Different Types of Companies and Organizational Structures: A Study on Business in Practice

This study focuses on different types of companies and organizational structures in business. It covers micro, small, medium, and large enterprises, sole traders, partnerships, limited liability businesses, public limited liability businesses, and cooperatives. It also discusses different organizational structures and PESTEL analysis.

Business in practice

Table of Contents
Introduction .........................................................................................................................................3
Section 1- Different types of companies..............................................................................................3
Section 2- Different companies from sole traders to cooperatives.......................................................4
Section 3- Different organizational structures and PESTEL analysis..................................................6
Conclusion ...........................................................................................................................................7
References ...........................................................................................................................................8

Introduction
Every organisation is the structured legal entity in the economy to gain the hue market share
and progress by determining the innovation and ideas. The company is runned with the aim of
society welfare or to earn huge turnover. Various inside and outside factors are determined by the
organisation in which they operates their functions of the environment. The business entity is the
commercial institution to trade the activities of the goods and services for sales. On the base of the
lawful structures the organisation are defined (Carrier, J.G., 2020). In the report the discussion is
based on the various types of companies involving the micro, small, medium and large enterprises.
It also discusses the numerous legal entities of sole trader, partnership, limited company and
cooperative etc. it also states the organisation structure with the PESTEL analysis to know the
business performance.
Section 1- Different types of companies
The organisation is defined as set of groups defining the purpose of the society to achieve
the goals and objectives and its welfare in which its operates its functions. The company is lawful
entity comprising the common purpose by representing the organisation including the various
forms for income generation, financial entity. The organisation are classified in regards to size of
micro, small, medium and large companies.
 Micro enterprise- In such organisation the employees is mainly 0-9 having the low
investing level and job level defining to the small business sector. The yearly turnover is
below 2 million. To run the business activities less technology is required and economic
viability is maintained which creates the value in the economy by offering employment
opportunities and development by reducing the cost of operations.
The characteristics of such enterprise is the owner see himself as the manager because of
having the knowledge regards to business operations and consists the first hand information by
actively participating to take the decision on the business matters. The company starts earning
return on investments with the small gestation period. The enterprise requires more labour with less
investment on capital and involved in daily functioning of the organisation due to resources
availability. Example- Bakeries and Spaza shops (Chang, H.H and et.al., 2019).
 Small enterprises- The turnover of such organisation is approx 10 million as 10-49
employees are engaged in the working. The sales volume is increased in long run and acts as
the independent association which is private owned bodies producing goods and services on
the small scale. To have economy growth in both national and local employment

opportunities are created working in partnership by sole proprietors in respect to size and
structure of income.
The features of this organisation it is sole proprietorship as a single owner having the
controlling power of all the management functions and decisions in taken. Flexibility is rendered to
make the sudden changes by requiring the less technology as depending on the labour. The capital is
provided by the small groups or individual due to limited investment. Example- Restaurants and
hotels (Freeman, R.E and et.al., 2020).
 Medium and large enterprises- In such organisation 50-250 employees are engaged in
working by having the annual turnover of 250 million or more. Through this enterprise
micro and small business organisation gets the support. Th3e growth is increased as
employees works involving voluntary membership and multinational bodies.
The features of such organisation is for investment large number of capital is required in the
technology as it is capital intensive and skilled staff is recruited in the company. The multinational
companies are involved working as concern of government to acquire high income. It also involves
the high business communication with the complex management hierarchy. Example- Dyson
company.
Section 2- Different companies from sole traders to cooperatives
 Sole trader- It is unincorporated business defining to sole proprietorship run and owned by
the individual which do not require any approval from the government nor registered in
companies act. The decision related to business function is taken by the boss and personally
liable for all the liabilities. The single person controls the business ownership which enjoys
all the profits and losses (Godelnik, R. and van der Meer, J., 2019).
The features of this it is not a separate legal entity and continuity of the business is till the owner
personal circumstances. In the business the proprietor has the full control having the unlimited
liability with responsibility of personal debts. With the online or paper application the owner
himself pays the taxes. Examples- medical stores.
 Partnership- It is a firm of two or more persons run to carry the business operations for
profit maximisation by setting the partnership deed. In the deed the partners relation with the
consent of sharing profit and losses is defined as document comprising of the unlimited
liability. The skills and capital is combined in the partnership deed with the specification of
the personal obligation of partners(Hassanien, A. and Dale, C., 2019).
The characteristics of the partnership there is an agreement among the partners to share the losses

and incomes. The proprietor has limited liability as the shares held by them are valued. To
constitute the partnership firm there is requirement of minimum two or more members and
involving transfer of interest between the partners. Example- McDonald and twitter.
 Limited liability business- It has separate lawful entity and legal status by incorporation of
the company. The relation of the shareholder and director is regulated by having the
constitution. The limited liability is classified in the limited by shares or guarantees. In
limited shares the member liability is limited and is bot responsible for pay future amount on
the shares. The unpaid amount is paid by the members on the shares held to him. In the
limited by guarantee guaranteed amount is paid by the members in case of winding up
which is know as guarantors (Hilliard, E. and Brunt, A., 2020).
The features is employees and members have the limited liability in which the proprietor is not
responsible to pay the obligation of the business as it is separate legal entity. In circumstances of the
death and insolvency flexibility and simplification for documentation is provided in regards to
business operations.
 Public limited liability business- The shares are allotted to a public and publicly stocks are
traded listed on London stock exchange. It is a separate legal existence incorporated as
voluntary association of the members having limited liability.
The features of the business are having minimum number of seven members with no limit of
maximum members having separate legal existence. The shares are freely transferable and capital is
collected by selling shares. In respect to business performance and decisions high level of
transparency is displayed (Kerns, C.D., 2019).
 Cooperative- This is a legal body delivering services to the users which is run and owned
by the members comprising one vote in electing board of directors. It is an independent
organisation of the individuals meets voluntarily to meet the requirement of the economic,
social and cultural through jointly owned enterprise. It is a private enterprise organization
having personalized interest rendering supplies, goods and employment.
The characteristics of such organisation is the members have the limited and unlimited liability with
the common interest and abide the society rules. It is voluntary memberships of members having the
purpose of society welfare and includes the economy development, consumer protection. The
members purchase the shares to make the financial contributions (Lüdeke‐Freund, F and et.al.,
2019).

Section 3- Different organizational structures and PESTEL analysis
The organisation structure defines the chain of command by describing the interaction
between the several departments and parts of the company. The structure helps in defining the
responsibility and authority of the project.
 Functional structure- In this structure organizational component are bifurcated and
assigned into the duty. In the functional specialised area small groups are created. The
worker sorted into identical division in the sort of their ability and talent to execute the
organisation functions. In each department there is own process and standards defining the
clear line of authority. The performance is improved to have effective communication and
decision process in quality and uniformity 9Márquez, F.P.G. and Lev, B. eds., 2019).
 Divisional structure- This structure distributes its business organization functions or
activities crosswise various subdivision pertaining particular market, good, or consumer
unit. The functions are categorized on the foundation of divisions of product line which is
appropriate for big and dynamic firms. The needs of the individual group is matched by
producing similar identical products to build the team work leading to efficiency in the
company. The department is grouped on the basis of the product and geographic department.
 Matrix structure- It describes the functional and divisional combination of the structure
offering the flexibility in the business. The working of the employees is on the basis of
functional but the managers of other department is assign project to build team work. In
changing of the organisational needs the structure is adopted. In such the decisions are
decentralised offering the departmental interactions to have huge productivity and
profitability reducing the conflict among the departments by innovation (McGee, D., 2021).
PESTEL analysis
In the business the impact of the macro environment is determined regarding business
operations. It is a concept of the strategic planning used for external analysis in the macro
environmental factors for scanning environment. The Dyson company is taken for analysis.
1. Political factor- The business of Dyson is affected by the political factors in UK. As a local
market political laws is very easy for the Dyson. But in recent times the Dyson supply chain
and sales is affected and high cost is incurred in production. It is essential to maintain the
political stability to run the business operations efficiently in different locations. It also
contains the factors of tax policy, trade regulations and foreign trade policies.
 Economic Factors- In the market the sales of the Dyson can be increase if the growth rate is
high in certain economy. But due to the high inflation power t5he buying power is of the
customers is reduced declining the sales of the Dyson company. In the context numerous

factors affects the company such as economic growth, employment rate, inflation and many
more. The business operations is improved by doing modification in the exchange rate and
pricing strategy.
 Social Factors- With the changing of the demands of the customers it is essential for the
company to fulfil the demands in terms of quality and customer service. The Dyson
company caters the needs of the customers by providing innovative technologies. The
Dyson sales can be reduced in the international market it the consumers are not aware
regarding the technology adopted by the company. The factors affecting the company are
income, education, cross culture activities etc.
 Technological factor- To compete with the competitors the Dyson company adopts the
technological trends with innovative technology to leads the growth and sales. The brand
reputation can be enhanced of the Dyson if continuously invests in the research and
development activities and technology which eventually increases the sales.
 Environmental Factors- The Dyson makes investment in the ecological investments of the
projects. The sales is increased by providing the additional information regarding the
products. The factors includes the climate change, sustainability rate to deliver clean
atmosphere by adopting the marketing strategy (Shove, E and et.al., 2020).
 Legal factors- The working of the Dyson is internationally which requires to comply with
the rules and regulations to sell the products legally in the market. In legal factors it contains
the legal considerations, lawful activities, legal policies and regulations. The factors which
affect the Dyson company is employment laws, safety laws, patents etc. with respect to
these laws it helps in building brand image and increase the sales for the growth.
Conclusion
It has been concluded from the above study different types of the organization is divided into
different structures depending on the size to have the efficiency and profitability. To run the
business smoothly external factors are considered of the business operations. The organisations is
run for the society welfare and leading to income generation. In the company various organisation
structures are applied to gain the business growth.

References
Books and Journals
Carrier, J.G., 2020. Abstraction in Western economic practice (pp. 25-47). Routledge.
Chang, H.H and et.al., 2019. The effects of business systems leveraging on supply chain
performance: Process innovation and uncertainty as moderators. Information &
Management, 56(6), p.103140.
Freeman, R.E and et.al., 2020. BUSINESS AND ETHICS (pp. 129-140). Columbia University Press.
Godelnik, R. and van der Meer, J., 2019. Sustainable Business Models in an Entrepreneurial
Environment. In Sustainable Business Models (pp. 239-276). Palgrave Macmillan, Cham.
Hassanien, A. and Dale, C., 2019. Hospitality business development. Routledge.
Hilliard, E. and Brunt, A., 2020. Impact of an infant friendly business designation. Health
promotion practice, 21(4), pp.642-653.
Kerns, C.D., 2019. Managing leader learning preferences at work: A practice-oriented
approach. Journal of Leadership, Accountability and Ethics, 16(5), pp.10-27.
Lüdeke‐Freund, F and et.al., 2019. A review and typology of circular economy business model
patterns. Journal of Industrial Ecology, 23(1), pp.36-61.
Márquez, F.P.G. and Lev, B. eds., 2019. Data Science and Digital Business. Springer.
McGee, D., 2021. Parliamentary Practice in New Zealand. Oratia Media Ltd.
Shove, E and et.al., 2020. Time, consumption and everyday life: practice, materiality and culture.
Routledge.