BMP3002 Business in Practice: Analysis of Company Types and Impacts

This management report provides a comprehensive analysis of various company types, including micro, small, medium, and large businesses, detailing their characteristics and examples. It defines and differentiates between sole trader businesses, partnerships, limited liability businesses, public limited liability businesses, and cooperatives. The report explores different organizational structures, such as hierarchical and matrix structures, and explains their impact on business productivity. Furthermore, it applies PESTLE analysis to examine how external factors influence the performance of a business, using Sainsbury as a case study. The report concludes with a discussion on the significance of these factors in the business environment.

Management Report

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1 .....................................................................................................................................1
Micro business, small business, medium size business and large size business along with
features and examples..................................................................................................................1
SECTION 2......................................................................................................................................3
Characteristics and example of sole trader business, partnership, limited liability business,
public limited liability business and Cooperative........................................................................3
SECTION 3......................................................................................................................................5
Different organisational structures and explain how organisational structure affects business
productivity..................................................................................................................................5
PESTLE analysis and how different external factors affect the performance of a business.......5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management report consists of performance of analysis of data and can help to make
decisions with management (Bromage, 2020). It is used in to making a financial report with the
help of management accounting and owners are take a day to day business decision making. A
companies is a legal entity and formed by group of people to achieve a common goals and
objectives. Various types of companies are public limited company, private company, sole
proprietorship, partnerships, joint venture and cooperative. For this assessment, several topics are
covered which are named as explain micro, small, medium size and large businesses with
examples, define sole proprietorship, partnerships, limited liability, public limited company and
cooperative, different organisational structures and how they can affect business productivity,
using PESTLE analysis that can affect the performance of business.
SECTION 1
Micro business, small business, medium size business and large size business along with features
and examples
Micro Business: This term consists of fewer than 10 employees are working in firm
(Chandra, 2020). There is a small business that employees are few and they started their
business with some small quantity of money from bank or other organisation. It is very
prejudiced to each and every owner of firm. Examples of micro business are: Tea stall business,
barber shops, beauty parlour and so on
Features of micro business:
 A micro business runs by a partnership or firm and various activities are carried out by
one directors of organisation.
 The scope of micro enterprises are proceeds to decentralized for local and location
condition.
 Micro business are somewhat labour modifier as comparatively smaller organisations
with small investment in business than larger units.
 Many local resources in micro enterprise are localized to most of rural areas and the
development of micro business are encourage to balanced their territorial development.
Small business: In case of small business, it consists of privately owned cooperation,
sole proprietorships and it include fewer employees or less income as compare to regular size

business. Many firms are describe small business in terms of support of government and tax
policy for various nations and industry. Examples of small business are: toothpick, bakeries,
local chocolates and many more.
Features of small business:
 Ownership: This is a small business so there is a single owner in an enterprise and it is
also famed as sole proprietorship.
 Limited reach: Small business have a limited area of shops for local customers because
they have restricted area of operation, so there may be local shop are located in one area
that's why all things are available in one shop.
 Resources: With small business, things are available in local areas but customer can
utilize these resources instantly and they can do better utilization of resources and
wastage are limited.
Medium size business: These type of business are family owned and manageable but
here are more complex situation in an enterprise where business are separated. Medium sized
business with 100 or fewer employees are there is considered small and 100-999 is generally
considered in medium sized busines (Dungan, 2017). Examples of medium sized business are:
transport companies, local restaurants and grocery stores
Features of medium sized business:
 Limited investment: Requirement of capital is very less as compared to others business
and it operates a small scale industry.
 Less number of employees: There is a small number of people in an organisations rather
than larger organisation their small scale operations.
 Local area of operations: Sometimes medium size business are generally refers to
operate local business and contain a longer periods of time. It is helpful for customers to
maintain and build a strong relationship with various type of local customers.
Large size business: A large firm can consist of 250 or more people work in enterprise and it is
authorized by single act of entity and recognized by law. It has at least 5000 employees and has
an yearly turnover greater than 1.5 billion euros and a balance sheet of more than 2 euros
(Eggert, Böhm and Cramer, 2017). Examples of large sized business are: Wal mart, amazon,
google, apple, general motors and so on.

Features of large size business are:
 Large scale industry means where huge amount of capital is to be invested with heavy
capital intensive.
 These are considered as a high technology industry their brand level is high and brand
value also. In this where white collar employees handles a large share of enterprise.
 They can give special attention to customers towards quality control in production and if
they can sell best quality the customer are more attract towards this brand and always
purchasing this brand.
SECTION 2
Characteristics and example of sole trader business, partnership, limited liability business, public
limited liability business and Cooperative
Sole trader business: It is also famed as sole proprietorship. There is a self employed
person who owned and manage their business as an individually (Goleman, 2017). It has no legal
existence separate from proprietor. Examples of Sole proprietorship are: sweet shop, beauty
parlour, general store and so on.
Characteristics of sole proprietorship:
 Individual initiative: In sole proprietorship, the business has started a single person and
arrangement of various factors. All profit and losses are taken by only this single person
who are running their business.
 Unlimited liability: The owner of this business is liable for all losses that are arising in
enterprise and liability is not limited because only investments in business.
Partnership: When two or more people agree to cooperate and share all profits and
liabilities by 50-50. Their ownership are transfers and they both are responsible for anything
happened in business. Examples of partnership are: Levi's and Pinterest, Red bull and Go pro,
BMW & Louis Vuitton and many more are included.
Features of Partnerships:
 Agreement: It comes into agreement when both parties are agree to become partners
then they signed agreement paper to come into a contract.
 Lawful business: Any business cannot take a illegal activities include in business.
Partners are only allowed through legal based activities.

Limited liability business: These firm is a particular form of private company where
businessman are not personally responsible for firm's debts and liabilities (Hillary, 2017).
Examples of limited liability business are: blockbuster, Westinghouse and son on
Characteristics of limited liability partnerships:
 Separate legal entity: It has separate legal entity where they can legally transact their
organisation and enter contract in its own name.
 Limited liability: There is a limited liability of employees, customers and members are
not liable for illegal activities, misdeeds and legal faults but they are liable for their own
illegal faults.
Public limited liability: It has a separate legal firm with a separate legal entity where
public can buy or sell their securities or shares and traded as a stock exchange. Examples of
public limited liability business are: oil and gas company, insurance company and many more
Features of public limited business:
 Separate legal entity: Public limited company has a separate legal entity and partners
are signed their contract in its own name.
 Easy transferability: Stakeholders of a firm can easily transfers of shares to public and
there is no rwstr4citon area that they cannot transfer their shares or inviting their shares to
public.
 Paid up capital: In public limited company, there is minimum paid up capital to start
their operation of any business are 500000 and company's new act was started 2013.
Cooperative business: When firm can be owned and managed by people who used its
products or services and those people who are benefit that from what product or services firm
can offer. They meet their common needs through social, economic and cultural controlled
enterprises. Examples of cooperative business are: Agricultural, rural areas and service
cooperatives like insurance, housing and health care
Characteristics of co-operatives business:
 Voluntary association: Cooperative society is a association of persons not for capital
and any of single person can join our society they can leave anytime there is no bond
situation in this. Even if they can leave in organisation they withdraw their capital from
this society.

 Fixed return on capital: In this enterprises, return on capital is fixed not usually more
than 12% per annum and profits are divided in terms of bonus share.
SECTION 3
Different organisational structures and explain how organisational structure affects business
productivity
Organisational structure: It is a system that determine allocation of resources and
identify how certain activities in respect to achieve goals and objectives of an enterprise
(Iwafune, 2017). It is also determine flow of information at certain level of a company. Key
structures that are used in organisational with context to
Hierarchical structure: It is said to be a chain of command from top to bottom like
management executives to general employees. The organizational structure consists where each
an every entity is associate to single other entity. With context to Sainsbury, because there is a
people who used this organisational structure and a series of people control each and every level
of responsibility. It should be maintained highly level of localized control of taking decision
making as it is developed to supermarket dealings.
Matrix structure: This term consists of more than one leaders or subordinate and it is
the one where there is a dual or multiple responsibility along with project or functional lines.
Sainsbury uses matrix structure because it is flexible for enterprise and allow firm adopt various
situations which are named as employees pay price and adopt matters of price to compete their
competitors (Kato and Charoenrat, 2018).
Organisational structure affect directly their productivity of business and creates a several levels
of communication part inside and outside organisation. It can determine performance and depend
upon how efficiently can go subordinates relationships and influence their productivity level.
PESTLE analysis and how different external factors affect the performance of a business
It is framework that consists of macro environmental factors that can affect their external
factors of organisation (Narkchai and Fadzil, 2017). Some factors that are used in pestle analysis
with relation to Sainsbury are as mentioned below:
Political: These factors consists of government interference in economy and it include
political stability, taxation and corruption. With relation to Sainsbury, political factors can

impact currently in Brexit. This will leads to increase the product of brand and there is large
number of customers may be lost to competitors.
Economic factors: It can determine economy growth of business and influence direct or
indirect impact on unemployment. It includes inflation rates, exchange rates and disposable
income. In case of Sainsbury, inflation rates is high and growth rate are more or less this will
impact that purchasing power are decreased.
Social factors: They can focus on social environment and represent various features like
norms, beliefs, attitudes, growth rate, distribution and so on. With relation to Sainsbury,
customers are aspires shop from supermarket because it can provide customers all goods under
one protection.
Technological factors: According to this factors, they can consider the new innovation
of technology that could impact on marketplace which include technology awareness and
research and development. With context to Sainsbury, they provides a latest technology from
vehicles and has come up with an option of selling online food and groceries and collect
purchase their stores.
Legal factors: It include a specific rules and regulations such as discrimination law,
employment law and copyright. In case of Sainsbury, with changes in customer base firm also
needs to fulfil their demands and any delay part can loss in market shares and competitors to
provide a better experience to customers.
Environmental factor: It can affect environment condition of economy and includes
carbon footprint, pollution and raw materials (Sinhala Pedige Somawansa, 2018). In case of
Sainsbury, government can expect that every business should be eco friendly so that customer
can attract and reduce waste and reduced carbon emission in operations.
CONCLUSION
As per above information, It has been understood that management report helps to take
decision making of business and operate day to day transaction with help of financial report.
Several topic are covered in this report such as micro, small, medium size or large business with
examples, different companies are involved which are named as sole proprietorship, partnership,
limited liability, public limited and cooperative along with examples, various organisational
structure and pestle Analysis that can impact on external factors.

REFERENCES
Books and Journals
Bromage, D.I., and et.al., 2020. The impact of COVID‐19 on heart failure hospitalization and
management: report from a Heart Failure Unit in London during the peak of the
pandemic. European journal of heart failure. 22(6). pp.978-984.
Chandra, P., 2020. Fundamentals of Financial Management|. McGraw-Hill Education.
Dungan, A., 2017. Sole Proprietorship Returns, Tax Year 2015. Statistics of Income. SOI
Bulletin. 37(2). pp.2-28.
Eggert, A., Böhm, E. and Cramer, C., 2017. Business service outsourcing in manufacturing
firms: An event study. Journal of Service Management.
Goleman, D., 2017. Leadership that gets results (Harvard business review classics). Harvard
Business Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Iwafune, Y., and et.al., 2017. Energy-saving effect of automatic home energy report utilizing
home energy management system data in Japan. Energy. 125. pp.382-392.
Kato, M. and Charoenrat, T., 2018. Business continuity management of small and medium sized
enterprises: Evidence from Thailand. International journal of disaster risk reduction.
27. pp.577-587.
Narkchai, S. and Fadzil, F. H. B., 2017. The communication skill on the performance of internal
auditors in Thailand public limited company. International Review of Management and
Marketing. 7(4). pp.1-5.
Sinhala Pedige Somawansa, D., 2018. A comparative analysis of profitability among public
limited company in the finance sector in Sri Lanka.