Report on Various Types of Companies and Business Operations

This report provides a comprehensive overview of different types of companies operating in the business environment, including micro, small, medium, and large businesses. It delves into various company structures such as sole proprietorships, partnerships, limited liability companies, public limited companies, and cooperatives, outlining their characteristics and examples. The report further explores different organizational structures like functional, divisional, and others, analyzing their impact on business productivity. Additionally, it examines external factors, including economic conditions, competition, and political and governmental policies, influencing business performance, and applies the PESTLE analysis to evaluate these factors. The conclusion emphasizes the importance of understanding company types and structures for strategic planning and achieving business objectives.

Types Of
Companies
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Table Of Contents
INTRODUCTION…………………………………………………………………………….3
Different sort of companies and how they work in the business organisation
environment………………………………………………………………………………….3
CONCLUSION………………………………………………………………………………7
REFERENCES………………………………………………………………………………8
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INTRODUCTION
Companies are the basis of foundation of any kind of business. There are
different types of companies which exist in this business world. Companies has been
categorised on the number of basis. It includes on the basis of number of members,
on the basis of liability of members, on the basis of mode of incorporation and also
other types. In this report the analysis has been done on the dissimilar kinds of
companies and their process of working in the business organisation. (Istok, and
et.al., 2019). The research has been done on the dissimilar business forms and
outside elements influencing business. It also includes about the dissimilar
organisational forms and how does commanding forms influence business capacity.
The report also aims about the outside elements that influence the production of a
business using the PESTLE analysis.
Different sort of companies and how they work in the business organisation
environment
In the business world, there are different kinds of businesses which includes
micro business, small business, medium-size business and large size business.
Micro Business: Under this kind of business, the type of companies consist of less
than ten employees and generates less than $25000 in annual revenue. Micro
businesses include sole proprietors with no employees. They have started their
business with a small amount of capital advanced from a bank or other organisation.
They have some characteristics which includes willing to take a risk, goals are
focused, seek advice from experts, driven for success and enthusiastic with full
confidence level. Examples of micro business can be grocery store in the locality,
fruits and dairy products seller.
Small Business: It can be defined as the sole proprietorship, partnership and an
owned cooperation which has fewer employees and have the less annual revenue
than a cooperation or regular-sized business.( Antonsson, A. B. and Hasle, P., 2015)
The characteristics of small business which includes that they have single owner, all
the management work has been controlled by the owner, they have restricted area of
operation and flexible in nature. Examples of small business are paper, toothpick,
pen industry and bakery.
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Medium Size Business: Medium size business can be defined as the business
which is defined in the companies act 2006 with up to 250 employees. Small sized
business can be in the form of family-owned and managed business . (Pytkowska,
M. M., 2016). By the virtue of its size, there are some complex entities where
ownership is separated from management. Characteristics of medium-size business
which includes passionate nature of the business, always ready to learn and update
their skills according to the time requirement, have a good approach in dealing with
customers when it becomes difficult to deal with them and always strive for
continuous improvement. Examples of this kind of business are manufacturers
engineers.
Large-size business: This kind of business can be defined as it recruits over 1000
employees. These kind of businesses earn more than one billion dollar. It has also
the IT staff which have various kinds of specialists. In this kind of enterprise, wide
variety of broad and specific skills have been used. It has various kinds of location at
domestic and international level. It has large capex. (Lim, and et.al., 2017).Under this
kind of business the main consideration for technology purchase includes
guaranteed time-ups, advanced features and security. Examples of large scale
industry can be cement, paper, engineering industry, food processing and
information and electronic technology.
There are also different types of companies which includes the following category:
Sole trader business: Under this kind of business, a sole proprietorship also
known as individual entrepreneurship or sole or can be called as simply
proprietorship.It is owned by the one individual and is a type of unincorporated entity.
The owner of this business is fully liable for all kinds of liabilities. (Vandenbroucke,
and et.al., 2015). The characteristics of this kind of business includes the ability of
taking of quick decision and freedom of work, it solely enjoys the whole profit, there
is also absence of government regulation and no separate entity. Examples of sole
trader business are sweet shop owner, beauty parlour and general store.
Partnership: To oversee the business operations and share its profits and liabilities
there can be arrangement between two or more people under the partnership. Under
this kind of company, all members share the profits and liabilities.
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There are some characteristics of partnership which includes for the outside public,
each partner is a principal while to the other partners is an agent. (Kisfaludi, A.,
2016) Nature of liability is same as the case of sole proprietorship. Examples of
partnership are: Uber and spotify, BMW and Louis vuitton.
Limited Liability Business: Under the limited liability business, the holders are not
oneself in charge for the company’s accounts and responsibilities. It is a kind of legal
protection for shareholders and owners. The characteristics of limited liability
business includes the pattern of tax ease, flexible in nature, act as a separate entity
and simple in nature. Examples of this kind of business are Blockbuster and
Westinghouse, anheuser-busch.
Public limited liability business: Under this kind of business, it is a kind of form
which is incorporated company for profit where ownership has been divided into
shares. These can be publicly tradable usually in a stock exchange. Characteristics
of this kind of business which includes it is led by the board of directors, it has
minimum number of seven shareholders and shares can be transferred into the free
manner. Examples are: Nike, Larsen & Turbo.
Cooperative: Under this kind of business, the organisation is controlled by its
members who can easily use their goods and services. Characteristics of
cooperative business which includes through the purchase of shares the finances
are contributed by the members. It has a democratic control over the business.
Examples of cooperatives are: 21st street co-op, agri bank FCB and ant hill
cooperative.
There are mainly seven types of organisational structures. It includes hierarchical
organisational structure, functional organisational structure, horizontal or flat
organisational structure, divisional organisational structure, matrix organisational
structure, team-based organisational structure and network organisational structure.
(Mettler, T. and Winter, R., 2016). Functional and divisional structures plays a very
important role in affecting the business productivity. Under functional organisational
structure, within the company employees are arranged according to their skills and to
their corresponding function. Every department is managed in an independent
manner. The main features about this type of organisational structure is that
employees focus on their role, motivate for specialization, helps teams and
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departments in a self determined manner. But it somewhere hampers the inter
departmental communication. It also makes difficult to analyse the process and
strategies for different markets or products in a company. (Dima, A. M. and
Vasilache, S., 2016)It somewhere also creates silos in an organisation. It affect the
productivity of business in a positive manner. If all the employees are aligned
according to their characteristics and to their specific skills then the chances of
getting the accurate result has been increased in terms of the final product and
service. It also gives the opportunity to the company to increase its revenue. If
everybody is focused about their role then there will be less chances of getting
confused and each person gives their hundred percent in contribution towards
making the final product. Each employee when it is specialised in its field then it also
give innovation to the company which helps in increasing the productivity of the
business. This kind of organisational structure also gives encouragement to every
team and department a sense of self determined nature due to which the discipline
nature also contributes in achieving the final objectives of the company.
There are various types of external factors which affect the performance of the
business. External factors can be the economy, competition from other businesses,
politics and government policy. Under the economy part, if the country has been
facing the recession situation then it will be rare chances of performing in a positive
manner by the company. When there is lots of competition from other businesses
then they have to come out with different ideas and techniques then it will become
difficult for the company to take a stand in the market. Politics and government policy
can also intervene in the performance of business because if the company does not
follow the rules and regulations of that particular country then they can ban the
particular product and service.( Méndez Valencia, S., 2016). The company also need
to aware if they are entering into a new market or in a new country then it has to
analyse whether they have any kind of election impact on the performance of the
business.
According to the PESTLE analysis, where P stands for the political conditions of the
country so company needs to evaluate whether they have any negative impact or not
on the performance of the business due to government intervention. Next is E which
stands for economic factors so they need to find out any inflation and recession
situation will not support for the new product and service. S stands for the
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sociological factor which tells about that whether the company has good relation with
that particular country or not otherwise it will become difficult to enter into that
particular market. Then T stands for the technological factor where the company
needs to evaluate that the technology which they have infused in their product or the
kind of technology they are going with in a new market then those country people will
accept that technology or cope up with that kind of product. In this way, it affect the
productivity of the business. Next is environmental factor where the business need to
analyse that whether they are familiar with that kind of environment or not otherwise
it will become a difficult situation for the product of the company to stand in that
market. Last factor is legal factor the company needs to very carefully work on this
particular factor because it may happen that when they enter into the new market
with a innovative product then in the same country with same kind of product already
launched in their own name so its very important that when final product is produced
then it should be get immediately get patented so that no one else can use their
product on their own name.
CONCLUSION
There are different kinds of companies in the business world. So whenever
somebody wants to start their business they have to make a proper plan so that they
can analyse where their idea can fit into which type of company and actually what
they want to execute with which kind of company in the market. (Renaldo, O. I.,
2019).Every kind of company has their own norms, terms, rules and regulations
because accordingly they can execute for their objectives and can achieve their
targets in a positive manner. Different organisations have different kind of
organisational structure and their working and process is different from each other.
There are some factors which affect the performance and productivity of the
business in terms of internal and external factors. These factors play a very
important role in maintaining a stand in the market at the international level.
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REFERENCES
Books and Journals
Habanik, and et.al., 2020. The impact of managerial decision-making on employee
motivation in manufacturing companies. Journal of Competitiveness, 12(2), p.38.
Ziółkowska, P., 2017. Analysis of forms of taxation of income of small and medium
companies (Doctoral dissertation, Kolegium Nauk Ekonomicznych i Społecznych w
Płocku).
Istok, and et.al., 2019. International corporate structuring of slovak companies using
tax havens. Journal of Competitiveness, 11(1), pp.22-40.
Antonsson, A. B. and Hasle, P., 2015. How can context affect what strategies are
effective in improving the working environment in small companies?.
Pytkowska, M. M., 2016. The role of bank loans to finance small and medium-sized
companies in Poland (Doctoral dissertation, Kolegium Nauk Ekonomicznych i
Społecznych w Płocku).
Vandenbroucke, and et.al., COMPANIES AND SUSTAINABLE MOBILITY.
Kisfaludi, A., 2016. Types of Companies in Hungary. ZEuP: Zeitschrift für
europäisches Privatrecht, (1), pp.76-86.
Dima, A. M. and Vasilache, S., 2016. Credit risk modeling for companies default
prediction using neural networks. ESPERA, 19(3).
Méndez Valencia, S., 2016. Analysis of the Mixture of Cultural Types Under
Competitive Values Framework in Public and Private Companies in the Mexican
Shallows (Análisis Del Tipo De Cultura Organizacional En Empresas Públicas Y
Privadas Del Bajío Mexicano Bajo El Modelo De Valores En Competencia). Revista
Internacional Administracion & Finanzas, 9(5), pp.77-93.
Renaldo, O. I., 2019. Analisis pengaruh jenis pembiayaan utang terhadap nilai
perusahaan pada perusahaan sektor non keuangan yang terdaftar di Bursa Efek
Indonesia= Analysis of the effect of debt financing types on firm value in non
financial sector companies listed in Indonesia stock exchange.
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