MGBBT0UBN - Business Organisations: Types, Functions, Culture

This essay provides a comprehensive overview of business organizations, exploring various types such as sole proprietorships, limited companies, and cooperative societies, along with their respective advantages and disadvantages. It delves into organizational structures, comparing flat and tall hierarchies, and examines key business functions including Human Resource Management, Operations, and Marketing. Furthermore, the essay highlights the significance of organizational culture and the positive impact it has on business performance, employee morale, and overall success. Examples from the hospitality and tourism industry, including companies like Mitchells & Butlers and British Airways, are used to illustrate these concepts, offering a practical understanding of how different organizational structures and cultures function in real-world scenarios.

MGBBT0UBN
Understanding
Business
Organisations

Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The aim of this essay is to give brief discussion about business organisation. Business
organisations can be referred as an enterprise which is incorporated with aim of doing
commercial activities by individuals or group of people (Rashideh, 2020). The major task of
business organisation is to provide consumers with goods and services as per their taste,
preference, need and demand. In general, it can be said that business organisations are formed to
generate profit or improvement of society. Several examples of the hospitality and tourism
industry that has been taken into account. The essay will include discussion on all above stated
hospitality and tourism industry. In this report a brief discussion is given on three different types
of organisation, flat and tall structure of an organisation is also discussed with its advantages and
disadvantages, three business functions and organisational culture with impact of positive culture
in an organisation (Park and Min, 2020).
MAIN BODY
Companies operating in different industries are experiences different kind of advantages
and disadvantages at the same time. With the evolution in business organisations different kinds
of industries were created which gave birth to different type of companies. Companies such as
Gilley Green which has a sole proprietorship in the United kingdom and is one of the renowned
salons of the country experience some advantage and disadvantages associated with kind of the
business type they have adopted(Kuter, Baker, and Gurskaya, 2022). The person enjoys the
freedom of taking decisions as he/she is the sole boss of the company, they are allowed to keep
the profits generated by the company all by themselves and enjoys privacy. The disadvantages
include that the person will be liable for the loss which is associated with the company, the
person can generate capital up to an extent and the pressure that they experience is tough to
explain. The another kind of business will be the company with limited liability one such
example is Virgin Atlantic, its comparatively easier to start an organisation and operate the
business functions, the business owners experiences some tax relaxations, the business owners
are pay a much lesser registration cost as compared to other businesses (JENKINSON, , 2020).
The disadvantages include the company is required to make their financials public, and have to
pay much higher tax as compared to other business organisations, even these business
organisations do not experience any tax relaxations. Cooperative is an another kind of business
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organisation and ARLA foods comes under this type of organisation the advantages that the
company experiences includes: Each member of the company experience equal participation in
the decisions with the help of the voting rights, the member’s experiences limited liability and
the organisation as many members as they wish to have. The disadvantage associated includes:
irrespective of the investment the members have made they enjoys equal participation which is
not a positive aspect, the legal limits the government has determined on the payment of the
members is not generally appreciated, the business is required to stick with the prising once
decided (Beinisch, 2022).
Hospitality and tourism industry are of major importance in the economy of The United
Kingdom which can signified with the contributions made by these industries sin the economies
of the nations. The structure that has been adopted by these industries and by their subsequent
companies such as Mitchells and Butlers which is one such example of an hospitality
organisation in the UK along with BRIT British Airways85.6(Taylor, Moore and Byford, 2019).
Which is one of the renowned tourism company in the UK. The organisational structures that has
been adopted by these organisation is a point of discussion as they are responsible for regulating
the process of these organisations(Clement, 2019). Shareholders are one of the decision makes
assisted by the board of directors and director, beyond which there is further bifurcation that the
companies structure goes through depending on their role and responsibilities which is mainly
divided in to the strategic office, administrative work which includes people who are responsible
for handling the technicalities and resource management, followed by individual responsible for
the customer service and then the sales department of the organisation(Bowen and Morosan ,
2018). British Airways on the other hand which operates in the tourism industry, the operations
of the business are being regulated by 6 members which shares the leadership responsibilities,
which includes the position of commercial directors, CFO also known as Chief Executive
Officer, Directors looking after the investments and the alliances that the company has formed
along with the engineering section which helps the company in taking care of their technical
functionalities, followed by people who look after the effectiveness of the organisational
structure and the way in which they are able to contribute in the company. Followed by general
council which looks after the issues that arises in day – to – day operations (Pencarelli, 2020).
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There are several functions that are required for smooth functioning of an organisation.
These functions are Human Resource management, Operations and Marketing. Human resource
management refers to the process of hiring, selecting, managing and recruiting the employees for
an organisation (Paulet, Holland and Morgan,2021). An important role is played by the human
resource department of every organisation as it prepares its employee for all the future
difficulties and responsibilities. This department also focuses on growth and development of the
employees which results in organisational growth and success. Human resource department of
Mitchell and butlers tries to build good relationship between the employees and the management
which helps in easy and effective functioning of the organisation. Business operations can be
defined as an activity that takes place for day to day functioning of an organisation. It helps the
business to increase their value, grow and earn profit (Chowdhury, 2020). It is very important
for every organisation to manage its business operations as it helps in management, control and
supervision of different functionalities of the business. BRIT British airways is one of the largest
operator and it operates 365 days all around the globe. Marketing can be defined as an activity
that is done in an organisation to promote its goods and services. The processes that include in
marketing is advertising, selling and delivering the product to its consumes. It can be done
through various modes such as advertisements in newspaper, television, radio, magazine and
social media etc. BRIT British airways is a global airways and it attract new consumer by
providing exceptional services to its client and it also offers different discounts and low fares to
its consumers (Carvalho and Alves,2022)
Organisational culture refers to the environment that is required in an organisation for its
smooth functioning. In simple word it can be stated that a proper way to behave is described in
the organisational culture of an organisation (Silver and Johnson, 2018). The culture of the
organisation tells about the norms, values, beliefs, tradition and custom followed by the
workforce of the organisation. The culture of the organisation plays a major role in improving
the workflows of the organisation and it also helps the employees in effective decision making.
A positive organisational culture helps the businesses in many ways such as it increases the
morale of the workforce, enhance efficiency and productivity of the employee, improves team
work in the organisation, increase employee engagement in the organisation and enhances
retention of the organisational workforce. It also provides job satisfaction, security and it also
reduces conflicts and stress among the employees in the organisation (Erthal and Marques,
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2018). Strong and positive organisational culture helps in building good interpersonal
relationships among the employees and it also aids in maintenance of good relationships with the
consumer and it act as a key differentiator for the organisation and it also gives competitive
advantage to the business over its competitors. The organisational culture followed by Mitchell
and butler chain of restaurants as they work on the values that drive from respect, passion,
engagement, creativity and innovation(Nicholson,2021). The organisation believes that these
drivers help the organisation to grow and run successfully. The organisational culture of BRIT
British embrace diversity, open mindedness, sense of responsibility and respect, fair play,
knowledge etc. which help the organisation to run smoothly and enhances the profitability of the
business enterprise.
CONCLUSION
In the above essays brief discussion is given on business organisation. It has also been
stated that every business organisation has its own work style and culture. Different kind of
organisation such as Sole Proprietorship, Limited company and cooperative society with its
advantages and disadvantages has been discussed in this report. The flat and tall organisational
structure has also been discussed with its advantages and disadvantages in the report. Several
organisational function such as Human resource management, Operations and Marketing has
been discussed in this report. At the end organisational culture and impact of positive
organisational culture on the business enterprise has also been highlighted in the essay. Examples
of different hospitality and tourism industry has been taken into account in order to briefly
describe above stated topics.
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REFERENCES
Books and Journals:
Beinisch, N., 2022. Value Chain and Regulatory Governance: The Case of Arla Foods in
Nigeria. In Africa and Sustainable Global Value Chains (pp. 303-322). Springer,
Cham.
Bowen, J. and Morosan, C., 2018. Beware hospitality industry: the robots are
coming. Worldwide Hospitality and Tourism Themes.
Carvalho, P. and Alves, H., 2022. Customer value co-creation in the hospitality and tourism
industry: a systematic literature review. International Journal of Contemporary
Hospitality Management, (ahead-of-print).
Chowdhury, S.J., 2020. Human Resource Strategies and virtual recruitment and activities of Arla
Foods Bangladesh.
Clement, F.H., 2019. Tall or Flat? Examining The Relationship Between Organizational
Structure and Turnover Intention (Doctoral dissertation, Azusa Pacific University).
Erthal, A. and Marques, L., 2018. National culture and organisational culture in lean
organisations: a systematic review. Production Planning & Control, 29(8), pp.668-687.
JENKINSON, M.W., 2020. THE AUDIT OF A PUBLIC LIMITED COMPANY. In The
Evolution of Audit Thought and Practice (pp. 218-231). Routledge.
Kuter, M., Baker, C.R. and Gurskaya, M., 2022. Profit Calculation in a Late 14th Century Sole
Proprietorship: The Case of Francesco Datini. Accounting Historians Journal, 49(1),
pp.15-28.
Nicholson, W., 2021. Mitchells & ButlersView scorecard.
Park, J. and Min, H.K., 2020. Turnover intention in the hospitality industry: A meta-
analysis. International Journal of Hospitality Management, 90, p.102599.
Paulet, R., Holland, P. and Morgan, D., 2021. A meta‐review of 10 years of green human
resource management: is Green HRM headed towards a roadblock or a
revitalisation?. Asia Pacific Journal of Human Resources, 59(2), pp.159-183.
Pencarelli, T., 2020. The digital revolution in the travel and tourism industry. Information
Technology & Tourism, 22(3), pp.455-476.
Rashideh, W., 2020. Blockchain technology framework: current and future perspectives for the
tourism industry. Tourism Management, 80, p.104125.
Silver, L. and Johnson, C., 2018. Internet connectivity seen as having positive impact on life in
Sub-Saharan Africa.
Taylor, P., Moore, S. and Byford, R., 2019. Cabin Crew Conflict: The British Airways Dispute
2009-11.
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