Business Practices: Organizational Structures and External Impacts

This report provides a detailed analysis of business practices, focusing on organizational structures, legal entities, and the impact of external factors. It begins by categorizing businesses by size, including micro, small, medium, and large enterprises, highlighting their characteristics and examples. The report then examines different legal structures such as sole proprietorships, partnerships, limited liability companies, public limited companies, and cooperatives, outlining their features and providing real-world examples. Furthermore, it explores various organizational structures like functional and divisional structures, and discusses how external factors such as political, economic, social, technological, legal, and environmental elements influence business decision-making and performance. The report concludes by emphasizing the importance of adapting to these factors for sustained success and profitability. Desklib offers a wealth of similar solved assignments and study resources for students.

BUSINESS IN PACTICES

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK 1............................................................................................................................................4
MICRO business:.........................................................................................................................4
Small Size business:....................................................................................................................5
Medium size business:.................................................................................................................5
Large Size business:....................................................................................................................5
TASK 2............................................................................................................................................6
Different companies such as sole trades, cooperatives or limited liability partnership...............6
Sole trader business.....................................................................................................................6
Partnership:..................................................................................................................................6
Limited Liability:.........................................................................................................................6
Public limited liability business...................................................................................................7
Cooperative:.................................................................................................................................7
TASK 3............................................................................................................................................7
Organizational structure and external factors..............................................................................7
The performance of a business organisation is influenced by external variables........................8
CONCLUSION................................................................................................................................9
REFRENCES...................................................................................................................................9
Books and Journal........................................................................................................................9

INTRODUCTION
Business practices and activities are the kind of set of guidelines ideas and ethics which
represent the efficient course of activities in a given business situation. The amended and
effective practices may be formulated by the authorities like regulators or governing bodies so
that they can manage the organization team internally (Abeyrathna and Kalainathan, 2016). This
report will going to explain about the different kinds of organization and their legal entities. In
addition to this, this report also going to analyze different internal and external factors which
create impact on the organization. Along with this, this report also described about the sole
traders business partnership limited liability business and public limited liability business in
cooperative. This report also going to describe the different business structure and how external
factors create impact on the business.
MAIN BODY
TASK 1
Organization and companies can be described cotton two characteristics which is legal
structure and size of the company. According to the size there are various kind of organization
which are generally measured and evaluated by the support of number of the workers and their
investment and turnover in the organization. The classification of every kind of organization at
based on size which is mentioned below:
MICRO business:
Micro businesses are often characterized as tiny businesses with fewer than nine workers and a
balance sheet or yearly turnover below a certain threshold. Micro businesses vary from small
businesses in that they operate on a much smaller scale. As a result, they may face a variety of
problems and obstacles. Companies of this nature have fewer assets and less market monetary
stability(Aljayi, Guennioui and Tamek, 2016)
.
Characteristics of micro business:

These are the kinds of businesses that are self-motivated and trustworthy. They know
how to keep their personal and business lives distinct. They are considerably more focused on
completing the work and achieving the objectives because to their size.
Example:
Small scale industries, food companies, trade establishments, agricultural businesses, and
other similar enterprises are examples of micro business organisations.
Small Size business:
Small-scale businesses have more than 9 employees but are smaller in size and have
lower yearly income than larger businesses. Because the businesses are tiny, they require less
capital and generate poor sales and returns on their limited resources(Willcocks, and Lacity,
2018). This sort of company has small groups that work together to produce effective income to
the corporation while maintaining adequate self-motivation and self-reliance.
Example: Internet firms, coffee shops, catering services, and many others are examples of small
scale company enterprises to explore.
Medium size business:
Companies that employ more than a hundred but less than 250 people are classified as
medium-sized businesses. This sort of business is typically not reliant on outside sources for its
manufacturing, and it also has a minimal level of product dealing and sales. Medium-sized
businesses have a restricted amount of capital since they have a small number of consumers.
Example: Window manufacturing, furniture makers, and other industries and manufacturing
sectors might be explored for medium-sized businesses.
Large Size business:
Large commercial organizations are ones that have invested a significant amount of
money in infrastructure and raw resources. An organization that is regarded to be enormous in
size has features such as a high number of employees and a complex management chain of
command (Aziz, Manab and Othman, 2016). The high number of clients, business relationships,
big business communication, and large turnover are all qualities that may be used to describe
large commercial organizations.
Example: Large businesses include companies such as Google, Apple, and some others
organization.

TASK 2
Different companies such as sole trades, cooperatives or limited liability partnership.
Companies are often separated into distinct segments based on the legal framework they
use. Organizations function in a variety of ways and have distinct legal frameworks. The legal
structures of several sorts of corporations are described here.
Sole trader business
These business are also called as sole proprietorship Organization in which the
organization is operated by individual who are liable to get a entire amount of profit and loss and
who must pay taxes by themselves. The many qualities of a sole trader firm include the fact that
it is owned by one person, it has a rapid decision-making process since the owner as an
individual has complete flexibility to operate efficiently, and it is subject to fewer government
restrictions.
Examples: Plumbers, electricians, decorators, and many other types of single traders are
examples of sole traders.
Partnership:
Partnership is a kind of legal agreement between two or more than two people which is
telling the rules and situation of the organization as well as the distribution of loss and profit
between the partners so this concept is known as partnership(Gelbrich, Stedham and Gäthke,
2016). The presence of a partnership deed, also known as a partnership agreement, unlimited
liability, the interest in the partnership cannot be transferred or sole to any other person without
the permission of the other partners, two or more people are required to start a business, and
many more are some of the main characteristics of this type of business.
Examples: Partnership agreements include GoPro and Red Bull, Uber and Spotify, and Apple
and MasterCard, to name a few.
Limited Liability:
A limited liability company (LLC) is a form of company in which partners are only
responsible for the amount of stock they own in the company. It is a unique type of partnership
in which members participate in the formation of a distinct firm. A limited liability company
(LLC) is a type of business that is formed by people and operates under the Companies Act. A

limited liability company has a number of features, including limited liability, distinct legal
entity status, and the inability to issue public stock.
Example: Consider a limited liability corporation whose name begins with STULLC, where LLC
stands for Limited Liability Company, John Lewis Partnership.
Public limited liability business
Volunteer members form public limited corporations, which are established in an
organization and have their own legal entity with limited liability. These are firms that are listed
on a stock market and where shares and stocks may be freely traded. It's a legal entity in its own
right. Shareholders can sell their stock to the general public in this sort of corporation. Liabilities
of members are restricted (Habibi, Davidson and Laroche, 2017). The responsibility of the
shareholders is restricted, and they are not responsible for any losses or obligations incurred by
the corporation.
Example: PLC, which stands for public limited company, is added to the end of the company
name in this form of corporation. : AstraZeneca Plc. Barclays Plc.
Cooperative:
A cooperative business, often known as a co-op, is one in which one individual owns and
controls a firm that uses the cooperative's products or services. Cooperative companies provide a
strong sense of security as well as a focus on strengthening the communities in which they
operate or serve. They are a separate legal entity with equal voting rights. It is managed in a
democratic manner. The primary goal is to benefit society rather than to make a profit.
Example: UW Credit Union, Willy Street Co-op
TASK 3
Organizational structure and external factors
When a medium or large company employs a significant number of people, it is
necessary to make efficient business decisions in order to achieve high profitability. Internal and
external variables influence a company's decision-making process. Functional structure, flat
structure, matrix structure, and divisional structure are the four fundamental forms of
organizational structures used by businesses (Hillary, 2017). Tesco, for example, uses an
organizational structure in which jobs and duties are separated into several parts in order to

ensure that the task is performed in a productive manner. An organization's organizational
structure also serves as a foundation for successful decision-making and defines the connection
between the employer and the employee(Nguyen, Phan, and Matsui, 2018). These organizational
systems are split into two segments based on their complexity, which is listed below:
Functional Structure: Organizations divide their personnel into smaller teams based on their
specialist areas such as finance, sales, and IT in a functional structure. Because this structure
divides people based on their abilities and experience, it aids the firm in streamlining processes
with a clear hierarchy and little ambiguity.
Divisional structure: In this form of organizational structure, personnel are separated into
groups based on organizational functions such as production, marketing, and human resources,
among others. It assists an organization in separating big portions of the firm and has a favorable
influence on employee performance.
The performance of a business organisation is influenced by external variables.
Various kind of external factors that impact a company decision-making and their
production activities for stop the following are some of the elements which have an influence on
a company's efficiency and on the productivity of the company and which are mentioned below:
Political Factors: Political factors are that kind of factors picture formulated by the government
authority of the country (Kaila and Nyman, 2018). The Government of particular Nation help for
Innovation and political modification in an economy among other things which has a variety of
effects on the particular products of company and services which create impact on the success of
the organization in the Marketplace.
Economic Factors: Economic factors are those kinds of factors which engage recession low
inflation rate disposal income market growth and survival mode which create impact on the
organization and on their efficiency and profitability of the organization. As these kind of factors
cannot be controlled and managed by several organization so it is very important for the
company to take and made decision accordingly
Social Factors: Social factors are those kinds of factors which include societal modification in
the surroundings that create impact on the demand and supply of the goods and services in the
Marketplace. It create impact on the demand and supply as it is very important for the company
to consider all kind of societal modification in their decision-making process so that they can
made effective decision for the company.

Technological Factors: These kinds of factors are those factors which increase the dependency
and advantage of Technology in the Marketplace. It is very important for the organization to
adopt amended and effective Technology so that the company can get more competitive
advantages and opportunity in the Marketplace. Technology is the concept which creates impact
on the cost and quality of the goods and services which are provided by the company that also
create impact on their performance of the company in the market place.
Legal Factors: This kind of factors engage the applicable laws and any organization that are
followed by them in order to enhance their productivity and for smooth working of their
company for Stuff every Nation has several kind of legal structure and it create YouTube path on
the organization productivity (Lee, Zhang, Dallas and Chin, 2019).
Environmental Factors: As public awareness about the environment grows, it is critical for
businesses to address different environmental concerns connected to their operations, such as
pollution, carbon emissions, and so on. If a company becomes more active in environmental
protection efforts, it will attract more consumers and increase its profitability.
CONCLUSION
From the above mentioned report it has been concluded that there are various kind of
business that are formulated in the Marketplace with several kind of motives for stop these kind
of companies are separated in several kinds of parts on the basis of their legal structure and size.
These kind of structural support the company to made effective and amended the season for the
organization in order to operate their business smoothly for stop apart from this the organization
activities and their external factors which is pastel has very important for the company to be
considered by and company in order to make effective decisions for the company

REFRENCES
Books and Journal
Abeyrathna, G.M. and Kalainathan, K., 2016. Financial risk, financial risk management practices
and performance of Sri Lankan SMEs: Special reference to Anuradhapura
district. Research Journal of Finance and Accounting, 15(7), pp.16-22.
Aljayi, Y., Fjer, A., Guennioui, M. and Tamek, A., 2016. Multinational companies’ human
resource management practices’ and their organizational culture impact on employees’
loyalty: Case of Japanese multinational company in Morocco. Procedia-Social and
Behavioral Sciences, 230, pp.204-211.
Aziz, N.A.A., Manab, N.A. and Othman, S.N., 2016. Critical success factors of sustainability
risk management (SRM) practices in Malaysian environmentally sensitive
industries. Procedia-Social and Behavioral Sciences, 219, pp.4-11.
Gelbrich, K., Stedham, Y. and Gäthke, D., 2016. Cultural discrepancy and national corruption:
Investigating the difference between cultural values and practices and its relationship to
corrupt behavior. Business Ethics Quarterly, 26(2), pp.201-225.
Habibi, M.R., Davidson, A. and Laroche, M., 2017. What managers should know about the
sharing economy. Business Horizons, 60(1), pp.113-121.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kaila, U. and Nyman, L., 2018. Information Security Best Practices. Technology Innovation
Management Review.
Lee, J.W., Zhang, L., Dallas, M. and Chin, H., 2019. Managing relational conflict in Korean
social enterprises: The role of participatory HRM practices, diversity climate, and
perceived social impact. Business Ethics: A European Review, 28(1), pp.19-35.
Nguyen, M.H., Phan, A.C. and Matsui, Y., 2018. Contribution of quality management practices
to sustainability performance of Vietnamese firms. Sustainability, 10(2), p.375.
Willcocks, L.P. and Lacity, M., 2018. Cloud computing as innovation: cases and practices.
In Dynamic Innovation in Outsourcing (pp. 197-237). Palgrave Macmillan, Cham.