Analysis of Business Types, Structures, and PESTLE Factors Report

This report provides a comprehensive overview of various business types, including micro, small, medium, and large businesses, detailing their characteristics and examples. It explores different company structures, ranging from sole traders to cooperatives and limited liability partnerships, highlighting their key features. Furthermore, the report delves into organizational structures, such as functional and divisional structures, explaining their impact on business productivity. The report also includes a PESTLE analysis to examine how political, economic, social, technological, legal, and environmental factors affect business performance, offering insights into external influences. Overall, the report aims to provide a holistic understanding of business operations and the factors that influence their success.

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Contents
INTRODUCTION...........................................................................................................................1
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 Partnerships..3
SECTION 3......................................................................................................................................4
Identification of different organizational structures and explaining how does organisational
structure affect business productivity.....................................................................................4
How different external factors affect the performance of a business – PESTLE Analysis....5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A business can be defined as an organisation entity which is involved in industrial
professional or commercial activities. Business can be done in both ways profit and nonprofits
organisations. The purpose of this report is to analyse the various kinds of Companies on the
basis of their size which include micro business, small business, medium size business and large
size business. It also includes the complete explanation of various companies from solo traders to
cooperative and limited liability partnership. At the end this report also includes the different
structures of business and how the external factors of a business effective the operations of
business organisation.
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SECTION 1
Different types of companies and how they work
From a report, it is analyzed that the companies are divided in many types on the basis of
various factors. Various types of companies on the basis of their sizes are explained below as:
Micro Business: It refers to that business which includes the involvement of 10 employees in the
organization and the annual turnover is always less than £2 million (£1.7 million) (Kortelainen
and et. al., 2017). But characteristics of this business are that it include 10 employees and is very
small amount of capital is required for the purpose of starting such business. This business does
economic activity on a very small scale level. Example of micro business includes Issoria,
Manitoba Cards, The Willoughby Book Club and many more.
Small business: This type of business can be explained as it is a privately owned Corporation
having more than 10 employees but less than 50. It is examined that these business include the
annual turnover of less than £10 million. Sole traders come under this category as these
businesses include a single owner which performs all the activities operations of business. The
main features of small business include that there are 10 to 50 employee’s involvement in this
business and annual turnover is not more than £10 million. Café Pod Coffee Co., Davison
Canners, Fourex, Marshfield Bakery are the various examples of Small Business.
Medium Size Business: After the growth of small business it converts into medium-sized
business. It includes the involvement of less than 250 employees along with large requirement of
capital. It works as a medium term between small size business and large size business. Annual
turnover of medium sized business is more than £10 million but less than £50 million (Katz, J.A.
and Green, R.P., 2018). It can be considered as a characteristic of medium size business. Along
with this the involvement of more than 50 and less than 250 employees is another feature of this
business. Verdant Leisure, Captify, Smith Brothers (Contracting) Ltd., John Good Shipping are
the various examples of medium sized business.
Large Size Business: It can be defined as those reasons which do business operations on large
level with the involvement of more than 250 employees in the operations and the annual turnover
of such business can be considered as more than £50 million (Maxfield, S. and Schneider, B.R.
eds., 2019). The characteristic of large size business can be considered as it involve large number
of opportunities and the annual turnover of large sized business is always more than £50 million.
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Utilita Energy, Turtle Bay Restaurant, HH Global are the various examples of large size
business.
SECTION 2
Different companies from sole traders to cooperatives and Limited Liability Partnerships
Sole trader Business: It can be defined as the business unit which is owned by a single person
who is topper the second name of sole trader business is one man business. This business has
been operated by a single person which is the owner of business. The person which owned the
business is known as a sole trader or sole proprietor (McKnight, B. and Linnenluecke, M.K.,
2019). All the capital have been invested by the owner in this business.
Features:
 The owner of sole trader business is a single person.
 Search business has no separate legal entity.
Plumbers, grocers are the examples of Sole Trader Business.
Partnership: This type of business can be said as a legal relationship which is made by a written
agreement among two or more people or companies. In this business two or more people invest
money e together in a business and share the profits and losses in part (Håkansson, H. and
Snehota, I. eds., 2017). There are various types of partnership which include general partnership,
limited partnership, limited liability partnership and many more.
Features:
 Each and every partner which is involved in the partnership has unlimited liability.
 It is a agreement between two or more people. This agreement is in the written form.
GoPro & Red Bull, Pottery Bern & Sherwin Williams, Casper & West Elm are the various
examples of partnership.
Limited liability business: It refers to dad structure of business in which owners are not
personally liable for paint that directs all liabilities of organisation. It can be said that this
company has a hybrid entity as it involve the features of a corporation of partnership or sole
trade.
Features:
 This company involved the limited liability of members managers and employees.
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 This company is a fully depend on the decision of members as they want to continue the
same company or want to create a new one.
Barclays Bank, Diageo, Burberry are the various examples of limited liability companies.
Public Limited Liability Company: It refers to those companies who are listed under Stock
Exchange (Gyódi, K., 2019). In simple words it can be defined as a public limited company is
the equivalent of a US publicly traded company e which carries the Inc. or Corporation
designation. It is necessary to use PLC after the name of organization.
Features:
 The formation working and winding up of all activities of these companies are strictly
governed by laws, rules and regulations.
 It is necessary to have minimum of seven members.
British Petroleum Company, British American Tobacco, HSBC Holdings are the various
examples of Public Limited Company (Miles, I.D., Belousova, V. and Chichkanov, N., 2018).
Cooperative: These types of business are totally different from other types of companies. The
reason behind it is that such type of organization works only for the benefit of their members.
This business are also known as co-op.
Features:
 The membership of cooperative societies is worked as voluntary. Anybody who want to
join the society is free to join it.
 It is necessary to register cooperative society under the cooperative societies act.
Suma Foods, Unicorn Grocery are the examples of cooperative (Elo, M. and Riddle, L. eds.,
2019).
SECTION 3
Identification of different organizational structures and explaining how does organisational
structure affect business productivity
Following explanation is showing the various structures of organization:
Functional Structure: It can be defined as the most usable structure of Organization in which
the organization is divided in various small groups on the basis of specialization functional area
such as IT, marketing, HR, Finance and many more (Ponte, S., 2019). It is necessary to hire the
employees having special skills. Organization who are following functional structure at
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workplace, categories the employees according to their skills and qualities. It leads to the
improvement of productivity of organization because all the employees have their special skills
which result in the completing the task in an effective and efficient manner. The employees who
are not so skilled in a specific area, not able how to do the task efficiently (Copani, G. and
Behnam, S., 2018). It increases the confidence level of employees of completing the work which
eliminates the supervision at workplace. It creates a clear line in the organization regarding their
tasks and activities so that it may clear to employees that what they have to do. Along with this it
also leads to the reduction of cost of organization as employees are divided according to their
functions of Departments.
Divisional structure: It refers to the structure of Organization in which complete organization is
divided into different groups and each and every group has their own groups or functional
departments. Under the structure organization provide all the necessary functions and resources
to all the functional department of all Groups by supporting the product line which include
Marketing department, its own finance department and IT Department (Tanda, A. and Schena,
C.M., 2019). It gives a huge advantages to multinational companies it means the companies who
are doing business act various locations because it classify all the locations in groups and it
distributes all the resources in various divisions having separate functional departments full stop
it leads to the increase in productivity as this structure involves huge amount of specialization
full stop Each and every individual have their own responsibility and they have two complete the
task and ensures the efficiency by saving time. Along with this it is also beneficial for the
employees as it makes the employees power factor in their field.
How different external factors affect the performance of a business – PESTLE Analysis
For the purpose of knowing about the external factors of a business organization, PESTLE
analysis is done which is a tool helps in knowing about those factors (Bucheli, M., Salvaj, E. and
Kim, M., 2019). Every organization have to follow all the external affecting factors which
influence the business for the purpose of smooth running. This tool helps the organization in
analyzing political economic and social technological legal and environmental factors of a
business organization. It also helps the organization in grabbing all the opportunities which are
available in market along with creating various critical situations for them. Following are the
various reasons that how a PESTLE analysis affects the performance of a business firm:
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Cost effective: It refers to a process which consumes only time. It is not required to invest in any
hard and fast course teams for this purpose. Only a pen and paper is enough to do the complete
analysis of external factors. How to conduct the PESTLE analysis is in the hand of organization
but it do not affect the cost of analysis.
Development of alertness: The purpose of PESTLE analysis is to examine the external factors
which influence the business. If the management found any challenge in the near future, it can
also be analyzed only by PESTLE analysis. Hence it can be said that it develop alertness for the
organization (Andreini, D. and Bettinelli, C., 2017). It also make available of all the changes and
development which are taking place in the market.
Exploit opportunities: As mentioned earlier that this tool helps in analyzing all the factors full
stop it means it also leads to the analyzing of various opportunities which are available in the
surroundings of organization. Along with this the organization is also able to know about the
Technologies which are followed by their competitors. Hans it can be said that it also helps in
beating the competition of market.
CONCLUSION
From the above report it is concluded that business have to perform various practices. It is
the responsibility of Management to ensure that all the practices are done in an appropriate
manner which helps in the achievement of organizational goals and objectives. Furthermore it is
also analyzed that the business is divided in various categories on the basis of various factors
such as number of employee’s capital investment liabilities and many more. Organization is
divided in various structures as it is necessary for them to make clarity in the organization which
is very helpful in achieving the goals and objectives. For the same purpose the organization has
to analyze the various external factors which are going to influence the operations of business.
PESTLE analysis helps the same as it helps in analyzing the external factors. So that they can
grab the opportunity is and remove all the challenges along with preparing the organization to
face the challenge which are going to be comes in future.
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REFERENCES
Books and journal
Andreini, D. and Bettinelli, C., 2017. Business model innovation. Springer International
Publishing AG.
Bucheli, M., Salvaj, E. and Kim, M., 2019. Better together: How multinationals come together
with business groups in times of economic and political transitions. Global Strategy
Journal, 9(2), pp.176-207.
Copani, G. and Behnam, S., 2018. Remanufacturing with upgrade PSS for new sustainable
business models. CIRP Journal of Manufacturing Science and Technology.
Elo, M. and Riddle, L. eds., 2019. Diaspora business. BRILL.
Gyódi, K., 2019. Airbnb in European cities: Business as usual or true sharing economy?. Journal
of Cleaner Production, 221, pp.536-551.
Håkansson, H. and Snehota, I. eds., 2017. No business is an island: Making sense of the
interactive business world. Emerald Group Publishing.
Katz, J.A. and Green, R.P., 2018. Entrepreneurial small business. McGraw-Hill Education,.
Kortelainen, H., Hanski, J., Kunttu, S., Kinnunen, S.K. and Marttonen-Arola, S., 2017. Fleet
service creation in business ecosystems-from data to decisions: Fleet information
network and decision-making.
Maxfield, S. and Schneider, B.R. eds., 2019. Business and the state in developing countries.
Cornell University Press.
McKnight, B. and Linnenluecke, M.K., 2019. Patterns of firm responses to different types of
natural disasters. Business & Society, 58(4), pp.813-840.
Miles, I.D., Belousova, V. and Chichkanov, N., 2018. Knowledge intensive business services:
ambiguities and continuities. Foresight.
Ponte, S., 2019. Business, power and sustainability in a world of global value chains. Zed Books
Ltd..
Tanda, A. and Schena, C.M., 2019. FinTech, BigTech and Banks: Digitalisation and Its Impact
on Banking Business Models. Springer.
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