Comprehensive Report: Types of Companies and Tesco Business Analysis

This report provides a comprehensive analysis of different types of companies, including sole proprietorships, partnerships, and companies, and their operational structures. It uses Tesco as a case study to illustrate these concepts. The report discusses how organizational structures influence productivity and profitability, and it examines the impact of various external factors, such as political, economic, social, technological, legal, and environmental (PESTLE analysis), on business operations. The analysis includes an overview of Tesco's structure and its responses to these external influences, particularly in the context of the COVID-19 pandemic. The report concludes by summarizing the key findings and emphasizing the importance of adapting to external factors for business success.

Types of Companies

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
The different types of companies and how they work...........................................................3
Different companies from sole traders to cooperatives and Limited Liability Partnerships..4
Business structures and how external factors affect businesses.............................................4
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................6

INTRODUCTION
Business is dynamic in nature which is also impacting the performance of the
organisation (Naranjo-Valencia, Jiménez-Jiménez and Sanz-Valle, 2016). This is because
business is consists of various internal and external factors which has to examine by the form
before launching its products and services. In context of present report the chosen
organisation is Tesco. It is the British multinational organisation which was founded by Jack
Cohen in 1919. Organisation is selling its product in retail industry where it is operating with
a good profit. This report includes discussion about different types of companies and their
working. Different structure used by the organisations for getting the legal existence will also
discuss. Along with this, there is identification of organisational structure and its benefits and
profitability with evaluation of external environment of the firm by using the pestle analysis.
MAIN BODY
The different types of companies and how they work
Micro business: Micro business organisation can be defined as a form which is
operating with not more than 6 people and is performing its function with limited resources.
Some common example of these type of organisation of sole trader self-employed and have
no employees. Micro business can be defined as it business which require capital less than
$50,000 in order to perform its functions and acquire loans from local persons. The main
characteristics of this kind of business are that they provide cheap products at nearest place.
Small businesses: Small business organisation can be defined as an organisation
which is operating with more than 6 people and less than 25 person. the main characteristics
of small size organisation is that they are operating in a small amount where they provide
goods and services which are allied to medium and large organisation. Examples of this kind
of organisation are local service providers like DTH operator and many others. In term of
capital investment, a small organisation can be defined as an organisation which is operating
with the capital of more than $50,000 and less than 1 lakh dollar. These organisations are
mainly helpful to the business function for performing functions of large firm (Frank,
Dalenogare and Ayala, 2019).
Medium term organisation: A medium term organisation can be defined as an
organisation which falls under certain limits in relation to employment investment. A

medium term organisation is that organisation which employs employees more than 25 and
less than 100. This kind of organisation is performing their function at medium level where
they act as a linkage between large and small firms. Some common example of medium
organisation is organisation which is operating at regional levels or national level.
Large size organisation: A large scale organisation can be defined as a firm which is
operating at large level employee more than 250 employees and performing its function at
global level by providing large variety of products and services. This kind of organisation is
operating in higher profit as well as his capital investment which is raised through issuance of
shares debentures bank loans and many others (Dangelico, 2017). The main characteristics of
this type of organisation is that they are operating at global level where provide wide range of
product with proper innovation effective services
Different companies from sole traders to cooperatives and Limited Liability Partnerships
Sole proprietor: Sole proprietor or sole trader is known as an individual entrepreneur
a business proprietor who is operating and running a business. Under this kind of business the
main character of business is that there is no distinction between the owner and the business
organisation. Under this kind of business the sole proprietor receive all the profits and as to
be responsible for the losses and debts of the business. This also pursues characteristics
which define that a sole proprietor can use the name of business as a solo name for legal
existence.
Partnership business: Partnership business can be defined as an agreement between
two or more persons to jointly sell the products and services in accordance with mutual
profits. This is a very well-known system where there are a large number of organisations
which are operating under the partnership agreement. Some of the common example of
partnership businesses is Maruti Suzuki, H&M and many others. Under the partnership
agreement, both the partners are agreed on the mutual sharing of profit and loss of the firm.
There are different kinds of partnerships which can be followed where the partners are
performing various roles for achieving the objectives (Klein and Weill, 2016).
Company: It can be defined as in that kind of business with wear the owner of the
company has a limited liability. This is because company has a separate legal existence in the
eyes of law where it is operating and its owner and founders are completely different from the
organisation. Here, company has its own assets and liabilities which are used to sell the

products and services within the market. Some common example of company is Tesco,
Sainsbury, Unilever and many others.
Business structures and how external factors affect businesses
Organisational structure can be defined as a system which is adopted by the firm in
relation to managing its function and defining the roles and responsibility of each and every
individual for achieving the goals and objectives by managing higher productivity. In context
of Tesco it is following hi radical structures within the firm where the Tesco board of director
include total 10 members. In context of working structure also follow the historical structure
within it where it used a proper structure which is discussed below.
How structure impact on productivity and profitability of firm
Organisational structure has direct influence on the productivity and profitability of an
organisation. This is because while operating business organisational structure helps in
defining the roles and responsibility of each and every individual for reducing the conflicts
and managing the work in an effective manner. This also helps in bringing flexibility within
the flow of information and effectiveness in management work. This all will ensure a better
coordination and cooperation which impact on productivity and profitability of workers. By
better coordination the productivity will increase which help in increasing the profit
(Freedeman, 2018).

Political factors: Political factors are which are related to the political conditions of
the area where the organisation is working. It includes all those factors feature related to to
political government and the rules and regulations of the government which can impact on
the business decisions. Tesco is operating within the global market where the home market of
Tesco is UK. UK is a politically stable to market where there is no such major impact on the
organisation from the political side. Tesco is also operating in global environment where
there is various kinds of governments and political instability is which has to be handled by
the firm. In context of present time, Tesco has to formulate effective strategies which can be
used to manage the functions and achieve the objectives in effective manner. Theatres has to
formulate effective strategies which are helpful in dealing these political uncertainty
(Makarius and Srinivasan, 2017).
Economic factor: economic factors are those which are related to the economic
condition of the nation and area where the organisation is working or going to launch its
business. Under economic factor there are various kind of factors which are covered such as
GDP rate, GDP growth, employment level and many other. In context of Tesco, companies
operating in number of nations where there is economic stability. The major factor which is
impacting on the working of organisation is decline in the global GDP rate due to impact of
covid-19. Due to mass spread of pandemic covid-19, there is dawn fall within the global
economy and GDP ratio which also impacting on Tesco sales. Due to decline in economy
organisation has to face various kinds of issues in relation to decline in sales and revenue of
the organisation. Here organisation has to use different strategies by using a new product mix
which can be implemented within the market according to the situation of covid-19 and wait
for economic revival.
Social factors: Social factors are those factors which are related to the changes within the
society trends thinking and patterns in relation to the organisations products and services. In
context of Tesco, the major changes within the social trends within the society are related to
consumption pattern of social individuals and the customer of organisation. Prior to the
situation of covid-19, customer sir focusing on offline sales which is the major part of Tesco
functioning. But in the current time Tesco has to face issues where company has to formulate
strategies for selling the product online because of changes in the social trends related to
online purchase (Standaert and Manigart, 2018). This impact on the organisation as company
has to increase its online marketing channels for promoting the products and using the social
trends in favour of firm.

Technological factors: Technology is essential part of every organisation as it is
required to perform different functions and deal with the current business challenges. In
relation to organisations operating UK, there are various changes within the technological
sectors where introduction of new technologies is continue because of innovative approaches
and change processes. Tesco is also using new and innovative technology of self-service
system where organisation is going to implement in no personal interaction of any individual
on the sale of products and services. This system was started by Tesco follow the norms of
social distancing where company will use a separate counter and automatic billing system for
the customers to prevent them from the personal interaction and reduced threat of covid-19.
This is this will impact positively on the organisation because of new and trending
technology.
Legal factor: Legal factors for those factors which also impact the organisation and
direct manner. Under legal factors all those factors are covered which are related to rules and
regulation formulated by legal authorities within the area where the organisation is working
for saving the interest of customers and organisation. The major rules and regulations which
impact on the organisation like Tesco are employment protection law, customer law and
contract act. These are fulfilled by the organisation by using the laws in an appropriate
manner to manage the function and achieve the business objectives (Kucherov and
Manokhina, 2017).
Environment factor: It is most important factor which is impacting on the
performance of organisation in the current time because it includes all those factors which are
related to the environment of the area where the organisation is working. It includes factors
such as climate change, global warming and many others. In context of Tesco, organisation is
fulfilling its function related to the climate protection where it is using renewable energy
sources for the use of energy within the organisation. Companies also focusing on zero
carbon emission where it is using different kind of technology to improve its carbon emission
within the climate to bring it at level zero. Companies also using zero plastic use within the
firm where it is using sources which are biodegradable and will not impact the climate.
These all are the factors which are affecting the organisation from the external
sources. In context of Tesco, it is evaluated that there are major t of the factors which are
used by the form in an appropriate manner and will not impact on the firm in a direct way.

CONCLUSION
It can be concluded from the above mentioned information that there are different
kind of companies and structures which are suitable to the organisation according to its
requirement and level of operation. On the basis of legal registration these are sole trader,
company and a partnership firm. In relation to the current business environment it is
important for organisation to identify its organisational structure and perform according to it.
It is concluded from the above mentioned information that there are various external
environment factors which can impact on the functioning of firm and can reduce its
profitability.

REFERENCES
Books And Journals
Dangelico, R.M., 2017. What drives green product development and how do different
antecedents affect market performance? A survey of Italian companies with eco‐
labels. Business Strategy and the Environment, 26(8), pp.1144-1161.
Frank, A.G., Dalenogare, L.S. and Ayala, N.F., 2019. Industry 4.0 technologies:
Implementation patterns in manufacturing companies. International Journal of
Production Economics, 210, pp.15-26.
Freedeman, C.E., 2018. Joint-stock enterprise in France, 1807-1867: from privileged
company to modern corporation. UNC Press Books.
Klein, P.O. and Weill, L., 2016. Why do companies issue sukuk?. Review of Financial
Economics, 31, pp.26-33.
Kucherov, D. and Manokhina, D., 2017. Evaluation of training programs in Russian
manufacturing companies. European Journal of Training and Development.
Makarius, E.E. and Srinivasan, M., 2017. Addressing skills mismatch: Utilizing talent supply
chain management to enhance collaboration between companies and talent
suppliers. Business horizons, 60(4), pp.495-505.
Naranjo-Valencia, J.C., Jiménez-Jiménez, D. and Sanz-Valle, R., 2016. Studying the links
between organizational culture, innovation, and performance in Spanish
companies. Revista Latinoamericana de Psicología, 48(1), pp.30-41.
Standaert, T. and Manigart, S., 2018. Government as fund-of-fund and VC fund sponsors:
effect on employment in portfolio companies. Small Business Economics, 50(2),
pp.357-373.