Different Types of Companies and Their Impact on Business Performance

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