The Structure of Business

This report examines the structure of a new online clothing business, 'Look Good', covering a PESTLE analysis, considerations for starting the business, factors impacting success, legal frameworks, funding options, and the application of HR policies in the modern workplace. It provides a comprehensive overview of the key elements involved in establishing and running a successful online business.

The Structure of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Question 1........................................................................................................................................1
PESTLE analysis of the online business.....................................................................................1
Consideration while starting an online business.........................................................................2
Factors impacting success of the new business...........................................................................3
Question 2........................................................................................................................................3
Strength and weaknesses of the legal frameworks which are to be considered while starting
the online business......................................................................................................................3
Ways of funding the business.....................................................................................................4
Question 3........................................................................................................................................5
Three sectors within the economy of UK where the online business can operate......................5
Different types of HR policies and their importance in modern workplace...............................6
Reflection....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The business structure may be defined as the whole structure of the business starting
since its incorporation till its winding up. The business structure also defines the legal status of
the organization. The different types of business structure are like partnership, sole
proprietorship, companies, joint venture and many other forms. The present study is based on the
new online business of clothing named “Look Good”. The report will outline the PESTLE
analysis for the new online business (Blake, 2016). Furthermore, it will discuss some
considerations which are to be taken into account while starting the business along with the
different factors which affects the success of the business. Next it will discuss about some
weaknesses and the strengths of the different types of legal framework which needs to be
considered at time of starting up a new business. Also, it will discuss about the different ways or
sources through which the business can raise funds to develop its business. In the end it will
discuss some sectors of the UK economy along with the application of the different types of HR
policies and their importance and necessity at the workplace.
Question 1
PESTLE analysis of the online business
Every business needs to be run in the macro or the external environment which keeps on
changing from time- to- time. The business in order to be successful needs to timely study and
analyze all the macro factors and needs to make necessary changes in order to need the business
profitable. For analyzing the macro environment the business needs to perform the PESTLE
analysis which is discussed in the following points-
Political- these factors includes a variety of factors like political influence on the external
business, the change in the government body, and many other factors. Before starting the online
business the businessman must consider and study the whole political environment of that area
where the business is going to be set up. This is done to study that what are the support and
threats which are provided by the government for the e- commerce business.
Economical- These factors involves different factors like interest rate, foreign exchange
rate, inflation rate, economic cycles and many other factors (Lawton, 2017). For managing the
business, Look Good can study in advance the preferences of the consumer, their spending
power or the purchasing power, stability of country's economic conditions and business cycles
such as inflation, deflation, recession or boom period.
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Social- These type of factors help the company in knowing and analyzing the impact of
the beliefs, values, attitude of the society and the culture which has over the working of the
business. Study of this factor is very necessary because there can be a difference between what
the company is producing and what is expected by the society. If the difference is large then it
might be possible that the business may fail.
Technological- this is the major factor which needs to be analyzed because the
technology keeps on changing rapidly. This can either be a threat or an opportunity like for
example rise in usage of mobile is an opportunity for this online business. This can be an
opportunity because if people will use more mobile than they will do more shopping. On the
contrary there can also be threat of rise in the competition because of technological innovation.
Legal- these factors includes the different legal system and rules and regulations which
are to be followed by the company in order to start the online business (Lyubareva, Benghozi
and Fidele, 2014). Before entering into the business must carefully analyze and evaluate the legal
structure before entering into that market.
Environmental- with the help of this factor the company tries to analyze the
environmental factors which may be affected due to the operations or the working of the
company. These factors may include changes in the climatic conditions, changes in weather,
laws regulating the environment and many other factors.
Consideration while starting an online business
It is very necessary for the new business venture to keep in consideration all the factors
whether internal or the external factors which impacts and influences the efficiency and the
productivity of the business. Some the factors which are essentially important to be considered
by the business are as follows-
Identify the client- This is the major consideration before starting up the new business
because the whole business is dependent on the type of clientele only. Suppose the target
consumer is the people between 20- 40 ans the business is designing clothes keeping in mind the
above 60 group of people. Then the business will be a serious fail and disaster.
Selection of correct medium to advertise- this is also an important factor which needs to
be considered very essentially. This is because of the reason that if the products will not be
advertised properly then the business will face many difficulties in running the business
successfully.
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Factors impacting success of the new business
For the business to be successful it needs to give importance to many factors which
affects the business very much. These factors are given weightage in order to increase the
profitability and the productivity of the business. Some of these factors are as follows-
Recruiting the right talent- this is the major and the most essential factor which impacts
the success fullness of the business. This is due to the reason that if the business has good and
efficient workforce then they will manage the business and its working very efficiently (Schell,
2018). On the other hand if the employees are not good then it will lead to mismanagement in the
organization.
Setting high standards- this is yet another factor which impacts the success. This is
because of the reason that if the company sets high standards then the employees will work hard
to achieve those standard.
Question 2
Strength and weaknesses of the legal frameworks which are to be considered while starting the
online business
There are many laws and rules and regulations which are to be followed by the online
business to run successfully and profitably. For this the business Look Good has to follow many
legal frameworks. Some of these are as follows-
Legal frame work Strengths Weaknesses
Consumer Protection
(Distance Selling)
Regulations, 2000- This is the
regulation which ensures the
safety and protection of rights
of the consumers. Under this
framework the online business
needs to show precise and
clear information about all the
products and the services and
the cost of every good or the
With the enforcement of this
law the consumer can cancel
its online order within 7 days
of order have been placed.
The weakness is that the law
does not cover contract from
sale, financial services,
auctions and many more other
options.
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service.
Data Protection Act, 1998-
this act is made with the
intention of protecting the
personal information with the
company itself and the
business needs to maintain the
privacy of the clients'
information. For ensuring the
privacy of the data the
business needs to get
registered with the Information
Commissioner Officer (ICO).
The major strength of this act
is that the storage of data
relating to the client helps the
company in knowing more
about the consumers (Martins,
Rindova and Greenbaum,
2015).
As data needs to be stored very
accurately so there are many
strict and hard laws to be
followed by the companies and
the businesses.
Ways of funding the business
Funding is very necessary for the fluent and successful working of the business. For
funding either the business owner can have its own funds or can go for borrowed funds. The
different types of funds are discussed in the below table-
Fund Strength Weaknesses
Bank loan- this is the easiest
and the simplest form of
raising funds from outside at
very low rate of interest as
compared to other source. It
involves raising money from
the bank for a specified time
period against some collateral
and interest charges.
This is the easiest and the
simplest type of borrowing
money.
The interest paid on the loan
taken from the bank is a tax
deductible expenditure.
There is the requirement of the
collateral at the time of taking
the loan.
Also, some banks charges loan
pre payment penalty which is
applicable when the borrower
repays the loan before the
maturity.
Equity share- this is the main
source of finance within which
The major strength of this type
of funding is that this is the
The major weakness of this
source is that the shareholders
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the shares of the company are
issued to public in general and
money is raised from that
public in general.
permanent source of capital
and is released only at time of
winding up.
gets dividend only when there
is profit left after giving to the
debenture holder and the
preference shareholders.
Question 3
Three sectors within the economy of UK where the online business can operate
There are many sectors in the economy where any kind of business can be started and
carried on by the person either in form of partnership, sole proprietor. The industry is based into
different sectors which are grouped under the same group on the basis of some common
characteristics or traits. The UK is the largest and the influential in the whole world's economy.
Today, the UK is the 6 Th largest economy in the world in 2012 according to GDP (current
prices) and the 8 Th largest in the world according to GDP (Halling, Yu and Zechner, 2016).
There are majorly three types of the industries or the sectors which are discussed as below-
Primary sector- this is the sector which includes all the activities and the process which
consist of exploiting those activities which includes the use of the natural resources such as
mining, forestry, fishing and many more other activities. The agriculture, hunting, forestry and
agriculture fishing grew slower than GDP between 1964 and 1979. After, 1979 this sector’s
output was more influenced by the agricultural policy of the European Union than by the UK
business cycle. So agricultural output grew strongly through the recession of the early 1980s and,
just as perversely, fell during the upswing of 1994 and 1995. This industry or the sector is known
as the extractive industry because this sector includes all the work relating to the extracting or
producing the raw materials.
Secondary sector- these are that part of economy which is composed of manufacturing
industries which take their raw material from the primary sector. For example in the
manufacturing of the car company it takes steel as their raw material from the mining company
which is part of the primary sector. In UK the secondary sector is majorly divided into two parts
that is heavy industry and the light industry (Doris, Boyd and Zhu, International Business
Machines Corp, 2014). In the growth of the UK economy this is the substantial part and creates
major value in the growth. The work of this sector is majorly to transform the raw materials
taken from the primary sector into the final goods and the services. For example the online
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business of Flipkart, where it produces products in its own name and sells those products on its
own site.
Tertiary sector- this is a type of sector which includes the service industry of the country.
The companies coming under the tertiary sector does not provide for the products rather they
provide services to the people of the economy and also to the other businesses of different
sectors (Tian, Han and Zhang, 2015). The example for this type of sector are like insurance,
banking, transportation, police, legal services, education, communication, advertising and many
other facilities. These sector deals with the intangible services which means that the services
cannot be seen and touched but these can be experienced and felt. This sector is very necessary
for both the primary and the secondary sector. For example the online shopping sites like
Amazon, Shoppers Clue, Myntra and similar companies they market the products produced by
other companies. These helps the companies in marketing and selling of their products through
these online shopping sites and applications of mobile.
Our new business that is Look Good is a part of tertiary sector of United Kingdom' s
economy. This company provides a shopping platform for the consumers where it provides
clothes and related article of all the leading brands and companies to a wide range of consumers
at a same time. The consumers can access the application from anywhere and at any time just
from a click of phone.
Different types of HR policies and their importance in modern workplace
The human resource policies are referred to as the different types of guidelines and the
policies which the organization needs to adopt in order to maintain the human resource or the
man power at the workplace or the organization. All the policies are related to the welfare of the
human resource. These policies are formulated with intention of encouraging the employees to
perform better and to increase their productivity and efficiency. There are many types of HR
policies made within the organization in order to increase the efficiency of the organization.
Some HR policies are discussed in the following points-
Health and safety policies- these are the major policy of the HRM because if the
employees are safe and secure in the working environment so that they work to their fullest
capacity and potential. If the employees will be provided with the healthy and safe environment
then they will be satisfied with the environment and will work more productively and efficiently
(Kono, 2016). With the help of a healthy and a safe environment it will ensure that there are no
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injuries or problem of ill health which may be caused by the unhealthy or unhygienic
environment. Also, the business must provide time- to- time training related to maintenance of
the health and safety at the workplace. Under this the company also needs to maintain a tidy,
clean and hygiene business environment (Meyr, Wagner and Rohde, 2015).
Compensation and benefit policy- for the work done by the employees everywhere is
measured with the help of the reward which the employees get or receive in return of their work.
This compensation can be either in terms of monetary or non- monetary. The monetary
compensation includes the salary, wages, commission etc. and many other forms. On the
contrary the non- monetary perks includes factors like paid house, paid cars, electricity
maintenance, and many other forms.
Reflection
With the study of the above report it can be analysed that before starting up a business it
is very essential and crucial step to make a structure of the business. The business structure may
be defined as the whole structure of the business starting since its incorporation till its winding
up. The business structure also defines the legal status of the organization. The different types of
business structure are like partnership, sole proprietorship, companies, joint venture and many
other forms. Also it was very much useful to make a plan beforehand to starting the business
with the thorough study and the analysis of the both micro and the macro environment. The
macro environment refers to as the forces present in the external environment of the business
which may affect the business and its operations. For analysing the impact of the macro
environment the PESTLE analysis was used. The PESTLE is the acronym for the political,
economical, social, technological, legal and the environmental factors which impacts and
influences the operations and the working of the business.
Further I learned about some of the points and factors which are to be considered before
establishing the online business and along with some of the major factors that affects the
successful ness of the organization such as recruiting right talent, identifying the right customers,
setting high standards and many other points to be considered before setting up a new business.
Further I learnt about some of the different types of legal frameworks which impact the working
of the business (Adesina, Nwidobie and Adesina, 2015). The legal framework may be defined as
many various types of laws and rules and regulations which are to be followed by the online
business to run successfully and profitably. Under the legal framework I came to know that my
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business has to follow major two frameworks that is Consumer Protection (Distance Selling)
Regulations, 2000 and the other is Data Protection Act, 1998. After that I learnt about the
different sources of funding and out of many sources the two most suitable source of funding my
business is bank loan and the other is issuing equity capital. At last I found that there are three
major sectors comprising the UK economy which are primary sector, secondary sector and the
tertiary sector (Audzeyeva and Hudson, 2016).
CONCLUSION
The business structure includes the information relating to the whole structure of the
business like foe example, who will own the company, how it will be managed, in what ratio the
profits will be distributed, ho will be assigned which kind of work and many more criteria are
included in the business structure. With the thorough study of the whole report it can be
interpreted that forming a correct business structure is very necessary for the business to be
successful and flourishing. The report firstly outlined the PESTLE analysis which was used to
note the impact of the macro factors on the new online business. Furthermore, it highlighted
some considerations which are to be taken into account while starting the business along with the
different factors which affects the success of the business. Next it demonstrated about some
weaknesses and the strengths of the different types of legal framework which needs to be
considered at time of starting up a new business. Also, it discussed about the different ways or
sources through which the business can raise funds to develop its business. In the end it
discussed some sectors of the UK economy along with the application of the different types of
HR policies and their importance and necessity at the workplace.
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REFERENCES
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structure for strained FinFET devices. U.S. Patent 8,669,145.
Halling, M., Yu, J. and Zechner, J., 2016. Leverage dynamics over the business cycle. Journal of
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Kono, T., 2016. Strategy and structure of Japanese enterprises. Routledge.
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Routledge.
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