Different Companies, Business Types, and Organization Structures: A Study

This report evaluates the different types of companies, business structures, and organization structures. It also discusses the impact of external factors on businesses through PESTLE analysis. The report concludes that effective use of employees and adaptation to external factors are crucial for business success.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Section 1...........................................................................................................................................3
Different companies....................................................................................................................3
Section 2...........................................................................................................................................5
Different type of business...........................................................................................................5
Section 3............................................................................................................................8
Different organization structures.................................................................................................8
PESTLE analysis.........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business in practise are the activities which are used to reach the objectives of the
business (Galea, ed., 2017). This report will evaluate the different type of companies and their
method of work with respective examples. More over different business structure of the business
are used by different companies and their effect the productivity are determined. Pestle analysis
is being used to know the external factor which are affecting business.
Section 1
Different companies
Micro business Small business Medium business Large business
Definition The micro business
are the new type of
entrepreneurial
trend in the world
(La Rocca and
Snehota, 2017).
This type of
business uses to
start their business
with minimal
member that are
between 1 and 5
employees and
invest $50000 to
start the
organization.
These are
corporation,
partnership or its
can be sole
proprietorship
which are less
number of
employees and less
annual turnover as
well. The small
business are having
functions such as
convenience store,
grocery stores,
bakery and many
more (Meyer and
Meyer, 2017).
The medium size
business usually
have limited number
of people and these
are also had their
presence in
international market.
These are having
investment to use in
the company and
having less than 250
employees.
This business are
large and having
lots of employees
who are working
for achievement of
organization goal.
Its annual turnover
is about 1.5 billion
euros and also have
a total in balance
sheet more than 2
billion euros
(Brennan, Canning
and McDowell,
2020).
Ownershi The micro business The small business The medium Large organization

p are usually started
up companies on a
small scale so
owned by a
particular person.
are having one
person managing
all the activities in
this the ownership
also known as sole
proprietor.
business need lots of
investment and this
can not be available
by a single owner so
this usually have
more than 1 owner
whether it can be
partnership
organization or joint
venture.
are having lots of
stakeholders and
creditors so the
ownership is
divided into many
people so the
decision are also
taken keeping in
mind suggestion of
all.
Area of
operation
This is operating
on a small scale in
their nearby areas
people are being
offered their
products and
services.
Small business
usually serve the
area and the
particular region as
they are having
fewer people who
are working for the
company.
Medium business
are having an
effective workforce
who are working on
a large area that can
be a country or
different branch in
different regions.
Large business are
basically work
multinationally and
this business uses
to operate globally.
Risk The micro business
are having the
liability and
financial risk in the
market.
Small business are
having high
competition in the
market with great
risk of competition.
The medium
business are having
different partners
and their also have
to face competition
because of large
number of
competitors.
In the current
market trends
usually change
frequently so the
large business have
to face the risk of
market fluctuations.
Labour
intensive
They are having
less amount of
technology used in
this and their area
The technology is
being used in very
limited amount
because the
Medium business
are uses the
technology to
perform the harder
Large business are
used to deal with
the preference of
international

of operation is also
less than the labour
are being used
because of less
investment.
operation is
comparatively
smaller so the
things are
effectively
managed with the
employees of the
company.
task related to the
accuracy so that
there is no mistake
and also use
different technology
to make their
product more
effective.
customers, and they
need to change as
per the
environment, so
they are make use
of technologies at
every point and
phase.
Example Boss brewing is a
micro business
operate in
Swansea, UK.
Cafe-cod coffee co.
operate in coffee
business from
2011.
Johan good shipping
is one of the medium
business uses to
ship the goods.
Sainsbury is an
large business
operating in the
retailing industries
have large number
of employees with
international
presence.
Section 2
Different type of business
Sole trader
business
Partnership Limited
liability
business
Public limited
liability
business
Cooperative

Definit
ion
This is a type
of business in
which the all
the activities
and decision
are take and
managed by a
single owner
(Boons and
Laasch, 2019).
Like wish
other business
the sole trader
are not having
a separate
legal entity
then business.
this is basically
an agreed
business in
which minimum
two or more
then two parties
to manage as
well as operate
the business and
with this they
will also share
the liability and
profit.
This type of
business
structure are
made of the
private
organization in
which different
partners are
involved in the
limited to their
liability (Kunc
and O’brien,
2019). Every
partner in this
partnership are
only liable to
liability which
limited to the
capital they
invested in the
business.
The PLC or
public limited
company in
which the
shares are
offered to the
public. The
buyer is having
the limited
number of
liability, and
they are not
liable for any
kind of loss
which is more
than the share
purchase
amount (Iovino
and Migliaccio,
2019).
Cooperative
businesses are
autonomous
association of
people which are
using the
services, they are
also sharing the
decision and
ownership with
all the members
who are owning
the shares.
Numbe
r of
owners
Single person
is owning this
type of
business.
At least two or
more then two
people are
involved in this
business.
There are
different
partners with
limited liability.
Two partners
are minimum
need to form
public limited
business and
after that there
is no limit of
the partners
which can be
involved in any
Their minimum
10 members are
needed in the
cooperative
society.

business.
Agree
ment
There is no
agreement
needed in this
because single
person is
involved in
this business.
The partnership
need two people
who are agreed
to perform the
business
activities and
have decided
ownership with
agreement.
Legally there is
no necessity to
have an
agreement in the
LLP in the
limited liability
partnership is
only a
partnership
agreement
nothing much.
Here there are
specific
requirements
there are two
directors and
the secretary to
form the
company.
There is need of
particular
agreement to
perform the joint
actions as well as
collaboration in
the federal
reward agency
(Huang, 2020).
Sharin
g of
profit
Owner himself
take the profit
after paying
all the taxes.
The partnership
uses to share the
profit as per the
pre-decided
profit sharing
ratios.
Limited liability
partnership have
the partner have
to distribute the
profit according
to the partners
respective
percentage of
profit.
The profit
shared as per
the dividends
based on the
percentage of
shares they
have in the
partnership
company.
They are having
profit as per the
shares they are
owing in the
company.
Examp
les
Bedwardine
funeral
services is the
funeral
services
provider
which is
located in the
Worcester. In
Pret a manager
is a sandwich
franchise which
is based on UK
and perform its
activities with
the suggestion
of its partners
and divide the
Addleshaw
goddard is
international law
firm in London,
UK structured in
limited liability
partnership. This
company is
famous for
Barclay plc is a
universal bank
having its
headquarter
London, UK.
This public
limited
partnership
having two
Ebay is a
cooperative uses
to facilitate
consumer to its
consumer as well
as business to
customers selling
through its
websites. They

this they are
providing pre-
planned
services of
funerals.
profit and loss
in agreed form.
quality of advice
and the
imagination they
bring and
influence they
have. This is an
international law
firm with
breadth of
services
(Thorlakson, de
Zegher and
Lambin, 2018).
subdivision
Barclays
international
and with this
another is to
support
Barclays
execution
services.
use to deal in
different
segments of
products in the
international
market.
Section 3
Different organization structures
The organizational structure is an outline or framework of all the task and activities to achieve
the goal of the organization. The activities defined in this have respective rules, responsibility
and role. Their different type of organization structure which are as follows:
Functional organizational structure: This is a type of structure to organized its workers in
which employees with smilier skills and knowledge (Phan, 2021). This is a vertical type of
structure in which very department having the roles its president to finance and sales department,
to customers services, to assignment to employees for product as well as services. This is
effective structure for the organization with different benefits as when the people with similar
experience and skill will place together, so they will produce more efficiently and more quality
production will be done with this. The people have same task so this will also take less time and
employees being more expert in that field when they will perform the standardized task.
Divisional structure: This is the structure in which the different group are divided into
departments this type of structure is made used large organization. There are also use of

functional models in each of its division when the departments become specialized the managers
and leaders can easily track the commodities and task that companies are developing. All the
department are being performing different task to achieve the common goal in this the manager
can effectively arrange the required resources for the respective department. The work of
manager can more effective and easy to monitor the performance in easy way (Ho and et. al.,
2021).
Matrix structure: This is a kind of framework in which there are more than one way to report
managers so when different people can reach the higher authority then monotony get break
down. This is a flexible structure for the organization where an individual is not connected to the
higher authority. This is comparatively more complex yet it will help in achieve the goal more
effectively. As different department are work collectively which will assist in resolving the issue
more efficiently.
As the different structure of organization make use of the workforce in different way so
this is impacting the employees of the company (Bryan-Kjær, 2017). The employee's
performance get influenced by the type of structure their organization has and when the
employees of organization are not effectively utilized then they are less in productivity.
PESTLE analysis
The business get influence from internal as well as external factors so the pestle analysis will
helpful to know the external factor and their impact on the industry and the business (Casañ,
Alier and Llorens, 2021).
Political factors: when the political parties in the market of industry get change or modify their
policies for the particular industry then accordingly business have to change their process. This
includes tax policies, fiscal policies made by government for the company. Whenever, there is
change in this external factor then businesses get influenced.
Economical factor: The industry of the business get influenced accordingly when there is
change in the economy performance in which the business lay. As accordingly to this the
business have to change their pricing of their products and services. To deal with the situation
such as inflation, regression etc.

Social factor: There are different culture and people choice in the market, and they are
continuously changing. When the trend and mindset of people in the market is being changed
then industry also have to change so the companies in the market gets influenced.
Technology factor: There is need of technology for the business to get connected to the people
and attract the customer because buyer need to make use of upgraded technologies. The business
have get influence when the new technology introduce in the market (Lazoriková, 2021).
Legal factor: As the laws develop by government change according to time so the business get
influenced when the laws regarding the practises of business get changed.
Environment factor: These factor is basically connect with the natural environment factor as
when the environment condition changes with time then business get influenced.
CONCLUSION
This report concludes that the different companies are having different level of operation
and work that are performed to achieve their common goal. The different companies are also
own and control by different number of people with different type of liability limitations. The
organization structure of the company uses to influence the productivity of the company as
effective use of employees will assist to generate more profit. The external environment uses to
influence in different way as per the different factor of pestle analysis.

REFERENCES
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processes: Opportunities and limitations. Journal of the Operational Research
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Iovino, F. and Migliaccio, G., 2019. Energy companies and sizes: An opportunity? Some
empirical evidences. Energy Policy. 128. pp.431-439.
Huang, Y., 2020. The Relationship between the Impact that Customer Satisfaction has on
Service Companies' and Product Companies' Revenue. Frontiers in Economics and
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sustainability through global supply chains. Proceedings of the National Academy of
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in the organisational structure. International Journal of Corporate Strategy and Social
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