Different Types of Companies and Organizational Structures

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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