MGBBT0UBN - Understanding Business Organizations and Their Impact

This essay provides a comprehensive overview of business organizations, covering various types such as sole proprietorships, partnerships, and limited liability companies, along with their respective advantages and disadvantages. It delves into organizational structures, comparing tall and flat hierarchies with real-world examples, and examines essential business functions like human resource management, operations, marketing, and finance. Furthermore, the essay emphasizes the critical role of organizational culture, exploring different types and highlighting how a positive culture can significantly impact an organization's success by improving teamwork, morale, productivity, and employee retention. The analysis underscores the importance of selecting the appropriate organizational type, structure, and fostering a positive culture to achieve profitability and sustainability in a competitive business environment; find more solved assignments and past papers on Desklib.

MGBBT0UBN Understanding
Business Organizations

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ..............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Understanding the business and its environment is considered has been said to be the
factor which is able to develop the understanding of the performance of the organization in the
operational environment of the business. This is the essay which is about the definition of
advantages and disadvantages different types of business. In addition to this it will highlight
structure of an organization along with the examples. This will offer understanding about
different business functions. It will pay attention on defining the organizational culture and how
positively impact on success of organization.
MAIN BODY
There are different types of the organizations which are basically executed for attaining
the distinct objectives. The distinct form of the firms includes sole trader, partnership, limited
liability company, non-profit organization and cooperative business. Sole trader is related with
having an unincorporated business that just has the one owner who is responsible for profits &
loss. There are different form of the advantages which are received by having the sole trader into
consideration which includes full profitability, maximum level of privacy, low start up cost, etc.
On the other side, the drawbacks which involves low capital raising capacity lower specialization
an unlimited liabilities. (Swaffield and et.al., 2019) Partnership business is concerned with
consisting two or more people who are combing their resources and sharing risk in decided
proportion for profitability and loss. The benefits which are required by using the particular
method involves bridging the gap in expertise & knowledge, higher availability of capital,
greater business opportunities and potential tax benefits. There are few limitations which are
basically experienced by the partnership business that involves difficulties of ownership, relative
lack of regulation and unlimited liability. Limited Liability Company is related with having the
business structure for the private organization. This gives the distinct level of advantage lower
registration cost, higher level of the flexibility and implicit, tax ease. This offers the certain
limitation which includes higher of complexity, self employment tax and liberalization. Public
limited firm is related with having the business which can be easily managed and directed &
owned by stakeholders. This offers the distinct level of the merits to the organization that
involves easily ability to raise finance, inclined negotiation opportunities with suppliers,
minimum personal liabilities, separate legal entity, etc. On the contrast to this, the demerits of

using this particular form of business expensive set up cost, complex accounting & reporting
requirements and greater risk sharing.
Tall organization structure has leaders & layers of management and uses top down
approach with a long chain of command. The layers are formulated between front line employees
and upper management (Sarja, Onkila and Mäkelä,2021). This allows to offer the ability to
have fewer employees reporting to each manager so that greater supervision can be made. In
comparison to this, it can be said that flat organization structure is related with having fewer
levels of management & small chain of command. This particular form of the organization
structure is related with empowering employees in respect to get greater sense of responsibility
and autonomy. This form of the organizational structure is associated with having the approach
of encouraging innovation and creativity process so that meeting demands of customers in
effective manner can become possible. There are certain limitations which are obtained by the
firm due to the application of the flat structure as compared to the tall that involve inability to
coordinate effectively for offering extensive form of supervision. For instance- Carisa Travel
Group operate sin the tourism sector and uses the flat organization structure as operate son the
smaller scale. This offers the benefits like lowered operational cost, better coordination, higher
productivity, etc which is allowing the firm to receive the significant ability to have effective
procedure so that meeting customers requirements in effectual manner can become possible.
Exodus travel is small company that is operating in the particular sector which is using the flat
structure for gaining the greater level of supervision in turn attaining the effective management
so that accomplishing the goal of effective working can become possible. On the other side, there
are various multinational companies that has the significant level of management can be derived.
Collettte is the international firm that is focusing on having the significant tall structure in its
organization so that effective working can be derived to attain goal of effectual processing. Hyatt
is international firm that uses tall structure which is aiding it to gain the more opportunities for
promotion so that greater level of support & supervision can be attained to have better working
procedure.
In the current era there are various requirements which are required to be accomplished
for gaining the significant competitiveness to meet the greater level of clarity and
competitiveness (ahlan, Abdullah and Suhaimi, 2021). There are distinct types of the functions
are performed in respect to have appropriate level of competitiveness that comprises human

resource management, operation, production, marketing, etc. that has impact on the overall
performance of enterprise. Production function is related with having the significant relationship
between the quantity & factors of inputs. It is one of the crucial department that aids in deciding
the level of financial, human and other resource requirements. The efficiency & overall
performance highlight get affected from the manufacturing procedure of company as aids in
ascertaining the market forces meeting ability of company. Operation management is related
with planning, scheduling, purchasing, controlling, quality and inventory control of the business
activities. It is an important function which is related with having the significant monitoring &
controlling procedure of the firm. Marketing is one of the significant function of the organization
that is related with spreading the awareness about the products & services in order to increase the
brand image in turn higher conversion rate can be derived. This allows the business to the
reliable understanding of potential demand in turn effective manufacturing process can be
exerted. It helps in building good relationship with customers and allows ascertaining lacking
areas so that reliable understanding of issues can be obtained for making required modification.
Financial department is associated with arising, allocating and controlling monetary resource in
turn needs of all department can be fulfilled in effective manner. In addition to this, information
technology is one of the highly required method in which proper collecting, analysing and
controlling of information is exerted to gain higher level of benefits in turn attaining the
profitability and attainability can become possible. With help of this organizational function the
company is gaining higher level of functioning in turn meeting the competitive positive to have
profitability by eliminating irrelevant aspects can be done in greater precise manner.
Organizational culture is concerned with the particular circumstances in which
workforce are required to work that is basically related with possessing the collection of values,
expectations, practices that are mandatory for staff to follow. It is one of the significant factor
that influences the performance of organization in positive & negative manner (The Impact of
Organizational Culture on Business Success, 2022). There are four types of the organizational
culture which involves adhocracy, clan, hierarchy and market which has distinct level of the
impact on the overall performance of firm. In order to be successful in the current working
environment it is important for the organization to focus on having the relevant course of action
which can favourably impact motivational level of employees. There are various kinds of the
aspects which formulates the positive working culture that involves having the effective

respectful, supportive, collaborative, etc. features in its working process. This basically
eliminates any kind of the irrelevant conflicts by developing belongingness and accountability
working pattern among workforce. In addition to this, there are different kinds of the benefits
which are derived by having the positive culture in organization that comprises improved level of
team work, raises morale, inclined productivity & efficiency, enhances retention of the
workforce, better extent of job satisfaction, collaboration, work performance, decline biasses,
etc. these benefits promotes efficiency and productiveness in organization so that attain higher
ability to retain competitiveness in respect to eliminate competition. On the basis of this it can
be interpreted that in order to become successful it is important for the firm to emphasize on
developing the effective and favourable organizational culture which allows to get the
competitiveness by gaining assurance of higher profitability, sustainability through optimum
utilization for resources to accomplish organizational objectives.
CONCLUSION
From the above information it can be concluded that business operates into the different
working environment which require firm to focus on having effective selection of the type so
that higher profitability & sustainability can be obtained. The current study has involved
different organization type which involves sole proprietor, partnership, private and public limited
company, etc. along with its benefits and drawbacks. In addition to this, it has involved the
organizational structure such as tall & flat comparison along with examples. This has comprised
different organization function which involves human resource, financial, operational,
marketing, etc. that helps in having smooth proceeding. Organizational culture plays crucial in
offering various benefits that positively affect success of business.

REFERENCES
Books and Journals
Dahlan, M.K.M., Abdullah, N. and Suhaimi, A.I.H., 2021, October. The Propose Organization
Structure for Digital Workplace. In 2021 IEEE Symposium on Computers & Informatics
(ISCI) (pp. 31-35). IEEE
Sarja, M., Onkila, T. and Mäkelä, M., 2021. A systematic literature review of the transition to
the circular economy in business organizations: Obstacles, catalysts and
ambivalences. Journal of Cleaner Production. 286. p.125492.
Swaffield, S.R. and et.al., 2019. Connecting business with the agricultural landscape: Business
strategies for sustainable rural development. Business Strategy and the Environment.
28(7). pp.1357-1369.
Online
The Impact of Organizational Culture on Business Success. 2022. [Online]. Available through:
<https://www.kaplansolutions.com/article/the-impact-of-organizational-culture-on-
business-success#:~:text=Forbes%20notes%20that%20companies%20who,is%20a
%20potential%20competitive%20advantage.>