BMP3002: Analyzing Company Types and External Business Factors

This report provides an overview of various business organizations, including micro, small, medium, and large businesses, as well as sole traders, partnerships, and limited liability companies. It explores different organizational structures, such as hierarchical, functional, and horizontal structures, and their impact on business productivity, using Tesco as a case study. Furthermore, the report analyzes external factors affecting business performance through a PESTLE analysis, examining political, economic, social, technological, and legal factors influencing Tesco's operations and profitability. The analysis aims to provide insights into effective business practices and strategic decision-making within a dynamic business environment. Desklib provides access to similar solved assignments and past papers for students.

BSc (Hons) Business
Management with Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
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Table of Contents
Introduction...................................................................................................................3
MAIN BODY..................................................................................................................3
Section 1: Various business organizations and their working.............................3
Section 2: Various organizations like sole trader and partnership.......................4
Section 3: Different structure with external factors in business...........................6
3.1 Identify various organizations and explain about organizational structure with
impact on business productivity ..........................................................................6
3.2 How different external factors affect the performance of a business – PESTLE
Analysis ..............................................................................................................8
Conclusion....................................................................................................................9
Reference...................................................................................................................10
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Introduction
Business practices are those aspects which are used in order to make
business organization established in more effective manner. Through business
practices certain perspectives related over different kinds of business organizations
are covered. Also, it leads towards attain understanding about types of organization
and their working which makes business operate within particular environment.
Scope of business practices is wider which makes business operations conducted as
per modern trends used for conducting business. Nature is dynamic that leads
towards attaining knowledge about various kinds of business organizations existing
in the form of sole trader, partnership, private and public organization. These
practices focus over factors impacting business internally and externally. The
selected organization within the report is Tesco which is an British supermarket
chain that has been established in the year 1919 and has headquarters in United
Kingdom. In this assignment things covered is based over is related with different
types of companies, external factors and business structure has been covered.
MAIN BODY
Section 1: Various business organizations and their
working
Business organizations are those aspects which is based over various kinds
of perspectives that has been used in order to perform activities that is related to
sales of product and services within market. There are various kinds of companies
which existing within particular market area which has been discussed as follows:
 Micro business: A micro business organization is that type of business
organization which is very small in nature(Buckley, 2021). It works with ten or
less then ten employees. Also, these organizations has its turnover which is
less then a small business. Example for such organizations are Etsy owners,
Amazon suppliers, solo consultants, freelance graphic designers, and home-
based businesses
 Small business: These are those organizations which has been operating on
small scale business and has employees more then 100 but less then 1000.
Small businesses are basically large and has been performing business
functions with particular region. Such type of organization include less
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employees. They have large scope as compare to micro business which
makes strong relation developed with customers within local market.
 Medium size business: Medium business organizations are those
organizations which has been working over business operations within
national market(Cha, Kim and Cichy, 2018). These organization has more
then 1000 employees and has been operating on within various industries at
national level.
 Large size business: This forms of commercial enterprise are acting mission
and sports in distinctive a part of the world. massive employer has extra than
500 personnel with required ability and qualifications. This forms of
commercial enterprise is working to earn extra profits. Larger employer scope
is to decorate commercial enterprise sports for you to accomplish set
objectives. This forms of employer goal at gaining aggressive benefit over
different rival companies.
Section 2: Various organizations like sole trader and
partnership
 Sole trader business: This organization is based upon single ownership
which makes work to be done more effectively. These organizations operates
at small level and does not include complexity within business activities. The
owner of business are known as sole proprietor and handle all operations
related to it(Gujar and Attarwala, 2020). In order to start these organizations
INHRC number should be generated and name is required for initiating
business. Management of these organization is done by the owner
themselves. Funds are arranged through family and friends. These
organizations are easy to operate and requires less capital. At time these
organizations faces difficulties in arranging funds from personal sources.
 Partnership: This is another important form of organization which has been
formed by two or more then two persons. Partners within the organization
works for common motive to earn profit and revenue. In partnership all
operations are handled by partners themselves. Its formation process include
issuing if INHRC number and partnership agreements are formed only when
licensing or any other legal formality is required to be performed.
Management is done by partners themselves and funds are arranged by then
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partners through direct investment. These organization work upon interest set
by partners. If any partners dies or conflict of interest exists them partnership
gets dissolve immediately.
 Limited liability business: These are those business organizations within
which partnership is presented as per investment made by partners.
Management is done by partners of profit and loss taking place due to
business. The process of conducting business operations must include all
partners that makes it rigid. Due to less legal obligations its formation is done
easily.
 Cooperative: These organizations are operating within corporate sector and
uses Private Ltd in the end of organizations name. The shares of this
organization is not sold in public. The organization incorporate itself by
collecting all kinds of necessary documents (Imbrogiano and Nichols, 2021).
Also, they are required to prepare memorandum of association and article of
association which is required to be submitted within Companies House for
getting registered. Management is performed by directors of an organization
and funds is arranged through loan from bank. In this organization right of
succession is enjoyed by directors which makes organization separated from
its owners.
 Public limited liability business: This organization has been operating with
public interest. It uses public ltd in the end of the name and shares are
allowed to be distributed to public. Management is done by multi pal owners
and stakeholders. Funds are generated with the help of government
institution.These organizations enjoys immunity from parliamentary enquiry
which make organization function as per its will. Public organizations inure
losses over subsidiaries provided by them for public welfare.
Section 3: Different structure with external factors in
business
3.1 Identify various organizations and explain about organizational
structure with impact on business productivity
An organizational structure means the system which is based over various
kinds of activities that has been taking place in order to make goals and objectives of
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organization achieved. Under organizational structure activities like rules, role and
responsibilities has been covered(Islam and Abd Wahab, 2021). Also, it is used for
determining of information flow within the organization from top to bottom. It allows
business environment of an organization like Tesco to work upon path of success.
Further, the method leads towards development of flow of work within the
organization that is used for managing of task within the organization. There are
various kinds of organizational structure which are discussed as follows:
Hierarch structure: In this structure pyramid- shaped is developed which is
based upon pyramid within which authority is given from top to bottom. This is most
common type of organizational structure used by an organization for conducting its
operations. There are certain advantages and disadvantages of this structure which
are as follows:
Advantages
 This allows employees to develop focus upon their roles required to be
performed by them. Through the structure specialization of employees are encouraged.
Disadvantages
 This structure hampers the interdepartmental communication.
 It create rigidity within an organization
Functional structure: This structure is based over position within which
highest level of responsibility that is divided as per the role assigned according to
skills and abilities posses by employees working within team members. In this each
department is managed separately. The advantages and disadvantages has been
discussed as follows:
Advantages
 In this better differentiation is provided over authority and responsibility It leads towards assigning of reports to specific projects which makes work to
be done more effectively.
Disadvantages
 Can slow down innovation or important changes due to increased
bureaucracy
 Can cause employees to act in interest of the department instead of the
company as a whole
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Horizontal structure: This structure fits within an organization with few levels
which is between upper management and staff-level employees. As per the structure
businesses use to grow large enough to build various departments that makes
structure encourage supervision and involves employees from all level. The
advantages and disadvantages has been discussed as follows:
Advantages
 In this structure employees are given more responsibilities.
 This structure makes open for communication to employees.
Disadvantages
 Create confusion since employees do not have a clear supervisor to report to
 Produce employees with more generalized skills and knowledge
Tesco is an popular organization that has been operating in effective manner
through following hierarchical organization structure(Morales and et. al., 2021.). This
has helped organization focus over needs of customers and employees by analysing
modern market or employment trends. Through this structure work management is
done with discipline and order. This makes tasks and project assigned to various
teams within an organization completed more effectively. Thus it can be observed
that hierarchical organization structure has helped Tesco in developing productivity,
employment stability and effective decision making process which made organization
attain success and growth within market of UK.
3.2 How different external factors affect the performance of a
business – PESTLE Analysis
PESTEL Analysis There are different factors are blanketed in business
organisation surroundings that effect on organisational not typical overall
performance and typical overall performance in awesome in addition to terrible
manner(Myers, 2018.). Pestle evaluation is described because of the reality the
systematic framework that permit organisation to discover one-of-a-kind out of doors
elements that have an effect on business organisation tips, techniques and not
typical overall performance degree. Factors of Pestle evaluation with in the context
of Tesco organisation are defined below:
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 Political element: Political elements have sturdy have an effect on on Tesco
long-time period profitability and sustainability and profitability. Presence of
business organisation at worldwide degree complements the sensitivity of this
element due to the truth each UK has their very non-public political situations
that created possibility in addition to threat to business organisation. There
are numerous political elements which include political balance or instability,
converting tips, authorities interventions, tips and taxation tips that want to be
taken into consideration with the aid of the usage of the Tesco for growing
powerful techniques and tips.
 Economic elements: It may be very crucial for the Tesco to have a study and
understand all economic elements which include labour marketplace
situations, forex charge, hobby charge and inflation in addition to saving
charge(Peralta, Carrillo‐Hermosilla and Crecente 2019). Respective
organisation analyses UK economic state of affairs than increase techniques
as a end result that lead business organisation toward venture its dreams and
targets in exceptional viable manner.
 Social elements: Business life-style have sturdy delivered on from numerous
social elements which include societal norms, values, tendencies, purchaser
spending sample, shared ideals and strength structure. Spending sample and
disposable income of customers may be very excessive in UK that lets in
Tesco to advantage aggressive advantages.
 Technological element: Technological element consists of technological
advancements, diffusion of era, innovation and different factors that assist
Tesco to take higher picks and differentiate organisation from awesome
competitors. UK is the precept studies and improvement UK that lets in Tesco
to carry out its operations with typical overall performance and monetary tool
offers super possibility to the organisation.
 Legal elements: There are numerous prison tips and tips which might be
delivered with the aid of the usage of the authorities of UK that have to be
complied with the aid of the usage of the commercial organisation to perform
their operation in UK with typical overall performance and
effectiveness(Wright and Schultz, 2018). Implementation or assessment of
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those crook tips assist business organisation to keep away from immoderate
troubles and offers aggressive advantages.
Conclusion
From the above discussion it can be concluded that business practices are
those practices which has been used for developing business organization in
effective way. This makes business uplift their work in more effective terms which
lead over making goals and objectives achieved more effectively. In this report
various aspects is related to business like types of business organization and
companies. Then organizational structure and PESTLE analysis has been conducted
with example of Tesco.
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Reference
Books and Journals
Bradley, T., 2020. Sustainable business practices: Prioritizing people and planet for
profit (Doctoral dissertation, University of Wyoming. Libraries).
Buckley, P.J., 2021. The role of history in international business: Evidence, research
practices, methods and theory. British Journal of Management, 32(3),
pp.797-811.
Cha, J., Kim, S.J. and Cichy, R.F., 2018. Adoption of sustainable business practices
in the private club industry from GMs and COOs’ perspectives. International
Journal of Hospitality Management, 68, pp.1-11.
Gujar, G.D. and Attarwala, A.A., 2020. Benefits of implementing sustainable
business practices for the Indian pharmaceutical industry. Asian Journal of
Management, 11(1), pp.26-28.
Imbrogiano, J.P. and Nichols, E., 2021. How to serve sustainability performance in
businesses? An appetizing recipe to link practices to performance in
business sustainability research. Business Strategy and the
Environment, 30(4), pp.1610-1622.
Islam, A. and Abd Wahab, S., 2021. The intervention of strategic innovation practices
in between regulations and sustainable business growth: a holistic
perspective for Malaysian SMEs. World Journal of Entrepreneurship,
Management and Sustainable Development.
Morales, A and et. al., 2021. Hybrid forms of business: Understanding the
development of indigenous social entrepreneurship practices. Journal of
Business Research, 124, pp.212-222.
Myers, A., 2018. Amazon Doesn't Have an Antitrust Problem: An Antitrust Analysis of
Amazon's Business Practices. Hous. J. Int'l L., 41, p.387.
Peralta, A., Carrillo‐Hermosilla, J. and Crecente, F., 2019. Sustainable business
model innovation and acceptance of its practices among Spanish
entrepreneurs. Corporate Social Responsibility and Environmental
Management, 26(5), pp.1119-1134.
Wright, S.A. and Schultz, A.E., 2018. The rising tide of artificial intelligence and
business automation: Developing an ethical framework. Business
Horizons, 61(6), pp.823-832.
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