Business in Practice Report: Company Types, Structures, and Analysis

This report, submitted to Desklib, provides a comprehensive analysis of various company types, including micro, small, medium, and large businesses, along with their characteristics and examples. It further explores different business structures such as sole traders, partnerships, and limited liability companies, elucidating their definitions and key features. The report delves into organizational structures, particularly functional and divisional structures, and their impact on business productivity. Additionally, it applies PESTLE analysis to assess the influence of political, economic, social, technological, legal, and environmental factors on business performance, using Asda as a case study to illustrate these concepts. The report concludes with a summary of the key findings and a list of references.

TYPE OF
COMPANIES

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
SECTION 1.................................................................................................................................................3
Definition, characteristics and example of micro business, small business, medium size business and
large size business...................................................................................................................................3
SECTION 2.................................................................................................................................................5
Definition, characteristics and example of sole trader business, partnership, limited liability business,
public limited liability business and Cooperative....................................................................................5
SECTION 3.................................................................................................................................................6
Identify different organisational structures and explain how organisational structure affects business
productivity.............................................................................................................................................6
Using PESTLE analysis explain how different external factors affect the performance of a business.....7
CONCLUSION...........................................................................................................................................8
REFERENCE..............................................................................................................................................8

INTRODUCTION
Business is important areas and a separate legal entity which helps to provide all the
important engagement or business practises in professional, commercial and also the industrial
sectors. It improvised all the activities through which individual efforts and we maintain now so
that they can expand the business and also fulfill the demands of the customers. All these
products and services are being made in order to earn profit (Tran, 2020). All such business
practises helps how to maintain the values as all the business schools and the regulation
implicates out to maintain a proper motive and also provides the maximum profit in leading
shares. The organisation chosen for this report is Asda as it is a leading retail business company
which used to deal with all groceries item it is being headquartered in UK. This report will cover
the types of business practises and with that the scope, organisational structures with PESTLE
analysis.
SECTION 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
The business helps out to maintain all the profit It’s also to generate the revenue for the
country and also to maintain the employment by implementing certain multinational
organisations. It covers out so many employees for being working which helps to generate the
profit advancement. The small, micro and medium business helps out to produce a larger
workforce environment and also aims to bring in the profit environment through which a proper
size and implementation can be amended. There are certain type of business organisations
according to the way the size and structure they are as follows:
 Micro business: It is mainly the business practice that covers out employees which are
less than 10 numbers. The take few employees in their business practice as the business
that is being carried in it is a very small size and their annual turnover is around £2
million which is potentially being made to make their lifestyle easy (Riad, and et. al.,
2019). As they have the lowest number of workforce and they have the lesser turnover
and values used to cover all the small scale business practises that is of micro size like for

example grooming salon and all the repairmen shops are being covered in such business
practises.
 Small business: Also business practises in which the workforce of less than 50
employees are being taken part in with that the annual turnover will be less than £10
million is taken place is being covered in it. These are mainly larger than the micro
business and they used to generate profit by the own means as by implementing some
ideas and the methods through which they can gain the advancement and also provide the
structural growth (Olivera, and Carrillo, 2021). And the leadership skills through which
used to give training to the employees who are being working and also motivate them
towards the working areas. Small business practises usually cover the local market areas
and the employment to all the rural sectors. It provides out opportunity through which
employment can be given to all the local people by training them about the working areas
and also generate the profit for advancement. Fourex is one of the small business
company.
 Medium business: It mainly cover all the business practises which have more than 50
employees working in the organisations and the annual turnover that is being made in
such business practises will be less than £50 million. Also the business practises are
mainly being made in order to gain the advancement and also to help the to country to
generate maximum profit for their benefit Also the business practises are usually being
handled by the partners as discover expanded business serious and it provides a method
through which maximum employment can be given to all the national areas. For instance
Verdant leisure.
 Large business: Also the business practises which requires more than 250 workforce and
their annual turnover will be around £50 million will be covered in it. It mainly requires
high amount of investment for the working areas and also generate the maximum growth
of profit for the market segments. They used to deal with all the international and
multinational market segments and try to expand the business globally and also frame out
to maintain a proper trade relations with other countries. It helps out to remove the
barriers for all the trade relations and try to deal with maximum amount of revenues. All
such business practises used to cover the maximum turnovers Give the highest

employment facilities to the workers been working over there. Sainsbury, Tesco had
some of the example of large-scale business practice
SECTION 2
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative.
The business organisations where used to have so many different scopes and structures they are
like mentioned below:
 Sole trader: Such business is those which are being handled by the single owner and they
cover all the important liabilities and the responsibilities regarding to the activities that
has been taken place in the business. It usually cover lower amount of investment and
also make the liabilities for the owner to be personally handled. It used to control all the
important and have framed areas for the separate legal entity and implement out to
maintain the business in a proper manner (Ng, and Chang, 2021).
 Partnership: All those business practices which are being handled by two or more
individuals in order to maintain the business in proportionate and proper manner. In such
business practises all the liabilities, rights, shares, profit and loss are being shared with
them equally. In order to maintain a partnership it is important to get registered and
follow all the implemented methods. Investment that is for the business practises in
partnership is being handled by either of their own savings or they take the money from
the shareholders. For instance Yoomoo, Mcdonalds.
 Limited liability business: All the business practises and entities which covers the people
that are being associated in business practice in limited manner. As it cover all the
liabilities that has been extended for the contribution and involvement of companies. It
serves out that the shareholders are being made involved in responsible for the
investment process and also covered the debts and the shares that are being acquired.
Also business practices cover out the personal associated business and also frame out to
maintain a proper limit in order to invest in the business.. For instance all the
accountancy firms are being covered in such business practises.
 Public limited liability company: This type of business practises which is being led by
the owners in order to maintain the shares that are being divided for the public tradable

areas and also through the stock exchange. It covers authorise for the shareholders and
also make them liable for all the equity, shares, debt. It provides out the larger capital
share and also maintain the investment for all the companies and the practises.
 Corporations: It mainly covers out all the legal entities which are being created by the
common or the state law and also been framed by the Royal charter. This mainly has
separate legal bodies through which they can implicates the liabilities and also profound
their privileges that is being needed. The corporation tax it’s been made paid for the
liabilities areas that is being distant from all the members. The government and the old
areas can be covered (Manóvil, 2021).
SECTION 3
Identify different organisational structures and explain how organisational structure affects
business productivity.
Organisational structure activity being led by the business and the method through which
they used to organise coordinate and also divide the business practises in a proper creative
manner. It is mainly the coordinating working of all the business in the performance that is being
laid out for implementing the decision and maintaining the working section. There are different
organisational structures they are like:
 Divisonal organisational structure: It is mainly a type of organisational structure in
which different groups are being given for all sectors in all such division is being made
regarding the resources, functionality and proper line of product through their different
channels it mainly serve so different departments that used to work in an efficient manner
(Giacosa, and et. al., 2017). All such divisional structure helps out to implicate the
division of products and services regarding the demands of the customers and also try to
maintain a proper strength through which they try to maintain the financial aspect.
 Functional organisational structure: It is organisational structure which helps to
organise the working environment on a group-based methods it provides a proper skills
and knowledge through which all the working areas can be maintained and frame a
vertical structure in which the roles and responsibilities are being serve in proper
departmental areas it provides the different departments for all the management areas
through which they can frame out the proper working and also maintain the

implementation of working criteria. As Asda use functional structure Try to maintain
proper division of work in areas and departments in their methods through which they
can implement out the work.
Using PESTLE analysis explain how different external factors affect the performance of a
business.
This is an important tool which helps out to know the environmental factors in an
external areas and also to identify the needs and requirements that if we made in order to
influence proper working and also decisions for the company making. As in context to Asda it is
being mentioned below:
 Political factor: As the political environment cupboards out all the operational level of
the company through which the try to maintain all the legal regulations and policies.
Asda as being the largest retailer company and try to deal with all the multiple areas and
countries they have changing circumstances in the political behaviour through which they
operate a business so they have to maintain the political stability through which they try
to implement better trading facilities (Loo, 2020).
 Economic factors: This cover out all the currency exchange rates, inflation, recession in
on the changing market investment rises. Asda have multiple range of products and used
to cover different operational areas and segments they used to taxation policies and also
implement the leverage is through which they can give the benefits out of their products.
Asda also generate the revenue is for UK through which they try to maintain the
revenues, sales and distribution process.
 Social factors: This mainly covers out all the consumption rates and also provides out the
changes and the requirements of the individual to the customers. It covers all the
demands and the purchasing power of the people as they used to cover the benefit for the
society and try to maintain the proper fulfilment of demands and requirements that is
being given by the customers we try to implement on all the organic and a man force
through which they bring their supermarket to satisfy the requirements. It used to
innovate and introduce your products and reach be serving of customers.
 Technological factors: This mainly means the requirement and all the advancement with
the innovation and the digital techniques with upgradation as the use to update all their
important advancement in the technological areas and also to utilise their latest online

delivery methods is it right to upgrade them say by the latest trend and also serve the
market opportunity to engage in a social media in order to promote their product in a
better way and influence the customers to gain the product from them.
 Environmental factors: It is mainly being covered with sustainable changes in the global
environmental facilities that are being given in the operational areas of business. Asda
used to implement the improvement in the environment and also try to make effective
campaign through that they can promote the sustainable changes (Kuo, and et. al., 2021).
 Legal factors: It covers out all the rules and regulations that are being made by the
legislation and the statues. Asda tries to maintain all the laws and also to follow the legal
legislations that is being given by the government as they used to deal with so many
countries so they try to operate the business by the changing laws.
CONCLUSION
From this above report it is summarised that business plays an important role as it is an
entity through which all the aims and objective and generation of revenues can be maintained.
There are various type of business that can be varied on basis of size and scope they are like
small, large, micro and many more. Asda follows the functional organisational structure and also
provide the commands through which they can made a proper responsibilities in the business
practice. PESTLE analysis helps out to frame the external factors that is being important for the
organisation and also through which the working areas cannot be affected.
REFERENCE
Giacosa, and et. al., 2017. Exploring voluntary external disclosure of intellectual capital in listed
companies. Journal of Intellectual Capital.
Kuo, and et. al., 2021. Do Corporate Social Responsibility Practices Improve Financial
Performance? A Case Study of Airline Companies. Journal of Cleaner Production,
p.127380.
Loo, P.T., 2020. Exploring airline Companies' engagement with their passengers through social
network: An investigation from their Facebook pages. Tourism Management
Perspectives, 34, p.100657.

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