An Examination of Company Types, Structures, and Environmental Factors

This report provides a comprehensive analysis of various types of companies, including micro, small, medium, and large businesses, alongside different business structures such as partnerships, LLPs, and public sector organizations. The report delves into organizational structures, differentiating between functional and divisional structures, and examines how companies like Morrisons adapt to external factors. The report also includes an internal SWOT analysis and an external PESTLE analysis, covering political, economic, social, and technological factors and their impact on business operations. The analysis highlights the importance of understanding both the micro and macro environments for strategic decision-making and market prominence. The report emphasizes the need for legal compliance, efficient teamwork, and the adaptation of structures to organizational scale for successful business operations. References to relevant books and journals are also provided.

Types of Companies

Table of Contents

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION ONE...............................................................................................................................3
Types of Companies and their Working.................................................................................3
SECTION TWO...............................................................................................................................5
Explain Different Types of Companies..................................................................................5
SECTION THREE...........................................................................................................................7
Types of Business Structure and Affecting External Factors.................................................7
CONCLUSION................................................................................................................................9
REFERNCES.................................................................................................................................10

INTRODUCTION
Business is an activity in which different operational functions are performed
with the help of human resource, machines, money, infrastructure, raw material, product and
services etc. There are existence of various type of organisation in competitive market. To
survive in tough competition it is very important to every form of organisation to analyse micro
and macro environment so that they can easily face the challenges and grasp the opportunities
on time which helps business entity to smoothly run their business and gain competitive
advantage. the organisation that was selected under this project is Morrisons. In Bradford, West
Yorkshine in United kingdom it has their headquarter. In context to super market it stand in
fourth position in the country UK. In 1899 it was established. As William Morrison is the
founder of the organisation. It has around four hundred and ninety four stores in different
locations of the country. It offers huge variety of products to their audience such as books,
groceries, footwear, clothing, drinks, food and so many other items. The supermarket involves
the products of different reputed brand in their stores. It also increase their customers base as it
provide both the facilities such as online and offline to purchase the goods. The Assighment
cover various topics on which we make discussion. The project is divided into three sections. In
first section , understanding of different forms of business entity and in what manner they
perform their work are discuss. In second section explainintion of various types of companies
such as limimited liability partnership, sole tradering, cooperatives are done. At last thirds
section different business structure as well as how macro factors make impact to business are
explain in brief (NGUYEN, 2020
TASK 1
Types of Companies and their Working
Micro business : it is such type of business who starts their operation with small
amount of capital. In this a single person act as owner of the business entity. In these business
not more than ten employees are present. The turnover of such type of enterprises does not e
xceed to two million dollar. Micro businesses play an important part in ensuring the country's
economic viability. It also helps by balancing social stability around different areas of the
country UK. Microbusinesses add to the economy by concentrating on rural and underserved
urban areas This form of company is often begun with few capital, and is often purchased,
operated, and regulated by single individual only. It is often known as family business or
creative start-ups brought started by younger generation, with great passion and growth
potential with zeal. In all over the United kingdom approximately five point seven million
small start up are run their business and few of the private firms also operate in the country. In
such type of micro business approximately 8.9 million employees are committed. As micro

business include less money so any one in the country can start such type of business for their
survival. It tends to be considered as most valuable business in context to country’s economy..
Small business
Privately owned business is called as small business. Few human assets are engaged in
such type of small business. As per companies act small business is those entity in which no
employer cannot be eligible to appoint more than fifty persons as their workers and annual
turnover of the company does not exceed to six point five million dollar. The figure of
balancesheet of this type of organisation does not beyond three point two six million dollar. As
small business contribute maximum to the UK economy. The country countribute to the
economy by offering job to local people. These form of firms run by a single person as their
size as well as profit margin are also very small. In this all revenues are taken over by
controlling authority. Few examples of such type of business are LLP, partnership and sole
proprietorship. Such firms are found in every industry. Small cafes, restaurants, bakery shop are
some of the examples of such type of companies. Furthermore, since these entity are not bound
by regulatory inertia, small businesses may adapt to evolving demands more easily. As a result,
they are beneficial to the local economies (Diakonova, 2019)
Medium business: these organisations are not to small as well as not so large. Not above two
hundred and fifty employees are engaged in the firm. The limit of annual turnover does not
exceed to twenty five point nine million dollar. The grand total of B/s not to exceed the limit of
twelve point nine million £. These entities initially earn less but their graph of profitability
increase slowly. Respective business are called as backbone of the economy. Approx forty
seven percent employment are generate from these firms only. Hunter MacDonald’s is
suitable example of medium business (Kinderman, 2020)
Large size business : In this form of concern there are involvement of large number
employees. As More than two hundred and fifty staff are present in these type of companies.
Large part of public are working in these organisations. Such organisation not to follow flat
structure to give instruction and direction purpose. In the the country it tends to increase
employment rate. The example of lage companises are Morrisons (Boone, 2019)
Section two
Types of Organisation
Partnership: In this minimum two partners are present. Any company , firm, individual
can became the partners. In this partnership deed are prepare in which profit sharing and risk
sharing ratios are mentioned. How much capital are introduce by each member are also explain
under the deed. Alteration is made in the agreement whenever old partner exist or new partner

take admission. It is not a separate legal entity. In this , partners can tends to be sued on
behalf of the firm (Beynon-Davies, 2020)
LLP: Limited Liability partnership is a combination of partnership and company .It
includes features of both. it has common seal with their name. In this designated partner or
partners are present. LLP attracts limited liability. Desinated partners are responsible to control
and manage operations. (Sinha, 2020)
Public sector organisation: In these companies the controlling authority is Government.
In their name ending public ltd is written. It is a company which not a private concern. As the
paid up capital of such type of organisation are as per the companies act. Shares of Public
company are tends to be transferable in nature. Their main objective is not to earn profit but to
serve their services to people.
A cooperative: There is no need to incorporate such type of organisation. Main purpose
to establish such type of entity is to provide support to its members. Their objective is not to
earn profit. Furthermore, the return on invested capital is small, and as a result, thus dividend
return is also small.
Section Three
Types of business structure
The organisation structure determines the power, responsibilities , roles and flow of
information amid various levels of hierarchy in the organization (Chatwani, 2019). Functional
and divisional,structure as discussed below.
the functional hierarchical structure is a framework in which employees are managed.
Divisions are done on the basis of talents and expertise. Every unit is tends to be organised in
the format vertically, In this powers are delegated from top executive to staff of ground level. In
this information are delegate from higher authority to lower staff. This style is generally noticed
in those business organisation where only person act as leader. They only take all decisions and
give instructions.. The company Tesco follow such type of structure in their supermarkets (Li,
K., 2020

A divisional structure In this company is divided on the basis of products, geographical areas,
services. In this, every functions of department are making control on its own capital and tasks.
Clear ownership line are given by the structure. In this structure all the organisation divided in
to subdivisions. (Brennan, 2020)

.
Internal analysis of Morrisons
SWOT of Morrisons
STRENGTH- Morrisons deals in huge products and has huge customer base as it serve
goods to different areas of the country by operating stores and supermarkets in various
locations.
WEAKNESS- In US , Morrisons business is not success . As Morrisons survival totally
depends to UK audience. & market.
OPPORTUNITY- . Dealing with or launching new products that are not related to
household products is a great way to expand your business(Halbert, 2020)
THREAT- Price wars among rivals are threat faced by business. Morrisons is always
threat to unfavourable change in currency rate fluctuations.

External analysis and their impact to business of Morrisons
Political factor : It deals with the factors those are relates to, tax policies corruption, , labor
law, government policies , trade restrictions, political stability etc.
Positive impact Negative impact
If there is strict restriction on trade policies than it
beneficial to Morrisons because due to this entry
of new arrivals become difficult as it involve large
formalities and documentation so it is not easy to
enter in competitive market.
Due to fixation of high tax rate , maximum part of
the income paid as tax so it tends to reduce the
revenues and profit of morrisons.
Economic factor:, It covers various factors such as, exchange rate, unemployment rate,
population growth, , interest rate , Economic Dvelopment and so on.
.
Positive impact Negative impact
If there is increment in the population rate than it
affects the sales of Morrisons also because
demands of baby products are tends to be increase,
which raise the revenues of the company.
If unemployment rate is high than it make negative
impact on morrisons because it is difficult to get
skilled or experience employees.
Social Factor: : It involves various factors that affects operations and profitability of business.
Factors related to demographic influences, lifestyle factor, income distribution , career attituted , age
distributions, health consciousness, cultural barrier are present under social factor.
Favourable affect Negative impact
Due to favourable change in the lifestyle and
attitude of customers increase the demand of
product as now audience of UK become more
health conscious. It tends to increase sales and
revennues of Morrisons.
Unfavourable change in lifestyle decrease the
sales of product and it negative impact to
morrisons.
Technological factor:, It deals in Resaearch and development activity, technological
awareness, automation, innovation, technological incentives etc. all the above of these can
make impact to sales and productivity of business.
Positive affect Negative impact

Through providing online facility and offline
services it leads to motivate technology t. It affects
sales in positive manner.
Due to so many competitors or lack of
technological awareness Morrisons sales can
tends to be decline.
CONCLUSION
. After analysis it tends to be conclude that to study macro environment, Organisation
use the tool PESTLE and for micro environment purpose SWOT analysis is necessary. After
observing these factors important strategies are framed by marketers so serve the purpose of
price fixation and maintaining products quality. on the basis of above information it is
observed to gain market prominence it is necessary to analyse market. After doing research , it
has being highlighted that irrespective of the size of the organisation, every business whether it
is small firm or large company must study about business environment. With the help of this
chances of business expansion are increased. Based on the analysis, it is concluded that in order
to run a successful business, legal compliance is required. Staff workers from various
departments operate together seamlessly without experiencing any business interruptions while
collaboration and teamwork are maintained. Structures are set up according to the scale of the
organisation so that to serve the purpose of order and command.

REFERENCES
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