This assessment will cover following questions:
- Analyse the different types of organisation and its legal structure, size, scope.
- Evaluate the advantages and disadvantages of organisational functions and its impact that can have upon organisational structure.
Business environment refers to sum total of internal and external factors which influence business (Bah and Fang, 2015). It can include the factors like suppliers and consumers, competitors, technological improvements, economic and social trends and government activities. Present report is based on Southbank Centre. It is complex of the artistic venue in London on South Bank of River Thames. In this report going to discuss regarding size and scope of various kinds of companies. The relationship among various organisational functions and how they connect to organisational structure and objectives will be discussed here.
Provide an overview of different types of organisations and growth of international creative and cultural enterprise environment
Growth of international creative and cultural enterprise environment
In relation of creative industry, respective sectors is growing by 8.9% a year as well as also becoming second fastest expanding industrial sector. In simple term it can be said that, creative industry of United Kingdom are shaping their reputation abroad as well as also strengthening its economic growth. In 2016, the strategy focuses on building trade relationship with the USA as well as other key territories in Europe, Asia, and the Middle East. They are continuously focus on to achieving goals which was decelerated in year 2014, like doubling the value of UK creative services exports, achieving recognition as one of the top nations in digital infrastructure and several others (Corcoranand Gillanders, 2015). But this year they added new goals which they want to achieve like engaging local communities, increasing creative industries-related subjects at schools and developing recognition within every divisions of legal bodies.
Overview of different types of organisations
Profit organisations are those whose goal is to making money. Non- profit organisation focus on helping community and also concerned with money to keep company operating. Non- government organisations are independent of government. They are mainly non- profit and NGOs are active for social areas. There is a difference between profit, non- profit and non- government organisations (NGOs).
Not for profit
Non- government organisations (NGOs)
The main purpose of profit organisations is to earn profit (Grigoreand Drăgan, 2015).
In this, firms work on issues other than generating the profit.
It works independently from government in order to promote change.
Organisation can be partnership entity, company and sole proprietorship.
Non- profit companies are trusts, society, clubs and others.
NGOs consist charities, foundations, community groups and some others.
Under this, there are different legal structures given below related with various forms of the business with advantages and disadvantages:
Sole traders- It is an individual that owns whole business through itself. In this, there is not any legal formalities need to be followed for set up business. This is not controlled through any legislations.
- It keeps all profits.
- There is not any intervention of government.
- They are not seen as separate entity through law.
- It is complex to raise finance to fund business.
Partnerships- This is formal arrangement of two or more than two different parties for manage and operate business and also share profits.
- There is more capital available for business.
- Easy to change the legal structure if any circumstances change.
- Partner's liability is limited.
- Risk of disagreements among management and partners.
Franchises- It is an authorization that granted to an organisation to enabling for carried out particular commercial activities.
- There is minimum risk of business failure.
- There is not any prior experience required.
- High cost involved.
- Franchise agreement consists restrictions.
Three different types of organisations, their size and classification to highlight differences between them
Southbank Centre - It is complex of the artistic venue in London on South Bank of River Thames. In addition to this, three to six major art exhibitions are presented at Hayward Gallery yearly, and National Touring Exhibitions reach over 100 venues across the United Kingdom.
Mission: It is our belief that art has the power to help change society for the better and that art must be accessible.
New York Philharmonic – It is one of the oldest musical institution in United State as well as “Big five” orchestras. New York Philharmonic was founded in 1842 and located in New York, US. Each season New York Philharmonic get connects with up to 50 million music lovers by their live concerts in New York or around the world.
Vision: “To inspire through the finest music making”
Mission: To perform music which attract audience as well as engage people of every age, which our musician embrace, which partners wish to support, which our staff and board believes in.
Tower Bridge Exhibition – It is located in London and across the River Thames near the Tower of London. Tower Bridge Exhibition has its own exhibition centre in the horizontal walkway as well as it is one of best vantage points in London.
Various functions within the organisation and create an organisational chart to explain the interrelationships between different departments
Organisational chart (image) and write about organisation
Organisational chart is diagram which representation internal structure of organisation by detailing the responsibilities, roles as well as other relation within individuals and entity (Huang-Horowitz 2015). In simple term it can be said that, organisational charts have variety of uses as well as can structured in several different manner. Moreover, organisational chart are constructed within several formats i.e., hierarchical, functional top-down, flat and matrix. In relation of New York Philharmonic, it is one of the oldest musical institution which was founded in 1842.
Structures and complexities
Organisational structure is system which outlines that explain how several activities are directed for accomplishing goals as well as objectives in effective manner. These activities involve roles, rules, responsibilities and many more which help in conducting activities in effective manner (Kolk, 2016). In addition to this, organisational structure also determines how information flow within levels of business firm. Proper organisational structure will allow New York Philharmonic in remaining efficient as well as focused. There are mainly four type of organisational structure i.e., functional, divisional, matrix and flatarchy.
- Functional structure– In this type of organisational structure each portion of company is grouped as per its purpose. For instance, marketing department will perform activities related to advertising and promotion, HR work on training purpose and hiring new candidates (Kozubikova, Homolka, and Kristalas, 2017). For small scale organisations functional structure is more effective because in this each department can rely on the talent and knowledge of their employees and support itself.
- Flat structure - It is defined as an organisational structure where no or less management layers between the employees and management. This kind of structure helps in increasing the involvement of employees in decision making process instead of supervise them (Moroni Arruda and Araujo, 2015). Especially, flat organisational structure is suitable for small businesses whose need to be flexible that leads to the firm which can respond to the competition. As it facilitates great interaction among management and employees as compared to other structure as well as it may be lead high morale of employees which results in high achievers. Whereas, sometimes flat structure of an organisation can be made poor decisions as well as lead towards wasted time in involving all workers which constraints the productivity as well as performance.
- Matrix organisation - It is a structure of the organisation in which some of the employee have to report to more them one leader or the manager. It builds the relationship between the different department as some of the activities are performed by the combination of several department as every department performs their own task and report that to the other which leads the effective outcome. It is work for to strengthen he strength and weaken the weakness, thus this structure is used to measure the large-scale projects. It is used to generally help the product manager and function manager by which there is a complete usage of resources and project is formally coordinated by all the department (Otache and Mahmood, 2015).
- Divisional structure– In large scale organisations divisional structure utilise which working in wide geographical area or that have separate smaller organizations within the umbrella group to cover different types of products or market areas. Advantage of implementing respective organisational structure is to need of company met more rapidly as well as specifically. Along with this, each and every division can operate more or less independently for other department in company. In relation of New York Philharmonic they are using divisional organisational structure as it is more effective and help in dividing each and every department working within more effective manner. There are several advantages of implementing divisional structure for New York Philharmonic as it is useful because it affords the respective organisation greater operational flexibility. Along with this, failure or any other issue in one division does not directly threaten the other department of New York Philharmonic. In the multi-divisional structure, subsidiaries benefit from the use of the brand and capital of the parent company.
Apart from this, implementation of divisional structure result in creating several complexities for business firm such as operational inefficiencies from separating specialized functions. For instance, finance personnel of one department cannot communicate with other division member as it may result in creating communication barriers within company. Apart from this, another disadvantages of multi-divisional structure is that it may result in increased accounting as well as tax implications.
Various functions within the organisation
In New York Philharmonic, there are many different departments working and their main goal is to attain the common objectives within given time period (Papilaya, Soisa and Akib, 2015). The different functions are finance, operations, marketing and human resource management. These all are related to organisation objectives and mission. Role of different functions are given below:
Human resource function- It is backbone of company and its main goal is to enhance productivity of an organisation. In New York Philharmonic company, human resource function, hires, provide training, performance appraisal, motivate employees. Its focus is on hiring the well qualified and talented employees so that they can focus on attaining the mission and objectives of company which set through top management.
Operations- The role of operations department is to assure that orders of consumers are to be filled on proper schedule (Prajogo , 2016). It is related to designing as well as controlling production process and also redesigning the operations of business in manufacturing services or goods. In context to New York Philharmonic, Operations Associate to support Development department through processing the daily gifts, maintenance database and communicating with the donors related to contribution enquiries and ticketing.
Marketing- The marketing department is bound up to developing successful methodologies and market research. Purpose of New York Philharmonic is to develop solid promotion system that will effectively assess the offers of organisation in expanding them (Sodeyfi, 2016). As New York Philharmonic conduct the concert and it do the promotion on radio, television, education programs and recordings. Its main objective is to connect with large number of people, attract them and enhance its sales.
Finance- It is main function of company and its main role is to acquiring funds for company and managing them within organisation and also planning for funds exposure on different assets. Finance Department of New York Philharmonic gives assets and maintains funding plans in order to promote the arrangements.
Interrelationships between different functions
Human Resource and marketing function- Aim of the HR department is to recruit and choose the best applicants which can work to achieve their goals and ambitions by performing job roles within the business. The human resource manager of New York Philharmonic is to support the HR activities for company (Saleem, 2015). On the other hand, main goal of marketing function is to promote the business as well as enhance sales at large scale. Marketing department post the vacant positions and information of the organisation's products and services. Besides this, New York Philharmonic marketing works on carrying out market research to search candidates which should be passionate about the music, performing arts and interested in opportunities to be learn in high performing environment.
Finance and marketing function- Finance function plays an important role in an organisation. It arranges and manage the money so that company can able to conduct its business operations effectively. Interrelation among marketing and finance function impact on structure of company (Ruël and Wolters, 2016). As New York Philharmonic goal is to make the consumers loyal by providing high quality services When the marketing department of this company needs that display activities and advertisements be sorted out, fund division needs that the marketing department be provided with sufficient funds. The finance department of New York Philharmonic arrange the funds so that company can make promotion about concerts and the events to invite large number of people.
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From the above mention report, this has been concluded that business environment is a combination of the internal and external factors of an organisation. These factors impact on the growth as well as performance level of an organisation. In present report has been studied about the difference between profit, non- profit and non government organisations. The various legal structures such as sole trader, partnership, franchises has been discussed in a detailed manner along with the advantages and disadvantages. It has been stated that all functions of organisation work together for attaining the specific objectives. There has been studied about different functions like marketing, human resource, operations and finance and also their interrelationship with the each other.
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Books and Journals
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in Africa. Journal of Development Economics, 114, pp.159-171.
Corcoran, A. and Gillanders, R., 2015. Foreign direct investment and the ease of doing business. Review of World Economics, 151(1), pp.103-126.
Grigore, A.M. and Drăgan, I.M., 2015. Entrepreneurship and its economical value in a very dynamic business environment. Amfiteatru Economic Journal, 17(38), pp.120-132.