Different Types of Business Organizations and Their Structures

This essay discusses the different types of business organizations including private, public, voluntary, cooperative, and charitable organizations. It explains their legal structure, size, and operations. The essay also covers the different structures in management such as functional, divisional, and matrix structure. Examples of different organizations are provided including John Lewis Partnership, Brakes Group, Standard Chartered, and Virgin Atlantic.

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Business
Essay
8/14/2018
Student Name

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Organizations can be described as groups or structures set up with the purpose of achieving
certain goals or objectives. There are different types of organization and purpose. These
different organizations include private organization, public organization, voluntary sectors,
cooperative business, and other charitable organization. All these forms of organization are
differing in their nature and their structure too (Shopify, 2018). The entire organization has a
different structure and formation in nature. The different structure in starting up the venture
includes partnership, sole traders, and private and public limited company form of business.
Different types of organization vary from large organization to small sized organization. The
goals and objectives of all these organizations also vary from the services provided by them.
Some are locally operating their business whereas some are expanding their business in the
international market. In these organizational, the structure will also be different.
Organizations have the functional structure, divisional or matrix structure in their
management. This structure will be chosen according to the size and operations of the
business.
The sole proprietorship business is a legal set up where the business is owned and controlled
by the single person. The business owner is not legally separated from the business and its
activities. Therefore, the owner will be personally liable for the business debts. Another form
of business that is the partnership is governed by the deed made by the partners. Irrespective
of the deed, partners are liable to share equal profits and losses in the firm. All the decision in
the business is done by the mutual consent of the partners. The partnership firm can have the
legal existence when registered under the law. Company form of business can be of two types
that is the private and public limited company (Binder, 2016).
For example, the John Lewis Partnership deal in the retails industry having employee more
than 100000 in the business. This organization size is big as compared to the sole

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proprietorship form of business and considered as the medium-sized organization. The aims
of business are to provide the quality product and service in the market. At present company
is planning to explore new areas and market of New Zealand (Evans, 2016).
Companies have a separate legal existence than its owner. The ownership and management in
the company form of business is different from each other. Shareholders and investors are the
owners of the business and directors have the responsibility of handling the management
affairs in the business (Seidl, 2016).
The purpose of the private organization is to serve the society but with the motive of earning,
the profits from the market by hook or crook. Private limited companies normally are a small
organization in their nature and size of the business operations as their liability is limited by
the shares. The business is limited to the small number of shareholders that is 50. Many
small-medium enterprises operate under the private limited company as it provides the
safeguard from the personal liability and helps to reduce the risk (Belal, 2016).
One of the examples of the private limited company is Brakes Group, which are dealing in
the food industry having the employer base of 10000. In this company, the majority of the
funding was given by the Bain Capital. The company is dealing in distributing the food, drink
and other products, which are mainly related to the catering in the UK. The company is
following the matrix structure in their organization and taking the advantage of both the
functional and divisional structure. The company has different sites and distribution center in
which a functional manager or a divisional manager working at the same level and covering
some of the same managerial territory (Giaoutzi, Storey, and Nijkamp, 2016).
Another example for the private company can be taken is of the Virgin Atlantic, which is
providing its services in the airline sector. The company has an employee base of 9000. The
majority of the shareholders in the company are virgin Group with 51% of the holding of the

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company. The company is aiming to provide the good stuff to its customer by offering good
quality services at a low cost. The company is working as a strategic business unit as it is
operating differently and independently from its parent company. The company is getting the
competitive advantage by using this model in the business. The company is able to generate
the quality and value services by giving importance to customer needs and their demand
(Virgin Atlantic, 2017).
On the other side, a public company is also start up with the aim of earning profit but they
also focus on providing the welfare services in the society. Both the organization aims to
have the profits in their businesses. Their operations are based on the trend, fashion,
technology etc. In public limited companies, the liabilities are extended up to the shares held
by the shareholders. Their personal assets will not get affected in case of dissolution of the
company. The company has the legal form of existence and the company can call money
from the market by offering the shares to them. These shares can be traded in the market
(Kono, 2016).
Standard Chartered is one of the examples in public companies, which is providing its
products, and service in finance. The company has a large customer as well as employees
(Standard Chartered, 2018). The company has expanded its business worldwide and have a
large reach in the market. The company aims to provide their financial services
internationally. The company has usi3ng the divisional structure as it has more than 1200
branches in 70 countries (Standard Chartered, 2018).
Another example is from the sector of the supermarket industry that is Tesco Plc, which is
providing the groceries and general merchandise in a large range. Tesco Plc is having the
hierarchical structure in the organization, which reflects the large size of the business. Even
in-store level, there are four layers of management. This structure fulfills the requirement of

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the company vision and mission statement by expanding in a large area while providing the
variety of goods at one store only. The company has opted for this hierarchy in structure due
to the large scale and various departments, which has to be handled by using the hierarchy in
nature. All the relevant information will be transferred through this structure only (Research
Methodology, 2016).
The charitable organization or the not for profit organization are made with the purpose to do
the welfare of society rather than having financial gains. These organizations can be
differentiating with the profit organizations on the basis that their primary motive is not to
generate the profits for the business owner rather to work for public benefit. Cooperatives
businesses are set up with the aim to assist to a particular community or society (Soomro,
Shah, and Ahmed, 2016).
Stafford and Rural homes are providing the housing services in the area of Stafford. The
company core value is to being approachable, supporting, empowering, and respecting.
Stafford and Rural home manage to provide more than 6000 homes to the people (Best
Companies, 2018).
Another example can be taken is of Fair ways which are providing the comprehensive range
of services to the children and young people. In this, they are giving the social care, support
them, and give education and training services. This organization has more than 250 staff,
which are providing the services and looking after children and young people per year along
with their families and foster careers (Best Companies, 2018).
From the above discussion, it can be concluded that there are different types of organization
with different purposes. These organizations include public, private, and voluntary
organization. All the organization follows the different structure and has different forms and
legal structure. Sole traders do not need to register themselves under the area whereas

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company form of business must have the legal existence and approval before starting the
venture. All the business form has its own advantages and disdavantages. The scope and size
of the business will also vary from each other. Partnership has their partners, which are
working with the mutual consents and are liable for all the expenses and losses of the firm.
On the other hand the company form of business has their members and shareholders who
invest their fund in the bruises and liable to only the amount of shares held by them. Their
personal asset will get not get affected. From the above examples, it can be understood that
not only the structure will be different but their functions and aim will different from each
other. Some organizations are working for earning the profit in the market whereas charitable
organizations are working for the welfare of the people.

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References
Belal, A.R. (2016) Corporate social responsibility reporting in developing countries: The
case of Bangladesh. Oxon: Routledge.
Best Companies. (2018) About Fair Ways [Online] Available from:
https://www.b.co.uk/company-profile/?Fair-ways-101878 [Accessed on: 14th August 2018]
Best Companies. (2018) About Stafford and Rural Homes [Online] Available from:
https://www.b.co.uk/company-profile/?Stafford-&-rural-homes-72977 [Accessed on: 14th
August 2018]
Binder, J. (2016) Global project management: communication, collaboration and
management across borders. Oxon: Routledge.
Chron. (2018) Different Types of Organizational Structure [Online] Available from:
https://smallbusiness.chron.com/different-types-organizational-structure-723.html [Accessed
on: 14th August 2018]
Evans, T. (2016) Professional discretion in welfare services: Beyond street-level
bureaucracy. Oxon: Routledge.
Giaoutzi, M., Storey, D.J. and Nijkamp, P. (2016) Small and medium size enterprises and
regional development. Oxon: Routledge.
Kono, T. (2016) Strategy and structure of Japanese enterprises. Oxon: Routledge.
Research Methodology. (2016) Tesco Organizational Structure [Online] Available from:
https://research-methodology.net/tesco-organizational-structure/ [Accessed on: 14th August
2018]

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Seidl, D. (2016) Organizational identity and self-transformation: An autopoietic perspective.
Oxon: Routledge
Shopify. (2018) Business Structures [Online] Available from:
https://www.shopify.com/guides/united-kingdom/business-structures [Accessed on: 14th
August 2018]
Soomro, Z.A., Shah, M.H. and Ahmed, J. (2016) Information security management needs
more holistic approach: A literature review. International Journal of Information
Management, 36(2), pp.215-225.
Standard Chartered. (2018) About us [Online] Available from: https://www.sc.com/en/about/
[Accessed on: 14th August 2018]
Standard Chartered. (2018) Standard Chartered Plc - Company Profile, Information,
Business Description, History, Background Information on Standard Chartered Plc[Online]
Available from: http://www.referenceforbusiness.com/history2/74/STANDARD-
CHARTERED-PLC.html [Accessed on: 14th August 2018]
Virgin Atlantic. (2017) Annual Report [Online] Available from:
http://virginatlanticannualreport17.com/ [Accessed on: 14th August 2018]