Business in Practice (BMP3002): Types of Companies Assessment Report

This report, prepared for the BMP3002 Business in Practice module, offers a comprehensive overview of different types of companies, ranging from sole traders to cooperatives and limited liability businesses. It details the characteristics, formation, and operational aspects of each type, including sole proprietorships, partnerships, private and public limited companies, and cooperatives. The report further delves into organizational structures, analyzing how these structures impact business productivity, and it identifies the advantages and disadvantages of each. A significant portion is dedicated to explaining the effects of various external factors, such as political, economic, social, technological, legal, and environmental (PESTLE) factors, on business performance, using Tesco as a case study. The report concludes with a summary of the key findings and the importance of management in the success of business operations.

BMP3002
Business in Practice
Assessment 1
Types of Companies
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INTRODUCTION......................................................................................................................2
MAIN BODY.............................................................................................................................2
SECTION 1................................................................................................................................2
Different types of companies and how they work.................................................................2
SECTION 2................................................................................................................................3
Different companies from sole traders to cooperatives and Limited Liability......................3
Section 3: Different business structures and external factors affecting business.......................4
Identification of different organizational structures and explaining how does organizational
structure affect business productivity.....................................................................................4
How different external factors affect the performance of a business – PESTLE Analysis.. .6
CONCLUSION..........................................................................................................................7
REFRENCE...............................................................................................................................8
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INTRODUCTION
Management is the process by which all aspects of business is been covered which
makes different functions of business performed in smooth manner. It helps in making
various aspects related to business covered with efficiency. Further management leads upon
making development of organization possible. In this planning, decision making, organizing,
leading, motivating has been covered with human resource, finances and various other
resources. Management makes organization develop its processes in more organized manner
which leads upon goals and objectives achieved by an organization. Scope of management is
wider as it impacts working of an organization. Nature is dynamic since it covers all aspects
related to business in more effective manner. Organization takes is Tesco which is an retailer
and file covers about various kinds of businesses. Then it covers about various kinds of
business organization with its characteristics and formation. In the end of the file PESTLE
analysis is been done in relation over Tesco plc.
MAIN BODY
SECTION 1
Different types of companies and how they work
 Micro business and small business these are those business organization that
operates with low level of working and involves less professionalism within
themselves. Under it private certain type of business organization like private owned
business or sole proprietor has been explained. Organization in this kind of business is
only limited over working for less than 50 employees which makes its size very small
in nature. Under these kind of business mainly BPO, content writing and basic work is
been included (Soluk and et. al.., 2021).
 Medium size business: They are that business organization that has been formed over
performing business that is able to generate only few amounts of profit and revenue.
Medium size organization works for 100 staff members and is less than 1000. In these
organization on sustainability is been attained by them.
 Large size business: They are business organization working over large platforms
which makes business setup at large scale. In this organization makes operations
conducted with the help of 1000 employees or more. These organizations include
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public and private sector organization. Also proper planning of required to be set in
order to make organization run in more effective manner.
SECTION 2
Different companies from sole traders to cooperatives and Limited Liability
 Sole trader business: This is that kind of business that is been operated by an
individual person and operations is of very small nature. In this organization is
one of the most common forms of organization which makes business done in
more organized manner. In this the owner is responsible for growth of an
organization in more effective manner. This organization does not hold liability
in relation over tax which has to be paid by an organization. In order to make get
the organization established within market that makes complex process and
submission of lengthy documents not be done regarding establishment of this
business organization. For the registration of the organization only HMRC
number is required over starting trade and name which makes business
commencement done. Name is not required while registering and only in starting
of business
 Partnership: This is that kind of business organization within which an common
motive is been shared by an two persons that is to earn profit and generated
revenue. In these firms two or more than two persons performs business together.
Also in this business organization liability of partnership is dependent over the
amount invested by them. Such organization does not require documentation only
agreement is formed related to business they are been doing. Also these
organizations makes agreement when licensing or any kind of legal work is
required by an organization to be done.
 Limited liability business: Under such kind of organization liability is limited
with the investment that is done by partners. Also they are been provided rebate in
relation over paying of tax. In these organization only partners helps in developing
of working environment which is hybrid in nature and is development with
characteristics of both corporate and partnership organization.
 Public limited liability business: These are those kind of organization which is
been operated by shareholders and investors as they owns the organization. Shares
of the organization is been sold to public. It involves lengthy process within its
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formation and is required over submitting of various kinds of documents which is
related to organizations establishment. In this various kinds of document like
shareholder s name and digital signature is required to be submitted and in this
Board of Directors makes all kinds of decision taken in relation over managing
various kinds of processes within an organization. Funding is been provided with
the help of Government institution, bank loans, issue of share in market. Various
kinds of financial institution invest within it for providing fund. All the documents
is been send to Companies house for making verification of documents (Pascal,
2021).
 Cooperative: These are those organizations which have been formed with the
help of directors which makes fulfilling of needs of an organization. Under these
organizations all the work is been managed by the directors. It holds responsibility
over managing shareholders and managers. In this organization is separate identity
from their owners thus no harm is don to owners. The process of registration is
very lengthy and requires lot of documents submitted within Companies House
for getting verification done. Under its proper process is been followed and
directors is been selected for doing business on behalf of organization. Further
incorporation of such organization takes lot of time which makes requirement of
submission of memorandum of association with article of association. In these
organizations various kinds of laws is been applied which are company and
employment law that makes functions operated in more organized manner.
Section 3: Different business structures and external factors affecting
business
Identification of different organizational structures and explaining how does
organizational structure affect business productivity
Sole proprietorship: These are the organization which has been formed with the
help of single owner . Funds of these organization is been arranged by individual all by
himself. They are been arranged with the help of friends, family members and taking private
or personal loan (Ofori-Parku, 2021). Management is been done by the owner for all resource
and all responsibility is hold by them. Further advantages and disadvantages has been
explained as follows:
Advantages of sole proprietorship:
 Formation process is very easy and not complex in nature
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 Financial resources that is been arranged is very less or low.
Disadvantages of sole proprietor:
 Liability of the owner towards business is been hold by them and involves decision to
be involved within it.
 Taxation rate in relation over self employment is paid by the owner himself.
Partnership: The organization is based over those kinds of organizations which have
been formed with help of two or more persons earning within profit. Under it all kinds of
organization is been run by partners themselves. Funds is arranged by the partners themselves
(Kasim, Stöhr and Herzig, 2021).
Advantages:
 Its forming process is also easy and does not involve any kind of complex process in
it.
 Chances of making funds arranged in more easy manner due to more persons
involved within it.
Disadvantages of partnership
 Liability is of the partner and limited over number of partners.
 In this major issue comes in relation conflict taking place between partners which
makes partnership dissolved.
Private Company: This organization is able to arrange funds through loan from bank
equity and crowd funding. The organization is been managed by directors appointed for such
matters.
Advantages of Private Company are
 Separate legal entity is there for the owners and is not considered as one unit with
owners.
 The another important advantage is based over Perpetual succession (ISAKSSON,
LÖFSTEN, and RANNIKKO, 2021).
Disadvantages of Private Company
 Process involved in registering is long
 Complexity is there within its consuming.
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Public Company: These organizations are funded through selling of it shares to
public and taking loans from any kind of government organizations. Management of these
organizations are done through its owners.
Advantages of Public Company
 Capital raised is selling of share or investment don by partners.
 Finance is been arranged in easy way.
Disadvantages of Public Company
 Directors and shareholders have different aims which make conflict arise at time.
 No control on ownership
How different external factors affect the performance of a business – PESTLE
Analysis
 Political Factors: These are those factors based upon political polices formed by
government in order to make an organization operate in organized manner. Also these
policies formed by government mainly impacts external functioning of organization
by impacting sales of product (Gurca, 2021).
 Economic Factors: Such factors is based upon economic growth of a country which
deals with unemployment, import and export rate. Also it deals upon all the other
economic factors which makes revenue generation possible. It impacts organization
through affecting their finances which make resource available for making studies
possible.
 Social Factors: Such factors is based over all kinds of trends that has been occurring
within society. Also makes sure that trends and preferences of customer understood.
Organization gets impacted in a way that if they are not able to follow recent trends of
studying then students would not score good marks which makes ranking reduced
 Technological Factors: These are the factors which are based over technological
factors taking place within society. It make organization like Tesco improve its
delivery of online medium.
 Legal Factors: It is related to those factors which has been making an organization
run as per law prescribed for working of an organization. It impacts legality of an
organization(Gupta, Kumar and Wasan, 2021).
 Environmental Factors: In these environmental factors is been deal over which
makes protecting of environment done. Organization like Tesco is required to follow
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this by making biodegradable products which makes environmental awareness created
within it. also the organization is able to attract more and more customers within it.
CONCLUSION
From the above discussion it can be concluded that management is the process which
help in managing work within an organization. Also the process of management leads over
development of various factors which is involved within an organization. In this file various
kinds of business organization is covered and explained through managing and funding. Then
in this different types of business is been developed is explained that is large, small and
medium scale industry. In this PESTLE analysis is done over making analysis of external
factors of an organization. In the end advantage and disadvantages is been covered of various
business organization
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REFRENCE
Books and journals
Aslan, M., 2021. Assessment of Post-Crisis Financial Performance and Actions in Italian
Companies (Doctoral dissertation, Politecnico di Torino).
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use at either stock or non-stock companies. In HIGH TECHNOLOGY
MANAGEMENT & ECONOMICS (pp. 62-69).
Chang, A.S., Paramosa, L.S. and Tsai, C.Y., 2021. Linking key topics to environmental
indicators in corporate social responsibility reports of construction companies.
Corporate Social Responsibility and Environmental Management.
Hindradjaja, G.G., 2019. Financial Performance of Construction, Property, and Trading
Companies Based on Working Capital, Liquidity Ratio, and Profitability Ratio.
Advances in Civil Engineering and Sustainable Architecture, 2(1), pp.1-9.
Huang, Y., 2020. The Relationship between the Impact that Customer Satisfaction has on
Service Companies' and Product Companies' Revenue. Frontiers in Economics and
Management, 1(12), pp.20-22.
Lichtenthaler, U., 2020. Beyond artificial intelligence: why companies need to go the extra
step. Journal of Business Strategy.
Mataveli, M., Ayala, J.C. and Gil, A.J., 2020. An analysis of factors that influence the
decision to export: perspective of Brazilian companies. Academia Revista
Latinoamericana de Administración.
Mrňová, Z. and Roudná, V., 2020. FORMS OF FACILITY MANAGEMENT PROVISION
IN DIFFERENT TYPES OF COMPANIES. International Multidisciplinary Scientific
GeoConference: SGEM, 20(6.2), pp.193-200.
Perkumienė, D. and Traore, M., 2020. PROBLEMS OF LEGAL REGULATIONS OF
COMPANIES IN LITHUANIA AND MALI. Humanities Studies, (3 (80)), pp.138-
147
Winkler, H., 2019, September. Digital Business Model Patterns of Big Pharmaceutical
Companies-A Cluster Analysis. In Digital Economy. Emerging Technologies and
Business Innovation: 4th International Conference, ICDEc 2019, Beirut, Lebanon,
April 15–18, 2019, Proceedings (Vol. 358, p. 397). Springer Nature.
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