Types of Companies and Organizational Structures | Desklib

Explore the various types of companies and organizational structures. Discover how external factors can affect businesses. | Desklib

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Section 1.......................................................................................................................................1
Section 2.......................................................................................................................................3
Section 3.......................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
A company is a legal entity which is formed a group of different people who are working
together for the purpose of accomplishment of a particular goal or objective in the future
(Bayern,2017). There are different types of companies having different types of legal structures
and rules and regulations to work with. This report is based on Aviva. It is a British
Multinational Insurance Company which has headquarters in London, United Kingdom. In this
assignment, focus will be made on differentiation between different types of companies and their
legal entities. Additionally, describing of internal and external factors which can create impact
on businesses will be made as a part of this assignment.
MAIN BODY
Section 1
Business is described to an organisation engaged in industrial, professional or
commercial activities (Cappel and Huang, 2017). Following are different kinds of companies
along with with working:
Basis Micro business Small business Medium size
business
Large size business
Definition The term micro
business refers
to a company
which employ
fewer than 9
people and have
turnover of more
or less than £
632,000 along
with £ 316,000
or less on its
balance sheet.
A small business
is the one which
have turnover of
around
£6.5million,
balance of £3.26
million on its
balance sheet and
fewer than 50
people working
with it.
Medium size
business is that
organisation have
which have amount
of £18 million in
balance sheet and
income of £ 36
million. Average
employee size of
the company is 250.
Large business is the
company which have
employee size of 500
or more people and
have combined
turnover of nearby £
1.7 trillion.
Characterist Key Micro businesses Characteristics of Key characteristics of
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ics characteristics of
micro businesses
are as follows:
 Fewer
employe
e size.
 More
knowled
ge about
local
residents.
 Innovativ
e.
 Benefits
more to
local
communi
ty.
are characterised
as:
 Small
market
area.
 Smaller
employee
size.
 Limited
area of
fewer
locations.
 Impeccab
le
organisati
on.
medium size
business are as
mentioned:
 Good in
dealing with
difficult
customers.
 Have
competent
employee
team to
work hard.
 Have ability
to fail and
learn from
mistakes.
large businesses:
 Companies
having lower
efficiency
ratio.
 Do not enjoy
economies of
scale.
 More
profitable.
 Gain
recognition in
market easily.
Example Mantons Cards
is an example of
micro business
that work to
offer wide range
of Christmas
cards and quality
gifts such as
Orla Kiely, Yes
Studio, Willow
Tree and many
more.
Davison Canners
is small business
entity that work
to grow and
harvest the very
first crop of Irish
Bramley Apples.
It is food
production
organisation.
Verdant Leisure is
medium size
organisation which
is boutique holiday
park business that
offers self catering
holidays as well as
holiday home
ownership.
Aviva is a large or
multinational
company which have
strong brand image as
well as customer
commitment. It is
largest general insurer
as well as leading life
together with pension
provider.
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Purpose Main purpose of
micro business
that is Mantons
Cards is to bring
benefits to
customers, local
community,
employees and
industry in
which it
operates.
Major purpose of
small business
which is Davison
Canners is to
provide
opportunities to
society, generate
meaningful jobs,
fostering local
economies and
supporting
neighbourhoods.
Purpose of
existence of
medium business
that is Verdant
Leisure is to
promote sustainable
tourism, protecting
natural
environment,
making profits,
improving
infrastructure and
encouraging growth
of jobs.
Purpose of large
business such as
Aviva is to remain
stable with all the
people in all phases of
living and making
most of life. Large
businesses have
purpose of enjoying
more repeatable
business, making
higher sales,
positioning itself as
leading entity and
doing big things.
Section 2
There are different types of organizations. Their different types are explained as follows-
Sole trader business- In a Sole trader business, only one individual is the owner of the
business (Crick, 2019). Therefore in this manner these businesses are aimed at providing the
different types of products and services to the people in a highly effective manner. Therefore in
these organizations there is no sharing of profits. Also the decision-making can be done in a fast
way because there is no need of consulting with others before taking the decisions.
Characteristics of Sole trader business-
 In a sole trader business there is no need of sharing of profits because there is a single
owner of the business and thus the profits are not required to be shared.
 In a sole trader business the decisions can be taken quickly because there is no
requirement of consulting with others before taking these decisions.
Example- An example of Sole Trader Business is a small departmental store operated by
a single person.
3

Partnership- In a Partnership business, there are minimum two individuals who start a
business (Cruz, Broega and Amorim,2017). There is sharing of profits in a particular ratio. For
the purpose of taking decisions, there is a discussion between the partners before they take
important decisions.
Characteristics of Partnership-
 In a Partnership business, there is a particular ratio which is set for sharing of profits
which ensures that all the partners are able to get a share in the overall profits of the firm.
 In a Partnership business, the partners are required to consult each other before they can
take an important decision.
Example- Value Partners is an example of a Partnership Firm. It provides Business
Management Consultant providing its services in London, United Kingdom.
Limited Liability Business- It is also known as Limited Liability Partnership. In this
form of business organization, the partners in the firm have a limited liability towards the
business (Davies. 2020). Therefore, in this type of business the partners cannot be held liable for
the actions or decisions of another partner in the firm.
Characteristics-
 A Limited Liability Business is a separate legal entity. Therefore it has a separate
existence from its owner.
 A Limited Liability Business is an Artificial Legal Person. Therefore it has all the legal
rights of an individual.
Example- Winston & Straw London LLP is a Limited Liability Business. It is a law firm
which provides legal consultancy services to its various customers and clients.
Public Limited Liability Business- It refers to a government company which is formed
to accomplish common goals or objectives (Izdebski and Jacyna, 2018). In this type of
business, the members have a limited liability and can have ownership in the form of shares
which are held by them. It is owned by the government as the majority of shares are held by the
government.
Characteristics-
 In these businesses the members have a limited liability which is limited to the number of
shares which are held by them.
4

 In these businesses the majority of share is held by government. In these companies at
least 51% of share is held by the government.
Example- Bank of England is a an example of Public Limited Liability Business in
which a majority of stake is held by the government.
Cooperatives- Cooperatives refer to an association of people which is formed in order to
accomplish their different types of needs and requirements through a jointly-controlled and
democratically-owned business.
Characteristics-
 These are voluntary organizations in which the membership can be taken up by anyone
who is interested to contribute towards the accomplishment of their task, goals and
objectives.
 There is a democracy which can be established within these organizations. Therefore
every member can express their views
Example- Ekarro Housing Cooperative is an example of a Cooperative which is
established in London, United Kingdom. It deals in fulfilling of house-related requirements of its
customers.
Section 3
An organizational structure refers to a set-up which is required to ensure that the
organizations is able to function in a proper manner (Kliuchnikova and Pobegaylov, 2016). A
good organizational structure can lead to a boost in efficiency and effectiveness. There are
different types of organizational structures. Aviva can adopt any one of them. Some of them are
explained as follows-
 Hierarchical organizational structure- In it, the roles are arranged according to a
hierarchy (Kliuchnikova, and Pobegaylal, 2016). In the context of Aviva, this structure
can be used so that the company's business productivity can increase because of ease of
communication.
 Functional organizational structure- In it, the arrangement of organizations is done on
the basis of various types of functions (Muthyala, 2017). Aviva can make use of this
structure which will help in boosting business productivity as the functions can be
managed effectively.
5

 Horizontal organizational structure- In it, those organizations are benefited which have
few levels. Aviva can make the use of this structure so that it can have few levels in the
organization and it can be managed easily.
 Divisional organizational structure- Here, the various types of divisions in the
organizations have more control over their various resources. Thus, In Aviva the use of
this structure can be made which will enable it to manage operations effectively and
efficiently.
 Matrix organizational structure- Here, a grid-like structure is present within the
organization which ensures that different types of managers are there for various
departments. Aviva can make the use of this structure so that it is able to enhance its level
of productivity as it will help in the right management.
 Team-based organizational structure- In this type of structure, different types of teams
are maintained. This helps in greater cooperation and coordination. Thus if Aviva makes
the use of this structure it can help in getting greater efficiency and effectiveness.
 Network organizational structure- Here, the organization is arranged in the form of a
network. This can help in communication. Therefore, for Aviva this can help a lot in
managing the firm in a better way.
PESTEL analysis-
This analysis is useful for the purpose of conducting of external analysis of various macro
factors. The factors in it are explained as follows-
Political factors- The political situations are quite dynamic in nature and therefore it is
quite important for the organizations that they are able to assess the impact which is created by
them (Septiani, Divia and Adisuwiryo, 2020). Aviva's performance can be affected by them
because the level of political stability affects the businesses.
Economic factors- The economic conditions in a country can create an impact on the
organizations. Thus it is quite crucial for the firms to ensure that they are able to assess them and
plan their strategy accordingly. Aviva's performance can be affected by them because economic
conditions can change very quickly.
Social factors- The social factors of a country can create an impact on the firms and
therefore are required to be considered by the firms. In the organizations it is crucial that they
consider them which will allow them to be able to achieve their goals and objectives. Aviva's
6

performance can be affected by them because there can be a change in social customs and
traditions.
Technological factors- The technological factors have to be considered by the firms
because technology is dynamic in nature and can change quickly. Therefore Aviva's performance
can be affected by them because it will be required to adapt to the new technology effectively
and efficiently.
Environmental factors- The environmental factors should be considered by the
companies because nowadays the customers are nowadays more conscious towards the
environment. Thus, In the context of Aviva it is quite crucial that it has environment-friendly
practices so that it is able to attract the customers. Thus in this way it can affect its performance.
Legal factors- Every country is required to respect the laws of the land in which they
operate. Thus Aviva's performance can be affected by them because it will be required to operate
as per the laws of the country in which it is working.
CONCLUSION
From the above report, it can be concluded that company is a group of people who come
together for accomplishment of a particular objective. There are different types of businesses,
different types of companies are present in various forms. Also, there are various types of
business structures and the external factors can create an impact on the businesses.
7

REFERENCES
Book and journals:
Bayern, S and et.al., 2017. Company law and autonomous systems: a blueprint for lawyers,
entrepreneurs, and regulators.Hastings Sci. & Tech. LJ.9.p. 135.
Cappel, J. J. and Huang, Z., 2017. An analysis of social media presentation at company
websites.Journal of International Business Disciplines. 12(1).
Crick, J. M., 2019. The dark side of coopetition: when collaborating with competitors is harmful
for company performance. Journal of Business & Industrial Marketing.
Cruz, H., Broega, A. C. and Amorim, M. T., 2017. Sustainability in fashion: A study of clean
waste management within a clothing company.
Davies. P.,2020.Introduction to company law. Oxford University Press.
Izdebski, M. and Jacyna, M., 2018. The application of genetic algorithm in the assignment
problems in the transportation company.Journal of KONES.25(4). pp. 133-140.
Kliuchnikova, O .V. and Pobegaylov, O. A., 2016. Rationalization of strategic management
principles as a tool to improve a construction company services.Procedia
Engineering.150. pp. 2168-2172.
Kliuchnikova, O .V. and Pobegaylal, O. A., 2016. Rationalization of strategic management
principles as a tool to improve a construction company services.Procedia
Engineering.150. pp. 2168-2172.
Muthyala, R and et.al ., 2017, November. Data-driven job search engine using skills and
company attribute filters. In 2017 IEEE International Conference on Data Mining
Workshops (ICDMW) (pp. 199-206). IEEE.
Septiani, W., Divia, G .A. and Adisuwiryo, S., 2020, April. Warehouse Layout Designing of
Cable Manufacturing Company using Dedicated Storage and Simulation Promodel. In
IOP Conference Series: Materials Science and Engineering (Vol. 847, No. 1, p.
012054). IOP Publishing.