Analyzing Business Structure, Finance Options for Alle Collection

This report provides a comprehensive analysis of the business structure for a fashion startup called Alle Collection, focusing on its potential establishment in the United Kingdom. It examines various legal statuses the business could adopt, including PLC, LTD, and Registered Charity, detailing their respective strengths and weaknesses. The report also evaluates three potential sources of finance for the startup: bank loans, angel investors, and venture funding, assessing their suitability and drawbacks. Furthermore, it identifies three sectors within the UK economy—manufacturing, tourism, and hospitality—where the business could operate, highlighting the differences between these sectors and their contributions to the UK economy. Finally, the report identifies HR policies relevant to the modern workforce and emphasizes their importance in fostering a productive and engaged work environment. This detailed analysis aims to provide a strategic overview for Alle Collection's successful launch and operation in the UK market.

THE STRUCTURE OF BUSINESS

Table of Contents
INTRODUCTION.....................................................................................................................................2
QUESTION 1.............................................................................................................................................2
A- Constructing a table to show varied legal statutes of ventures that a company may adopt.................2
B- Determining and evaluate strengths and weaknesses of three sources of finance accessible to
business start-up......................................................................................................................................4
QUESTION 2.............................................................................................................................................7
Determining three sectors within UK economy in which a venture can operate, differences between
each of them and their value to UK economy..........................................................................................7
QUESTION 3.............................................................................................................................................9
Identifying Hr policies in modern workforce along with their importance..............................................9
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................12

INTRODUCTION
Business structure is defined as form of legal format of a company that is considered in a
given jurisdiction. It refers to category of organizations that is legally characterized by legal
definition of that specific type. The current assignment will be based on specific start up business
and that is a fashion store named Alle collection. As it is a startup venture, the owner of this
company may effort to open outlet in the United Kingdom. The study will explain various legal
statuses of businesses that chosen firm may adopt and strengths as well as weaknesses of three
funding sources that available to select venture. It will justify three sectors in UK economy in
which a business can operate, differences between each industry and comment based on their
important to economy. Lastly, the report will clarify two human resource policies and comment
upon their value to the modern workplace.
QUESTION 1
A- Constructing a table to show varied legal statutes of ventures that a company may adopt
In the world of business, there are several forms of legal statuses of businesses accessible
that has been adopted by many companies. Each status may construct in form of table that
mention below;
Basis PLC LTD Registered charity
Definition Public limited company
is the most common
type of legal structure
that a company may
use to run and manage
its business activities in
legal manner but
separately (Jung,
2020). It may designate
a firm such as Alle
collection that offered
shares of stock to
It may abbreviation for
limited organization.
Ltd is a kind of
corporation that restrict
personal liability of key
organizational
stakeholders (Borisova
Borisov and
Karagussov, 2021). This
legal structure is link to
firms that operating
under home nation such
This form of legal
structure of
businesses drive the
attention of adopter
towards fulfilling,
one or more
charitable aims and
achieving it through
determining basic
need of local people
who may need
support from other

common public. Buyers
of those profits may
have limited liability. It
can be said that public
limited companies may
usually start life as
private limited firms
but later go public for
purpose of gaining
benefits.
as Alle that owner
attempt to open in the
UK. With this format,
individual may add
more than two members
as stakeholders that may
control or buy a part of
their venture.
that are able to do so.
Registered charity
may do not included
in category of
organizations, as they
effort to enhance
living standard of
local people without
aiming to earn profit.
PLC, registered charity and LTD are the most commonly utilized legal structures that
organizations used to run and manage their ventured growth. Alle collection may also adopt one
of them according to needs and by considering business factors. Each form of legal status may
encompass some strengths and weak points that are;
Legal statuses of businesses Strengths Weaknesses
PLC Key strength of public limited
company a type of legal
structure is that it allows
organization to raise capital
through public issue of shares
(Haraldson and et.al., 2021).
It may obtain government
provided opportunities related
to business progress within
specific sector and chose the
best finance source that
accessible in corporate world.
It may grab the attention of
potential stakeholders.
On the other hand, it may
encompass wide regulatory
terms and conditions as well
as agreement that put
negative impact on user in
term of consuming time and
efforts as well. With public
limited company format, a
company may require to
conduct practice related to
transparency between
stakeholders such as
customers and venture.

LTD Just like above form
strengths, it also consists of
key benefits as strength and
that is separate legal identity
that it allows to create by a
company who may adopt or
use this. It may give power to
take decision independently,
without any issues. Another
strength of this legal structure
is that it permit company to
raise fund from business
capitalists.
One of the biggest weakness
of this form is that it may
restricts transfer capability of
shared by articles. Another
drawback of private limited
firm is that it may not issue
prospectus to public. Stock
exchange with this one is not
possible or be quoted.
Registered Charity The best thing about this legal
structure is that it may allow
user to get funds from wide
sources for social good,
which an organization may
utilize in effective and
appropriate manner. It may
open new ways of improving
standards of living of many
people’s, which is quite
beneficial and essential.
While due to registered
charity, it may take opinion
and consider the same from
other people who may relate
to government party. There
are several restrictions may
have with this that may put
negative impact on further
and current practices of a
company.
B- Determining and evaluate strengths and weaknesses of three sources of finance accessible to
business start-up
It is too important for a start-up company or venture like Alle collection to find out the
most suitable and trustable source of finance, which it may utilize to gain profit in term of
gathering money that management may utilize for further investment in profitable concepts like

formation of product or service, etc. There are several sources of finance available in the market
that chosen start-up firm may use (Sources of Finance, 2021). Some of three are;
Bank Loan-
It is the most common, but effective source of finance that several organizations whether
it is small or large may use to make further investment related to their business success. In the
context of Alle collection a fashion store, management may consider this source through which
they may obtain variety of benefits.
Strengths-
 The main advantage of this source, which start-up venture may gain is trust, which is
risky to get by obtain while using other sources of finance. Firm may trust bank in term
of obtaining and paying loan amount.
 It may return loan amount according to capability in two or more durations.
Weaknesses-
 High interest rate is the biggest weakness of this source that may negatively influence
procedure of starting new venture within UK fashion industry.
 Another weakness of bank loan option is that it may quite difficult to get unless a small
venture may has a substantial track record as real estate.
Angel investors-
In term of funding source, it may accessible in group of people who are interest to invest
their money in profitable and beneficial projects like start-up company that in return pay more
benefits than investment (Rani, Ramesh and Annamalai, 2021). They may found among a
businessman’s family or friends.
Benefits-
 Its suitability is the key strength of this source that start-up business may use and choose
to get specific amount of money according to their need or budget.

 Firm may find and utilize this source in easy manner, for which it may do not need to
waste too much time and conduct effort that is the best thing. It helps in term of proving
money or investing into startup business procedure.
Drawbacks-
 Drawback of this option is that it may give less control over spending upon business
activities and practices that is important to obtain from organization. Decision making
power is essential to get for any one especially when they attempt to open new business
and start it within specific market.
 Another weak point is that it may consist of less transparency that is the main part of
business success within marketplace and impossible to get with this source.
Venture funding-
It is another funding source that Alle collection may take into their consideration to
obtain competitive edge and gain the attention of profitable customers by selling quality products
in term of fashion clothes with matching mask which is a common trend emerge in market
during pandemic.
Strengths-
 It may provide chance to expand business which is the best feature about this source of
finance that business management may take into their consideration. This benefit is not
possible for it to obtain through other approaches of funding like bank loan.
 Stakeholders by using this source may usually appoint to board of start-up business
where people may share their opinions.
Weaknesses-
 The worst thing about this way of funding is that it consumes a lot of time, which is not
possible to give for company as it may effort to startup venture in fashion industry as
soon as possible (Venture Funding, 2021).
 Another drawback of venture funding source is that it may require redeem investment
within more than 3 years which is not possible to invest as it depend on circumstance at
that time, which decision firm may unable to take currently.

QUESTION 2
Determining three sectors within UK economy in which a venture can operate, differences
between each of them and their value to UK economy
Types of sectors-
A business can operate and manage their venture activities in effective manner within any
sector which their management may consider as profitable market where they may obtain useful
outcomes and through which achieve set goals. Manufacturing, tourism and hospitality are the
three profitable industries within nation where any company can operate successfully and
appropriately (The Economy of the United Kingdom, ). These three are one of those sectors that
made effective impact on UK economy in varied terms, but still each of it is different from each
other.
Differences between three sectors-
Three types of
industries
Manufacturing
sector
Tourism sector Hospitality sector
Definition It is one of those
sectors that play vital
role in growth and
development of
economy. By
producing, marketing
and selling variety of
products this sector
may support to
enhance the
profitability of
venture. It may
include food, drink,
textiles, clothing,
printing, tobacco, etc.
items. Retail industry
It also known as
travel industry that
link to idea of
individual travelling
to other destinations,
either domestically or
globally. In wide
sense, it is a sum of
all ventures that
directly cater quality
items and services to
facilitate business,
leisure and pleasure
activities ways from
home atmosphere.
It is a wide term,
which encompass
several businesses
such as lodging,
accommodation,
Food & Beverage,
and other that
contribute to provide
leisure services to
individual customer.
Instead of
manufacturing
services, within this
sector candidate may
effort to offer quick
services to potential

is the sub-part of
manufacturing sector.
guest who came from
other nations to enjoy
their vacant with
family members or
friends.
Functions Its main function is to
manufacture top
quality items such as
clothes, furniture, etc.
according to the
needs and
expectations of
customers.
The functions of
tourism industry are
the main difference
point of this sector,
which help to
enhance its
productivity and
performance level.
Tourism sector
function is to offer
top class
accommodation and
leisure services to
guest.
The most important
function of this
industry is to arrange
everything according
to customers need in
term of meal service,
stay and many more.
Importance of each sector in the context of UK economy-
Whether it is hospitality or manufacturing industry, each contribute to grow and develop
economy in the United Kingdom in varied manners. For example, each sector within nation may
play vital role in regard to improve the living standards of local people in term of providing
employment opportunities to those people are need a better job and seek to work within good
company where they may earn money in exchange of hard work and their attempt which made
firm capable to grow (The Economy of the United Kingdom, 2020). After dealing with many
challenges and facing issues, UK has sixth biggest economy after China, Germany, India and
Japan, just because of its industries contribution which define their importance and essential as
well as effectiveness. Along with above initiatives, hospitality and tourism sectors may play

crucial role in economic development in term of generating a lot of GDP by offering quality
services and tasty meals to guest according to their health concern, expectations and
requirements, which in return increase profitability and customer base of organizations. While
starting venture into these kind of sectors, start-up venture may obtain great success which is not
so much easy to get for any brand whether it is large or small. It is fact that approx. 79% of
nation gross domestic product may came from service or manufacturing sector that effectively
benefits economic. In term of offering quality products and manufacturing each according to
trend, startup business may contribute to gain the attention of profitable investors and potential
customers who may able to maximize profits margin and productivity and enable firm to operate
within international market. By hiring, generating GDP and conducting more activities sectors
may support to UK economy progress excellently.
QUESTION 3
Identifying Hr policies in modern workforce along with their importance
Human Resource policies are formulated to manage the essential part of company that
adds value to its process. The current scenario of business environment has changed and requires
effectual competitive advantages through managing employees so that better productivity can be
obtained. HR policies are formal rules and regulations are put into business to hire, retain, assess
and reward workforce members.
Health and Safety Policy
It is one of the important policies that help employees to work freely in business in order
to share their full potential to achieve organizational objectives. It should be primary
consideration of organization in turn better working scenario can be established. This specific
policy includes preventing work related injuries and illnesses through providing appropriate
equipments, tools, resources which can mitigate the threat that can occur while in working.
Health and safety policy via making this action can attain loyal and engaged employees
performing their roles & responsibilities more effectively (Gomez and et.al., 2019). There are
certain practices which are conducted by companies in modern environment which comprises
forecasting workplace safety culture, establishing administration procedure encouraging workers
to report unsecure conditions, recruiting & retaining employees ensuring their own well being,
etc. Firms of current business environment are more indulged into spreading awareness among

employees through enforcing safety rules, reducing cost associated with losses due to
absenteeism injuries, disability and care. Company pay attention on providing accurate
information to employee via implementing training and development activities to ensure safer
working culture by giving emphasis on control measures.
It is important to have such approach for managing threats related to life of parties
concerned with business. From the employee perspective it is essential to give burden free
environment assistance in obtaining higher productivity and sustainability. This prevents the
company from legal actions that may be imposed on firm due non availability of safety measures
that has resulted into accidents, injuries, etc. In manufacturing sector, firm largely focus on
giving proper instructions to employees in respect to utilization of machines, resources so that
health factor can be considered along with maintaining high quality.
Equality and diversity Policy
Present working situation of companies implement equality & diversity policy to prevent
discrimination against employees. In addition to this, giving assistance in providing platform for
staff that have been witnessed discrimination to raise the issues with employer. This is crucial
policy that is prepared by firm by considering the prevailing legislation related to this so that
equal opportunities for growth and development can be provided (Mehra, 2018). It can be
exerted by executing inclusive & diverse working culture through motivating equality by
removing biases based on gender, age, color, race, religion, belief , etc. for promoting
understanding of different characteristics, personalities, etc. it results in reducing employee
turnover and encourages staff to be loyal towards their roles and responsibilities. Firm in present
scenario make reasonable adjustments in form of allowing disabled workers to take rest breaks,
disciplinary procedure, etc.
This policy provides significance to company activities through obtaining advantages like
diverse workforce, higher productivity, engaged, involve customers, declining complaints, bad
image in industry, etc. Manufacturing sector is highly giving emphasis on providing equal
growth opportunities in form of increasing skills, exploring and gaining practical exposure.
Performance Management and Appraisal Policy

It is created to give clear understanding of what is expected from the employees and
criteria for praising them. This policy structure gives framework within which performance of
employees can be monitored by executing tools and techniques. Performance management
comprises recognizing, analyzing, managing and controlling efforts of human resource. It is one
of the ongoing activities that require certain strict legislation in order to have appropriate base for
providing feedback to workers (Davis, 2017). This is crucial policy aids in identifying lacking
areas through comparing with particular standard benchmarking in turn effective improvement
actions can be exerted by human resource management to get positive outcome.
This is essential to have in company to make workers stand that their performance is
judged by which criteria so that suitable course of action to increase outcome can be done. There
is requirement of having reward providing policy with clear guidance to build ethical business
practices. There is utilization of tools like KPI, 360 feedback mechanism, etc to assess actual
performance in turn applicable reward can be offered. The manufacturing sector comprises this
policy so that employees can be encourage through providing promotion, tour package, extra
allowance, etc with help of performance management & appraisal policy.
CONCLUSION
From above analysis, it has been concluded that by adopting private limited corporate
structure, organization has gained so many benefits. It has obtained benefit offered by the UK
government in term of loan and hired local people who had greater skill, knowledge and talent to
grow their venture continually and enable it to be competitive within fashion industry.
Furthermore, by summing up above discussion, it has been summarized that by choosing and
using the most appropriate source of finance, firm has successfully opened its new business
through which it has enhanced its customer base and increased profitability as well as sales. By
conducting ethical business practices and following health & safety policies related to HR,
management has retained productive workers that has contributed to reach at target results.