Business in Practice: Organizational Structures and Company Analysis

This report provides an in-depth analysis of various company types, including micro, small, medium, and large businesses, highlighting their characteristics and examples. It explores different organizational structures such as functional and divisional structures, and examines how external factors imp...Read More

BUSINESS IN PRACTICE

Table of Contents
INTRODUCTION ..........................................................................................................................3
SECTION -1....................................................................................................................................3
Different types of companies and how they work ......................................................................3
SECTION-2.....................................................................................................................................6
Different form of organization ....................................................................................................6
SECTION 2......................................................................................................................................9
Organizational structure and external factors impacting business...............................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business in practice is defined as to collect informations which are related to
business and such functions which are used to make different type of business plans
and maintains the business relationships. The main objective of the current project is to
gain further knowledge about the several types of organizations with the characteristics
and defines that are in the correct form of each of the following. Further, the report will
include the examples and characteristics which defines the sole trader, cooperative and
such partnership and highlight that how these are different from the organization. Lastly,
it will include the analysis of varied business structure with the analysis of the external
environment with the use of PESTLE analysis and shows the impact.
SECTION -1
Different types of companies and how they work
Many organizations are classified on the basis of its size, there are the different
types of businesses which includes- Micro, Small, medium and large size businesses.
Micro businesses
Definition
Micro business consider as the business who have less than ten employees and
the turnover of the company cannot be more than £2 million (Auchter and et.al , 2018).
These type of micro business are always provides such products and services into the
local market. There are the types of micro businesses which includes the street
vendors, small cafes, farmers and shoemakers.
Characteristics-
 Micro businesses are managed as well as owned by the single person not in a
partnership.
 These businesses are considered as the more acceptable as well as flexible for
adapting such change in an environment.
 The resources which are used in these business are locally available anywhere. Micro business always have a less amount of capital investment.
Example-
One of the example of micro business is Cafe Pod, it is a micro business which
require less amount of capital investment through the small credits as well as the small

loans. The loan which are taken by the business is to invested in such things which
includes the furnitures, machines and other working capital as well. Sometimes it is
difficult for the micro business to have a sufficient funds for their business so it used to
borrow funds from the government. There is a major contribution by the micro
businesses in the economy, so government give funds and with this limited funding
Cafe Pod provides many opportunities for the employees and that will consider as the
growth in the economy.
Small businesses
Definition
Small businesses refers to produces some goods and services on a very small
amount which has a few employees and average annual turnover. These businesses
have more than 9 and less than 50 employees who can work with the company not
more than it. Because it could not have that much of fund though it can appoint more
than that (Coghlan, Shani and Dahm, 2020). The turnover of the small business is just
£10 million and the businesses which includes the bakeries, medical stores and
groceries store.
Characteristics-
 It has a high capital investment as compare to the micro business.
 Small business have very few and limited resources. It has a main motive to provide the customer stratification and listens to their
demand.
Example-
Miel Bakery is the example of the small businesses, which have a fifteen
employees who work with them and it has a turnover approx £10 million. This business
is operated in the market to build up the strong relationship with the customer and their
suppliers. It can borrow funds from the angel investors, such bank loans and from the
friends and family as well. It has a high contribution over the national economy which
are basically support by the government in every situation. It always follows the
business and marketing plan of the large business as to get the higher profit and
increases the productivity of the business.
Medium businesses

Definition
Medium businesses are refers to having a less than 250 employees and more
than 50 with having a turnover ratio of 50 million. There are the small businesses which
includes the online retailers, hairdressers etc.
Characteristics-
 It has no limit or having a separate business unit.
 It has a flexible business with the innovations. Have a contribution in making a healthier economy and creates a
competitiveness.
Example-
Verdant leisure is one of the best medium-sized business who have focussed on
the economy growth and the formation of jobs it is providing with the better quality of
goods and services which are fulfilling the needs of the customers and satisfy them with
the proper quality of goods. The investment which are required in the medium-sized
business is from the bank loans, financial institutions and angel investors. As it has a
limited employee engagement so there is not required for the difficult organization
structure as well.
Large businesses
Definition
Large businesses have more than 250 employees and there is no limited for the
large businesses to have an employee more than it. The turnover ratio of these
businesses may have more than 50 million. It has a varied contribution towards the
GBP in the UK which has its employment rate with the 40% and big amount of
investment rate as well. The large businesses include the biggest supermarkets, fashion
stores etc.
Characteristics-
 It has a professional employee with proper skills and abilities.
 It has major access for the finances
 Large businesses have a resources capabilities at the high level and capital for
their expansion and growth. It has a cleared division with the proper structures organizations.

Example-
Jimmy Choo has more than 500 employees with the proper investment access,
which helps to have a proper contribution towards the economy of the UK as compare
to the small sized and medium-sized businesses. It has the highest total revenue with
the maximum taxation. It pays the highest wages to its employees and hires the best
candidates for the suitable job profile with the specific working skills. It used to mitigate
all its investments as well as the expenses with the new projects and the funds which is
using into venture capital and the selling of shares as well.
SECTION-2
Different form of organization
It shows that the different and legal form of business are totally depends upon
the several factors which are including the scale and size, management and the
ownership and the growth and expansion as well. There are the different form of the
businesses which are properly shown below which are sole trader, partnership, limited
liability business and the public limited business and cooperatives.
Sole Trader
Sole traders refers to the business which is owned and run by the individual
person. The particular person is individually liable for the business issues and such
debts. Sole traders are generally the part of the small and medium business which
includes the electricians and gardeners as well.
Characteristics-
 It shows that the business and its owner are some.
 It is totally depended upon the owner in case the bankruptcy and the death the
business can be ceased by the investors. The owner has an unlimited liability.
Example-
The organic hairdresser is the example of the sole trader which does not needed
any legal requirements for such formation of the business (Joseph and Gaba, 2020). It
only needs to get required to have a proper registration with the insurance company.
Partnership

Partnership business basically needs to have two or more people, who are
agreed to forming a business with sharing of the losses and the profits as well. It
basically shows that every partner is equally responsible for the loss and the profits as
well.
Characteristics-
 It needs two or more individual for the formation of partnership deed.
 It always needs for agreement and contract which is in a written or in oral mode.
 Business is properly carried by the all partners. People cannot handover their shares to the other partner.
Example-
NotOnTheHighStreet was started by the two entrepreneurs named as Sophie
Cornish and Holly tucker. The Duo always wanted to sell out the original items which
helps to gain customer satisfaction level. They both are sharing the partnership norms
with the shares and the specific terms and conditions which are applied to the company
and all the other members.
Limited Liability Partnership
Definition-
It is a part of the partnerships which includes that it simply allows the liability for
every partner to invest the limited amount by them. It includes that the partner LLP are
not responsible for the any other partner's mistakes or different issues.
Characteristics-
 It has a clear separate legal entity for the members.
 There is a limited investment liability which are made by them.
 It shows that it needs to be registered with the companies houses. Accounting process and the filling requirements are common to the companies.
Example-
This partnership required to registered themselves with the different companies
houses. It needs to have a two or more responsible partner who are more designated
as well and responsible for the sending such informations to their companies houses.
Public Limited Company
Definition

Public Limited Company is known for organizational structure for known as
managed by the directors and CEO and owned by the shareholders (Komissarova,
2020). It has a separate legal entity in which the business may sued or can easily sue
anytime.
Characteristics-
 Shareholder has limited liability.
 Owners and shareholder has a separate legal entity.
 There is no restriction over the transferring shares. It requires lot of paperworks.
Example-
Unilever PLC provides the protection to the shareholders from any kind of debts
and liabilities as well. The shareholder of the organization is an individual, it is strictly
required to make register the company and have a responsibility to have a tax returns
and such payments.
Cooperatives
Definition-
It is a business where it is shows that it is owned and run by its members as well.
There are the trading enterprises which provides such goods and services which helps
to generate the profits.
Characteristics-
 It opens the voluntary associations which are managed by the members of the
cooperatives
 It shows that every member has a voting rights The main purpose is to provide the better services.
Example-
Central England Co-operative is the one where the members of its are having a
mutual rights to decide and votes for the use of the profits and the shareholders are not
included in sharing the profits.
SECTION 2
Organizational structure and external factors impacting business
Organizational structure

There are various type of structure included which are divisional, functional, team
based and hierarchical structure which are in detail below:
Functional structure-
It is a structure which helps the organization to organizes the departments into
the different form and which are specifically based on their job role and job criteria as
well. It has affecting the business positively as well as negatively. It allows many of the
employees to work more effective as well as in proper manner.
Divisional structure
It is simply refers to such segments which are used for the market and product
lines which have in a different and specific term. This structure is counted as very
beneficial for the company so that it can easily maintain its productivity and have a
positive impact on the business productivity as well (Rajabboyevna, 2020). It shows that
the different type of divisions are required to make a improvement in the organizations
and enables the profit for them.
External environment and their impact on business
The external environment of the business can be simply analysis with the use of
the PESTLE.
Political- it has a proper corporate taxation policies and have a political stability
which makes companies to allow for any kind of expansion or product launches it has
positive impact on the businesses.
Economic- with the high interest rate and inflation rate the companies are having
a issue from the unemployment which has creating the negative impact over the
business.
Social- changing in current trend as well as the lifestyles of the consumers are
having a positive impact over the companies which help them to get more economic
growth.
Technological- it is having a more innovations as well as better development in
the technologies which are with the help of the cyber security as well as such
automations. It is creating a positive impact over the companies.

Environmental- it has a climate change conditions and having a disadvantage
from the carbon footprint as well as from the geographical locations which are creating a
negative impact over the companies (Tambunan, 2019).
Legal- it has a legal law which includes the industry regulations as well as the
consumer protection laws and the licences and permits as well. It has impacting the
companies in positive manner.
CONCLUSION
From the above discussion, it has been concluded that the businesses are
classified into several types which are on the basis of the size and scale. The
discussion has been made upon the aims and objectives of the different companies
which are needs to achieve by them in every possible manner. Further, it has been
highlighted the external environment which shows the impact upon the businesses as
well.
REFERENCES
Books and journals

Auchter, A.M. and et.al , 2018. A description of the ABCD organizational structure and
communication framework. Developmental cognitive neuroscience. 32. pp.8-
15.
Coghlan, D., Shani, A.B. and Dahm, P.C., 2020. Knowledge production in organization
development: An interiority-based perspective. Journal of Change
Management. 20(1). pp.81-98.
Joseph, J. and Gaba, V., 2020. Organizational structure, information processing, and
decision-making: A retrospective and road map for research. Academy of
Management Annals. 14(1). pp.267-302.
Komissarova, Z.N., 2020. Micro-business in France: specificity, role in the national
economy, system of state support. RUDN Journal of Economics. 28(4).
pp.765-777.
Rajabboyevna, A.N., 2020. Organization of English Lessons Based on Advanced
Pedagogical Techniques. International Journal on Integrated Education. 3(3).
pp.41-45.
Tambunan, T., 2019. Recent evidence of the development of micro, small and medium
enterprises in Indonesia. Journal of Global Entrepreneurship Research. 9(1).
pp.1-15.

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