MGBBT0UBN - Understanding Business Organisations & Environments Essay

This essay provides an overview of business organizations, including different types such as sole proprietorships, partnerships, and limited companies, outlining their advantages and disadvantages. It compares tall and flat organizational structures, using Premier Inn hotel as a corporate example of a flat structure, and discusses the role of functional units like human resource management, marketing, and sales in achieving business objectives. The essay also emphasizes the impact of organizational culture on business success, highlighting Premier Inn's shift to a more dynamic and flexible culture to improve employee satisfaction and adapt to market changes. The importance of understanding these aspects for effectively managing a business organization is underscored, with references to relevant academic sources.

Understanding Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
REFERENCES................................................................................................................................7

INTRODUCTION
When it comes to managing business there are different factors that needs to be
highlighted such as the organisational structure, the culture been practiced in an organisation
how it affects the human resource and the business success. Following a positive working culture
drives the human resource towards attaining efficacies and productivity at work. This report
briefly talks about the definition and outline of merits and demerits of different types of
businesses such as sole trader, partnership, limited company. The comparison and contrast of
organisational structures such as tall and flat structure of an organisation. Discussion about the
functional units of the business such as human resource management, production, operation et
cetera and how it impacts on the business performance and the human resource of an
organisation, how the positive culture affects a business success and organizational
performances. Where each and every discussion is briefly outlined by corporate examples to add
relevant information in real life examples (Aldous, 2018).
What is sole trader businesses - Sole trader are businesses that are operated by single owner who
owns the business and runs by himself/herself. The advantages of sole trader business are: In sole
trader business is the profit is being enjoyed by the single owner. The overall business cost for
capital expenditure of the business is all over minimum. The owner enjoys the privacy. The
disadvantages of Sole trading are: There is unlimited liability for debts, The sole trader business
has limited capacity in order to raise capital and The taxes of the business are to be beard by the
owner of the business, the life of the business is limited (Anitha, 2016). The examples of sole
trader businesses can be plumbers, hairdressers, electricians and other self-employed people.
What is Partnership businesses? Partnership business can be defined by such businesses that are
formed by a legal contract between two or more partners agreeing for sharing common vision to
operate the business activity and share its profits. One such example of partnership business is
“Pret a manger” which is a UK-based partnership business, headquartered in London, UK and
established in the year 1983. This business is famously known for offering food services to its
global customers (Beynon-Davies, 2021). The advantages in Partnership businesses can be:
Financing the business is more convenient with number of partners, The business losses are
shared among the partners and Collective decisions can be made. Disadvantages of partnership

business can be: There is differences and conflicts in the organisation due to clashes of opinion
between different partners, in partnership the legal existence of the business is not different from
its partners and The partners in the partnership firm and liable for the debts and losses as the
business does not have a separate legal entity.
What is limited company? A limited company is a business that have a separate legal existence
and entity which is different from its owners and partners. The business operates separate from
its owners. Further, the limited company can be divided into private limited, public Ltd, limited
liability partnership, private unlimited company. One such example of public limited company is
Premier Inn hotel which is a UK-based business, headquartered in London, UK founded in the
year 1884 by Thomas Marks and Michelle Spencer. This public limited company delivers variety
of market offerings to its international customers (Carvalho, 2019). The advantages of limited
company are: The personal liability of the owners is being minimized, The business exists within
a separate legal entity which means the business is been identified as a legal person having its
own right and A limited company adds credibility and trust to the business owner. The
disadvantages of limited company are: The accounting treatment for business transactions are
very complex, The personal and corporate information of the owner lacks privacy and Owners
needs to pay incorporation fee to company house. Differences between tall and flat
organisational structure - Tall organisational structures are determined by a business structure
which involves many levels of hierarchy (Dubey and Singhal, 2016). Flat organisational
structures such business structures that have limited levels of hierarchy. The span of control is
narrow The span of control in flat organisational structure is wide (Elsmore, 2017). It becomes
very expensive for managing tall organisational structure. The cost incurred is comparatively
minimum compare to a tall structure. The government agencies example of tall organisational
structure that follows complex organisational structures and many levels in the business. The
example of flat organisational structure can be Premier Inn hotel which is a British multinational
business, Headquartered in London, UK. Premier Inn hotel follows flat organisational structure
that helps to reduce the bureaucracy rather focus on decision-making and communication, the
supervisor and the executives of the business can get directly in touch with the managers and the
other working staff (Gillam and Cosford, 2021). The overall business objectives are being
divided into different functional units such as human resources, sales, production, finance,
operations and others. These functional units are responsible for adding the business operations

and ensure that these functional activities are carried as per predetermined standards and
structure (Goldman, Nienaber and Pretorius, 2015). Taking Premier Inn hotel has chosen
business organization. In context of Premier Inn hotel let us understand the different role of
functional units which are human resource management, marketing and sales.
Human resource management - Premier Inn hotel deploys human resource manager who is
responsible managing the human capital of the business. Human resource manager in Premier
Inn hotel is delegated with number of responsibilities such as recruiting and identifying the
skilled candidate at work, compensation to the employees, training and development,
scrutinizing the performances of the employees and every other activity that focuses over
individual development and productivity at work (Jackson and et.al., 2017). Marketing -
Marketing activities focuses about promoting the products and services of the business and
communicating the marketing objectives with the end prospects. The marketing functional
activities in Premier Inn hotel enhances the communication and other core competencies of the
individual at work and supports the business in order to meet the timely targets of managing
consumer relationship and establishing strong consumer perception. Sales - The sales unit is also
an important and a core business function that determines the effectiveness of market offerings.
The selling unit in Premier Inn hotel, the employees been delegated for engaging with the
consumers which helps to enhance their communication skills of the working staff and other
analytical skills to calculate and forecast the estimation of sales figure (Maheshwari, and et.al.,
2017). Organizational cultures consist of values and beliefs that determines the relationship of
human capital at work. After the success of Premier Inn hotel, wherein the business association
believed that it does not need to change its culture, thus, it followed inflexible and rigid corporate
culture since the company became successful. However, when it became clear that the old
traditional culture was not doing good well to cope up with the change and demand in the market
environment. Premier Inn hotel decided to change its corporate culture. Now, the corporate
culture followed in Premier Inn hotel is more dynamic and flexible. As a result, the positive
working culture followed by the association supported the working staff to become less
resistance to change, they started doing their work following new ways a new pattern. Employee
satisfaction was majorly accomplished wherein the working staff were willing to work for longer
period of time. Premier Inn hotel also runs learning and educational program in order to enhance

the skill set and knowledge of the employees so that they are able to cope up with the changes of
the dynamic business environment (Miskiewicz, 2017).
Thus, in a nutshell, it can be said that in order to effectively manage a business organisation, a
business needs to keep in note different aspects such as different functional units, the structure
followed, culture practiced depended upon the businesses. The positive working culture greatly
impacts and benefits the business organisation where in it hasten the process of communication
and decision making, reduces conflicts in the workplace and operates the operational activities of
the business in the most legal or ethical manner. The functions of the business determine that
overall objectives are being segregated into different units which are responsible for managing
and carrying the business goals. Apart from that, there are different types of organizations
depending upon the capital, size, number of employees, in cooperation, and other factors. The
discussion also reflects about different organizational structures and supported with corporate
examples and relevant information.

REFERENCES
Books and Journals
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Beynon-Davies, P., 2021. Business Analysis and Design: Understanding Innovation in
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Carvalho, A. M. 2019. Operational excellence, organisational culture and agility: the missing
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Dubey, A. and Singhal, A. K., 2016. Role of organisational structure in empolyee's
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Elsmore, P., 2017. Organisational Culture: Organisational Change?: Organisational Change?.
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Gillam, S. and Cosford, P., 2021. Organisational structure. In Leadership and Management for
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