How two businesses are organised Essay
How two businesses are organised
In this assignment I will be discussing about how two businesses are organised. The two businesses that I will be discussing about is BHP Billiton and Battersea Dogs and Cats home. The first business that I will be discussing about is BHP Billiton and how they have organised their business.BHP Billiton is an Anglo-Australian multinational mining, metals and petroleum company headquarter in Melbourne. BHP Billiton is the world’s largest mining company measured by 2013 revenue. It was created in 2001 through the merger of the Australian Broken Hill Proprietary Company Limited. The first way BHP Billiton is divided into is within the function. Within BHP Billiton the function is the Chief Development Officer who is in charge of development of the company and researches about countries that BHP Billiton has not mined in. chief Financial Officer who is in charge of finance of the business.
The Chief Legal Counsel is the person is who is responsible for the legal issue within the business; this is done by meeting the legal requirements for a particular business. The Group Vice President Human Resources is responsible for the people management within a business. Vice President and Chief Marketing Officer is the person who is responsible within making sure that the business meets their customer needs, they also make sure that they also meet their business needs, this is done by making sure the business has the right quality of product, the price of the product and also by advertising their product to attract the target market which are the customers.
BHP Billiton is organised by the product group. These roles consist of the President Petroleum, this is the person who is responsible for all the extraction of the petroleum, the Senior Minerals Executive, and this is the person who is responsible for all the minerals collected from the mining. President Energy Coal, this is the person who is responsible for collecting the coal. President Carbon Steel Materials, this is person who is responsible for making of the carbon steel.
The second business that I will be discussing about is Battersea Dogs and Cats home is the United Kingdom’s oldest and most famous home for dogs and cat and is situated in the Battersea area of London. It is financed by voluntary donations with an income of almost £12.2million in 2010. The main aim of the business is to reunite dogs and cats with their owners and work in a community to educate people about responsibility of ownership. Battersea Dogs and Cats home has only one organised structure which is function also known as department, there is 9 functions within this organisation. This consist of Director of Education and Events, this is the person who is responsible for doing events for the business for the company to have the attention and awareness for people to donate.
This is also done by going into schools to educate kids about on how to take care of animals and the responsibility they will have for the animal. Director of Communications, this is the person in the company who is responsible for the communication of media contact for the organisation and giving a better value of the company. Director of Finance is the person who is responsible for making sure that all the donations that come in for the business are recorded and kept safe, they also make decision for the finance of the business and how it should be dealt with. Director of Human Resources is the person who is responsible for the person’s management within the business. Director of Estates and Facilities, this is the person who is responsible for making sure that the business has the right facilities for the business that will be able to take care of the animals.
Director of Fundraising, this is the person who is responsible for arranging fundraising events so that people can donate money for the business. Director of Operations (Customer Service), this is person who is responsible for customer complaints and enquires. Director of Operations (Animal Welfare) this is the person who is responsible for the welfare of the animal and also the safety of the animal. Director of Veterinary Services, this is the person who is responsible for the medical and health of the animal.
The Line of Control is an individual who is responsible for the line of management. BHP Billiton has used the line of manager. For example BHP Billiton have done this by having the ‘Top down’ approach this means that the manager of the company such as the CEO are at the top are responsible for everyone who works within the business. This is done by making sure that all the staffs is doing the right job and if everything is up to high standard. The line of control for Battersea Dogs and Cats Home has four lines of control and 18 spans of control.
The staff and employees report to the managers and the managers will report to the director. Battersea Dogs and Cats Home also have a 3 layer structure, this works by the Chief Executive informing the directors on what they have to do for the business and then they will pass on the information to the managers so that they are then able to pass on to their staffs and volunteers. Within these two businesses I will be looking at those four different ways in dividing work within the organisation which are the following:
2) Geographical location
3) Product groups
4) Types of customers
The first organisational structure is function. This is when the people who in the department are divided up what their purpose in the company are, for example marketing. The second organisational structure is geographical location, this is the people who work in the company are divided up by where they work, or what area of the country/world they look after. The third organisational structure is product groups, this is the people who work for the company are divided up by what they produce or look after in the company. The four and last organisational structure is type of customers, this is the people who work in the company are divided up by which type of customers their job related for, for example individual customers or business customers. Within these four organisational structure BHP Billiton only two of these structures.
The first structure is Function; this is the area that is responsible for a particular job in the department such as finance, development officers, petroleum, and legal counsel, vice president of Human Resources, Vice President of Marketing, President of Metals and Carbon Steel Materials. However Battersea Dogs and Cats Home only have one of these organisational structures. The type of organisational structure they have is function but have are divided into nine groups, this is the director of communications, Director of Education and Events, Director of Finance, Director of Estate and Facilities, Director of Human Resources, Director of Fundraising, Director of Operations (Animal Welfare) and Director of Operations (Customer Service).
BHP Billiton Chart for their Business
BHP Billiton has this hierarchy structure to present their business as they have a more of a wider range of employees that work within departments and businesses. The charts show us how each employee works in the business and what their job role is.
Battersea Dogs and Cats home chart for their Business
Battersea Dogs and Cats Home have used a more of a flat structure to represent their business. The organisational structure that has been used to represent this chart is function and also has been used to be divided in nine groups which have been shown in the chart.
Span of Control:
A span of control is the number of people who report to one manager in a hierarchy. The span of control has been used in each business, for example the span of control has been used in BHP Billiton as they only have 5 span of control which has different departments reporting to the CEO or Deputy CEO, this is why in the hierarchy it shows a structure of how the role has been played and has a wider range. The span of control has also been used in Battersea Dogs and Cats Home as the structure consist of 18 spans of control but has been divided into 9 departments with the staff and volunteer which report to the manager and inform about how the business is doing.
The production functional area is the part of a business where goods are produced, manufactured or assembled. Some businesses especially those that don’t product good but instead provide services, call this area ‘operations’. BHP Billiton does this by making sure that staff is working effectively to meet their production service targets. They can also do this by making sure their product is up to date and are high standard of good quality so that they are able to be sold to customers around the world.
The marketing function area is the part of the business that identified and tries to meet customer’s needs. They will also try and ensure their business has the product, price and advertising that will appeal to their target customers. BHP Billiton can do this by carrying put market research to find out what new products customer wants. They can also do this by making sure they reach their target markets and to achieve their aim.
The Human Resources functional area is responsible for people management in a business. This can be done by making policies about people in the business for example about the workplace safety. BHP Billiton can do this by recruit employees that are related to a particular job role and to make sure that the health and safety for staff is always there.
The purchasing functional area is the part of the business that is responsible for buying all of the supplies the business needs to run effectively. This includes office supplies like paper and stationary but also the raw materials used for production. This can be done by buying goods for the company. BHP Billiton can do this by finding suppliers who are reliable and can supply good quality.
The sales of functional area are the part of a business that gets customers to buy or consume what the business produces. In some businesses, the sales functional area is a part of the marketing functional area. Marketing staff find out what customers wants. Sales staff needs to get customers to buy the product. BHP Billiton can do this by managing the sales team making sure that their product are being sole and to also develop strong positive relationship with customers.
The finance functional area is responsible for keeping records of financial transaction and giving managers the information they need to make decisions about the business. It is important that managers are aware of the financial situation of the business so that they can consider the effects decisions they will make will have on the business finance. BHP Billiton can do this by producing annual account statements and providing financial information to management.
The customer service functional area is the part of the business that looks after customer enquiries, concerns and complaints. BHP Billiton can do this by answering customer’s enquiries and complaint they have about the business.
Battersea Dogs and Cats Home
Battersea Dogs and Cat Home have only six functional areas, this includes; Human Resources, Customer Service, Sales, Finance, Marketing and Production/Operation.
The human resources functional area is responsible for people management in a business they make policies and rules about the business for the people, for example the health and safety and to help recruit people into the business. Battersea Dogs and Cats Home can run induction training for all new volunteers and also staff training to update product knowledge about new products in the shop.
The finance functional area is responsible for keeping records of financial transaction ad providing information to managers to make decisions about the business. This is important for managers to be aware of their financial records. For example with Battersea Dogs and Cats Home is they provide the Chief Executive with cash flow statements showing donation income and expenses and to also provide the CEO with annual revenue and sales data. Customer Service:
Customer service functional area is the part of the business area that looks after customer enquiries, concerns and complaints. Battersea Dogs and Cats Home will do this by having a customer service for customers to ask any question they want about the business and to also give complaints and concerns about the business
The production functional area is part of the business where goods are produced, manufactured or assembled. Staffs are required to meet their production or service targets. Some businesses that do not produce goods but instead provide services, is called ‘operations’. Battersea Dogs and Cats Home will make sure that products are in stock for the Battersea shop and the online shop.
The sales functional area is part of the business that gets customers to buy or consume what the business produces. In some businesses, the sales functional area is part of the marketing functional area. Marketing staff find out what customers want sales needs to persuade customers in to buying their products. In non-profit voluntary organisations (like charities) that provide their products or services for free, there is no need for sales functions area, to convince donors to donate to organisation. Battersea Dogs and Cat Home will do this by having volunteers work for their business and customers that donate for the business.
The marketing functional area is the part of the business that identifies and tries to meet customer needs. They will also try and ensure their business has the product, price and advertising that will appeal to their target customers. Battersea Dogs and Cats Home will do this by speaking at a local secondary school to encourage the student council to raise money and to also produce leaflets explaining how people can donate at home. Explain each functional area role in the business and how it helps to achieve their aims and objective:
Human resources at BHP Billiton will include by running induction training for all new staff and staff training to update product knowledge about new products in the shop. The managers will do this by giving the same aim to all the staff and to make sure they are all doing their job right. The objective and aim of Human resources for BHP Billiton is to make sure they make profit for their business as the will also achieve their business aim. Customer service at BHP Billiton will include answeringcustomer’s enquiries and customer complaints and services. They use customer service surveys to find out what customers think of service in the shop. The objective and aim of customer service at BHP Billiton is to make sure they answer customer enquiries and complaint and to make sure they provide this service to customers.
Finance at BHP Billiton is to keep up to date with their financial profit and how much they are making. They will provide the Chief Executive with cash flow statements showing donation income and expenses and to also provide the CEO with annual revenue and sales data. The objective and aim of BHP Billiton with finance is that they will keep records of all the profits they are making and having a cash flow chart to show how much they have progressed throughout the year. Marketing at BHP Billiton is to try and meet their customer needs and will also make sure their business has the right product and price. They will also analyse data to identify and target customers.
The objective and aim of BHP Billiton with marketing is that they will sell their product globally to customers and will market their products to other business to sell to customers in their shop. Production/Operation at BHP Billiton is where the goods are produced, manufactured or assembled. Staffs are required to meet their production or service targets, make sure raw materials and services are variable managing staff. Make sure that products are in stock for the BHP Billiton and the online shop. The objective and aim of BHP Billiton of production is to give good service to customers and to make sure the product of their service is high quality.
Battersea Dogs and Cats Home:
Human resources for Battersea Dogs and Cats Home will include staff training to update product knowledge about new products in the shop and to also run induction training for all new volunteers, they will also make sure that all animals have a shelter and are looked after properly. The aims and objectives of human resources is by making sure that every staff that works in the business knows what they are doing and are sure of what to do so that the business goes well. The aim of this is that they will be a good service for the customers when donating to the business. Customer service at Battersea Dogs and Cats Home is that they ae able to answer customer enquiries and complaints. This is by having good customer service towards the customers. To use customer service surveys to find out what customers think of service in the shop. The objective and aims of customers service is that they are able to have high standards of services for the customers so that they are able to give their enquiries to the business.
The aim of having good customer service is that they will be able to have more customer awareness as they will improve their service with their opinion. Sales at Battersea Dogs and Cats Home is that customers get to buy what the business provides, this is also by having the organisation and raising money for charity. They can do this by setting up events to raise money and donate to their business and the animal welfare. They can also do this by speaking at local secondary school to encourage the student council to raise money. The aims and objectives of Sales is that you are able to raise and donate money to the business. This will increase their profile around the UK. Finance at Battersea Dogs and Cats Home is that you can keep records of the business financial situations; they will also be able to see annual money that they are making every month and year.
To also provide the Chief Executive with cash flow statements showing donation income and expenses. The aims and objectives of finance is that you are able to provide the CEO with annual revenue and data and also be able to keep records of all the donations made. The aim of sales with Battersea Dogs and Cats home is that to sell as many of their products that they can and to also make profit for their business. Marketing at Battersea Dogs and Cats Home tries to meet customer needs; they will produce promotional information to advertise what the business does and to produce leaflets explaining how people can donate at home.
The aims and objectives of marketing is that the manager can analyse market to identify and target customers and to make sure the website is updated regularly to inform people about animals that are waiting for adoption. The aim of marketing with Battersea Dogs and Cats Home is that to market their product to customers by making their website look more attractive. Production/Operation, where goods are produced or assembled, with Battersea Dogs and Cats Home is that they make it easier for the customer to donate to the business.
P4 – how organisational structure and strategic planning help BHP Billiton and The Battersea Dogs and Cats Home to achieve their purpose and aims. Strategic planning is the process executives undertake in order to make thoughtful decisions about their organisation mission, value and goals, and properly allocate resources to fulfil directives. A business aim is the goal a business wants to achieve. A primary aim for all business organisations is to add value and in the private sector this involves making a profit. More strategic aims include expansion, market leadership and brand building. A business objective is a detailed picture of a step you plan to take in order to achieve a stated aim. These need to be SMART in order for the business to know what progress it has made towards achieving the objective.
Mission/Purpose Statement for BHP Billiton:
Mission statement: At BHP Billiton our objective is to be the company of choice – creating sustainable value for our shareholders, employees, contractors, suppliers, customers, business and host communities. We aspire to zero arm to people, our host communities and the environment and strive to achieve leading industry.
Sustainability – putting health and safety first, being environmentally responsible and supporting our communities. Integrity- doing what is right and doing what we say we will do. Respect – embracing openness, trust, teamwork, diversity and relationships that are mutually beneficial. .The aim of BHP Billiton is to create long-term value through the discovery, acquisition, development and marketing of natural resources.
The three objectives of BHP Billiton:
To own and operate large, long-life and low cost mines and minerals processing that produce a range of minerals for different customers around the world. To invest and develop large mineral deposits that of high quality that can create profit growth To market products to customers globally from to main marketing offices at The Hague in the Netherlands and Singapore.
Mission/purpose statement of Battersea Dogs and Cats Home:
Mission statement: We aim to never turn away a dog or cat in need of our help, caring for them until their owners or loving new homes can be found, no matter how long it takes. We are champions for, and supporters of, vulnerable dogs and cats, determined to create lasting changes for animals in our society.
We ae passionate about the welfare of dogs and cats, and all of our work is inspired by the needs of, and our love for animals. We have been working tirelessly to provide shelter for animals for over 150 years. We are one of the oldest animal charities in the world and the knowledge and experience we have gained has made us credible leaders in our field We deal with some of the most challenging situations that impact the lives of dogs and cats. We seek to tackle problems at source by working actively with communities and wider society, challenging misconceptions and encouraging owners to take responsibility for their pets and treat animals humanely. We will not shy away from difficult issues.
The aim of Battersea Dogs and Cats Homes is to develop and measure our standards of care and service and to expand our services to help more dogs and cats in need.
Three objectives of Battersea Dogs and Cats Home:
To expand their people so that more people are aware of their organisation To encourage more people to volunteer for their organisation To raise more money for their organisation
Cascading objectives is the objective set on the top which flows down into departments to individuals.
BHP Billiton would cascaded throughout their organisation by setting themselves to make as certain amount of metals bars therefore they would tell each department to make sure they make the metals within the certain time period. BHP Billiton focuses on increasing productions and reducing cost. They cascaded throughout their business by making a certain amount of profit each day with the products that they are selling.
Battersea Dogs and Cats Home:
Battersea Dogs and Cats Home would cascade throughout their organisation by setting an aim of how much money has been donated to them and how much dogs and cats they will want to sell every month. They would cascade by fundraising money into their business.
All businesses need to set objectives, objectives are important they focus organisation. Businesses that have specific aims are usually more successful than those that don’t; because a business with objectives knows what it is trying to achieve.
The benefits for smart objectives are to give a target to aim to, ensuring that all marketing actions and efforts are focused on attaining the objective instead of being inefficiently used. They also give businesses and their staff a sense of direction, a glimpse of where they’re going to. This will benefit businesses as they are able to set themselves a goal. The organisational structure for each business helps them achieve their purpose and aims are by making sure that they reach their goals and to reach the purpose of their business. For BHP Billiton the organisational structure would be by making sure that managers employee people who understand their role within the company.
One method that BHP Billiton can use for their organisational structure is by setting up departments covering the four main areas of business activity such as, the finance, human resources, marketing and operations. BHP Billiton also organise their business with organisation chars, these diagrams that show internal structure of the business. They make it easy to identify the specific roles and responsibilities. Battersea Dogs and Cats Home use organisational structure to help them achieve their purpose and aims is by making sure that all their employees are doing the entire right job and are serving their customers in the right way.
To reach their aims they will give each employee a specific job roles and responsibilities. A method that Battersea Dogs and Cats Homes can use to organise their business is by having different functions so that their business is organised in a way that could be understood. It is important for a business organisation to plan strategic aims and objectives. This is because the aims and objectives are the ‘ends’ that an organisation seeks to achieve. It then has to decide the means it will use to achieve those ends draw up a plan and devise strategy. Many organisations have general or overall aims which they can break down into specific objectives, or targets.
By setting aims and objectives, companies give themselves a sense of purpose and direction. This will provide a framework around which creates their plans. With a particular plan in place, the company will then be able to set particular targets and monitors its progress towards reaching them. The aims of both business are different as they both try to achieve different aims such as BHP Billiton try to achieve their aim by producing more goods such as metal and mining. Whereas, Battersea Dogs and Cats Home achieve their aim by helping animals have a home and are safe. Both of these businesses are different as they have different ownerships and purpose within their business.