Types of Companies and Organizational Structures: A Study on Jaguar Land Rover

This study explores the various types of companies in the UK, including micro, small, medium, and large-scale businesses, and their respective characteristics. It also delves into different business structures, such as partnerships, sole proprietorships, and limited liability companies. The study then focuses on Jaguar Land Rover and its organizational structure, including functional and divisional structures. Finally, a PESTLE analysis is conducted to identify the impact of external factors on the company's performance.

BMP3002
Business in Practice
Assessment 1
Types of Companies
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INTRODUCTION
The foundations of companies are generally based on specific idea which are
innovative by the entrepreneurs in order to make their business successful at the entire
marketplace. There is involvement of different types of companies in United Kingdom
such as micro, small, medium & large scale. All these types of companies are running
by the entrepreneurs with an appropriate legal structure. Through specific legal
structure, companies can effectively maintain all operations & take regular course of
actions. The main aim of this project is to determine the various kinds of companies &
legal structure which are considering by the UK government. This project will discuss
about organizational structure & apply PESTLE analysis on Jaguar Land Rover which is
famous Automotive PLC that manufacturing luxurious vehicles. This company
established in 2013 and operating business globally.
MAINBODY
Section 1 : Different types of companies & how they work
In United Kingdom, various kind of companies running by people with a specific
business plans, ideas & purpose. Every type of Companies established with the specific
motive, size, scale & operations so that owner can properly manage all activities in an
appropriate manner. All type of companies provides their specific contribution in the
growth of the country so that they can effectively improve the living standard of the
communities in society people (Alfouzan, 2020). The explanation about different types
of company and their characteristics are discussed below -
 Micro Business - This kind of businesses are small scale & size but the motive
of these companies are more effective because entrepreneur open their
organizations with specific business idea which can help us to enhance the
living of the local communities. This type of business is required less amount of
money for establishment & less than 10 people can work effectively. The annual
turnover rate contain as £2 million. Micro businesses are considered some

specific kind of characteristics which demonstrate them from the other
businesses. Some specific characteristics such as low production rate, low
participation of workers, low revenues & profitability, cover limited areas, sole
proprietorship ownership & taxes. Entrepreneurs are open their business with
their innovative ideas so that they can provide their contribution for the welfare of
the people (Bertoni, Le Nadant and Perdreau, 2020).
 Small Businesses - These types of companies are mainly privately owned and
control by individual and two or more people. These companies mainly adopt
specific ownership structure such as partnership, sole proprietorship & Limited
company. The main purpose of small businesses is to target rural area people so
that they can effectively evolve their living standard & live their life in an
appropriate way. Basically small businesses provide employment less than 50
candidates and annual turnover considered under £10 million. Few
characteristics contained by the small businesses such as low productivity level,
target limited population, low level of manufacturing and working operations
(Bradley, 2020).
 Medium Businesses - Basically medium businesses are maintaining by most
of the people and required more finance, resources and equipment as compared
to this small firms. The prime concern of medium businesses is to target local
people and provide them appropriate employment opportunities so that they can
effectively improve their lifestyle. Medium businesses give employment more
than 250 people & maintain annual turnover under £50 million. Medium sized
companies maintain some characteristics like average production, more
productivity level, target more people & focus on business operations.
 Large Businesses - large companies required use finance, human resource,
tools and techniques & other resources. The prime purpose of large companies
is to produce innovative goods so that their customers can utilize their products
make their life more suitable (Brown, Bocken and Balkenende, 2020). Large
companies also give direct involvement in the development of country's economy
and also generate more foreign currencies which can make economy more

strong. Large companies providing employment more than 250 people and
annual turnover containing more than £50 million. There is involvement of few
characteristics such as large operations, International applicability, large level of
team, high productivity, more production & profit maximization.
Section 2 : Different companies from sole traders to cooperatives and Limited
Liability Partnerships.
The description related to the different types of business structure are given below -
 Partnership - This business structure is mainly control over the a single person
or more than two people who are generally work collectively in order to maintain
one particular organization. Partners are liable to share equal profit, loss take
appropriate decisions collectively in order to maintain each and every operations
of the company. Partners are engaged with organizational activities and lead the
whole company without any more interference of the government. Where is
involvement of some characteristics like sharing same profit, proper agreement,
report system controlling operations, privately owned & non-transferability (Fozer
and et. al., 2017).
 Sole Trader Business - This ownership structure is generally adopted by most
of the entrepreneurs because it is very convenient to register and operate so that
owner can effectively run their business operations. In this structure, owners are
liable to pay taxes & follow all the legal procedures in an appropriate way so that
they can obtain the trust level of the people. Just like partnership structure, the
involvements of government it is less in the business operations so that owners
are the one who are regulate the chain of command. Few characteristics
considered by this business structure such as freedom to maintain proper chain
of command, take appropriate decision, strategic planning and control, legal
agreements, soul management & unlimited liability. Limited Liability Business - The main motive of LLB is to maintain each and
every business activities privately. This legal structure perform their tasks same
as partnership firms. In LLB legal structure, more than two people are involved

who are signed proper agreement and also prepare specific self assessment
report so that they can show their contribution in the business activities. Owners
are liable to share equal profit and also pay taxes. Few characteristics
determined by LLB such as financial privacy, transferable share, limited liability,
controllable resources (Gillam and Cosford, 2021).
 Public Limited Liability Business - This legal structure is mainly formulated for
the profit & divided into specific share which are publicly tradable on stock
exchange. Limited liability, transferable share, involvement of more employees,
high cost & more resources are considered as the specific characteristics of this
legal structure.
 Cooperative - This business structure is also considered as the " Co - Op"
and continuously controlling by its participate members. All the members are
maintained their goods and services in a cooperative manager so that they can
make a good deal with the customers. Voluntary membership, Limited interest on
capital, democratic monitoring & open membership r are the main characteristics
of this structure (Kao,Hodgkinson and Jaafar, 2019).
Section 3: Different business structures and external factors affecting business
Identification of different organizational structures & explaining how does organizational
structure affect business productivity
Organizational structure is work as a strategically tool which can help you to manage
all the business activities in a systematic manner so that all the employees can regulate
their day-to-day operation in a proper discipline. Organizational structure is the ongoing
technique which can useful to provide proper direction to each and every employees so
that they can perform their job effectively and also maintain good communication
(Miśkiewicz, 2017).HR manager of Jaguar Land Rover maintain proper organizational
structure so that company can effectively improve their productivity & performance level.
 Functional Structure - This structure is also worked similar as the hierarchical
organizational structure. The prime motive of functional structure is to maintain

all the operation in a systematic way and flow of information regulate upward to
downward. This organization structure contains various layers and top
management has a right to take decisions for the development of their
employees & their working operations. In this structure, employees can
effectively communicate with each other and also work collectively in a team.
This structure is spread healthy working environment so that all the employees
can work effectively without any pressure so that they can effectively improve
their performance & also productivity level. Functional organizational structure
can maintain specific accountability & adaptability so that all the staff members
can deliver appropriate values in order to obtain specific organizational
objectives. In this structure, the role of managers and leaders is more because
they are liable to show them proper right direction which can help full for the
employees to improve their effectiveness towards their working operations
(Palmer and et. al., 2018).
 Divisional Structure - This structure is maintained their activities through
appropriate division & it is generalized that each division maintain specific
operation and resources so that company can appropriately support their staff
members and maintained their products as for the geographical areas. The
purpose of division is to maintain parallel division & also responsible to enhance
customer satisfaction. Every division departments can equipped their own
resources and elements which make them independent about their divisional
tasks.
As per the discussion related to the both organizational structure, it can be
generalized that it for the Jaguar Land Rover, function organizational structure
considered as the more appropriate structure in order to maintain their working task. MI
this company contain vertical functional structure that maintain a specific role which
totally based on be predominantly on the specific functions (Popova, Ivory and Uhlin,
2019).

How different external factors affect the performance of a business – PESTLE Analysis
It is mandatory for the companies to understand that how different external factors
provide impact on the performance of the companies. With the help of PESTLE Analysis
Company can appropriately identify the impact of various external factors on their
business operations. Jaguar Land Rover conducts this analysis in order to to generalize
the impact of external factors on their performance. The description about PESTEL
analysis of this factors are given below -
 Political Factors - This factor is totally depends upon the trade regulations,
policies, procedures, foreign trade policies. It is mandatory for the Jaguar Land
Rover to maintain all the political consideration in order to reduce the impact of
political interference in their working operations. Due to Brexit, company also so
expensive in various fluctuations in their marketing activities so now company is
maintaining proper political stability in their working activities (Thorlakson, de
Zegher and Lambin, 2018).
 Economical Factors - Some specific activities are involved in these factors
such as exchange rate, interest rate, minimum wages, economical uncertainty,
inflation & recession. Due to pandemic, Jaguar Land Rover experiencing various
adverse circumstances in their business operations so now company is focusing
on adopting competitive pricing policies so that company can take more concern
of their customers in order to improve the productivity level of the company.
 Social Factors - purchasing power of the customer, buying behavior of the
people, socio cultural activities, demographical & geographical segmentation are
considered by the company. Jaguar Land Rover can conduct small market
research in order to generalize the exact preference of people so that company
can make some changes in their production process in order to fulfill the
expectations of the customers all around the world (Venturelli and et. al., 2019).

 Technological Factors - Technological changes, network problem, cyber
connection, internet connectivity & many other technical factors are considered
by the company. Jaguar Land Rover is a massive organization which operating
their business across the whole globe. Company conducting their marketing
activities via online method so that company can effectively gain more attention
of their customers. Company also adopt high advancement of technologies and
add latest features as for the convenient level of the customers
 Legal Factors - This factor is generally concerned about the legal procedure,
policies, lawful activities & legislation. Jaguar Land Rover maintain all the legal
consideration so that company can effectively perform their business activities in
foreign countries so that company can effectively deal with the each and every
countries legal structures in a effective way.
 Environmental Factors - The prime focus of this factor is on the environment of
the country & mainly considered some specific activities like climate change,
pollution & population level of the country. Jaguar Land Rover is constantly try to
to manage the carbon emission level so that company can effectively maintain
proper environmental sustainability rate via manufacturing specific products
which contain carbon emission level.
Conclusion
On the basis of this project, it can be concluded that there are various types of
companies are considered by the UK Government so that they can effectively make
more profit and generate more foreign currencies in order to improve their economic
level. This project discussed different types of companies that mainly established with a
specific scale, size and also business structure. This project also discussed various
kinds of business structures like partnership firm, sole proprietorship, LLB, Limited
companies and many more. This project determined specific organizational structure
and identify the importance of functional & divisional organizational structure. Through
PESTLE analysis, company can effectively determine the effect of external
environmental factors which can help full to regulate all the business operations
appropriately.