Types of Companies and Organizational Structures - Desklib

This report by Desklib discusses different types of companies and organizational structures. It covers micro, small, medium, and large businesses, as well as sole traders, partnerships, limited liability companies, and cooperatives. The report also explains how organizational structure affects business productivity and how PESTLE analysis affects organizational performance. The report includes examples of companies and characteristics of each type of business. Course code: BMP3002, Subject: Business in Practice, College/University: Not mentioned.

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
ID:
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Contents
Table of Contents
Introduction...................................................................................................................3
Section 1: .....................................................................................................................3
Discuss about different types of organisation ........................................................3
Section 2: .....................................................................................................................5
Different companies from sole traders to cooperatives and Limited Liability
Partnerships .............................................................................................................5
Section 3:......................................................................................................................6
Explain about different organisation structure and discuss how organisation
structure affect the business productivity ................................................................6
Describe how Pestle Analysis effect the organisation on its performance aspects. ...7
Conclusion....................................................................................................................8
Reference List ..............................................................................................................9
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Introduction
Business is an essential aspect to generate profitability that to contribute in economy
with having individual within legal entity which helps to focus in innovation and ideas to
gain large market share and growth as well (Chung, Jo and Lee, 2021). The business is an
entity which is form of commercial institution that helps to engage in better business
activities in sale off good and services. As per this following report it is been discussed about
relevant topic of different types of companies with better involving various entities such as
sole trade, partnership, limited companies etc.
Section 1:
Discuss about different types of organisation
In business there are different zone of types that determine size, scope and nature of
approaching business through medium, micro, macro, small and large company. Each
business follows their own way of doing the work (Brown, Bocken and Balkenende., 2020).
Through respect to evaluate characteristics and examples is being determined below:
Micro business: The business which knows as micro business that refers small business
with having few people. A better micro enterprise that usually operates within fewer then 10
people and presumes with small investment. Micro business can arrange their financial
planning from banking services while taking small amount of loan.
Characteristics:
 This business is handle by the single ownership and it not include any kind of
partnership which is being accessible.
 Micro business not use written way of communication and the aspect of better verbal
communication is considered more desirable. The operations are done at local level only because both employees and owner to
handle all type of activities in business.
For example: The United kingdom based Proviz is a micro organisation sector which was
founded through two brothers and offers cycling and accessories.
Small business:
This type of business is generally comes under private corporation. They are involved
with less staff members but more than micro companies. The turnover is around 10 millions,
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it provide different job opportunities and also helps to accomplish in economic growth in
terms of both national as well as local level.
Characteristics:
 It is used several natural resources instead of wasting equipments.
 This is involved immediate variations which is not at possible within large business
organisation.
 There is essential limited amount of investment and manpower. Small business has more contribution in country's economy rather than other business.
For example: Marshfield bakery is a small food, beverages and bakery products manufacture
business in United Kingdom.
Medium size business:
This business having 200-250 workers where staff and manger both handle the
business. These sectors are mainly managed in house professionals who are potential enough
to deal with business and maintain its structure.
Characteristics:
 Medium business involves both innovation and intervention of goods and services. It offers better quality certification services.
Example: - Lintebells Ltd is a UK based medium sized business. It is a leading pet
supplements company that provides nutritional products for all the pets.
Large Size Business:
It defines about an organisation that includes of huge amount of capital and
infrastructure. In order to grow in economy of country, large scale industries are predicted to
be critical (Molinos-Senante, Maziotis and Sala-Garrido, 2020). The large firm have more
than 1000-5000 or more than employees as well as their revenue is around $ 1 billions.
Characteristics:
 In large organisation there is require both verbal and written communication.
 It offers environment sustainability. These business earn more profit in comparison with other types of companies and the
reason for this that large venture is have high rate of debts in market because of
revenue measurement.
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Examples: Morrisons plc is Britain multinational retail business where they around
100-150 areas served their product and services as well as 80,000 employees with high
revenue earned.
Section 2:
Different companies from sole traders to cooperatives and Limited Liability Partnerships
Sole trader business: This business define structure which is owned by single or
individual person who bears all profit and loss. Sole properitor business does not suppose to
investment of high amount. In this owner has his or her full control with itself responsible to
handle risk and opportunities.
Characteristics:
 If the proprietor wants to shut down their enterprise where they can do it any point of
time and don't need to get engaged with any sort of legal aspect. It majorly depends on owner of which type of business like partnership like limited,
general and many more.
For Example: Teresa smith bookkeeping finance service base company in United Kingdom.
Partnership:
In this type of business organisation where a formal legal relationship is implemented within
two or more person come together for sharing equal profit and loss while opening business.
Characteristics:
 It is essential to taking approval from other partners who are eligible to join in
business for discussion purpose. An agreement is done with both written as well as verbal form.
For example: Mark and Spencer are partner where they opened firm called Marks and
Spencer in United kingdom . Their firm also called partnership firm.
Limited liability business:
According to this business is form of private organisation where it is type of business
structure that acquire taxation and many private firms are consider as sole trader and
partnership. It is consider as separate establishment which can everything consist in business.
Characteristics:
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 It is easily handle because it is well dependent on business associates weather they
want to be part of their company or not.
Example: Associated British foods which is type of private business which is situated in
United kingdom.
Public limited liability business:
It define a business whose ownership is divided into the form of shares that are able in
context of stock exchange.
Characteristics: In Public limited company all share can be easily transferred within no restriction
which is involved.
Example: Aviva plc is British public limited insurance company.
Cooperative:
It is defined with separate organisation which is better guided through many officers where it
is involved with three types of cooperation and these are considered to be non profitable
organisation
Section 3:
Explain about different organisation structure and discuss how organisation structure
affect the business productivity
Organisation structure is comprise about systematic and maintaining relationship with
better communication between various parts and departments of the business. It determines
about the better chain command where it scrutinise different level of organisation (Sarkisyan
and Tikhonova, 2021). Through effective organisation it distribute each roles and
responsibilities as per department. In following there are different organisation structure
where it describe about specific Morrison company are elaborate below: Functional structure: According to this structure organisation which is having
elements are better divided and attached and provide proper guidance to individual to
each work and responsibility. In organisation the formation of smaller groups is to
better describe to make group in certain department within better form of skills and
knowledge where better perform business effectively.
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 Divisional structure: This structure is spread about specific in business activities that
across different branches where specific market, product or having effective customer
group activity. On the basis of divisional base structure is specify about guidline of
product line (Jafari and Othman Soleiman., 2020). This would be suitable to firm who
changes their structure and divisional would help to better build team work for
produce similar way of product within effective manner.
Evaluation:
From the above organisation structure explanation it depicts that Morrisons company
follows Functional structure it is because their managers and staff members are work in
smaller group to handle operation and management work aspects. For that successful
accomplishment they both contribute their skills and knowledge to handle business
capabilities. In functional structure of Morrisons company, manager use to provide the
instruction to employees from that point of view it impacts on employees productivity as
positive manner where they better gain competitive advantages.
Describe how Pestle Analysis effect the organisation on its
performance aspects.
Pestle Analysis: In this model framework define about external forces which create impact
on organisation performance, the factors of pestle analysis that are responsible is such as
Political, Environment, Social, technological, environment and legal. To conduct in following
pestle analysis for Morrisons British based venture can measure its challenges and
opportunities for Morrisons company expansion are;
Political factor: This factor comprise about corporate governance rules and
regulation in retail business. In this Morrisons company support through government and also
can grab many opportunities through political stability and government incentives that better
leads to financial performance. The factor involves are the taxation policies, trade regulation,
political stability better trade policies.
Economical: It involves certain factor which measure to mapped about specific
country and this factor further concerned better economic growth changes, employment rate,
minimum wages rates, inflation of economy (Osunnuga., 2020). These are the essential
aspect which is must determine by Morrisons while trading in competitive market. For
Morrisons in United Kingdom based organisation and business is depend upon on economic
growth but on the impact of certain uncertainty business could not gain more competitive
advantages for effective economy stability.
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Social: According to this certain level of social condition where the customer can be
measure by company in form of demographic factor such as age, gender, income basis etc.
On the basis of Morrisons company it apply for better strategies to target the market for
ensuring benefit for facilitates health and hygienic base product with low price quality where
attract the customer in demand.
Technology: This is adaption on which it create better changes technologies enhance
effectively that implies to increase the product automation by using advanced level of
technology. The United Kingdom is having better scope of Artificial intelligence type of
resources can utilise by Morrisons company to increase their manpower productivity in better
form as well as attain more competitive advantages (Venter and Akerman, 2021). The
technology would play an important role in organisation where it would increase the business
expansion.
Environmental: In this Morrison would get positive impact on their brand image in
competitive marketplace if they would follow business ethics and corporate social
responsibilities. This practise would help to increase the better as well as quality of raw
material for production motive in retail base product and services.
Legal factor: It has an impact on regulatory systems, where the authorities frame
laws in which Morrisons to better operate in business (Ryan, Shaban and St John, 2020). In
perspective of Morrisons company has the better opportunity of energy consumption
regulation with legal constraints within better human resource management system.
Conclusion
It is been inferred from above report is summarise that there are different type of
organisation where they have its own size and scope as per the business performance in
market is done. Moreover, Pestle analysis to explain about challenges and opportunities
influence the business on the basis of its competitive advantages mapped. Organisation
structure describe on the basis of retail business and functional structure helps to make
dynamic changes which enhance better flexibility.
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Reference List
Books and Journals
Brown, P., Bocken, N. and Balkenende, R., 2020. How do companies collaborate for circular
oriented innovation?. Sustainability, 12(4), p.1648.
Chung, W.Y., Jo, Y. and Lee, D., 2021. Where should ICT startup companies be established?
Efficiency comparison between cluster types. Telematics and Informatics, 56,
p.101482.
Jafari, H. and Othman Soleiman, K., 2020. Assessment of effective environmental factors in
oil and gas industry policies using PESTLE & SWOT analysis (case study: Kurdistan,
Iraq). Environmental Sciences, 18(3), pp.134-151.
Jenkins, F. and Jones, R., 2021. Allied Health Professions management and organisation:
what structure?. In Managing and Leading in the Allied Health Professions (pp. 45-
69). Routledge.
Molinos-Senante, M., Maziotis, A. and Sala-Garrido, R., 2020. Evaluating trends in the
performance of Chilean water companies: impact of quality of service and
environmental variables. Environmental science and pollution research, 27(12),
pp.13155-13165.
Osunnuga, O., 2020. A survey of the management, organisation, structure, content and
columns of the contemporary Yorùbá newspaper. In African Language Media (pp.
156-166). Routledge.
Ryan, C., Shaban, R. and St John, W., 2020. Working in a Community-Based Organisation.
In Community Nursing Practice (pp. 309-330). Routledge.
Sarkisyan, Z. and Tikhonova, M., 2021. Individualization of Approaches in Scenarios of
Survival and Development for Companies in the Digital Environment. In Technology
and Business Strategy (pp. 113-126). Palgrave Macmillan, Cham.
Thomas, P.J.M., Sandwell, P., Williamson, S.J. and Harper, P.W., 2021. A PESTLE analysis
of solar home systems in refugee camps in Rwanda. Renewable and Sustainable
Energy Reviews, 143, p.110872.
Venter, C. and Akerman, M.P., 2021. Pre-organisation of ligand donor sets modulates the
supramolecular structure of bis (pyridyl–imine) silver (I) chelates. CrystEngComm,
23(5), pp.1294-1304.
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