Contents

Task 1.........................................................................................................................................2
Introduction................................................................................................................................2
Company Profile and Biography................................................................................................2
Different types and purposes of organizations structures..........................................................2
Functional Structure........................................................................................................2
Divisional Structure.........................................................................................................3
Matrix structures....................................................................................................................3
Different types and purposes of legal structures........................................................................3
The Sole Trader......................................................................................................................4
Partnership.............................................................................................................................4
Limited Companies....................................................................................................................4
Limited companies and limited liability................................................................................4
Franchising.............................................................................................................................5
Joint ventures.........................................................................................................................6
The size and scope of a range of different types of organizations.............................................6
Canadian SME Definition......................................................................................................7
Task 2.........................................................................................................................................8
Advantage and disadvantages of interrelationships between organizational functions.............8
Type of structures...................................................................................................................8
Functional Strategy Advantages and Disadvantages.................................................................9
Divisional Structure Advantages and Disadvantages................................................................9
Matrix Advantages and Disadvantages......................................................................................9
Horizontally-Linked Advantages and Disadvantages............................................................9
Disadvantages of interrelationships between organizational functions...................................10
Conclusion...............................................................................................................................11
References................................................................................................................................11

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Task 1

Introduction

Company Profile and Biography

In this paper, I assume myself as a business development of Shwe Pa Zon Coffee-mix
Manufacturing Ltd., which is a leading diversified manufacturer of instant beverages and
convenient food products that are marketed and distributed globally. Incorporated in 1987,
Shwe Pa Zon is a pioneer in the manufacture of 3-in-1 beverage products. The Company was
accredited Pioneer Status by the Singapore Economic Development Board for its role in the
introduction of instant cereals in 1994 followed by its soluble spray dried coffee in 1998 and
non-dairy creamer in 2003. It is also the only company in Singapore and the region with the
manufacturing capability for instant soluble coffee, cereal flakes and non-dairy products.
Adopting a global outlook, the Group operates internationally with 12 advanced
manufacturing facilities throughout the region in Singapore, Malaysia, China, Myanmar and
Thailand. Each facility is equipped with state-of-the-art manufacturing lines, which are
customized to meet rigorous manufacturing requirements. Shwe Pa Zun’s products are
distributed through our extensive global distribution network of direct sales offices and
distributors strategically located, spanning 52 countries worldwide. Besides building up our
distribution network, Company has also made headway in establishing ourselves as leading
contract manufacturer.
Besides innovation in product, quality remains a cornerstone of the Company’s
philosophy. Stringent quality control and full automation ensures that the products are
manufactured with consistently high quality – a quality which leads to repeated purchases
from consumers around the world. Over the years, Super has struck several key alliances and
partnerships with multinational corporations with the aim to build mutually beneficial
relationships to further enhance Company’s brand equity.

Different types and purposes of organizations structures

Functional Structure

Functional structure is set up so that each portion of the organization is grouped

according to its purpose. In this type of organization, for example, there may be a
marketing department, a sales department and a production department. The functional

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 structure works very well for small businesses in which each department can rely on the
talent and knowledge of its workers and support itself. Functional organisation structure
allows individuals to be grouped together on the basis of their specialisms and technical
expertise, and this can facilitate the development of the function they offer as well as
production providing a recognised path for promotion and career development.

Divisional Structure
Divisional structure typically is used in larger companies that operate in a wide
geographic area or that have separate smaller organizations within the umbrella group to
cover different types of products or market areas. For example, the now-defunct
Tecumseh Products Company was organized divisionally--with a small engine division, a
compressor division, a parts division and divisions for each geographic area to handle
specific needs. The benefit of this structure is that needs can be met more rapidly and
more specifically, as each division can operate more or less independently for the other
divisions in the company.
However, a divisional arrangement can also be cumbersome, as communication is
inhibited because employees in different divisions are not working together. Divisional
structure is costly because of its size and scope. Small businesses can use a divisional
structure on a smaller scale, having different offices in different parts of the city, for
example, or assigning different sales teams to handle different geographic areas.

Matrix structures
The third main type of organizational structure, called the matrix structure, is a hybrid
of divisional and functional structure. Typically used in large multinational companies,
the matrix structure allows for the benefits of functional and divisional structures to exist
in one organization. This can create power struggles because most areas of the company
will have a dual management, which is a functional manager and a product or divisional
manager working at the same level and covering some of the same managerial territory.

Different types and purposes of legal structures

After deciding to establish a business, you must choose the type of legal structure that
best suits your business. Most small businesses start out as either a sole proprietorship or
partnership, but other options may be better for your particular business. Each structure has
trade-offs briefly discussed below. Be sure to contact your attorney and/or accountant to learn
the details and legal requirements of each.

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The Sole Trader

This is the simplest and least regulated form of organization with minimal legal start-up
costs. One person owns and operates the business. The profits and business income are taxed
as personal income. The major disadvantages are unlimited personal liability of the owner for
all claims, taxes and debts against the business and the potential dissolution of the business
upon the owner’s death. As a sole trader you will be legally responsible for all aspects of the
business. You’ll generally make all the decisions about starting and running your business
and you can employ people.

Partnership
A partnership is relatively easy to form and can provide additional financial and managerial
resources. Each partner is an “agent” for the partnership and can individually hire employees,
borrow money and operate the business. Profits are still taxed as personal income and the
partners are still personally liable for all partnership debts and taxes. Our company join some
company like our business as for help. We also use mutualism relationship. (Anon., n.d.)

Limited Companies
A limited company is a type of business structure which has been incorporated into a legally
distinct body or ‘person’. A special arrangement, called a “limited partnership,” allows
partners to avoid personal asset liability. There are special income tax rules for Limited
Partnerships. When entering into any partnership, a written agreement is essential.

Limited companies and limited liability

Within some business structures – such as the sole trader set-up – there is no legal distinction
between the owner's finances and the business's finances. As such, if a business fails, the
owners are personally responsible for any debts. Because a limited company has separate
finances and is legally distinct from its owners, shareholders have limited liability – meaning
that owners and shareholders are not personally liable for any losses or debits incurred by
their business. Limited liability is one of the main advantages of the limited company set-up

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as shareholders are only legally responsible to the extent of their original investment, and can
only lose the capital they initially put into the business

Corporation
The most complex of business organizations, the corporation, acts as a legal entity which
exists separately from its owners. While limiting the owners form personal liability, it creates
a “double taxation” on earnings. The corporate also allows capital to be raised through the
sale of stocks and bonds and can continue to function as a business even without key
individuals. It also enables employees to participate in various types of insurance and profit-
sharing plans. Corporations must be registered with the Secretary of State and there are
considerable costs associated with creating a corporation.

Franchising

Definition: If buying an existing business doesn't sound right for you but starting from
scratch sounds a bit intimidating, you could be suited for franchise ownership. Just what is a
franchise--and how do you know if you're cut out to be a franchisee? Essentially, a franchisee
pays an initial fee and ongoing royalties to a franchisor; in return, the franchisee gains the use
of a trademark, ongoing support from the franchisor, and the right to use the franchisor's
system of doing business and sell its products or services. In addition to a well-known brand
name, buying a franchise offers many other advantages that aren't available to the
entrepreneur starting a business from scratch. Perhaps the most significant is that you get a
proven system of operation and training in how to use it. New franchisees can avoid a lot of
the mistakes startup entrepreneurs typically make because the franchisor has already
perfected daily operations through trial and error. Reputable franchisors conduct market
research before selling a new outlet, so you'll feel greater confidence that there's a demand for
the product or service. The franchisor also provides you a clear picture of the competition and
how to differentiate yourself from them. Finally, franchisees enjoy the benefit of strength in
numbers. You'll gain from economics of scale in buying materials, supplies and services,
such as advertising, as well as in negotiating for locations and lease terms. By comparison,
independent operators have to negotiate on their own, usually getting less favorable terms.
Some suppliers won't deal with new businesses or will reject your business because your
account isn't big enough.

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Joint ventures
A joint venture is a cooperative enterprises entered into by two or more
business entities for the purpose of a specific project or other business activity. Often the joint
venture creates a separate business entity, to which the owners contribute assets, have equity,
and agree on how this entity may be managed. The new entity may be a corporation, limited
liability company, or partnership. In other cases, the individual entities retain their
individuality and they operate under a joint venture agreement. In any case, the parties in the
JV share in the management, profits, and losses, according to a joint venture agreement
(contract). Joint ventures are often entered into for a single purpose - a production or research
activity. But they may also be formed for a continuing purpose.

The size and scope of a range of different types of organizations

Size can be defined as a structural property (like degree of formalization) or a contextual

variable (like demand). It's a property at the interface between internal structures and the
environment. Often it is treated as an independent variable that shapes and determines other
structural variables. Size often characterizes the scale of the work being conducted.
Size is measured in several ways such as floor space, sales volume, clients served, net assets,
etc. Most common is the number of participants, which is often most relevant in dealing with
structural properties and work output. But sometimes it's difficult to separate participants
from non-participants, and productivity differences can make comparisons difficult. The
Shwe Pa Zun is not only produce coffee but also mango. The mango of our Shwe Pa Zun is
unique in Yangon. Because our mango is plant naturally, no use of chemical. I want to show
you some photo about our coffee company.

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 Small businesses are privately owned corporations, partnerships or sole
proprietorships that have fewer employees and/or less annual revenue than a regular-sized
business or corporation. Businesses are defined as "small" in terms of being able to apply for
government support and qualify for preferential tax policy varies depending on the country
and industry. Small businesses range from fifteen employees under the Australian Fair work
Act 2009, fifty employees according to the definition used by the European Union, and fewer
than five thousand employees, to qualify for many U.S. Small business administration
programs. Small businesses in many countries include service or retail operations such
as convenience stores, small grocery stores, bakeries or delicatessens, hairdressers or
tradespeople, etc. which re in very small-scale manufacturing, and inter-related businesses
such as web design and computer programming. Our Shwe Pa Zun company is the one of the
small business company in Myanmar.
Small to medium enterprises (SMEs) make up the vast majority of
businesses in most countries. In the EU, a similar system is used to define Small to Medium
Enterprises. A business with a headcount of fewer than 250 is classified as medium-sized; a
business with a headcount of fewer than 50 is classified as small, and a business with a
headcount of fewer than 10 is considered a micro-business. The European system also takes
into account a business’s turnover rate and its balance sheet.

Canadian SME Definition

Industry Canada uses the term SME to refer to businesses with fewer than 500 employees
while classifying firms with 500 or more employees as "large" businesses. Breaking down the

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SME definition, Industry Canada defines a small business as one that has fewer than 100
employees (if the business is a goods-producing business) or fewer than 50 employees (if the
business is a service-based business). A firm that has more employees than these cut-offs but
fewer than 500 employees is classified as a medium-sized business. A micro-business is
defined as a business with fewer than five employees. In its ongoing research program that
collects data on SMEs in Canada, Statistics Canada defines an SME as any business
establishment with 0 to 499 employees and less than $50 million in gross revenues.
China's definition of an SME varies by industry.
Here are some examples:
Industry Staff headcount Revenue (RMB) Assets
Heavy Industry < 1000 ≤ 400 m  
Wholesale Trade < 200 ≤ 400 m  
Retail < 300 ≤ 200 m  
Transportation < 1000 ≤ 300 m  
Warehousing < 200 ≤ 300 m  
Accommodation < 300 ≤ 100 m  
Restaurant/Catering < 300 ≤ 100 m  
Software/IT < 300 ≤ 100 m  
Real Estate Development   ≤2b ≤ 100 m
Information Transmission < 2000 ≤1b  

Task 2

Advantage and disadvantages of interrelationships between organizational

functions
Type of structures
The four most common types of organizational structure are functional, divisional,
matrix and horizontally linked. Many companies, especially very large ones, may use more
than one type of structure. For example, the sales division may use a functional structure,
while the research and development division uses a matrix structure. In addition, companies
may need to change their organizational structure over time, as the size and business goals of
the business change.

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Functional Strategy Advantages and Disadvantages
In a functional structure, all of the decision-making occurs at the top levels of
management. This ensures that upper management has complete control over the
organization. It also provides a clear career trajectory for employees, from junior-level
positions, up to the top decision-making positions. A functional structure provides stability
and efficiency, especially in large and complex organizations, because everyone uses similar
processes. This also allows large businesses to take advantage of economies of scale.
However, this type of structure can also lead to poor communication between departments,
situations where departments do not work together and inter-departmental conflict.
Customers may also become frustrated by lack of cooperation if they have to work with more
than one department.

Divisional Structure Advantages and Disadvantages

In a divisional structure, divisions are organized geographically or by product line

or marketing area and each division includes people from each area of the business. For
example, the European division of a company may handle all of the firms' business with
Europe and include its own accountant teams, sales teams, research and development teams,
and human resources teams – all of whom report to the division head. This allows the
company to respond quickly to customer needs and helps more employees develop
managerial skills. The disadvantage of this structure is that there can be a lot of redundant
effort and competition between divisions.

Matrix Advantages and Disadvantages

Organizations with a matrix structure have no chain of command. Employees work in teams,
which they develop and organize. Employees can change teams to work in areas where they
are needed or are interested in working. This works very well in smaller organizations and in
those businesses where resources and specialist employees are scarce, as everyone is kept
busy and can be moved around to where they are most needed. This structure increases
employee skills and involvement but can lead to employee confusion and frustration because
lines of reporting are unclear. It can also be difficult to set priorities when employees are
moving between competing projects.

Horizontally-Linked Advantages and Disadvantages

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This structure is primarily found in the IT and high-tech sectors. In a horizontal structure,
employees are grouped by function into three areas – planning, building and running. For
example, the planning department is responsible for developing new projects and may
include employees from research, development and finance. The building department would
then construct or assemble the projects; and the running department would include sales,
marketing and maintenance. This structure allows the company to respond quickly to
changing market conditions and technological advances but may not work as well for
companies that produce products with a longer lifespan, or for service industries.

Disadvantages of interrelationships between organizational functions

However, one of the drawbacks to a functional structure is that the coordination and
communication between departments can be restricted by the organizational boundaries of
having the various departments working separately. In the functional structure, functions are
separated into different groups, resulting in some defects. Here are the major disadvantages
you must consider:
1. It will lead to poor communication and coordination across functional units.
2. There will be lack of understanding across departments.
3. They focus more on their own goals and neglect the overall company objectives.
4. Communication in organizations with functional organizational structures can be
rigid.
5. Slow to react in response to environmental changes.
6. It stifles innovation when the problem occurs or environment changes.
7. The autonomy within units might increase when the company grows, which cause
difficulties in management.
8. The specialization will lead to a narrow viewpoint and lack of overall perspective

A matrix organization is a cross-functional work team that brings together

individuals from different functional departments, product departments or divisions to
accomplish a specific goal. As a result, a dual-reporting organization structure is formed
where each member of the matrix organization reports to the manager of the cross-functional
team as well as the manager of the department that sourced the team member. The matrix

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organization is an adhocracy design that has four major disadvantages: psychological stress,
conflict, inefficiency and cost.

Conclusion
The external environment in which businesses operate changes very quickly.
Political, economic, social and technological changes all put pressure on organisations.
Logical is a global business that provides innovative solutions in data and systems
management for its clients, helping their organisations to respond to external factors.
Business environment is the important process among business unit. The nature of the work
that Logical can offer an employee is both challenging and stimulating. Many approaches are
used in many business environments. As our company, these following structure and
functions are efficient for our company.

References
Anon., n.d. HIGHER NATIONAL IN BUSINESS CORE TEXTBOOK. s.l.:Kogan page.
Anon., n.d. Shwe Pa Zun. [Online]
Available at: http://www.shwepuzuncake.com/index.php/agricultural-page
Anon., n.d. What is the venture and how does it work. [Online]
Available at: https://www.thebalance.com/what-is-a-joint-venture-and-how-does-it-work-
397540
Nordmeyer, B., n.d. Disadvantages of organization. [Online]
Available at: http://smallbusiness.chron.com/disadvantages-organizations-matrix-approach-
22115.html
Sherman, F., n.d. What is the relation between organizational function & organization
structure. [Online]
Available at: http://smallbusiness.chron.com/relationship-between-organizational-functions-
organizational-structure-18571.html
Taffer, J., n.d. Entreprenuers.

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