Business in Practice: Organizational Structures and External Factors

This report provides a comprehensive analysis of different business structures, including sole traders, partnerships, limited liability businesses, and cooperatives, examining their characteristics and legal frameworks. It delves into various organizational structures, such as functional and divisional structures, assessing their impact on a company's profitability, considering managerial influence, structural flaws, and the role of creativity and growth. Furthermore, the report explores the external environment's influence on organizational performance, utilizing PESTLE analysis to evaluate political, economic, social, technological, environmental, and legal factors. The analysis highlights how these internal and external elements affect strategic formulation and overall business operations, providing a detailed overview of the factors impacting business performance.

Business in practice

Table of Contents
INTRODUCTION...........................................................................................................................4
Section 1: Different kinds of organisations and how they perform work........................................4
Section 2: Different organisations from sole traders to cooperatives as well as Limited Liability
Partnerships......................................................................................................................................5
Section 3: Various structure of organisation and external environment affect company................7
3.1 Assessing various structure of organisation and explain how organisation structure impact
on profitability of company....................................................................................................7
3.2 Various external elements impose direct impact on performance level of organisation –
PESTLE Analysis...................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERNCES.................................................................................................................................12

INTRODUCTION
There are various kind of organisation that differ as per size and there is various kind of
organisation perform work as per specific need and goal which they set in basic level of every
company. Organisation differs according to legal structure and criteria related to formation such
a sole proprietorship, limited liability and partnership are considered as different kinds and have
various legal structure. Furthermore, they are various kinds of business structures such as
functional and divisional according to suitability of company. There are various external as well
as internal factors which is considered as a part of company that includes direct effect on
working of company in respect of strategy formulation as well as implementation (Boone, Kurtz
and Berston, 2019).
Section 1: Different kinds of organisations and how they perform work
Micro business:
Micro organisation are those type of business which have sales and assets are less than
$250000 and they have employees which is not more than 5 subordinates including owner of
company. The organisation focuses on expanding many kind of industry beyond foundation but
its size remains same. A micro organisation treated as similar level and example involving
catering, house cleaning as well as accounting and many more.
Example: Castle Hill fire protection Limited is determined as a micro organisation that
possesses specialisation in launching fire protection technique as well as product in UK. They
also accomplished 145% success and growth in past three years.
Small organisation:
Small organisation is those which possess not more than 10 subordinate and their rate of
turnover is also not more than 2 million pounds.
Example Broadsword event house is determined as an organisation which performs their
work in respect of culture of higher expectation to offer team goal and purpose. It is an
improvement of event around world.
Medium size organisation:
Medium size organisation possesses not more than staff member of 250 subordinate and
the rate of turnover is not more than 50 million pounds.

For example Captify is determined as a medium size organisation that possesses
specialisation in intelligence. It was given by Dominic Joseph & Adam Ludwin in year of 2011.
They also have increased their income by 300% and their subordinate base by increasing their
investment of around 8 million pounds.
Large size organization:
Large size organisation is determined as those which possess 250 subordinates and their
presence in various locations.
For example adm group is determined as a business organisation will signify 400 individual
people in 27 offices which are considered as a part of 19 nations. The primary objective is to
integrate adm software to increase level of performance, experience of user as well as resilience
(Huntington, 2018).
Section 2: Different organisations from sole traders to cooperatives as well as
Limited Liability Partnerships
In UK, LLP is a partnership firm that is an integration of typical partnership & it is
generated through LLP written agreement of LLP which is adopted for specifying formation and
activities.
Sole trader business:
Meaning: sole trader is determined as a self-employed individual person who operates
their own organisation as an individual person and they do not have any kind of legal entity that
is separate from owner.
Characteristics: they have an absolute or proper control on profit earned after tax as
well as assets. This type of organisation has a sole administration & unlimited liability. These
companies possess full freedom in order to make rules of organisation.
For example Russell Walker & company as well as Colin Bush & Co is determined as an
example of sole trader organisation of UK.
Partnership:
Meaning: Partnership is determined as an Organisation in which two or more individual
person come together in order to conduct business with motive of earn more and more profit.

Characteristics: it is determined as an agreement of sharing profit as per given
guidelines. There is not any kind of transferability of interest and control ownership within
organisation as per this agreement.
Example Apple is determined as a brand that is given by Steve Jobs who launched their
brand as a partner in a year of 1976. Google was given by Larry page as well Serge Brin and
they are considered as a partner.
Limited liability business:
Meaning limited liability organisation are those type of company in which owner or
manager are liable to pay debts in condition of requirement but they only have a limited liability.
Characteristic LLP need filling documents and all team members have a limited
liability. All profit as well as loss are bearing through individual member as per preparation,
local laws as well as capital account which is considered as proportional to contribution.
Example Oxfam firm is determined as a example of limited liability brand at UK
(Johnson and Garvin, 2017).
Public limited liability business:
Meaning it is a kind of company who raise their fund by providing shares to its public. It
is connected with raising finance from public and trading feely related to share.
Characteristics there are a several criteria to start partnership organisation and the
member have a limited liability.
For example it is necessary to listed shares on platform named as London stock
exchange as well as alternative investment market.
Cooperative:
Meaning cooperatives are organisation which is controlled by individual members such
as customer, staff, supplier and many more.

Characteristic it is determined as a voluntary membership and all team members have a
democratic control. This is determined as a limited interest on capital and company is formed
with motive without any kind of intention related to gain financial profit.
Example there is different kind of cooperative society in UK involving Central England,
Cooperative as well as channel Island co-operative (Laïfi and Josserand, 2016).
Section 3: Various structure of organisation and external environment affect
company
3.1 Assessing various structure of organisation and explain how organisation structure impact on
profitability of company.
Functional structure these are determined as that structure that has a reporting
relationship within organisation that is determined as bifurcated as per particular functional area.
Illustration 1: Functional &divisional organisation structures

Division structure is a kind of a structure where function and activity are divided as per
various service and line of product that is determined as a structure.
The organisational structure is determined as a hierarchical structure for generating
communication level and also has responsibility. It is a way where a structure of organisation is
setup and having administration which imposes direct effect on productivity level of company.
Managerial influence the efficiency related to managerial staff within business
organisation generates wider reaching that imposes direct effect on structure. If there is any kind
of incompetent administration than it is spread within an organisation and reduce whole level of
productivity (Lim, 2018).
Structural flaws if the organisation structure is not setup in proper manner than
information related to travel is not required. If the process which is exists in middle then there is
not any kind of proper communication that results in wastage of time. Therefore, it is the
responsibility that is needed for increasing efficiency in future period of time.
Creativity employee focuses on bringing innovative ideas for success and growth of
organisation. Therefore, it is necessary to bring innovative ideas for executing different activity
in an appropriate manner. For example, in manufacturing company there is always an idea to
make appropriate utilisation of equipment at lower price than it help in increasing productivity
level of company during particular period of time.
Growth as a company grows, but if there is any kind of weak communication then it will
results in inefficiency in future period of time. There is a need of a strong organisational
structure than it is important for company to expand. Therefore, it is necessary to bring changes
within company in order to increase growth of company in future period of time
3.2 Various external elements impose direct impact on performance level of
organisation – PESTLE Analysis
The external elements signify customer, economy as well as competitor which is
uncontrollable and have influence on performance level of company. The stability and profit
margin of company and impose direct effect it in wider manner.
Internal factors impose direct impact on functioning of company:
In addition to various external elements, there are various internal elements which impose
direct effect on organisation function.

Mission: Every company successfully improve their mission along with a clear sense of
particular purpose and how to satisfy this purpose.
For example Steve Jobs focuses on having a particular mission and goal to increase
contribution towards world.
Leadership the leader is a person who focuses on inspiring other. Steve jobs are
determined as a great leader who has a leadership skill and ability to inspire other individual
person within business organisation. This leader focuses on success and growth of Apple as per
brand positioning within business organisation in respect of world.
Learning is the fundamental activity of individual person which is accounting with
success and growth of organisation. Due to having a technological advancement there is changes
which must be bring within business organisation in order to respond to innovation and building
experience of employees to get a personality to explore as well as learn. Many successful
companies such as Amazon, Google and Apple perform their work in respect of exploring new
field so that the organisation improvement and innovation is used by company (Lüdeke-Freund
and Dembek 2017).
On the basis of above given factor, it has been analysed that there are various factors
which imposes direct impact on strategic formulation. In addition to this, there are various
external elements which impose direct impact on company that is given below:
Political factors are determined as a political element which possesses a relation with
policy of government of every nation. They have imposes direct effect on company as per
industry they are belonging. This element of political factors signifies political stability, policy of
government and many more.
Economic factors are connected to economy of nation. There are various economic
elements such as shift in demands that imposes direct effect on function of company. There are
various change in inflation as well as interest rate that impose positive effect on internal
functioning of company. The buying power of user also imposes direct effect on demand of
various products and services at marketplace.
Social factors are determined as a various elements which are connected to socio-cultural
atmosphere of company. Therefore, it is necessary to satisfy needs and wants of its user. There
are different kind of social elements such as population, emerging trends and many more. The
social elements connected with friend and status of individual person that impose positive effect

on purchasing behaviour of individual person. The social atmosphere signifies values, lifestyle as
that is different for every country.
Technological factor technology is important part of business organisation which
imposes direct effect on company. For instance, TESCO is determined as multinational
organisations that used system related to automation payment for their user in which they use
technological improvements for aim of enhancing its user. Therefore, it is necessary to adopt
innovative technology in order to provide unique product and services to its customer and
operate their business at global level which imposes direct or positive impact on company.
Environmental factor there are various environmental factor which imposes a direct
effect on companies such as weather condition, climatic condition. Hence, the company focuses
on reducing pollution rate in order to conduct different activities within business organisation in
an appropriate manner (Molthan-Hill, 2017).
Legal environment they are various legal factor that increases direct effect on operation
of company. It is connected with laws that are considered as activities within business
organisation in an appropriate manner. There are various legal factors that impose direct effect
on operation of company. It is connected with law that are considered as a part of organisation
whether it is determined as a medium size, large as well as medium. It signifies law hat is
connected to wage rate, employment and many more. There is different international agency that
imposes direct impact on legal working culture as well as policy of company.
On the basis of given factors, there are different kind of external atmosphere of company
that impose direct effect on internal functioning.

CONCLUSION
On given report, it is assess that there are various kind of organisation that differ as per
size and there is various kind of organisation perform work as per specific need and goal which
they set in basic level of every company. Organisation differs according to legal structure and
criteria related to formation such a sole proprietorship, limited liability and partnership are
considered as different kinds and have various legal structure.

REFERNCES
Books & Journal
Boone, L.E., Kurtz, D.L. and Berston, S., 2019. Contemporary business. John Wiley & Sons.
Huntington, J., 2018. Managing the Practice: Whose Business?. CRC Press.
Johnson, J.E. and Garvin, W.S., 2017. Advanced practice nurses: Developing a business plan for
an independent ambulatory clinical practice. Nursing Economics, 35(3), p.126.
Laïfi, A. and Josserand, E., 2016. Legitimation in practice: A new digital publishing business
model. Journal of business Research, 69(7), pp.2343-2352.
Lim, W.M., 2018. What will business-to-business marketers learn from neuro-marketing?
Insights for business marketing practice. Journal of Business-to-Business Marketing, 25(3),
pp.251-259.
Lüdeke-Freund, F. and Dembek, K., 2017. Sustainable business model research and practice:
Emerging field or passing fancy?. Journal of Cleaner Production, 168, pp.1668-1678.
Molthan-Hill, P., 2017. The business student's guide to sustainable management: Principles and
practice. Routledge.