Detailed Business Structure Analysis Report: Fashion Clothing Company

This report provides a comprehensive analysis of the business structure for a Fashion Clothing Company operating in the UK. It begins with an executive summary and introduction, followed by an in-depth examination of different legal statuses, focusing on the strengths and weaknesses of each, with a recommendation for a sole trader structure. The report then explores three key sources of finance, including loans, government grants, and retained earnings, evaluating their advantages and disadvantages. Furthermore, it assesses the three sectors of the UK economy—primary, secondary, and tertiary—highlighting their differences and contributions. Finally, the report details human resource policies and their significance in the workplace, concluding with a summary of findings and a list of references. The report aims to provide a clear understanding of the crucial elements needed to establish and sustain a successful business venture.

Structure of Business

EXECUTIVE SUMMARY
This report covers the importance of the business structure which is developed by different
resources including the human capital, legal structure, business sectors, the business financial
capabilities that defines the stability of the business in the marketplace. With the new business
startup of Fashionable Clothing Company in UK, in context of the association this report delivers
the importance of the human resource policies, the financial resources of the business, legal
statues, and business sector where is operating.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
State different legal statuses of businesses that your business in UK with strengths and
weaknesses of these legal statuses...............................................................................................4
Establish the strengths and weaknesses of THREE sources of finance available to the chosen
business start-up...........................................................................................................................6
Evaluate the three sectors in the UK economy in which a business can operate and state the
differences between the three sectors?........................................................................................8
State the human resource policies and their importance in the workplace................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
To start the own businesses requires different resources right from collecting innovative ideas,
finances, people, legal proceedings and other resources that must be effectively used in the
business to accomplish business success. These involves making the right use of the innovative
ideas in order to deliver the market offerings that best satisfies the market demand which
requires understanding the demographic and psychographic factors of the specific geographical
location including the age, people, income, lifestyle pattern and so on. After that the business
decides on the specific market offerings, the business must also determine the other requirements
of the business functions such as human capital, legal proceeding wherein the business must
select the business operating sectors of the economy, the legal status if the business and the other
important factor involving the human resource strategies’. Thus, by analyzing all these factors,
“Fashion Clothing Company” is the new business startup in the market of UK, with high
preferences and living standards of the people in UK, wherein people want to wear good and
fashionable clothing, thus the new business idea in the market of UK is justified. The business
focuses on delivering high quality fabric and fashionable apparel in order to satisfy the market
demand. In this report the following responses are been evaluated such as the detailed
investigation of the business legal structure in UK, evaluation about different financial sources of
the business and how it works for the businesses with the relevant strength and weakness applied
to the business, three different business sectors of the UK economy and their differences,
detailed investigation of the human resource policies that it benefits the organisation and helps to
build brand identity in the marketplace (AJAGBE and et.al., 2016).
MAIN BODY
State different legal statuses of businesses that your business in UK with strengths and
weaknesses of these legal statuses.
Legal statuses of the business of the business is divided into limited liability and the registered
charity pertaining to the nature of the businesses, these legal statutes are discussed below in
brief:

Public Limited
Company
Private Limited
Company
Registered Charity Sole Trader
Public limited
company involves
businesses which
involves in delivering
the shares to the
public.
Public limited
company holds many
benefits due to which
more than 90% of the
UK businesses are
public limited
businesses. These
benefits of the public
limited company are as
helps in getting easy
business finances, the
legal existences of the
business are different
from the owners of the
PLC, these business
can raise business
faces by offerings the
public shares, there is
perpetual business
existences of the
company.
The drawbacks of the
business include that
Private limited
company simply
involves the business
that cannot offer the
share to the public in
order to raise the
business finances with
limited number of the
shareholders, the
shareholders of the
business does not have
control over the
business activities. All
the finances
transaction of the
business is separate;
the owner personal
transactions are also
separate from the
business. The profit
gained by the business
is distributed as per the
shares acquire by the
share shareholder as
dividends. The owner
of the business can
only draw only
withdraw money from
the business for any
Registered charity
includes the business
which operates for
delivering the social
services to people and
operating the business
activities for
charitable purposes.
The benefits of the
registered charity
involve tax reliefs,
easy financial
solution, earn trust a
reliability in the
society.
The drawbacks of the
registered society
involve inability of the
business to raise
capital from equality
capital, restriction
over carrying the
business functions,
compliance with all
norms of the UK
government from the
registered charity
businesses (Chauhan,
Dey and Jha, 2016).
Sole trader
businesses are the
one which are
started by a single
owner of the
business, the
business is owned
and managed by
the owner itself
and all the profits
and profit are
been bearded by
the owner. The
benefits of the
sole trader
business are that
it requires very
less cost for
starting the
business, all the
profits are being
owned by the
owner. The
drawbacks of the
same are that it
has unlimited
liability and raise
business
financing is very

the business is liable to
different shareholders,
wherein the owner of
the business shall also
be accountable to these
large number of
shareholders of the
business that further
results into losing the
control over the
business activities
(Berger, Cerqueiro and
Penas, 2015).
business transactions.
There are many
benefits from the
private limited
company some of
these are such as the
number of shareholder
are unlimited which
reduces financial
liability of the
business, the private
limited company
operates with the only
purpose of generating
revenue by producing
the goods and services
at lower cost.
The major drawbacks
of the private limited
company include the
restriction from the
borrowing of the
financial sources, the
owner is held
accountable in case of
insolvency or the
business failure for
paying the timely
debts.
difficult.

Fashion Clothing Company business is a small business startup, thus, a sole trader business
title best suits the startup business. As it is owned and managed by a single business owner or
entrepreneur with unlimited liability. All the business profit is being enjoyed by the single owner
of the business and the liable for all of the losses incurred.
Establish the strengths and weaknesses of THREE sources of finance available to the chosen
business start-up.
There are different sources of the finance that the business varying to the nature, time period of
each financial sources. Pertaining to the time period of these financial sources it is been
categorized into long term, medium term and short term sources of the finances. Wherein, the
businesses take use of these financial sources as per the requirements of the businesses. These
are discussed below in brief:
Long Term Sources of Finances
Loan from financial institutions
Loan from the financial institution involves the credit taken from the banks for the long period of
time which might involve the security or without any security. Fashion Clothing Company takes
the loan from financial institution for long term period (Drobetz, Schilling and Schröder, 2015).
Strengths: It helps to serve the financial requirements of the company.
Weaknesses: It adds cost to the business by charging interest over the loan.
Government Grants
UK governments render grants to the businesses in order to support the businesses and achieve
economic development in UK. Wherein the government of UK not only delivers the financial
supports but also deliver non-financial business solution so that the businesses are able to
conduct the business without any difficulties. Fashion Clothing Company depends of such
grants so that the business is able to meet the financial requirements of the businesses.
Strengths: Helps the business to meet the long term financial requirements of the business.
Weaknesses: In some cases, it becomes difficult to get the government grants as it requires
documentation and relevant business proposal.

Retained Earnings
Retained earnings of the businesses are the business profits which is not divided in the profit, it is
kept aside as reserve it order to use in further business requirements. Retained Earnings is also
called as Undistributed profit. Fashionable Clothing Company uses the amounts of the retained
earnings in order to meet the long term financial requirements of the businesses (Horner and
et.al.,2015).
Strengths: It helps to serve the long term financial requirements of the businesses without any
security or any extra cost.
Weaknesses: It reduces the share of profit
Medium Term Sources of Finances
Borrowing from bank
Getting the borrowings from the banks as the medium term business finance for the time period
of 3-7 years it also a useful business method in order to finance the businesses. Fashionable
Clothing Company takes helps from different financial institution in order to meet the financial
requirements of the business (Khan, Rasli and Qureshi, 2017).
Strengths: It helps to meet the financial requirements of the business and also the reliable source
of the businesses.
Weaknesses: Interest charged turn expensive to the businesses.
Lease financing
Lease financing is one of the useful business technique that helps to acquire the fixed assets of
the businesses at lease. Wherein, Fashionable Clothing Company takes the helps of lease
financing in order to meet the foxed assets requirements of the business like land for a fixed time
period.
Strengths: Useful technique in order to finance the requirements of the business rather than
spending on the acquiring fixed assets and increasing the financial burdens.
Weaknesses: It does not transfer the ownership of the property wherein the control owner always
have the control over the fixed asset.

Short Term Sources of Finances
Bank credit
Bank credit is an useful credit facility in order to meet the short term finance of the businesses.
Wherein Fashionable Clothing Company takes the helps from different banks in in order to meet
the short finances of the businesses (Lionais, 2016).
Strengths: Reliable sources in order to meet the short businesses finances
Weaknesses: It result to increase in the short term liability of the business.
Loan from director
Loan from detector is an effective internal short term financing technique in order to meet the
short term finances of the businesses. Wherein, the director of the Fashionable Clothing
Company grants his own funds to the business in order to meet the finances of the business
(Masanja, 2018).
Strengths: It helps to meet the working capital requirements of the businesses.
Weaknesses: It creates the financial burden to the businesses.
Evaluate the three sectors in the UK economy in which a business can operate and state the
differences between the three sectors?
There are different three kinds of business sectors in the UK economy namely primary,
secondary and tertiary wherein these business sectors have different business services and
purpose for conducting the business activities. Each of these three business sectors are important
as they contribute largely to the economy of UK. These business sectors include primary which
involves the business which involves in to supply of raw materials to the other businesses, the
secondary businesses include the business activities which involves in the production and the
manufacturing of the raw material in the finished goods, the tertiary business involves delivering
the services to the people. All of these business sectors largely contributes to the economy of UK
and makes up economic development of the country.

Source: https://www.statista.com/statistics/270372/distribution-of-gdp-across-economic-sectors-
in-the-united-kingdom/
The above graph represents the distribution of gross domestic product (GDP) in UK’s economy
by the three business sectors in the country. These includes the primary sector which is
agriculture sector, industry as secondary sector and services as tertiary sector.
Primary sector includes the businesses which operates its business activities in order to acquiring
the raw materials like coal, woods, food grains and other raw material, wherein these businesses
supply the raw materials to the other businesses and earn revenue. The examples of such
businesses includes the farmers, mining businesses. These business sector play an important role
for delivering raw material and carry further business activities (Olson and et.al.,2018).
Secondary sector includes the businesses which concludes the manufacturing of the raw material
wherein these businesses collects the raw material from the primary sectors businesses and
carries further business activities of transferring the raw material into the finished goods. The
supported example of the secondary sector businesses can be car manufacturing companies who
manufactures the by acquiring the spare parts of the car from different suppliers and assembles
by manufacturing it into a complete car such as Bentley British car manufacturing company that
manufactures sports luxury cars which is headquartered in England, UK founded by H. M.
Bentley and W.O Bentley in the year 1919.

Tertiary sector businesses include the businesses which delivers commercial services to the
economy. Wherein these kinds of business collect the products and required material from the
secondary sectors and conducts business in order to deliver services to the customers. They make
profit by the kind of services they offer to the customers. The supported for these can be
businesses such as food services, clothes services and other in order to deliver value to the
customers.
Fashion Clothing Company lies in the category of the tertiary sectors wherein the business
deliver services to the customers by offerings them clothes as market offerings. They provide
quality and high fashionable clothes to the customers as per the latest market trend, by using the
fabric which is organic and comfortable to wear at all seasons. Wherein they purchase the useful
material and clothes from the secondary sector, add their own touch to each clothe they offer and
deliver quality to each customer they serve. They also set prices as per the cost incurred in the
business activities, thus taking into account of all these attributes the Fashion Clothing Company
delivers value to the customers.
State the human resource policies and their importance in the workplace
Human resource policies plays an important role in order to deliver the right organizational
objectives to the employees, wherein human resource policies are everything in order to manage
and coordinate the efforts of the different individual as per the determined working standards of
the organisation. The human resource manager in Fashion Clothing Company develops favorable
policies in order the human capital of the workplace. Right managing the positive working
environment in the workplace to managing the employee performance, some of the human
resource policies implemented by the HR manager in Fashion Clothing Company,
Health and safety policies: Formulating health and safety polices is the most important policy
that every organisation must practice. It involves managing the safety of the employees at work
wherein the human resource manager implements favourable policies to maintain the safety
which involves right from ensuring that any physical infrastructure does not harm the any
employee, rendering compensation to the employees in face of any accidents faced by the
employee in the employment period, facilities of insurance, job security so that the employees
feels comfortable and the business complies with all the legal policies of the government of UK.
The HR manager in Fashion Clothing Company implements the health and safety policy in the

organisation in order to avoid any kind of uncertainties and mishap n the workplace that could
harm any employee or damage the image of the business in the marketplace. It becomes
important to determine the health and safety policies in the organisation so that the business is
able to deliver safety to each individual delivering the positive working environment and ethical
business functioning (Sund and et.al.,2016).
Health and safety at work etc. act 1974: The law was passed under the government of UK. The
law was passed for the sole motive of focusing on protection and safety of the employees at
work. The law emphasized to transfer responsibilities to the employers to take care of health and
safety of employees at work. Fashion clothing company complies with the health and safety law
by practicing positive working environment in the workplace. In order to implement the law
employees in the association were delivered training pertaining to the fuller knowledge and
information about the law such as employees are strictly told to not to show discrimination
against any disabled employee in the workplace. The employers in the association adopt this law
in order to comply with all the measures taken by the government as to prevent any such unfair
means or discrimination to the employees at work irrespective of their gender, culture, and your
position or any of the factors, the employers practice of delivering equal rights and opportunities
to each and every working staff in the organisation.
Equality and diversity policies: Human resource manager in Fashion Clothing Company
manages the equality and diversity in the workplace by rendering all of the employee’s fair
opportunities, equality against the unfair means, discrimination, fair remuneration. Wherein
employees in a workplace belongs to different background, cultures and the social belief, thus
which becomes important for organisation in order to respects each employees value in order to
promote fair and ethical working in the organisation. The important of treating both men and
women the same and giving them the equal opportunities in the workplace. Equality and
diversity helps the business in order conducts the business functions legally and transparently
manner.
Equality Act 2010: The equality law in Britain provides the rights in the society to protect each
and every individual from any discrimination and unfair treatment. Fashion Clothing Company
complies with the Equality Acts, 2010 in order to promote fair and ethical working environment
by delivering equal and fair opportunity and rights to all the working staff and taking actions for

discrimination against any employee for the personal factors such as age, gender, disability, race
and others.
Wages and salaries: Following the norms and rules farmed by the UK government, it becomes
important for the businesses in order to deliver fair remuneration to ala the employees at
workplace. The human resource manager is Fashion Clothing Company deliver fair salaries and
wages to all the employees in accordance to the job performed by each employees. Moreover,
that, the human resource manager of the association delivers benefit packages, holiday packages,
paternity, maternity leaves and other kinds of leaves to the employees so that the employees feel
comfortable in the workplace. To the organisation that deliver fair salaries to the employees such
employees tends to stay loyal with the organisation and the organisation that does not deliver fair
remuneration such employees get demotivated and leaves the organisation. Apart from the basic
salaries, the HR manager of the association also delivers facilities like accommodation, food
services, clean ambiance with that the manager deliver financial and non-financial incentives to
the employees who are doing very well in the workplace that also helps to motivate the
employees to accomplish productivity and efficiencies in the business performances (Tyson,
2017).
CONCLUSION
Thus, the above report delivers the importance of different factors that positive or
negatively contributes to the business. Moreover, while establishing the won business startup
business, there are certain pointers or factors that the businesses should never avoid such as the
business sectors distribution in the external environment, the legal structure of the businesses, the
most important financial resources which is crucial in order to fund different business activities
and operate it as per the requirements, wherein the business the business must evaluate all the
available sources of finance and allocate them to best business activities. The human resources
policies are also another important resources wherein business must establish favourable policies
that positively affects the business performance, manage the working capital of the workplace,
determine the working of the business function in the must legal and ethical manner, develop
policies thein order to accomplish productivity and efficiencies in the business performances.

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