Business in Practice: Company Types, Structures, and External Analysis

This report provides a comprehensive analysis of different business types operating in the business environment, ranging from micro to large-scale enterprises, and explores various organizational structures such as sole proprietorships, partnerships, cooperatives, and limited liability companies. It delves into how these structures function and contribute to the economy. The report also examines the impact of macro factors on businesses, utilizing PESTLE analysis to assess political, economic, social, technological, legal, and environmental influences. Furthermore, the report uses Morrisons, a leading supermarket chain, as an example to illustrate these concepts, highlighting its organizational structure and how external factors affect its operations, emphasizing the importance of adapting to market dynamics and regulatory changes for sustained growth and profitability. Desklib offers this and many more solved assignments for students.

BUSINESS IN
PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION: 1 Different types of companies and how they are working .........................................1
SECTION: 2 Define different organisation from sole trader to partnership, cooperatives &
limited liability.................................................................................................................................2
SECTION: 3 Different business structure and macro factors which is affecting business.............2
CONCLUSION ...............................................................................................................................4
.........................................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The aim of the report is to analyse the different type of business which is operating in the
business environment. Business is the separate business entity in which is being formed by the
person or the group with the consideration of generating higher profits and market growth(Sanasi
and et. al., 2020). Organisation apply some sort of theories and application in order to understand
the market scenario and the consideration of the government in relation to the business. In
section 1 and 2, the report will cover the various examples of the business and in last section
company will take the consideration of Morrisons. It is the leading chain of super market which
is headquartered is in Bradford West Yorkshire, England. This is founded in 1899 by William
Morrisons who started their business with an egg and butter stall. This report will cover the
different type of business and also analyse the external factors in the market which is impacting
the functionality of the business.
SECTION: 1 Different types of companies and how they are working
Micro business
Definition: These are the type of business venture which are operated for the survival of
the individual as they are having limited resources and capital in order to run their business.
They are operating their business in the local market of London due to insufficient funds.
Characteristics: An enterprises where less than 10 employees are working due to small
size of business and the limited resources. They usually generate the revenue of £632000 and
also emphasis on fulfilling the needs and wants of their potential customers.
Example: Miel Bakery is the suitable example for the small enterprises which is offering
limited range of products such as cake, pastries etc.
Small business
Definition: these are the enterprises that are larger than micro venture and operating their
business in order to sustain in the market for long period of time. They also emphasising on
proving various employment opportunities as there working with maximum 49 employees.
Characteristics: these business operating their business to limited areas due to having
limited funds within the organisation. They are working with the aim of generating higher profits
and also liable to pay taxes to the government by which they earn low profit margin.
1

Example: Broadwood Event House is the suitable example for the small business where
they are operating their business with 10 employees and also emphasising on generating higher
profits. They also involve in various events as per the demand of the customer by which they can
earn higher revenue.
Medium size business
Definition: Such organisation who are working with the aim of having higher profits in
their operations so that they expand their business with the right approach. They are conducting
their business by having around 50-250 employees and also having sufficient funds in order to
generate higher profits and revenue. Leaders are emphasizing on effective running of the
business by which they can ensure higher profits.
Characteristics: The business is operating their functions with more than 50 employees
and earn the higher revenue and profits which leads to the success of the company(Monippally,
2020). They give the more competitive advantage by availing premium goods to their potential
customers. Risk is the major factor which is associated with innovation an the quality products
due to changing demand of their potential customers.
Example: Capitify is the est example for medium size organisation as they are engage in
conducting some sort of search intelligence and taking better decisions.
Large size business
Definition: These are the business that are operating their business on large scale as they
are having global reach and sufficient funds and capital in order to expand their business to the
new markets. There are huge competitive environment by which they emphasis on the business.
They basically focuses on offering quality goods which can meet the demand of the potential
customers. While offering goods, they needs to be more practical and ensure higher growth and
profits in the target market.
Characteristics: The main feature of the company is operating their business with more
than 250 employees and also offering various job opportunities to the general public. They
generate the revenue of £1.5 million.
Example: Morrisons is the large organisation which is the multinational chain of
supermarket and established in 1899, United Kingdom. They are offering groceries and home
products.
2

SECTION: 2 Define different organisation from sole trader to partnership,
cooperatives & limited liability.
Sole trader business
Meaning: these are the venture which is being run and operated by the single individual
and single person is responsible for all the profits and loose and also liable to pay all the related
taxes to the government.
Characteristics: these are the individual in which there is no separate legal entity as the
owner of the venture is responsible for all the profits and looses and they are liable to pa the
liabilities and taxes to the concern authorities. It is the state in which the single individual enter
in the separate business entity in order to operate the business.
Example: Carpenters, plumber and hair stylish.
Partnership
Meaning: It is the agreement in which two or more individual are entitled to follow the
activities and the tasks s per the requirement. They share their profits and looses on the agreed
basis and also paid tax rate to the government as well. It is also important for the partners to
show their capital and resources so that they can effectively conduct the business with the right
approach.
Characteristics: the partners are having predefined contract and for which they have to
work according to the agreement, they share their profits and looses on agreed basis and they
both are liable to show their capital and income.
Example: Deciduous partner Ltd is the best example for the partnership firms is
engaging in giving information on the basis of management services and other related aspects.
Public limited liability business
Meaning: These are the type of organisation which is being controlled by the
government and they are liable and accountable to the laws and rules which is being imposed by
the government of UK. They can easily sell their share in the market or the general public in
order to maintain the financial aspects in the business.
3

Characteristics: The managers and the shareholders are involved in forming the
business and al the respective tasks are being conducted under strict code of conduct by which
they can effectively meet the objective of the company(Rowlinson, 2020).
Example: Tesco and Burberry are the suitable example as these are the public limited
company and controlled by the government of UK.
Cooperative
Meaning: It is a type of organisation which is being managed by the single individual or
the group of person with the sole aim of generating higher profits in their organisation. There is
no interference of the government as they usually perform their task for the satisfaction of their
potential customers.
Characteristics: Such organisation earn higher revenue and profits as there are having
no burden form the government bodies and take their respective decisions by their own. They are
having certain aspects by which they can meet the desire of their potential customers.
Example: Morrisons is the leading retailing company in the world and they are dealing in
bald less fans, vacuum cleaner, electric appliances.
SECTION: 3 Different business structure and macro factors which is
affecting business.
Organisational Structure
It is the system that outlines ow the certain activities and functions is being operated
within the organisation in order to achieve the desired objective of the company. His also ensures
the flow of communication that who is accountable to whom in order to complete their given
task in an appropriate manner. There are different type of organisational structure which are
being adopted by the business and they choose that on the basis of their size, type and the
operations performed. Different type of organisational structure are explained as follows:
 Divisional structure- It is the structure in which all the work in being divided onto small
groups according to the skills and abilities of the employees so that they can perform
their job role in an appropriate manner. This helps in accomplishing the task in a well
defined manner so that the effectiveness can be retained. In context to Morrisons, they
4

can adopt this structure for ensuring the accomplishing the task by the specialised
individual.
 Flat structure- It is the type of structure which is commonly adopted by the company as
they can take the valuable feedback with the proper involvement of their employees
which leads to generate higher profits and revenue within the organisation(Kreismann
and Talaulicar, 2021). In context to Morrisons, they can use the flat organisational
structure so that they can effectively make change or modifications within the
organisation.
External analysis
In order to analyse the macro environment of the business, PESTLE analysis is being
conducted and it is defined as the framework which analyse the political, economical,
social,technological,legal and environmental factors which is impact the overall functionality of
the business.
 Political factor- These are the factors which includes the government stability,
government rules and regulations. When the government make certain modifications in
5

their rules and laws, affects the overall functionality of the business. In consideration of
Morrisons, The UK market is stable by which company can easily sustain in the market.
 Economical factor- Such factors includes economic growth, inflation rate and import
and export duties on products and services. In the background of Morrisons, People are
having sufficient purchasing power by which they can effectively make the better choice
among the available options.
 Social factor- These are the factors which is having great impact on the values, believe
and the norms of the individual(Hair And et. al., 2020). The manager of Morrisons
eliminating discrimination form the workplace in order to establish good working place
for the workforce.
 Technological factor- It includes the Innovation and the advancement takes places in the
organisation so that they can meet the competitive advantage within the organisation. In
context to Morrisons, they are offering self-checkout terminals and solar energy for
electricity.
 Legal factors- It involves legislation which is impacting the employment access to
material, resource, taxations etc. In context to Morrisons, change in the certain factors
which is impacting the overall functionality of the business due to change in the
employment law or the equality law imposed by the government of UK.
 Environmental factors- These are the aspects which includes the corporate social
responsibility, supply chain intelligence and switch to sustainable resources. In context
to Morrisons, they are offering quality goods and fair compensation to the employees by
which they can contributing to the society.
CONCLUSION
It is concluded from the above report that there are different type of business which are
existing in the market and effectively contributing to the growth of the economy. Different type
of organisation such as small,medium and large. There are different type of business such as sole
proprietorship, company and partnership. Organisation use different type of organisational
structure according to their size and type of business but Morrisons is using hierarchical
organisational structure. Moreover, PESTLE analysis is being conducted which helps in
understanding the external environment of the business.
6

REFERENCES
Books and Journals
Hair, J.F. And et. al., 2020. Executing and interpreting applications of PLS-SEM: Updates for
family business researchers. Journal of Family Business Strategy, p.100392.
He, J. and Ortiz, J., 2021. Sustainable business modeling: The need for innovative design
thinking. Journal of Cleaner Production, 298, p.126751.
Kreismann, D. and Talaulicar, T., 2021. Business Ethics Training in Human Resource
Development: A Literature Review. Human Resource Development Review, 20(1),
pp.68-105.
Monippally, M.M., 2020. Business Communication: From Principles to Practice. McGraw-Hill
Education.
Rowlinson, M., 2020. Business history and organization theory. In Management and
Industry (pp. 7-38). Routledge.
Sanasi, S. and et. al., 2020. Making sense of the sharing economy: a business model innovation
perspective. Technology Analysis & Strategic Management, 32(8), pp.895-909.
Serviss, E., 2021. Engaging with Customers on Social Media: Insights from Business-to-
Business Companies.
Sison, A.J.G., Ferrero, I. and Redín, D.M., 2020. Some virtue ethics implications from
Aristotelian and Confucian perspectives on family and business. Journal of Business
Ethics, 165(2), pp.241-254.
7