Types of Companies and Their Impact on Business Performance

Types of Companies

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAINBODY...............................................................................................................................................3
Section 1......................................................................................................................................................3
Different types of companies & how they work.....................................................................................3
Section 2......................................................................................................................................................5
Different companies from sole traders to cooperatives and Limited Liability Partnerships.....................5
Section 3......................................................................................................................................................7
Different organizational structures & explain how organizational structure affects business
productivity.............................................................................................................................................7
Using PESTLE analysis explain how different external factors affect the performance of a business.....8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Business is considered as a separate legal entity which maintain effective planning and
which can helpful to establish a strong infrastructure which can provide Innovative goods &
services which can help to attract the customers. There are many types of companies are running
in the United Kingdom like micro, small, medium & large companies which contains specific
characteristics and scale. This project will explain about various types of companies and various
ownership structures like sole traders, cooperative, partnership, Company and many more. This
report identify many kind of organizational structure & determine that how organizational
structure can affect the productivity of the business. For this project, Morrison’s company is
contain, which is popular multinational British retailer form which operate various super market
and stores all around the world. This firms established in 1899 by the William Morrison. This
report conducts PESTLE analysis to investigate the impact of external factors on the
performance of the company.
MAINBODY
Section 1
Different types of companies & how they work.
There is various kinds of companies operating their businesses in UK, which can help to
improve the living standard of the people and also provide appropriate employment opportunities
to the rural and urban people and also target local communities so that they can live a good life.
The involvement of different type of companies in the UK economy is more and companies can
provide positive impact in the economic growth of the country (Aithal, 2017). There are various
type of companies which considered by the UK market which are explained below-
Micro business
Micro business is very small in size and contains very small level of scale and requires fewer
amounts of funds to start a business. In this type of companies less than 10 workers can work and
its turnover considered under £2 million.

Characteristics
 Involvement of limited workers - These type of businesses is very little in size so their is
a limited involvement of the employees and other workers to operate their business
operations.
 Low profitability - Micro business get Low level of profitability because there is less
number of operations and business activities are running’s so it's business owners can get
less profitability.
 Lower production - Micro enterprises regulate lower level of manufacturing &
production activities and produce fewer amounts of goods and services (Al Mamun and
Hasan, 2017).
Small business
These type of businesses are privately owned and contain specific ownership like sole
proprietorship, partnership and other cooperation’s. In this kind of companies less than 50
workers can work and it contain turnover rate under £10 million.
Characteristics
 Small teams of employees - Basically small businesses maintain small team of employees
because there is only involvement of less than 50 members so that only few groups and
teams can be created by the leader to operate business activities. Small market areas - Small business cover small market areas & locations for the buying
and selling activities. This type of business only target few markets and earn average
profit (Brandano, Detotto and Vannini, 2019). Sole and partnership ownership - This business is privately owned and its owner
maintain specific ownership structure like partnership and sole proprietorship and owners
can manage and control all the employees and business process.
Medium business
Medium business regulate their business operations most of the location and cover rural
and local market and gain more profitability as compared to the micro & small businesses. in
this kind of companies less than 250 workers can work & the turnover rate can considered under
the r £50 million.