BMP3002 BSc Business Management: Analysis of Company Structures

This report provides an analysis of business practices, focusing on different types of companies such as micro, small, medium, and large businesses, and their operational characteristics. It examines various company structures, including sole traders, partnerships, limited liability companies, public limited companies, and cooperatives, detailing their legal and operational aspects. The report also identifies different organizational structures like functional, hierarchical, and divisional structures, explaining their impact on business productivity. Furthermore, it conducts a PESTLE analysis to assess the external factors affecting business performance, specifically in the context of Morrisons, a UK-based supermarket chain. The analysis covers political, economic, social, technological, legal, and environmental factors influencing the company's operations and competitive positioning.

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

Introduction 3
Section 1: Different types of companies and how they work
3-4
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships 4-6
Section 3: Different businesses structures and internal factors
affecting business 6-9
Conclusion 9
Reference List 9-10
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Introduction
The aim of this report is to analyse the business in practise as it helps in managing and
generating the revenue. Business is one of the mostly important method to generate profit and
to frame and provide essential goods and services to all the individuals. Their are so many
business practises which are being made in order to formulate the essentials for the country
they are like, small, micro, medium and large. As they all work in order to manage the
profitability and enhancement. The organisation chosen in this report is Morrisons which is a
supermarket Plc. Headquartered in England UK ( Madhani, 2018). In this report their will be
provided details about the types of companies, the organisational culture and the external
environmental factors for analysing the competition in the market.
Section 1: Different types of companies and how they work
In order to manage the business practises it is important to manage and establish the
companies some of which are mentioned thereunder:
Micro business: These are the small business practises which are carried by the
single individual in order to make the earning for living. These are considered to be
smaller and are generally handled y the sole owner. In all such business practises
there are about less then 10 people are working (Hall, and Martin, 2019). All such
practises are mainly being made in the rural areas so as to provide the facilities to all
the rural areas and also to manage their living standard. The annual turnover of all
such business are for about £2 million. Some of the example of all such kind of
business are like, carpenters, plumber, electricians and many more.
Small business: These are the business practises in which their were about 10-50
employees being working in the company and the use to work in order top manage the
employability in the rural areas and a;so to provide essential services and facilitates to the
persons. These are framed to manage the capacitive source. All these business can be
managed by the partners or the single owner itself. As their main aim is to increase the
earning and profit in company and also to helps in focusing on providing better resources to
all the rural and local areas. Their annual turnover is for about less then £10 million. For
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instance, Broadsword event house, Fourex, Marshfield Bakery are some of the major
example of small business.
Medium size business: It is the organisation which use to make all the operational
activities and also endure to manage the capital funds through which they can manage the
investment and can also led to implement the culture. Medium business are generally have
50-250 employees working in the company and there aim is to earn the income in order to
increase the economy and also to manage the establishments. It emphasize of growth and
profitability and also work with partners and the corporations (Netshakhuma, 2019). The
annual turnover of all such business are like less then £50 million. They tends to expand their
business practise so as to maintain the growth and also to generate the revenue and
employability in all the locations. For instance, Capitify is medium business company helps
in managing the research intelligence.
Large size business: It is the expanded and the big companies which use to manage
the largest growth and cover the major areas and sector. It maintain and focus on growth of
the country and a;so in increasing the economy globally. They provides major job
opportunities and it promotes and manage enhancement in the living areas. It have resources,
supplies and all the other facilities in adequate manner and also manage the growth of the
business with expanded methods (Fatoki, 2019). They also work globally and frame the trade
relations with other countries in order to create and expand economy. The employees
working under such company are more then 250 and the annual turnover will be around more
then £50 million. Some of the example are like, Dyson, Tesco and many more.
Section 2: Different companies from sole traders to
cooperatives and Limited Liability Partnerships
Sole trader business: All such business which are being carried by the single
individual in order to manage the company. They generates the fund either through their own
savings or by taking money from bank. It also manage the efficient business practises. All
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the liabilities and the taxation are being carried out by them. The manager or the owner of the
company use to manage all the business dealing and the operations in order to maintain the
growth of the company. The individual who implement such business generally considers to
manage the legal obligations and also focus on operational activities. For instance, carpenter,
architecture, hairstylist and many more.
Partnership: All such business practises which are carried by two or more person in
order to make the growth in the country and also focus on managing the economy. It
implicates and provides the agreement in which all the funds are being managed by the
partners through their savings or they can also abrupt to take the money from shareholders
and investors. All the decisions taken by the company use to be given by both the partners
and they have to agree ion same terms and conditions. It will not have any separate legal
entity and the agreements and the decisions are being made according to it for limited life.
For instance, Deciduous partners Ltd. Is a partnership firm.
Limited liability business: It is mainly a private company which frames a business
structure and carries the legal entities in order to frame the company. LLC considers to be the
private firms and they combines with different aspects like the partners and the corporations.
It focus on managing the tax flow and also on managing the flexibility with limited liability
status. It is a flexible company as choose different regimes for taxation, and also provides
protection to all. For instance Westinghouse is an LLC (Ezennia, and Mutambara, 2021) .
Public limited liability business: All those business practises which are privately
being owned and managed. It creates and frame the easy trading practises and also helps in
managing the voluntary association for the general public. It also helps in managing the
organisation and carry the separate legal entity. The shareholders and the other directors are
involved in all the formation of the company (Nikitina, and Lapiņa, 2019). It also helps in
making the systematic code of conduct through which the government can impose all the
taxation. For instance Morrisons is a Plc. Burberry, Rolls Royce are some Plc. Which focus
on earning profit and generating revenue.
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Cooperative: All those business structure which are privately being managed and framed
and are concerned for the growth of individual. They do not have any kind of government
interference as no such regulations are imposed on it. They establish a major brand image in
order to maintain the company good and also to regulate the larger market areas. It focus on
sustaining the large market areas and also to manage the product. For instance, Dyson is a
cooperative company.
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
The organisational structure is the management, control and the working which is
been led by the companies in order to manage the business functioning. Their is been
implicated that all the company use to have their own working methods and they deals with
their general essentials and the ways in which the regulation and the management can be
made ( Rebech, and Wójtowicz-Kowalska, 2020). It helps out to make the function and the
strategies through which company can focus on working. Organisational structure provides
the flow of information from the managers or the heads to the employees in order to make the
work proper and systematic. Their are so many organisational structure which are mentioned
thereunder: Functional organisational structure- This kind of structure is generally been used in
order to organise the work which is made between the company and their members. It
is mainly the structure in which the employees are divided according to their skills,
knowledge and working areas. It frames the vertically divided departments. As
majorly they use to frame different sections in which company can maintain and
frame all the areas through which all the employees are divided according to their
functions like HR, finance, marketing and many more. It helps in saving time and
analysing the management of work for all. For instance Starbucks uses this structure.
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 Hierarchical organisational structure- This is the top level management structure in
which all the flow of information is taken place from the top to the middle level of
employees. Their main focus is to engage all the employees and also to carry the flow
of information with the working and management. All the staff are included in it and
they try to carry the work according to the levels which are made by the structure. For
instance, Morrisons follow hierarchical organisational structure(Setyawati and et. al.,
2020).
 Divisional organisational structure- In this structure the company is divided in all the
smaller segments and groups as they contains small units which use to manage and
implicate to frame the working according to it. They focus on managing all the
departments to be served and managed with essential resources. Their function and
working is categorized according to it. It helps in smooth functioning and also in
generating the profitability and growth. Dyson use to follow this structure and divide
their departments in small sections of finance, HR and many more.
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Illustration 1: Functional organisational structure, 2020

Illustration 2: Divisional organisational structure, 2020
3.2 How different external factors affect the performance of a
business – PESTLE Analysis
In order to analyse the external environmental factors in the market and also to know
about the competitive changes it is important to frame and get the external factors to be
manages within it. As in context to Morrisons it is been mentioned thereunder: Political- This factor involves all the government regulations and the policies which
are made in order to manage the success in business. Morrisons is majorly being
impacted by all the trading culture and the interference of the government in retail
sector (Tolstoy, 2019) . Economic- It includes growth rate with all the inflation and the changing economic
conditions. Their seems to be provided that Morrisons as a well known leading
company has the major government intervention and as they need to raise the capital
in order to manage the financial market efficiency. Social- This considers to have all the demographic environmental areas with all the
social requirements in the customers. Morrisons considers to focus on providing
such services through which all the customers can gain the essential services and can
deal with the changing trends (Pestel and et. al., 2017).
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 Technological- It is the innovation and the advanced techniques which are used by
the company in order to manage the business. Morrisons carries all the digital
payment and the online delivery system in order to create a fast delivery system and
to gain more customers (Veronica, and et. al., 2020). Legal- This carries all the laws and the regulations through which the company use to
work. Morrisons considers and manage all the laws as they deals with different areas
through which they can maintain all legal implications.
 Environmental- This provides all the development and the substantial changes in the
environment. Morrisons carries all the laws and the regulation in order to manage the
sustainability and also promotes to remove waste and try to serve ecological products.
Conclusion
From this above report it is concluded that business in practise is the methods in
which the organisation and the companies use to work and manage all the implications. Their
mainly have different type of business practise like micro, small, medium and large. Micro
are the small business made by single individual in order to manage the living standard.
Organisation structure is generally the transfer or flow of information to all the employees
been working under them. Furthermore, it is also concluded that PESTLE analysis helps in
managing and maintaining the external factors in environment.
Reference List
Ezennia, J.C. and Mutambara, E., 2021. ENTREPRENEURIAL FACTORS INFLUENCING
THE NEED FOR HIGH ACHIEVEMENT ON AFRICAN IMMIGRANT-OWNED
MICRO BUSINESSES IN DURBAN, SOUTH AFRICA. Academy of Strategic
Management Journal, 20(1), pp.1-11.
Fatoki, O., 2019. Organisational culture and environmental performance of hospitality firms
in South Africa. Journal of Environmental Management and Tourism (JEMT), 10(03
(35)), pp.575-589.
Hall, J. and Martin, B.R., 2019. Towards a taxonomy of research misconduct: The case of
business school research. Research Policy, 48(2), pp.414-427.
Madhani, P.M., 2018. Building a customer-focused culture in organisations: developing 7Cs
model. International Journal of Business Excellence, 16(2), pp.199-232.
Netshakhuma, S., 2019. An analysis of the implementation of an enterprise content
management system: a pilot project of the South African national parks. Innovation:
journal of appropriate librarianship and information work in Southern Africa,
2019(58), pp.53-77.
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Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice, 17(1), pp.96-107.
Pestel and et. al., 2017. Promise and challenge of European Memory. European Review of
History: Revue européenne d'histoire, 24(4), pp.495-506.
Rebech, D. and Wójtowicz-Kowalska, M., 2020 KSZTAŁTOWANIE POLITYKI
BIBLIOTECZNEJ: W KIERUNKU ANALIZY PESTEL.
Setyawati and et. al., 2020 "THE LEVEL OF URGENCY OF COMMUNITY-BASED
ECONOMIC DEVELOPMENT (CBED) IMPLEMENTATION: DETERMINANT
AND THEIR INFLUENCE ON THE PERFORMANCE OF WEAVING CRAFT
MICRO-BUSINESSES ON LOMBOK ISLAND, WEST NUSA TENGGARA." In
Journal of International Conference Proceedings (JICP), vol. 2, no. 1, p. 30. 2019.
Tolstoy, D., 2019. The proactive initiation of SMEs’ foreign business relationships. European
Management Review, 16(4), pp.1159-1173.
Veronica, and et. al., 2020. Do stakeholder capabilities promote sustainable business
innovation in small and medium-sized enterprises? Evidence from Italy. Journal of
Business Research, 119, pp.131-141.
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