Analysis of Business Operations, Structures, and External Influences

This report provides a comprehensive overview of different categories of companies, including micro, small, medium, and large businesses, detailing their characteristics and operational objectives. It further explores various business structures such as sole trader, partnership, limited liability, public limited liability, and cooperatives, highlighting their unique features and implications. The report also delves into organizational structures, such as functional and divisional structures, and their impact on productivity and profitability. A significant portion of the report is dedicated to a PESTLE analysis, examining how political, economic, social, technological, environmental, and legal factors influence business performance. The report concludes by synthesizing these elements to provide a holistic understanding of the business environment and its impact on various business operations.

Business in Practice

Contents
Introduction.................................................................................................................................................4
Section 1 .....................................................................................................................................................4
Different categories of companies & their operations.............................................................................4
Section 2......................................................................................................................................................5
Evaluation of how different companies operate in the environment .....................................................5
Section 3......................................................................................................................................................6
Different business structures & external factors affecting operations........................................................6
3.1 Evaluation of organizational structures and how they impact on productivity and profitability.......6
3.2 External factor impact on business performance – PESTLE Analysis .................................................7
Conclusion...................................................................................................................................................7
Reference ....................................................................................................................................................8

INTRODUCTION
There are different category of business who are performing their operation with
difference in size, variations in executing business activity etc. The main aim of business is to
improve financial position of firm and enhance market performance by executing business
activity. In the present era it is identified that there are different business forms which are
working all together for achieving business growth (Aithal, 2017). Every business is having
their own set of objective which can be used for making effective business process & desired
business structures. The present report is based on different form of companies including their
characteristics, thereafter discussion about different business structure and influence of external
forces on business performance. PESTEL Analysis is done to analyze how environment factors
impact on business productivity.
Section 1
Different categories of companies & their operations.
In the present environment there are different type of companies that are having their set
predefined goals and objective. The common features of these corporations is their objective to
earn high profit and develop their overall business performance. The different form of business is
evaluated below as:
Micro or small business: These are referred to private firm which are mainly financed by
their friends, member of family and small creditors who are not having any past record of loan
payment & there is no assurance of repayment of money. The main aim of these business
organizations is to accomplish their personal need and maximize living standard of people in
desired ways. Example of these association are attire, footwear maker, horticulture etc. The
major motive of these business is not linked with satisfying personal obligation but enhance
values in the neighboring business area (Alaloul, 2017). In extra to this they are supporting
consumer power, employment opportunity, enhancing salary status etc. The companies which are
giving small finance helps micro business for providing limited money to companies. All this is
valuable factor for persons, families with low income to develop plans for starting their own
business operations. For Example, care should be taken of advance payment done by customers
with the passage of time duration for safety purpose. The total number of employees in this
association can be between 1 to 55.

Medium size business: These form of associations is having assets which are larger than small
organization and their employees are around 50 to 250 in number. It is identified that income level of
these business is about £35m. There are large number of medium business operating in the
economy that highly contributes towards the development of the nation. The major aim of these
business is related with expanding their business operations and earning high profitability in
effective manner. The example of these business association is Oak Cash & Carry executing
their activities in UK.
Large size business: This types of organization possess large opportunity and huge capital
investment, normally they hire highest number of employees for the accomplishment of goals
and activities at global level. This kind of association hire highest workers up to 250and their
main objective is to fulfil needs of customer, which directly helps in increasing the brand image
and increasing power at market place. This kind of organization normally make higher than 1.6
billion euros of turnover and sometime exceeds more than 2 billion euros. Some example of this
category of business include Amazon, Apple, Walmart etc. (Hui, 2020).
Section 2
Evaluation of how different companies operate in the environment
Along with the business of small, medium and large size there are other division of
business that can be easily accessed within the marketing area. It is evaluated that these business
are having their own way of executing business activity which are evaluated below as:
Sole trader business: This is evaluated as independent business unit whose owner is a
single individual. Apart from this is the most simpler business which needs very less monetary
value & legal protection for the persons running the business. They can easily get tax benefit as
the value earned is the personal income of the owner which is taxed only for once in a while.
(Caldera, 2019).
Partnership: These business division are mainly owned by more than one person who is
described as the business partner. In additional to this the partners are sharing the profit & loss
incurred among themselves in equal ratio. These business entity are having the advantage of tax
benefit as the value gained is of business owner was is taxed only once. The varied form of this
business consist of general, limited and limited liability partnership. In context of other

associations concept of partnership is considered as highly flexible and it also involves higher
risk.
Limited liability business: This is evaluated as very flexible business form that is linked
with the aspects of both partnership and corporations. Apart from this they have to select from
the tax treatments. However, the value of limited liability is having their own legal entity.
Public Limited liability business: In these form of business firm offers share to the
general people and persons who are purchasing their shares are having limited liability upon
them. Apart from this business is not having any responsibility for loss in business operations in
context of the additional amount spent on their shares. The main objective of these division is
having the ability of maximizing capital by delivering shares in public (Jaakkola, 2016).
Cooperative: This is distinct form of legal business that is mainly established by the
shareholders of the company. Apart from this incorporating these from safeguarding business
owner to become liable for debts & business disputes. It is analyzed that these business form are
challenging in context of the other business. These business consist of nonprofit company,
cooperation of shareholders etc. (Kurpayanidi, 2018).
The above matter depicts that there are various types of business which are being
operated & it is essential to focus on appropriate businesses so that funds are used in appropriate
way. It is necessary to focus on them so that everything is done in proper manner.
Section 3
3.1 Evaluation of organizational structures and how they impact on productivity and profitability
Organizational structure: It is described as the way how business activities are carried out
by considering people who are performing business operations. Apart from this it determines
how business unit allot each task, coordination among all the member of the group for attaining
set business objectives. It is identified that firm uses various organizational structures for
performing their task as designed by the higher authorities. The structure of business is set by
analyzing predefined goals & target. Firms are using different types of organizational structure as
per their convenience. The different form of organizational structures is evaluated below as:
Functional organization structure: It is a part of organization structuring, which help in
the selection and division of association functions according to their specificity. In this system

employees grouped together in relation to their respective filed of interest for the better outcome
of task and each team have leader related to their ability, aid to get highest growth of company.
This structural is manage by the upper managerial regime who possess power on the functions
done by the team. In this kind of organizational structure worker accomplish their work with
interest and passion by using their all power because the activity given to them are according to
their strength which in return give highest outcome of aims and objectives (Lee, 2019).
Divisional organization structures: This structural system divides the activities and
functions of organization into different units for example the aims and objectives of company is
important but the other most significant thing is division of work and function required to be
done for the achievement of goal, that is financial, operational department, HR. division,
marketing sector, and so on. So this system helps in the division of all work, turns in to
achievement of final aims (Nekrasov, 2017).
It is analyzed that structure depicts how workflow is carried out within an enterprise.
Each & every entity has different form of structure according to which decisions are taken by
business. According to structures, managers & leaders perform their roles & responsibilities.
3.2 External factor impact on business performance
Business environment is essential which comprises of external as well as internal factors
that affects overall organizational structure at wider scale. External factors have deep impact on
decision making & they which also impacts upon performance. So, PESTEL Analysis is being
used by company to determine external elements. It comprises of several components which are
discussed below-
Political factor- It is element in which it depicts how involvement of government within
an economy. In relation with business sector, all factors which are concerned with government
such as policy, corruption, foreign trade policy etc. impacted the entity. These type of elements
are non-controllable by enterprises.
Economic factor- It is another component in which it includes elements such as
inflation, deflation rate, disposable income of customers, exchange rates etc. In business sector,
such element has direct effect on long term & short term goals. These impacts upon several areas
like power of consumers, change demand & supply, etc. It also affects business performance

because strategies are to be implemented by HR which disrupts the work environment (Rantala,
2018).
Social factor- In this element, it includes religion, culture, perception of individual, etc.
These social factors are necessary to be examined so that because these elements within which a
business operates. These type of components are essential for marketers as because it helps them
in analyzing changing trends, behavior of customers towards brand or product etc. Therefore, it
is crucial say that it is necessary to use conduct a market analysis for gaining consumer insight.
Technological factor- With rise of competition in market, use of technology has also
increased. It includes use of advances software, hardware such as artificial intelligence, tools,
etc. In context with corporate world, technical field has been evolving with changing period of
time. Many businesses use technology in business such as use of social media platforms for
promoting brands, robots in company as assistant, etc. It improves business performance because
using of technology leads to accessing to customers at wider level.
Environmental- In this element, it includes factors such as whether, climate change,
green agenda, etc. These have been also affecting business because with extensible use of
resources, raw materials, etc. It is necessary for firm to carry out their activities with properly
following environmental conditions. It too impacts upon business performance because if firm is
not considering these elements then goodwill of company will be affected which also directly
affects way of doing business (Strzelczyk, 2017).
Legal- It is another component which comprises of rules, regulations, laws, etc. In this, it
is important for entities to have appropriate knowledge of all legal legislation because in every
country there are different types of rules regarding foreign & domestic business which are being
followed & adopted by enterprise at all aspects. Therefore, legal department of entity assures that
everything is carried out properly.
After analysis of above matter, it has been stated that PESTEL Analysis is essential to be
used so that business is carried out at workplace efficiently. Moreover, it is time consuming
process which is require reliable information (Zellweger, 2017).

Conclusion.
From the above report it has been concluded that there are various type of companies
performing operations at market area such as micro, macro & large organizations. It is identified
that every business is having their set business objective according to which they perform their
assigned task. PESTEL analysis helps business to develop insight about business activities.

Reference
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