Company Types, Structures, and PESTLE Analysis: BMP3002 Practice

This report provides an analysis of various company types, ranging from micro-businesses to large enterprises, categorized by size and legal entities, using Morrison as an example. It explores different business structures, including hierarchical, matrix, and functional structures, and examines how these structures affect business productivity. The report also includes a PESTLE analysis to identify external political, economic, social, and technological factors influencing business performance. Different ownership forms such as sole traders, partnerships, limited liability businesses, public limited liability businesses, and cooperatives are also discussed. The report concludes by emphasizing the importance of selecting appropriate business structures and managing external factors to enhance overall business performance and economic contribution.

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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Name:
ID:
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Contents
Introduction 2
Section 1: Different types of companies and how they work
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Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships 3
Section 3: Different businesses structures and internal factors affecting
business 4
Conclusion 6
Reference List 7
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Introduction
The main objective of this report is to analyse the different forms of companies along
with their organizational environment in an efficient manner. In the present report, all the
companies are being classified with the assistance of their size as well as their legal entities
that includes certain examples (Amato, 2021). The report also mentions the different structure
of business, functional as well as departmental along with an analysis of PESTLE framework
which is being utilized to identify the various external forces that can directly influence the
operations of company as well as its functions. The company which is being taken for this
project is Morrison.
Section 1: Different types of companies and how they work
Micro business:
Micro-business is a type of small firm which operates with fewer than ten people
within an organization. In this, scale and size are the main distinction between small business
and micro level enterprises. The yearly turnover of the organization is higher than €2 million.
It is been evaluated that micro businesses majorly deals retail, health care, social support and
construction sector. Such form of businesses are being regulated in identical manner as other
business firms & their tax payment depends upon the type of enterprise which is being
chosen by partnership, sole trader, LLC or even corporation (Bodrova and et. al., 2021).
Small business:
This is termed as the privately functioned & regulated partnership, association or a
corporation that comprises of a restricted number of staff who are going to perform the task
in order to gain high revenues for the business. These types of industries perform an
important role for the development of the economic & level of growth of the nation. The
business holder invests the needed funds or money in functioning of business such as
purchasing land, machinery, plant or other expenses. A small business is an enterprise whose
yearly turnover ranges more than €2 million but is less than medium size turnover. This is
categorized as an independent organization which is being owned & governed by an
individual that gains & faces profit as well as losses for the company (Cunningham, 2020).
Medium size business:
Compared to small businesses, businesses with larger scale but fewer businesses are
considered medium-sized businesses. These companies have fewer than 250 employees in
their businesses and have a turnover of up to £ 50 million in a fiscal year (Devkot and
Howington, 2021).
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Large size business:
Large businesses are companies that carry out a large range of functions at the
national and global level. These forms of companies have more than 250 employees in their
companies and invoice more than 50 million pounds in a single fiscal year. These companies
are the largest taxpayers in the country, creating high-level employment opportunities and
contributing to the economic up-gradation of the country (Ghauri and et. al., 2020).
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships
Sole trader business:
This type of organizational form is considered to be the most effective way to control
an enterprise. It is easy for commercial company owners to pay taxes. This type of business is
understood as a comprehensive enterprise. It is easy for the owner to establish and dissolve,
and maintain each operation by itself without additional intervention by the political party.
They can make the organization more famous and play various roles with various contractors.
This type of possession has various features, comprising the removal of one-off criminal
procedures, consideration, unlimited legal liability, privacy, freedom of business choice,
exclusive management, & many other features that reveal this type of transaction
(Greenwood, 2021).
Partnership:
Generally speaking, partnerships include additional people who could meet threats as
well as profit and loss percentages within the business organization. Business partners are
vulnerable to sharing cost, liability, revenue, and institutional theft. It is considered a
partnership as the uninitiated business entity & its partners are self-managed and
autonomous. Associations have a variety of characteristics, including the life of the
entitlement settlement structure, income distribution, relationships with employers, the nature
of legal responsibilities, and non-transferability of hobbies, possession and control. All these
characteristics are betting on an important position to keep the association operational
(Schmitt and Hörner, 2021).
Limited liability business:
This form of institutional ownership is similar to a partnership, except that during this
period, the legal responsibilities of the partners are unique and limited to the phrases of cash
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they invest in the institution. The LLB may be a personal role agency, with additional
membership or roles. All participants who are following within the organization, the
percentage of income that continues to appear in the LLP agreement want to send all the
individual self-assessment comments and tax returns, and they want to pay income taxes and
an additional share of income from the society. This type of business enterprise has many
characteristics, such as a single entity, limited liability, flexibility, simplicity, and tax relief
(Serviss, 2021).
Public limited liability business:
A public limited liability venture company is a pre-sale subsidiary business in which
ownership is specifically separated into shares that could be publicly traded on a stock
exchange. These trading organizations also have several characteristics, such as shareholder
liability, large amount of participants, limited legal liability, transferable shares, economic
privacy, high costs, and large capital.
Cooperative:
These institutions are also called "cooperatives", especially those companies that are
owned and managed by their participating participants, & also demonstrate the use of
cooperative goods and products. Some unique characteristics of cooperative business
enterprises, like voluntary membership, open membership and democratic control, restrictive
interest in capital, surplus distribution, and supplier motivation
Section 3: Different business structures and external factors
affecting business
3.1 Identification of different organizational structures and explaining how
does organizational structure affect business productivity
The organizational form is a scientific strategic framework, especially followed with the
help of the use of the largest company, because it can help to protect all the functions of the
employees in the green channel. With the help of using companies, multiple company
systems can be considered, which can be mentioned below: Hierarchical structure: This organizational form is pyramid-shaped and preserves the
selected company organization chart. In this way, the command framework floats
from the highest level to the lowest level from the CEO to the lowest level personnel.
This format has many benefits, including providing a higher level of power and
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accountability, providing an excellent reporting structure, encouraging people and
demonstrating a strong career path, the best promotional opportunities, and lots of
additional content. Morrison's is a large company consisting of many supermarket
chains and stores, thus, with the help of the company's intensive observation business
form; it ensures strong personnel operations and day-to-day operations. This shape
has an excellent effect on the productivity of the company so that Morrison can
successfully achieve the objectives of the company. Matrix structure: These matrix structure tasks are like a grid & proposes cross-utility
teams that may be busy with this specific task. For instance, an engineer runs in an
engineering branch, but is also component of a chosen task in any different branch. In
addition to reporting links to employees, this form also maintains each role (von
Schlippe and et. al., 2021).
 Functional structure: The functional form is very similar to a hierarchical form; this
form usually evolves from better functional stage personnel, because they are more
responsible for directing their tasks and have the appropriate representation for each
employee. Many events are also bottoming out. All staff is trained in the right way
and also has specific skills. In this way, each department can be controlled
independently. This form is conducive to beautify the productivity of the company, so
that the company can generate additional income.
3.2 How different external factors affect the performance of a business –
PEST Analysis
This assessment is beneficial to select out the impact of outdoor factors at the general
wholesome performance & productivity of the agency simply so it makes it clean for the
businesses to take care of a number of those factors in an effective way. The evaluation of
PEST assessment in the respect of Morrison’s are achieved under- Political Factors: This thing particularly concerned political instability or stability,
exchange, taxation rules, exchange regulations, foreign places exchange rules, &
plenty of more which have an impact on without delay the general wholesome
performance of Morrison’s. The impact of these thing influences the most its miles
why Morrison continues all the political worries in addition to manages political
stability. Economic Factors: Generally this thing includes a monetary growth of the nation,
interest price, inflation, employment price in addition to recession. It is critical to take
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care of a number of those factors the Morrison’s because of the truth it is a huge
company so it is able to help to provide more low-price growth to the nation. Due to 3
odd conditions, the agency units an effective pricing method to advantage more profit. Social Factors: Social factors comprise age, gender, cross-cultural sports, income,
region, taste, looking for strength of the customer, in addition to picks of the
customers simply so Morrison’s may want to trap the customers & provide them high-
quality object delivery that can help to advantage more profits.
 Technological Factors: This includes any amendment in technological software
program or hardware which includes equipment’s or machinery. This permits
Morrison to convey special modern software program’s that could lessen the guide
paintings alongside saving of time in addition to money. Through this Morrison may
want to convey special improvements into its enterprise this is beneficial in catering
to increasingly clients within the market (Wolff-Bye, 2021).
Conclusion
As for this report, it could be concluded that there may be several shape of agencies
are carry out their agency within the UK like micro, small, medium in addition to large a
majority of those agencies are playing their extremely good participation in the development
of the economy. There is several shape of ownership form are also considered why this file in
conjunction with sole trader, co-operative, partnership , public confined felony duty agency
and lots of more there are various trends of these agencies that maintain a specific procedure.
This file moreover referred to one in all a type shape of company’s form & it is considered
that higher commercial enterprise form is more appropriate for a large corporation. This file
moreover plays PEST assessment in addition to examine the impact of the out of doors
trouble on the productiveness & general overall performance of the agency.
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