Different Types of Companies and Organizational Structures

This report discusses the definition and characteristics of different types of companies, including micro, small, medium, and large enterprises. It also explores the organizational structures and their impact on business productivity. Additionally, the report analyzes the external environmental factors and their impact on business performance. The examples of Tesco and Arcadia Group are used to illustrate these concepts.

BMP3002 Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Definition and characteristics of different types of companies...................................................1
Definition and characteristics of sole traders, partnership, cooperatives and limited liabilities
of companies................................................................................................................................2
Different organizational structures and their impacts of business productivity..........................3
Analysis of external environmental factors and their impact on business performance (550)....3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business and business environment are considered as organization business environments
looking to have superset of the both internal and external factors. This has inclusion have
operation of company on the grounds of facilities in manner. The environment of business has to
look into dynamic nature with change in government policies, change in taste and preferences or
change in technology. There will be discussion on different definition and characterises of
different type of companies such as micro, large, small and medium. On the hand, there will be
discussion with sole traders, partnership, cooperatives and limited liabilities of companies.
Beside this, report will have discussion on the external analysis of the different companies foster
as well as coordinate other companies and also support country in improving economy by
bringing new ideas of performing functions.
Definition and characteristics of different types of companies
As per the size, businesses are being divided into mainly 4 types such as:
Micro: All those enterprises that are being run at very small level are known as micro
enterprises. It employs less than 10 employees with turnover of less than EUR 2 million. They
provide range of care and support services. Such enterprises generally based on business that
help people in achieving or increasing new skills, making new friends, leading a healthy life and
overall enjoying a healthy and effective life (Schaer and Kuruppu, 2018). In the regards to
investment it can be said that people require investing money in plant and machinery up to 25
lakh and in equipments is to not more than 10 lakh. Grocery stores are main example of micro
enterprises. Most of the micro enterprises also deal and sell dairy products, vegetables and fruits.
Small: It includes all companies or enterprises that employ fewer than 50 people and main aim is
bringing innovation within environment and helping people by providing employment
opportunities. They do not operate business for earning much money but for fostering their
family. In regards to investment amount it can be said that there is requirement of investing
amount in plant and machinery for more than 10 lakh but up to 5 crore. Investment in
equipments should be more than 10 lakh but does not exceed to Rs 2 crore. Personal wellness,
consulting, coffee shop, salon are some examples of type of small businesses. Fourex and Cafe
Pod Coffee are main examples of small enterprises of the UK.
Medium: All those enterprises that are being run at more than small level and employ up to 250
employees or more than 50 employees are known as medium size enterprises. Turnover of these
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enterprises should be less than €50 million. All those enterprises where people invest in plant and
machinery for more than 5 crore but less than 10 crore. In equipments investment money should
be more than 2 crore but less than 5 crore. Such enterprises also want to foster as well as
coordinate other companies and also support country in improving economy by bringing new
ideas of performing functions. Digital marketing, sales advertising are main examples of
mediums size organizations (Giaoutzi, Nijkamp and Storey, 2016). Furniture manufacturer,
leather products manufactures are some other examples of medium size organizations. Verdant
leisure is one of the main examples of such size of enterprise.
Large: Those organizations that employ more than 250 employees are known as large
enterprises. The main aim of such enterprises is to earn money, compete with large multinational
organizations (Park, 2017). HSBC, British American Tobacco, Tesco BT group, Vodafone are
some examples of large scale of organizations. In the regards to Tesco it can be said that it is one
of the well known and large retailer of the UK.
All these may be sole proprietors, partnership and corporations.
Definition and characteristics of sole traders, partnership, cooperatives and limited liabilities of
companies
Sole traders: This legal set up business is the one that is owned and run by one single person.
All losses and profits are being barred by the one person that control business and known as sole
proprietor. Business owners or sole proprietor is not legally separated from the business that is
why he is lonely responsible for all aspects of business including finance. Sole proprietors are
easy to set up and if he wants then he can employ workers but eventually the final responsibility
of all debts and profits remains with the owner (Kasahun, 2020).
Partnership: All enterprises that are being run or owned by 2 or more than 2 people. Relation
between partners is mainly governed and secured by deep of partnership and this deed consists of
all rules and guidelines that protect all partners against lawsuit, cheating and others. It also
consists of responsibilities that each partner has to carry. Losses and profits are being also
divided as per the investment amount of each partner (Francois, Dundas and Ramkissoon,
2016). As like sole proprietorship, partnership also have unlimited liability that means partners
are personally liable for debts of the business. It may be small, medium and large organizations.
John Lewis is an example of partnership.
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Cooperatives: A cooperative is an association of persons that is owned as well as controlled by
people with the main aim of meeting common economic, cultural and social needs. Central
England Cooperative is example of cooperative.
Limited liability: Limited companies are incorporated and are separate legal entity and also
have their own legal status. Limited companies are incorporated as a legal person in the UK and
they may be either private limited or public limited. In regards to private limited it can be said
that it is small privately held businesses that is limited by shares. Because business is limited to
having shareholders that means such limited companies cannot list their shares on the stock
exchange. For setting up private limited companies there is no minimum capital requirement
(Ramanadham, 2019). They only require issuing 1 share at the time of incorporation because it
protects people from personal liability as well as personal risks. Arcadia group is example of
privately limited company.
Public limited liability: These companies are limited liability of companies that can sell their
shares on the stock exchange freely. There is requirement of minim capital and in the UK
minimum capital requirement is £50,000. They also require presenting annual return every 12
month. They can appoint 2 directors and 1 company secretary. For trading there is also requirement
of trading certificate from companies house and include PLC their name (Different Types, Size and
Scope of Organizations, 2020). They may have different types of shares such as redeemable,
ordinary, preference and others. The main aim and advantage of public limited companies is to raise
finance by selling of shares to public. Sainsbury PLC is an example of public limited company.
Different organizational structures and their impacts of business productivity
There are different types of organizations that follow different organizational structures and
selection of structure is mainly depending upon the size and legal entity. For example, Tesco
follows different organizational structure and Arcadia private limited follows different structure.
Hierarchical structure: Tesco follows hierarchical organizational structure that consists of 4
layers of management. This functional hierarchical structure focuses on different departments of
business. In this type of organizational structure flow of information and chain of command goes
from senior management to general employees (Saiti and Stefou, 2020). All important decisions
are being taken by senior management which are then passed down. main
Analysis of external environmental factors and their impact on business performance (550)
Pestle analysis of Tesco
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PESTLE analysis of Tesco is considered to be business tactics examining up the various
external factors such as political, economic, social, technological (PEST) which impacts its
business along with legal & environmental factors. This have considered to be framework
looking to the imperative part of companies in order to create better understandably regarding the
market and improve up business in continuous manner.
Political factors
Tesco is the British retailer operating in wide variety of countries such as Ireland, Hungary,
Poland, Slovakia, Malaysia, China, Czech Republic, and others. Brexit have created up allot of
uncertainty in the political environment which is mostly conducive to the political business
environment in better manner.
Economic factors
As the global economies have severely being infected by COVID 19 to look into losing
the jobs. this have accepted to loosen up various loosening of the customer earning going down
and making customer to shift for cheaper brands. This is directly affecting the firm operation and
profits.
Social factors
Company is looking up to take various initiatives in response to change of social aspect.
Company is enabling up branded halal meat to meet demand of Muslim customers. on the other
hand, company is selling up both branded and own label halal meat in the different countries in
specific manner.
Technological factors
Tesco is having continuously advancements making force behind company success using
up customer form both UK and many other countries in which company is operating up in
significant manner. there have self service checkpoint providing customer with convenience and
help to reduce cost.
Environmental factors
World are facing up enormous pressure to make up addressing of various environmental
issues. Tesco have taking up the high level of initiatives vowing to remove the one billion piece
of plastic packaging by the end of 2020.
Legal factors
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Government policies and legislations have impacted the Tesco directly reporting up the
UK and EU competition law prohibit anti-competitive activities. Tesco cannot just simply merge
with, or purchase another supermarket of its size in the UK as the country’s competition.
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Arcadia group
Political factor
The Brexit have potential impact business in various area including supply chain,
workforce, manufacturing. There has been current help in reduction for administrative burdens
encourage trade to Europe looking at the national VAT registrations threshold set by each
company.
Economic factors
Acarida have opened up 34 new outlets for the topman’s and top shops and 45 stores
including the partnership in the different website. Making up shopper the easier perspectives.
there is need to have more convenient for consumers as a quick way to spend money.
Social factors
Acarida is looking at the different ways being looking convenient to their customers as
proper example for fashion footprint. This is basically monitoring up sustainable business
footprints helping to achieve business goals looking their important perspectives such as
products, environments, employees and communities in basic manner.
Technological factors
Arcadia fashion have fully immersed for the forefront retail personalized technological
experiences. The company is looking at the immerse fully customer buying experiences looking
effortless online shopping. The technological issues are looking majorly into the current social
issues regarding weight, appearance and perception supply chain, workforce, manufacturing.
Legal factors
Various legislation is placing up protecting employees and employer within workplaces. There
has been providing up their process of setting up new factory and auditing, including the
minimum ethical trading standards along with covering health and safety. There have been
improvements working labour topics.
Environmental factors
Arcadia fashion have to look into the clear and visual environmental section on their website
under the section ‘Fashion Footprint’ which is very accessible. Ensuring with continuous
involvements in both production and quality of their products.
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CONCLUSION
It has been summarized from the above study that different types of organizations can be
differing than each other with the investment amount and turnover. Different types and size of
organizations have different amount for investment and number of employments. It has further
discussed legal entity and structures of different types of organizations like sole proprietor,
partnership, corporations and others. It has also shown different types of organizational
structures that different size of organizations follows and impacts that they have on their overall
performance and productivity. Some external environmental factors like social, political,
environmental and others also affect performance of companies
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REFERENCES
Books and Journals
Francois, J., Dundas, J. and Ramkissoon, S., 2016. A partnership enterprise: scenario based
learning for diverse nursing students working in a diverse community.
Giaoutzi, M., Nijkamp, P. and Storey, D.J. eds., 2016. Small and medium size enterprises and
regional development. Routledge.
Kasahun, A.K., 2020. The Impact of Working Capital Management on Firms’ Profitability-Case
of Selected Sole Proprietorship Manufacturing Firms in Adama City. IOSR Journal of
Economics and Finance (IOSR-JEF), 11(1), pp.45-55.
Park, J., 2017. Analysis on success cases of smart factory in Korea: leveraging from large,
medium, and small size enterprises. Journal of Digital Convergence, 15(5), pp.107-115.
Ramanadham, V.V. ed., 2019. The nature of public enterprise. Routledge.
Saiti, A. and Stefou, T., 2020. Hierarchical Organizational Structure and Leadership. In Oxford
Research Encyclopedia of Education.
Schaer, C. and Kuruppu, N., 2018. Private-sector action in adaptation: Perspectives on the role of
micro, small and medium size enterprises. Private-sector action in adaptation:
Perspectives on the role of micro, small and medium size enterprises, p.7.
ONLINE
Different Types, Size and Scope of Organizations. 2020. Online Available through: <
https://www.iqualifyuk.com/library/business-management-section/different-types-size-
and-scope-of-organisations >
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