A Comprehensive Analysis of Business Organisations and Environments

This essay provides an overview of various business organizations, including sole proprietorships, partnerships, and limited liability companies, highlighting their advantages and disadvantages. It discusses the importance of selecting the appropriate organizational structure, such as functional or divisional, based on the business type to maximize benefits. The essay also touches upon the impact of functional management activities on organizations and their environments, using Marks & Spencer as an example of a public limited company. The analysis covers aspects like decision-making speed, risk-sharing, and liability considerations associated with each type of business organization, offering insights into the complexities of business structures and their operational implications.

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
Advantages and Disadvantages of Sole Proprietorship, Partnership as well as Limited Liability............3

INTRODUCTION
Business organisation for the effective growth and success needs the management of
appropriate type of the organisation strategies according to the market needs, such as
organisation is can be sole trader, partnership, limited liability and corporate organisation. This is
having there own type of the benefits and disadvantages. Such as in sole trader owner posses the
higher control over organization and its profit. In partnership type of the organization owner is
getting the higher benefits of resources and partner support and risk factor is insecurity and
conflict, in the limited liability ownership, organization get the opportunity of offering their
liability to the public and get shares for the organisation and in other hand this can make higher
responsibilities over the owner. Their are the different type of organisation structured such as
functional and divisional which have to be selected by the organisation on the basis of their type
of the business in order to get the appropriate benefits from that. mark spencer is the organisation
is the British multinational retailer headquarter London, England and this is public limited
company.
TASK 1
Advantages and Disadvantages of Sole Proprietorship, Partnership as well as Limited Liability
Sole Proprietorship
Advantages
 In this type of organisation owners easily develop and operate the business without any
legal formalities.
 In this decision making is also done very fast because there Is only one boss within the
organisation
 In this employees easily understand what they have done Clearly because of flat
organisational structure.
Disadvantages
There are also certain disadvantages of sole proprietorship such as the risks as well as
threats as well as losses have to be borne by the owner of the project and also, there is unlimited
liability (Brennan, R., Canning, L. and McDowell, R., 2020). Apart from this, there is a limited scope
of bargaining as the owner cannot bargain much.

Partnership
Advantages
There are various types of advantage under partnership form that are presented below:
 In this loss and profit are to be share in t5he partners that does not create pressure on the
mind of the partners to work effectively.
 In this partners are the decision maker and share all profits and loss as per the
partnership deed.
 Their start-up cost is very low and in this there is no burden on individual to invest in
more capital.
Disadvantages
The disadvantage of partnership is that there can be disagreements as well as loss of
autonomy. Apart from this, there can be complications in the future when the business has to be
sold. Apart from this, there can also be some emotional issues.
Limited Liability
Advantages
It has several advantage that are presented below;
 In this member’s emphasis on personal assets from the liability of the business
operations. It does not have separate legal identify from the company.
 In this flexibility is to be maintained.
Disadvantages
One of the main disadvantages of limited liability is that the profits that are earned by the
business are subject to social security. Not only this, there are lesser fringe benefits and it is
important for the owners to recognize the profits immediately.

REFERENCES
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing. Sage.