Business Structures: Analysis from Sole Trader to Cooperatives

This report provides a comprehensive analysis of various business structures, ranging from sole proprietorships to cooperatives, highlighting their features and operational characteristics. It delves into micro, small, medium, and large enterprises, examining their investment levels, employee numbers, and technological requirements. The report also explores organizational structures, including functional and divisional structures, and conducts a PESTEL analysis of Tesla, evaluating the political, economic, social, technological, environmental, and legal factors impacting the company. The study concludes by emphasizing the importance of understanding these diverse business entities for effective market growth and societal well-being, with the aim of providing a detailed overview of business operations and strategic planning. Desklib provides additional resources, including past papers and solved assignments, for further study.

Business in practice

Contents
Introduction..........................................................................................................................................3
Task 1...................................................................................................................................................3
Different types of companies............................................................................................................3
Task 2...................................................................................................................................................4
Different companies from sole trader to cooperatives.....................................................................4
Task 3...................................................................................................................................................6
Organisational structure and PESTEL analysis................................................................................6
Conclusion............................................................................................................................................7
References............................................................................................................................................8

Introduction
The business is a separate legal entity structured in the economy to achieve the market
growth and share by developing innovation and ideas regarding the product. In the economy each
organisation is owned and run for the purpose of income generation and some of them are for the
welfare of society by fulfilling their needs and demands. The various organisation works for
charitable purpose without the motive of profit maximisation (Agyenim-Boateng, C and et.al.,
2017). The company is similar affected by the environment internally and externally in which its
business operations are carried. The commercial institution is recognised as the business entity
which trades the activities of goods and services. The concept of organisation defines the set of
groups in the aim of accomplishing purposes that is rendered to the society for their well-being and
for revenue generation. The discussion in the study is based on the different sort of companies
which comprises the several entities from sole trader to cooperatives. In task three the business
structure is defined with its conducting PESTEL analysis.
Task 1
Different types of companies
The association of people defining the lawful entity of company which have the common
objective of accomplishing some particulars goals and aims which is described as company. The
companies in the economy is classified on various structures such as charitable companies, profit
earning and financial institutions. The classification of the companies depends on the varying size
and scope on the basis of small, micro, medium and large enterprises (Asadi, E and et.al., 2018).
Micro enterprises- In such type the investing level and employ level is low mentioning to small
business sector with the employees from 0-9 having low annual turnover below 2 million. In such
kind of enterprises, the requirement of the technology is less to run the activities of business. The
employment opportunities are created to add the worth in the economy and cost is reduced to have
long growth.
The characteristics of the enterprise is manager is considered as owner which is run by
himself and have the primary information regarding the business functioning. The decision is taken
by the manager having active participation in matter of business. The return on investments is
started earning by the company having low gestation period. It is more focused on the labour
intensive due to the availability of the resources and needs small capital investment. Example-
spaza shops (Chowdhury, T and et.al., 2021).
Small enterprises- It defines to the independent bodies to increase the sales volume in the long run

by comprising of small number of workers or business improvement which takes the employment
of employees 10-49 for working and their yearly turnover is around 10 million. The working is in
the partnership defined as private owned bodies which includes the alteration in size and structure
of revenue of sole proprietors. The products and facilities are produced on small scale by the small
business.
The features of small business enterprises is called as sole proprietorship having single
owner. The individual has the full control on the functioning of the business and solely takes
decision which is flexible to make the changes in uncertain circumstances. The requirement of the
technology is less and merely depending on the human workforce. In such the investment is limited
and small groups, individual provide the capital for business activities. The employee ans employer
has the local touch in the business operations. Example- bakeries (Escobedo, E.M., 2017).
Medium and large enterprises- The growth of the organisation is increased at fast rate where
employees work on both basis of voluntary membership and international bodies comprising of 50-
250 or more members involved in working with having the annual turnover of 250 million or more.
The features of such enterprises huge income is earned by the company as requires the more
technology with large number of capital requirement. It is capital intensive approach having the
skilled manpower in the company by recruitment. The investment in technology is huge and some
capital is reserved for the future development in the company regrading internal aspects. Example-
Tesla (Lewis, M.A and et.al., 2020).
Task 2
Different companies from sole trader to cooperatives
Sole trader- It is a unincorporated business acknowledged as sole proprietorship which is run and
owned by individual. The single person controls the business ownership and accountable for all the
profits and losses. The decisions regarding the business operations is taken by the owner who
consider himself as boss.
The features of sole trader are the business full control is possessing by the owner which is
not a separate lawful entity and the continuance of business depends on personal circumstances of
the owner. For the business debts it has unlimited liability and taxes is paid by the owner himself
either online or paper application. Example- groceries stores
Partnership- It defines the two or more persons association works in the form of partners to carry
the business activities for income generation as co-owners. In the partnership the the deed is formed
between the partners describing the conditions of the profits and losses shared between them. The

person joins the organisation in the aim of increasing growth and responsibility by combining skills
and capital. The partnership deed is in the form of document to specify the obligations (Martins, D.
and Silva, S., 2017).
The features of this are there exists an agreement on the papers between the partners to share
all he losses and profits in terms of the shares held with them. The partners have the flexibility
considering as self-employed. The partners liability is limited and collective and between the
partners it includes the transfer of interest. Example- McDonald and Twitter.
Limited liability business- It has separate legal entity defining the incorporated company with its
lawful status. The relationship of stockholder and executive is regulated by the constitution having
limited liabilities regarding the shares of vale held with them. In limited liability the business is
limited by shares or guarantees. In the shares limited liability the members pay the amount up to the
unpaid nominal amount of shares. The liability is limited to the unpaid shares. In the limited
liability of guarantee the members pays the amount in case of winding up to guaranteed amount
which is owned by the persons called as guarantors.
The features are in the company the members are not in the obligation and it is a separate
lawful business entity with limited liability of the employees, managers and workforces. In the
circumstances of the insolvency or death of the member the documentation is simple providing
flexibility to continue the business operations (Niedermair, S., 2020).
Public limited liability company- Private company like the public company is identical having the
minimum number of seven with the no limit of maximum members. It has the separate legal
existence incorporated as voluntary organisation with the members having limited liability. The
stocks are listed on London stock exchange which is traded publicly. The public has the availability
of the shares.
The features of public limited company are- the company shares are freely transferable
having separate legal existence with the required minimum number. The shares are sell to collect
the capital which shows high level of transparency in the relation of performance and decisions.
Cooperatives- The demands of the economic, societal and cultural are fulfilled including
voluntarily of independent association through jointly own enterprises. The broad of directors are
elected with the one vote owned by members. It defines an organisation of private business
comprising individual interest to provide the supplies, goods and services. The customers gets the
services as a legal body.
The features of cooperative are the society rules are abided by having the common interest
in the voluntary membership of the members pertaining to limited and unlimited liability. The

economy development and consumer protection is included in purpose of to serve the society in the
welfare.
Task 3
Organisational structure and PESTEL analysis.
It defines the system of certain activities in the organisation that is to achieved which
includes the roles, responsibilities. The organisational action is affected by the organisation
structure and offers the base to operate the standards procedures. It also determines the flow of
information among the levels of company. The authority and responsibility of the project is
determined by referring the relationship and communication between diverse departments.
Functional structure- It is also known as bureaucratic organisation structure where workforce is
breakdown according to their specialisation. This structure is implemented by the small and
medium sized business enterprises where the firm is divided into departments such as marketing,
sales, finance etc. the responsibility is assigned to the departments. The departments have the own
procedures and standards defining the clear lines of authority. In this structure the efficient decisions
are taken and communication is improved (Paton, N., 2020).
Divisional structure- The company uses this structure in the leadership based regarding the
products, projects which is uses by the multinational companies. The company structure itself with
numbers of product and business lines to operate the company in its own president. The functioning
of the business and activities are spread crosswise the different branches comprising of particular
product or consumer group. The team work is built which produces the similar products to match
the demand of individual group.
PESTEL Analysis
In macro environmental it describes strategic planning used for external analysis of the
factors that influence the business. The external factors are used for environment scanning. The
Tesla company has taken for analysis.
 Political factor- The Tesla gets the government support in the production of electric auto
mobile. The financial performance is increased leading to opportunity of political stability
and government incentives in the company. The factors which affect the Tesla are trade
regulations, tax policy and foreign trade policies (Ritchi, H and et.al., 2020.
 Economic factor- The renewable energy cost is decreased to make the product attractive.
With this the economic stability is affected. The factors include market growth, trade and
currencies of the economic conditions. The Tesla is also affected by the changes in the

economic, employment rate, rising of prices and interest rate.
 Social factor- The social conditions is affected by the factors of employees, customers and
investors in Tesla. The objective of the Tesla is to ensure the business benefits by applying
the strategies in target market to improve the wealth distribution and low carbon lifestyle.
The customer needs are determined by the company in relation to product quality and
customer services. The social factor which affects the Tesla company includes revenue,
gender, age and purchasing power of consumers.
 Technological factor- The increases in automation enhance the product by adopting
changes in technology so that growth opportunity can be increased. The Tesla sales and
growth is increased by using innovative technology which delivers solutions in innovative
way to customers. To compete with the competitors the technological trends are analysed.
The huge investment is made by Tesla to gain brand reputation in research and development
activities.
 Environmental factor- For the production purpose the availability of the raw material is
determined by the Tesla to promote the electric automobiles owing to change in climate and
reducing of waste disposal. The environmental factors which affect the Tesla comprises
climate and weather changes, sustainability rate, pollution. The environmental programmes
are expanded in the Tesla (Shen, N., 2018).
 Legal factor- The regulatory system is impacted by the information technology. The laws
are framed by the regularity authorities in which the business is operated by Tesla. There is
the opportunity for the Tesla in regulation of energy consumption with the legal constraint in
human resources management. The legal factors include legal considerations, lawful policy
and procedure which influence the business of Tesla.
Conclusion
In accordance to the study the conclusion is been made those different entities is divided by the
organisation to have the understanding of different types of companies. The business likewise
deliberates the outside issues for the smooth successively of the corporate process in the
marketplace and helping civilization for their wellbeing. The business approves dissimilar
organizational structure to advance the effectiveness and development dependent on the scope and
opportunity of the company.

References
Books and Journals
Agyenim-Boateng, C and et.al., 2017. The role of structure in manipulating PPP
accountability. Accounting, Auditing & Accountability Journal.
Asadi, E and et.al., 2018. Pictobot: a cooperative painting robot for interior finishing of industrial
developments. IEEE Robotics & Automation Magazine, 25(2), pp.82-94.
Chowdhury, T and et.al., 2021. Awake Craniotomy Under 3-Tesla Intraoperative Magnetic
Resonance Imaging: A Retrospective Descriptive Report and Canadian Institutional
Experience. Journal of Neurosurgical Anesthesiology.
Escobedo, E.M., 2017, May. New Product development; the Nikola Tesla extrapolation. In 2017
International Conference on Applied System Innovation (ICASI) (pp. 1271-1272). IEEE.
Lewis, M.A and et.al., 2020. Navigating complex organisational change: putting sustainable
transitions theory to practice. In ISPIM Conference Proceedings (pp. 1-16). The
International Society for Professional Innovation Management (ISPIM).
Martins, D. and Silva, S., 2017. Tendencies on reward practices and employees’ satisfaction level:
evidence from portuguese companies. In Proceedings of 29th IBIMA-International Business
Information Management Association Conference: Education Excellence and Innovation
Management through Vision 2020: From Regional Development Sustainability to Global
Economic Growth. IBIMA.
Niedermair, S., 2020. A comparative study of innovation-related knowledge acquisition strategies
by boundary spanners in small and medium-sized companies within the DACH
region (Doctoral dissertation, Wien).
Paton, N., 2020. Musculoskeletal care: only for more'enlightened'employers?. Occupational Health
& Wellbeing, 72(8), pp.18-21.
Ritchi, H and et.al., 2020. The influence of business process representation on performance of
different task types. Journal of Information Systems, 34(1), pp.167-194.
Shen, N., 2018. Family business, transgenerational succession and diversification strategy:
Implication from a dynamic socioemotional wealth model. Cross Cultural & Strategic
Management.