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Structure and Characteristics of Business Organisations

University: GSM LONDON UK

  • Unit No: 7
  • Level: Undergraduate/College
  • Pages: 7 / Words 1794
  • Paper Type: Assignment
  • Course Code: JNB517
  • Downloads: 637
Question :

Management and organisation are interrelated with each other to achieve desired objectives. Management drives organisation to move ahead in rivalry market whereas organisation builds professional growth and career. Rovio Entertainment group is an entertainment groups of video gaming industry that gets success with the help of its team members and generation of new ideas. It is popularly known for Angry Bird franchise.

  • Determine the structure and characteristics of business organisations.
  • Explain the principles of modern management.
  • Determine the relationship between strategic objectives, functional management and business environment.
Answer :
Organization Selected : Morrison Supermarkets PLC


Introduction of an organisation

Rovio Entertainment Corporation is one of the leading entertainment groups of video gaming industry and it is marking success with team working and collaboration of innovative ideas. Rovio is a finished video game developer based in Espoo and its annual turnover of 29.72 crores EUR. Enterprise is the best known for Angry bird franchise. Game has created boom in world of entertainment across the globe. It is the most played game which is available in angry bird gaming application. The entity was found in 10th November 2003 and is headquartered in Espoo and Finland. The owner of business is Trema, with 37% of share value and founders are Kim Dikert, Jarno Vaakevainen, Niklas Hed and Mikael Hed.

However, the consistent working of firm is reflected by its fair management in team working practices. Moreover, the foremost concern of entertainment group is on implementation of effective leadership and managerial practices in order to attain competitive business goals and objectives (Rovio Entertainment Corp.: Changes in management, 2018). Further, traditional managers of ROVIO are focused on managing creative and innovative business environment to meet with the requirements of worldwide customers. Thus, the firm has joined fair play alliance which is a global initiative for promoting positive online communities and fair gaming.


Organisational structure and its functionality

Organisation structure of Rovio is hierarchical yet horizontal where management aims at promoting inter-departmental communication in order to reduce the errors in regular functioning (Roehrich, Grosvold and Hoejmose, 2014). The motive of an enterprise is to divide work according to job function in order to reduce waste and errors.

The functionality of organisation is based on interlinks of divisions like marketing department is responsible for promotional activities where the focus of firm is to coordinate with management and developers. However, in accordance with illustration, it can be said that the all the departmental functions in hierarchical direction are only connected with superior authorities that is CEO and CFO.

Further, Rovio has segregated divisions who coordinate with top management whose motive is to align efforts for all departments in one direction. Further, the division structure of firm is reflected in chart where HR, brand licensing team, legal, administration, Rovio animation and marketing are in N1 section. However, development, investors and secondary Rovio animation team functions in N2 section of company.


Modern management approach to improve functionality

Management approaches are crucial part of business organisation which helps enterprise in considering all the aspects of business environment. It is necessary for the firm to derive use of the best application of managing with regard to specific situation of company (Rovio-Johansson and Liff, 2012). There are various management approaches which are suitable for enterprise like system, contingent, situational, chaos, etc.

System approach is an effective management theory which comprises of interactive elements where the firm can arrange the business process and functions in a unified pattern. It is an approach to management as with the help of this, organisation is liable to divide organisational functions in sub system which reduce the risk of elimination of essential inputs. Further, it is beneficial for gaming industry as it supports gathering for information and resources before undoing process of transformation (Rovio Entertainment Corp.: Changes in management, 2018). Apparently, it is effective because it promotes dynamic and responsible business functions with regard to changing customer preferences.

In accordance with Rovio Entertainment Corporation, it can be said that system approach is the best suitable because it stresses on interdependence and interactive nature of macro and micro factors of an entity. Implementation of this theory assists Rovio in evaluating the market elements which can be beneficial or prove to be a limitation for profitability of business.

Read more: Understanding the Process of Human Resource Management



  • It promotes interaction of external  and internal environment of an enterprise.
  • The approach helps in integrating efforts of all departments which minimizes errors.
  • The theory assists in developing meaning of management and integration of business functions and goals (Hong and et.al., 2014).
  • It is time consuming as the process of management becomes over conceptual.
  • It cannot be directly implied and it is difficult to be followed.
  • The functioning and management with thehelp of system approach is complex and lacks universality.

Charles Handy's cultural framework to derive organisational culture and ongoing success

Organisational culture is an integration of different values and behaviours which help in managing success of an organisation in psychological and social environment. The stability of culture is derived by underlying assumptions, beliefs and attitude of employees. Handy's typology of organisational culture is an effective approach as it integrates four key business features that is power, people, role and task. Analysis of model with regard to Rovio is illustrated as below:

  • Power culture: It derives distribution of power and responsibility among workers which is directly related to authorities. However, management of ROVIO is based on equal distribution of power in accordance with the skills and capabilities of employees. It is the strategy which aids firm in reducing employee’s conflicts.
  • Task culture: It is based on team working and building strategy of ROVIO where the enterprise is focused on grouping of 6 or 7 workers in one team. The foremost motive of forming team is management innovation in gaming services.
  • Personal culture: It is necessary for an organisation to enable growth opportunities to maintain ongoing success of business and to boost worker’s morale towards job responsibilities (Shepherd and Rudd, 2014).
  • Role culture: This staage of typology culture focuses on  working of  staff members  and success of business. In this, the focus of an enterprise is on managing effective distribution of responsibilities in order to maintain cooperation's and coordination among different business departments.

Thus, in accordance with discussion, it can be said that Handy's typology of organisational culture is suitable for managing ongoing success of firm. It is an approach which helps company in managing employee’s satisfaction with regard to business goals and objectives. Hence, it can be said that aligning efforts of staff members in one direction helps in promoting a stable organizational culture.



  • It helps the firm in deriving multiple orientation.
  • It promotes a clear distribution of power and enables highly defined structure.
  • It offers rigid organisational structure and functioning.
  • Multiple orientation enables the bureaucratic environment.


Two innovative strategic management objective of Rovio Entertainment Corporation

Implementing use of innovative management objective helps the organisation in developing a clear strategy which promotes formulation and implementation of initiatives to attain business goals and objectives. However, implementing use of strategic tools assist the management in coordinating and cooperation functions as per dynamic business environment.

It is the foremost responsibility of manager of enterprise to analyse use of the best strategic tools for developing strategic objective of an entity. Manager is the person who understands the nature of organisation and its functions. Therefore, the person is responsible for deriving strategic initiatives. Apparently, management of Rovio Entertainment implements the use of two tools, that is, Swot analysis and Ansoff matrix which help individuals in integrating influence of both; internal and external factors (Yim, Kim and Kwahk, 2014). The aim of manager is on analysing internal abilities of firm with regard to its products and services in order to attain business goals.

Two strategic objectives of Rovio are  to increase revenue by remarking performance  where the aim of managmenet will be on  targeting potential demands to users. On the other hand, entertainment group is aiming at increasing investment with motive of increasing profitability.

With implementation of strategic framework of Swot analysis, firm will be able to determine internal capabilities with regard to determined goals. Like, the strength of business is denoted by high awareness and customer base with the help of which Rovio will be focusing over weaknesses where the firm is facing difficulty in maintaining fresh start on games. However, strategic alliance of management will be focused on innovating new game in order to keep consumers connected which will automatically assist the firm in increasing revenue and boosting their performance.


The report concises about management and organisation of Rovio which is one of the leading Entertainment Corporations in video gaming industry. With the introduction of company, it has been analysed that firm has remarked its success with launch of Angry bird franchise. Further, it outlined the effectiveness of system approach for Rovio which helps the firm in managing business functions in accordance with macro and micro factors. Thus, the study concluded by identifying organisational culture of enterprise with the help of Charles Handy's cultural framework. Hence, it summarized by outlining Ansoff matrix and Swot analysis of objective for firm to manage the overall organisational performance.

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