Business Organisations: Types, Functions, Culture and Structure

This report provides a comprehensive overview of business organizations, delving into different types such as sole proprietorships, partnerships, and limited companies, and their operational environments. It explores organizational structures, contrasting tall and flat structures, and examines key business functions like marketing, human resources, and operations. The report also analyzes the impact of business culture on company performance, highlighting its role in attracting customers and fostering a positive workplace environment. Using examples like The Barbary and Hyatt Hotels Corporation, the analysis covers legal aspects, operational strategies, and the importance of adapting to market demands. The conclusion summarizes the critical elements discussed, emphasizing the significance of organizational structure, function, and culture for long-term business stability.

Understanding Business
Organisations

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY .................................................................................................................................3
CONCLUSION ..............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation refers to the entity formed with the intention of carrying on the
commercial business (Turner, 2022). This kind of companies are predicated on property rights,
system of law governing exchange and contract, incorporation and many more. There is various
type of organisations like sole proprietorships, partnership and limited corporation or company.
Tourism organisations mainly focuses on the tourism industry and work according to them. They
provide services and experience to the large number of people of destination and places. There
are many companies which provide information to the large number of people all over the world
about the destinations and places. The aim of this essay is to gain an understanding in reference
to organisation environment in which the company operates its business.
This essay covers demonstration of sound understanding and knowledge of different
types of business and their functions. Along with this, it also highlights impacts of the culture
and structure of the company on their overall performance.
MAIN BODY
For each and every person, it is vital to decide business form to establish and there are
different type of businesses like sole proprietorship, partnership and limited company (Osemeke,
2021). The first type of business is sole proprietorship, it is less expensive and simplest path to
open the firm into the marketplace. For example, The Barbary is the sole proprietorship business
and helps its owner in attaining overall profit for their own because they are the only owner of
the firm. Their companies gross flow direct with their personal return of tax. The Barbary
operations and establishment is easy and simple. If there is any need of changes in the operations
of the business, then the manager of The Barbary can easily make changes in their organisation
and legal structure. There is no legal differentiation in the personal and business aspect, so the
owner of the organisation have unlimited debts liability. For daily operations of the business and
for decision making, entrepreneur is responsible and their ability to improve capital is also
limited. The second type of business is partnership, it is related to the formal arrangement of the
two or more persons and parties in order to manage and operate the organisation and share their
revenue at the percentage which is fixed by them in contract (Weaver, Yardley and Emmerich,
2021). For example, Royal Orchid Hotels is the partnership enterprise and it is simple for them to
establish their business in the market without any registration in the companies house (Royal

Orchid Hotels Announces Partnership With UK’s Bespoke Hotels. 2017). It helps partners of
Royal Orchid Hotels and UK’s Bespoke Hotels in learning and gaining the knowledge, skills and
experience as all the members share its own point of view regarding the operations of the
business. It helps them in completing their day to day business operations effectively and take
proper and better decisions to perform their task. At the other hand, the organisation do not has
its separate entity so all the partners also have unlimited liability. There can be differences and
conflicts between the partners in the organisation. The partners in the partnership firms, the
partners find it difficult to invest money as they have limited access to capital. The third business
type is limited company, it is the general form of legal and incorporations structure that
maximise the liability of organisations shareholders through investment and commitments (Kc
and Et. Al., 2019). For example, Hyatt Hotels Corporation is the limited company and their
managers has negligible individual liability because if there is any loss in the business then the
company have to face it. Hyatt Hotels Corporation professional status and image is going to
increase with the help of higher revenue in the company. If there is higher profits earned by the
company then all the shareholders are also going to earn more amount of personal remuneration
(Sotiriadis, 2018). At the same time, all the shareholders and members have to pay fees of
incorporation. For the accounting they need to recruit accountant as their requirement of
accounting is time consuming and they have to look over tax affairs also.
Organisational structure describes how activities like coordination, supervision and
allocation gives direction towards attainment of companies goal and aim (Scheyvens and Et. Al.,
2021). There are two type of structure which is used by the various companies which are flat and
tall structure. In tall structure, there is a CEO or top level managers operates from the top of the
companies chain and control and give direction to all the employees working in the company in
different level (Koc, 2020). For example, management of Hyatt Hotels use the tall structure in
their enterprise and it gives more opportunities to the managers of promotion. It helps the
managers of Hyatt Hotels in motivating their people working in the organisation by providing
them proper direction in order to attain success and goal. It also has some limitations, each and
every information have to travel from serval managerial levels because this structure is less
flexible. In this structure, employees wait for the orders from their superior to complete their
given task and hence this will be less creative (Moneva, Bonilla-Priego and Ortas, 2020). The
second kind of structure is flat structure, this is very flexible, have more autonomy of employees

and includes less level of management in the decision making process. For example, The
Barbary follows this structure in their business which improves their cost structure. It helps them
in communicate properly and complete their work effectively and properly as there is less
miscommunication (Li, 2019). Along with some advantages there is also few disadvantages of
this structure as it limits the productivity of The Barbary. Due to various workload and fewer
employees, the responsibility of each person working in the company increases and hence they
have to perform various tasks at the same time.
Business functions refers to the companies day to day operations which is carried out by
the people working in it in order to achieve its goal, profitability and success (Ruiz-Ballesteros,
2020). In context to Hyatt Hotels Corporation, the key business functions are marketing, human
resource and operations. The first function is marketing, it refers to promoting its brand and
product awareness to the large number of people all over the world in the market to attain
companies goal and success. This function helps the managers of Hyatt Hotels Corporation in
attracting more number of people and gain sustainable competitive advantage over others in the
market or same industry. Second function is human resource management, in this function the
HR managers recruit, administrate, motivate, directs and retain people from all over the world in
their organisation (Al-Kodmany, 2020). The HR managers of Hyatt Hotels Corporation mainly
focuses on the needs and wants of their workforce and for inquiries they deals with
documentation in order to motivate their employees so that they can attain organisational goal
and success effectively. The third function of business is operations, it refers to the day to day
business operations and functions in the organisation. In this process the raw inputs is converted
into finished goods according to the customers needs to sell them (Erthal and Marques, 2018).
Mangers of Hyatt Hotels Corporation handle and manage their functioning and daily operations
along with this they produce product and services by analysing their customers needs and
demand in order to satisfy them.
Business culture refers to the accumulation of expectations, values and activities that
helps company in improving the understanding in the business and behaviour of workforce
(Amore, 2019). It have its main impact on the success of the company and every organisation
have strong efforts that make their employees feels that they are the part of the firm. There are
various type of sources of the culture which includes rights, structure and ethics to their people
working for them. Financial stability and having harmonious relationship in the business

environment is also a part of organisation culture (Seidu, and Et. Al., 2021). In UK, Hyatt Hotels
Corporation have reputed culture in the marketplace. With the help of different strategies the
managers are working contentiously to improve the business culture. It aids the managers in
attracting large number of customers all over the world as it have good organisational culture.
Tourist comes to the destinations in order to travel safely, comfortably and choose this hotel
because of their great organisational culture (Scuttari, Pechlaner and Erschbamer, 2021). So, it
can be said that Hyatt Hotels Corporation have its contribution towards tourism industry. Their
staffs gives proper hospitality to the people which enhance their culture reputation in the tourism
and hospitality sector.
CONCLUSION
From the above essay, it is concluded that the organisations perform their daily
operations according to the rights, laws, contracts and many more. There are different type of
business like limited company, sole proprietorship and partnership. It is very important for every
company to fellow the proper structure and they are of two types, flat and tall structure. There
are many functions of organisations which plays an important role in attaining success and goal
which includes marketing, human resource management, operations and many more. For the
long term stability of the business in the market, organisational culture is very important as it
builds workplace environment and influence the nature of plans.

REFERENCES
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Al-Kodmany, K., 2020. Tall Buildings and the City: Improving the Understanding of
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Amore, A., 2019. Tourism and urban regeneration: Processes compressed in time and space.
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Kc, B. and Et. Al., 2019. Using social network analysis to understand trust, reciprocity, and
togetherness in wildlife tourism microentrepreneurship. Journal of Hospitality &
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Koc, E., 2020. Cross-cultural aspects of tourism and hospitality: A services marketing and
management perspective. Routledge.
Li, F., 2019. Tourism diplomacy: levels, attributes and functions. Tourism Tribune. 34(3).
pp.113-124.
Moneva, J. M., Bonilla-Priego, M. J. and Ortas, E., 2020. Corporate social responsibility and
organisational performance in the tourism sector. Journal of Sustainable Tourism. 28(6).
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Osemeke, M., 2021. Business process reengineering and Nigerian private sector organisations
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Ruiz-Ballesteros, E., 2020. Community-based tourism and degrowth. In Degrowth and
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Scheyvens, R. and Et. Al., 2021. Indigenous tourism and the sustainable development
goals. Annals of Tourism Research. 90. p.103260.
Scuttari, A., Pechlaner, H. and Erschbamer, G., 2021. Destination design: A heuristic case study
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Seidu, S., and Et. Al., 2021. Does organisational culture determine performance differentials in
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Sotiriadis, M. A. R. I. O. S., 2018. Emerald Handbook of Entrepreneurship in Tourism, Travel
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Turner, P., 2022. Complementarity in Business Organisations-20 Important Conclusions.
In Complementarity in Organizations (pp. 233-260). Palgrave Macmillan, Cham.
Weaver, G. A., Yardley, T. and Emmerich, D. P., 2021, October. Continuous Infrastructure
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Online:
Royal Orchid Hotels Announces Partnership With UK’s Bespoke Hotels. 2017. [Online].
Available through: <https://bwhotelier.businessworld.in/article/Royal-Orchid-Hotels-
Announces-Partnership-With-UK-s-Bespoke-Hotels-/03-11-2017-130486/>