Types of Companies and Their Market Reach: A Study on Unilever

This report explores the different types of companies and their market reach, focusing on Unilever. It discusses the various types of companies based on capital, investment, assets, and liability. It also examines different types of company partnerships and organizational structures. Additionally, the report includes a Pestle analysis to understand the external factors affecting companies' performance. Overall, it provides insights into the types of companies and their market dynamics.

Types of companies

Table of Contents
INTRODUCTION ..........................................................................................................................3
Different types of companies......................................................................................................3
Different types of company partnership......................................................................................4
Organisational structure..............................................................................................................6
Pestle analysis.............................................................................................................................7
CONCLUSION ...............................................................................................................................8
References........................................................................................................................................9
Books and journals:.....................................................................................................................9

INTRODUCTION
Business are considered to be wider and complex element into economy. There are
various types of business enterprise established for small and long run. There are huge
competitions into the market when making list of companies operating for gaining maximum
profit and market share. Every companies run for their own business aim and motto which h
make them different from one another. These enterprise operates with innovative techniques and
maximum capital contribution with limited or unlimited liability. This report is going to consider
Unilever which is a multinational organisation London, England. The company is specialised
producing and distributing large variety of goods like food, home furnishing, consumer items,
general merchandise and healthcare items (Lee, 2020). The company is incorporated as a public
limited organisation which has to complete with various market forces in order to maintain
worldwide serving. In this context, the report is going to evaluate about types of Companies and
their market reach to get an effect of external environment using Pestle analysis and
organisational structures followed by every sector group.
Section 1
Different types of companies
There are different types of companies incorporated within the market. every business is
compile with the limits of their capital contribution. Not every entrepreneur is eligible to make
huge contribution and runs within for short terms goals, for that instance, there are many types of
organisation as per their capital, investment, assets and liability (Ulanov and Simonov, 2020).
Micro business: A micro business firm runs on a single product category which provide a lot of
opportunities to make money with less investment. Micro business firms include less setup and
does not look for expansion because of small funding. These firms are mainly specify in retail,
healthcare, and social sector. These firms are essential for the economy to have small business in
order to fulfil demands for small sections of society.
Characteristics: the firms under micro business have less employee up-to 1-10 which should
have initial investment upto 1 crore and annual turnover of not more than 5 crore. These firms
are easy to maintain and restructured to perform less complex activities (Hummel and Hörisch,
2020). Red chief is an example of these organisation which have annual turnover of $25000.

Small business: These firms are mainly incorporate with quite high investment of micro
business. It may run by sole proprietors because of containing 10-49 employee. These
organisations are entitled to manage by world bank, these business are known from their size,
scope, product and capital contribution. For that instance, there are various small firms who earn
allot of profit while running into market competition.
Characteristics: small scale firms have less than 50 employees and their revenue limited upto
10 million. The owner of these firms are totally liable for their their assets and creditability.
These firms could not come under companies act to make huge investment and think for
expansion into international market due to low investment criteria (Bager and Lambin, 2020).
Medium size business: These types of business have large market share and have huge
competitive potential compared to small and micro business. These kind of business could look
further for their expansion into long run for the instance of opening with large funding. These
firms are incorporated with partnership or sole agreement under companies act which make them
less liable towards the organisation
Characteristics: These firms are not allowed to increase their employee more than 250 and a
maximum turnover of 50 million into leading market. The firms are not entitled to make
investment more than 10million(Efimova, Rozhnova and Zvyagintseva, 2020).
Large size business: It is the last types of organisation in which companies run into market,
after attaining micro and small size growth, business could perform all the activities restricted to
the small business. A large organisation could make any opportunity, serve into whole world,
product diversification, long term market share and other benefits. These companies could set
their reputed brand or image into national and international market resulted into growth.
Characteristics: These firms are entitled to have more than 250 employees with the investment
of more than 10 million. The main example of the business are Tesco, Unilever, and other huge
organisations.
Different types of company partnership
The business organisations not only affected with the investment, employees, and
turnover but have obliged with number of companies owner. These are those individual who
make the company exist able and reliable into market by equally entitled to get profit and
liability with a minimum amount of ratio (Fernández-Vázquez and Sancho-Rodríguez, 2020).
Companies can be incorporated into any type of firm whether it is sole trader, partnership,

limited liability, public limited or cooperative. But there are many comparison in the provision of
each type of companies. Work and duties are same for all kinds of companies as the partners
share risk, cope up with responsibilities and uncertainties, work together for the same goal,
paying taxes and accept all the provision under companies act 2006. The main characteristics of
different kinds of companies are described below:
Sole trader: under this type of business, the enterprise runs by one single owner which is
known as sole proprietor or individual enterprenuer. It is the base form of running a business
under which there is not separate entity exist. The owner is totally liable to pay their debts, earn
profit and are unlimited for their liabilities over assets and creditors (Veltri, De Luca and Phan,
2020). The organisation runs by single owner but they may hire different employees to divide the
work in between them. A sole trader takes all decision regarding product, pricing, marketing and
all other functions of an organisation.
Partnership: Under partnership act 1890 UK, business run by two or more than two
owners are obliged with various roles and duties for the operations. In he type of partnership,
there must be two member, mutual agreed to come into verbal and written agreement in order to
share profit and losses, liability and debts. Number of partners are equally liable for business
activity and entitled to come under provision of companies act. All the decisions for business
function taken by mutual concerns.
limited liability business: Limited liability business is a company having its own
identity into the market. The term say all the facts about companies existence. Mainly it is a
perceptual concept where member may come and die, but the company will continue to run. The
owners and shareholders have limited liability over debts and assets. The members of company
are entitled to get into all provisions of companies act and thereby, regulates their services up to
their liability (Villarreal, Pellicer and Rodriguez, 2020). UK is the most beneficial country to
have limited liability company as they drive opportunities into reasonable cost of less than $150.
Public limited liability business: The companies run under public limited are managed
and operated by companies directors and shareholders. It is the the most popular type of
companies limited where organisations have separate entity and directors attract shareholders to
take shares and make investment for boosting financial resources. Unilever is the example of
public limited company which has its annual turnover of €51.980 billion.

These partnership firms creates much influence in deciding business entity and its
existence for both short and long run.
Organisational structure
Organisational structure defines as the structure form of doing activity performing roles
and responsibilities to the level of all department. There is need to follow an effective
organisation structure so that communication, directing and instruction s regulate prioperly
am9ong all the members of company (Farag and Dickinson, 2020),. These organisational
structures are not meant for specific form of company, it is used and addressed by all types and
kinds of operations. No business could run without proper coordination, communication and
management system it require to understand each employees about their roles and limited excess
to the authorities. In context with Unilever, the company have large operation's so that, they need
to follow most effective structure to maintain level of hierarchy into each department.
Functional structure: it is a most reliable and most used structures by most of large
organisation as it is suitable for companies having different departments. Under this structure,
Unilever could specify their employees job roles and responsibilities as per their specialised area
of working. This could be better understand with the example of the company having large
department like finance, marketing, production for different products. so that, employees are
divided into departments as per their job role. Through these forms, employees will be aware
about their job responsibilities (van Loon and Van Wassenhove, 2020).
Divisional: this type of business structures is mainly used when companies have large product
line and m,any departments. Employees set with their roles and responsibilities according to the
area of specialization. The teams and leaders are decided as per product category as every
product consist different features that needs to produce separately. Here employees feel
motivated while working with multidimensional company that provide therm opportunities to
develop career. Unilever follows this structure as the company have several products and
worldwide serving. Due to which, the company able to maintain all the activities all together. No
employees are allowed to take decisions as per own without concerns of leader and managers in
order to maintain goodwill into market.
Flatarchy: under this type of structures employees feel less pressure and work as per their
preference. Companies using this hierarchy level, employees feel motivated by getting
authorities and flexibilities over taking decisions and put their opinions. Through this chain,

there will be fulfilment of communication gap and no delay would get in work done. Unilever
produces these autonomy to n most of their department where work is segregated by leaders
where effectiveness requires in specific period of time (Pasko, Chen and Yao, 2020).
Matrix: under this organisational structure, employees have to work under different service
department where they get instruction from various leaders and mange to work in this hierarchy.
Unilever does not consider this structure due to maintain employees morale and eliminate
confusion or work burden.
Pestle analysis
It is the framework of external factors which creates impact on companies performance,
well being and their profitability. This analyses helps to build an image of outside environment
and the factors mainly concerned into leading market. A business entity is concerned about
forces that could create uncertainness in the future run. For that instance, Pestle analysis is an
effective tool used by Unilever. It consist 6 factor which are described below:
Political: Under this factor, all the political interference come into consideration such as Brexit,
stability in government intent. Unilever has negative impact of political parties due to changing
policies in Brexit. Through which they are unable to cover export cost and leads to ineffective
supplies.
Environmental: this shows the influence on environmental well being through eliminating
unfair practices which could harm every creature of planet. Unilever has its positive impact by
undertaking new policies to launch natural products. They promote elimination of use of plastic
and bags and adopt the philosophy of recycle.
Social: these factors consist social desires that comes from customers demands and trends
arriving into market. Unilever working socially by providing desirable and qualitative products
through the nation that shows positive response of customers.
Technological: these factors shows influence of technological up gradation into market,
companies need to adapt all new software and digital sources to make their business more
realistic and effective. Unilever have not effective R&D department through which they lack
with technological advancement (Alora and Barua, 2020).
Legal: Under these forces, organisation are entitled to follow all legal obligation and considers
legal acts towards employees and consumer rights. Unilever implement equality act , health and
safety and consumer act through which they make their operations free from legal allegations.

Economical: this hows, Unilever has to perform all the business function by considering
economic stability. It includes demand and supply, inflation rates. Unilever maintain flow of
money and provide products as per market demand.
CONCLUSION
The report has shown different types of business entity and types of companies evaluated
into short and long term market. It has concluded that, companies may run in any kind of
partnership, it has to be regulated effective organisational structures. Also, pestle analyses have
shown all the macro environment forces that impact on their profitability.

References
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