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Unit 1 - The Business Environment Task 2 P3, P4

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This is the full Unit 1 Task 2 which includes P3, P4. I received all distinctions for my work. Do not copy word for word as this is a copyrighted piece of work and copying will be an act of Plagiarism. Describe how two businesses are organised. Describe and explain how their style of organisation helps them fulfil their purposes.

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This task is about how two businesses are organised as well as how the style of each
organisation is used in order to help achieve their purposes.

An organisational structure is used because all businesses need to arrange what needs to be
done so employees know what job they are doing as well as where they need to go for
assistance.

The span of control is the different people under authority over another in a business. The
chain of command is the authority and power passed on from management all the way to the
employees. A hierarchy is a structure in where members of a business are ranked depending
on their authority.

How the two businesses are organised:
The business of Cineworld and NSPCC are organised in dissimilar ways. First of all,
Cineworld consists of a traditional hierarchy structure. The hierarchy structure that Cineworld
has is tall with a narrow span of control that continues to become wider as you move down
the structure. Using a traditional hierarchy structure has benefits such as such as the
employees having clear knowledge of their roles and responsibilities within the business.
Because of this, whenever Cineworld makes a predictable move, it is easily controlled. The
disadvantages of a traditional structure are that it can slow down the progress of a business.
For example, if Cineworld was required to approve a purchase of new supplies in order to
meet an order made by the client, an employee would need to go up the chain of command
until someone with authority approves the purchase. Furthermore, the always changing
economy can make the business have to alter their outdated structure which will cause great
confusion for employees as they will not know who has authority.

NSPCC has a flat organisational structure having no levels of management between
management and employees. In the organization of NSPCC, the CEO and deputy chief
executive make the decisions and give instructions to the employees and volunteers to which
they will carry out. The advantage of having a flat structure is the fact that it removes extra
areas of management improving the coordination and speed of communication between
functional areas. The fewer levels of management also help make an easier decision between
the employees and reduce NSPCC’s costs. The disadvantages of a flat structure are that the
employees lack a specific boss to report to, creating confusion and further struggles. A flat
structure could also limit long-term growth of the organisation.

Organisational Chart of Cineworld




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Catherine Richards, Rob Dransfield BTEC Level 3 National Business Student Book 2
Publisher: mei 2010 ISBN: 9781846906343 Edition: 3

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