A Comprehensive Analysis of Business Organisations and Structures

This essay provides a comprehensive overview of business organizations, exploring different types such as sole proprietorships, partnerships, and public limited companies, along with their respective advantages and disadvantages. It delves into organizational structures, comparing tall and flat hierarchies, and discusses key business functions like human resources, marketing, and operations, highlighting their impact on organizational success. The essay also examines organizational culture, using Inter Continental Hotel and Resort as an example, and emphasizes the importance of a healthy work environment for employee motivation and productivity. The conclusion reiterates the significance of understanding various business types, structures, and functions for achieving organizational goals.

Understanding
business organisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A business organisation is a structure having legal identity created for the purpose of
carrying out a business activities or commercial activities with the view to obtain profits.
Business organisations are governed by certain laws and legislation which are especially made
fro regulating business conduct. Such laws and legislations may be a company law, contract law,
goods and services law, tax law or any other law which applies on business organisations
(Mohammed 2018). Business organisation requires human capital, fund, machineries, skilled
labour, raw material and many more things which are essential functionality of a business.
Generally, there are four types of business organisations namely, sole proprietorship, partnership,
corporation and limited liability. In this essay all the relevant extract shall me explained relating
to business organisation like advantages and disadvantages of different types of business
organisation along with examples. A comparison will be made between tall and flat structure of
an organisation, discussion will be made on the functions like human resources management,
production and operation, their impact and business faculties. At last explanation will be made
on organisational culture and their reputed sources.
TASK
Business organisation is an enterprise which indulge in various activities and operations
pertaining to professional, mercantile or occupational with the view to generate profits. Among
all forms of business organisation sole trader is relatively mos popular and easiest business type
that is formed , operate and control by single person. For instance, a restaurant called Little
French is a sole trade business which is owned by single person. The key benefit of such
business type is it offers more flexibility wherein owner is entitled to enjoy all the profits. The
owner of sole trade company has all the control over business operations including its assets and
property. For its inception it requires little capital and no expertise required. Such business have
the potential to give huge profits at low costing. The only drawback it has is the owner is liable
and accountable for all the losses or liabilities which may occur during the course of business.
Such business has the high risk of loss which may occur due to wrong decisions. It is often seen
that sole trade business have limited scope for their expansion as there is very limited scope for
their funding. The owner is the sole person who manage all the affairs of business which creates
hectic situation in terms of handling business management. The other business type is
partnership wherein, two or more person signifies their assent to form a partnership with the

view to carry out a business and share profits by making a partnership agreement. Partnership
offers several advantage to partners and the partnership firm, each partner is obliged to bring
their share of capital in partnership as it lower the burden in forming partnership firm. It also
provides many opportunities in terms of making decision and make strong market base. The
drawbacks in partnership is there is no single owner therefore no partners has the sole authority
over the business. Partnership can be dissolved in case if any partner left the partnership.
The other business type is Public Limited Company which is a more unique in nature which is
commenced by way of issuing shares and by listing company in stock exchange. For instance,
the Inter Continental Hotel and Resort is listed with London Stock Exchange. The key advantage
of Public limited company is that it can raise its share by the virtue of its listed status with
recognised stock exchange. Such listing is beneficial as it enable company to raise fund at times
of needs by issuing its share to general public. Through this method public are given
opportunities to invest their money in company which may give good return. In context to the
Inter Continental Hotel and Resort, the respective faculties of it makes huge effort to make
company successful. The only disadvantage associated with public limited company is it needs to
go through certain process of scrutiny initiated by its investors and regulators. Such companies
are more divert towards short term goals without focusing on long term objectives.
An organisational structure is the body of an organisation which collectively performs their share
of work in order to attain the principle objectives of a company. In an organisation there are
several departments which are set as layered which contributes in functioning of a company at
different level. The appropriate example of an organisational structure are tall and flat structure.
Tall structure signifies hierarchy functioning within the organisation in which a company is
bifurcated into several units which is lead by respective managers or leaders who carry out
required work. The system of hierarchy is important as it distributes the work among different
units and it makes easy to accomplish the objectives of an organisation (Jensen 2019). The
advantage of tall structure is that it looks over the matters at managerial level. It creates various
layer along with ascertaining limits and responsibility in order to clear the type of work. On the
other hand, flat structure that is also called horizontal structure in which company little or no
middle management between personnel and executives. Some of the management levels, which
are seem high sensitive towards market which is dynamic and localized management approach
are some of the flat organisational structure (Cosenz, and Noto,2018). There are several

opportunities which are avail in structure as to thrive business objectives. It offers more
flexibility and vest potential for implementing any desired change.
The principle objective of a business is to generate profits by carried out all the essential
activities of an enterprise which are determined under their constitution. In context of Inter
Continental Hotel and Resort, there are certain key functions of business which needs to be
followed are marketing and promotion of their products and services which they offer. The main
function of a business is its marketing which gives hype to business by promoting its service to
its customer. By applying this method company can attract large customer base. Digital
marketing is the best tool which helps inter continental to make better connection with its
customer and it may attract new customer. A good marketing strategy helps company to establish
its identity to its customer by communicating with them, it enhances brand value of it by
conducting several events and functions to attract mass audience with the view to thrive their
sales (Birinci, Berezina and Cobanoglu 2018).
Human resource department is one of the most important organ of the company which executes
several important works for the company like, recruiting new candidates, supervise employees
performance, organise activities and events at workplace, provide training to new recruits and
many more. Human resource team is given responsibility to ensure healthy and professional
relation of employees at workplace. It is the responsibility of HR to that all the employees at
workplace are satisfied with their work and foster confidence and motivation in them to value
their work with best of their ability. The other important component of a business is operation
which includes the process of conversion of input to output. Operations signifies execution of
task in a manner prescribed by the company and to offer the best service experience to its
customers. All the operational activities of a company is essential as they contribute in growth
by making its mechanism more more efficient. All these activities of a company collectively
plays very significant role in order to improvise and built strong market edge for its growth.
Work culture of an organisation is the practices and usages in which employees are directed to
work. These can be regarded as norms and values of a company which are enshrined in the
constitution of the company about how a company should run. To promote and share work
culture managers, leaders and mentors are given responsibility to make employees as per the
requirements of the company and work in such order. In this way company foster its working
environment and protect its value and culture. Healthy and friendly work culture have the

potential to boost confidence and motivate in employees to work honestly and diligently for the
company. In context to the Inter Continental Hotel and Resort, they follow the model of Handy's
culture which assist in shaping the various ways to work and how to behave within the
organisation. Whereas in power culture, company aims to function at centralized emphasizing
on process of decision making (Prasanna and Haavisto 2018). The work culture of Inter
Continental Hotel and Resort is healthy and friendly that makes employee feel motivated and
valued and it also provides various growth opportunities to eligible employees who show
dedication towards company. Company also reward and recognised its employees and conduct
training programmes by which employees can enhance their skills (Bhatta, 2020).
CONCLUSION
From the above assignment which is constructed in the form essay, it is evident to
conclude that in corporate world there are various forms of business types like sole trader,
partnership, limited liability partnership, public limited company. All these companies have
distinct advantages and disadvantages, different functions and operations. The structure of an
organisation which are called as flat and tall structure is the system of which underlines
procedure, roles and responsibility for employees. An effective and well organised
organisational brings productive outcomes for the company which helps in attaining the goals of
the company.

REFERENCES
Books and Journals
Bhatta, B., 2020. Insider Ownership and Investment Efficiency. QMS Research Paper, 13.
Birinci, H., Berezina, K. and Cobanoglu, C., 2018. Comparing customer perceptions of hotel and
peer-to-peer accommodation advantages and disadvantages. International Journal of
Contemporary Hospitality Management.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning, 51(1), pp.127-140.
Jensen, P.A., 2019. Organisation of FM in relation to core business. In Facilities Management
Models, Methods and Tools (pp. 300-306). Routledge.
Mohammed, A.M., 2018. Business resilience in an SME context: A literature review.
Prasanna, S.R. and Haavisto, I., 2018. Collaboration in humanitarian supply chains: an
organisational culture framework. International Journal of Production Research, 56(17),
pp.5611-5625.