University Project: BMP3002 Business in Practice - Company Analysis

This report, prepared for a Business in Practice course (BMP3002), provides a comprehensive overview of various business structures and types of companies operating within the United Kingdom. It begins by categorizing companies based on size, including micro, small, medium, and large businesses, and discusses their contributions to the UK economy. The report then delves into different company types, such as sole traders, partnerships, limited liability businesses, public limited companies, and cooperatives, highlighting their key characteristics and operational differences. Furthermore, the report examines different organizational structures, including hierarchical, functional, divisional, flatarchy, and team structures, and their impact on business operations. Finally, the report incorporates a PESTEL analysis, evaluating the political, economic, social, technological, environmental, and legal factors influencing businesses. This analysis provides a framework for understanding the external business environment and its effects on company performance.

BMP3002- Business in
Practice
Table of Contents

INTRODUCTION.................................................................................................................................3
Section 1................................................................................................................................................3
Different types of companies.............................................................................................................3
Section 2................................................................................................................................................4
Different companies..........................................................................................................................4
Section 3................................................................................................................................................6
Types of organisation structure..........................................................................................................6
PESTEL Analysis..............................................................................................................................7
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Business environment is the sum of various internal and external factors influences
the business operations of organisation. In this project different aspects associated with the
organisation and its structure. Henceforth, in this project different organisations will be
discussed. On the basis of the differentiation specified different organisations will identify in
this project. This project would also emphasis over sole trader, partnership, limited liability
business and cooperative businesses. Furthermore, this project would emphasis on various
organisation structures Impact of pestle analysis would also reflect in this project.
Section 1
Different types of companies
Business environment is comprises with different structures that cater different types
of companies and organisation. On the basis of the scale of business all the business
organisations are segregated into various types such as micro business, small business,
medium size business and large businesses.
Micro business: Micro business houses are the key part of the business environment of
United Kingdom. The contribution of micro businesses in the overall economic growth of the
United Kingdom is huge. All such business houses that carry less than 10 employees in the
organisation and contain the sales turnover of less than £2 million are a part of micro business
organisations in United Kingdom (Battistella and et.al., 2018). They contribute significantly
in the overall growth and development of business environment of United Kingdom. Majority
of the business houses operated in United Kingdom are belonging to the micro business
category. For example organisation call as Boss Brewing Company is a part of micro
business organisation in United Kingdom.
Small business: Small business houses are denoted as all such organisations that contain
more than £3.26 million and less than £6.5 million sales turnover and also the employees and
human resources associated with the organisation must be less than 50 employees. Small
business houses carry a huge contribution in the overall economic growth and the increasing
trend associated with the gross domestic product of United Kingdom. In United Kingdom
majority of the business houses are belong to the category of small business as approximately
99% of the overall business operate in United Kingdom are a part of micro or small business

organisations (Indarti and Kusuma, 2016). For examples organisations like Paid, Bewdley
Development and many others are a part of small business houses in United Kingdom.
Medium size business: All the business houses that carry a sales turnover of less than £12.9
million and do not have more than 250 employs in the organisation. All these businesses are
covered in the category of medium size business. The contribution of the medium size
business is huge in the gross domestic product of the United Kingdom. They not only
contribute in the overall economic growth of United Kingdom but also they serve
contribution in providing employment opportunities to the graduates and experienced
professionals based in United Kingdom. For example companies like Verdant Leisure,
Captify and many other organisation
Large business: All such businesses that do not meet any other category mentioned above
and contain more than 250 peoples as its human resources are a part of large size businesses.
Large business houses are few in United Kingdom as compare to other businesses operated in
the country. For example companies like Marks and Spencer, Tesco and many such
companies are denoted as large businesses.
The above mentioned segregation is associated with the United Kingdom business
environment. The segregation would support the economic growth of United Kingdom. The
segregation in the businesses is precise and supports the overall growth and development of
United Kingdom.
Section 2
Different companies
Different companies are a part of the business environment of United Kingdom.
These organisations are different on the basis of the characteristics, nature and on other some
grounds. Following are the demonstration of all these various businesses operated in United
Kingdom.
Sole trader business: Sole trader is a business house where entire business is operated by
only one individual. That individual is the sole authority in the business. The owner of the
business invets the entire capital required for operating such business. In United Kingdom
sole trader business are massive in number as it require small amount of capital to start the
business. The pricing of these businesses is also effective which also make these businesses

more successful in United Kingdom (Brogaard, 2019). As the name indicate sole trader
business comprises with only few employees along with the owner of the business as the
supreme authority in the respective business. For example Starling bank and many such
business houses are a part of sole trader business operated in United Kingdom.
Partnership business: Partnership is the type of business in which more than one individual
approach the business. In the business two or more than two people start the business. They
initiate the business at a very small level. All the partners of the business bring capital to start
the business. The capital requirement of small business is also not aggressive which also
motivate to many people to enter into the partnership business. On the basis of the partnership
deed all partners distribute profit generated out of the operations undertaken by partnership.
For example business houses like social chain, carphone warehouse and many such
businesses are a part of partnership businesses in the United Kingdom.
Limited liability business: Limited liability is another type of business. In this business
partners carry the limited amount of liability in the business. Only the amounts they have
ensured to pay in the business only to such amount the partners in the limited liability
business are liable to pay in the business. In case of failure of business they need to bear the
liability they assured in the business (Leiser, 2017). Limited liability business is also effective
in nature and contains much business as a part of the limited liability businesses in United
Kingdom. Companies like HM Revenue and Customs and many such companies are a part of
limited liability business houses in United Kingdom.
Public limited business: Public limited company is the company in the United Kingdom. All
such organization that are registered as the Public limited company in the companies act of
United Kingdom are a part of this business category. Limited company carries the right of
issuing share in the public holding. Thye can issue share at the stock exchange of United
Kingdom. People who are not even a part of the business are get the potential opportunity to
invest in the business operations of the company. They contribute significantly in the overall
economic growth of United Kingdom. In order to boost the economic growth in United
Kingdom public limited companies contribute massively. For example organisations like
Marks and Spencer Company and many such companies are a part of the public limited
company.
Cooperative: Cooperative business is also a crucial type of business operated in United
Kingdom. In this business at least five members are associated with the business. Every

member contains equal voting power in the organisation and its associated operations.
Irrespective of the level of investment in the company’s business they all get the equal voting
right in the business operations of organisation (Mishra and et.al., 2019). For example John
Lewis Partnership business, Co-operative group and many such business houses are a part of
the cooperative businesses in United Kingdom.
The above mentioned businesses are associated with different types of business
houses operated in United Kingdom. All the above mentioned types of businesses are a key
business houses operated in United Kingdom.
Section 3
Types of organisation structure
Businesses are structured in different manner. All different types of the structure
associated with the business houses can be projected in the following points.
Hierarchical structure: Hierarchical structure is a type of organisation structure. In this a
chain is developed from top level management to the employees. It creates hierarchy like top
level management, executives and employees (Rückeshäuser, 2017). This is a simple
structure which keeps the operational flow simple and effective. In case of sole trader this is
an effective organisation structure as it makes the owner control each aspect of functions in
company. This structure improves the overall productivity of the organisation as it keeps the
operation flow simple and effective. Management and owner get to control every single
functional activity in the organisation through this structure of organisation.
Functional structure: Functional structure is among the most common organisation
structure which may company’s usage. This structure segregate employees based on the skills
and abilities into different functional activities of the company. It includes hierarchy that
denoted as different departments under the top level management. The senior authorities in
the organisation get to control every functional department in the organisation. Under the
direction of the designated leaders in every functional department every operation of the
company is operated. This is the best way to structured big companies. It allows the
organisation and management to control the efficiency of every single functional area of the
company. Functional structure is the best way to control each and every functional direction
of the organisation.

Divisional structure: Divisional structure is another key type of organisation structure. In
these organisation structure entire operations of company is segregated into different
divisions. On the basis of the location these divisions are formed (Winterhalter and et.al.,
2017). All such companies that contain the global business functions are a part of this
organisation structure. It support the organisation in managing the huge business scale in a
very convenient way. Globalised companies use this structure to manage its entire business
scale. Work efficiencies also managed in this structure.
Flatarchy structure: Flatarchy structure is a organisation structure in which there is no such
specific structure. In this structure on the basis of the needs and requirement of organisation
this structure is the most preferred structure in small companies and organisation. Flatarchy
name itself denote that organisation contain only the flat structure.
Team structure: Team structure is another key organisation structure. In this operation and
functions of company are segregated into teams. Every team approach the operations.
The above mentioned structure is a part of organisation. Different structures cater the
organisation in different manner.
PESTEL Analysis
Business environment is a sum of different internal and external factors influences the
business operations of organisation. In order to evaluate various external factors PESTEL
Analysis is a wide used tool to identify the impacts of all different external business
environment factors.
Political factor: Political factor involve policies of the government in United Kingdom
towards the corporate sector of country. Political factor is among the key external business
environment factor influence the business operations of organisation. Policies formed by the
government influence every single functional activity of the company.
Economic factor: Economic factor is another critical business environment factor influences
the business operations of organisation (Zhao, Zhang and Wu, 2017). This involves the
economic position and condition of United Kingdom influence the operations organisation.
Social factor: Social factor is another key external business environment factor influences
the business operations of organisation. This involves the attitude of people based in United

Kingdom and other such factors. Trends and fashion associated with the market is also a part
of the social factor.
Technological factor: Technological factor denote all the technological development and
advancement of country. This is the factor that involves the government approaches towards
enhancing the technological capability of the organisation.
Environment factor: Environment factor denote the eco friendly services and products.
Different corporate social responsibility operations are also associated with the environment
factors part of external business environment.
Legal factor: Legal factors comprises with all different laws and legal regulations associated
with the United Kingdom.
The above mentioned factors are the key external business environment factors
influence the business operations of company.
CONCLUSION
Businesses are segregated into micro, small and other types of organisation. Structure
of company is also distributed into different types such as flat, team structure and many other
such structures. Business environment is a sum of different external and internal factors
influence the business functions of organisation. External factor involve political, economic,
social, technological and other such external factors impact over business functions.

REFERENCES
Books and Journals
Battistella, C. and et.al., 2018. Sustainable business models of SMEs: Challenges in yacht
tourism sector. Sustainability. 10(10). p.3437.
Brogaard, L., 2019. Business value in public-private partnerships: The positive impact of
trust and task-relevant competencies on business outcomes in PPPs. International
Public Management Journal. 22(4). pp.617-642.
Indarti, N. and Kusuma, G. H., 2016, December. Types of knowledge transferred in family
business succession. In 2016 IEEE International Conference on Industrial
Engineering and Engineering Management (IEEM) (pp. 646-650). IEEE.
Leiser, S., 2017. The diffusion of state tax incentives for business. Public Finance
Review. 45(3). pp.334-363.
Mishra, D. and et.al., 2019. Role of decoupling point in examining manufacturing flexibility:
an empirical study for different business strategies. Total Quality Management &
Business Excellence. 30(9-10). pp.1126-1150.
Rückeshäuser, N., 2017. Typology of distributed ledger based business models.
Winterhalter, S. and et.al., 2017. Business model innovation processes in large corporations:
insights from BASF. Journal of business strategy.
Zhao, L., Zhang, H. and Wu, W., 2017. Knowledge service decision making in business
incubators based on the supernetwork model. Physica A: Statistical Mechanics and
its Applications. 479. pp.249-264.