Types of Companies and Organizational Structures in Business

Business in Practice

Table of Contents
INTRODUCTION......................................................................................................................2
SECTION 1................................................................................................................................2
Presenting different types of companies................................................................................2
SECTION 2................................................................................................................................3
Describing different companies from sole trader to cooperatives and Limited Liability
Partnership..............................................................................................................................3
SECTION 3................................................................................................................................4
3.1 Identifying different organizational structure and explaining how it affect business
productivity............................................................................................................................4
3.2 Presenting the external factor that affect the performance of business............................5
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

INTRODUCTION
The aim of this report is to examine the types of business run within a market and
their role in different sector. The study will based upon the Tesco which is the largest
multinational company that helps to provide range of product and services to their customer
at low rate with high quality. The study will explain different types of business which include
micro, small and medium size business. Further it provide characteristic of sole trader to
cooperative and limited liability partnership along with examples. Moreover, report will
identify different organizational structure and examine how organizational structure affect
business productivity. Lastly by using Pestle analysis study examine different external factor
that affect the business performance.
SECTION 1
Presenting different types of companies
Micro business: This type of business have 1 to 9 employees but they contribute its
best in the order to increase economy. Such that this type of business are similar to small
business but they may have a difficulty to getting credit and funding in order to start up their
business. Another characteristic of micro business is such that its annual turnover is not more
than £2 million. Also secondary research stated that there are 5.6 million micro business are
working in UK and there are majority of business who have less than 10 employees (XUAN,
2020). For example, Boss Brewing Company which is located in South Wales and it is lead
by a female with an aim to include within different supply chain at world level.
Small business: It is define as a privately owned company and also liable to tax
policy. Also this type of business are implement the same quality management systems which
is found in larger with an aim to attract the customers. Their aim is to feed the family by
making best efforts within its business. There are many industry operating under this field
which helps to attract the customers. The biggest advantage of small business is such that it
start from low cost and employer may easily care for their family and manage the work as
well. Therefore, it also share its part for the growth of GDP and offer many job to the
employees as well (Donner, Gohier and de Vries, 2020). For example, Marshfield Bakery is
the small business who distribute handmade goods throughout UK and Europe and its annual
turnover is also less than £10m. There are 100 employees working in this company with an
aim to offer the best variety of goods to their customers.