Different Types of Companies and Their Impact on Business Performance

This article discusses the different types of companies and their impact on business performance. It explores the various organizational structures and how they affect productivity and profitability. The article also highlights the importance of external factors, such as political, economic, social, technological, environmental, and legal factors, in influencing business performance. Additionally, it emphasizes the use of PESTLE analysis in understanding the macro environment and making informed business decisions.

Business in Practice

Contents
Section 1..........................................................................................................................................4
Different types of companies & how they work..........................................................................4
Section 2..........................................................................................................................................5
Different companies operate at the environment.........................................................................5
Section 3..........................................................................................................................................6
Different business structures & external factors affecting business................................................6
3.1 identification of different organizational structures and how does such structure impact on
productivity and profitability.......................................................................................................6
3.2 How various external factors effect on performance of a business – PESTLE Analysis......7
Conclusion......................................................................................................................................9
Reference......................................................................................................................................10

Introduction
There are different organization that execute different activities and are of various sizes
and processes. The primary purpose is to increases financial position as well as performance of
business organization at market place. In the current situation, it has been analyzed that there are
different forms related to business organization which will be helpful in increasing success in
future period of time. All such kind of organization have various objective and targets that help
in making effective utilization of process as well as hierarchical structure. In assistance of this,
there is a proper discussion regarding different structure of organization and how external and
internal factor imposes direct impact on organization. Herein the PESTEL analysis is organized
for understanding the macro environmental element which imposes direct impact on
performance of organization (Amin-Chaudhry, 2016).
Section 1
Different types of companies & how they work
In current environment of organization, there are various forms of organization that
possess objective and goals and achieve it in timely manner. The common feature and
characteristic in this kind of organization is to achieve more and more profit that help in
increasing level of performance. There are various kinds of organization which is going to be
mentioned below:
Micro & small organization these are determined as a private organization that are
financed by family, friends and from those person who have no record regarding payment of loan
and also there is no guarantee related to repayment. Therefore, the main aim of micro and small
companies is to satisfy personal wants and increasing living standard of individual person in an
appropriate manner. For example, there are various example related to micro as well as small
organizations such as footwear generation as well as horticulture and so on. The mean aim of
micro organization is not only fulfilling personal need but also their focus is on increasing value
or worth related to nearby economy. Apart from this, they provide their support in purchasing

power, offer job opportunity, increase salary and many more. Therefore, a small finance
organisation helps micro companies by offering restricted finance. The individual person starts
their own company in order to increase profit margin of organization during particular phase of
time period. There are different small banks offer loan to micro as well as small organization that
help in executing various activity in proper way. For example, there are around 1 to 50
employees who perform their work in such kind of organization (Baumann-Pauly and Nolan,
2016).
Medium size organization these are those kind of organization which have assets above
small business organization and in these kinds of companies, the subordinate is among 50 to 250.
It has been assessed that's the income level of medium size organization is around £36m.There
are high level of medium organization that provide contribution in respect of growth and
improvement of economy. The primary purpose of such kind of organizations is to increase
profit margin and also expand operation of organization in proper manner. Ellas’s kitchen is
determined as a good example of this kind of organization which is located in UK.
Large size organization this kind of organization have wider scope and high capital
with high number of subordinate in order to implement or execute different kind of activity at
international level. In assistance of this, they have above 250 employees and their primary
purpose is to satisfy needs of its user and increase brand image or reputation and also strengthen
the position at market place. It is considered s such types of organization which have a turnover
of around 1.5 billion Euros during particular phase of time period. Therefore, the example of
large organization is Tesco, General Motors as well as so on (Caldera, Desha and Dawes, 2018).
Section 2
Different companies operate at the environment
In addition to small, medium as well as large organization there is also other form of
organization. Therefore, it is considered as a kind of organization who performs their work and
executes different activity in an appropriate manner. The benefits of this kind organization are
going to be mentioned below:
Sole trader organization it is determined as a unincorporated entity that is owned by a
single individual person during particular phase of time period. In assistance of this, this kind of

organization need low amount of fund and legal protection for owner of organization. They also
possess tax advantages as revenue earned is determined as personal revenue of owner during
particular phase of time period.
Partnership is determined as an organization in which more than two individual people
that performs their work together in order to earn profit during particular phase of time period. In
assistance of this, such kind of partner shares their profit and loss in equal manner according to
partnership deed. There is an advantages and benefit related to tax in partnership because their
income is determined as an income of owner when they paid tax. There are various kind of
partnership such as limited partnership, limited liability partnership and many more. In reference
of other organization, partnership is determined as a much more flexible but possesses high level
of risk.
Limited liability business it is determined as a most appropriate form of organization
that is determined as a combination of both operations as well as partnership. In assistance of
this, their focus is on selecting different treatment related to tax. Furthermore, the benefit or
advantage related to limited liability by using limited status is its legal entity. Public limited
liability, business public limited liability organization provide share to individual person who
have restricted liability. The main benefit of improving such kind of organization is it provides
opportunity to individual person to increase their capital by issue public shares (Johnson and
Garvin, 2017).
Cooperative it is determined as a separate legal organization which is given by
shareholders. Another instance of this, it is considered as a kind of organization that is hard to
incorporate. In context of another kind of organization, there are various kinds of cooperative
such as a nonprofit corporation, shareholder corporation as well as so on
Section 3
Different business structures &external factors affecting business
3.1 identification of different organizational structures and how does such structure impact on
productivity and profitability
Organization structure is considered as a method in which business organization executes
activity and function by determining individual person who perform their work in organization.

In assistance of this, it involves how business organization focuses on task allotment,
administration, and coordination for achieving target and objective during particular phase of
time period. It has been analyzed that the structure of organization is handled by higher authority
during particular phase of time period. The main purpose of maintaining structure of
organization is helpful in achieving objective in a timely manner It is considered as a
organization who focuses on making utilization of structure of organization as per their need.
There are different kinds of structure of organization that is going to be mentioned below:
Functional organization structure in this kind of structure of organization different
department is divided according to ability and their perspective during particular phase of time
period. In assistance of this, the task on work is allotted to subordinate as per their skill and level
of competence in order to perform different activity and function in an appropriate manner that
imposes positive influence on performance level of organization. The task which is assigned or
allotted by higher authority must be achieved in order to implement different activity and
functions during particular phase of time period. In assistance of this, the employee perform their
work with whole potential as the task or work allotted to them is as per interest that assist
organization in achieving objective in pre decided period of time (Kotusev, 2018).
Division organization structure it is the structure of organization in which each function
and activities included resources and also provide support to them. For instance, there are various
departments such as marketing department, IT department as well as financial department. In
assistance of this, by adopting such kind of structure of organization helps Company in allotting
responsibility easily that helps in achieving objective during particular phase of time period
3.2 How various external factors effect on performance of a business – PESTLE Analysis
PESTEL analysis is determined as a framework or tool which is used by organization for
assessing the impact of environment on performance of organization. In assistance of this, it also
helps in improving appropriate strategy that helps in dealing with difficult environment. It
includes different external element that imposes direct impact on productivity of organization. It
is important for company to organize external analysis by using PESTEL framework that helps
in gaining more and more knowledge regarding threat of organization. There are various factor
of PESTEL analysis is going to be mentioned below:

Political factor it is determined as government interference in the operation and
functions of organization. It includes different kind of component like political stability,
exchange rate and many more. In assistance of this, it has been assessed that political elements
involves component which is related to law within business organization. The organization
assess component that helps in achieving insight regarding government how it imposes direct
effect on performance of organization. It is important for company to determine all political
elements that helps in taking appropriate decisions like determining operations and activity of
organization advertisement and so on.
Economic factor this factor is very important for business organization that imposes
direct impact on business entity. It determines the factors such as a trade rate, loan, financial
development and many more. It is important for organization to use all such kind of elements in
order to gain more and more profit in future period of time.
Social factor it is important for organization to determine all social elements before
providing products and services in market. In assistance of this, it includes factors like value,
cultural norms and opinion of individual person. It is important for organization to determine age
perspective in which the company focuses on fulfilling need of its customers which imposes
favorable impact on brand image as well as reputation of company in future period of time.
Technological factor technology is very important which impose direct impact on whole
choice of user. In present time, customer focuses on purchasing those kinds of goods and
services which is determined as innovative in marketplace. Therefore, it is significant for
company to bring innovative ideas that help in retaining user for a longer period of time.
Furthermore, most of the organization emphasized on bringing innovative ideas that help in
increasing or enhancing sales and profit margin of business organization (Lüdeke-Freund and
Dembek, 2017).
Environmental factor these are those kind of factor which imposes direct effect on the
efficiency of organization. It is important for company to make ensure that the focuses is on
providing eco- friendly products and services to its user in order to increase their brand image in
front of customer it Marketplace. Furthermore, most of the organization emphasis on reducing
use of carbon footprint that helps in protecting atmosphere. It also helps company in increasing
brand image which imposes a direct impact on performance level of organization.

Legal factor it involves different laws like consumer law as well as security law that is
implemented by government and followed by organization for executing different kind of
activity during particular phase of time period. It is significant for organization to emphasize on
such kind of law that help in make sure regarding a legitimate procedure during particular phase
of time period (Vom Brocke, and Mendling, 2018).
Conclusion
On the basis of above given report, it has been assessed that there are different
organization that execute different activities and are of various sizes and processes. The primary
purpose is to increases financial position as well as performance of business organization at
market place. In the current situation, it has been analyzed that there are different forms related
to business organization which will be helpful in increasing success in future period of time. All
such kind of organization have various objective and targets that help in making effective
utilization of process as well as hierarchical structure. In assistance of this, there is a proper
discussion regarding different structure of organization and how external and internal factor
imposes direct impact on organization.
Reference
Books and journals
Amin-Chaudhry, A., 2016. Corporate social responsibility–from a mere concept to an expected
business practice. Social Responsibility Journal.
Baumann-Pauly, D. and Nolan, J., 2016. Business and human rights: From principles to
practice. Routledge.
Caldera, H.T.S., Desha, C. and Dawes, L., 2018. Exploring the characteristics of sustainable
business practice in small and medium-sized enterprises: Experiences from the Australian
manufacturing industry. Journal of Cleaner Production, 177, pp.338-349.
Johnson, J.E. and Garvin, W.S., 2017. Advanced practice nurses: Developing a business plan for
an independent ambulatory clinical practice. Nursing Economics, 35(3), p.126.
Kotusev, S., 2018. The practice of enterprise architecture: A modern approach to business and
IT alignment. Sk Publishing.
Lüdeke-Freund, F. and Dembek, K., 2017. Sustainable business model research and practice:
Emerging field or passing fancy?. Journal of Cleaner Production, 168, pp.1668-1678.

Vom Brocke, J. and Mendling, J., 2018. Business process management cases. Digital innovation
and business transformation in practice.