Types of Company and their Size and Scope

This report provides an overview of different types of companies and their size and scope. It also explores the relationship between organizational functions and objectives using KFC as an example. Additionally, it discusses the positive and negative impact of the macro environment on KFC's business operations. The report concludes with insights from the SWOT and PESTEL analysis of KFC.

Business &
Business
Environment

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P 1 Types of Company-..........................................................................................................3
P 2 Size and scope of a range of different types of organizations..........................................5
P 3 Relationship between different organizational functions of KFC or any other organization
of your choice and how they link to organizational objectives and structure........................7
TASK 2............................................................................................................................................8
P 4 Positive and negative impact the macro environment has upon business operations of KFC
................................................................................................................................................8
P 5 SWOT analysis of KFC..................................................................................................10
TASK 3..........................................................................................................................................12
P 6 Interrelationship between SWOT and PESTEL analysis of KFC-................................12
Conclusion.....................................................................................................................................12
REFERENCES..............................................................................................................................14

Introduction
Business is the process of buying and selling of products so that the producer can earn money
and satisfy the needs and wants of the consumers. Business Environment consists of all the
internal elements as well as the external factors which includes factors such as employees, needs
and expectations of customers, demand and supply, their management, suppliers, clients, owners
of the company, interference by the government of different nations, technological innovation,
trends in market and social life, changes in economy etc. This report covers a brief description on
KFC which stands for Kentucky Fried Chicken, it is a restaurant which serves fast food. It is an
American brand headquartered in Louisville. Their special recipe is their fried chicken. After
Mcdonald’s it is one of the largest food chain. They have 22,621 stores in 136 countries. The
company was founded by Colonel Sanders on 24 September 1952. This report covers questions
such as types of company, SWOT analysis, PESTLE analysis of KFC, Interrelationship between
SWOT analysis and PESTEL analysis, interrelationship with marketing factors, scope and
objectives of the company. These all questions will cover the brief analysis of KFC that how
they should operate, where to expand, where to improve.

TASK 1
P 1 Types of Company-
Public Company- A public company is a corporation whose ownership is distributed amongst
general public shareholders via the free trade of shares of stock on exchanges or over-the-counter
markets. NHS is a public company and it has distributed its ownership among the public and
their shareholders. The shares of the company are traded within an open market with many
people ready to invest in their shares. (Dey, 2019)To establish it minimum of 7 no. of people is
required and there is no limit for maximum and requires a paid up capital of 5 lacs and the
company whichever private company if it is a subsidiary of the public company then it will be
considered as a public company. To establish it NHS has completed every requirement which is
needed legally to set up a accompany. They have completed their documents such as
Memorandum of Association and Articles of Association and to invite and accept the funds from
public they have made their prospectus.
Private Company- This company is registered by the proprietors when it is operated by a sole
person or a partnership. The scale of the company is not very larges but in exceptional cases it is
large. KFC was established as a private company with minimum of 2 members and they had a
limit up to 200 members. Minimum amount for paid up capital required to start a private
company is 1 lacs and can go up to the suitability of the business. AS a private company KFC
cannot transfer its shares. The company has put some restrictions on it to void takeovers by their
competitors and by that they ensure the safety of the company. KFC does not take any kinds of
deposit from the public as it sells their franchise to the rightful owners who can maintain their
name in the market. With this the issue of selling shares and raising money from the market is
totally gone. Their are only 2 directors in the company and no one is independent.
Voluntary Company- Oxfam serves as a voluntary company in the market. The company has
joined hands with 19 other organizations which serves in charity and focuses on removing the
issues of poverty faced by people globally. These type of companies serves as a non profit
organization and so does Oxfam. The executive director of the company is Winnie Byanyima .
the company was founded in 1942 with headquarters in Kenya. The company has NGOs which

works for giving education to the children and provides facilities to those who are in need. The
aim of Oxfam is to provide equal opportunity to the community of poor people such as wages to
be distributed equally and have equal rights over any issues they face in their life. Company
believes that they must be treated equal in every way. The main focus of the company is to
provide facilities for women and children so that they can reduce their vulnerable conditions.
The legal structure of Oxfam is that they held their trustees responsible for the law of charity and
on their activities and assets. (Grigore and Drăgan, 2015)
Sole trader- a person who is the exclusive owner of a business, entitled to keep all profits after
tax has been paid but liable for all losses.
Partnership- A partnership is a form of business where two or more people share ownership, as
well as the responsibility for managing the company and the income or losses the business
generates
P 2 Size and scope of a range of different types of organizations
NHS KFC Oxfam
Size Size of NHS is that
they have made their
services available in
countries such as
England, Scotland and
Wales and it is
affiliated with social
and health care in
north Ireland. The
company was
established 71 years
ago at the time of
second world war and
they have 170,000
employees working
for them.)
Size of KFC is that
they have over
100,000 employees
working for them and
more than 22,000
stores which are
operated in more than
135 countries. It is the
second largest food
chain after
McDonald’s.
Size of Oxfam is that
it has joined hands
with 20 different
organizations so that
they can fight together
on issues related to
poverty, how they
affect and how it is
caused so that they
can remove these
issues. Scope of
Oxfam is that they
want to change the
thought process of
people so that they
can distribute equal
powers among people
so they can reduce

poverty on global
basis.
Scope They provide their
services at free of cost
for the UK residents
but only charges for
services related to
dental care and optical
care. The patients are
also been given
exemption on the
charges of
prescription. They
also made delivery to
their patients at free of
cost. (Lee and
Klassen, 2016
According to
estimated reported the
company feeds around
12 million people
daily. Reports suggest
that more than 185
million people see
their advertisement. It
is because of the
successful marketing
that the company
achieves so many
results and achieves
success in the market.
Scope of the company
is that they want to
serve in every country
of the world. As the
company is a
international brand
which is known by
everyone it is easy for
the company to assess
this operation and
complete the task
successfully. Their
focus is on increasing
their quality only by
doing that the
company can increase
their share in the
market they have
targeted. The goal of
the company is to beat
McDonald’s and gain
their share so that they
can capture the
market of fast food
They work on finding
ways for the people to
fight which are more
of a practical
approach and ways
which are innovative
so that they can get
them out of poverty.
They help in
rebuilding the lives of
those people who are
needy at the time of
disaster management
and help save lives of
people who have
loosed hope.
(Gavurova and et.al.,
2017)

restaurants. (Khan and
Quaddus, 2015)
Large Medium Small
Objectives and Goals The objectives of
large organization like
NHS is to enhance
patients outcome.
The objectives of
medium size
organization like
Captify is to increase
their market share
The objective small
size business is to
settle their business
Market share They have been
established at various
places
They are trying to
cover various places
They are trying to
grow their business
Sustainability They are following
CSR activates
They make sure that
pollution does not
take place.
They make sure that
people are engage in
making environment
clean
P 3 Relationship between different organizational functions of KFC or any other organization of
your choice and how they link to organizational objectives and structure
HR-
The HR department of KFC is more concerned with managing the issues related to diversity in
culture. Mostly in India and China, KFC focuses and aims to expand their market and capture
and obtain more share in the fast food industry. But the department of HR is facing many
problems in managing the team and recruiting the employees because of the cultures in
countries. That is why in western countries KFC is not a successful brand and are not satisfying
the customers because they failed in recruitment and training that is why the company has taken
the help of marketing department to help them out and find them suitable candidates to work

with so that they can grow their name in the market. It is necessary for both the departments to
go hand in hand. (Lee, ed., 2017)
Finance-
Finance is needed to carry out the operations in the day to day business operations as without it
no task can be completed be it marketing or any other element. Same goes the other way around
as without the team of marketing company cannot spread its awareness which will result in
loosing profit for the company and if the company has to raise funds from market it cannot be
done without marketing that is why both departments needs to work together and go hand in
hand. Otherwise KFC will loose its efficiency and monetary share in the market. (Akhtar, and
Sushil, 2018)
Research and Development-
KFC needs to adapt new technology and resources and enhance them according to the culture
they are operating in. For that both the departments of marketing and research and development
needs to work together. For instance if marketing department is lacking somewhere the R&D
department of KFC will tell them that this area has a lot of scope and when the R&D department
is facing problems like they need men to cope up with the advancements then marketing
department will help find suitable candidates so that KFC can cope up with the market. (Hillary,
2017)
TASK 2
P 4 Positive and negative impact the macro environment has upon business operations of KFC
(COVERED IN PPT)
P 5 SWOT analysis of KFC
(covered in PPT)

TASK 3
P 6 Interrelationship between SWOT and PESTEL analysis of KFC-
SWOT and PESTEL are similar approaches to analyze the business. These both approaches
strongly correlates with each other. The only difference is PESTEL of KFC focuses on external
environmental factors that affect the business, whereas SWOT analysis focuses on both internal
and external factors. PEST explores the political and legal landscape by looking at employment
laws, political issues, taxes and regulations that impact the business. By evaluating and joining
both the analysis KFC can know where to improve they know now they have to start offering
healthy and vegan food instead of only fried chicken as more and more people are shifting to
healthy food and the company needs to cope up with external factors. Also by following this
company will not face threat from PETA or any other organization about the treatment of
chicken how they preserve it etc. By offering healthy food this threat will be eliminated and all
the accusations these organizations put on the company will be gone too. Ultimately this all will
help to maintain the name of the brand in the food industry and will not let customers shift which
will help the company to grow their share in the profit and can expand easily into new markets.
Then company don’t even have to worry about the taste of local people and how to target them.
Just marketing by advertising and various channels will be enough. (Prajogo, 2016)
Conclusion
From the above studies it has been concluded that KFC has to change their way of operating in
the market otherwise they will loose their fair share. Company also needs to change their
suppliers who contaminate the food and increase the issues such as adultery and preservation of
food. By changing them it may disturb the flow for once but it will save the reputation of the
company. To survive in the market KFC has to adapt according to the taste and choices of people
they have to start serving healthy food otherwise they will be long gone against their competitors
because buns can be converted into a healthy food but fried chicken cannot. Company has also
partnered up with other companies such as Pizza Hut and Taco Bell so that they can offer various
items to the public. The idea which they started and implemented in Australia must be started in
every country as it saves the time of people its easy as it sounds click and collect and more

importantly it improved the sales and profit of the company that is why it is necessary to
implement it. The company is also focusing on improving their quality and they have already
announced to introduce chicken sandwiches in their list of menu and vegan items which will be
beneficial as it will improve the customer base of the company. This report also gives a brief
description on the SWOT and PESTEL analysis of KFC.

REFERENCES
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