Business in Practice Report: Types of Companies and Factors

This report, prepared for the Business in Practice module, delves into the diverse landscape of business entities. It begins by defining and differentiating between micro, small, medium, and large businesses, outlining their characteristics and operational models. The report then explores various company structures, including sole traders, cooperatives, and limited liability partnerships, examining their unique features. A significant portion is dedicated to organizational structures, analyzing their influence on business profitability and productivity, with a focus on functional and divisional structures. Finally, the report applies a PESTLE analysis to assess how political, economic, social, technological, environmental, and legal factors impact business performance, providing a comprehensive overview of the external environment. This report is an excellent resource for students seeking to understand the complexities of business operations and the factors that shape them.

Business in Practice

Table of Contents
Introduction.................................................................................................................................................3
Section 1.....................................................................................................................................................3
Different types of companies and how they work....................................................................................3
Section 2.....................................................................................................................................................4
Different companies operate at the environment.....................................................................................4
Section 3.....................................................................................................................................................6
Different business structures and external factors affecting business......................................................6
3.1 Examine different organizational structures as well as discuss how does organizational structure
influences business profitability and the productivity..............................................................................6
3.2 How different external factors affect the performance of a business – PESTLE Analysis.................6
Conclusion..................................................................................................................................................8
Reference....................................................................................................................................................9

Introduction
There are enormous number of business associations play out their activities which are of various
size, have various thought processes and points. These associations help in improving the
monetary arrangement of a nation. In the current condition, it has been recognized that different
kind of associations is accessible at the serious commercial center which have their own specific
manner of attempting to procure gainfulness. It has been said that there are huge number of
associations which have their own objectives and targets and as per which they can embrace
procedures and hierarchical structure. In this report, conversation about various kinds of
associations accessible at the commercial center will be secured. What's more, different
authoritative structure just as their effects on benefit are additionally remembered for this report.
Pestle investigation are likewise remembered for this report with the assistance of which outside
condition influence can be recognized.
Section 1
Different types of companies and how they work.
In the environment, it has been said that there are various types of companies operates their
business functions and have their own goals and motives. These organizations have similar goal
which is to earn profit which leads towards the enhancement of economic system of the country.
Some of the most essential types of companies are going to be discussed as follows:
Medium size business: Medium size business association are those which have human
asset and assets more than little and miniaturized scale business yet not exactly enormous scope
business association. It is another sort of organization work at the commercial center who have
not surpassing 2 to 3 measures which will be examined beneath:
Balance sheet total: The total amount of balance sheet is £18m
Medium business income: £36m
Average number of employees: 250 employees
Micro or small business: Microenterprises are private companies that are financed by
microcredit, a sort of credit office given to individuals who have no guarantee record of loan

repayment, or business. These organizations fill an essential need in improving the personal
satisfaction for individuals in creating nations, and by and large give a decent or administration
in their networks, for example, attire and footwear creation or horticulture. Microenterprises not
just assistance improve the personal satisfaction for entrepreneurs, they likewise increase the
value of the nearby economy. They support buying power, improve salary, and furthermore
make employments. Microfinance tries to help microenterprises by crediting limited quantities of
funding to these organizations. This permits people or families with moderate, low, or no salary
to begin their own organizations, procure pay, and advantage their networks. Numerous banks
award microloans to those out of luck, yet an incredible arrangement are given by associations
that provide food explicitly to individuals who need to begin a microenterprise. Like customary
advances, they are required to take care of the assets after some time with intrigue.
Large size business: Huge scope business venture are those associations who have
colossal capital and have enormous number of human asset where they assembling and produce
merchandise and enterprises everywhere level. It is a sort of organization must check a couple of
the beneath referenced conditions. They at any rate have around 5000 representatives, or have
yearly turnover benefit more than 1.5 billion euros and absolute accounting report measure of in
excess of 2 billion euros
Section 2
Different companies operate at the environment
Aside from the smaller scale, little and enormous size of business substance there are some other
kind of business element accessible at the serious commercial center. These organizations have
their own specific manner of working and thought process. The absolute most regular kind of
organizations will be talked about in a detail way as follows:
 Agreeable: Cooperative is the another most basic kind of business element which is
known as the personal business substance completely claimed, oversaw just as
constrained by those individuals who expends their administrations, items and products.
Alongside this, agreeable associations are of various size as indicated by the necessities
and were figured to satisfy the foreordained goals and targets. Moreover, it has

additionally been said that hierarchical structure embraced by associations are of various
kind and according to their necessities and goals.
 Association: Another type of business incorporates organization where at any rate at least
two than two people together works all the business capacities. In this kind of business
element both benefit and misfortune are similarly appropriated between the accomplices
according to the venture made by them. Such business substance are generally shaped by
multiple accomplices where they contribute assets with the rationale of sharing benefit
just as misfortune in equivalent way.
 Sole dealer business: A sole broker otherwise called sole ownership, singular enterprise
where the entire usefulness of the business is essentially done by individual or a solitary
individual. It is such a business element which doesn't requires any sort of legitimate
commitments to follow and can play out all the activities in a moral and methodical way.
Such association are acquainted by distinct's individual with procure their employment
where a few models are cantinas, craftsman and some more.
 Restricted obligation business: Another kind of organizations incorporates constrained
risk organization (LLC) where the proprietors of the organization has not been by and by
at risk for obligations, misfortune or liabilities of the organization (Gilbert and Tropin,
2020). It has been said that in a restricted obligation organization investor are not subject
for paying such an obligations, other than the sum put by them in the business substance
just as for the unpaid sum if any on the offers. Likewise, it is said that restricted risk
association are the mixture substances which consolidate highlights of both organization
and of sole ownership
 Public restricted risk business: It is such a business substance whose protections are being
exchanged on stock trade where every single individual can without much of a stretch
purchase and sell. Individuals go through parcel of cash to purchase the offers and stock
offered by organizations. It has likewise been recognized that these associations are the
person who needs to follow all the lawful approaches and techniques created by
legislature of the nation just as requires to distribute their actual monetary position. This
will help financial specialists to know the full, exact and genuine worth of the stocks.

Section 3
Different business structures and external factors affecting business
3.1 Examine different organizational structures as well as discuss how does organizational
structure influences business profitability and the productivity.
Organizational structure organisational structure alludes to how business exercises like
management, task allotment, just as coordination are guided for the accomplishment of business
goals and targets. It is said that authoritative structure profoundly impacts the activities taken by
supervisory group while taking such a choice. An association embrace structure of their business
as indicated by their prerequisites, objectives and targets. It is likewise said that an organization
can embrace more than one association structure as indicated by the need and necessity of the
organization. There are different sorts of hierarchical structure and a portion of these will be
talked about as follows:
Functional organization structure: A functional organizational structure separates the
association into offices dependent on their capacity. Each is going by an utilitarian director and
representatives are assembled according to their job. Useful administrators have involvement
with the jobs they regulate. This guarantees workers are utilizing their abilities viably. It helps
associations in accomplishing their business goals. Workers are characterized by their capacity in
this structure. The authoritative diagram for an utilitarian structure shows the job chain of
command: for instance, president, VP, fund division, deals office, client assistance, organization,
and so on. This enables the association to control the quality and consistency of their
presentation. These workers are gifted. They are knowledgeable about a similar work and they
perform incredibly; profitability is high in a practical structure.
.
Divisional organization structures: Another type of structure is divisional organizational
structure which categories and groups each and every organizational function in a division.
Every section consists all required resources and elements so that positive outcome can be
produced.

3.2 How different external factors affect the performance of a business – PESTLE Analysis
Pestle investigation of an organization is a system utilized by various advertisers so as to screen
and break down various outside showcasing natural elements which are affecting any business or
association. With the assistance of the consequence of pestle investigation any business can
without much of a stretch distinguish dangers and shortcomings of the business do you to the
outer condition will factors. There are different components concentrated fundamentally in pestle
investigation which are referenced beneath:
 Political variables: Political elements allude to each one of those components with respect
to the legislative intercession in the business. This may remember different political
steadiness or precariousness for various abroad market, distinctive outside exchange
strategies, charge approaches, work laws, administrative arrangements, natural laws just
as exchange limitations which are demanded in various nations. Every one of these
components help an association to realize how does government impacts their efficiency
and gainfulness. It is essential for a business to fundamentally dissect all the political
factors with the goal that they can take choices in regards to the current and foreseen
future laws in regards to advertising arrangements which may influence their
organizations.
 Financial components: Economic variables allude to every one of those elements in its
outside condition which are straightforwardly influencing the gainfulness of a business.
These incorporate is financial development, trade rates, extra cash, loan costs, etc. It is
important to fundamentally separate every one of these variables with the goal that
organizations can do utilize such factors for their expansion income and benefits
 Social factors: This may allude to all the social and social angles in a business which
incorporates shared perspectives and accepts of various populace which helps a business
in understanding the customer needs and prerequisites (Slack and Brandon-Jones, 2018).
It is important for a business to comprehend the wellbeing cognizance, perspectives,

populace development and age appropriation of the market which they are serving so as
to satisfy the prerequisites of purchaser and increment their gainfulness.
 Mechanical components: Technological elements alludes to the changing innovative
scene of outer condition. It is important for each business to fundamentally concentrate
better approaches for creating products, better approaches for circulating merchandise
and furthermore better approaches for conveying the merchandise to target crowd so as to
expand their gainfulness.
 Ecological variables: Environmental elements are one of the central point which have
been influencing efficiency and benefit in each business. It is important for each business
to ensure that they are not causing shortage of any asset in the earth (Bell, Bryman and
Harley, 2018). It is additionally vital for them to ensure they don't discharge a lot of
contaminations in condition. Government likewise investigate carbon impressions left by
organizations in the nature. This helps organizations in building their image picture in the
market.
 Lawful components: Legal elements alludes to the different laws and enactments, for
example, wellbeing and security laws, publicizing laws, buyer rights and customer data
laws which are collected by government so as to keep up rules and prerequisites in
business. It is vital for organizations to investigate these laws and tail them so as to
ensure that they don't confront any administrative mediation or legitimate procedures
which may cause misfortunes for the firm.
Conclusion
From the above report, it is reasoned that there are various sorts of association accessible, for
example, miniaturized scale, little, enormous and some more. Every one of these associations
have their own objectives and thought processes which are not quite the same as one another

however the final product is comparative which is expanding the monetary arrangement of the
nation.

Reference
Books and journals
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Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
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successful implementation of sustainable business practice in ‘lean’SMEs. Journal of
Cleaner Production, 218, pp.575-590.
Gilbert, I. and Tropin, H.S., 2020. LexisNexis Practice Guide: Florida Business Torts.
LexisNexis.
Huntington, J., 2018. Managing the Practice: Whose Business. CRC Press.
Kotusev, S., 2018. The practice of enterprise architecture: A modern approach to business and
IT alignment. Sk Publishing.
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