The Structure of Business

This article discusses the structure of business and the legal statuses of businesses that your business may adopt. It also identifies and evaluates the strengths and weaknesses of sources of finance available to your business start-up. Additionally, it identifies three sectors within the UK economy in which a business can operate and comments on their value to the UK economy.

The Structure of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Construct a table to show the various legal statuses of businesses that your business may
adopt. Identify the relative strengths and weaknesses of these legal statuses.............................3
Considering your business idea, identify and evaluate the strengths and weaknesses of
THREE sources of finance available to your business start-up..................................................6
Identify three sectors within the UK economy in which a business can operate. What are the
differences between the three sectors? Comment on their value to the UK economy................7
Identify at least two HR policies and comment on their importance to the modern workplace
...................................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCE ................................................................................................................................13

INTRODUCTION
The structure of business is defined as a set of activities which is used by organization for
run their organization smoothly. Due to having effective structure of business organization is
able to fulfil the needs and desires of customers in time. With help effective infrastructure firm is
able to maintain proper communication between employee and employer for long time. The
chosen companies are Mark and Spencer, HSBC and the national trust for understanding the
structure of business effectively (Buana, 2018). The head-office of Mark and Spencer is situated
in United Kingdom and the company was established in 1884 This firm is dealing with wide
range of products which includes grocery items, home appliances, fashionable cloths and so on.
The report will have covered construct a table to show the various legal statuses of businesses
that your business may adopt and identify the relative strength and weakness of these legal
statuses.
TASK
Construct a table to show the various legal statuses of businesses that your business may adopt.
Identify the relative strengths and weaknesses of these legal statuses
The various types of business are public, private and voluntary sector which are
described below -
Public – A public sector company is basically defined as a paid up equity and is fully controlled
by state or central government, severally or jointly and including any type of undertaking like by
the department of public enterprises and organizations. These type of enterprises or companies
have a major stake or popularity between the public rather than the financial institutions. In
context to Mark and Spencer, it one of the public company who is focusing on providing all
types of products and services to users according to their needs and desires.
Types of public sector companies are -
 Government – The government based company is refers to a legal entity that undertakes
various commercial functions in side of an owner government. The main focus of this
type of organization is to fulfil the needs and desires of customers and also for enhance
the revenue at maximum level.
 State – In this stage the organization is focusing on the needs and wants of users through
statewise. When organization run their functions through statewise mode then revenue of

the firm are easily enhanced at higher rate in low time. The state based companies is
basically a legal entity which is indirectly or directly managed by government.
 Local – In local structure organization is able to deliver their services and products to
customers in fast manner. The major benefit of local structure for organization is that
here management easily develop strong relations with customers quickly for long time.
Strength and weakness of public sector -
Strength Weakness
 In public organization productivity and
performance of employees are
increased in slow manner.
 Here organization are mainly focused
on the needs and desires of the
customers. Then according to that
services and goods are provided to
them.
 In public sector firm the positive
relation between employee and
customer are not maintained for long
time.
 In public firm safety are highly
increased for employees regarding their
job roles and responsibilities.
Private – Private sector organization is a part of a country's economic system which is run by
various firms and every individual persons. Due to this reason government did not have much
role in the activities of private company (Demartini, 2018). In context to HSBC, here the main
focus of top level management is to increase their profit margin and market share at higher rate
with help of their employees in any way. Due to the strict behaviour of private firms employees
face lot of stress and workload in their job roles and responsibilities.
Types of private sector companies are -
 Sole proprietors – In the structure of sole proprietors business are controlled and owned
by a single person and company. That means whole powers and functions are managed
by individual which creates stress in the minds of workers. Because here main motive of
firm is to enhance revenue and provides quality service to users at any cost.
 Partnerships – In this structure agreement are made between the partners for running
activities of organization smoothly. With help of partnership company is able to deliver
best quality service and product to customers for long time. Because in partnership
powers and task are equally divided to all categories of employees.

Strength and weakness of private sector
Strength Weakness
 In this sector the main focus of higher
authority is to sustain the overall
quality and standard in their service for
long time.
 The greatest strength of private sector
firm is to solve the queries of the
customers and employee's quickly.
 In this type of organization the conflict
between the employer and employee
are highly enhanced.
 In this sector the value of the lower
level employees are very low for higher
authority.
Voluntary – It is totally different from public and private sector because in voluntary
organizations higher authority is focusing on solving the various issues of their employees and
clients in effective manner (Hernández‐Trasobares and Galve‐Górriz, 2020). In context to the
national trust here the main focus of organization is to solving various issues effectively firm is
able to maintain positive relations with them for long time. In this way the goodwill of company
are easily sustained in market for long duration.
Types of voluntary sector companies are -
 Limited liability company – In this type of organization or structure management are
serving their goods and services to customers at wide range globally. Due to running the
business globally firm is able to sustain their profit margin and productivity at large scale.
Due to running their activities globally company is able to decrease legal and other risk in
business activities effectively.
 Trust – A trust is also a one type of voluntary organization and here the main focus of
top level management is to do welfare activities for their employees and customers. Due
to conducting welfare activities goodwill of organization are easily maintained in market
for long time.
Strength and weakness of voluntary sector
Strength Weakness

 In this type of organization the
interference of the government and
legal risk are very low.
 Here the positive relationship between
company and customers are strongly
sustained for long time.
After the above analysis it is understood that public, private and voluntary sector
companies have different functions and aims. But the ultimate goal of various sectors is to
deliver high quality product to customers in long term. Because only providing standard and
quality product to users is the only way to increase the overall success and growth of
organization at high rate. With effective development of all three types of organization the needs
and wants of customers are easily fulfilled in time (Ikram, Zhang and Sroufe, 2020).
Considering your business idea, identify and evaluate the strengths and weaknesses of THREE
sources of finance available to your business start-up
Sources of finance -
 Bank loans – It is a highly effective and common source which is used by many
organizations for borrowing the money according to their requirement. The main
advantage of this type of source is that here agreement are made between company and
bank in legal manner. Due to the legal contract organization is needed to repay the
borrowed amount in particular time period.
Strength Weakness
 With help of this source organization is
able to increase their portfolio at
maximum level quickly.
 In the activities of business the
interference of government are very
low.
 The procedure of bank loan are highly
complicated. Due to this lot of time are
taken for providing funds to the
organization.
 In the process of bank loan lots of paper
work are required and it is a time
consuming process which is not liked
by many organization.
 Venture capital – It is also a one type of sources of finance where organization is able to
borrow the money in large amount in comparison with other sources. Venture capital is

one of the source which is responsible for taking equity position in the organization to
help it carry out a promising but higher risk project. Venture capitalists also expect a
healthy return on their investment, often generated when the business starts selling shares
to the public.
Strength Weakness
 In venture capital the burden of
repayment are at zero level. Due to this
organization is able to diversify their
product and services at large scale
without any risk.
 Venture capital have large connections
in business community which is highly
beneficial for startups to grow and
become successful.
 The process of venture capital is also a
complicated and long term process.
Due to this the growth of the company
are increased in slow manner.
 May required high return on original
investment.
 Angel investor – It is also a one type of sources of finance which is used by many
organizations for borrowing the money at large scale (Keane, Cormican and Sheahan,
2018). In this type of sources of finance the individual person take the whole risk during
the time of providing funds to company. In exchange for risking their money they reserve
the right to supervise the management practices of organization. In comparison with other
funding sources it is highly flexible in nature Because here no specific time is mentioned
for repaying the borrowed amount.
Strength Weakness
 In angel investor legal and other risk
are very low during the time of
borrowing the money at required
amount.
 Angel investors are typically a
experienced investors who take a long
term view.
 The primary disadvantage of using
angel investors is the loss of complete
control as a part-owner.
 Business owners commonly give away
between 10% and 50% of their business
start-up in exchange for capital.

Identify three sectors within the UK economy in which a business can operate. What are the
differences between the three sectors? Comment on their value to the UK economy
The main three sectors within the UK economy are primary, secondary and tertiary sectors.
The primary sector is some times called as extraction of sector and it is related with those
activities which is related with environment. This type of sector are highly important for
sustaining the economy of UK in effective manner. In this sector the customer and the
organization have the deep relationship with environment because they are receiving raw
materials and products directly from the earth. In respect of Mark and Spencer raw materials are
highly important for producing best quality product according to the needs and desires of
customers. In respect of customers, they received finished and quality products from company
for long time. The activities which comes under the category of primary sector are agriculture,
mining, farming, fishing and others.
The secondary sector is defined as those activities which is utilized by organization for
making and distributes the finished goods in various location. Those activities are manufacturing,
construction and utilities. The process of secondary sector is totally different from primary sector
Due to the effective activities of this sectors firm is able to fulfil the requirements of customers
in time without any type of delay (Kozak, 2018). The products which are produced in secondary
sector are highly valuable and reliable for users in long term. With help of providing best
secondary products to users firm is able to sustain their economic growth in UK country for long
time. With help of delivering secondary products company is able to develop positive
relationship with customers for long time. In secondary sector digitalization are highly important
and plays the major role for improving the economy of the UK and organization at effective
manner.
The concept of tertiary sector is totally different from other sectors and in this sector
activities are done in the form of online services. It means use of digitalization are highly
increased in this sector rather than the secondary. This sector is also called as the combination of
both primary and secondary sector. The activities which comes under this sector are retail,
financial services, communication, Hospitality and leisure, information technology and others.
This type of sector is majorly consider with the intangible assets of offering services to
customers and businesses. With help of enhancing digitalization firm is able to deliver services
and customers within prescribed time. According to this sector the popularity of the online

services are increasing day by day. Because in today's time digital platforms are highly important
for maintaining the demand and supply of products effectively. It is also essential for analysing
the wants of users quickly.
Differences between primary, secondary and tertiary sector -
Primary Secondary Tertiary
 The allied and
agricultural sector
services is known as
primary sector.
 Raw materials for
services and goods are
facilitated for the
primary sector.
 In this sectors
traditional techniques
are used which is not
reliable.
 The activities which
are involved in this
sector are mining,
forestry and
agriculture.
 Here manufacturing
sector is called as
secondary sector.
 In secondary sector
changes one good
into another by
building more from it.
 In this sector more
reliable techniques of
production are used
which is highly
organized (Levänen,
Lyytinen and Gatica,
2018).
 It involves
manufacturing units,
large firms, small
scale units and
multinational
organizations.
 The other name of
tertiary sector is service
sector.
 This type of sector
facilitates services to
both secondary and
primary sector.
 In this sector modern-
day logistics are used
to execute its functions
and is well organized.
 Banking, insurance
trade and
communications are
comes in this area.

In 2020 the agriculture industry contributed around 0.58 percent to the United Kingdom
GDP. 17.04 percent came from the manufacturing industry, and 72.8 percent from the services
sector. The vast majority of the UK’s GDP is generated by the services sector, and tourism in
particular keeps the economy going. According to this graph it is understood that all these three
sectors are highly important for stabilizing the economy of whole country and organization for
long time. When the economy are stabilized in effective manner then organizations are able to
increase their revenue at maximum level for long time (Potkány, Gejdoš and Debnár, 2018).
With help of all these sectors all these sectors strong networks are easily sustained with
customers for long duration.
Identify at least two HR policies and comment on their importance to the modern workplace
In context to HR policies it is highly is highly important in every organizations for
keeping positive connections between employee and employer for long time. With help of
effective HR policies firm able to sustain the productivity and performance of employees for
duration. The major benefit for utilizing these policies is that the resources of the firm are always

utilized in optimized manner. The most commonly HR policies which are used in various
organizations by higher authorities are health and safety policies, equity and diversity policies
and others are described below -
 Health and safety policy – A health and safety policy is a one type of action or plan
which is implemented by higher authority in their workplace area between employee's.
With help of this policy the lower level employees are able to do their job roles and
responsibilities without any type of fear for long time. It also assist the lower level
employees for performing their task in effective and systematic manner. In this the Mark
and Spencer and other organizations easily maintain their positive output from their
employees for long time.
 Equity and diversity policy – It is one of the important policy which is used by many
companies for running their whole activities smoothly (Sanaei and Sobhani, 2018). The
main aim of this policy is provide a work environment that fosters fairness, equity, and
respect for social and cultural diversity, and that is free from unlawful Discrimination,
Bullying, Harassment, Vilification and Victimisation. Due to keeping fairness in
company activities by higher authorities easily developed strong coordination with their
employees all customer segments for long time.
 Code of conduct policy - The Code of Conduct is the important policy of organization
which includes their mission, vision, ethics and objectives (Slávik, 2019). The elements
which is covered in this policy are dress code, equal rights to all, electronic usage policy,
conflict of interest, media policy, proper work environment etc.
Importance of HR Policies -
Firstly it helps the higher authority to easily maintained effective communication
between employees during work for long time. Because proper communication is highly
important for understanding the task in proper way which is provided by higher authority.
Secondly, According to this policy company also need to maintain flexibility in the work
of the employees. Because due to keeping flexibility lower level workers are able to perform
their task without any type of stress or workload.
Thirdly, It helps to inform workers about different policies of the behaviour and also for
keeping discipline in the workplace area between employees.

CONCLUSION
From the above analysis it concludes that the concept of business structure are highly
important to maintain positive relationship between employer and employee or company and
customer for long time. With help of proper business structure company is able to fulfil their
roles and responsibilities effectively towards their employees and customers for long time. Due
to the effective identification of desires and users the trust and goodwill of organization are
easily sustained in minds of users for long duration. This report will cover Identify three sectors
within the UK economy in which a business can operate. What are the differences between the
three sectors. It further covers Identify at least two HR policies and comment on their importance
to the modern workplace.

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