Business in Practice

This document provides an analysis of different types of companies and how they operate in the business industry. It explores the competitive environment, different business structures, and the impact of external factors on businesses. The case study focuses on Diageo plc, a British multinational company in the beverage industry. It also discusses the various types of organizations, such as micro, small, medium, and large, and their competitors. Additionally, it explains different business structures, including sole traders, partnerships, limited liability partnerships, public limited liability businesses, and cooperatives. The document concludes with an evaluation of different business structures and how external factors, such as political, economic, social, technological, environmental, and legal factors, affect businesses.

Business in Practice

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY..................................................................................................................................3
SECTION 1.....................................................................................................................................3
Analysis of the different types of companies and how they work.............................................3
SECTION 2.....................................................................................................................................4
Explanation of different companies from sole traders to cooperatives and Limited Liability
Partnerships.................................................................................................................................4
SECTION 3.....................................................................................................................................5
Evaluation of different business structures and how external factors affect businesses. .........5
CONCLUSION...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business industry is full of the competitive organisation within the different renege and
size. There are the various organisation vary on the basis of their size but compete in the market
for selling of similar product's (Rezaei, and et. al., 2020). So the business industry is the biggest
filed involving the various types of organisation and competitive environmental factors.
Competitive environment is the external system under which organisation compete and perform
for similar services and goods. Diageo plc is the British multinational company deals with the
manufacturing and selling of the beverage product's. Its headquarters in London, England, this
organisation is operating their business throughout 180 countries. In this report different size and
type of organisation is going to be analyse in context to the competition of selected organisation.
Along with this various internal and external factors are going to be evaluated which can in
impact the business.
MAIN BODY
SECTION 1
Analysis of the different types of companies and how they work
Business industry is sub divided into different business categorises such as the food,
clothing, beverage, household product's businesses and so on. So each and every type of product
and services business is run by the different types of company's such as the micro, small,
medium and large below is the explanation of selected organisation and their competitors
(Turner, and Miterev, 2019).
Organisation overview - Diageo plc is the biggest multinational company providing the
multiple type of beverage alcohol. They are having the approx 200 brands of the beverages
though which they operate in 180 countries. In context this organisation there are various type of
competitive company's vary from micro to large size.
Micro- Organisation which is having 10 employees or less, for their business functions is
consider as the micro organisation. If organisation run by the solo trader with less then the six or
without employees then it can be consider as micro type of businesses organisation. boss
brewing company is the micro size business in UK provide best beer (Espinoza, 2019).

Small- Company with 10 to 50 employees is consider as the small size business
organisation. Which posses the characteristics of lower profit and lower chances of lose. Young
Spirits is the small size alcoholic distillers & producers.
Medium- Company which is dealing with the production and servicing of goods and
services with in the aid of 50 to 249 employees is can consider as medium size business
organisation. SHS Drinks is the medium size alcoholic business in UK that is the competitor of
other alcoholic beverage business company's due to their duel business of manufacturing and
selling of alcoholic drinks.
Large- Business organisation which facilitate the effective product's and services
throughout the different area with in the helps of more then 250 employee's is consider as the
large size company. Bacardi is the biggest competitor Diageo plc in context to the large size
business (Julien, . ed., 2018).
SECTION 2
Explanation of different companies from sole traders to cooperatives and Limited Liability
Partnerships
Type of the businesses organisation is can be differentiate on the basis of their
management system and leadership. That how the organisation is manage, by who many person
and legislation. There are some type of business company's are illustrated below in context to the
competition of selected organisation.
Sole traders business – This is the type of self employed business which is run by the
one person as an individual. This type of business is not having any legal identity except their
owner. In this type of business all functions are run, manage or directed by the one owner. So in
this type of company owner do not have to face legal distinction between them and their
business entity's.
Partnership- This is the type of business under which two and more then two partners
managing or running the company in context to the achievement of higher profit and equal share.
Partnership is done in order to run the business with effective financial and resource's support of
each other (Nigmatovich, R.T., 2020).
Limited liability business- This is the type of business category which involves the
company of limited liabilities, that means organisation is directed or run by the selected person

in limited numbers. This basically indicates the type of organisation who's finical and their
management system is comes under the authority of limited individuals. So this involves the type
of organisation which poses the limited libel directors of the organisation, who can be
responsible for every loss and benefits of the company. Company debts have to be manage by
limited liable person of the organisation.
Public limited liability business- Business organisation which run their functions and
operations with in the aid of public fund support. Such for the large project accomplishment of
organisation company collect fund from the public by selling company shares to them. So this is
the type of company which offers the organisation shares to the public with limited liabilities.
That is the beneficial type of business, due to its facility for developing organisation capital by
offering their market shares in exchange of selected price. pernod ricard is the competitor of
Diageo plc.
Cooperative business- This involves the type of organisation which deals with the
production of product's in context to the satisfaction of selected peoples who own and control the
organisation. This is the type of business under which company's run their business throughout
the different target market with in the aid of business members. Who contribute to the
organisation growth and management by putting their interest and labours (O’Keeffe, Johnson,
and Daley, 2021).
SECTION 3
Evaluation of different business structures and how external factors affect businesses.
Structure of the business organisation is important to be developed in order to smoothly
run the multiple activities and task of the business in context to product production and
marketing. There is the brief explanation of different business structure given below in context
to the Diageo plc.
Different business structure
Functional structure- This is type of organisation structure which involves the
grouping of the similar activities and specialized skill staff into the different department of
company. Such as the grouping of operational functions one group, Human resource's
management task into other group, marketing activities into one group and financial
management activities into other group. Along with the grouping of employees to those

department on the basis of their skills to manage the each and every function. So this structuring
of organisation is done on the basis of functions (Kahal, 2017).
Divisional structure- This is the type of organisation structure which develop in context
to the different product lines and market of the product's. Such as the grouping of some selective
functional in to the single group for divisional product's management. For example division of
the organisation functions in context to the production specific product line for the specific
division of customers male and female drinks. Organisation structure is can be further divided in
context to the fulfilment of specific location requirement for selective product line.
Diageo plc is following the functional structure in context to their task performance and
accomplishment such having the strong marketing department, financial department, human
resources management department and operational department from collection and storage of the
product's. This organisation is using both functional and divisional structure in context to the
management of their different beverage product line for different target market. So they are
having the various divisional group of the functions for production of divisional product's and
facilitate the product's services to different target market on the basis of their interest.
Organisation structure is important and it effects the business productivity by providing the well
plained and divided functions of business through which task is can be easily achieve and help to
get success in market with in selected period of time (Cohen, 2017).
PESTEL analysis
Each and every business organisation have to analyse and evaluate external business
environmental factors in context to the improvement and management of organisation functions
according to those changing elements which can impact the organisation in different ways.
PESTEL is the most appropriate tool for the analysis of external factors. Explain below in
context to the selected organisation.
Political- This is one of the external environment factor which can impact the business
through different elements. This majorly involves the changing political agendas and legislation
in context to the organisation related factors or elements. Such as the Brixit is the political
agenda impacting European trading of product's (Rengifurwarin, Akib, and Salam, 2018). Then
employment low many more other rules regulation in context to the Diageo plc is can be
consider as the political factor impacting the function and performance.
Positive- Brixit helps to trade free in the UK without any free competitive exporters.

Negative- Due to the implementation of Brixit organisation have to play lot of tax while trading
in Europe.
Economical- This another external factor impacting the business function and growth.
Along with this economical factor is posing the adverse impact on political and legal factors.
This involves the financial situation of market and customers according to which demand and
supply of the product get impacted. Market economical conditions influence the changes on
trading tax, exchange rate and so on.
Positive- developing needs of the customers due to their financial stability is contributing to the
higher demand and sell.
Negative- Higher tax rate can impact the profit rate of the product's.
Social- This external factor is involving elements related to the customers and their
demand which has to be fulfil by the company. Changing trend's and cultural requirement of the
customers related to the product is consider under this factor. Diageo plc best in context to the
customers satisfaction.
Positive- Developing needs of the people for alcoholic beverage is strength and opportunity for
the organisation.
Negative- Community concerns and people negative views for the alcohol can impact the
product demand.
Technological- Alcohol beverage business is require various technical support for
operational function and management of the product's and technology is the external factor
which impact the productivity and competitiveness of company.
Positive- Such as organisation can become more productive and high performance with in the
aid and implementation of new innovative techniques of payment and product management.
Negative- Higher cost of new technology and need of the technological training for employees
is can be difficult to manage and if it can not get updated into the organisation, then this can
cause competitive disadvantage (Jarwal, 2020LUKÁČKA, 2017).
Environmental- This external factor is related to the ecological and atmospheric
elements such as in context to the selected organisation seasonal changes are very important
because alcoholic drinks produce from selective fruit's and raw material which availability is
depending on season. Some legislation of environment sustainability is also consider under this
factor which has to be follow by the organisation.

Positive- Pollution control legislation is beneficial for select organisation as it helps to manage
the appropriate weather for sufficient cultivation of raw material.
Negative- Resource's sustainability legislation is can be negative for organisation because it
restrict to use some selected resource's at selected amount.
Legal- This is the external factor which impact the functional management of
organisation which has to be done on the basis of rules and regulations. Such as the employees
management should be done on the basis of employment law. Production and storage should be
done on the basis of safety and quality law.
Positive- Quality and safety legislation along with the guidelines aid to manage the product and
get better image.
Negative- Changing consumer and employment cast legislation is can be negative for
organisation profit (Schell, 2020).

CONCLUSION
From the above study it has been concluded that business industry is the largest field
under which various type of organisation existing to provide the specific type of products and
services in exchange of the selected profit margin. Businesses organisation are divided into
various categorise on the basis of their size and management terms such as liability and
organisation running status. That can small, medium, large and sole, cooperative and limited
liability partnership. There are various internal and external environmental factors which
impacting the business functions of company and organisation have to modify their plan on the
basis of changing environment. Major internal factors which can impact the business activities
are organisation structure, culture, operation and financial management. External factors are
political, social, economical, environmental and legal elements, all these element have to be
properly analyse by the organisation in order to plan according to that because these external
factors can not be change by the organisation they just modify their businesses strategies and
plan according to that. Internal factors is manageable by the organisation. In order to effectively
work in the industry it is important to analyse the competitors and their strategies along with the
internal and external environment factors.

REFERENCES
Books and Journals
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Business Organization. Quarterly Journal of Public Organzations Management, 8(2),
pp.39-54.
Turner, R. and Miterev, M., 2019. The organizational design of the project-based
organization. Project Management Journal, 50(4), pp.487-498.
Julien, P.A. ed., 2018. The state of the art in small business and entrepreneurship. Routledge.
Nigmatovich, R.T., 2020. Ways to reduce bank risks in financing micro, small and medium
business and private entrepreneurship by increasing corporate social
responsibility. SAARJ Journal on Banking & Insurance Research, 9(3), pp.69-73.
O’Keeffe, P., Johnson, B. and Daley, K., 2021. Continuing the precedent: Financially
disadvantaging young people in" unprecedented" COVID‐19 times. Australian Journal of
Social Issues.
Kahal, A., 2017. Limited Liability Partnership: An Emerging Business form for
Entrepreneurs. International Journal of Engineering and Management Research
(IJEMR), 7(3), pp.654-657.
Cohen, E., 2017. CSR for HR: A necessary partnership for advancing responsible business
practices. Routledge.
Rengifurwarin, Z.A., Akib, H. and Salam, R., 2018. Snapshot of public service quality in the
center for integrated business service (CIBS), cooperative micro small and medium
enterprises (CMSME), Maluku Province, Indonesia. Journal of Entrepreneurship
Education, 21(3), pp.1-12.
Jarwal, D., 2020. Limited liability partnerships: A business model to achieve entrepreneurial
efficiency. JIMS8M: The Journal of Indian Management & Strategy, 25(3), pp.13-20.
LUKÁČKA, P., 2017. SPECIAL DUTIES OF DIRECTORS IN LIMITED LIABILITY
COMPANIES UNDER THE LAW OF THE SLOVAK REPUBLIC. Ad Alta: Journal of
Interdisciplinary Research, 7(1).
Schell, J.M., 2020. Private equity funds: Business structure and operations. Law Journal Press.
Espinoza, J.M., 2019. Extending PESTEL technique to neutrosophic environment for decisions
making in business management. Infinite Study.