Analysis of Business Structures, PESTLE Factors, and Tesco's Practices

This report provides a detailed examination of various business structures, including sole proprietorships, partnerships, corporations, and limited liability companies, outlining their characteristics, advantages, and disadvantages. It explores the concepts of micro, small, medium, and large organizations, differentiating between sole traders and cooperatives. The report also analyzes the external environment's impact on business performance through a PESTLE analysis, focusing on political, economic, social, technological, legal, and environmental factors. A case study of Tesco illustrates how these structures and external factors affect the company's operations and strategic decisions, providing practical insights into real-world business practices and challenges. The report concludes with a summary of the findings and a discussion of the implications for business management and strategy.

Business in practises

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Different types of organization....................................................................................................3
Different companies.....................................................................................................................6
various business structures...........................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business practises include various activities that business conduct to achieve its
objectives. Business practises are the procedure which an individual business effort to do the
work in most effective manner (Tura, Keränen and Patala, 2019). Basically the organization uses
to make the guidelines for doing the business practise to assure that the employees are
performing the work effectively. Tesco is a multinational organization uses to do retail business
in the world. This report will evaluate on the basis of Tesco the different types of organization in
the market and their way of doing work and different companies sole traders, cooperative and
liability partnership with their characteristics this will further evaluate different business
structure and their affects on productivity of business with pestle analysis find the external
environment affect the performance of business.
MAIN BODY
Different types of organisation
BASIS
Definition
Micro
 These
companies
are
generally
very small
with the
employees
as well as
Small
 Small-size
companies
are small
in area as
well as
numbers
of
employees
Medium
 Medium
size
companies
are
basically
had
turnover
of 25 to
Large
 Generally
large
organizati
on have
lost of
employees
to perform
their

annual
turnover.
 Micro
enterprise
s run with
micro
credit
which are
allotted
with a
person
having no
indirect
credit
feedback
(Meng
and et. al.,
2018).
 Micro
companies
mostly
involved
in trading,
food
business,
art and
culture of
a limited
society
(Fan, Ai
and Piao,
which is
defined by
governme
nt
enterprise.
 These
organizati
on uses its
size to
granting
loans to
perform
their
activities.
 Small
companies
contribute
s in local
or regional
economy
and help
the
individual
society to
innovate
and grow.
500
millions
annually.
 They may
have
employees
around
250 in the
organizati
onal
activities.
 Medium
size
companies
are
basically
manufactu
re of some
commodit
y,
transport
enterprise.
organizati
on
activities
(KLIMEC
KA-
TATAR,
2020).

2018).
Characteristics  Micro
companies
are having
lower
turnover
so it
generates
less
revenue
and profit
(Cojocaru,
2017).
 Micro-
size
enterprise
have less
strength of
employees
to work
because
their area
of
operation
is small.
 Micro
companies
are owned
by sole or
in
 Small-size
organizati
on are
owned by
individual
person.
 Small-size
business
owner
used to
control
and
manageme
nt by self.
 Medium
size
companies
are
passionate
towards
the work.
 Good at
dealing
with
consumers
who are
difficult to
handle.
 This
corporatio
n used to
be calm
under
difficult
situation.
 These
companies
involve in
mining
and
manufactu
ring of
products
and
having
great
revenue
annually.
 Large
organizati
on
generate
fund for
research
and
developm
ent
process
which
have to
done with
new
technolog

partnershi
p (Bešlić-
Obradović
and
Bešlić-
Rupić,
2020).
y.
 Large
companies
have big
operation
so their
product
cost is
minimized
by the
company.
Example Boss Brewing
organization is
micro-size
organization of
Great Britain
provides beer
brewery and
owned by female.
Cafe-pod coffee
is a small-size
organization
provides coffee
and its types in
London.
Verdant leisure is
a holiday tract
organization in
England.
Amazon is a large
company used to
provide different
product globally
and having its
stores worldwide
to interact with
customers.
Different companies
Basis Sole trader Cooperatives Liability partnership
Definition Sole trader is also
known as sole
proprietorship. This
type of company
establish with simple
documentation and
owned by single
person (Everhart,
This is generally
private organization
governed by individual
used their commodity,
supplies or services.
Defined by a
coordinative individual
who used to achieve its
These companies have
partners who have
their limited liability
and every partner in
the company is not
liable for others
misconduct.

2018). business task.
Characteristics The sole trader is
governed by single
person of society. The
individual bring fund
in business for
performing different
activities and the
owner is also manager
of the company.
In sole trade there is
quick decisioning
happens because there
is not consulting take
place only one person
take all decision.
Sole trade have
unlimited liability
because if the asset are
not capable to repay
then owner personally
add money in
company to resolve it.
Individual try a lot to
expand its business
and take all the profit
as it is sole proprietor
company.
There are generally
less government laws
than other sole trade is
The cooperative
companies mainly
consist of voluntary
membership because
its has the principle to
involve any person
with its interest and
continue till its desire
(Marcos-Pablos,
García-Holgado and
García-Peñalvo, 2019).
The cooperative
companies
membership is open in
every point there is no
discrimination occurs.
The finding in
cooperative companies
come with its partners
who used to purchase
companies shares as
these company's are
build by poor section
of society so
government have set a
limit to purchase the
amount of shares in
cooperative
companies.
The liability is
The limited liability
have separate lawful
entity from its
partners. The company
its act as a person and
have unlimited
capacity to do
something like a
partner.
Partners have their
limited liability up to
amount which has
been contribution with
company there are
some situations where
the liability my
extended. These are
negligence, wrong
trade and many more.
There is separate legal
entity though its
partners, the limited
liability is tax purpose
as the partners are tax
partners. They have to
pay tax on income and
profit of the
organization.
The limited liability
have flexibility in their

set free from
government legal
formalities.
Sole trade is not
having any separate
legal entity as there is
no involvement of
government.
The sole trader are
having their secrecy
because single person
is operating and
managing all the
activities of company.
different in
cooperative
organization it may be
limited or unlimited.
Cooperative
companies is control
by democracy.
The capital interest is
also limited in
cooperative companies
as it become necessary
to run a cooperative
business.
The annual profit is
not distributed among
partners according to
their ratios.
Cooperative company
have to transfer its
25% profit to general
reserve which will
used in welfare of
society.
These companies are
basically established to
provide useful services
and having objective
to earn profit.
organization. The
enterprise agreement
of such companies
involve profit & loss,
property of owner,
meeting for decision,
and more (Heese,
Srinivasan and Kelley,
2019).
The LLC's owners are
their member the
member themselves
can manage the
activities of
organisation or can
appoint a manager
who can manage the
work as well.
Example BRAY control limited
is a sole trader
organization used to
East of England is a
cooperative company
providing food and
KPMG is a limited
liability organization
provides professional

provide accessories
and spare parts.
beverages in Britain. services to its
customers.
Various business sturctures
Business structure is a lawful structure of any organization which is recognized in given
jurisdiction. With the help of business structure anyone can determine the actions or work which
is performed in the organization. While choosing the business structure the owner should check
its wants and objectives to achieve and features of different business structure.
Sole proprietor: This type of ownership is owned by single individual who operate whole
company by self if the owner needs to work alone and not liking the consulting others. In this tax
involvement is there because the income and expenses which organization is facing are all
personal because only single person is owing the business. The government has setted the
payment method for sole trader to pay their taxes in four instalments. As the sole trader the taxed
ones in a year as other structure of business. Sole proprietor has full control on its business due
to single owner. There are some drawback also for owner that the complete liabilty is faced by
single person and owner is responsible to repay the liabilities this makes the business run under
high risk.
Partnership: in this type of ownership there are generally more than one people as owner there
are basically two types of partnership general and limited. In General partnership members are
performing their activities and operate business with assuring liabilities of partnership and
limited partnership members used to function as capitalist and not having control over business
there liabilities are also differed from normal partners. The limited partnership is not a good
ownership as it offer less benefit and high investment to owner when we compare it with general
partnership.
Cooporation: this organization structure is complex and expensive as well which offer
independent lawful entity which separate others from owner. The cooperative company used to
have more laws and regulation.

Tesco is having corporation business structure as its structure have hierarchical shows the
big size of company, Tesco have 10 members in board. Tesco is using this structure because the
owner who can take decision for incorporate the liability's protection. Cooperative company also
not consider the corporation debt as personal to owner so there is no private assets at danger.
Tesco have taken this structure because this structure have ability to build more revenue as
compared to other structures. Tesco can sell its stock which are preferred or common. Tesco can
continue when one of their member got die. As the corporation company Tesco is following
complex legal formalities then sole proprietor and partnership.
Limited liability's company: in this business structure the liabilities of business owners are
generally limited to there share in the organization. The owner is not responsible for any debts
and liability of the company. The limited liabilities is mostly same as of cooperative company
according to the taxation of members and features of ownership are basically same.
PESTLE analysis
Pestle stands for political, economical, social, technological, legal and environmental this
tool is used to find the extrinsic factor affecting business from outside the business and business
have no control over it. Tesco is an multinational company having its headquarter in Britain. It is
second largest retailer in the market of UK. Tesco used to provide food and other items like
electronics and finance service to its potential customers.
Political factors: tesco is a worldwide organization so there are different political environment
who used to affect the productivity of Tesco at their respective stage. The political environment
consist of tax rates in different nation in the world. Due to current situation many government is
encouraging Tesco to build recruitment opportunities for there country people in there
production cycle this is give opportunities to Tesco to grow more as there production will
increase ultimately lead to increase in profit.
Economic factors: Tesco is concerned with economical factor because Tesco have to do its
production activities in the economy so if there is any change in the economy then Tesco should
have to be aware about that to stand out in the market and to survival for a long time in the
market. Weather Tesco is sell its product internationally but than also Tesco should have to
focused of economy in which the company lies.

Social factors: Tesco market get influence with the society because the customer preference
play a great role in the profit maximization of Tesco as due to different changes in the society the
customer want to by goods in bulk. So the company used to offer lots of products in sale. As due
to COVID customers are being aware about the safety so Tesco had adopted this change and
offers organic product to its potential and fresh customers.
Technological factors: Tesco can change its sell with innovation in its production techniques
because today's customer find new technology in the market and if Tesco has adopted a fresh
technology then more fresh customers will attracted towards the company.
Legal factors: Tesco is also effected the laws and policies set by different nation's government
because it is international companies and have to deal with every nations laws.
Environmental factors: the market of Tesco is also effected the climate in which the business in
performing its production activities.
CONCLUSION
This report concluded that the business practises are those activities which are designed
by business for reaching to its objectives. The business try do give vision to its employees so that
they can perform better towards the goals. There are different types of organization with
different size and scope all the organization have different area to operate and different
employee's strength. Organization are of different type sole trader, cooperative and limited
liabilities and having different laws and regulation, this further conclude the business structure
with Tesco corporation structure.

REFERENCES
Books and Journals
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sustainable business practices in business networks. Industrial Marketing
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KLIMECKA-TATAR, D., 2020. Safety Management in Quality Management Approach-The
Context of Safe Working Conditions in Micro-, Small and Medium-Sized and Large
Enterprises.
Meng, B. and et. al., 2018. More than half of China’s CO2 emissions are from micro, small and
medium-sized enterprises. Applied energy. 230. pp.712-725.
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INTERNATIONAL MULTIDISCIPLINARY SCIENTIFIC CONFERENCE ON
SOCIAL SCIENCES AND ARTS SGEM 2017 (pp. 447-454).
Fan, S., Ai, Q. and Piao, L., 2018. Bargaining-based cooperative energy trading for distribution
company and demand response. Applied energy. 226. pp.469-482.
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International Conference on Technological Ecosystems for Enhancing
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Heese, J., Srinivasan, S. and Kelley, J., 2019. Accounting Fraud at Tesco Stores (A).