Different Types of Companies and Organizational Structures: A Study on Cadbury

This document provides insights into the different types of companies and organizational structures, focusing on Cadbury as a case study. It discusses the various legal entities, such as sole trader, partnership, limited liability company, public limited company, and cooperative. The document also explores the benefits and challenges of functional and matrix organizational structures. Additionally, it includes a PESTEL analysis of Cadbury, considering political, economic, social, technological, environmental, and legal factors.

Business in practices

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
Various kind of company ...........................................................................................................1
SECTION 2......................................................................................................................................3
Legal structure of the different companies .................................................................................3
SECTION 3......................................................................................................................................5
Different types of organisational structures and its impact on business productivity of
Cadbury.......................................................................................................................................5
PESTEL analysis of Cadbury.....................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Company is a type of business entity that is formed to succeed subjective business
objectives by earning profits. Due to existence of the globalisation and shared economy number
of company are growing in the UK market. There are different types of company divided based
on the scope and shared liabilities this is because there is not single literal recognition of
company they are separated based on the size, power, type of possession and liabilities. The
pursuing report represent the different type of the company and their existence on the basis of
size, scope and obligations
(Tasic, 2019). To support report finding, Cadbury is being taken into account which is second
largest confectionery industry in the world popularly known for its Daily Milk chocolate series.
The undergoing report also outline different legal entities of different companies based on the
kind of ownership and formation of business. In every business operations external factor work
as constraint therefore prosed research also though light on the various external factors that affect
organisational functioning by adopting PESTEL analytical tool.
SECTION 1
Various kind of company
A company is a legitimate business entity that is establish with association of group or
individual that share a specific ordinary business objective. Primary purpose of every company
is to earn profits but there profits are depends in nature of business and size of the company, as
per the Company Act 2107 different types of company on the basis of its size are as follows- Micro size company- Generally a micro size company are termed to be as the start-up
company or a company that that employees strengths not more than 10 and has annual
turnover in the company balance sheet within 1million. In UK every micro company has
a separate accounting standard which are under guidelines of FRS in UK GAAP. Castle
Hill Fire protection company is the leading micro company contractor in UK that install
and fire protection product and system for major building and renovation projects.
Characteristic & features of micro company-
 About every micro organization has single ownership model (in context of Castle Hill
Fire protection company , it is managed and controlled by Andy Stubs.
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 A micro company has capability of employing employees fewer than 10, in reference to
Castle Hill Fire protection company, it have 9 employees
 (Tasic, 2019).
 A micro institution show annual turnover fewer than 2 millions, Castle Hill Fire
protection company has annual turnover of 1 million. Small size company- According to the Company's act of UK, a small is a company
which show annual turnover fewer than 50 millions. In UK nearly 55% companies are
small. CafePod coffee company is an independent craft coffee coffee company in UK
popularly known for its innovative approach to be raise as the strongest coffee brand in
UK.
Characteristic & features of small company-
 A small company annual turnover fewer than of 50 millions pounds. CafePod Coffee
company has recorded annul turnover around 12 million pound in 2020.
 A small companionship are only capable to employee fewer than 500, CafePod Coffee
company has employees 55 employees in 2 different store outlet.
 Small companies are owned by a single or on partnership basis. CafePod Coffee company
founded by Peter Grainger and Brent Hadfield.
 Medium size company - A medium companionship is form of business that has annual
turnover more than 50 million and can employee 1000 peoples. Checkout.com a tech
company whose journey begins as bootstrapped start-up to an international business
organisation provide full-stake payment system (Tasic, 2019).
Characteristic & features of medium company-
 A medium size organisation has annual turnover more than 50 million Checkout.com has
recorded enormous record of revenue about annual turnover of approx 89 million in
2020.
 Medium size business can be owned as partnership, franchise, and limited liability
company.
 Medium size companies has panoramic contribution in the country GDP and these
company provide more employment opportunities.
 Large company- Large sized companionship are blessed with larger economy of scale
and has capture larger market share, these firms has separate business entitle because of
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multiple business operations. Large firms has limited liability and profit margin but they
can transfer their liabilities to other person (Tangour and et. Al, 2019). Cadbury is the
largest confectionery industry in the world popularly known for its Daily Milk chocolate
series the company has international operations and has presence in more than 50
counties with a diversified workforce of almost 71,700 employees.
Characteristic & features of large company-
 Large enterprises has more than 1 organisational structure with numerous operations and
workforce, Cadbury has international presence with employees more than 71000.
 Large institution has annual turnover more in billions, Cadbury have been recorded
about 1,700 million turnover as per the financial audit statement of the company.
 Large company has more complex hierarchical structure as compared to medium
organisations.
SECTION 2
Legal structure of the different companies
As per the business entity, every establishment whether small or large has a abstracted
legal structure that lighten up how company should be operate to succeed in acheiving goal and
objective. Some form kinds of company entity are as follows-
Legal entity
type
Explanation Characteristics
Sole trader
business
Sole trading entity are common and
simple business structure where only one
person do the management and
controlling function. Castle Hill Fire
protection company , it is managed and
controlled by Andy Stubs (Su, Chen and
Wang, 2019).
 Owner has 100% rights to
share business profits and
liabilities.
 Low capital and fewer
formulates need to start business.
 This type of business is
most suited for micro and small
organisations.
 Sole trader has annual
turnover fewer than 2 million and
have capability to employee not
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more than 20.
Partnership In partnership company two or more
partner five their consent on partnership
deed to form business. Partnership is a
kind of business expansion strategies for
some small sole business. CafePod
Coffee company is a form of partnership
firm founded by Peter Grainger and
Brent Hadfield.
 There is need of agreement
between partners for the
lawful business called
partnership deed
 There is need of competence
of partnership in which both
partner share their skills and
capital to obtain common
business goals.
Limited
liability
company
limited liability company separated its
business identity from its owner and have
separate legitimate structure. LLC
company are as well as known as
company limited by shares. In which
shareholder acquire 100% of their secure
output.
 Having separate business
entity, LLC company can
posses and sold any asset on
its company name.
 Genially in LLC company,
proprietor of the concern
company does not implicit
personal liability for business
debts.
Public
limited
liability
company
A public company is one whose major
share can be traded in public.
Furthermore, public limited companies
has little liabilities to its shareholders.
Tesco PLC is a type of public and it is
famous name in the UK retail industry
and earn as the third largest retail
company in the world.
 Public company are being
constituted by the authorities
of UK to act as the
accelerator pedal for society
welfare.
 Public limited liabilities
company has little or few
liability of the business.
Cooperative
company
A cooperative institution is a type of
private company that is managed and
 Cooperative company are
settled to reach special goals
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owned by its members and share
common goals and use resources and
services of the company. Black
Cooperative pub offer premium deals to
its premium and genuine members.
of the members (Roberts,
2018).
 Cooperative company are
normally owned controlled
and manage by its member.
SECTION 3
Different types of organisational structures and its impact on business productivity of Cadbury1. Functional organisational structure
Under functional structure staffs are collaborated based on work specialisation skills or
related role or responsibility. Functional outline is supported on the level of hierarchy that
included different departmental units. Nevertheless, functional structure is quite more appealing
in context of Cadbury to increase organisational productivity because this structure attribute
department based on its functioning. For instance, production department, HR department, sales
department and customer service department. Even so, functional structure is best suited model
in context of Cadbury to improve productivity in context of supply & distribution and for
customer service (Ramanadham, 2019). To guarantee impelling productivity in organisation,
Cadbury need to assure management hierarchy to point-blank employee performance in right
direction.
Illustration 1: Organisational Structure, 2021
(Source: Organisational Structure, 2021)2. Matrix-
Matrix organisational has flexibility feature, which assist Cadbury to focus on especial
projects. A matrix structure is combination of two or more organisational design, In matrix
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structure, Cadbury implicit twofold responsibility and authority for a worker. Not wrong to say,
this type of structure model can create confusion at the workplace because in matrix structure
there are two type of chain command one from the project unit and another one is from
functional units.
(Source: 4 Types of organisational structure, 2021)
PESTEL analysis of Cadbury
External
environmental
factors
Impact on Cadbury performance
Political With the transformation of government from labor party to the Liberal
democrat enchained to disrupt the manufacturing of Cadbury products.
Moreover, it has operations outside UK like India, USA and etc. where
political conditions are unstable. Cadbury currently focusing on outsourcing
its accounting and HR operations to India and UK has trade alliances with
India that help them to setup business easily in Indian territory (Mrňová, and
Roudná, 2020). Home governance have been encouraging Cadbury to render
more employment, this in twist Cadbury can meet increase demands with its
huge workforce
Economy Economic factors are being concern for Cadbury as these factor can quake
financial stability of the firm, despite the global pandemic there is no downfall
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Illustration 2: 4 Types of organisational structure, 2021

of share of company. Cadbury recorded 30% more sale of Dairy milk and
Trident. The only factor affect company economy of scale is currency
fluctuation and capital control by the government, for instance demonetisation
in India.
Social In a one respect Cadbury is developed as a result of social factor because
every one wants to have some sweet after something good happening. But due
to rise of various health issues and diseases people are more health cetered.
There are so much calories present in the chocolate which will result in
obesity therefore people are stopping Cadbury chocolate consumptions which
is probable to decrease Cadbury sell in future.
Technology People taste and preference are being changing on fast span to be able to
abreast to the customer trend, Cadbury need to adopt technology development
in manufacturing of its product with supreme quality. Cadbury has adopted
this phenomena in its production system and company develop and use
pathogens system for manufacturing heat resistant chocolate that gives better
taste in chocolate and people would say loving eat while eating. Company also
inventing candy churner and choclate whip which are highly faster technology
in chocolate manufacturing.
Environmental Cadbury was always stand first to battle with climactic issues morover
Government and public have been exercising immense force on Cadbury to
countenance over environmental issue for welfare of the society. Cadbury
have reduced carbon footprint by 60%after UN guidelines to reduce carbon
emission. This social step have vantage media coverage that will be sure wider
brand awareness of company.
Legal Legal factor are must compulsory laws and guidelines that Cadbury must
follow-up for fine business operations. In confectionery industry government
of UK have implemented some laws and prohibited excess practices (Galkina,
2019). Company has diversify workforce they need to adopt fair wage policy,
if they give under pay to their employees, this impact organisational
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creditability and sustainable business performance.
CONCLUSION
As per the pursued study, it has been found that company is a form of business entity
formed to obtain group or individual goals while earning profit in form of revenue. It has been
found that companies have different form of entity which are based on their kind of possession
and liabilities share. Moreover, it has been evaluated that there is no actual form of business they
are differ in size and scope which are as micro, small, medium and large companies. PESTEL
analytical is effective tool for any company for situational analyse and develop business
strategies.
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REFERENCES
Books and Journals
Galkina, T., 2019. Registration of Types of Business Structures for Natural Persons: Problems
and Potential Solutions.
Huntington, J., 2018. Managing the Practice: whose business?. CRC Press.
Karpenko, L., and et. al., 2019. Formation of the system of fair business practice of the company
under conditions of corporate responsibility. Academy of Strategic Management
Journal. 18(2). pp.1-8.
Mansouri, A. A. A., Singh, S. K. and Khan, M., 2018. Role of organisational culture, leadership
and organisational citizenship behaviour on knowledge management. International
Journal of Knowledge Management Studies. 9(2), pp.129-143.
Mikhailov, Y. I., Sokolitsyn, A. S. and Ivanov, D. V., 2018, September. Project Financing in the
Interaction of Regional and Municipal Authorities and Business Structures. In 2018
IEEE International Conference" Quality Management, Transport and Information
Security, Information Technologies"(IT&QM&IS) (pp. 854-856). IEEE.
Mrňová, Z. and Roudná, V., 2020. FORMS OF FACILITY MANAGEMENT PROVISION IN
DIFFERENT TYPES OF COMPANIES. International Multidisciplinary Scientific
GeoConference: SGEM. 20(6.2). pp.193-200.
Ramanadham, V. V. ed., 2019. Public enterprise: studies in organisational structure. Routledge.
Roberts, J., 2018. Multinational business service firms: development of multinational
organization structures in the UK business service sector. Routledge.
Su, Z., Chen, J. and Wang, D., 2019. Organisational structure and managerial innovation: the
mediating effect of cross-functional integration. Technology Analysis & Strategic
Management. 31(3). pp.253-265.
Tangour, C., and et. al., 2019, April. Digital business model patterns of big pharmaceutical
companies-a cluster analysis. In International Conference on Digital Economy (pp. 397-
412). Springer, Cham.
Tasic, J. K., 2019. Constructing social resilience: a perspective of organisational structure and
informational relation (Doctoral dissertation, Nanyang Technological University).
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