Exploring Company Types, Structures, and Macro Factors in Business

This report provides an overview of different types of businesses, including micro, small, medium, and large organizations, and examines their operational structures, ranging from sole proprietorships and partnerships to public limited liability companies and cooperatives. It delves into the characteristics of each business type, highlighting their revenue generation, employee numbers, and operational focus. The report also analyzes the impact of internal and external factors on business operations, utilizing PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental influences. Organizational structures such as divisional and flat structures are discussed in relation to their suitability for different business sizes, with examples from companies like Tesco. The analysis emphasizes the importance of adapting to market conditions and maintaining a strong customer base for long-term survival.

TYPES OF COMPANY

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION: 1 Different types of companies and how they are working..........................................1
SECTION: 2 Define different organsaition from sole trader to partnership, cooperatives &
limited liability.................................................................................................................................3
SECTION: 3 Different business structure and macro factors which is affecting business.............5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business is the separate legal entity which is engaged in manufacturing goods and
services which the consideration of generating higher profitability. Business in practice is the
approach in which the individual or the group of people are engaged in some commercial task
with the sole motive of higher profitability(Soniewicki, 2021). This report will cover the
different type of business which is existing in the business environment such as micro, small,
medium and large organsaition. Moreover, It will evaluate the type of business on the basis of
their operations such as sole trader, partnership and public limited liability and corporative.
Lastly, it will evaluate the impact of internal and external factor which affecting the business.
SECTION: 1 Different types of companies and how they are working.
Micro business
Definition- these are the type of business which is operating their business with the
limited resources and funds as their main consideration is to have easy survival of their family
and friends. They usually cover the local areas to operate their venture with the limited capital.
Characteristics- The main feature of micro size venture is that they give the employment
up to 0-9 employees or less than that and usually generate the revenue of around 632000 euros.
In this, they emphasis on understanding the needs and wants of potential customers so that they
can offer the products and services accordingly.
Example- Boss brewing venture is the best example for small size business as they are
giving job up to0-9 employees with the nominal wages.
Small business
Definition- It is the business structure in which they emphasis on having the certain
opportunities and employing up to 49 employees so that they can ensure the higher profitability
and long term survival in the market.
Characteristics- Key feature of small business is that they usually work with up to 49
employees and emphasis on attaining higher profits and success in the large marketplace. They
do not pay the tax due to their low profit margin.
Example- Cafe pod coffee co. is the suitable example for such enterprises. It is the best
manufacturer of strong coffee for the coffee lover and offering best services. They are emphasis
on providing innovative coffee to their customers so that they can generate higher profitabilility.
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Medium size business
Definition- It is the type of business which is larger than small and micro venture as they
are well managed and having the number of employees 50-250 working on their set plans and
policies. The company is having sufficient funds and capital so that they allocate them in their
different operating areas in order to get higher profitability. They usually emphasis on having the
effective results so that they can ensure good brand image in the market.
Characteristics- They are usually working in the competitive business environment and
having more than 50 employees with the consideration of generating higher profits and growth of
the company.
Example- Captify is the suitable example for such orgsnsiation as they are engage in
doing intelligence research for taking better decision in the market.
Large size business
Definition-It is the type of organsaition which is operating their business on large scale
and an motive of such companies to generate higher revenue by meeting the needs and wants of
their potentials customers. They usually work with the consideration of meeting competitive
advantage in the large market.
Characteristics- The main attribute of these organsaition is to work with the number of
employees more than 250 and also offering various job opportunities to their potential
employees. They usually generate the revenue of more than 1.5 million euros.
Example- Tesco is the multinational company which is dealing in general merchandise
and groceries and founded in 1919 by Jack Cohen and having 7,005 shops in 2020.
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SECTION: 2 Define different organsaition from sole trader to partnership, cooperatives &
limited liability.
Sole trader business
Meaning- It refers to the individual who is operating their venture solely and only person
who is responsible for all the looses and taxation in order to run such business enterprises. High
risk is associated with such type of businesses owner is the manager of the company who
oversees all the task in their own way.
Characteristics- Sole trader is the one who is having separate legal and also liable for al
the risk, losses in order to run the business venture in an appropriate manner by having direct
impact on the business. Risk is the major factor which is associated with such venture so they
needs to be more focuses and active in order to run their business venture in an appropriate
manner.
Example- Hairdresser, Carpenters and plumbers.
Partnership
Meaning- It is agreement between the two or more parties with the consideration of
conducting some sort of commercial activities and also liable to share their profits and looses on
agreed basis. They needs to show their resources and funds so that thy can effectively work in
the partnership act.
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Characteristics- The main feature of partnership I that they are liable to share their
profits and looses so that they can appropriately can oversees the other aspect of the business
without any conflicts. Such type of business is having limited time period to entitled in such
agreement of partnership.
Example- Deciduous partner Ltd is the best example for the partnership, It is the UK
based company which giving knowledge to the individual regarding manager services and their
practices.
Public limited liability business
Meaning- It is the type of business structure which work under the direct control of the
government and all the decision is taken by the government only. These type of organsaition
generally sale their share to the general public so that they can ensure the flow of money in their
operations.
Characteristics- It is the legal entity which is having separate legal entity form their
shareholders and all the rules and polices is being framed by the government bodies with their
full control.
Example- Burberry and Tesco are the suitable example of this business structure as they
are emphasising on generating higher profits as well as meeting the needs and wants of their
potential customers(Seehausen, 2019).
Cooperative
Meaning- It is the type of business structure which is being owned and managed by the
group of individual and not having any implication of government bodies while manufacturing
their products and services. The main aim of such companies is to generate the higher profits.
Characteristics- The main attribute of this structure is that there is no tie up with the
government and they perform their operations with any legal inferences by which they generate
more profits and revenue.
Example- Dyson is the best example for such type of business, It the multinational
company in United Kingdom which is dealing in electronic appliances such as hair dryers and
blade less fans.
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SECTION: 3 Different business structure and macro factors which is
affecting business.
Organisational Structure
It is the outline which have set tasks in order to achieve the desired objectives of the
company. It includes the certain rules and regulation in which the individual have to work in an
well-defined manner and there is the effective flow of communication and employees are well-
known that to whom they are accountable so that they can ensure better results within the
organisation. It includes various type of organisational structure such as hierarchical, flat and
divisional organisational structure and every organisation use these structure according to their
size and operations and they are explained as follows:
 Divisional structure- It refers to the organisational structure in which manager do the
group of the sub-departments in to small groups and keeping all such individual in a
group who having similar skills and abilities so that they can effectively achieve the
group goals. In context to Tesco, It is the leading company and having operations on
large scale so they can effectively use this structure so that they can effectively divide the
huge operations into small groups so that each task can be appropriately
accomplished(Ren and et. al.,2017).
 Flat structure- It is the organisational structure in which they open communication takes
places and all the departments effectively perform their certain task as they emphasis on
taking the valuable feedback from their prospective employees so that they can ensure
advancement and innovation within the premises. In relation to Tesco, they can
effectively use the flat organisational structure so that they can welcome the suggestion
form their potential employees.
External analysis
It is the group of factor which are outside the organsaition and also affecting the internal
functionality of the business. For this, PESTLE analysis is being conducted so that the company
can effectively understand the external factors which is impact the overall functioning of the
business and also have the direct emphasis on the these factors. In relation to Tesco, Pestle
analysis is explained ad follows:
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 Political factor- As the Tesco is operating their business worldwide, There is the great
influence of political factors such as government stability and change in tax rates. Due to
ongoing financial crises in the world, company is planning to give employment
opportunities to the domestic population.
 Economical factor- These are the factors for w3hich company must aware to change in
any policy such as taxation rate or financial aspect by which they can ensure the effective
functional of the Tesco. Due to decline in the disposable income of the consumer, They
have shifted their promotion from luxurious items to value brand(Bartolacci and et. al.,
2019).
 Social factor- As the change habit of the customer in UK, Tesco is focusing on
increasing the number of non-food item so that they can ensure higher profitability and
growth in the large market. People also uses organic product with the consideration of
their good health so company is also adopting these changes for organic products.
 Technological factor- The company is focusing on the technological advancement as
Tesco is focusing on introduction and development of online shopping with the facility of
home delivery so that they can meet the needs and wants of their potential customers in
an appropriate manner.
 Legal factors- Food retailing commission suggest the Tesco to conduct the specific
practices which ban some sort of current practices such as changing price without prior
notice. To facilitates this, company is reducing the price of fuel and spent some amount
on grocery stores.
 Environmental factor- Tesco is clearly committed to minimising the use of carbon
footprint and also reducing the waste produced in their stores so that they can establish
the good brand image in the market for their long term survival.
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CONCLUSION
It is concluded from the above report that When an individual or the group of people
comes under the assistance of conducting some sort of commercial activity and manufacturing
goods and services with the consider ion of having more profits then the business is formed. This
report discuss the micro, small, medium and large business and they are using specific
organisational structure on the basis of their size, operations and number of employees. It also
inculcated the different legal structure such as partnership and sole trader. Moreover, It also
analyse the external environment by conducting the PESTLE analysis so that they can modify
their functions according to the market condition so that they can have the good customer base in
the target marketplace.
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REFERENCES
Books and Journals
Bartolacci, F. and et. al., 2019. Efficiency in waste management companies: A proposal to assess
scale economies. Resources, Conservation and Recycling, 148, pp.124-131.
Jardón, C.F., Molodchik, M. and Paklina, S., 2018. Strategic behaviour of Russian companies
with regard to intangibles. Management decision.
Lee, J.S. and Huh, E.S., 2017. A Study on Standard Types of Free Carrier (FCA) on Incoterms
for Seaborne Container Goods Transportation: Korean Trade Companies’
Perspective. Journal of International Trade & Commerce, 13(5), pp.51-66.
Ren, Y. and et. al.,2017. The measurement and evaluation of the operating efficiency of China's
listed tourism companies: an empirical analysis based on the mixed DEA
model. Tourism Tribune, 32(7), pp.27-36.
Seehausen, J., 2019. European Model Companies Act (EMCA): A Critical Review of Chapter
12–Annual Accounting and Auditing. European Business Law Review, 30(4).
Soniewicki, M., 2021. The effect of knowledge appreciation and development of internal ideas
on the competitiveness of service industry companies. International Journal of
Innovation and Learning, 29(4), pp.431-448.
Spanellis, A., MacBryde, J. and Dӧrfler, V., 2021. A dynamic model of knowledge management
in innovative technology companies: A case from the energy sector. European Journal
of Operational Research, 292(2), pp.784-797.
Ying, S.U.N., Xian, Z.H.A.N.G. and Qiu-hua, S.O.N.G., 2020. Asset Light Operation, Equity
Nature and Capital Efficiency: An Empirical Study of Listed Manufacturing Companies
in China. Commercial Research, 62(12), p.99.
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