Business in Practice: Organizational Structures and PESTEL Analysis

This report provides a comprehensive overview of different types of companies, including micro, small, medium, and large businesses, and examines how they operate to achieve their objectives. It delves into various organizational structures such as sole proprietorships, partnerships, limited liability companies (LLCs), and cooperative enterprises, analyzing their unique characteristics and operational approaches. The report further explores organizational structures, including functional and divisional models, and their impact on business productivity. A significant portion is dedicated to PESTEL analysis, a crucial tool for assessing the external environment by examining political, economic, social, technological, environmental, and legal factors and their effects on business operations and strategic decision-making. The report emphasizes the importance of adapting to external factors and choosing appropriate organizational structures for effective business performance.

Business in Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1..........................................................................................................................................4
Describe various kind of companies and how they work in effective manner...........................4
Section 2 .........................................................................................................................................5
Examine different type of companies which operates business effectively. .............................5
Section 3 ........................................................................................................................................6
Critically analysis of different organisation structures and explain various factors which
affects the business probability and productivity of company...................................................6
Explain the external factor and how they affect business environment so conduct PESTEL
analysis. .....................................................................................................................................7
CONCLUSION...............................................................................................................................9
REFERENCES...............................................................................................................................9

INTRODUCTION
In present scenario, organisation performs a various activities in order to attain
goal and objective of company. It uses a tools and techniques to smooth way perform a
operations on the basis of different size and shape along with different motives and
purpose (Enneking, 2017). It also helps to improving profitability and productivity of
company. Business faces cut throat competition in the market so accordingly plan their
policies and strategies to grape opportunities at marketplace. It has been organisation
established their own vision, mission, objectives and targets of firm. In this report, study
about different types of organizations established in order to gain profitability and satisfy
the needs and wants of customers. Along with this various organizational structure
which followed by enterprises on that basis accordingly adapting functions so
influencing profitability of the firm. PESTEL is effective tool which helps to analysed the
external enviorment.
Section 1
Describe various kind of organisation in order to effectively accomplished work.
In present context, There ample number of companies which operates their
business function in order to achieved a goal and objective of company. These kind of
organisation establish for similar kind of objective to earn profits and it's adding value in
our economy. There are so many organisation run their business so mention below.
Micro or small business-: Micro small business organisation structure refers to
those which only 9 or less employees (Hussaini, 2019). These kind of firm operates
business functions very small level which comes under small start up and dealing small
products which known as hand made items. It turnover very small in numbers such as
less than two million so fall in under micro or small business enterprise. It is owned by
single person who owner of company and individual controlled and monitored business
function. In these company centralised decision system because single person takes all
types of decision related to business. Single person considered as sole traders, self
employed and family business.

Medium size business-: These kind of businesses includes slightly larger size
from small and micro business because utilise more resources in term of human
resources and involves more funds to start business. This business model earns more
profit rather than small or micro business so income as thirty-six million approx and
number of employee are working 250 employees. It establish to enhancing profitability
and achieved objective of company. They work together to achieve common purpose of
company (Corazza, 2019).
Large size business-: Large scale business refers to those which including
organisation in order to investing huge amount of capital and required able and capable
human resource in order to produces goods and service at large level. They owned
company by mutual understanding and set as mission and vision of company. It
involves in various activities related to business and at least have 5000 employees are
worked. They profit turnover approximately 1.5 billion euros which is more than other
business model.
Hence, there are various kind of business which works in systematic manner in order to
increasing profitability and productivity of company (Wilshusen, 2019).
Section 2
Examine different type of companies which operates business effectively.
There are so many firms which operate a business in order to gaining profitability
in future. Sole traders, partnership, limited liability business and cooperative firm all are
considered as they owned way of working and gaining competitive advantages. They
utilise various process in order to smooth functioning of business activity. Similarly ,
various companies which are mentioned below. Sole proeritership-: These kind of business model which owned by single
people and monitored and controlled are the business function effectively. It also
known as sole proprietorship, individual entrepreneurship where the handle all
business operations performed by individual or a single person. They single
person responsible to all things and individually decision making no one
interference in that there are not required any kind of legal documentation.
Individual person adapting working style they want to do work in systematic

manner. There ample number of example of sole trader like saloons, carpenters,
painters and many more. Partnership-: These kind of business forms which run by business two or more
individual. They are set up business to achieved a common purpose and mutual
understanding. It way of working in very effective manner and achieved business
objective in order to collaboration and coordinated work with each other. Partner
liable to share profits and loss of the company accordingly equally contributes
capital in business. They are so many legal obligations sign each partners on
documentation process because it is contract or agreement between partners.
Limited liability business-: It is form of business structure which refers to limited
liability company (LLC) when company not earn adequate profit becomes failure to run
business so there owners are not personally liable for that. Owners only pursue a
limited liability in order to paying sort of debt, amount invested in firm and loss of
company (Pham, 2020). It also shareholder has been limited liability because unpaid
amount if any on the shares. Organisation considered as included both type of features
are partnership and sole proprietorships firm. Under that various organisation structure
so discuss below. Public limited liability business: It is another form of company where buy and
sell of securities in market in order to achieved objectives of company. It is
market where number of buyers and sellers gathered at market place because
traded on stock exchange so it is conveniently buying and selling of securities.
Public company issue share and bonds and inviting applications so people
spend lot of money to purchase the shares and stock. These kind of company
follow rules and regulation which developed by government of country along with
to known the guideline about financial position (Oluoch, 2016).
 Cooperative enterprises: It is another form of business enterprises in order to
fully private business. It includes managed business opertaion by those people
which utilising products and services. In addition to this, it is structure formulated
on the basis of customers needs and wants which are essential to fulfil,
objectives are predetermined due to accomplished proper time frame. Along

with, on that basis organisation using effective strategies and policies in order to
achieved specific purpose.
All of the above concept, it analysis the various business entity and how they
performed business functions for achieved common purpose. These includes
operates business operations on the basis of rules. Regulation and norms
(Nallusamy, 2016).
Section 3
Critically analysis of different organisation structures and explain various factors which
affects the business probability and productivity of company.
Organizational structure-: It is structure which refers to how business activities
such as supervision, task allocation, as well as work together in effective manner so
easily attain targets of company. These kind of business structure includes
management team which play vital role in decisions making process. It is flexible and
dynamic form so easily adapting changes on the basis of requirements, goals and
targets. It developing new policies and strategies in order to smooth functioning of
activities. In addition to this, There are different kind of organizational structure so which
are discuss below.
Functional organization structure-: These type of an structure refers to those
which including company because superiors properly division of work and assign to the
team members. It involves various departments in organisation they perform their
functions on the basis of their roles which are predefined roles and responsibilities of
each department as well as employees performed activities on the basis of knowledge,
skills and capabilities. It followed procedure which work in vertical structure every
department with the roles decided by top level management. All the business functions
linked to each other and work together. This structure performed activities in effective
manner and highly influences the profitability due to work with coordinated. Therefore, it
consider to properly maintaining flow of information with the team members so reducing
confusion. (Jammulamadaka, 2017).
Divisional organization structures-: It is different type of form which known as
divisional organizational structure it includes various forms in order to companies

perform their functions under different division. Each division considered as class in
order to essential resources which helps to smooth manufacturing process. In
organisation divided into different division such as human resource department, sales
department, finance department, customer service department and many more. These
kind of organizations structure work in very systematic format and accordingly plan their
strategies and increasing productivity of company. It includes provides cooperation with
each other and clearly communicated policy according to the requirements (Garrigues,
2018).
Explain the external factor and how they affect business environment so conduct
PESTEL analysis.
Pestle is the model which helps to analysis to a company because examine
macro environment which are affecting organisation business. It is tool and framework
which evaluates different business condition and identifying weaknesses and threat for
the company with help of these elements. There are ample numbers of elements which
are mentioned below.
Political factors-: Political factors which including that factors about the
governments making policies, rules and regulations towards intervention in the
business. It may includes various different policy, rules and regulations in different
overseas market along with trade restrictions. It involves various factors which helps to
organisation easily assesses conditions how governments influences their productivity
and profitability. These factors necessary for organisation on basis organisation taking
important decision related to business operations and functions.(Hussaini, 2019).
Economic factors-: Economic factors play a vital role to analysis this factor
which are impact on business operations and productivity of company. It involves in
economic factors like growth, inflation rate, deflation rate, tax rate and interest rate and
many more. Organisation evaluates these factors because it helps to determine
revenue and profit for the company.
Social factors-: Social factor is important factor because it includes values,
beliefs and attitude in the context of different individuals. On that basis of these factors
organization helps to easily understanding the consumer needs and requirements.
These factors helps to determine the health consciousness, attitudes, different

perception of customers and distribution of the market because satisfied the needs and
wants of customers.
Technological factors-: In present context, this component refers to those
which drastically environment change very fast and also affect the business process of
company. Noe days organization utilize different technology in order to using advanced
technology regarding manufacturing of products and services effectively. Most of the
company utilize advanced technology to increasing productivity of company (Enneking,
2017).
Environmental factors: Environmental factors plays crucial to because impact
on goodwill and sustainability of organization. It includes various aspects in order to
wastage of disposal, recycling of products and biodegradable Organization adapting
those techniques which cannot harmful for environment like recycle of products and
utilize biodegradable. All the activities affect the business goodwill and image and it
helps to developing brand image at the marketplace (Corazza, 2019).
Legal factors: This factors plays vital role because it including legislation,
consumer rights and employment contract act which all are the affects business model
and government prescribed about rules and regulation so it is fulfilled by company as
per norms. Organization bound to followed all the conditions and rules because it helps
to easily conducting the business.
CONCLUSION
From the above report it has been concluded that, it included various types of
companies have different objectives, rules and size. Company establish which has own
motive and goals as well as adding value in our economy along with it has also been
examined that there organizational structure in order to their smoothly flow of business
activity and easily achieving organisation goal and objective of company. It includes
organization adapting effective structure which result as their policies, strategies and
according to the needs and wants. Further, it has also been analysed the PESTEL
model because their factors affects the performance of company.

REFERENCES
Books and Journals
Corazza, L., 2019. The standardization of down-streamed small business social
responsibility (SBSR): SMEs and their sustainability reporting practices.
In Social Entrepreneurship: Concepts, Methodologies, Tools, and
Applications (pp. 670-685). IGI Global.
Enneking, L., 2017. Paying the price for socially irresponsible business
practices?. Aktuelle Juristische Praxis/Pratique Juridique Actuelle, 26(8),
pp.988-997.
Garrigues, E., 2018. A review of industrial aeroelasticity practices at dassault aviation
for military aircraft and business jets.
Hussaini, A., 2019. Organizational management through strategic planning and financial
practices: An empirical assessment from business firms of
Kuwait. Management Science Letters, 9(5), pp.713-726.
Jammulamadaka, N., 2017. Indian business: Notions and practices of responsibility.
Taylor & Francis.
Nallusamy, S., 2016. A proposed model for sustaining quality assurance using TQM
practices in small and medium scale industries. In International Journal of
Engineering Research in Africa (Vol. 22, pp. 184-190). Trans Tech Publications
Ltd.
Oluoch, J.O., 2016. The impact of cash management practices on performance of
SMEs: A survey of SMEs in Eldoret Central Business District. Journal of
Economics & Finance, 7(6), pp.01-07.
Pham, H., 2020. Impact of human resource management practices on enterprises'
competitive advantages and business performance: Evidence from
telecommunication industry. Management Science Letters, 10(4), pp.721-732.
Wilshusen, P.R., 2019. Environmental governance in motion: Practices of assemblage
and the political performativity of economistic conservation. World
Development, 124, p.104626.