Different types of organizations Essay

There are four major types of businesses which include service businesses, merchandising businesses, manufacturing businesses and hybrid businesses (North, p. Service firms are concerned with offering various intangible services such as banking, health, legal, hospitality, beauty among others services. Merchandising businesses sell products in bulk without changing their original form and make a profit by providing the logistical support hence creating a link between the demand and supply. Manufacturing businesses buy raw materials and convert them into finished goods through the process of value addition. Hybrid businesses combine different types of business and do not operate in a single businesses. Due to the separate legal identity, the owners of a cooperation have limited liability hence the personal contribution to the corporation is the only owner's property which can be taken to offset debt but not the individual's property(Galbraith, p.

A Limited liability company is a business form which gives its owners limited liability but it may not have a separate legal identity like a cooperation. There are two forms of limited liability companies namely private limited liability and public limited liability(Galbraith, p. The fifth form of business is referred to as a cooperative which is formed by members for their benefits to be able to help one another depending on the agenda of the cooperative. A cooperative can operate either as an incorporated body or unincorporated body. The services include banking and financial services which have highly been utilized by banks and other financial institution. As the technology and innovation advances, the banking industry has highly revolutionized and shifted towards internet-based services (Bendell,p.

Another service sector which is attracting high levels of investment in the hospitality industry. The sector is growing enormously due to high demand of hospitality services. The increased global economic growth which has boosted the per capita income is another contributory factor to the increased demand for services. The governmental organizations are the non-profit making organizations which are sponsored by the concerned governments. For instance, the United Nations which is a body formed by the sovereign governments worldwide has several non-governmental agencies which are concerned with the provision of different humanitarian support ranging from education, health, relief food among others(Bendell,p. Some of these governmental organization include World Health Organization which concerned with provision and administration of healthcare world, Food and agriculture organization, United Nations International Children's Education's Fund among others(Galbraith ,p.

Some of the non-governmental organizations include Joint United Programme on HIV/AIDS which is concerned with the creation of AIDS awareness and welfare globally, International Red Cross which is concerned with disaster response and evacuation in the disaster-stricken areas globally. World Vision which concerned with the provision of relief food, education and general community welfare in underdeveloped countries among other non-governmental organizations. Just like a micro business, a small business has a small scope of operation and does not have elaborate leadership. It only requires the owner and the technical team who can range from ten to fifty employees. The revenue turnovers are not that big and hence small bookkeeping and financial recording is required. Small businesses eventually upgrade to medium businesses which form the bridge between the small businesses and large business corporations.

The medium businesses range between two hundred and fifty employees and five hundred employees(Arvidson, p. For-profit making organizations marketing plays a crucial role in creating awareness of the products and services offered by different manufacturing and service companies. However, there are general functions which have universal implication for an organization such as human resource department. Every organization must acquire and maintain the right amount of human resource to be able to discharge its activities based on the level of the company. Nevertheless, the human resource department is majorly established in the large businesses which have diverse and elaborate functions(Arvidson, p. Therefore, the level of growth of a business determines the amount of human resource to be acquired. Decision making in this kind of a structure is easy because decisions are made at the topmost level and flow swiftly to the lowest level for implementation most organizations use this type of structure majorly the service sector and governmental organizations because of the bureaucracy involved.

The second organizational structure is known as line and staff structure which combines two types of decision which include the management decision and staff decisions. Nevertheless, the staff decisions are supposed to be line with the management decisions. This type of structure occurs in complex organizations where the staff can devise their own mechanisms of achieving their set targets. The third organizational structure is known as the functional structure where a supervisor issues directives and other specialists give further specification about the task intended. For multinationals, bottom-up approach to decision making is applied because it is impossible to make a universal decision due to different market dynamics. Section two: UK retail sector Following the massive economic downtime, different economic sectors in the United Kingdom have been affected negatively.

The retail sector has seen a slow growth rate which led to massive loss of jobs due to a massive closure of businesses. In order to get a proper understanding of the factors affecting the retail sector in the UK, different analyses are recommendable to evaluate the economic status in the UK. PESTLE Analysis Political factors There has been political tension in the UK since the passing of the vote to exit from the European Union on July 2016. Therefore, retail stalls should launch humanitarian projects to lure more customers. Technological factors The technological development in the UK provides a conducive environment for the development of the retail sector. First of all, effective internet coverage encourages online shopping and distribution which has revolutionized business(North, p.

Therefore, retail stalls in the UK should adopt free delivery at customers’ doors through E-commerce. Moreover, due to conclusive possession of smartphones, the retail stalls can launch personalized text message advertisement to woe customers to buy their products. Moreover, the four major supermarkets; Tesco, Asda, Sainsbury's and Morrisons command a considerable level of the market blocking other new supermarkets from entering the market. Weaknesses The major weakness in the supermarket industry in the UK is the throat cutting prices wars which interfere with price setting hence the companies find it hard to set their individual prices (Omar, p. Moreover, the prices war has made it difficult to adjust its prices to match the level of inflation because once one company increasing the prices the others may decide to maintain their prices constant impact negatively on sales of the supermarket with increased prices.

Opportunities The supermarket industry in the UK has great business opportunities for growth. For instance, the UK large population of 65. Due to this high competition, the supermarket industry in UK is very innovative where each supermarket must ensure utmost quality to compete favourable(Lauritsen,Britt & Keith p. Potential of new entrants into the market. The potential of new entrants into the market is very low because the four major supermarkets form a formidable force which blocks other supermarkets from entering the market (Lan, p. The four major supermarkets have established an enormous market share. Therefore, it is very expensive for a new supermarket to penetrate the UK market because of the massive public(Lauritsen,Britt & Keith p. Therefore, every supermarkets strives to maintain high customer service in order to maintain customer loyalty.

The high power of customers ensure consistency in quality products and customer in supermarket industry in UK. The threat of substitute products The threat of substitute products is high because of wholesalers who stock similar products and sell to retailers who sell to customers in small quantities(Metzger p. Therefore, customers can choose to buy from the retailers or wholesalers instead of buying from the supermarket which poses ahigh threat of substitution to the supermarkets(Lauritsen, Britt & Keith p. Morever,the individual supermarkets poses high threat of substitution to one another since customer decide freely which supermarket to buy from whether Tesco, Asda, Sainsbury's or Morrisons. Foster, A. , J. Evans, and G. Maidment. "Benchmarking of supermarket energy consumption. " Corporate Communications: An International Journal 20.