BMP3002 Business in Practice: Report on Company Types and Factors

This report provides an analysis of various company types, ranging from micro-businesses to large enterprises, detailing their definitions, characteristics, and examples. It explores different business structures, including sole proprietorships, partnerships, public limited liability companies, and cooperative businesses. The report also examines the impact of external factors on businesses through a PESTLE analysis, focusing on political, economic, social, technological, legal, and environmental aspects, using Dyson as a case study. The analysis covers organizational structures like divisional and flat structures, highlighting their relevance to business operations and strategic decision-making. This document is available on Desklib, a platform offering a range of study tools and resources for students.

INDIVIDUAL
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SECTION 1......................................................................................................................................1
Understanding of different types of companies and how they work......................................1
SECTION 2......................................................................................................................................3
Explain different companies from sole traders to cooperatives and limited liability
partnerships.............................................................................................................................3
SECTION 3......................................................................................................................................4
Different business structure and how external factors affects businesses..............................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business in practice is defined as the core concept which is helpful for person in order to
get engaged in some working activities. This is associated with various strategies and tactics
which are helpful in attaining business objectives. In order to align with the same some code of
conducts are required to be used so that fuller efficiency within employees can be ensured using
various laws and legal actions (Pekkala, 2020). This report is associated with various types of
companies which are related with legal identity and helpful for the business to get different
research and gain more knowledge regarding different types of businesses. This is associated
with various factors that are related with business factors in appropriate manner.
MAIN BODY
SECTION 1
Understanding of different types of companies and how they work
Micro business
Definition: This type of business is categorised in small type and with the help of small
capital and resources this businesses can be initiated. These businesses are taking care of
individual and families so that they can enhance their survival in local market area.
Characteristics: These type of businesses are providing employment to less than 10
people. The maximum turnover within these organisation are around £ 632000.. Under these
businesses consumers are valued and at the same time these businesses are focused into meeting
of needs and requirements of their customers.
Example: The major example of micro business is boss brewing company and the
company is working in order to change perception of gender in beer industry.
Small business
Definition: These businesses are referred as such enterprises which are larger than micro
as they are associated with employee lesser than 50. These employees are contributing in
organisational success so that to gain long edge sustainability.
Characteristics: Key attribute within this venture is that these are working within limited
areas and limited locations so that to earn higher profits and revenues as well. These type of
businesses are not giving such huge amount of tax as these are having low profit margin.
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Example: The prominent example of these businesses are Cafe pod coffee co. is known
as best manufacturer of coffees for coffee lovers. This venture is associated with giving
innovative ideas to their clients and this is helpful in gaining profits.
Medium enterprise
Definition: This type of businesses are well managed in nature and giving employment
to 50-250 employees (Wilson, 2019). These enterprises have high capital and resources and due
to this decisions related to investments related can be taken. These businesses are able to get
appropriate investors so that higher profits can be earned.
Characteristics: Medium size enterprise are having characteristics that these businesses
are working in order to attain competitive edge into the market. Besides this these businesses are
having capabilities to take risk in order to enhance their existence within various geographical
locations.
Example: Example of these businesses are Captify as this business is specialised in
taking media decisions within UK.
Large business
Definition: These businesses are referred as such type of businesses which are linked with more
capital and high investment. These types of businesses are truly emphasised over meeting needs
and demands of their customers by providing innovative and creative goods. This large
organisations are working in order to gain competitiveness within industry within long term time
frame.
Characteristics: The major feature of these businesses are keeping more than 250 employees in
their organisation by giving them job opportunities. These businesses are earning higher profits
and revenue and as compared to small and medium businesses.
Example: Dyson is one of the biggest British technology company which was constituted in the
year of 1991 by James Dyson. The company is dealing with various electronic appliances such as
air dryer, hair dryer, vacuum cleaner and many more. Dyson is having more than 12000 working
employees in their organisation and these are providing revenue of near about £ 4.4 billion.
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SECTION 2
Explain different companies from sole traders to cooperatives and limited liability partnerships
Sole proprietorship
Meaning: This is defined as the aspect in which unincorporated businesses are executed
by a single person so that to bear risk and losses all alone (Barwitz and Maas, 2018). In this
manner sole trader is responsible to pay taxes and other liabilities.
Characteristics: Sole proprietorship is a business feature in which business owner is
having liability to pay all the debts and enjoy various profits earned. In this manner risk and
rewards are held with sole trader only so that they are not having any boundations to get enter
into any legal contract with some other party.
Example are plumbers, carpenters, etc.
Partnership limited
Meaning: These are referred as such legal formed business in which two or more parties
are associated and have liabilities to bear risk and reward in some pre-decided ration written
within partnership deed. In partnership deep all the information are written in clear manner so
that to avoid any situation of confusion.
Characteristics: The major characteristics of partnership is that is some pre-decided
ration profit and losses are being shared between parties which is prepared under lieu of
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partnership agreement. There is no separate entity and owners due to which business stricture is
quite simple which leads to attain business objectives.
Examples: The prominent example of partnership is Deciduous partners Ltd which is a
consultancy company.
Public limited liability
Meaning: This type of businesses are working under company law of UK. These types of
businesses are associated with dealing with share within market to general public so that legal
entity can be represented.
Characteristics: The major characteristics of LLP is related with involvement of
shareholders and dealing with business operations as accordance with code of conduct issues by
government.
Examples- Buberry, Tesco are working within this head of business in order to meet
needs of their customers and earn high profits.
Corporative business
Meaning- This type of business is mainly related to private companies which means it is
privately owned and control by an individual or group of people within any government
intervention in producing, selling and operating the products and services to customers (Appio,
Lima and Paroutis, 2019). They work for satisfying customers needs and requirements so that
they easily gain the competitive advantage within marketplace.
Characteristics- The key attribute of this type of business is that they done their operations
without the involvement of government as their main concern is to earn profits and revenues to
sustain in market for longer time period.
Examples- The example of corporate business is Dyson limited which is leading company in UK
mainly deals in electrical appliances such as air purifiers, vacuum cleaners, fans etc.
SECTION 3
Different business structure and how external factors affects businesses
Organisational structure
Organisational structure is defined as the business practice which is used within
the organisation in order to execute different activities in order to gain profits and revenues. This
is associated with rules and regulations so that information within organisation can be transferred
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in effective manner. There are various types of organisational structure such as flat, hierarchy
and divisional structure (KNAPKOVÁ and KREŠÁKOVÁ, 2018). These can be adopted by
businesses as accordance with their requirements and needs. Some of these organisation
structures are elaborated as under:
 Divisional structure: This is referred as the structure which is helpful in grouping of
several structure within divisions. In this each department within organisation is having
various resources and functions which are based on resources and functions. In terms of
Dyson the company is adopting such strategy so that to earn high profits and to manage
operations as well. This is also helpful in clearly understanding tasks within the
organisation so that productive results can be seen.
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Illustration 1: source: dyson organisation structure
 Flat structure: This is referred as such structure which is adopted by small companies or
start-ups. This type of structure is providing various layers and these are helpful in
providing effective way of gaining objectives.
External analysis
This is imperative for the business that to analyse external environment so that to manage
business operations in most effective manner. With the help of PESTLE analysis appropriate
strategy can be selected so that performance of the be business can be intensified. In the context
of Dyson PESTLE analysis is elaborated as under:
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 Political factor: This is the factor which is linked with political stability and
government stability as well. As UK is associated with providing such opportunities to
Dyson so that to enhance profitability. Due to Brexit various fluctuations in tax rate is
seen due to which business operations within business is seen.
 Economical factor: These factors are linked with purchasing power of people living in
the country so that may provide impact in positive manner to Dyson (Chapple and et. al.,
2020). On the other hand this factor is linked with inflation rate and this may negatively
impact the business of Dyson.
 Social factor: These factors are linked with needs and preferences of individual living
in the country. In UK people are highly inclined towards using of new technology and to
use new electronic appliances within day to day activities. This could be helpful for
Dyson in order to enhance their profit margin and to deliver the best services and
products to their customers.
 Technological factor: These are the factors which are associated with using of
advanced technology within the business. In this manner Dyson is adopting latest
technology for their customers so that to deliver products with emerging technology. This
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is going to impact the company in positive manner so that effective customer base can be
initiated.
 Legal factor: These factors are linked with using such laws and regulations in order to
provide welfare of employees and customers. In the context of Dyson the company is
following various rules and regulations so that to motivate their employees and provide
them such working by which the company may attract larger customer base.
 Environmental factor: These factors are linked with using such aspects by which
factors related to environment can be upkeep (Guerriero and Hopkins, 2018). In this way
Dyson is removing use of plastic bags within their appliances so that to gain higher
profits within the organisation. This is the reason that Dyson is able to manage higher
market prominence and market image as well.
CONCLUSION
From the above report this can be concluded that in business, environment is playing
significant role and in this manner overall business objectives can be attained. For an
organisation their market image and goodwill are two essential factors which are leading them in
earning growth opportunities. In order to gain sustainability and higher level capabilities within
an organisation there are various factors that are required to undertake so that to develop
appropriate aspects related to growth and sustainability. There are various businesses such as
small, micro, medium and large organisation which are providing job opportunities and
employment aspects within society. These structure are associated with sole proprietorship legal
partnership and many more. With the help of analysing several aspects related with growth and
development a business may acquire several growth opportunities. PESTLE analysis is helpful in
analysing external market aspects so that in smooth manner business operations can be managed.
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REFERENCES
Books and Journals
Appio, F.P., Lima, M. and Paroutis, S., 2019. Understanding Smart Cities: Innovation
ecosystems, technological advancements, and societal challenges. Technological
Forecasting and Social Change, 142, pp.1-14.
Barwitz, N. and Maas, P., 2018. Understanding the omnichannel customer journey:
Determinants of interaction choice. Journal of interactive marketing, 43, pp.116-133.
Chapple and et. al., 2020. Company Law: An Interactive Approach. John Wiley & Sons.
Guerriero, E. and Hopkins, J., 2018. Defined-Benefit Plans Remain a Planning Opportunity.
Journal of Financial Service Professionals, 72(4).
KNAPKOVÁ, M. and KREŠÁKOVÁ, V., 2018. LEGAL FORMS OF BUSINESS
COMPANIES IN SLOVAKIA AND GERMANY-COMPARATIVE ANALYSIS.
Social & Economic Revue, 16(1).
Pekkala, K., 2020. Managing the communicative organization: a qualitative analysis of
knowledge-intensive companies. Corporate Communications: An International
Journal.
Wilson, N., 2019. CHARACTERISTICS OF KNOWLEDGE MANAGEMENT IN
MULTINATIONAL COMPANIES. Knowledge International Journal, 35(5), pp.1667-
1672.
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