Analysis of Company Types and Organizational Structure: Sainsbury's

This report provides an overview of different company types, including micro-enterprises, small businesses, medium-sized businesses, and large-sized businesses, detailing their characteristics and examples. It further defines and explains various business ventures such as sole trader businesses,...Read More

Types of
Companies

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A company is a institution design to carry on business to earn profits or non profit objectives.
These individual contributes towards the capital by purchasing the equity in which it is divided.
The institution has different ranges which justify the size of business. Companies are the big
contributor in the economy of the country. The business are identify on the basis of size, value
and capital invested(Maalsen, 2019). The following report is based on Sainsbury's company
which is UK based company deals in super market and retail stores. It was established in 1869,
at London UK, it provides major services in UK but also have outlets in different countries.
Further it will explain the types of company and their venture type by identifying the
organisational structure that affects the productivity.
MAIN BODY
Task 1
Types of company and its characteristics-
The business structure are classified as size, value, nature and capital invested in concern by
which justify the company working method. The types of company are listed below.
 Micro Enterprises-
It is the type of company which is small in size and having a less number of employees 10 or less
than 10. these are wholly control by single person. Turnover of these companies are not much
high 632,000 or less than that. These kind of company include the sectors like freelancers,
independent contractors, small organisations, voice over, herb farming and car cleaning. The
enterprise which is ranked in micro business is Etsy Owners which is global online marketing
site where people connect and but and sell their goods online(Tiba, 2019).
 Small Business –
These kind of companies are one that has turnover of not more than 6.5 million or not more
than a 3.26 millions in their accounting books. The number of employees is not more than 50.
these kind of business include food services, personal trainers etc. The most famous business
which are ranked in small companies elder care, paying guest service, custom cakes, home-made
cupcakes, babysitting etc. The company which is consider as small company is Cafepod Coffee
produces strong, exciting coffee for adventures coffee lovers.
 Medium size Business -
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These institution have less than 250 employees and having a turnover under 12.9 million in their
records. These types companies have different sector to control the operations. These type of
companies include the sectors like manufactures, wholesale, engineers and transport companies
etc. the company which is listed in the medium enterprise is john good shipping is the top
medium ranked institution(Vogel-Heuser, Ocker and Neumann, 2018).
 Large size business -
These type of organisation deals in huge level like multinational companies having a turnover of
more than 30 millions and having a unit of 250 employees with in the business. The sectors
included in these type of companies are telecommunication companies, or good brand company
who deals in product differentiation. The company which is listed under a large sized business
list is Unilever who provides services across many countries.
Task 2
Definition and characteristics of different kind of ventures.
 Sole trader business - It is also known as sole proprietorship, it is a type of enterprise
control and run by the one individual and there is no legal conflicts between persons and
the business institution. The institution comes in the category of sole trade business is
Novus accountancy Ltd. Company. These type of ventures like to own the company by
themselves. They like to control the business by their way they don't like that someone
control them(Simonin, 2018).
 partnership limited business - It is an agreement between two or more persons, agree
to cooperate to advance their mutual interests. These kind of business included in
organisation, schools and government. The company which is the best example of
partnership firm is Go pro and Red bull. These members have to share the profit equally
and properly as per written In papers and decided between them. In this type venture
there is high risk of conflicts between members(Cappel and Huang, 2017).
 Public limited - These company is a type of public enterprise Under United kingdom
company law. These are control by shareholders. These companies offer their equity in
market. The basic aim of these companies to increase the profit in order to receive a good
return on their investment. The public limited companies in UK like Larsen & Turbo.
 Cooperative – It is an association of persons which is owned by the at least five
members. These can be profit and non profit organisation. The types of services these
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institution include are finance, utility, housing and health care. Blue diamonds or Land O'
lakes are the cooperative companies.
Task 3
Justify Different types of organisational structures and explain they affect on business.
An organisational structure explains how activity such as allotment of task, coordinating and
supervision for achieving an objective of company. This also include determination that how
detail of projects flows between levels within the company. Benefits of following structure are it
not only explains the hierarchy but also allows the structure to design the pay structure for the
workers. The business can decide salary scale and ranges the position as per skills. It makes
operations more effective and efficient. It clarify the job and responsibility of the employees in
the business. It assist in achieving the company objective properly and successfully. It contain a
various types of structure are describe below.
 Matrix structure - This is the fourth and final type of organisational structure. This is
most confusing and less used method by the company to run a business. In this format
employees report to two or more subordinates rather than one manager by looking every
aspect of project. The basic characteristics of the structure, are that employees are
basically accountable to more than one boss, there are two separate chains of order.
There are two kinds of mangers functional managers and project managers(Rafati,
Roozbahani and Pirmoradi, 2019). A matrix structure enables worker to impart to a mix
of activities.
 Functional structure - This refer to bureaucratic organisational structure, and divide a
company according to skills and its working area. Most of the institute follow a this type
of organisational structure by parting the company into departments like marketing, sales
and operations. This factor is followed by every range of organisation to achieve an
organisational goals. The company which follows the structure is the Starbucks, the
company adapt this feature to run the business smoothly and systematically.
The organisational structure adapted by the sainsbury is a matrix structure. The structure is
flexible and this allows company to follow different situations. The function affects the business
in increasing the productivity and increasing the sales for business. That result the business in
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achieving a company goals by having a good increment in profit ratio. The company has the
motive of earning profit in the market and have a loyal customer base. The company desires to
provide a customers satisfaction in the provided market segments(Chih and Lin, 2019).
Task 4
Pestle Analysis -
It is a framework that is used to measure an external factors that effect the operations or activities
of business. It consist a six factors that helps in determine the risk and opportunities for business,
all these factors are describe below in the context of Siansbury(Toson, 2017).
Political factor – It considers a political interference and actions that put impact on the actions
of the organisations. It include tax policy, tariffs, trade restrictions etc. In context of sainsbury's,
in 2016, the United Kingdom voted to exist the European union the move was known as Brexit,
the movement puts a serious effect on business of company. After this it was hard task for
company to import goods from international countries. That gives the increasing cost of imported
goods that reduces the customer interest in company products.
Economic factors- It involve a various factors that are related to the economy and that majorly
effect the organisational economy and operations. It include the points likes economic growth
rates, interest rate, exchange rates and inflation. In relation to sainsbury, the company is highly
based on road transport to supply the goods in all across UK. This states that rising cost of diesel
and petrol it results in increasing cost of company goods. It decrease the competing power of the
business. The company majorly works in UK, the country has political stability tat makes the
working process for brand to conduct action smoothly(Coburn, Leverett and Woo, 2018).
Social factors – These factors consider the points that are influenced by the culture and
demographic trends of society. These component majorly determine the consumer behaviour.
These include the health consciousness, cultural trends, career attitudes, age distributions etc. In
relation of Sainsbury's, the company huge revenue source is the sale of fast food products.
However, UK population is now shifting to the health conscious diet that reduce the sale of Fast
food. This is a global trend that is strongly followed by population across countries too, and
every fast food brand is affected by this particular change in consumer behaviour. Super market
basically comes with special offers which provides customers with certain discount benefits. So
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this proves that from these offers customer saving few bucks of amount. In super mart customer
buys more than their requirements.
Technological factors- These factors are interlinked with technology and innovations in the
institution as well as in the whole economy. These include R&D activity, technological
innovations, automations etc. In case of sainsbury's , recently the company has introduced e-
commerce store which is very fruitful for company. If the brand start using modern data system
such as big data to understand the demographic needs of the users to satisfy them. This methods
can increase the sales.
Environmental factors – These are concern with the ecological effects on business. The factors
include temperature, climate change, pollution and weather condition. In case of sainsbury, the
company produces a high level of carbon footprint that is adversarial to the present
environmental conditions. And with rapidly changing environmental condition the brand should
ensure that they takes an initiative to secure the environmental impact. The government and
company expect from the company to work eco friendly so the company started to reduce the
waste of beef and lamb supply chain. Also it is working for reduction of carbon emissions in
operations.
Legal Factors – There are factors that determine any legal forces or issues that justify the
condition for business that what they have to do or not to do. These components include permits,
license, labour laws, industry regulations and rational property. In relation to sainsbury's the
company should be ready to face the legal changes of policies after Brexit movement. It might
need to change many of its polices while running its stores(Oleinik, 2018). With the launch of
new sugar tax the company requires to pay the tax but the company refuses to pay the tax
amount in order to save money. The rules were made for sainsbury to stop using high salt and
sugar fat product for children age below 15 years.
CONCLUSION
From the above report it is concluded that business institution are identify by the size and there
types of conducting activity. The business is listed by the size of the business and the employees
working in the company. The types of companies works for same motive such as earn a suitable
profit and increase the productivity in the organisation. Some organisation work as non profit
organisation they work for charity and social causes. As per above analysis of external factors it
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is analysed that the company operations are effected by the factors in positive or negative both
way.
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REFERENCES
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Journal of International Business Disciplines, 12(1).
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identification with the company and citizenship behavior: A moderated mediation
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Coburn, A., Leverett, E. and Woo, G., 2018. Solving cyber risk: protecting your company and
society. John Wiley & Sons.
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why people are share housing in Sydney. Australian geographer, 50(3), pp.315-332.
Oleinik, P., 2018. Method for creating a work management plan of a construction company.
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Rafati, M., Roozbahani, M.M. and Pirmoradi, Z., 2019. Bioaccumulation of some heavy metals
by the soil and leaves of ziziphus spina-christi in khouzestan oxin steel company.
Iranian Journal of Forest and Range Protection Research, 17(2).
Simonin, O., 2018. Verbal irony, politeness… and three ironic types.
Tiba, F., 2019. Safe Harbor Carve-Out for Directors for Insolvent Trading Liability in Australia
and Its Implications. USFL Rev., 53, p.43.
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Business Review.
Vogel-Heuser, B., Ocker, F. and Neumann, E.M., 2018, May. Maturity variations of PLC-based
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