisations

This project provides insights on different forms of business such as sole trader, partnership and public limited company. It also covers organisational structure, business functions and organisational culture. The case study is based on Hotel Premier Inn.

Understanding
Business
Organisations

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

INTRODUCTION
The term business environment is termed as sum total of every factor which have
potential for affecting operations and functioning of an enterprise. Understanding business
facilitates as framing of strategies which lead company for attainment of both long term and
short term objectives. Addition to it, this also assists company to become more responsive
against their competitors(Siti-Nabiha, Nordin, and Poh, 2021). This project is based on
environment of business for gaining insights. For a better understanding in business
environment, Hotel Premier Inn is taken into consideration. This project highlights many
categories of business along with organisational structure. In addition for it, this covers many
business functions and organisational culture.
TASK
The business may be termed as an enterprising organisation which includes in either
commercial, occupational and professional activities with motive for earning profit. One of a
simplest kind of business is sole trader, where business is managed, operated and established by
a single person. As example, Little French restaurant is a kind of sole trader, which is operated
through a single person. Major advantage in this kind of business is that this offer flexibility and
owner is liable for enjoy each profit margins and do not take suggestion from their directors or
others. Owner have full control on their assets and power remains in one hand. This also need
low capital to establish enterprise and there are less need for professional advices. This results to
lower down overall cost and owner enjoys higher profit(Macqueen, Bolin, and Greijmans,
2021). One of a major drawback for sole trader is that owner have responsibilities for bear all
losses in case of recession. Sometime taking decision become rigid and this may lead to take
wrong decision. Another limitation for sole trader is that this limits expansion capacity because
of inadequate capital. All the responsibilities and decisions remain in one hand and this becomes
hectic for individual to manage activities. Other form of business is partnership in which two or
more individual agree to setup organisation in order to carry on activities of business for
generating profit. The major advantage for partnership is that this form great borrowing of
capital. This become a lot easier for establishing company with partnership as every partner
bring capital which reduce burden on one which can be seen in sole trader. However, large
amount of capital will be raised with partnership and this brings gap within knowledge and

expertise in order to carry out operations of business. In a partnership, single partner can not take
decision and they have to take decision jointly. When a partnership get dissolved, the ownership
changes and this become difficult for a partner to make deeds and all other formalities(Lima,
McMahon, and Costa, 2021). This results in legal conflict in case of absence of partnership
deed or informal agreement.
Public Limited Company is also a kind of company in which this is commenced from
shares of stock which were intended for free trade on stock exchange. As example, Hotel
Premier Inn is listed in London Stock Exchange. In a public ltd. Company, the main advantage to
to increase share capital especially if a company is listed on recognised stock exchange. This
assist company in time of funding capital from external or internal sources. This is seen as a
prestigious symbol which gives confidence to public and this invests their saving in a company.
In context of of Hotel Premier Inn, there are many managers who focus on making a company
successful. The major drawback in public limited company is that this is subjected to specify
scrutiny level through their regulators and investors. The other drawback is that this only focus
on short term goals but not on long term goals of company.
Organisational structure is said as a system which outlines many ways along with
practices which contributes in fulfilment of objectives. There are many kind of organisational
structure which are flat and tall structure. Tall structure were depicted as a hierarch-al structure
in which a enterprise break down this into many hierarchy. In context of Hotel Premier Inn, this
breaks departments into many hierarchy and each hierarchy have their own manager who is
responsible for carry out their functions(Goni, and, et. al., 2021). Higher control and clear
responsibilities line were seen in this structure. Every hierarchy of a company collaboratively
work as according to accomplish objectives. Advantages of tall structure is that this lie on clarity
and on managerial control. This also facilitate to provide many layers along with clear promotion
structure and responsibility lines. Flat structure is also called as horizontal structure in which a
company have less or no middle management within executives and personal. Few management
levels, this have high response towards decentralised management and dynamic market approach
are some characteristics towards flat organisation structure. There are many opportunity which
lie in structure so to excel time to showcasing vision of business. This is flexible in nature and
consider better potential for adopting changes. This organisational structure authorise workers
and allow them for having good sense of autonomy along with responsibilities.

Business function is defined as the activities which were carried through enterprise which
have motive for earning profit. In relation of Hotel Premier Inn, some of main business functions
are human resource, operations and marketing. The first business function is marketing and this
is related to promoting services and products to target customers. This play an essential role
which make aware public for this offering. Through promote products, a company can attract
large customer base. In context of Hotel Premier Inn, this opt tool of digital marketing in order
for engage and to communicate with their customers(Cartwright, Davies, and Archer-Brown,
2021). Activity of marketing positively impact on equity brand of a company and make product
visible for mass audience which contribute to increase sales volume. The other function of
business id Human Resource function and this is related to selection and recruitment, payroll
administration, evaluation of worker's performance and provide development and training
sessions. This is responsibility of HR manager for maintaining healthy relation which their
worker which leads in higher job satisfaction and reduce workers turnover. This is essential for
an enterprise to make a foster working environment in which worker feel important part of a
company and work with high potential. The function of HR manager affect on performance and
in productivity of a company. This ensure that every workforce is motivated more to carry out
the role and for attain goals of organisation. The other business function is operated and this
relates for conversion of output or input. Aims of operation for providing good services for their
customer and act as control mechanism. The operational activity of company contributes and
contributes to make a company more efficient. Each of these activity positively improvise
strength through which competitive advantage can be taken. Operation aims to provide
better services to its customers and acts as a mechanism for control.
Organisational culture is referred as collection of all expectations and practices together
with values and norms which facilitates in informing and directing team members. This consists
shared belief which formed through managers and leaders which afterwards communicate in
addition to reinforce through using many method which eventually shape perception and
thoughts of worker(Balabanova, 2021). This is essential for a company to make a foster working
culture in which worker feel motivated and comfortable enough for attaining professional and
personal goals. In relation of Hotel Premier Inn, this opt Handy's cultural model in order for
shape many methods to behave and work in a enterprise. In power culture, company operate in
centralised culture which focus over decision making. The culture of working of Hotel Premier

Inn is effective in which every worker feel valued part for company and this also provide growth
of opportunity to deserve worker. Along with this, company conduct development and training
sessions through which workers can polish their existing skill and acquire new skill set.
CONCLUSION
In the above essay project, this was concluded that there are many forms of business such
as partnership, public limited company and sole trades. In sole trader, every responsibility lie on
one hand and owner enjoys profit and bear loss. Along with this there are many functions such as
marketing, human resource and operations which collectively contribute to accomplish
objectives. Tall and flat are kind of organisational structure which outline roles, procedures, and
responsibilities of worker. Having good organisational structure assist to enhance operational
efficiency and bring workforce together so as for attaining goal. Organisational culture made
positive workplace environment which influence nature of plan which drives enterprise to long
term vision.

REFERENCES
Books and Journals
Balabanova, E., 2021. Employee socio-economic dependency as an antecedent of abusive
supervision in Russian business organisations. Employee Relations: The International
Journal.
Cartwright, S., Davies, I. and Archer-Brown, C., 2021. Managing relationships on social media
in business-to-business organisations. Journal of Business Research, 125, pp.120-134.
Goni, F.A., and, et. al., 2021. Sustainable business model: A review and framework
development. Clean Technologies and Environmental Policy, 23(3), pp.889-897.
Lima, E.S., McMahon, P. and Costa, A.P.C.S., 2021. Establishing the relationship between asset
management and business performance. International Journal of Production
Economics, 232, p.107937.
Macqueen, D., Bolin, A. and Greijmans, M., 2021. Democratising forest business: a
compendium of successful locally controlled forest business organisations.
Siti-Nabiha, A.K., Nordin, N. and Poh, B.K., 2021. Social media usage in business decision-
making: the case of Malaysian small hospitality organisations. Asia-Pacific Journal of
Business Administration.