Types of Companies: A Study of Aldi and Business Structures

This report provides a study of Aldi and explores different types of companies and their structures. It examines the impact of organizational structure on business productivity and analyzes external factors affecting business performance through a PESTEL analysis of Aldi.

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Contents
Introduction 2
Section 1: Different types of companies and how they work
P
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Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors affecting
business p
Conclusion p
Reference List p
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Introduction
Business practices are the ways, it attempts to do so in the most cost effective way. A
company may have rules for business practices to ensure that its employees are efficient in
their work and abide by applicable laws.
This report will cover study of Aldi which is commonly owned by the two families
from Germany. It is discount supermarket who has 10000 stores in 20 countries and selling
products like grocery and household essentials.
This report will explain the different type of companies how they work within the
market. It will explain different companies from the sole traders to cooperative and limited
partnerships. This report will also consider type of structure and what kind of the structure
used by the Aldi company. In the end of this report will cover PESTEL analysis identify the
factors that affect Aldi.
Section 1: Different types of companies and how they work
Micro business:
Micro business is a type of small business that employs fewer than 10 people. Size
and scale are the main differences between a micro business and small business—micro
businesses often function as sole proprietorship and earn less than $250,000 annually. Micro
business can be any kind of business and ISSORIA is the Miro business firm that was
founded by the Ibi Thomson (Amankwah-Amoah Khan and Wood., 2020). A notwork of
around 6000 business consultants providing the scale of major consulting firm. ISSORIA has
retained the speed with the low base cost of am SM. This company are increase their revenue
by the 178 % within the 2 year which is an good growth for any of the Micro business.
Small business:
Small business are the private business owned by the sole, corporation, partner s that
have some employees and less annual revenue than the normal sized business. Employees in
small business can be around 500 or less and their annual review can be 750000 dollars.
Yelp is the most popular small size business that allow the user for the business directories
and social networking. It lets users post reviews and rate businesses thereby connecting
people with local businesses by bringing word of mouth online. Its 35 m monthly users seem
to rely on appreciate how easy it makes it top request a quote, join wait list and make the
reservations on their site.
Medium size business:
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Medium business work on the national level and this kind of business can be defined
if they are having the fewer employees than 250 and their turnover is under the £12.9 million
which aims to promote entrepreneurship, investment and growth by creating single definition
of SME's across the Eu and the guide have similar categories to the UK's companies Act.
Captify is the best examples of the medium-sized organization who is data driven medium-
sized company specializing in the search intelligence and media decisions. This company
make 1 million of the profit on their 1st year and after that it increase to the 300 % with the
employees around 11 to 65.
Large size business:
Large business are the international level business or it coves the manufacturing or the
mining industries that employed 500 or more individuals within their workplace or those who
do not manufacture the goods and have average of $7 million of the yearly receipts
(Bouwman and et.al., 2020). There are various companies in the large business category of
the Uk. AlDI is also an privately owned organization who are generating 91.9 Billion dollar
of revenue every year and having around 126000 so it can be considered as the large business
and this organization is having huge reputation in all over the world.
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships
Sole trader business:
Sole trader business are owned by the individual person where they put their own
money and share all the profit and losses within the business. To be sole trader it is necessary
for the entrepreneur to registered themselves with the sole trader business. Local electricians
=, plumbers, home clinic etc are the best examples of the sole traders in the Uk they are can
be considered as the sole traders who work privately and share their own profits and losses.
Partnership:
Partnership is the arrangement between tow or more than two people oversee business
operations that shares the liabilities and profits together. They sign the partnership forms for
the business and share equal amount of profits and losses and invest the equal money in the
business. Aldi is also an partner ship business that is between the two German families. Both
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families are operating their business on the international levels and sharing the equal profits
and equal losses in their business and helping the company to grow on the scale effectively.
Limited liability business:
Limited liability refers to the shareholders only being liable for their percentage of their
investment within the business, then they are only responsible for the 20 percent of the
company, including the dept on the organization (Caldera, Desha and Dawes., 2017). In this
business owners are not personally liable for the companies liabilities and their dept. this kind
f companies are Hybrid entities that combines the characteristics of the corporation with
those of the partnership or the sole traders. Oxfam is the examples of the Private limited
company operated their business in UK, and they are 20 independent charitable organizations
focusing on the alleviation of the global grocery.
Public limited liability business:
A public limited liability company is the limited liability organization that offers their
shares to the public and has the limited liability. They are listed to the stock market for the
public and can be acquired by anyone, either privately, during the initial public offering or
through trading on the stock market. Marks and Spencer Plc is the public limited liability
organization who are listed on the stock market London. Their shares are available for the
purchase for the general public but this is private company who just listed as the PLC.
Cooperative:
A cooperative is the private business organizations that owned and controlled by the
people who use their product and services and suppliers. It is typeset of company that is own
and controlled by its owners and these business run pretty much across the board in term of
size. Aldi is the Private company who are controlled by the two families and the owner f the
company share most of the profits and the liability of the company.
Section 3: Different business structures and external factors
affecting business
3.1 Identification of different organizational structures and explaining how
does organisational structure affect business productivity
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There are various organizational structures that has huge impact on the companies
profitability and productivity because here group of the people work together in the end its
impact on the performance of the employees and employees give their best in their work that
directly affect the performance of the company. Poor organization structure means the low
productivity and creativity (Huntington., 2018). It enables the flow of communication within
the workplace of the company and all the level of the Aldi company are aware of the
information that from the upper level to the lower level. Upper level department send useful
information to the lower level the forethought different level and similarity if the lower level
employees what to send any information then they can also flow the structure from the lower
to up.
Here are various structure -
Hierarchical structure
Hierarchical structure is the pyramid shape structure and it is the most comment type
of the organizational structure in which the chain of command goes from the top (e.g., the
CEO or manager) down (e.g., entry-level and low-level employees) and each employee has a
supervisor.
Functional Org Structure
It is same like Hierarchical structure and this type of structure start with position that
hold with the employees. The higher level position are on the top and lower on the down.
Workers are organized on the basis of their sills and their functions and each department
managed separately. Aldi company also use the functional structure to operate their business.
Leaders and managers of the company are top of the level, and they send the information to
their supervision and supervisors send this information to the lower level employees
(Ikelegbe., 2018). Similarly, lower level want to send any important information or
suggestion to higher level then they have to send information to the supervisors send this
information to the higher level of the company or the leaders or are hos-long the highest level
within the organization.
Horizontal plat structure
A horizontal or flat organizational structure fits companies with few levels between
upper management and staff-level employees this type of business structure are mainly
considers by the start up business and basically it can be considered as the simple stricture.
Divisional structure
In the Divisional structures, a company's divisions have controlled over the
companies own resources, it is like operating like their own company within the large firms.
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It and every department carry their own team and departments like IT, sales marketing as it
empower the many divisions to make their own decision without anyone interception in it.
Matrix structure
A matrix structure shows the Cross functional team that are assigned for the special
projects. Examples- engineers many be regularly belonged to the engineering department, but
they will work on the temporary projects within the company.
3.2 How different external factors affect the performance of a business –
PESTLE Analysis
PESTEL analysis of Aldi
Political factor
Aldi is orating their business in 20 different countries and their organization expose
with the various political factors and mostly effect the Tax structure f the country. Every
country has different structure that affect the company's performance because higher taxes.
They also have to make changes in their polices and create polices according to the company
tax structure.
Economic factors
Economic cries like COVID affect the business of the Aldi mostly dues to the lock-
down in the country mostly their stores were open, and they were not able to generate that
much revenue due to the economic crises (Lüdeke-Freund and Dembek., 2017). People are
spending less than before and now they are much focused toward the saving the money.
Social
Social factors has positive impact on the Aldi because they are discount stores and
people now a day look for the more discount and astounding provided by the Aldi is
satisfying the customers and their business is performing well in this area. Aldi also brand
this trending product that is also a reason behind their success and better performance within
the industry.
Technology
Technology has positive impact on the performance of the Aldi company because the
it is helping them to caret good experience for the customers. Now customer can pay theorem
the cards, and they can make self bill on the stores of the Aldi which is satisfying services for
the company. They are also using the effective technology to improve their productivity and
It system for the inventory management.
Environmental
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Environmental activities by the Aldi is affecting their performance within the
industry because it is helping them to create good image in the customers mind. They also
run various programs for to save the environment which is also good initiative for the
company and helping them to grow and creative their brand image (Zellweger., 2017).
Legal
Aldi is having all the license to operate their business on the international level
legally, and they are also paying the taxes on the times for the good relation and better
performance within the markets where they are operating their business.
Conclusion
As per the report has been caved case study of Aldi an it has been explained the
different type of companies how they work within the market where they are operating their
business. It has been examined different companies from the sole traders to cooperative and
limited partnerships with the company examples. This report also has been considered type of
structure and what kind of the structure used by the Aldi company. In the end of this report
has been cover PESTEL analysis identify the factors that affect Aldi.
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Reference List
Books and journal
Amankwah-Amoah, J., Khan, Z. and Wood, G., 2020. COVID-19 and business failures: The
paradoxes of experience, scale, and scope for theory and practice. European
Management Journal.
Bouwman, H., and et.al., 2020. Business model tooling: where research and practice
meet. Electronic Markets.30. pp.413-419.
Caldera, H. T. S., Desha, C. and Dawes, L., 2017. Exploring the role of lean thinking in
sustainable business practice: A systematic literature review. Journal of cleaner
production.167. pp.1546-1565.
Huntington, J., 2018. Managing the Practice: whose business?. CRC Press.
Ikelegbe, S., 2018. Business ethical practice and sustainable national development in
Nigeria. Nigerian Journal of Business Education (NIGJBED).5(2). pp.316-323.
Lüdeke-Freund, F. and Dembek, K., 2017. Sustainable business model research and practice:
Emerging field or passing fancy?. Journal of Cleaner Production.168. pp.1668-1678.
Zellweger, T., 2017. Managing the family business: Theory and practice. Edward Elgar
Publishing.
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