Different Types of Companies and Their Structures - Desklib

This report covers different types of companies and their structures, including micro, small, medium, and large businesses. It also explains the different types of companies from sole traders to cooperatives and limited liability partnerships. Additionally, it discusses the impact of external factors on business performance through PESTLE analysis. The subject is BSc (Hons) Business Management with Foundation, and the course code is BMP3002 for Business in Practice. Get study material and solved assignments on Desklib.

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
ID:
Contents
Introduction 2
0

Section 1: Different types of companies and how they work
2-3
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships 3-4
Section 3: Different businesses structures and internal factors affecting
business 4-6
Conclusion 6
Reference List 7
1

Introduction
Implementation of various recently developed technologies and methods of
performing the business task in the daily routine make the processes easy E and complete the
business operations in an effective and efficient manner. Some of business undertakings also
comprise the establishment of several databases for best implementation for launching the
management structure for making better the confinement of workforce. It has been found at
effective business practices is possible only because of the affective skills and experience of
human. This report deals with the different kinds of companies and how they work. Along
with this it also covers but several companies from solar traders to Cooperative and limited
liability partnerships. Furthermore it also shows the several forms of organisation and how
the external factors of a business organisation implies impact on the final result of firm.
Section 1: Different types of companies and how they work
On the basis of the scale of operations, number of employees and annual turnover, companies
is divided in the several types which are given below:
Micro business:
It refers to the business in which less number of employees work and the turnover of
the organisation is also less. It has been found required to have the annual business of not
more than £2 million. Such type of business organisations perform their operations at a very
tiny area with the motive of earning small gain for endurance of life. Micro businesses are
playing a major part in the economy of United Kingdom.
Small business:
Privately owned Corporation is the another name of small business. This business
organisation involve more than 10 employees in operations but they are always less than 50.
The annual turnover of small business always lies between the £2 million and £10 million.
Major leaders business organisations have been handled and owned by a single person.
Restaurant and small cafe can be the example of such business. Large amount of funds are
needed to start this business as contrast to the micro business.
Medium size business:
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Operations of small business grown and the size of business organisation develop, it
set off a medium sized business which comprise the participation of more than 50 employees
but less than 250 employees. Huge amount of capital is required to start such type of business
organisation. It can be said at medium size business is the bridges which create the
connection between the small business and large business. The yearly business of such
organisations have found as more than £10 million to £50 million.
Large size business:
It refers to those business which worked on a very huge level with the involvement
over more than 250 employees and having turnover more than £50 million. Such type of a
business organisation can only be start with having a proper source of capital. For the purpose
of arranging the sufficient funds, this company issues their shares to the general public. It
result in the collection of huge amount of capital for performing the business operations.
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships
Sole trader business:
Solo trader business can be defined as the business of a single person because this
business is owned and managed by a single person who is responsible for performing all the
task and functions related to the business. Solo trader aur solo proprietor is a person who
perform all the functions of a sole trader business was topper such type of business is do not
have any separate legal entity. Example of solar trade business is nearby grocery store.
Another name of such type of business is one man business.
Partnership:
Partnership is defined as the agreement among the two or more than two people or
party is in order to managing and operating the business along with sharing their profits.
Agreement between the partners have been used for managing a particular occupation by
giving out control and power with the motive of sharing the profits and losses in the decided
ratio. There are several kinds of partnership which cover limited liability partnership, a
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limited partnership, general partnership and many more. The members of partnership
business are liable to reimburse the limited liability.
Limited liability business:
It refers to a kind of business under which the owners or partners of firm are not oneself
responsible for reimburse the liability of organization. The quality of such business
organization is the combination of both solo trade along with the partnership. In simple words
it can be said that the members of this business are responsible for paying the limited liability
of their share.
Public limited liability business:
It refers to the those business organisation so which are registered under the London
Stock Exchange. It is necessary for such organisations to follow all the rules and regulations
which are made by the government. This type of business organizations also issues the share
for the purpose of a collecting the finance of capital from public. In addition to this, they are
cramped to have at least seven members in the organization. British petroleum company is
the best example of public limited liability company.
Cooperative:
It is the another type of business organisation under which a couple of people collect
together, make a group and then work as a society. The belonging of cooperative society
always worked as voluntary. Corporative Societies Act has been made to develop such
society and to solve any issue related to it.
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
Organizational structure of different types which are explained below:
Functional structure: It is defined as the most common organisational structure under which
of the complete organisation is divided into to several small groups on the basis of the
specialized function such as IT, HR, Finance, marketing, operations and many more and. This
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structure is stated that the employees of similar skills and specialization are keep together.
When the employees of same skills work together on a similar or common objective, it
consequence can be observed on the improvement in the productivity of organisation. It
always result in the improvement in the productivity of organisation because all the
employees have relevant and special skills which help the organisation in completing the task
in an effectual and well organized way. Reduction in the cost of operations is also found
under this is structure. The complete business unit is divided into several functions and
departments which leads to the reduction of probability of doing alike work by numerous
divisions.
Divisional Structure: This structure can be defined as framework under which the entire
organisation is classified into several categories and each classification have their own
functional departments. Each and every division of organisation have all the required capital
or assets and functions in order to supporting the product alignment which include Marketing
department HR department finance department. This type of organisational structure is good
for the organisations having more than one branch. It is necessary to have a high degree of
specialisation under this is structure because the business organisation is able to increase the
productivity. For the same purpose they are required to divide the roles and responsibilities of
each and every division and the employees are required to complete all the task which are
divided. Employees who are working in the division can get more chance for growing skills.
3.2 How different external factors affect the performance of a business –
PESTLE Analysis
PESTLE is a tool of marketing which is used by the organisation with the motive of knowing
about the external factors of business which are going to affect the business operations. It has
been found as essential for organisations to recognise the external factors which result in the
smooth running and functioning of business activities. P stands for political, E for economic,
S for social, T for technological, L for legal and E stands for environmental factors of
business organisation. It has a business organisation in knowing about the Technologies and
opportunities which are accessible in the market only for the business organisation. Some of
the reasons how the PESTLE analysis for external factors affect the performance of
businesses are given below:
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Cost effectiveness: PESTLE analysis is a tool which consume only time not money. It is not
necessary to do any hard and fast course for this analysis. Only a pen and paper is required to
analyse the external factors of the business organisation.
Development of alertness: With the help of performing PESTLE analysis, the organisation
get to know about the external factors which are going to affect the business operations which
is really helpful in analysing the old factors which are influencing the activities of
organisation. It is a deep and narrow study of all the factors which highlight the challenges
which is the organisation is going to face in near future. It can we said that it is the alarm for
any challenge.
Exploit opportunities: External factors are also responsible for providing any opportunity to
the business organisation. By conducting the PESTLE analysis of organisation, the
management can get to know about the external environment opportunities which can be the
strength of the business. Along with this it is really helpful in analysing the social and
technological trends. Sometimes it also highlight the techniques which are being used by the
competitors. An approach is provided by this analysis which give the opportunity to beat the
competition of market.
Deeper Understanding: It has been found that PESTLE analysis effect the management of a
business organization in a direct or indirect way. With the help of this analysis, the
organization get to know about the availability of new technologies and advance way to
increase the profitability and productivity of organization by reducing the costs. All the
factors of this tool leads to the success or failure of business firm. In order to develop the
strategic thinking in the management, they are required to deeply understand the market
strategies which are possible by doing deep study of PESTLE analysis of an organization.
Conclusion
It has been concluded from the above reported that the business have to perform
several practices while performing the business operations. In order to perform in all the
activities in an appropriate manner it is necessary for organization to make the division of
employees on the basis of their skills so that they can achieve the common goals and
objectives of organisation. Furthermore it has been also analysed the title There are several
form of business which are divided on the basis of number of employees and investment.
There are two structure of business organisation have also been studied i.e. functional and
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divisional structure of organisation. PESTLE analysis is important tool for every organisation
as It helped them in analysing the external factors and how to deal with them.
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Reference List
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Khan, M.A., 2019. Restaurant franchising: Concepts, regulations and practices. Apple
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practices and challenges. Planning Practice & Research, 35(2), pp.201-219.
Rana, G. and Sharma, R., 2019. Emerging human resource management practices in Industry
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Srnicek, N., 2017. The challenges of platform capitalism: Understanding the logic of a new
business model. Juncture, 23(4), pp.254-257.
(Ghosh, N. and Itam, U., 2020)
(Hearst, T., 2020)
(Hofman and et. al., 2017)
(Jacobsen, D., 2017)
(Keys and et. al., 2019)
(Khan, M.A., 2019)
(Latukha, M.O., 2018)
(McLeod 2020)
(Rana 2019)
(Srnicek, N., 2017)
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