Types of Companies

3002 – Types of Companies
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Table of Contents
Introduction......................................................................................................................................3
Section 1...........................................................................................................................................3
Different types of companies and their characteristics...........................................................3
Section 2...........................................................................................................................................5
Different types of organisations on the basis of incorporation...............................................5
Section 3...........................................................................................................................................6
Different organisational structures.........................................................................................6
Impact of organisational structure over productivity.............................................................7
External factors affecting business.........................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
Organisational structure is the base of operations and working culture in an organisation.
(Hatch, 2018) This report has been prepared keeping the Starbucks Corporation (herein after
referred to as only Starbucks) as the base context and the different types and sizes of businesses,
it has to compete with. Starbucks is an American multinational company headquartered in
Seattle, Washington. It comprises of coffee houses and roastery reserves and serves hot and cold
drinks, espresso, latte, etc. and snacks like chips and crackers. Various types of businesses
according to size and type have been discussed in this report. Further, various organisational
structures have been illustrated and in addition, impact of the organisational structure and
external environment of business over the Starbucks is also touched upon.
Section 1
Different types of companies and their characteristics
Companies Act of UK provides a clarity over the distinction among the micro, small,
medium and large companies, which are below mentioned:
Micro, small and medium sized companies
All entrepreneurs starts small and gradually moves towards higher scale. In UK, small
and medium size companies are together called SME (small and medium enterprises).
 Micro companies – All those companies which do not have more than 10 employees and
also, their turnover does not exceed £2 million have been defined as micro businesses.
For example, Coffee Omega.
 Small companies – All those companies which have more than 10 employees but less
than 50 and also, whose turnover does not exceed £10 million are defined as small
companies. For example, Boss Brewing Company.
 Medium size companies – All those companies which have more than 50 employees but
less than 250 and whose turnover does not does not exceed £250 million mark are
defined as medium size companies. For example, CafePod Coffee Company.
Characteristics of SME:
 Fewer employees – Scale of operations of SME is smaller and does not require large
number of employees to run it (Massaro and et. al., 2016). Therefore, SME operates with
fewer employees who handle dynamic portfolios.
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