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BUSINESS BTEC UNIT 1 TASK 2 PASS 3
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Answers of 4 pages for the course Unit 1 - The business environment at CIE (ANSWERS)
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Unit 1 – Business EnvironmentTask 2 – Organising Businesses to Achieve Business Purpose
P3:
Introduction:
In this assignment I will be writing a report describing how two separate organisations are organised
e.g.; Organisational Structure; Functional Areas. I will also be required to describe how the
organisation makes strategic plans.
Business Structure:
- Centralised
A Centralised business structure relies on only one individual to make the business decisions
and provide the direction the business is set to go in. This form of structure is often used by
small businesses since the owner is the one in charge of the business operations.
Having a centralised business is effective because of the fact that business decisions are
made by one member only – his allows for clear goals, targets and business plans within the
organisation. Making the company goals easier to achieve and complete as the plan is alt
more structured.
However a disadvantage that comes with the centralised business structure is that the
business might have many layers of management even though the owner makes all the
decisions – this means that when making a company decision there are many layers to get
through before it reaches operation level meaning the effectiveness of the business could be
sluggish and slow as it goes through the different levels.
- Decentralised
A Decentralised business structure often has many individuals within the company that are
tasked with the responsibility of making the business decisions and controlling the running
of the business. Decentralised organisations rely on a team environment at various levels
within the business – meaning that people at different levels of the business could have
some say so in how the business makes their decisions.
Having a decentralised business is effective because it allows the business to utilize
individuals within in the business with a range of skill sets and targets – giving the business
an expert edge in all areas of the company and helping when it comes down to the running
of business operations. A business structured in this way is able to make sure that their
managers and directors are knowledgeable in handling many aspects of the business and
can help solve and improve the company in many different areas.
On the other hand decentralised organisational structures can struggle because of the fact
that there are multiple individuals within the company that have the power to make
business decisions – this could cause the business to waste or lose time when trying to get
everyone who has the ability to make business decisions on the same page.
- Consideration
Business owners will have to think carefully consider which type of organisational structure
they will choose to use for their company because of the fact small organisations are
typically the ones who will benefit from the centralised structure because of the fact that
the owners of these small organisations are normally at the forefront of the business and
Jordan-Craig Beadle
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