Company Types: Organizational Structure and Macro Environment Analysis

This report evaluates different business types in the business environment, emphasizing business practices and strategies for achieving desired objectives within government laws. It analyzes micro, small, medium, and large businesses, detailing their characteristics, such as employee numbers and revenue generation. The report also defines organizational structures from sole proprietorships to partnerships, cooperatives, and limited liability companies, highlighting their features and examples. Furthermore, it conducts a PESTLE analysis to assess the external macro factors impacting business operations, including political, economic, social, and technological elements, using Morrisons as a case study. The report concludes that understanding business practices and external factors is crucial for organizations to meet objectives and sustain growth.

Types of Companies

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.............4
CONCLUSION ...............................................................................................................................6
REFERENCES...............................................................................................................................7

INTRODUCTION
The aim of this report is to evaluate the various types of business existing in the business
environment. Business in practice is the core concept which assist the individual for involving in
the different business activities so that they can reach to their desired objectives(Bartolacci and
et. al., 2019). Organisation apply some sort of theories and strategies so that they can work
effectively under the consideration of government law. This report also evaluate the different
types of business based on their working. Moreover, It will evaluate the macro factors that is
affecting the whole operations of the business.
SECTION: 1 Different types of companies and how they are working
Micro business
Definition: These are the type of venue which is conducting the business for their easy
survival and happy life. As they are having limited resources and funds in order to run their
business in an appropriate manner and in the local marketing of UK.
Characteristics: Small business venture are working with less than 0-9 employees as
they are having limited resources. They usually generate the revenue of £ 632000. They also
focuses on understanding the neds ad demand of their potential customers so that they can
generate limited revenue for their easy survival.
Example: Miel Bakery is the best example for small business that is offering limited
range of bakery items such as cake, pastries etc.
Small business
Definition: Those enterprises which are larger than micro size business are call as small
size business. They also focuses on providing various employment opportunities and having less
than 9-49 employees working their ventures. They are having the consideration for long term
sustainability in the market( Lebedev And et. al., 2018).
Characteristics: Such enterprises are working to the limited areas due to limited funds
and resources where small teams are formed and they are working for earning higher
profitability. They are not liable to pay the tax rate to the government due to having low profit
margin.
Example: Broadsword Event House is the set example for small business as they are
having more than 10 employees working and also focuses on generating higher profits in the
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market. This enterprise is engage in organisation various event as per their customer demands so
that they can generate higher profits and revenue.
Medium size business
Definition: These are the type of organsaition who is working on the larger sale but small
than the large organisation. They are operating their business with around 50-250 employees as
they are having sufficient funds and resources due to effective decision making regarding
investments. Leader emphasis on smooth running of their business so that they can ensure higher
profitability and revenue within the organisation.
Characteristics: Such organisation is working with more than 50 employees and
generate higher profits to the success of the company. They also gain competitive advantage by
offering quality and innovative products. Risk is the major factor which is associated with these
organisation so they having to deal with the changing factors in the business and the market.
Example: Captify is the suitable example for medium size organisation as they are
engage in doing search intelligence and then taking the major decision of their working.
Large size business
Definition: These are the business organsaition which is operating their business on large
scale and having the unlimited resources and funds so that they can ensure higher profitability
and growth within the organisation. Such organisation are working in the competitive
environment so they ned to have more emphasis on the business. When they offering goods and
services, they needs to be more practical so that they can ensure higher profitability and growth
in the target market.
Characteristics: The main attribute of the large organisation is they are having the
employees more than 250. They are also offering various job opportunities to the society. They
can generate high revenue in comparison to the small and medium size enterprises and also
generate the revenue of 1.5 million Euros.
Example: Morrisons is the suitable organsaition for large size organsaition. It is the
multinational chain of supermarket which established in 1899, Bradford, United Kingdom. They
are dealing in general groceries and home products. They are having the employees more than
110,000 with the net worth of 348 million Euros.
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SECTION: 2 Define different organsaition from sole trader to partnership,
cooperatives & limited liability.
Sole trader business
Meaning: These are the type of business which is having no interference of government
and is owned and managed by the single individual who is solely responsible for their all the
profits ad looses. They are also liable to pay their all the taxes and liabilities.
Characteristics: These are the individual in which there is no separate legal entity of the
business as the owner is the manager of the company who over sees all the operation running
within the organsaition. It is the stage in which the individual have to enter in the legal business
entity in order to start their new business venture.
Example: Carpenters, chefs, plumbers etc.
Partnership
Meaning: It is the agreement which two or more individual are entitled to follow the
tasks and the polices as per the requirement. They are liable to share their profits and looses on
the agreed basis and also paid tax to the government. It is necessary for the partners to show their
resources and capital so that they can transparently involve in the business partnership. They also
take the decision on mutual agreement.
Characteristics: The main feature of partnership is that partners are having predefined
contract in which they have their share the profits and losses. AS both the partners are liable to
have the separate legal entity so that they form the combine business which is called as
partnership.
Example: Deciduous partners Ltd is the suitable example for partnership firms, This is
the consultancy enterprises which is giving information to the individual based on the
management services and other aspects.
Public limited liability business
Meaning: This is the business which is operating under the control of government and
liable to follow all the law imposed by the government bodies. These type of organsaition easily
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trade in the market by selling their share to the general public so that they can ensure the easy
flow of financial aspects by which they can have the profitability in their operations.
Characteristics: Those manager and shareholders are engaged in the formation of
business are comes under these type of business. Various task in the organisation are being
conducted under the strict code of conduct so that they can effectively met the objective of the
company.
Example: Burberry and Tesco are the best example for business limited liability
company as they are working with the consideration of generating higher profits and meeting the
needs and wants of their potential customers.
Cooperative
Meaning: These are the business that are engaged in owning the private companies
which is being owned and managed by the individual or the group of people as they are not
having any interference of government bodies. They usually work for the satisfying their
customer so that they can be loyal to their brand and they can ensure good brand image in the
target market.
Characteristics: These are the type of business which is based on generating higher
profits without any interferences of government as they are solely maintained by the individual
in order to have higher profits. This helps them to sustain in the market for long period of time so
that they can spread brand awareness in the market.
Example: Morrison is the leading company in Retailing industry which is dealing in
Electric appliances, blade less fans and vacuum cleaner and so on.
SECTION: 3 Different business structure and macro factors which is
affecting business.
Organisational Structure
It is defined as the group of people that are engaged in forming effective team so that
they can ensure the effective functionality of the business enterprises. This helps in
understanding how business is operating their various business task in an appropriate manner.
They also analyse the flow of communication between the levels so that they can create
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effectiveness between the department and leads to generate higher profitability. All the
operations are running in well-defined manner and manager is emphasising on various business
task so that they can ensure higher profitability and growth. It includes different type of
organisational structure like functional, flat and hierarchical organisational structure but they use
the appropriate one according to their size and working in the organsaition.
 Divisional structure- It is the organisational structure in which the different departments
are divided in to small units an the manager of the company allocate their work to the
employees by analysing the skills and abilities of them so that they can complete the task
in an appropriate manner. In context to Morrisons, They are using this structure so that
they can ensure the effective operations in their organisations.
 Flat structure- It is the type of organisational structure which is generally used by the
company so that they can take the valuable feedback of their potential employees and
ensure higher profitability and growth within the premises. In context to Morrisons, They
are using the flat organisational structure so that they can have effective employment
engagement.
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External analysis
For analysing the external analysis of the company, PESTLE analysis is being conducted.
It is the framework of analysing the macro factors which is impacting the overall functionality of
business. In context to Morrisons, PESTLE analysis is explained as follows:
 Political factor- These are the factors which includes government stability, polices and
certain regulations. As the change in the government policies, impact the overall
functionality of the business. In context to Morrisons, they can sustain in the market as
the government of UK is stable(. XIE and XU, 2018.).
 Economical factor- Those factors which involves the inflation rate, economic growth
rate and import &export duties on good and services. In context of Morrisons, People are
having good purchasing power in UK by which company can generate higher
profitability and growth in the market.
 Social factor- These are aspect which is concern for the values, ethics and culture of the
individual and the organisation. In context to Morrisons, they are establishing the positive
working environment and eliminating the discrimination form the workplace so that they
can meet the social needs of the employees and maintain good brand image in the market.
 Technological factor- These are the factors which includes the change or the innovation
in products and services so that they can meet the competitive advantage in the large
market. In context to Morrisons, they are using solar energy and offering self- checkout
terminals to their customers for easy purchasing.
CONCLUSION
It s concluded from the above report that business in practice is the aspects which helps
the organisation to met out their desired objectives within a set period of time. Various types of
organsaition are there such as small, medium and large and they choose the organisational
structure according to their level of business. Moreover, PESTLE analysis is being conducted by
which company can analyse their external environment.
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REFERENCES
Books and Journals
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scale economies. Resources, Conservation and Recycling, 148, pp.124-131.
Cheinman, I. and Bishop, S., 2019. Beyond the box: The intriguing challenges of branding
service companies. Journal of Brand Strategy, 8(2), pp.119-126.
Kim, B., Hong, S. and Lee, H., 2021. Brand Communities on Instagram: Exploring Fortune 500
Companies’ Instagram Communication Practices. International Journal of Strategic
Communication, pp.1-16.
Lebedev, K.A.E. And et. al., 2018. Methodological approaches to assessing the efficiency of
personnel management in companies. J. Advanced Res. L. & Econ., 9, p.1331.
Legendre, T.S. and Bowen, J.T., 2020. Customer perspectives on the acquisition of local
artisanal companies. International Journal of Contemporary Hospitality Management.
Madsen, S.R., 2021. Benefits for Companies that Implement Flexibility and Family-Friendly
Policies. LinkedIn.
Pigosso, D.C. and McAloone, T.C., 2021. Making the transition to a circular economy within
manufacturing companies: the development and implementation of a self-assessment
readiness tool. Sustainable Production and Consumption.
XIE, G.B. and XU, J.L., 2018. Different Impact of Capital Supply Shocks on the Capital
Structure of Listed Manufacturing Companies with Different Types of Ownership in the
Context of the Financial Crisis. Journal of Wuyi University (Natural Science Edition),
p.03.
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