MGBBT0UBN Understanding Business Organisation

MGBBT0UBN Understanding Business Organisation

Introduction-MGBBT0UBN Understanding Business Organisation

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An organization’s ability to perform better may be enhanced by gaining a deeper knowledge of the business. As a result of this, businesses will be able to better understand and address their issues, both now and in the future. In order to stand out from the competition, enhancing the company’s distinctive approach to the market would be an important contributory factor. An environmental assessment will also provide the company a good notion of how to recognise qualitative data in advance. Businesses might benefit from the relevant data when it comes to dealing with issues and difficulties (Goyal et al., 2017). An energy-saving light bulb, for example, has been developed that may last up to 20 times longer than standard lights, according to scientific studies.

However, Philips and General Electronics already have begun developing on a similar product that will be released in the next several years. The research paper focuses on the advantages and disadvantages of the various company models, as well as undertaking a critical study of their organisational structure, in order to make an informed decision (Beynon-Davies, 2021). On the other hand, some of the most important aspects of the organization’s culture and values are outlined with examples.

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Limited Company

Limited company is among the three business structures utilised in the UK’s internal market. Furthermore, the appropriate corporate structure allows the person to set up a distinct company entity. As a result, the shareholders and owners of a corporation may only risk the amount of money they have invested while preserving their own wealth. For a limited corporation, only the firm itself is responsible for repaying its obligations (Meyer, 2017). However, it will have no effect on the company’s shareholders or owners.

A drawback to this structure is that both owner and lone trader are treated as a same legal entity. In this way, it is evident that now the owner of a limited business is accountable for any failures or obligations that the firm incurs. The structure of a limited liability corporation, on the other hand, is more intricate than that of other types of businesses.

Partnership

In the United Kingdom, partnership business is by far the most popular type of business operation. Limited company and sole proprietorship are two options to partnership business. Individuals and businesses alike are able to enter into commercial transactions with others without any apparent formality owing to the appropriate model. As a result, the accounting procedure in a partnership firm is easier than that of a “limited liability company” (LLC) (Ibarra, Ganzarain and Igartua, 2018). It is not necessary for a partnership to file a “Corporation Tax Return” (Lyons, Um and Sharifi, 2020). Aside from keeping a better record of spending and revenue, this is the key endeavour.

Partnerships have both beneficial and negative consequences on the market, depending on the context. The partnership company does not have a legal position of its own, which is a drawback. Uncertainty and instability might be caused by the segment’s current status. The other partners may not even be able to buy the exiting shares of the partners engaged with the firm if the partnership agreement remains in place (Edwards-Schachter, 2018). It will have a significant influence on the company’s present and future performance and sustainability.

Sole trader

Apart from the previously listed forms of businesses, establishing a sole proprietorship is far easier than the others. On the other side, there is an enhanced mode of both beneficial and harmful consequences. Micro, SME, or small business is the appropriate classification for the respective company model. One person is deemed to be the genuine owner of the company from the beginning of its existence under this model (Needle and Burns, 2010). Plumbers, landscapers, electricians, and decorators are some examples of single proprietorships.

The owner of a single proprietorship has entire control over the business’s operations. However, the firm owner’s desire for efficiency and profitability is the determining factor. The bad aspect, on the other hand, is that the owner is the only person liable for the company’s failure in any form and the resulting repercussions (Ibarra, Ganzarain and Igartua, 2018). In the event of an accident or property damage to a consumer, being a solo trader in the market might be problematic.

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The structure of an organisation supplies the firm with reliable information on the activities taking place in each of its departments. It covers all of the information that is relevant to the process of delegating tasks to achieve the organization’s objectives. Employees’ roles and duties are laid out in an overall organisational structure function, which is more specific to an organization’s internal environment. The organization’s primary goal is to put a lot of emphasis on the structure they use (Meyer, 2017). Contrary to popular belief, an organization’s success is directly related to the efficacy of its organisational structure. There are four basic organisational structures used by firms in both local and international competitiveness. Matrix and functional structure are also included in this framework. It is possible, however, to classify all of the functions associated with this in terms of flat structure or tall structure.

Organizational structures that have a low number of levels of hierarchy are known as “flat structures.” Flat structure is also known as an Orgiastic structure, which has a larger scope of control. As a result, many businesses prefer a flat structure over the tall structure when it comes to their operational elements (Ibarra, Ganzarain and Igartua, 2018). With more divisions and personnel in the internal environment of Marks & Spencer, for example, the organisation follows a tall. When it comes to brand creation, Adidas employs a flat organisational structure with no hierarchy. Furthermore, the company’s overall operations have become more transparent and agile as a result of the company’s flat organisational structure.

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Several divisions and units inside the company’s internal environment manage the overall business activities. Aside from that, the operational component of the organisation is linked to the expertise’s potential and competence. There is really no doubt that its efficacy will help achieve the organization’s aims and objectives within the timeframe and schedule that they have set for themselves. The business’s operational, human resources, and marketing divisions all work together to manage the company’s functional area (Lyons, Um and Sharifi, 2020). With this in mind, the human resources department has an important role to play in the recruitment and retention of employees in the area of safety and health measures. As a result, it will help the company retain more employees and boost the company’s profitability and productivity in the future.

As an example, Amazon devotes a lot of time and resources on refresher training for both current and new workers. On a regular basis, the organization’s management is worried about adding a stronger manner of creative ideas to the company’s operations. In addition, the organization’s operational department places an emphasis on the organization’s internal and external functioning (Edwards-Schachter, 2018). According to Tesco’s operational section, the corporation has created a methodical approach to management. Food, financial services, furnishings, and electrical sectors are all part of the company’s offerings. The most important aspect is that the prices of commodities might fluctuate constantly due to market conditions. Tesco is able to maintain the price of the goods in line with market pricing because of their market rivalry. In contrast to this, the department’s operations are centred on satisfying the customer’s wants and aspirations in accordance with their expectations. Under local as well as worldwide rivalry in both retail and hotel sectors, efficient operating structure is a problem.

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As a whole, an organization’s culture is made up of the practises, beliefs, and values that govern the activities of its employees. In contrast to the organisational objectives, the operational characteristics of the system of organisational culture are distinct. However, these factors will help define the existing and future stability of the firm in the present and future. Authentic and consistent conduct in the workplace contributes to the development of an organization’s culture (Needle and Burns, 2010). Furthermore, when the company’s culture and the productivity of its personnel are in sync, productivity and profitability for the business as a whole will rise.

Salesforce and Microsoft, for instance, are regarded to be among the best in the world in terms of worldwide rivalry. The primary reason is because they have become more important in emphasising the culture of their firm. Throughout the year 2014, Satya Nadella succeeded Steve Balmer as Microsoft’s CEO (Ibarra, Ganzarain and Igartua, 2018). The company’s internal operations were improved, and productivity increased as a result of the aforementioned method. Microsoft CEO Satya Nadella began an initiative to improve the company’s overall culture. It allowed the firm to outpace their rivals and increase the value of their brand overall. Now that Microsoft’s market value is close to $1 trillion, it is engaged in a fierce fight with Amazon and Apple for the title of world’s most valuable firm.

Conclusion

To put it another way, it may be stated that the organization’s primary goal is to concentrate on its structure. There are several factors that influence how well the organisational structure works, including the company’s performance. The four basic kinds of organisational structures used by firms in both local and international competitiveness are outlined below. It is also worth noting that the organization’s goals and objectives will be met more quickly and efficiently if the same is used effectively

References

Beynon-Davies, P., 2021. Business Analysis and Design: Understanding Innovation in Organisation. Springer Nature.

Edwards-Schachter, M., 2018. The nature and variety of innovation. International Journal of Innovation Studies, 2(2), pp.65-79.

Goyal, S., Kapoor, A., Esposito, M. and Sergi, B.S., 2017. Understanding business model-literature review of concept and trends. International Journal of Competitiveness, 1(2), pp.99-118.

Ibarra, D., Ganzarain, J. and Igartua, J.I., 2018. Business model innovation through Industry 4.0: A review. Procedia Manufacturing, 22, pp.4-10.

Lyons, A.C., Um, J. and Sharifi, H., 2020. Product variety, customisation and business process performance: A mixed-methods approach to understanding their relationships. International Journal of Production Economics, 221, p.107469.

Meyer, B.J., 2017. The structure of prose: Effects on learning and memory and implications for educational practice. In Schooling and the acquisition of knowledge (pp. 179-200). Routledge.

Needle, D. and Burns, J., 2010. Business in context: An introduction to business and its environment. Boston: South-Western Cengage Learning.