Business in Practice: HSBC Holdings Company Report, Analysis, Types

This report delves into the practical aspects of business by examining HSBC Holdings, a British multinational investment bank and financial service holding company. It begins by defining various types of companies, including micro, small, medium, and large businesses, and explains their characteristics. The report then explores different business structures, such as sole trader, partnership, limited liability, public limited liability, and cooperative businesses, highlighting their key features and providing examples. Furthermore, it analyzes organizational structures, including functional and divisional structures, and their impact on business productivity. The report concludes with a PESTEL analysis of HSBC Holdings, identifying political, economic, social, technological, legal, and environmental factors that influence the company's performance. The report aims to provide a comprehensive understanding of business practices and the external factors that shape them.

In Practice

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SECTION 1: Various types of companies and how they work.............................................1
SECTION 2: Various companies from sole traders to cooperatives and Limited Liability
Partnerships...............................................................................................................................2
SECTION 3: Different businesses structure as well as internal aspects that affects
business......................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business in practice generally refers to an approach where challenges of learners are to be
identified in terms of carrying out business practices. As it refers to carrying out business
practices through various companies. As in order to carry out business practices it is necessary to
identify what type of business or company it is (Brown, 2018). This report explains about
business in practice of large multinational company HSBC holdings which is a British
multinational investment bank as well as financial service holding company along with report
helps in identifying types of companies. This report includes different kinds of companies along
with how they work, companies from carrying out sole traders to cooperative along with limited
liability partnership, various businesses structure and external factors which affect business along
with its conclusion.
MAIN BODY
SECTION 1: Various types of companies and how they work.
There are various types of companies which are as follows:
 Micro business: It is considered to be a type of business which operates on a very small
scale size. As micro businesses are generally defined to a sub category of small business
through sales that could be valued at less than $ 2,50,000 along with less than 5
employees that also consists owner. Micro business is simply referred to a small business
which employs nine employees along with they have balance sheet as well as turnover
less than their amount (Kashan, Wiewiora and Mohannak, 2021). It basically carries less
employees and generally these businesses have no employees other than self-employed
owners. As an example of micro business is Issoria which is a change management
consulting company.
 Small business: These businesses are generally privately owned companies that are
partnerships, sole proprietorship as well as corporations that have less employees along
with less annual revenue in comparison of regular size business. Small businesses
generally consist of service or retail activities like convenience stores, bakeries, grocery
stores, restaurants and so on. As small businesses are having a characteristics of
willingness for taking a risk, capability of carrying out separate work as well as family
life along with having business that is focused on accomplishing goals. Small businesses
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generally carry a single owner by having a management of working that is controlled by
owner as well (Cacciatore and Ravenna, 2020). Along with that it has limited reach in
terms of having a restricted area of carrying out business practices. As an example of
small business is CafePod who is the producer of exciting as well as strong coffee for
targeting adventurous coffee customers.
 Medium size business: This type of businesses is said to be kind of business which
maintains revenues, number of employees that at below a specific threshold. Medium
sized businesses considered to be essential for playing and effective role in economy as
employ a limited number. As medium side business is generally works on having
flexibility as well as innovation for carrying out business practices effectively. Along
with medium-sized businesses generally creates a more competitive as well as healthy
economy and assist in having big companies. Having medium sized businesses, it
generally provides training as well as development facilities to their managers in order to
carry their business practices effectively in markets so that they could be able to generate
profits also along with that medium sized businesses generally focus on increasing
employee engagement by having an innovative process. As an example of medium sized
business is Captify which is a data driven display medium size company that deals in
specialising search intelligence as well as media decisions.
 Large size business: It is a type of business which checked at least one conditions as well
as having at least 5000 employees in their workplace. Large size business is generally
having an annual turnover of more than 1.5 billion euros along with having a balance
sheet of more than 2 billion euros. It is basically referred to a business practice which has
more employees as well as account for having 40% of employment with more than half
of turnover (Aggarwal, 2019). It generally carries it staff members that consist of various
specialist along with various information technological skills in having their employees.
Large size businesses have various office locations in terms of domestically as well as
internationally for running out their business practices effectively. As an example of large
sized business is brakes groups that deals in providing food products to customers.
SECTION 2: Various companies from sole traders to cooperatives and Limited Liability
Partnerships.
There are various companies that are explained as follows:
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 Sole trader business: As this business is also known as sole proprietorship or individual
entrepreneurship and this type of business which is carried and run by only one individual
along with their is no legal difference among owners advertise business entity (Davison,
2018). Sole trader business receives all profits along with having unlimited responsibility
for each losses and debts. Sole Trader businesses has a characteristic of individual
ownership along with proprietorship, it carries unlimited liabilities along with that it
maintains a secrecy in business practices. As an example of sole trader business is home
bake which is a baking company.
 Partnership business: It is a type of business where two or more than two individuals
share ownership along with responsibility for managing a business organisation along
with generation of incomes or losses of business that are generated by them. Partnership
is a type of business where an arrangement of different parties that are considered as
business partners agree to carry their business with mutual interest. Features of
partnership business could be said as this business share profits among business partners
along with losses. Also partnership business carries unlimited liability in which each
partner is unlimited, different and joint. As an instance of partnership business is
Mumsnet which is an internet phenomenon that is founded by two individuals.
 Limited liability business: It is a type of business structure for private organisations. As it
is one of effective common legal business to form a business company. Limited liability
business is considered to be a legal entity where and individual’s financial liability is
limited to a fixed amount as well as value of individual’s investment in a corporation is
invested. Characteristics of limited liability business is of flexibility as there flexible in
nature along with it is having separate legal entity by having a limited liability and a tax
is along with simplicity of working carrying out business practices effectively. It carries
an advantage of passing with income taxation as well as flexibility of business (Sampe,
Pontoh, and Jao, 2019). As an example of limited liability business is Oxfam which is a
confederation of 20 independent companies that focuses on elevation of global poverty.
 Public limited liability business: As this type of company carries limited liability as well
as it offers shares to general audience. A public limited liability company is strictly
regulated as well as is needed to publish its correct financial health to its shareholders. It
is a type of public company under company law that has Commonwealth jurisdictions.
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Characteristics of public limited liability business are that it has limited liability where
shareholder liability for losses of company is limited in terms of business as well as it has
number of transferable shares by having a limited lifespan and financial privacy. As an
example of public limited liability business is Rolls-Royce holdings which is an
automobile company.
 Cooperative business: As it is an autonomous which is business of association of
individuals that are United voluntarily to accomplish their economic, social as well as
cultural requirements along with aspirations of jointly owned company. As characteristics
of cooperative business is that it has voluntary membership along with open membership
and they have finances of liability of their members with a democratic controlling
through a limited interest on capital (Sukri, 2020). Along with that it has distribution of
surplus profits and losses along with carrying and focus on having a service motive. As
an instance of cooperative business is Daily bread cooperative which is company that
provides dairy products to customers.
SECTION 3: Different businesses structure as well as internal aspects that affects business
Determination of various organisational structures as well as explanation of how does
organisational structure affect productivity of business.
Organisation structure is defined to a system which directs how specific operations are
divided in in accomplishing objectives of company. And these operations consist of rules,
responsibilities as well as roles. organisation structure also identifies how information flows
among different levels in companies. There are various types of organisational structures that
could be used by company in order to maintain a flow of information. Along with every
organisational structure affects productivity of business that could affect it performance. Some of
organisation structures which are used by companies are as follows:
 Functional organisation structure: As this organisation structure generally used to
organise various employees. as they are grouped related on particular skills as well as
knowledge. Functional organisation structure vertically structures every department
through their roles along with President to finance as well as sales department in order to
provide customers a better service along with assign various employees to deliver product
or service (Mirmozaffari, 2019). Functional organisational structures affect productivity
of business in various terms as it generally refers to having less creativity, adaptability as
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well as flexibility in terms of changes that are taken place in market. Along with that
specialisation in functional structure good lead to decrease morale and productivity level.
 Divisional organisational structure: As this type of organisation structures groups every
organisations function into a division. As every division consists of all essential resources
along with roles in it for contributing towards product line or geography of company.
Divisional structure generally carried by companies who are serving more products as
well as services. As company is divided into two divisions as well as it works according
to their separate business. It affects productivity of business in a way that it only reports
to two divisions through a functional structure as divisions are effectively specialised.
External aspects that affects performance of business
As there are various external aspects that affects performance of a business in various
ways. It is necessary to identify various external aspects that could create barrier in terms of
carrying out business practices effectively (Xie, Zou and Qi, 2018). In terms of HSBC holdings
PESTEL analysis of company that affects performance of business are as follows:
Political factors:
 There are various trade regulations as well as tariff that are associated with financials.
 Different pricing regulations in terms of mechanism of financials.
 Various industrial safety regulations that would affect business performance.
Economic factors:
 There are various government interventions in free market along with fresh related
financials.
 There is a requirement of constant skill level of workforce in bank sector.
Social factors:
 There are different demographic as well as skills level of populations.
 Various culture trends in terms of gender roles could affect performance.
 Change of attitude in terms of health environmental factors.
Technological factors:
 There is various present technological enhancement which is carried by company and its
competitors.
 Impact on value chain structure in sector of finance.
Legal factors:
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 There is antitrust law in banks sector along with various countries that could affect
performance.
 There various employment laws that affects performance of company when they are
violated.
Environmental factors:
 There different waste management activities in financial sectors (Yu, 2020).
 There are various attitudes towards as well as support for using renewable energy.
CONCLUSION
From above report it has been concluded that in order to carry a business practices are
necessary to identify its worthiness as well as carrying operations for maintaining their position
in markets. This report explains about various types of companies and explained about their way
that they work in corporate markets. With that there is an explanation of various types of
companies that consists of sole traders to cooperative along with limited liability partnership.
Also this report explains about various organisation structures and how they affect productivity
of business along with various external aspects that are responsible for affecting business
performance which is explained through by carrying out PESTEL analysis.
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REFERENCES
Books and Journals
Aggarwal, S., 2019. RELATION BETWEEN A COMPANY AND INDIAN PARTNERSHIP
ACT. Journal of Corporate Governance and International Business Law .2 (2).
Brown, R.A. ed., 2018. Chinese business enterprise in Asia (Vol. 7). Routledge.
Cacciatore, M. and Ravenna, F., 2020. Uncertainty, wages, and the business cycle (No. w27951).
National Bureau of Economic Research.
Davison, N., 2018. A partnership culture. Occupational Health & Wellbeing .70 (3). pp.14-16.
Kashan, A.J., Wiewiora, A. and Mohannak, K., 2021. Unpacking organisational culture for
innovation in Australian mining industry. Resources Policy .73. p.102149.
Mirmozaffari, M., 2019. Eco-Efficiency Evaluation in Two-Stage Network Structure: Case
Study: Cement Companies. Iranian Journal of Optimization .11 (2). pp.125-135.
Sampe, Y., Pontoh, G.T. and Jao, R., 2019, October. Baruga Kare Guesthouse Makassar
Financial Reporting System Based on FASS of MSMEs. In ICAME 2019: Proceedings
of the 4th International Conference on Accounting, Management, and Economics,
ICAME 2019, 25 October 2019, Makassar, Indonesia (p. 143). European Alliance for
Innovation.
Sukri, N.A.S., 2020. Technology Blueprint AA Pharmacy.
Xie, X., Zou, H. and Qi, G., 2018. Knowledge absorptive capacity and innovation performance
in high-tech companies: A multi-mediating analysis. Journal of Business Research .88.
pp.289-297.
Yu, S., 2020. How do accelerators impact the performance of high-technology
ventures?. Management Science .66 (2). pp.530-552.
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