Types of Companies and Business Structures: A Study of Business Practices with ASDA as an Example

This report discusses different types of companies and business structures, including micro, small, medium, and large businesses, sole traders, partnerships, limited liability businesses, public limited liability businesses, and cooperatives. It also explores how organizational structure affects business productivity and how external factors, such as political, economic, social, technological, legal, and environmental factors, impact business performance through PESTLE analysis. The report uses ASDA as an example to illustrate these concepts.

BSc (Hons) Business
Management with Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Table of Contents
Introduction...................................................................................................................4
MAIN BODY..................................................................................................................4
Section 1: Different types of companies and how they work ..................................4
Section 2: Different companies from sole traders to cooperatives and Limited
Liability Partnerships ..............................................................................................4
Section 3: Different business structures and external factors affecting business....6
3.1 Identification of different organizational structures and explaining how does
organisational structure affect business productivity...............................................6
3.2 How different external factors affect the performance of a business – PESTLE
Analysis ...................................................................................................................7
Conclusion....................................................................................................................9
Reference...................................................................................................................10
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Introduction
Business practices are those aspects which is used for making business
organization operate with its various activities. These practices leads towards
development of strong structure within business organization. It deals with wider
scope which paves way towards business success. The example taken within the
report is ASDA which is an retail organization. Also, the report covers about different
types of business organization with business structure and PESTLE analysis.
MAIN BODY
Section 1: Different types of companies and how they work
 Micro business: These are those business entities which works within
small area and has less employees which is not more then 10(Raut and et. Al,
2019). These organizations makes business operations conducted on lower
level.
 Small business: They are small business within which less employees
are involved and operates with very less capital. Under these organizations
funds are less.
 Medium size business: These are medium size organizations which
work within business that operates with more then 100 employees. These
organization has turnover one lakh or more.
 Large size business: The organization is based upon working over
various aspects that contains more than 1000 employees. Turnover of the
organization is more then 50 lakh.
Section 2: Different companies from sole traders to
cooperatives and Limited Liability Partnerships
 Sole trader business: They are considered due to the fact the
businesses which has been used most commonly to execute industrial
agency(Persis and et. al. 2021). Under such businesses fine single owner
exists and holds obligation of industrial agency sports activities. The owner of
industrial agency is known as as sole owner. In this single owner is
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responsible over act and conduct. In this fine INHRC range is wanted to be
generated for registration and speak to is used fine to start the industrial
agency. Management of these employer is completed with the resource of the
use of the owners himself and is chargeable for all sports activities internal
industrial agency. Funding of such employer is completed with the resource of
the use of personal own family people and friends. These employer makes
profits earned stored with the resource of the use of the owner which makes
profits era more strong. Formation device can be very smooth which makes
tons much less time fed on for its establishment. At time fee variety is not
been prepared which makes industrial agency employer close. These
employer can face heavy loss as all sports activities is dealt with with the
resource of the use of one person.
 Partnership: These businesses is been customary with the help of human
beings come together with now no longer purpose to earn profits. In this all
element based completely over such industrial agency is been protected that
is dangers, costs, advantages and obligation over running
employer(Nudurupati, Garengo and Bititci, 2021). Partnership is of sorts that
is ultra-modern and limited. The device of registration fine requires INHRC
range. These employer is been managed with the resource of the use of
partners and all art work is completed with the resource of the use of them
fine. Funding is been provided via personal investment completed with the
resource of the use of partners. Less formal with fewer jail obligations. In this
burden is been shared with the resource of the use of companion themselves.
The employer does now not have any jail status. There is limited get
admission to to capital on account that fine partners installation for it.
 Limited liability business: This kinds of business entities is based over
interest that has been formed as per investment done by partners of business
organization.
 Public limited liability business: They are those form of employer
which has Public Limited in its surrender and may sell or percent debentures
to modern public(Muhmad and Muhamad, 2021). In this one-of-a-type
elements is protected that is based completely over making employer robust
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in nature. In this digital signature of all owners, people of memorandum of
association and distinct importation documents of required to be amassed.
Public limited corporations are also required to have as a minimum directors
and a company secretary. Managements is completed with the resource of
the use of its owners and stakeholders of industrial agency employer. Funding
is completed via government institutions, health programs, community
services, restoration programs, public provider programs, or maybe
environmental programs. Public corporations can formulate and put into effect
guidelines which promote public welfare. In a public business enterprise red-
tapism and bureaucratic delays are minimized to a great extent. It enjoys
immunity from parliamentary inquiry into its day by day functioning. Public
business enterprise incurs losses, the government gives subsidies to make
ideal the loss.
 Cooperative: These businesses requires all forms of documents amassed
with the resource of the use of the employer people and the it's miles been
submitted to Companies House over proper detail of an employer. These
employer manipulate is completed with the resource of the use of directors
appointed to run a industrial agency(Lathabhavan, 2021). Funding is been
prepared with the help of economic group loans and debentures. In this
employer enjoys right of succession which makes it separate entity from its
owners. Business privacy is one of the advantages of private limited
company. Formation device is time consuming and coins include is big which
makes it very complexed in nature. Divided ownership- one of the now no
longer dangers of private limited 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
Organisational shape is described as the gathering of various values,
practices, expectancies and strategies that offer steerage and facts to all crew
individuals and make certain that they carry out their decided mission with
performance and effectiveness(Kizildag and et. a l., 2019). Along with that, it
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constitutes shared ideals that signify an organization. The essential reasserts
of organizational subculture include traits of human beings inside organizations,
organisational shape, organizational ethics, and assets rights in step with personnel.
It is essential for the corporation to hold effective, supportive commercial enterprise
shape that motivates personnel to maintain with corporation.
Positive commercial enterprise surroundings and shape lead commercial
enterprise toward increase and fulfilment as it draws pinnacle expertise toward
corporation and maintain them present skilled, proficient and skilled body of workers
member with corporation, enhance worker productiveness, their engagement,
process delight and loyalty toward corporation(Hizarci-Payne and Kirkulak-Uludag,
2018). ASDA is the corporation that adopts supportive and advantageous
commercial enterprise shape that differentiate corporation in market from different
competition that offers aggressive benefits to corporation. ASDA ensues personnel
health and create unique branch that cope with their quarries and remedy issues
which can be confronted through them in sure situation. It complements personnel
motivational stage and maintain them with corporation for longer length of time. In
advantageous commercial enterprise surroundings, worker sense and influenced
that immediately influences on their overall performance and productiveness stage in
addition to complements their contribution stage toward reaching organisational
dreams and targets in unique length of time. ASDA organisational shape is pretty
precise due to the fact it's far crew orientated shape that foster innovation, having
choice to serve customers with first-rate merchandise and significant answers and
emphasis on private increase in addition to empowerment of personnel that
encourage them to carry out with more performance and effectiveness. respective
corporation additionally fashioned worker appreciation committee that pay interest on
corporation’s personnel welfare.
3.2 How different external factors affect the performance of a
business – PESTLE Analysis
PESTLE analysis this is based over tools which has been used in order to
develop understanding about various kinds of elements that impacts business
directly(Dunn and Jensen, 2019). PESTLE analysis makes business performance
improved by making them cop up with new policies of government, economic
conditions, needs of customers, technological advancement, legislation and
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environment understanding. It makes organization like ASDA understand about
various conditions existing within market that makes stability created.
 Political elements Political elements entails the political balance, reforms,
exchange restrictions, tax guidelines, environmental rules and tariffs. For
ASDA political elements affected as an risk and possibility both. ASDA has an
possibility to enlarge their commercial enterprise the world over it came about
because of growing in internation exchange agreements. Government has
launched various programmes which has made ASDA use aids in order to
circulate its products more effectively.
 Economical elements Economical elements immediately influences the
organisation on long time foundation which entails fee of living,
unemployment, credit score availability, running hours, monetary boom and
decline, minimal salary, exchange, inflation and salary rates. Developed
nations sluggish however solid monetary boom is a bonus to ASDA, it could
develop and boom balance of ASDA. Due to slowdown in Chinese financial
system it's miles turning into a risk to ASDA's as Chinese marketplace is most
important contributor to the ASDA revenues.
 Social elements Social elements entails fitness consciousness, cultural
norms, populace boom rate, expectations, fitness, age distribution, profession
attitudes and safety(DiBella and et. al., 2022). Concern of fitness is growing
everywhere in the global that's main to keep away from junk and related to
wholesome and natural meals in keeping with the necessities of the clients, it
could grow to be a risk to ASDA's.
 Technological elements Technological elements entails the automation,
studies and improvement which influences the operations of the organization
in marketplace. ASDA's has brought new self desk scanners within the seats
to order, which reduces the purchaser attempt and does now no longer
required to face in counter. ASDA's is increasing their sales thru cell with the
aid of using serving clients on-line and order and get rid of facilities. ASDA's
also can boom the productiveness of place with the aid of using growing the
commercial enterprise automation.
 Legal elements Legal elements entails the resources, get entry to of
materials, taxations, import/exports and adjustments to legal guidelines which
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can be affecting employment. ASDA is having risk of minimal wages which
will increase the fee and decreases the general profitability of the
organization. As ASDA is a multinational organization dealing in numerous
nations and has to comply with the legal guidelines and guidelines
differentiated with every country, which from time to time grow to be tough
and result in mismanagement.
 Environmental elements Environmental elements entails environmental
offsets, weather, geographical and weather adjustments. ASDA is getting
huge purchaser base with the aid of using following all ecological sustainable
operations(Denney, 2018). ASDA's follows all of the environmental and
ecological pleasant measures for maintaining within the marketplace. It have
to be principal obligation of a commercial enterprise to comply with
environmental coverage of presidency to moral and sustainable commercial
enterprise.
Conclusion
From the above dialogue it may be concluded that enterprise practices are the
ones practices which has been used for growing enterprise agency in powerful way.
This makes enterprise uplift their paintings in greater powerful phrases which lead
over making desires and goals accomplished greater effectively. In this record
diverse components is associated with enterprise like varieties of enterprise agency
and companies. Then organizational shape and PESTLE evaluation has been
conducted with instance of ASDA.
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Reference
Books and journals
Denney, V.P., 2018. Achieving business performance through ethical business
practices. Global Journal of Business Disciplines, 2(1), pp.15-45.
DiBella, J and et. al., 2022. Exploring the potential of SMEs to build individual,
organizational, and community resilience through sustainability‐oriented
business practices. Business Strategy and the Environment.
Dunn, S.L. and Jensen, J.D., 2019. Buddhism and Buddhist Business
Practices. International Journal of Business Administration, 10(2), pp.115-
128.
Hizarci-Payne, A.K. and Kirkulak-Uludag, B., 2018. Sustainable business practices
of Turkish companies listed on the Borsa Istanbul sustainability index.
In Sustainable Business Models (pp. 329-344). Springer, Cham.
Kizildag, M and et. a l., 2019. Blockchain: A paradigm shift in business
practices. International Journal of Contemporary Hospitality Management.
Lathabhavan, R., 2021. Sustainable business practices and challenges in Asia: a
systematic review. International Journal of Organizational Analysis
Muhmad, S.N. and Muhamad, R., 2021. Sustainable business practices and financial
performance during pre-and post-SDG adoption periods: A systematic
review. Journal of Sustainable Finance & Investment, 11(4), pp.291-309.
Nudurupati, S.S., Garengo, P. and Bititci, U.S., 2021. Impact of the changing
business environment on performance measurement and management
practices. International Journal of Production Economics, 232, p.107942.
Persis, D.J and et. al. 2021. Modelling and analysing the impact of Circular
Economy; Internet of Things and ethical business practices in the VUCA
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Raut, R.D and et. al, 2019. Linking big data analytics and operational sustainability
practices for sustainable business management. Journal of cleaner
production, 224, pp.10-24.
Steffen, A. and Doppler, S., 2019. Building consumer trust and satisfaction through
sustainable business practices with organic supermarkets: The case of
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Alnatura. In Case Studies in Food Retailing and Distribution (pp. 205-228).
Woodhead Publishing.
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