Pearson BTEC HND Business: Business and Business Organisation Report

This report provides a comprehensive analysis of business organizations, their structures, and functions. It begins with an introduction to various types of businesses in the UK, including micro, SMEs, and large enterprises, and explores different ownership forms. The main body of the report is divided into two tasks. Task 1 discusses the different types and purposes of organizations, focusing on private, public, and voluntary sectors. It also examines the size and scope of various organizations, such as micro, small, and large businesses, and links these to business objectives. Task 2 delves into the relationships between different organizational functions, such as marketing, finance, and HR, and their connection to organizational structure and objectives. The report also analyzes the advantages and disadvantages of interrelationships between organizational functions and their impact on organizational structure, concluding with a critical analysis of the complexities of different business structures and interrelationships of different organizational functions. The report uses General Motors as a case study, analyzing its operational role, breadth, and functional areas, and the impact of external variables using PESTLE and SWOT analysis. The report aims to provide a clear understanding of business structures, functions, and their impact on organizational performance and objectives.

Business and business organisation

Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
Part 1..........................................................................................................................................3
Task 1.........................................................................................................................................3
P1 Different types and purposes of organisations..................................................................3
P2 Size and scope of range of different types of organisation...............................................6
M1 Structure, size and scope of different organisations link to business objectives.............7
Task 2.........................................................................................................................................7
P3 Relationship between different organisational function and their link to organisational
structure and objectives..........................................................................................................7
M2 Advantages and disadvantages of interrelationships between organisational function
and its impact on organisational structure..............................................................................8
D1 Critical analysis of complexities of different types of business structure and
interrelationships of different organisational functions.........................................................9
Conclusion................................................................................................................................10
References................................................................................................................................12

Introduction
Business is considered to be a separate, efficient designed legal entity that can help
build a robust infrastructure that offers new goods and services that may contribute to
consumer attraction. In the UK, there are various sorts of firms with different features and
scale, such as micro, SMEs and big enterprises. The project covers a variety of firms and
various ownership forms such as individual traders, cooperative companies, partnerships,
corporations and many more. This research explores different structural forms and how the
company's structure may affect business productivity. General Motors, likewise excellently
among GM producers, is taken into account in this study. The declared firm is a worldwide
corporation based in Detroit, Michigan, United States. It was established in 1908 by William
C. Durant, Charles Stewart Mott, and Frederic L. Smith, 112 years ago. This is an automobile
type. The report will emphasise several aspects of the company's operational role ranging
from its breadth and the major functional fields of its employees. The analysis analyses the
impact on the company's performance of external variables using PESTLE and SWOT (Al-
Balushi and Durugbo, 2020).
Main Body
Part 1
Task 1
P1 Different types and purposes of organisations
There are many kinds of companies in the UK that may help improve people's living
standards and provide rural and urban people plenty of employment possibilities and target
the local community to live a good life. In the UK economy, the involvement of numerous
companies is grown and companies may have a strong effect on economic growth in the
country. The many sorts of companies considered by the UK market are described here.
Basic Private Public Voluntary
Definition A private
organisation is a
non-public
institution partner,
corporation,
The public sector
usually consists of
public enterprises
that serve their
people. Like the
A voluntary
organisation or
union is a collection
of individuals who
agree to establish a

individual or agency.
It includes all
companies which the
government does not
own or operate to
profit.
volunteer sector,
public sector
organisations are not
aimed at profit.
voluntary agency.
Common examples
are trade
associations,
agencies, literate
companies, business
groupings and
environmental
organisations.
Purpose Rather than earning,
voluntary
organisations have
the purpose of
achieving their
goals. Private firm
often implies that
people prioritise
things differently
than a company.
Usually, if buyers
can get the identical
product elsewhere at
a lower price, they
won't spend more.
Private firms, in
particular, are
cutting product and
service costs while
battling for their
clients' money.
Public enterprises
are traded openly.
By purchasing
shares of a
corporation,
investors can
become shareholders
of a public company.
The Company is
public because any
interested investor
may buy the
shareholdings of the
Corporation in
return.
Voluntary
organisations have
the purpose of
achieving their
goals. This often
implies that people
prioritise things
differently than a
company.
Strengths The private limited
company is
authorised to invest
The most obvious
advantage is the
ability to raise the
Social charities are
generally recognised
as existing. This can

100% of external
direct investment,
which means that
any foreign firm or
external person may
directly invest in a
private limited
company.
share capital,
particularly when
the company is on
the recognised
market. Since their
shares may be
offered to the public
and everyone can
invest their money,
their collected
capital typically
exceeds that of an
individual limited
enterprise.
help to raise money.
Weaknesses A limited scope of
financing for a
specific legal entity
shall never exceed
50 shareholders of a
private limited
corporation.
Shareholder of the
company and
ultimately
answerable to the
Board of a public
limited company is
more complex to
govern. Thus,
original owners or
managers might lose
control of the
management of the
firm, deal with
disagreement or
have to spend more
time monitoring the
expectations of
shareholders.
Work limits that can
be established or
sustained may be
subject to voluntary
work. Some political
activities and types
of trade are
prohibited.
Charitable
organisations must
comply with
regulatory
responsibilities, in
particular those
relating to annual
accounts and reports.

P2 Size and scope of range of different types of organisation
Organizations can be seen as organisations or organisations established for certain
objectives or purposes. In the present business world there are various types of organisations,
each up to the individual requirements of their businesses. The most usual way to
differentiate organisations is to evaluate their aims and ambitions. Some organisations work
for profit, while others work for a social purpose or to improve the social good. It is therefore
permissible for profit organisations but not recognized by NGOs (Aureli and et. al., 2020).
Micro business
Micro companies have incredibly small dimensions and require fewer funds to start
up a firm. They are comparatively small. With less than £2 million in revenue, fewer than 10
companies may operate.
Characteristics
 Minimum staff participation: This is a very small type of business, thus there is
limited participation by workers and other employees.
 Low profits: As the number of enterprises and transactions is decreased, the
profitability of micro-energy companies is lower than those of the owners.
 Slow production: Fewer production levels are governed by micro-enterprises and
lower production quantities are generated.
Small business
Specific businesses such as exclusive ownership, partnership and other collaboration
have their own private assets. Operations in such companies can be made by less than 50
people and sales of under £10 million.
Characteristics
 Small staffing teams: Limited firms are often employed by a small workforce since
less than50 people are involved, to enable the business owner to develop just a small
number of groups and employees.
 Tiny market areas: Small companies cover small market areas and sales locations.
Such a company just has a few markets and averages profit.
 Ownership of solo and partnership: this company has a private property and has a
distinctive ownership structure, including partnership and ownership.

Large business
Most of their businesses are governed by medium-sized businesses, including rural
and regional sectors and profitability compared to SMEs. In this sort of firm, less than 250
people can run and sales rate may be lower than £50 million.
Characteristics
 Take various resources into mind: Large firms need a high level of resources,
machinery and other materials to carry out their business properly.
 Huge profit margin: Large firms earn significant profits with their creative and
distinctive products. With their products and services, they may gain consumers more
competitive advantages.
M1 Structure, size and scope of different organisations link to business objectives
In order to achieve specific aims or objectives organisations can be characterised as
established groupings or structures. There are numerous sorts of organisations in the current
business world that each have the goal to satisfy the diverse demands of the companies in
which they work. The most frequent approach to differentiate distinct organisations is to
examine their aims and objectives. Some organisations are profit-making, while others might
advocate a social cause or improve social well-being. On this basis, it is feasible to
distinguish between profit organisations, not organisations and NGOs (Better, 2021).
Task 2
P3 Relationship between different organisational function and their link to organisational
structure and objectives
Most companies employ a functional chain of command organisation. In other words,
various functions are given to individual departments that report to department managers,
who report to an individual higher level. When individual have a functional organisation, you
benefit from defined powers, with key decision makers in each department who determine the
overall purpose and job (Das and et. al., 2020).
Marketing: These are one of the most significant components to help them build close
contacts with customers and with other companies. They also guarantee an active
participation in the various publication and customer contacts using efficient tools and
techniques to give a brand image of a certain company. The General Motors management
department of the company has been allocated to a distinct marketing department of the

company. The department is connected as a financial department in the functional field of the
firm, with the HR department employing employees in the appropriate staff.
Finance: These are another key department which monitors the various costs and
other legal requirements of the firm to preserve its profit during the investment process. This
department plays an essential function in controlling the efficient activities of the corporation
in respect to the selected manufacturing enterprise. It interlinks with others, as the marketing
department develops efficient marketing plans to ensure that the company's financing is best
used and the HR department engages people as a means of regulating the operational
company (Delatour and et. al., 2020).
HR: Companies successfully and strategically manage their internal work processes
and employ all company resources efficiently. They are more focused on an effective
recruitment process that engages the best individuals to improve production and the
advantages of the firm. The HR department is the most centralised department for the chosen
firm in which all the processes related to human resources management are conducted. The
financial department offers appropriate financial resources and marketing helps identify the
present availability of the department for recruiting in the other department.
M2 Advantages and disadvantages of interrelationships between organisational function and
its impact on organisational structure.
The most frequent structure among the three organisational structures chosen by most
organisations is a functional organisational structure. Corporations structured according to
their operations in the organisation by function group workers. Employees with human
resources have their own HR department, such as sales, marketing, finance and technical
assistance. Inherent advantages and drawbacks are in this method to organise a firm (Dwivedi
and et. al., 2020).
Advantages
Specialization: An organization's most evident benefit is that specialised grouping of
personnel provides a reliable departmental skill level. This is especially true for large
businesses with several departmental levels.
Operational speed: Operational speed is a related benefit of this type of organisation.
In general, a senior technology manages a support problem more quickly than someone with
less expertise. New staff members will certainly also be trained quickly.

Operational clarity: Workforce division explains organisational responsibility and the
assignment of tasks according to the function. This eliminates duplication of tasks that lose
time and effort and facilitates management in directing work to suitable personnel.
Disadvantages
Segregation: With the staff of departments specialised in certain areas of work, teams
are separated from each other. Workers of various teams do not have the chance to meet and
exchange prospects that might damage the company's growth in the long term.
Weakening of common bonds: The shared goal of the company enhances the moral
and performance of employees and is an essential indicator of organisational success. When
every group of experts in a functional organisation is largely isolated, there is almost
certainly a weaker link with a single overall objective than in an organisation in which
diverse types of staff meet often (Garigue and Firth, 2020).
Lack of coordination: Each group's responsibilities would not require input from other
functional groups in a perfect functionality, however it is not typically the case. As
communications in organisations grow increasingly dominating, isolated groups might fail or
fail to communicate requirements and concerns to other functioning groups, because they
have no institutionally recognised means of addressing them.
Territorial disputes: The potential of territorial conflicts is an additional drawback of a
functioning organisation strongly connected to the lack of cooperation between functioning
units. Such arguments may relate to differences about goals, budgetary competitiveness or
other questions arising from the clash of egos that arise in the absence of a clear
understanding of a shared purpose when each department has its own independent functional
organisation.
D1 Critical analysis of complexities of different types of business structure and
interrelationships of different organisational functions.
An organisational structure is a framework describing how some actions are aimed at
achieving the organization's objectives. It specifies employers' and employee's hierarchies
and identifies every position, its purpose and where the organisation itself reports to
(Kakabadse and et. al., 2020).
Functional organisational structure

Probably the most popular type, a functional structure organises a company based on
its shared functions. For example, companies using such a structure might divide all their
marketers into one department, then their distributors into another, and their customer support
staff into a new one.
Divisional structure
An organisational divisional structure divides functions among various branches: For
each product line, the division has its own functional units including marketing, research and
development, sales and accounts. If individual have various products. This strategy offers the
advantage of having staff in every area of the firm to do all essential tasks. Essentially, each
division may operate more or less independently.
Matrix structure
In this framework, all personnel have two reports depending on their circumstances or
project, reports to two managers. This is usually done in functional reporting and product-
based reporting. An employee, for example, works for a supervisor, but when a new project
comes up and they have to report to the project manager too (Rainnie and Dean, 2020).
Hierarchical structure
Within this organisation, the employees are ranked above each other at various levels
in the company. With the exception of the top workers, such as owner or director and
entrants, the staff will have a manager as well as subordinates.
Flat structure
Flat structure limits management levels in such a way that all workers are close to a
leadership degree. There are extremely few maturity levels in such a system and some do not
even have fixed levels. Employees are assigned their primary duties and work in line with
their skills to provide employees the opportunity to participate more and more in all activities
and to therefore influence decision-making processes (Santos Martín and et. al., 2020).
Conclusion
The study finds that different sorts of companies, such as micro, small, medium and
big, play the most essential function for the UK economy. Different types of ownership
arrangements exist in such research, such as individual ownership, co-operation, a public

limited liability corporation, etc. This study analysed several forms of organisational structure
and is regarded more suitable for large firms.

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