MGBBT0UBN Understanding Business Organisations: Types & Functions

This essay provides a comprehensive analysis of business organizations, focusing on various business types such as sole proprietorships, partnerships, and limited companies. It examines the advantages and disadvantages of each type, using examples like The Little French Restaurant, Hilton London Bankside, and InterContinental Hotels Group. The essay also delves into organizational structures, comparing tall and flat structures and their impact on communication and decision-making. Furthermore, it discusses key business functions like human resource management, marketing, and operations, highlighting their role in achieving organizational goals. Finally, the essay emphasizes the importance of organizational culture, particularly in the context of the hospitality and tourism industries, using InterContinental Hotels Group as a case study to illustrate how a strong organizational culture can contribute to business success and attract customers.

Business types and
functions

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

INTRODUCTION
Business organisation refers to the entity settled for the aim of carrying on commercial
company. The objective of business is to attain and accomplish their desired goal on particular
time. The purpose of the essay is to gain understanding of internal or external environment of
company in which it operates. In tourism industry, main criteria opted by the business
establishments includes effective sustainable planning making, enhancing culture heritage,
maximising economical and social benefits and minimizing negative effects to the environment.
This essay covers different types of business, structure, functions and culture.
MAIN BODY
Types of business
For every individual it is important to decide the form of business to establish (Arce,
2021). First kind of business is sole proprietorship which is least expensive and simplest way to
open a business in the market. It helps The Little French Restaurant owner in achieving overall
revenue for their own as they are a single owner of the entity. Their business gross flow straight
with their private tax return. The establishment and operation of The Little French Restaurant is
simple and easy. The Little French Restaurant owner can easily make changes in their legal and
business structure. At the same time, there is no legal differentiation between business and
personal aspect so entrepreneur have unlimited liability for debts (Vyakina, 2019). Their
capability to increase capital is limited. For all the day to day decision making and operation
management, the owner is responsible (Bovven, 2019). Second business type is partnership
which is a formal arrangement by two or more individual and parties with the aim of operating
and managing a company and share its revenue or profit at the fixed percentage of share. For
Hilton London Bankside it is easy to start the business without any registration in companies
house (Hilton London bankside, 2022). It aids all the partners of Hilton London Bankside in
gaining skills, knowledge, contacts and experience. It assess Hilton London Bankside partners in
taking better and proper decision for the day to day operations. At the same time the partners
have to face unlimited liability as the entity do not have separate legal personality (Bugdol,
2018). There can be conflicts and differences in the business between partners. They have
limited access to capital as they find it difficult to invest money. The third type of business is
limited company which is a general form of incorporations and legal structure that limits the
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liability of company subscribers or shareholders by the way of commitments and investments
(Weaver, Yardley and Emmerich, 2021). InterContinental Hotels Group managers have
minimum personal liability as the losses are the companies responsibility only. The professional
image and status of InterContinental Hotels Group is going to improve (Intercontinental Hotels
Group, 2022). With higher profits in business shareholders is going to get higher personal
remuneration. At the same time members of company have to pay incorporation fee. The
accounting requirements of InterContinental Hotels Group is going to be time consuming and
complex and they have to hire accountant for their tax affairs.
Structure of an organisation
There are two type of structure first one is tall structure, in this there is a top level
management or CEO sits on the top of the organisational chain and directs and give command to
the workers with different level of management underneath (Carroll and Gillen, 2019). For
example, tall structure is followed in InterContinental Hotels Group and it provides more
opportunities for promotion which helps managers of InterContinental Hotels Group to motivate
their employees. The managers completely and properly support and directs their workforce to
attain organisational goal and success (Davydova and Koneva, 2020). It also have some
disadvantage as this structure is less flexible, every communication and decision have to travel
through many managerial stages. Their will be less creativity because employees have to wait for
the orders and complete task according to their top managers. Whereas the second one is flat
structure, it is very flexible and includes fewer management levels and more autonomy of
workforce in the process of decision making (Den Hertog and Bilderbeek, 2019). For example,
flat structure is followed in Little French Restaurant and it improves the cost structure of the
organisation. There is a less miscommunication between people working in it and increase the
morale of their employees. At the same time this structure can limit Little French Restaurant
productivity. Due to less people there is lack of responsibility as employees have to perform a lot
of work at the same time (Wu, Buyya and Ramamohanarao, 2020).
Business functions
Business functions are related to the day to day operation that are carried out by the
organisation in order to attain higher goal and income (DePaula, Dincelli and Harrison, 2018).
In reference to InterContinental Hotels Group, the important business functions are human
resource, marketing and operations. The first function is human resource management which is
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related to hiring, motivating, administering and retaining people. In InterContinental Hotels
Group, human resource management mainly focus and work on needs of their people and deals
with documentation for inquiries to motivate them in order to attain organisational goal. Another
function is marketing, its main aim is to promote companies offering and providing goods and
services to the large number of customers (Fayziev, 2020). It helps organisation in attracting
more people all over the world and in gaining sustainable advantage over others in the market.
Another function of business is operations, it includes all the day to day functioning in the
company. It converts inputs into fished goods to sell them to the customers. In InterContinental
Hotels Group, managers manage and handle their daily operations and manufacture goods and
services according to their customers satisfaction in order to achieve goal and success.
Organisational culture
It is the accumulation of values, activities and expectations that gives map to employees
behaviour and understanding in the business organisation (Freudenreich, Lüdeke-Freund and
Schaltegger, 2020). It mainly have impacts on the organisational success. Every business must
have strong efforts that makes their people feels themselves the component of something finer.
Organisational culture contains different sources in the business like their structure, ethics and
rights according to their employees. Having harmonious relationship and financial stability in the
business is also a part of organizational culture (Helfat and Raubitschek, 2018). InterContinental
Hotels Group have very reputed organisational culture in the UK market. Their management also
working to improve it continuously by implementing different strategies. Having a good
organisational culture benefits this hotel to attract more customers. Tourist comes to United
Kingdom for tourism purpose or people come for any other work chooses this hotel only due to
great organisational culture (Humphrey, 2020). So, we can also say that it have contribution in
tourism industry of the economy. It have expertise staff, who provides great hospitality to the
customers that enhance their cultural reputation in the hospitality industry. Management also
frame different strategies for their organisational culture to improve hospitality in
InterContinental Hotels Group. This hotel is using clan culture in their business premises which
is people oriented organisational culture. This culture made friendly relations between customers
and organisation that leads in influencing profitability of the business organisation (Lin, Bruning
and Swarna, 2018). InterContinental Hotels Group have crucial role in contributing to both
hospitality and tourism industries of the UK economy.
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CONCLUSION
From the above essay, it is concludes that the company operates their operations
according to the laws, contracts, rights and many more which is signed in the organisation. There
are various type of business which includes sole trader, partnership and limited company. The
structure of the company is very important to be followed which are of two types, first one is tall
and second one is flat. The functions of business plays an important role in attaining
organisational goal and success. Some of the functions are human resource management,
operations, marketing and many more. Organisation culture influence nature of plans and build
workplace environment which helps business in long term sustainability.
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REFERENCES
Books and Journals:
Arce, D., 2021. Integrating Giving Voice to Values across Business Fields and Functions.
In Giving Voice to Values (pp. 56-71). Routledge.
Bovven, T., 2019. FUNCTIONS AND USAGE OF THE DEBT CAPITAL. In Colloquium-
journal (No. 13-10, pp. 15-16). Голопристанський міськрайонний центр зайнятості=
Голопристанский районный центр занятости.
Bugdol, M., 2018. The Definitions, Types and Functions of Discipline as Well as Factors
Influencing Discipline. In A Different Approach to Work Discipline (pp. 1-53). Palgrave
Macmillan, Cham.
Carroll, S. J. and Gillen, D. J., 2019. Are the classical management functions useful in describing
managerial work?. In Managerial Work (pp. 291-304). Routledge.
Davydova, A. A. and Koneva, A. A., 2020. Small Business: Essence And Functions. Business
Strategies.
Den Hertog, P. and Bilderbeek, R., 2019. The new knowledge infrastructure: the role of
technology-based knowledge-intensive business services in national innovation systems.
In Services and the knowledge-based economy (pp. 222-246). Routledge.
DePaula, N., Dincelli, E. and Harrison, T. M., 2018. Toward a typology of government social
media communication: Democratic goals, symbolic acts and self-
presentation. Government information quarterly. 35(1). pp.98-108.
Fayziev, T. R., 2020. FUNCTIONS AND TYPES OF MANAGEMENT IN SMALL
BUSINESS. Мировая наука, (3), pp.48-51.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2020. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business
Ethics. 166(1). pp.3-18.
Helfat, C. E. and Raubitschek, R. S., 2018. Dynamic and integrative capabilities for profiting
from innovation in digital platform-based ecosystems. Research policy. 47(8). pp.1391-
1399.
Humphrey, D. B., 2020. Distance functions, bank output, and productivity. Journal of
Productivity Analysis. 54(1). pp.13-26.
Lin, H. C., Bruning, P. F. and Swarna, H., 2018. Using online opinion leaders to promote the
hedonic and utilitarian value of products and services. Business horizons. 61(3). pp.431-
442.
Vyakina, I. V., 2019. Security of business operations and supervisory functions of the state as
characteristics of the business environment. J. Advanced Res. L. & Econ.. 10. p.1696.
Weaver, G. A., Yardley, T. and Emmerich, D.P., 2021, October. Continuous Infrastructure
Assessment for Key Business Functions in Changing Environments. In 2021 Resilience
Week (RWS) (pp. 1-8). IEEE.
Wu, C., Buyya, R. and Ramamohanarao, K., 2020. Modeling cloud business customers’ utility
functions. Future Generation Computer Systems. 105. pp.737-753.
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Online:
Hilton London bankside. 2022. [Online]. Available through:
<https://www.hilton.com/en/hotels/lonsbhi-hilton-london-bankside/?
WT.mc_id=zINDA0EMEA1HI2PSH3GGL4INTBPP5dkt6CTYHOCN7en_&epid!_&ebuy!_
%7bdskeywordid%7d&gclid=EAIaIQobChMIjazmh7aW-
gIVI5lmAh14Hw5HEAAYASAAEgKvevD_BwE&gclsrc=aw.ds>
Intercontinental Hotels Group. 2022. [Online]. Available through: <https://www.ihgplc.com/en>
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