Types of Companies and Business Structures - Desklib

This article discusses different types of companies, including micro, small, medium, and large businesses, as well as sole traders, partnerships, limited liability businesses, public limited liability businesses, and cooperatives. It also covers organizational structures and external factors affecting business, such as political, economic, social, technological, and legal factors. The article uses Tesco as an example to illustrate these concepts.

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
ID:
Table of Contents
Introduction...................................................................................................................3
Section 1: Different types of companies and how they work .......................................3
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Section 2: Different companies from sole traders to cooperatives and Limited Liability
Partnerships ................................................................................................................4
Section 3: Different business structures and external factors affecting business........5
Conclusion....................................................................................................................8
Reference ....................................................................................................................9
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Introduction
Business practices means those practices which is used for making business
organization establish with effective perspective. These practices relates with
different kind of business organization that has been existing within particular
market. The selected organization within the report is Tesco which is an British
supermarket chain that has been established in the year 1919 and has headquarters
in United Kingdom. In this assignment things covered is based over is related with
different types of companies, external factors and business structure has been
covered.
Section 1: Different types of companies and how they work
Business agencies are the ones components that primarily based totally over
diverse varieties of views that has been used to carry out sports this is associated
with income of product and offerings inside marketplace. There are diverse varieties
of agencies which current inside precise marketplace region which has been
mentioned as follows:
 Micro business: A micro enterprise corporation is that sort of
enterprise corporation which could be very small in nature. It works
with ten or much less then ten personnel(Cha, Kim and Cichy, 2018).
Also, those agencies has its turnover that's much less then a small
enterprise. Example for such agencies are Etsy owners, Amazon
suppliers, solo consultants, freelance photograph designers, and
home-primarily based totally businesses. These are the ones agencies
which has been running on small scale enterprise and has personnel
extra then one hundred however much less then a thousand.
 Small business: Small agencies are essentially big and has been
appearing enterprise capabilities with precise region. Such sort of
corporation encompass much less personnel. They have big scope as
examine to micro enterprise which makes robust relation advanced
with clients inside neighbourhood marketplace.
 Medium size business: Medium enterprise agencies are the ones
agencies which has been operating over enterprise operations inside
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country wide marketplace. These corporation has extra then a
thousand personnel and has been running on inside diverse industries
at country wide level(Gujar and Attarwala, 2020). This styles of
business corporation are performing project and sports activities in
special part of the world. Big organisation has greater than 500
employees with required capacity and qualifications. This styles of
business corporation is operating to earn greater profits.
 Large size business: Larger organisation scope is to beautify
business corporation sports activities in an effort to accomplish set
objectives. This styles of organisation purpose at gaining competitive
advantage over distinctive rival agencies.
Section 2: Different companies from sole traders to
cooperatives and Limited Liability Partnerships
 Sole trader business: This enterprise is primarily based totally upon
unmarried possession which makes paintings to be accomplished extra
effectively. These corporations operates at small stage and does now no
longer consist of complexity inside commercial enterprise activities. These
corporations are smooth to perform and calls for much less capital. At time
those corporations faces problems in arranging price range from non-public
sources.
 Partnership: This is some other vital structure of enterprise which has
been structured via way of means of or extra then persons. Partners inside
the enterprise works for not cause to earn income and revenue. In partnership
all operations are treated via way of means of companions themselves. Its
formation system consist of issuing if INHRC wide variety and partnership
agreements are structured simplest while licensing or another prison formality
is needed to be finished.
 Limited liability business: Management is accomplished via way of
means of companions themselves and price range are organized via way of
means of then companions via direct funding(Imbrogiano and Nichols, 2021).
These enterprise paintings upon hobby set via way of means of companions.
Management is accomplished via way of means of companions of income and
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loss taking area because of commercial enterprise. The system of
undertaking commercial enterprise operations need to consist of all
companions that makes it rigid. Due to much less prison responsibilities its
formation is accomplished easily.
 Public limited liability business: This enterprise has been working
with public hobby. It makes use of public ltd ultimately of the call and stocks
are allowed to be disbursed to public. Management is accomplished via way
of means of multi friend proprietors and stakeholders. Funds are generated
with the assist of presidency institution. Public enterprise has been
formulating with implied rules that sell public welfare. Public corporations inure
losses over subsidiaries supplied via way of means of them for public welfare.
 Cooperative: These corporations are working inside company zone and
makes use of Private Ltd ultimately of corporations call. The stocks of this
enterprise is not offered in public. The enterprise contain itself via way of
means of amassing all forms of essential documents. Formation system is
time eating and cash contain is huge which makes it very complexed in
nature. Divided possession- one of the dangers of personal restrained
company.
Section 3: Different business structures and external
factors affecting business
3.1 Identification of different organizational structures and
explaining how does organisational structure affect business
productivity
An organizational structure way the machine that's primarily based totally over
diverse styles of sports that has been taking vicinity so one can make desires and
targets of business enterprise achieved(Islam and Abd Wahab, 2021). Under
organizational structure sports like rules, position and obligations has been covered.
Also, it's miles used for figuring out of statistics glide inside the business enterprise
from pinnacle to bottom. It lets in enterprise surroundings of an business enterprise
like Tesco to paintings upon route of achievement. Further, the approach leads in the
direction of improvement of glide of labour inside the business enterprise this is used
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for dealing with of assignment inside the business enterprise. There are diverse
styles of organizational structure which can be mentioned as follows:
Hierarch structure: In this structure pyramid formed is evolved that's
primarily based totally upon pyramid inside which authority is given from pinnacle to
bottom. This kind of organizational structure utilized by an business enterprise for
accomplishing its operations. There are sure benefits and drawbacks of this structure
which can be as follows:
Advantages
 This lets in personnel to broaden awareness upon their roles required to be
done with the aid of using them.
 Through the structure specialization of personnel are encouraged.
Disadvantages
 This structure hampers the interdepartmental communicate.
 It create tension inside an business enterprise
Functional structure: This structure is primarily based totally over function
inside which maximum degree of duty this is divided as consistent with the position
assigned in keeping with talents and capabilities posses with the aid of using
personnel running inside group members(Morales and et. al., 2021). In this every
branch is controlled separately. The benefits and drawbacks has been mentioned as
follows:
Advantages
 In this higher differentiation is furnished over authority and duty
 It leads in the direction of assigning of stories to precise tasks which makes
paintings to be finished extra effectively.
Disadvantages
 Can sluggish down innovation or essential modifications because of
expanded bureaucracy
 Can purpose personnel to behave in hobby of the branch as opposed to the
enterprise as a whole
Horizontal structure: This structure suits inside an business enterprise with
few stages that among higher control and staff-degree personnel. As consistent with
the structure organizations use to develop big sufficient to construct diverse
departments that makes structure inspire supervision and entails personnel from all
degree. The benefits and drawbacks has been mentioned as follows:
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Advantages
 In this structure personnel are given extra obligations.
 This structure makes open for communicate to personnel.
Disadvantages
 Create confusion due to the fact that personnel do now no longer have a
clean manager to file to Produce personnel with extra generalized talents and
knowledge(Myers, 2018). Tesco is an famous business enterprise that has
been running in powerful way through following hierarchical business
enterprise structure.
 Through this structure paintings control is finished with field and order. This
makes responsibilities and assignment assigned to diverse groups inside an
business enterprise finished extra effectively. Tesco in growing productivity,
employment balance and powerful choice making technique which made
business enterprise acquire achievement and increase inside marketplace of
UK.
3.2 How different external factors affect the performance of a
business – PESTLE Analysis
PESTEL Analysis There are different factors are protected in commercial
company surroundings that effect on organisational standard overall performance
and standard overall performance in brilliant similarly to terrible manner(Peralta,
Carrillo‐Hermosilla and Crecente, 2019). PESTLE evaluation is described because
of the reality the systematic framework that permit company to discover one-of-a-
kind outside elements that have an effect on commercial company hints, techniques
and standard overall performance stage. Factors of Pestle evaluation with within the
context of Tesco company are defined below:
 Political issue: Political elements have robust have an effect on on Tesco
long-time period profitability and sustainability and profitability. Presence of
commercial company at worldwide stage complements the sensitivity of this
issue due to the fact each UK has their very non-public political situations that
created possibility similarly to hazard to commercial company. There are
diverse political elements consisting of political balance or instability,
converting hints, authorities interventions, hints and taxation hints that want to
be taken into consideration with the aid of using the Tesco for growing
powerful techniques and hints.
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 Economic elements: It may be very crucial for the Tesco to have a examine
and recognize all monetary elements consisting of labour marketplace
situations, forex fee, hobby fee and inflation similarly to saving fee.
Respective company analyses UK monetary state of affairs than increase
techniques as a end result that lead commercial company in the direction of
venture its dreams and goals in first-rate viable manner.
 Social elements: Business life-style have robust introduced on from diverse
social elements consisting of societal norms, values, tendencies, client
spending sample, shared ideals and strength structure(Wright and Schultz,
2018). Spending sample and disposable income of customers may be very
excessive in UK that permits Tesco to advantage aggressive advantages.
 Technological issue: Technological issue consists of technological
advancements, diffusion of era, innovation and different factors that assist
Tesco to take higher selections and differentiate company from awesome
competitors. UK is the precept studies and improvement UK that permits
Tesco to carry out its operations with standard overall performance and
monetary tool offers remarkable possibility to the company.
 Legal elements: There are diverse prison hints and hints which might be
delivered with the aid of using the authorities of UK that need to be complied
with the aid of using the commercial company to perform their operation in UK
with standard overall performance and effectiveness. Implementation or
assessment of those crook tips assist commercial company to keep away
from immoderate troubles and offers aggressive advantages.
Conclusion
From the above discussion it can be concluded that business practices are
those practices which has been used for developing business organization in
effective way. This makes business uplift their work in more effective terms which
lead over making goals and objectives achieved more effectively. In this report
various aspects is related to business like types of business organization and
companies. Then organizational structure and PESTLE analysis has been conducted
with example of Tesco.
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Reference
Books and journals
Bradley, T., 2020. Sustainable business practices: Prioritizing people and planet for
profit (Doctoral dissertation, University of Wyoming. Libraries).
Buckley, P.J., 2021. The role of history in international business: Evidence, research
practices, methods and theory. British Journal of Management, 32(3),
pp.797-811.
Cha, J., Kim, S.J. and Cichy, R.F., 2018. Adoption of sustainable business practices
in the private club industry from GMs and COOs’ perspectives. International
Journal of Hospitality Management, 68, pp.1-11.
Gujar, G.D. and Attarwala, A.A., 2020. Benefits of implementing sustainable
business practices for the Indian pharmaceutical industry. Asian Journal of
Management, 11(1), pp.26-28.
Imbrogiano, J.P. and Nichols, E., 2021. How to serve sustainability performance in
businesses? An appetizing recipe to link practices to performance in
business sustainability research. Business Strategy and the
Environment, 30(4), pp.1610-1622.
Islam, A. and Abd Wahab, S., 2021. The intervention of strategic innovation practices
in between regulations and sustainable business growth: a holistic
perspective for Malaysian SMEs. World Journal of Entrepreneurship,
Management and Sustainable Development.
Morales, A and et. al., 2021. Hybrid forms of business: Understanding the
development of indigenous social entrepreneurship practices. Journal of
Business Research, 124, pp.212-222.
Myers, A., 2018. Amazon Doesn't Have an Antitrust Problem: An Antitrust Analysis of
Amazon's Business Practices. Hous. J. Int'l L., 41, p.387.
Peralta, A., Carrillo‐Hermosilla, J. and Crecente, F., 2019. Sustainable business
model innovation and acceptance of its practices among Spanish
entrepreneurs. Corporate Social Responsibility and Environmental
Management, 26(5), pp.1119-1134.
Wright, S.A. and Schultz, A.E., 2018. The rising tide of artificial intelligence and
business automation: Developing an ethical framework. Business
Horizons, 61(6), pp.823-832.
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