Table of Contents

Introduction............................................................................................................................2
Business..................................................................................................................................2
Organization...........................................................................................................................2
Business Organization (firm)...................................................................................................2
Different types of organizations..............................................................................................3
Private Sector..........................................................................................................................3
Public sector............................................................................................................................4
Voluntary Sector.....................................................................................................................5
Legal structure........................................................................................................................6
Sole Trader..............................................................................................................................6
Partnership.............................................................................................................................6
Limited companies..................................................................................................................7
Public limited companies.........................................................................................................7
Private limited companies.......................................................................................................8
Franchising..............................................................................................................................9
Joint Ventures.........................................................................................................................9
Size and Scope of different types of organization...................................................................10
Size of Organization........................................................................................................................10
Scope of organization............................................................................................................11
 ................................................................................12
Business profile of Shwe Thanzin Company Ltd......................................................................12
Organization Structures........................................................................................................13
Organization Functions.........................................................................................................13
Organization structure..........................................................................................................14
Introduction
It is significant to understands the environment of the business and its external and internal
factors as competitors and other factors are influencing on the operating of the businesses. It is
crucial for the business to have knowledge about the scope, functions, structure and appliance
of different tools and strategies to exam the business environment.

Business
Business can be regarded as the involvement of people that strive together to accomplish goals
and purposes that is established within the workforce. It is essential for a business to have
principles that reflect the business’s integrity and a vision that shows what it excepts to achieve
in the future. Business can be also described as an action of producing goods and services that
is supply to the public with a motive of receiving profit (Collins & Collins, 2008).

Organization

Organization is refers to as where individuals or group of people collaborating together to

achieve a common goal, organization usually consists of a form structure which includes
hierarchy and division of labor (Anderson , 2020). While forming it organization have to be
directed to follow specific legal process like tax identification, business registration or corporate
accounting records. There are many terms to describe about an organization which include
business, government institutes, agency, associations and much more.

Business Organization (firm)

Firms are stated to be as an organization that applies the usage of productive resources to turn
and access into finish products and services that are offered into market with the intention of
turning it into a profit moreover not every entities are firms they are just one type of
organization operating and their primary goal is to make money by selling goods and services to
the consumers. In addition, they are known to carry out social function of production by
converting raw material into usable goods (Deakin, et al., 2021).

Different types of organizations

There are numerous business activities that the participant of the business engage in it is
categorize into three sector which are public, private and voluntary.

Private Sector

Hartill (2021) Stated that private sector private sector organizations are part of the economy
which is run, owned and controlled by individuals and they are distant from public sector
organizations as they acquire their finances from putting up on sales of their produce goods and
services. Additionally, businesses in the private sector compete for the money of consumers
and are subject to comparatively little government oversight because of the fair market
circumstances brought about by competition, prices stabilize. Examples of these would be
following down below:

Sole proprietorships: Technicians, web developers, teachers, plumbers

Partnerships: Legal, accounting, dentistry

Private owned corporations: Hospitals, Restaurants, food and retail, Hotels, Tourism agencies

Advantages

 Private ownership and controlling, monitoring, managing its own business without any
interference or participation of government therefore has all rights to decide its own.
 Support in the development of the country it promotes the industrialization and
community development processes in the country.
 Set up employment and creating job opportunities in the community.
Disadvantages

 Resources are limited businesses could be in a difficult financial position therefore the
managerial resources and other aspects can be relatively scarce.
 Setting up company registrations and following legal procedures have high cost and
have various policies to follow which results in complications.

 Risks of being in difficult situations as prices can be influence by the economy and the
government.

Public sector
Organizations in the public sectors are fundamentally distinct and separated from the private
sector moreover they are multifunctional which follows the direction of political leadership as
well majority of the business do not operate like other business from private sector in the
external market (Røvik, et al., 2007). Thus, the public sector organizations offer governmental
services or any public services that is beneficial for the society these include public education,
healthcare, law enforcement, infrastructure and so on.

Advantages

 Deliver public services or goods to the public from the government at no cost to the
citizens this benefits the welfare of the country
 Maintain the economy to be stable with variety of rule and regulations that are essential
for the economic stability are issued by the government and has big influences, eg.
Monetary policies and fiscal policies
 Maintain safety and order, the power to uphold law and order lies with the government.
For instance, it's critical for maintaining the business and investment environment
(Nasrudin, 2023).

Disadvantages
  Creativity and innovation are rarely seen as there are not much competitions therefore
improving efficiency is not urgently concerning that being the case resulted to absence
of innovation.
 Corrupt government can lead to many issues such as inadequate healthcare, severe
poverty and insufficient resources for the society and its organization.
 Political interference can make changes in the spendings, providing basic needs to the
general public

Voluntary Sector

The term "voluntary sector" describes groups or non-profits organization whose main objective
and purpose is for the social wellbeing or to create social impact for the public moreover there
are wide range of institutional structure coming from variety of form including from large,
professional organizations to tiny, neighborhood communities (Spicker, 2012). The phrase can
apply to social organizations, religious groups, artistic communities, campaigning organizations,
fundraising groups, and community service groups. Example of these organizations are Save the
Children, UNICEF, International Committee of the Red Cross, NGOs and much more.

Advantages

 Direct assistance to those who are in need

 Strives to push for longer-term, more comprehensive social or systemic change
on behalf of those who are excluded.

Disadvantages
 Can have hard time raising for the funds or sometimes will not have sufficient
funds to provide
 Possibility of lacking of experiences and knowledge to manage effectively
Legal structure
Numerous forms of organization have different legal structure and they are government
agencies, cooperatives, sole trader, partnerships, limited liability companies, joint ventures,
outsourcing, franchising, and lisening.

Sole Trader

Sole traders are familiar and repeated form of business organization, it is a business operated
by one just one person (Stimpson & Borrington, 2018). Example of sole traders: Pilate
instructor, Taxi driver, Gardener, Doctor, photographer

Advantages

 Few legal requirements and procedures to go through

 Has complete control over the business
 If the business does well and money flows in well the profit will be kept by oneself

Disadvantages

 Does not have benefit of limited liability as the business and the owner does not have
separate legal entity therefore if debts are pile up the business has to face and is
responsible for it.
 Capital for expanding large can be limited if the source of finance is restricted

Partnership

Partnership is group or institute form by two or more individual agreeing to jointly associate
and cooperate together to construct a business, the purpose of partnership is to contributes
each individual’s thoughts ideas, and capital moreover running of the expenses and shares will
be divide as well when the profit is made (Stimpson & Borrington, 2018). Examples of
partnerships would be real estate, physician groups, medical practices, architectural firms.

Advantages
  Roles, tasks and responsibilities will be undertaken and share by each member therefor
it benefits the business running and performances adeptly
 Losses or difficulties encounter by the business will be experience and undergo by the
partners.

Disadvantages

 Disagreements and disputes between the partners could occur under those
circumstances consulting each partner’s will difficult and timely
 If one individual is lacking skills or inefficient it could harm the business working
environment

Limited companies

A limited company is a sort of business structure where the liability of the company is set at its
assets. As a distinct legal entity with distinctive advantages and protections, it is separate from
its owner or shareholders, also known as investors (Andreou , 2023). Limited companies can be
classify into two group which are private limited companies (ltd) and public limited companies
(plc). Examples of limited companies is Nike, E bay, IBM, Pepsi-Cola, Blackberry and much more.

Advantages

 Brand name and its identity is secure

 Limited Liability

Disadvantages

 Liable for Corporate tax and business has to undergo the process
 Administrative duties have numerous functions such as checking on business financial
accounts, expenses and documentations of tax and paper work

Public limited companies

Public limited companies are owned and run by shareholders where they are available to sell
shares to general public and the market as well exchanging and dealing with stocks in the
market place (Stimpson & Borrington, 2018). This type of business organization is appropriate
and fitted in for wide-reaching business as they are able to expand nationally and globally.
Examples are TESCO PLC, Domino’s, EasyJet Plc

Advantages

 No restriction on purchasing, trading, exchanging of shares

 Favorable circumstances for the business as large capital quantity be able to invest

Disadvantage

 Legal actions and paperwork for forming the company are quite complex and time
consuming
 Putting on sales of the shares to the public is costly

Private limited companies

Private limited companies are owned and employ by shareholders also known as investors
which are count among one possession by the people of the company of attaining the shares
(Stimpson & Borrington, 2018). Additionally, the shareholder of the companies are keeps under
control not to sell shares to the public. Example of these companies are Apple Inc, Pizza Hut
Ltd, Roll-Royce Holdings plc.

Advantages

 Each Shareholders in the company is access to limited liability

 Shares can be put into sales for large number of people

Disadvantages
  The shares cannot be sold or transfer to a different person when the shareholders of the
business be in the same mind or opinion.
 The accounts of the shareholders are revealing and its not secure or have privacy as the
corporation must sent it to the registration of companies and to the individuals of the
public.

Franchising

This is an arrangement where a franchisor with a service or a product handed the franchisee
the rights and authority on distributing its goods directly to the customers and as well
utilizations its business identity, ideas, design, names, concepts trademarks and business
models to operate for a specific time period and covering widely and geographically (The
Economic Times, 2023). Examples of franchising would be The Body Shop, KFC, McDonald’s,
Dunkin Donuts and so on.

Advantages

 High advantage on achieving for the franchisee as the brand recognition is strong
 Has low chance of business going bankrupt

Disadvantages

 Poor management on of the outlets can lead to disgrace on the business’s name
 Not being able to make decisions or intervene for example not being able to decide or
choose whether the product range suits the area that the franchisee is in charge of

Joint Ventures

Joint ventures can be stated as when two or more organizations are comprises and structure
together to start a new project by sharing of the capitals, plan, objectives, goals along with the
risks and profits (Stimpson & Borrington, 2018). Example of the joint ventures are BMW and
Brilliance Auto Group, Microsoft and General Electric, Walmart and Eko
Advantages

 Risks are fairly share

 Expenses and operating costs are contributed by all the participated companies
Disadvantages
 Disagreements over the important matter can take place
 Dissimilar approach and strategy or working culture implement in the workforce can
distress the partners

Size and Scope of different types of organization

Size of Organization

Gooyabadi (2021) stated that the size of the organizations is one of the main elements which
determined the number of employees or staff, performances, market shares and how much
accessibility the organization is consists of furthermore it also plays a significant role in the
success of the work environment.

Figure 1: Defining a business by size (Chadwick & Chaffey, 2018)

Organization can be grouped according to size from small, medium, large and international.

Size of Organization Define by OECD

According to (OECD, 2023) small business fall into the range of employees from 10-49
operating, this type of organization employs just a handful of people and conducts its own
operation on the small scale. As for the microenterprise it employs and are operated by less
than 10 individuals due to lower cost of start -up and operating expenses microbusiness are
well liked and popular among the form of businesses (Nelson , 2023). Medium size organization
are either start-up or businesses which already exits they are usually business that operates to
the extent of manufacturing, provisions of services and social work normally consists of 50 to
249 workers. As for the large organizations as per (OECD, 2023) has a broad reach of activities
and resources employing more than 250 individuals on manufacturing, providing of services or
social welfares.

Sizes of Organizations Define by SMES Myanmar

Myanmar’s SMES are defined base on factors such as labor, production volume, capital
investment and power (HP). Different from the EU, SMES in Myanmar carry out operations as
small and medium sized business and is changing as well not stable power levels and
investments. Small enterprises have 10-50 number of staff with production value per year of
2.5million and with the capital investment of 1 million along with utilization of power 3-25HP.
As for the Medium enterprises it consists of 51-100 individuals working, production value of
yearly is up to 2.5 to 10 million, usage of power 26-50HP and capital investments of 1 to 5
million kyats (Ministry of Industry 2, 2010).

Table 1: Size of organization (SMES) Myanmar

NO Category Small Medium

1) Power Usage 3 to 25 26 to 50
2) No.of workers 10 to 50 51 to 100
3) capital investment (kyat million) Up to 1 Over 1 to 5
4) Production value per year (million) Up to 2.5 Over 2.5 to 10
Source: (Ministry of Industry 2, 2010)

Scope of organization

An organization’s scope and impact are influenced by a number of variables which includes its
targets, organizational framework, operational procedures, sources of financing and services
supplied moreover the organization’s scope can be define by these factors. The range, regions
and other aspects covers by the business are also base on the scope. For instance, large
business will have wide scope as it operations work at large-scales (David , 2023).

Figure 2: Logo of Shwe Thazin Company LTD

Business profile of Shwe Thanzin Company Ltd

 Name: Shwe Thazin Co.,ltd

 Founded year: 1990
 Type of organization: private limited company
 Number of employees: More than 100
 Size of organization: Large
 Scope of Business: Wide (Distrbution throughout Myanmar and as well Exports)
 Location: 17/18, Bahosi Housing Estate, Lanmadaw.Tsp Yangon
 Products: Beans, Seasemes, (detergent products) Gold (kao Products) Laurier, Merries,
Attak essay, Biore, Haiter, Magic clean (manufacture prodcuts) Bwin, Phyuphwe, Fuji
  Type of products: Export, Manufacture, Distributions goods
 Industry: Detergent

Vission : To become one of the most renowned and respectable businesses in Myanmar
and eventually the entire world by offering the highest-quality, most affordable
products that satisfy the customer’s unique needs and desires.

Mission: The ability to build a learning society for the internal customers and offer high-
quality products at a reasonable price to Myanmar people

Objectives

Organization Structures

An organizational structure is a set of rules that specify how particular tasks are carried out in
order to achieve a strategic objective these activities include roles, rules, and obligation in other
words an organizational structure is a graphic representation of the roles, responsibilities, and
hierarchy of employees in a company (Gordon, 2022). The are various types of organizational
structures which are Functional, Divisional, Hiearchical, Flatarchy, Matrix and Network
structures.

Organization Functions
In order to achieve the company's ultimate goal, task alignment and labor division among
employees constitute an organization's function because it deals with allocating staff resources
and effort, it is also referred to as the second most important managerial position moreover the
functions of organization are to specify a person's role, appointing responsibility, assigning
responsibility, Coordination, Specialization, efficient utilization of human resource and much
more (M, 2023).

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