P3 – Describe how two contrasting businesses are organised
Organisation 1: BAA
• Organisational structure
The division of work helps people know what they need to get done, which helps avoid conflicts from arising and decisions made by individuals conflicting with each other. In BAA this would help employees getting confused about what they have to do. Lines of control mean that if people know what they are doing, their activities can be controlled, for example: a manager of a department in BAA employees. Lines of communication are also important, these are normally in groups so everyone is aware about what needs to be done, however in BAA the senior managers or directors tell the managers what needs to get done, then the managers make this happen with their team.
BAA is a geographical structure, as they own several airports in different countries. This means that there are divisions to serve local needs and communicate with local customers better. This encourages positive competition between divisions: e.g. Europe vs. USA vs. Asia. However, this way, problems might arise between local and central management.
• Functional areas
. Finance – The finance department keep records of financial activities of the business, in BAA, this would mean keeping track of money that they receive in way of tickets or anything else. They also provide managers with information, so that the managers can make informed decisions for the company e.g. if BAA were bringing in a lot of money, the managers could think about expanding the business, however if they were doing badly, the managers would need to think about cuts they could make to save money, and not end up in administration. Finally, the accounts are divided into two sections: Financial accounting (keeping track of financial events as they happen) and Management accounting (supply managers with information that helps them make decisions).
. Marketing – This group identify, anticipate, and satisfy customer requirements. They also carry out market research to find out useful information such as: what, where, when, and how much. Within BAA, this group would help to find out if customers want more shops in one particular area (e.g. fashion, sports, etc.), and if customers are happy with what they are being given. If they aren’t, it is this department’s job to find out what they can do to fix it. Finally, they have an important say in the 4P’s – price, products, place and promotion.
. Production – This department organise who makes goods, and how and when they are made. In BAA, this could be the types of food they deliver, if people want another McDonalds then it is this department’s job to make it happen. The production managers are responsible for making sure that the raw materials are made into good products. They also supervise work, and make sure it is carried out to a high standard.
. Customer service – They look after the customer before, during, and after the sale. They also carry out surveys to make sure that standards are kept to a good level e.g. how helpful the people dealing with customers are, and whether the customer gets what they want in the end. Many MNC (Multi National Corporation) centers are dedicated to customer services.
. Sales – The sales team’s job is to get people to buy things. They do not have to be customers, but could be businesses. They work closely with the marketing department. This is because it is the marketing department’s job to find out what customers want, and it is the sales team’s job to sell these products. BAA would have a small sales department, as it is a multinational company, meaning they rely on advertising to boost their sales. Having a large sales department would be a waste of money.
. Human resources – This team is concerned with looking after the employees and their needs. They have an extremely supportive role, helping managers with recruitment or redundancy. This would help BAA a lot as they have…