BMP3002 Business in Practice: Company Types and PEST Analysis Report

This report, prepared for the Business in Practice module, comprehensively examines different types of companies operating in the UK, including micro, small, medium, and large businesses, detailing their characteristics and operational aspects. It explores various ownership structures such as sole proprietorships, partnerships, limited liability businesses, public limited liability businesses, and cooperatives, highlighting their key features. The report also analyzes organizational structures, such as hierarchical, functional, and matrix structures, and discusses their impact on business productivity. Furthermore, it applies a PEST analysis to evaluate how political, economic, social, and technological factors influence business performance, using Morrison's as a case study to illustrate the practical implications of these factors. The report aims to provide a thorough understanding of the business landscape and how internal and external factors affect business operations.

BUSINESS IN
PRACTICE
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Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1:................................................................................................................................................3
Different types of companies as well as how they work....................................................................3
SECTION 2...........................................................................................................................................5
Various companies from sole traders to cooperatives and Limited Liability Partnerships.................5
SECTION 3:..........................................................................................................................................7
Various organizational structures as well as explanation of how organizational structure affects
business productivity.........................................................................................................................7
Using PEST analysis explaining how various external factors affect the performance of a business 8
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10
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INTRODUCTION
Business is taken into consideration as a separate legal entity that continues powerful
making plans & which could assist to set up a sturdy infrastructure that may offer Innovative
items and offerings which could assist to draw customers. There are numerous kinds of
agencies are walking within the UK like small, micro, medium as well as big agencies that
include particular traits as well as scale. This assignment would give an explanation for
numerous kinds of agencies as well as numerous possession systems like sole proprietorship,
co-operatives, partnerships, agencies, and plenty of others (Amato, 2021). This file analysis
any sort of corporate shape along with determination how companies shape could have an
effect on the productiveness of the corporation. For this assignment, Morrison’s organisation
comprises, that is famous global British store shape that functions numerous supermarkets as
well as shops everywhere in the globe. These corporations mounted in 1899 with the aid of
using William Morrison. This file comprises of a PESTLE evaluation to analyse the effect of
outside elements at the overall performance of the organisation.
TASK 1:
Different types of companies as well as how they work.
There are diverse styles of corporations running their corporation’s within the United
Kingdom that could assist to enhance the residing trendy of the humans as well as
additionally offer suitable job possibilities to the agricultural and concrete humans &
additionally goal neighbourhood groups so we can stay a very good life. The indulgence of
various varieties of corporation’s within the United Kingdom financial system is extra as well
as corporations could offer a wonderful effect at the monetary increase of the nation
(Bodrova and et. al., 2021). There are diverse form of corporations that taken into
consideration with the aid of using the United Kingdom marketplace that are defined below-
Microbusiness could be very small in length as well as consists of a completely small stage of
scale as well as calls for lesser quantities of finances to begin an enterprise. In this form of
corporation, much less than 10 employees could paintings as well as its turnover taken into
consideration beneath £2 million.
Characteristics
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• Involvement of restrained employees: These forms of corporations could be very tiny
in length so there's a restrained indulgence of the personnel as well as different
employees to function their enterprise functions.
• Low profitability: Micro corporations get low stage of profits due to the fact there's
much less quantity of functions as well as enterprise sports are performing so it is
enterprise proprietors could acquire much less profits.
• Lower manufacturing: Micro businesses modify the decrease ranges of
manufacturing sports and convey fewer quantities of products as well as services.
Small enterprise these varieties of corporations are personally owned as well as
incorporate precise possession like a sole trader, partnership, along with different businesses.
In this sort of business, much less than fifty employees could paintings as well as it consist of
turnover price of beneath £10 million (Cunningham, 2020).
Characteristics
• Small groups of personnel: Generally small corporations keep small groups of
personnel due to the fact there's handiest indulgence of lesser than fifty participants in
order that only some corporations & groups may be formulated with the aid of using
the chief to function enterprise sports.
• Small marketplace regions: Small corporations cowl small marketplace regions and
places for the shopping for as well as promoting sports. This form of enterprise
handiest objectives lesser markets & generates a mean income.
• Sole & partnership possession: This enterprise is privately owned & its proprietor
keeps a selected possession shape like a partnership as well as sole proprietorship &
proprietors could manipulate along with managing all of the personnel & enterprise
procedure.
Medium enterprise
Medium enterprise controls their enterprise functions maximum of the region & cowl
rural as well as neighbourhood marketplace & advantage extra profits in comparison to the
micro as well as small corporations (Devkot and Howington, 2021). On this sort of
corporations much less than two hundred and fifty employees can paintings as well as the
turnover price may be taken into consideration beneath the £50 million.
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Characteristics
• More productiveness: This sort of enterprise generates extra productiveness in
comparison to the small corporations & their managers as well as leaders could
undertake numerous techniques & rules to enhance the productiveness in their
employees.
• Good income: Medium businesses could generate extra income & functions their
enterprise sports in maximum of the neighbourhood as well as rural regions so we can
hook up with the local community & additionally offer them right job.
• Participation of extra humans: In those corporations, there's the contribution of extra
personnel & there's additionally the indulgence of different externals like providers &
investors, as well as others.
Large enterprise
Large corporations could call for Massive capital & finances to function enterprise
sports. These corporations need extra assets as well as employees. In huge companies extra
than two hundred and fifty employees could task and its turnover incorporate extra than £50
million (Ghauri and et. al., 2020).
Characteristics
• Consider diverse assets: Large corporations need excessive stage of assets, equipment
& different equipment’s that could assist to functions enterprise successfully &
proprietors can increase their enterprise all over the globe.
• High income margin: Large Corporation’s advantage excessive stage of profits with
the aid of using their creative as well as innovative products. They could appeal to the
clients with their services and products advantage extra Competitive edge.
SECTION 2
Various companies from sole traders to cooperatives and Limited Liability Partnerships
The information of all one of a kind of commercial enterprise shape is mentioned below-
• Sole Proprietor Business: This kind of Company shape is taken into consideration the
most effective manner to check in a commercial enterprise. The proprietor of the
commercial enterprise is vulnerable to pay taxes. This kind of commercial enterprise
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is comprising as an integrated commercial enterprise as well as it is straightforward
for the proprietor to found as well as unorganised, hold each functions with itself with
none extra interference from the political parties. They could make their agency extra
famous as well as behaviour diverse functions with different contractors. There are
diverse traits are concerned on this kind of possession shape including unfastened
from unique criminal formalities as well as consideration, limitless legal
responsibility, privacy, liberty for choice of commercial enterprise, sole management,
and plenty of extra that reveal this commercial enterprise with some other kind of
possession shape (Greenwood, 2021).
• Partnership: Generally partnership incorporates or extra humans who can comply
with take a threat as well as percentage earnings along with losses collectively within
the commercial enterprise. Business companions are vulnerable to percentage costs,
responsibilities, revenue, as well as threat for theft the agency. The partnership is
taken into consideration because the uninitiated commercial enterprise entity as well
as their companions is self-managed and self-employed. Partnership companies
consist of diverse traits including the life of a right settlement structure, sharing of
earnings, employer relationship, and nature of legal responsibility, non-transferability
of hobby, possession as well as control. All those traits are gambling a vital position
to hold the operating of the partnership firm.
• Limited Liability Business: This agency possession shape is similar to partnership
aside from that during that companions' legal responsibility is unique & confined in
phrases of cash that they make investments within the agency. LLB may be a person
character agency along with additionally an affiliation of or extra character. All the
participants who're concerned within the agency, percentage income that are constant
out in an LLP settlement d there's a want to ship all individuals self-evaluation
reviews as well as tax returns any want to pay profits tax & additionally percentage
partnership earnings. This commercial enterprise includes diverse traits like a distinct
entity, confined legal responsibility, flexibility, simplicity, as well as tax ease.
• Public Limited Liability Business: Public confined legal responsibility commercial
enterprise is sort of a for-earnings affiliation wherein possession is in particular
separated into stocks which can be publicly tradable in an inventory exchange. This
kind of commercial enterprise additionally concerned a few traits including
shareholders' legal responsibility, quantity of participants, confined legal
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responsibility, transferable stocks, economic privacy, excessive cost, as well as huge
capital (Schmitt and Hörner, 2021).
• Cooperative: This kind of agency additionally known as a “Co-op", those
corporations in particular owned as well as managed through their participative
participants, who additionally manifest to make use of items & offerings of the co-
operative. Certain unique traits of cooperative commercial enterprise such as
voluntary membership open membership, as well as democratic control, surplus
distribution, confined hobby on capital, & provider motive.
SECTION 3:
Various organizational structures as well as explanation of how organizational structure
affects business productivity
Organizational shape is a scientific as well as strategic framework specifically followed
with the aid of using maximum businesses due to the fact it could assist to preserve every as
well as each function of the employees in an green way. There are numerous kind of
corporate systems are taken into consideration with the aid of using the corporation which
might be mentioned under-
• Hierarchical structure: This kind of organizational shape is pyramid-formed that
keeps a selected corporate chart. In this shape, the framework of command waft from
pinnacle to down from CEO to lower-stage personnel. There are numerous advantages
of this shape inclusive of offer a higher stage of authority as well as responsibility,
offer an excellent reporting structure, encourage personnel as well as display a
powerful profession path, the coolest possibilities for promotion, and lots of extra.
Morrison’s is a big corporation & comprise numerous chains of supermarket as well
as shops so this is with the aid of using corporation observe an intensive corporate
shape that guarantees powerful running of personnel as well as operations at the
everyday basis. This shape affords an excellent effect at the productiveness of the
corporation in order that Morrison’s could correctly obtain their company’s goals
(Serviss, 2021).
• Functional Structure: Functional shape much like a hierarchical shape, this shape
usually begins off evolved from better function stage personnel due to the fact they're
extra accountable in the direction of their tasks as well as additionally they've the
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proper to have a choice on behalf of each employee. The waft of facts additionally is
going pinnacle to bottom. All the personnel are prepared in a right way and
additionally comprise particular skills. In this shape, the various departments could
control independently. This shape is beneficial to beautify the productiveness of the
enterprise in order that corporation could make extra revenues.
• Matrix Structure: These corporate structure activities are like a grid and suggest
cross-useful groups which can be busy with this particular assignment. For example,
an engineer is running within the engineering branch however additionally so part of a
selected assignment in any other branch. This shape keeps each roles as well as
reporting bonding with the personnel.
Using PEST analysis explaining how various external factors affect the performance of a
business
This evaluation is useful to pick out the effect of outside elements at the overall
performance and productiveness of the employer in order that it makes it smooth for the
companies to attend to some of these elements in a powerful way. The analysis of PEST
evaluation within the relation of Morrison’s are done below-
• Political Factors: This component specifically worried political balance or instability,
alternate, alternate regulations, taxation rules, overseas alternate rules, and lots of
greater that have an effect on immediately the overall performance of Morrison’s. The
effect of this component impacts the maximum it is why Morrison keeps all of the
political concerns as well as manages political balance (von Schlippe and et. al.,
2021).
• Economic Factors: Generally this component consists of financial increase of the
nation, hobby rate, inflation, employment rate as well as recession. It is vital to attend
to some of these elements the Morrison’s due to the fact it's far a massive corporation
so it may assist to offer greater low-cost increase to the nation. Due to a few peculiar
conditions, the employer sets a powerful pricing approach to benefit greater profit.
• Social Factors: Social elements incorporate age, gender, income, cross-cultural
sports, region, shopping for energy of the customer, taste, as well as choices of the
clients in order that Morrison’s could entice the clients & offer them first-class item
shipping which could assist to benefit greater profits.
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• Technological Factors: This involves any modification in technological software’s or
hardware’s such as equipment’s or machineries. This allows Morrison to bring
different latest software’s which can reduce the manual work along with saving of
time as well as money. Through this Morrison could bring different innovations into
its business that is helpful in catering more and more customers in market (Wolff-
Bye, 2021).
CONCLUSION
As for this report it is able to be summarized that there are numerous form of
organizations are perform their enterprise in United kingdom like micro , small , medium as
well as huge a majority of these organizations are gambling their excellent participation
within the improvement of the economy. There are numerous form of possession shape also
are taken into consideration why this record along with sole trader, co-operative, partnership ,
public constrained legal responsibility enterprise and plenty of extra there are numerous traits
of those organizations that keep a selected procedure. This record additionally mentioned one
of a kind form of company’s shape & it's far taken into consideration that better business
shape is extra suitable for huge corporation. This record additionally performs PEST
evaluation as well as evaluated the effect of outside issue at the productiveness & overall
performance of the enterprise.
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REFERENCES
Books and Journals
Amato, V., 2021. The Sustainable Development Goals: A Framework for Business. In
Corporate Sustainability in Practice (pp. 21-40). Springer, Cham.
Bodrova and et. al., 2021. Internal Control for Ensuring Sustainable Development of a
Business. In Frontier Information Technology and Systems Research in Cooperative
Economics (pp. 579-587). Springer, Cham.
Cunningham, L.A., 2020. Adapting to Remote Law Practice through the Pandemic: Essays
from the GWNY 2020 Business Lawyering Class. GWU Legal Studies Research
Paper, (2020-22).
Devkot, M.L. and Howington, E.B., 2021. Using real estate data to improve business student
interpretation in regression. Journal of Statistics and Management Systems, pp.1-18.
Ghauri and et. al., 2020. International Business Negotiations: Theory and Practice. Edward
Elgar Publishing.
Greenwood, M., 2021. New Editor-in-Chief for the Journal of Business Ethics.
Schmitt, A. and Hörner, S., 2021. Systematic literature review–improving business processes
by implementing agile. Business Process Management Journal.
Serviss, E., 2021. Engaging with Customers on Social Media: Insights from Business-to-
Business Companies.
von Schlippe and et. al., 2021. Family and Business: The “Impossible Endeavour”. In The
Two Sides of the Business Family (pp. 53-72). Springer, Cham.
Wolff-Bye, C., 2021. Business’ Role in a Changing Society. Key Steps to Deliver a Purpose-
Led Strategy that Responds to Climate Change and Social Inequality. In Corporate
Sustainability in Practice (pp. 127-141). Springer, Cham.
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