MGBBT0UBN - Understanding Business Organisations Essay 2021

This essay provides a comprehensive understanding of business organizations, defining them as entities focused on commercial enterprises that offer products and services to meet customer needs. It discusses various business types, including sole proprietorships, partnerships, and limited companies, outlining their advantages and disadvantages. The essay compares hierarchical and flat organizational structures, highlighting the impact of business functions such as finance, sales and marketing, human resource management, and operations on organizational management practices and individual roles. Furthermore, it emphasizes the significance of organizational culture, particularly how a positive culture contributes to a company's success, using examples such as Marks and Spencer. The report concludes by summarizing the importance of business organizations, their structures, and functions in achieving business objectives and fostering a positive work environment.

Understanding Business
Organisations

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Definition and outline three advantage and disadvantage of various types of business.............1
Compare and contrast organisational structures.........................................................................2
Discussion of business functions and its impact of their functional management practices on
company and individuals.............................................................................................................3
Organisational culture ans explanation of how positive culture impacts on success of
company......................................................................................................................................4
Example of industry practice.....................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business organisation is defined to an entity which is focussed in performing
commercial enterprise by providing products and services for meeting requirements of customers
(Matshabaphala and Grobler, 2021). There are basically various types of business companies
which are sole proprietorship , limited partnership, general partnership and so on. They are
basically structured and it could help them in meeting their desired objectives. Companies are
basically designed to keep their focus on generating profits and enhancing society level. Business
organisations are carried in order to generate profits for them by providing services (Oladinrin,
Jayantha and Moses, 2021). This report is based on understanding business that states about
various companies. This essay report consists of merits and demerits of various kinds of
business and comparison of organisational structures. It also includes understanding of various
business functions and its impact on their functional management practices with organisational
culture with explanation of impact of positive culture for success with industry practice followed
by its conclusion.
MAIN BODY
Definition and outline three advantage and disadvantage of various types of business.
Some of various types of companies are as follows:
Sole trader: It is a type of business in which individual who owns their business as well
as retains all profits from it. This ownership is basically owned and run by single individual.
Some of advantages of sole trader business is that ownership keeps all profits that are generated
by business. There is maximum privacy with a secrecy and sole trader business is easier to
change their legal structure with any uncertainty (Odiba,Demian and Ruikar, 2021). Some of
disadvantage of sole trader is that owner has unlimited liability of debt. Capacity of raising
capital is limited and in this business it becomes difficult to retain highly effective employees.
Partnership: It is a type of business where two or more than two individuals begins to
oversee business operations as well as share their profits and liabilities. They generally agrees to
cooperate to their advance mutual interests. Some of merits of partnership is that this business
could create more capital for business (Bell and Hofmeyr, 2021). Partnership business provides
greater borrowing capacity and partner's business affairs are private. Along with it also carries
some of disadvantage which is that it liability of this business for debts are unlimited. There is a
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risk of disagreement and friction between partners and management and every partner is liable
for any action of one partner.
Limited company: It is defined to a type of business where liability of members and
subscribers of business are limited. Company could be limited by share or by guarantee (Lestari,
and Juwana, 2021). Some of advantage of limited company is that this types of business focus
of minimising liability. Along with professional image of business will enhance and there is tax
efficiency and planning. And some of disadvantage of company is that limited companies should
be incorporated at companies house. There is a need for paying an incorporation fee to
companies house and company names are subjected to certain amount of risks.
Compare and contrast organisational structures.
Organisational structure is defined to be system which outlines how some specific
activities are directed for accomplishing objectives of company. These practices consists of rules,
responsibilities as well as roles (Alves and Monteiro, 2021). Effective organisational structure
states in defining how certain activities are to be performed for achievement of desired goals.
Organizations could vary in way they are organizationally structured. The structure of company
is very essential for achieving maximum productivity, managing individual work requirements as
well as reaching of corporate goal and objectives. Comparison of hierarchical and flat
organisation structure are as follows:
Hierarchical organization is also considered as a ‘tall structure’ (Kamenarac, 2021). It is
generally characterized by a large number of layers among top management as well as lower
ranks of company. It is an organization structure which follows the layout of a pyramid. By
taking up example government agencies they are generally using tall organisational structure for
running their business practices effectively.
Flat organisation structure is a structure in which company has few or no levels of
middle management among executives and staff. It is usually adopted by effective companies. In
flat organisational organisational structure there may be only one layer or few layers which are
between top of management and lower level of employees (Chin and Yusoff, 2021). As an
example Amazon which is an e commerce company is implementing flat organisational
structure.
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Discussion of business functions and its impact of their functional management practices
on company and individuals.
Business functions are defined to be activities that are performed by company for running
business practices (Hiney, Efthymiou and Morgenroth, 2021). Some of business functions that
are used by companies are as follows:
Finance: This department handles business associated aspects like funding, budgets,
financial oversight and budget accounting. They basically process tax payments, invoice
customers, performing audits and other factors.
Sales and marketing: This business function is related in terms of meeting needs of
customers for performing effective marketing operations at workplace and advertising strategy. It
is related in relations of developing and designing packaging of products (Natek and Lesjak,
2021).
Human resource management: This business functions is associated in recruiting of
employees and workers in company. It ensures that it is to be performed with right skills and
correct qualification which is required by business.
Operations: It is a core business area for company. This functional area helps in carry
working practices of company (Cherunilam, 2021). This function basically deals in fulfilling
requirements and carrying business practices so that company could be able perform their
practices in markets.
It has been identified that business functions generally creates an impact on company and
individuals as well. As by carrying out business functions it could help companies in setting up
their objectives, organising and dividing work among employees, motivating them to carry their
assigned work so that company could be able to carry their practices effectively. Business
functions helps individuals to carry their roles so that personal as well as professional
development of company could be improved and companies could be able to sustain in markets
for longer run by having effective workforce. In order to carry out functions in workplace it is
necessary to design them. And a well designed system allows for regular meetings between
manager and employee, offering a platform for assigning clear, measurable performance
objectives and an opportunity for mentoring.
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Organisational culture ans explanation of how positive culture impacts on success of
company.
Organisational culture is defined to collection of values, expectations as well as practices
which guides and informs actions of all team members (Basile, Capobianco and Vona, 2021). It
is a type of collection of traits which makes company what it is. Effective organisational culture
is defined to a key of developing necessary traits that could lead to business success. Positive
working culture leads to positive traits which could lead to have improved performance while
dysfunctional company culture brings out various qualities which could hinders successful
companies. It has been identified that strong and positive company culture is directly linked to
higher rates of productivity. It is because as employees tends to be more motivated as well as
dedicated to employers (Lascaux, Kolesnikova and Kotsoyeva, 2021). A positive organisation
consists of shared beliefs and values that are established by company's leaders and afterwards it
is then communicated and reinforced with different methods that could help in shaping employee
perceptions, behaviours as well as understandings. As by taking up example of Marks and
Spencer which is retail company and it is necessary for them to provide positive working
environment to their employees so that company could lead to have success (Chattopadhyay,
2021). As positive organisational culture could lead to have open communication that helps their
department and employees to work as well as collaborate better towards accomplishment of their
desired goals. Along with when there is positive organisational culture it could lead to
achievement of mission.
Example of industry practice.
In order to identify industry examples it has been examined that there are various types of
businesses. And from that it has been analysed that Coca Cola is a sole trader company,
Mumsnet is an example of partnership company and B&M retail is example of limited company
that are carrying their business practices effectively. Along with there is understanding of
business functions which is beneficial for company to carry its business practices effectively. It
basically creates an impact on companies and individuals as well in terms of their performance
(Lima, McMahon and Costa, 2021). At also there is relevance of organisational culture and role
of positive organisational structure that could help in achieving success of company.
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CONCLUSION
It has been concluded from above report that business organisations are enterprises that
are used for providing products as well as services for fulfilling requirements of customers. This
report explains about various types of businesses with its advantages and disadvantages. It
explains about various types of organisational structure by carrying with its comparison. There is
also explanation of various business functions which are required to perform business practices.
Business functions helps companies in fulfilling their requirements. Also it could lead in
identifying impact for running management practices so that companies could be able to
accomplish success. At last it explains about organisational culture which is required by
companies their workplace so that they could be able to accomplish objectives with explanation
of relevance of positive culture that could lead company towards their success.
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REFERENCES
Books and Journals
Alves, C. and Monteiro, H., 2021. Integrating Exploitative and Explorative Thinking in Business
Process Analysis: A Conceptual Model and Method. Revista de Informática Teórica e
Aplicada .28 (1). pp.47-62.
Basile, V., Capobianco, N. and Vona, R., 2021. The usefulness of sustainable business models:
Analysis from oil and gas industry. Corporate Social Responsibility and Environmental
Management.
Bell, L. and Hofmeyr, K., 2021. Enabling organisational ambidexterity: A leadership
perspective. South African Journal of Business Management .52 (1). p.15.
Chattopadhyay, G., 2021. Asset Management Journey for Realising Value from Assets.
In Handbook of Advanced Performability Engineering (pp. 429-450). Springer, Cham.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Chin, S.T.S. and Yusoff, R.M., 2021. The Mediating Effect of Emotional Intelligence on
Sustainability and Future Business Performance. Journal of Governance Risk
Management Compliance and Sustainability .1 (1). pp.1-6.
Hiney, N., Efthymiou, M. and Morgenroth, E.L., 2021. Regional airport business models: The
Shannon Group as a case study.
Kamenarac, O., 2021. Business managers in children’s playground: Exploring a problematic (or
not!) identity construction of early childhood teachers in New Zealand. Contemporary
Issues in Early Childhood, p.1463949121989362.
Lascaux, A., Kolesnikova, I. and Kotsoyeva, V., 2021. Double jeopardy: striving for dual
legitimacy in Russian family firms. International Journal of Entrepreneurial
Venturing .13 (1). pp.88-111.
Lestari, S.D. and Juwana, B., 2021. The Effect of Organisation Structure, Competency and
Innovation on Firm Performance in The Era of Industry 4.0. International Journal of
Organizational Business Excellence .4 (1). pp.1-8.
Lima, E.S., McMahon, P. and Costa, A.P.C.S., 2021. Establishing the relationship between asset
management and business performance. International Journal of Production
Economics .232. p.107937.
Matshabaphala, N.S. and Grobler, J., 2021. Supplier segmentation: a case study of Mozambican
cassava farmers. The South African Journal of Industrial Engineering .32 (1). pp.196-
209.
Natek, S. and Lesjak, D., 2021. Knowledge management systems and tacit
knowledge. International Journal of Innovation and Learning .29 (2). pp.166-180.
Odiba, E., Demian, P. and Ruikar, K., 2021. Development of a Conceptual Framework for
Effective Quality Management Practices in Construction Organisations. Journal of
Construction Business and Management .5 (1). pp.1-16.
Oladinrin, O.T., Jayantha, W.M. and Moses, T., 2021. New Working Practices: A Scientometric
Review. International Journal of Real Estate Studies .15 (1). pp.49-62.
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