Different Types of Companies and Their Organizational Structures: A Case Study of Marks & Spencer

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Contents
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Introduction 2
Section 1: Different types of companies and how they work
P
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors
affecting business p
Conclusion p
Reference List p
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Introduction
There are different types of organizations depending upon their size and
scope. Similarly, there are number of businesses incorporated on the basis of sole
trader business, partnership, limited liability business, public limited businesses and
cooperatives. These businesses differ on the basis of their business functioning,
objectives and the organizational structure for managing different business activities.
The business environment consists of different external and internal factors and
forces that can affect the business performance in a negative or positive manner. A
business needs to identify all such factors to formulate strategies in order to
implement flexible business amendments. This report is in the context of Marks &
Spencer which is a British multinational business organisation delivering varieties is
consumer products and services such as apparels, beauty products, home
improvement tools, flowers and gifts, banking services, food services. Marks &
Spencer is headquartered in London, UK. The business is established and founded
in the year 1884 by Michael Marks and Thomas Spencer (Akhmetshin and
et.al.,2017). This report revolves around different characteristics with examples of
micro, small, medium and large businesses, explanation on characteristics of
examples of sole trader businesses, partnership, limited liability, public limited and
cooperatives, organizational structure and how it positively affects the business
activities lastly macro environment analysis to evaluate the impact of the external
business environment on the business performance.
Section 1: Different types of companies and how they work
Micro business:
Micro businesses are defined by such businesses that are operated with a
limited number of capital and employees. The maximum number of employees in
micro businesses are 9 and the minimum number of employee is ateast 1. There are
number of micro businesses in UK wherein such businesses are founded mostly by
sole proprietors, one such micro business organisation in UK is Bass Brewing
Company which is established by Sarah John, founded in Swansea, South Wales,
UK (Belás and et.al.,2019).
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Characteristics
 Annual turnover less than £2 million
 Number of employees less than 10
Small business:
Small businesses are such businesses that are incorporated with little revenue and
operating in a limited scale of market. These businesses are owned by private
owners and sole proprietors or even partners. The large number of emerging small
businesses in UK, there is significant growth and positive contribution of such
businesses towards the economy of UK. The government of UK have formulated
policies for delivering financial and non-financial support to such businesses. One
such example of small businesses in UK is Marshfield Bakery Ltd which is
headquartered in Chippenham, UK. It is a business operating in the food industry
and delivers bakery products to its customers (Čepel and et.al.,2018).
Characteristics
 Number of employees are less than 50
 total annual turnover is less than £10 million
Medium size business:
Medium businesses are such businesses owned by private owners, family owned, it
operates with an annual turnover ranging from twenty-five million pounds to fifty
million pounds. One such example of medium businesses in UK is Verdant Leisure
which is a business founded by Graham Hodgson, Andrew Wall and Bev Dixon in
the year 2010. The business has recorded the annual turnover over of 31 million
pound. The business is operating in the hospitality industry, it delivers holiday Park in
Scotland and north of England (Gaspar and et.al.,2016).
Characteristics
 Number of employees less than 250
 The total annual turnover less than £50 million
Large size business:
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