Report on Business Organizations, Environment, and Key Functions

This report provides a comprehensive analysis of different types of business organizations, including sole proprietorships, partnerships, corporations, and limited liability companies. It delves into the background, organizational and legal structures, and stakeholders of specific entities such as Berkeley Partnership LLP, British Business Bank, and Marks & Spencer. The report evaluates the various functions within these organizations, including operations, human resources, sales and marketing, and finance, highlighting the advantages and disadvantages of the interrelationships between these functions. It also examines the vision, mission, and objectives of each organization, providing a detailed overview of their strategic goals and operational frameworks. The analysis emphasizes the importance of selecting the appropriate organizational structure to achieve business goals and objectives, offering valuable insights into the complexities of business organization and management. Desklib provides a platform to access this document along with a wealth of study resources.

Business and Business Environment
INTRODUCTION
 Business organization refers to the structure for Business organization is
an entity which is formed for trading and commercial purposes.
 Every business needs to adopt a legal structure that defines their
ownership, organizational structure and control over the business.
 The entity takes one of the four types i.e. sole proprietary, partnership
firms, corporations and company.
 The project is about the different type of organizational forms in the
business.
 The project also highlights the background, organizational and legal
structure, stakeholders of different forms of businesses.
 Evaluation of different functions in the entity and impact of
interrelationship of these functions with each other on organizational
structure.
Advantages and disadvantages of interrelationship between organizational
functions
Advantages
 Employees work in a department in which they are well qualified and
repetition of same work creates specialization.
 Dependency of every department on each other for fulfilling
responsibilities.
 Segregation of duties and responsibilities avoids duplication.
Disadvantages
 There may be conflict between different departments and chances of
blaming each other is high as all are dependent upon each other.
 The overall goals of the organization may be ignored as each
department will focus on their own departmental goals.
Marks & Spencer
Marks & Spencer is a public limited company and it is a British
multinational retailer. The founders of the company are Michael Marks
and Thomas Spencer and headquartered in London, England. The
company is engaged in providing products such as clothing, beauty,
home appliances and food products. It is a large scale entity operating in
global market with more than 400 stores around the world.
DIFFERENT TYPES OF ORGANIZATION
Sole proprietary
Sole proprietary is owned and managed by an individual who alone
enjoys the profits of the business and bear losses.
Partnerships
Partnership firm is a form of organization which involves two or more
persons who come together to form a business entity.
Corporation
Corporation is a separate legal entity which is formed by individuals
and shareholders.
Limited Liability Company
LLC is a form of entity which is owned by the shareholders and
managed by the directors of the company.
Business functions in M&S
Berkeley Partnership LLP
Berkeley Partnership LLP is a limited liability partnership firm having a
registered address in London, UK. The other office of the entity is in New York.
The entity provides management consultancy services and is a leading
consultancy provider in UK. It helps management team of different entities to
resolve critical challenges. It is a small scale enterprise employee with around 50
employees and operates in domestic market.
British Business Bank
British business bank is a public corporation owned by UK Government
but independently managed. The bank is headquartered in Sheffield, UK.
The aim of the corporation is to make a finance market for small and
medium scale enterprises. It provides funding and business advisory
services to business entities. The corporation is medium scaled and
operates in United Kingdom.
Different organizational functions
The different types of functions in an organization are operations, human
resource, marketing and finance.
Operations
It is also known as production function are responsible for production of
products or providing services.
Human resource
The human resource department is responsible for managing human
resource in the company.
Sales and marketing
The marketing department is responsible for sales, marketing and
providing after sale services.
Finance
The finance department deals with managing of funds in the company.
M&S
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Notes
To start a business, it is very important for the individual to select which type of entity is to be formed. The selection of the form of organization depends on many factors such as ownership,
capital, control, scope, legal formation and cost of formation of the entity.
DIFFERENT TYPES OF ORGANIZATION
Sole proprietary
The owner and the business are the same i.e. there is no legal distinction. The establishment and dissolving the sole proprietary is easy as its requires few legal requirements. The cost of
forming the business is also lower from other form of organizations.
Partnerships
A written agreement called partnership deed is made in which profit and loss sharing ratio, duration and purpose of entity, capital introduced, etc. are mentioned to avoid any conflicts. The
formation of partnership is easy and requires less legal formalities (Karpenko and et.al., 2019). 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 formation of corporation requires lot of legal formalities. The liability of the owners is limited to the amount invested by them in the entity. As it is a separate legal entity it is allowed to
enter into any contract or can sue or be sued.
Company
It is a separate legal entity with its own legal rights and obligations. It means that company can enter into contract in its name and can sue or be sued and is responsible for everything it does.
The formation of company is very costly as it requires compliance of many legal requirements.
Background, size and legal structure of different types of organization
Berkeley Partnership LLP
Vision
The vision of Berkeley Partnership LLP is to be recognized as diverse entity which retains and develops talents and provides opportunities to employees (Berkeley Partnership LLP, 2020). The key
components of vision statement are:
 Recognized as diverse entity
 Retain and develop talents
 Create healthy and safe work culture
Mission
The mission statement is to delivering values and by working alongside clients will develop long term relationship. The components of mission are:
 Delivering values
 Developing long term relationship
Objectives
The objectives of Berkeley Partnership LLP are:
 To provide superior quality services
 To be globally innovative and competitive
 To achieve customer satisfaction by rendering 100% genuine services
Organizational and legal structure
The organizational structure of Berkeley Partnership LLP includes its partners, managers and consultancy teams (Joseph and Gaba, 2020). It is a limited partnership form of organization
formed by mutual agreement between partners.
Stakeholders
The internal stakeholders of partnership firm are partners, managers and employees. The external stakeholders include local government, banks, customers i.e. management teams of different
companies.
British Business Bank
Vision
The vision of British Business Bank is to lighten the way to the future of finance. The key components of vision statement are:
 Future of finance
 Economic growth
Mission
The mission of corporation is to drive sustainable growth across UK and to enable transition to net zero economy, by providing financial support to small businesses. The key components are:
 Sustainable growth
 Enable transition to net zero economy
 Financial support to small businesses
Objectives
The objectives of British Business Bank are:
 To increase the supply of finance
 To be the centre of expertise on smaller business finance in UK
 To enable economic growth by providing business advices to SMEs
 To manage taxpayers' money efficiently
Organizational and legal structure
The organizational structure of BBB consists of President, board members, senior leadership teams and other managements. The BBB is a public corporation which is owned by department of
Business, Innovation and Skills.
Stakeholders
The internal stakeholders of the corporation include shareholder i.e. The secretary of state for business, innovation and skills, board of directors, leadership teams and employees (Pedrini and
Ferri, 2018). The external stakeholders include banks, customers, smaller business delivery partners and Government.

Notes
Marks & Spencer
Vision
The vision statement of Marks & Spencer is to provide a standard against which the competitors can be measured from customers’ experience to care for environment
and to employee satisfaction. The key components in the statement are:
 Set a standard for competitors
 Customer and employee satisfaction
 Environmental care
Mission
The mission of the company is to make high quality accessible to everyone, through the depth and range of its products (Marks & Spencer, 2022). The components in
the statement are:
 Quality products
 Global reach
Objectives
The objectives of the company are:
 To provide quality products
 To operate worldwide
 To provide diversified products to the customers
Organizational and legal structure
The organizational and legal structure of Marks & Spencer is flat organizational structure. There is limited managerial level in the company between administrative
level and front line employees (Dukes and Zhu, 2019). Company has implemented this structure to encourage its employees to take part in decision-making process.
Stakeholders
The main internal stakeholders of the company are employees, managers and shareholders and investors. Employees of the company are directly involved in success of
the company as they put all their efforts in day to day operations. The external stakeholders of the company are local and national Governments, NGOs, suppliers, customers and
local trade associations and communities. Marks & Spencer works with Government to be aware of the changes in the policies and rules of different countries in which it operates.
Business functions in Marks & Spencer 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.
Operations
The other responsibilities of this function includes:
 Procurement of raw material
 Maintaining production quantity and quality
Human resource
The other functions of the department are:
 Recruitment and selection of employees
 Creating healthy work culture
 Training and developing employees to boost their morals
 Employee retention and handling grievances
Sales & Marketing
The responsibilities of department include:
 Market research and product development
 Customer service and relationship management
 Marketing and distribution services
Finance
The other responsibilities of finance department are:
 Evaluating different sources of funds
 Procurement of funds
 Preparing budgets and allocating funds to different departments
The interrelationship between each function would enable the organization in smooth functioning as each department has its own responsibilities to fulfil (Kar and Tripathy,
2021). It may also have negative impact as they may give priorities to their own departmental goals and there may be conflicts between departments.
CONCLUSION
Business organization is the entity which is developed for trade and commercial purposes. It is necessary to create organizational structure which would enable entity
to achieve the goals and objectives. The project has highlighted different forms of organization along with the background, organizational structure and stakeholders of different
entities. The project also evaluated different functions in the entity and the impact of interrelationship of different functions on organization.
REFERENCES
Books and Journals
Cusimano, S. and Sterner, B., 2020. The Objectivity of Organizational Functions. Acta Biotheoretica. 68(2). pp.253-269.
Dukes, A. and Zhu, Y., 2019. Why customer service frustrates consumers: Using a tiered organizational structure to exploit hassle costs. Marketing Science. 38(3). pp.500-515.
Joseph, J. and Gaba, V., 2020. Organizational structure, information processing, and decision-making: A retrospective and road map for research. Academy of Management
Annals. 14(1). pp.267-302.
Kar, B. and Tripathy, A., 2021. Variation in conflict behaviours at departments and levels of management. Prabandhan: Indian Journal of Management. 14(1). pp.25-43.Roberts,
V. Z., 2019. The organization of work: Contributions from open systems theory. In The unconscious at work (pp. 37-48). Routledge.
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.
Pedrini, M. and Ferri, L. M., 2018. Stakeholder management: a systematic literature review. Corporate Governance: The International Journal of Business in Society. 19(1).
pp.44-59.
Online
Berkeley Partnership LLP, 2020. [Online]. Available through: <https://connect2india.com/global/The-Berkeley-Partnership-LLP/200008044>
Marks & Spencer, 2022. [Online]. Available through: HYPERLINK "https://corporate.marksandspencer.com/aboutus"https://corporate.marksandspencer.com/