Comprehensive Report on Business Organisations: Structure and Culture

This report provides a comprehensive overview of business organizations, encompassing different types such as sole traders, partnerships, and limited companies, each with their respective advantages and disadvantages. It delves into the comparison and contrast of organizational structures, including tall and flat structures, highlighting their characteristics and providing examples. Furthermore, the report examines the impact of functional management activities, such as human resource management, marketing, and production, on organizational performance. It also explores the significance of a positive organizational culture and its influence on business success, offering insights into how culture can drive growth and achieve goals. The report concludes by summarizing the key findings and emphasizing the importance of understanding these aspects for effective business operations.

Understanding
Business
Organisations

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Different types of businesses:....................................................................................................3
Compare and contrast organisational structure:...................................................................4
Impact of functional management activities on the organisation:........................................4
How positive culture can impact the success of the organisation:..............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation may be defined as an entity which paid focus on the different types
of industrial, professional and commercial activities whit a motive to earn more and more profits.
There are different forms of the business enterprises like limited company, partnership firm, sole
trader and many more which has its own advantages and disadvantages(Al-Dmour, Abbod and
Al-Balqa, 2018). The following essay is going to cover the different types of business
organisation with its advantage and disadvantage. This essay also paid focus on the comparison
and contrast of structures of the organisation along with the different department of the
organisation. This essay also defines the organisational culture and its impact on the success of
the organisation.
TASK
Different types of businesses:
Sole trader is the most common way of doing the business. This type of business is
owned by a single owner and it is very easy to set up because it is very low cost as in comparison
to other kinds of businesses. In this, the owner of the firm enjoys the whole profit which are earn
by the company they don't need to share the profits. Along with this the owner is also liable for
the unlimited liability. The advantage of this type of business is, it is easy to establish and low
amount of investment is required. The owner has full control over the decision-making and
profit. Apart from this, the biggest disadvantage of this for the business is these gives limited
profits with unlimited liability. The example of the sole proprietorship business is Novus
Accountancy Ltd. Partnership is another form of business which comprises of two or more
individuals as the owner of the firm. A partnership may be defied as an agreement between the
two or more individual which oversees the different operations of the company and share the
profits and liabilities in equal or agreed ratios (Gabrielli Russo and Ciceri, 2019). The advantage
which is associated with the partnership is this support each partner not only financially but also
physically and emotionally in order to run the business operations smoothly whereas, the biggest
disadvantage is the unlimited liability. The partners of the company are only liable for the
payment of the debt. The example of the partnership firm is Social Chain group limited. In
addition to this, limited company is another form business in which the owner of the business is
totally separate from the firm. The finances of the organisation are separate from the personal

finance of the owner. This is basically the general form of incorporation that limits the liabilities
undertaken by shareholder of the company. The main advantage of this is, this is a tax efficient
model and the owner is protected from any debts the company may incur whereas, in order to
established limited different types of complications can be faced by the owner.
Compare and contrast organisational structure:
Tall and flat structure of the business is being considered as one of the most important
methods which comprises of different levels of the organisational management. In this structure,
the CEO of the firm top most position and the main person of the organisation. The CEO of the
company is responsible for taking the decision in relation to the development of the firm and
manage the various levels of management (Jusoh and et. al., 2020). The flat organisational
structure is also known as the horizontal organisational structure which comprises of few levels
of management and involves many people in the decision making. For example, like Hyatt
Hotels Corporation has various numbers of employees in the organisation that comprise of big
line of command. So, this firm follow the flat organisational structure. There is different level of
management within the organisation between the superiors and subordinates. On the other hand,
tall organisational structure may be defined as that structure in which the organisation has broken
down into the distinct hierarchy. For example, like British Airways follow the tall organizational
structure. In this, the organisation has numbers of manager who are responsible for managing
their portion of organization. In comparison to the flat organisational structure the tall
organisational structure has low number of management level and lower chain of command. In
the tall structure the business empowers the employees in order to understand the sense of
responsibility and autonomy within the business (Kirchner and Minnis, 2018). On the other hand,
in the flat organisational structure, the workers of the company are highly motivated in order to
attain the set objectives of the firm and support each other’s to resolve the conflicts.
Impact of functional management activities on the organisation:
Human resource management is being considered as one of the most important
functions of the organisation which are responsible for motivating, hiring, recruiting, resolving
conflicts between the employees of the company (Stojanović and et. al., 2020). Along with this
they are also responsible for developing different types of training programme for their
employees. The HR manager of the company always try to motivate the employees so their
engagement as well as job satisfaction level has been increases which not only improves their

productivity but also improves the performance level of the company. For example, like Human
resource management of the intercontinental hotel develop various types of strategies in order
motivate the employees and give them positive working environment. This not only improves
employee’s productivity level but also helps them to retain in the company for a long time
period. The marketing department of the company is being considered as that department which
are responsible for developing different marketing strategies and drives the promotional engine
for the business. With the help of this function the image of the company in the market has been
enhanced and effective relationship can be developed with the customers (Mayali, Altwelee and
Azeez, 2020). This division of the firm promote the goods and services and develop effective
marketing plan which assist in increasing the loyal customer base and profits. For example, like
the marketing department of the Bakers group of UK develops different types of strategies in
order to increase their customers base which lead to increase in the profits for the firm.
Production function may be defined as the manufacturing of goods and services from raw
materials to finished products. It is very important for the company as it helps them in improving
their production process and helps the company in delivering these final products to their
customers in exchange for money or something of similar value for the company. Production of
the goods and services are managed by the manufacturing department. Therefore, effective
manufacturing helps organizations make the best use of all resources to improve production,
which can assist in cost savings and increased profits (Missimer and Mesquita, 2022). For
example, Unilever Plc employs a variety of effective manufacturing strategies that help in
eliminating the waste within the organization, ultimately leading to increased profits for the
company.
How positive culture can impact the success of the organisation:
Organizational culture may be defined as the combination of practices, expectations, and
values that guide various business practices which can affect an organization's failure and
growth. The influence of organizational culture is more important in several sectors, including
hospitality. It is an aspect that is valued and manage with the goal of maintaining the vision,
mission, and values carried out by the different members of the company (Popova and et. al.,
2021). For example, Hilton hotel managers can take a positive attitude from employees to
customers, guests and even suppliers, helping to create the bright environment that hotel
customers need. Also, different types of people within the organization shared initial knowledge.

The culture of the firms full of ethics, beliefs and actions that lived in the companies. Therefore,
one of the best organizations in hospitality is like the right culture that guides all by faith. In
organizational culture, each member of an organization paid emphases on achieving their goals
which improve the performance.
CONCLUSION
From the above report it has been concluded that there is various form of business-like sole
trader, limited company, partnership and many more. All of these has its own advantage and
disadvantage. This report also concluded that, the firm have different types of structure which
assist them in allotting the responsibility and duties to the company employees in proper manner.
In addition to this this report also concluded the functions of the organisation along with their
impact on the business.

REFERENCES
Books and Journals
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reporting on non-financial business performance and the role of organizations
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of Organizational Change Management.
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Kirchner, M. and Minnis, S., 2018. Engaging military friendly in organizations: An empirical-
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Missimer, M. and Mesquita, P.L., 2022. Social Sustainability in Business Organizations: A
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Popova, N and et. al., 2021. Marketing aspects of innovative development of business
organizations in the sphere of production, trade, transport, and logistics in VUCA
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Stojanović, E.T and et. al., 2020. The relationship between organizational culture and public
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