Analysis of Various UK Company Types and Structures

This report provides a comprehensive overview of various types of companies operating in the UK, including micro, small, medium, and large businesses, and their respective characteristics. It details different ownership structures such as sole trader, partnership, limited liability, public limited liability, and cooperative models. The report further examines different organizational structures, including functional, matrix, and flat structures, and explains how these structures influence business productivity. A key component of the report involves a PESTLE analysis, applied to Marks and Spencer, to illustrate how political, economic, social, technological, legal, and environmental factors impact a business's performance. The analysis helps understand how these external factors influence the company's strategic decisions and overall operational effectiveness. The report concludes with a summary of the key findings and insights regarding the different company types, ownership structures, organizational models, and the impact of external factors on business operations.

Types of Companies

Table of Contents
INTRODUCTION.......................................................................................................................................2
MAINBODY...............................................................................................................................................3
Section 1......................................................................................................................................................3
Different types of companies and it's working.........................................................................................3
Section 2......................................................................................................................................................5
Different companies from sole traders to cooperatives and Limited Liability Partnerships.....................5
Section 3......................................................................................................................................................6
Different organizational structures & explain how organizational structure affects business
productivity.............................................................................................................................................6
Using PESTLE analysis explain how different external factors affect the performance of a business.....7
CONCLUSION...........................................................................................................................................8
REFERENCES..........................................................................................................................................10

INTRODUCTION
As per current time, there are various types of companies performing their regular activities in
the development of economy and society in UK. Some specific type of companies like micro,
small, medium and large companies are playing a significant role in the development of
economy and these companies are also liable to generate numerous employment opportunities to
the communities and local people. These companies adopt a specific ownership structure like
sole proprietorship, co-operative, partnership, sole trades etc. On the basis of this report, various
types of organizational structures are discussed which determine the productivity of the business.
This report conduct PESTLE analysis and also identify the organizational structure of Marks and
Spencer which is British multinational retailer organization established in 1884 by the Michael
Marks and Thomas Spencer. Headquarter of the firm situated in London, UK. Through PESTLE
Analysis Company identify the impact of external environment on their business productivity so
that company can maintain proper their organizational structure.
MAINBODY
Section 1
Different types of companies and it's working
In United Kingdom, different types of Companies are performing their daily tasks and
provide there effective contribution India economic growth. UK Government it is very much
concerned about their economy so that government formulate various policies and plans for the
people so that they can take initiative and start business with where new ideas and become a
successful entrepreneurs (Aithal, 2017). There are different types of Companies operating by
the individuals and a group of people which can help full to provide various job opportunities to
the ruler and urban people so that they can live their life smoothly and also participate in the
development of the country. The description about different type of Companies on the basis of
their size, scale, scope, and characteristics are discussed below-

 Micro Businesses - This type of companies mainly established by the individual and a
potential entrepreneur who don't want more interference of the government it and also
liable to take decisions of company by their own. Micro businesses are small in scale,
size, but the purpose of their business is more powerful. The main motive of these
businesses is to cover niche and local markets so that they can provide their product and
services to those people who cannot even afford to purchase the large organization. In
these businesses, less than 10 individuals can work and turnover rate considered under
the £2 Million. There are various characteristics involved in micro businesses such as low
profitability, low production, and limited workers and less resources. All these
characteristics differentiate micro businesses from the other.
 Small Businesses - This kind of businesses provide their best contribution in the
development of local area people. Small businesses are privately control and managed by
the owner and it mainly consider sole proprietorship, partnership & co-operative
ownership structure which can provide the authority to the owners who can liable to each
and every operations by their own. In small businesses, less than 50 individuals can
perform their task & turnover rate considered under the £10 Million. There are various
types of collective six contain why this small businesses which can determine the specific
structure and value of the firm. Some appropriate characteristics such as cover small
market area, small team of the employees, average production, proper utilization of
resources and good productivity rate (Brandano, Detotto and Vannini, 2019).
 Medium Businesses - Medium companies are working operations is more as compared
to the small businesses and medium businesses also cover more geographical areas in
which these companies operating their businesses in an effective manner and address the
requirement of their customers so that company can get more profitability. There are less
than 250 employees can work and the turnover rate is contained under £50 million. Micro
businesses also characterized by various activities like more productivity, good profit
margin, involvement of more members, consider more resources and many more which
are essential for the firm.
 Large Businesses - Large companies scale and size is more as compared to the small &
medium enterprises and they require various resources to operate their day to day

activities. Basically large companies come up with innovative product and services so
that they can cover the whole market and also fulfill the requirement of the customers for
their innovative products (Keane and Costin, 2019). Large companies provide direct
contribution in the development of the economy and these companies expand their
business operations globally so that it can help full to generate more foreign currency
which make strong economic structure of the country. There is more than 250 employees
can work and the turnover rate is considered more than £50 million. There is involvement
of various characteristics like high level of resources, more workforce, high productivity
rate, large level of Production and manufacturing activities, international reach etc.
Section 2
Different companies from sole traders to cooperatives and Limited Liability Partnerships.
The explanation of various types of business and ownership structure which are adopted by
different type of Companies are discussed below - Sole Trader Business - This kind of structure is very simple to register so that most of
the entrepreneur adopt this ownership structure and operate their business effectively.
Entrepreneurs are responsible to pay taxes and also take decisions for their businesses. In
this structure, there is no involvement of government so that entrepreneurs can work
effectively in their own style and take appropriate actions for their cooperation. Which
type of ownership structure contain many types of characteristics like legal
consideration, ethical consideration, freedom to take decision, unlimited liabilities, solo
management and many more which represent this is structure in an effective way so that
most of the individual can adopt this structure and run their business (Pradabwong and et.
al., 2017). Partnership - In this ownership structure, two or more individuals can participate and
form a company and also so they are responsible for each and every activities of the
business whether it is profit or loss. All partners are equally liable to perform business
operations and their decision matters for the company. Partnership firms are privately
owned and governed by the the partners and they are self employed and also liable to pay
tax to the government. There are many characteristics contained by the partnership

structure such as, separate legal entity, limited liability, trademarks, logo, ownership and
monitoring, maintain transparency etc. Limited Liability Business - Limited liability business ownership structure is similar as
the partnership structure excluding that their partners are responsible for limited terms of
amount that they invested in their firm. Limited liability businesses considered as a single
person form which can be associated with two or more people. All these people are are
involved in business activities and share fixed profit and loss as per the limited liability
business agreement (Thorlakson, de Zegher and Lambin, 2018). As for this agreement it
is necessary to send it all type of self assessment reports and also tax returns. There is a
necessity to pay tax to the government. There are some characteristics determined in this
structure such as limited liability, flexibility, tax ease & separate legal entity. Public Limited Liability Business - This kind of business structure is work like a
prophet association which divided into specific shares that are publicly credible in term
of stock exchange. This type of business structure maintains the limited liability in term
of business which can consider by business owner. This ownership structure is
characterized by various features such as financial privacy, large amount of capital,
transferable share and many more which represent structure value (Jonathan, Rusu and
Perjons, 2019).
 Cooperative - This basic structure is most appropriate and owned and controlled by
their participated members. This structure is totally dedicated to their members and at
least five people who hold equal voting rights and maintain investment in term of
business are considered. Cooperative structure only allows limited distribution of revenue
to its members and don't allow any other person. There are some characteristics are
involved in this business structure such as open membership, demographic control,
limited interest on capital and voluntary membership (Mrňová and Roudná, 2020).
Section 3
Different organizational structures & explain how organizational structure affects business
productivity.
Every organization need to adopt appropriate organizational structure which can help full to
operate every activities in a systematic manner so that there is less chance of miscommunication

conflicts and disputes. There are various types of organizational structure which affect the
business productivity are given below-
 Functional structure - This type of organizational structure is performed their work
same as hierarchical structure. The flow of information regulate from top level to lower
level. Top management authorities are liable to take decision on behalf of each and every
participants of the organization. All the employees can perform effectively and also take
appropriate suggestions and guidance from their managers and leaders so that they can
effectively improve their productivity and profitability rate. This is structure also helpful
to improve career development opportunities for the employees so that they can feel more
secure about their job and achieve organizational goal effectively (Andrews, Ferry,
Skelcher and Wegorowski, 2020). Matrix structure - This structure adopt workplace format in which all the employees
can report more than two managers instead of one manager that operating project. For
instance, employee also have primary manager to report but then also need to report to
project manager with whom they are performing their project operations. This structure is
performed their work as a great and demonstrate cross-functional teams that engage in
term of project. Flat organizational structure - This kind of structure contain limited level of of the
management between the administrative levels & frontline employees. This is structure is
helpful to encourage the decision-making of the employees so that they can take their
decision by their own and also provide their suggestions and advice so that manager can
also consider their suggestions to take appropriate decision for the welfare of the
organization. This structure is also known as the horizontal organizational structure in
which few level of middle management between the employees band executives are
considered. This is mainly followed by the Marks and Spencer so that company can
maintain their managerial and administrative levels and work so that they can achieve the
organizational objectives.

Using PESTLE analysis explain how different external factors affect the performance of a
business.
PESTLE analysis is useful to determine the impact of external business environment factors
on the business so that company can effectively analyze the current performance at the whole
market place. The explanation of PESTLE analysis in context of Marks and Spencer are
discussed below -
 Political Factors – This factor determine the political stability and instability, trade
regulations and policies. .M & S pay more attention to follow all the considerations and
maintain economic stability so that company can regulate their operations in other
countries without any political interference of that particular country.
 Economical Factors - This factor based on the economic development rate, inflation ,
recession and foreign trade policies. M& S prepare convenient pricing strategy on and
also follow all the maintain economic growth why generating more foreign currency.
 Social Factors - On the basis of social factor , cross cultural activities, purchasing power
of the customer is mainly considered by the M & S so that IT company can effectively
understand the requirement of the customer and provide them satisfactory products and
services (Haug, Shafiee and Hvam, 2019).
 Technological Factors - technological changes & modification in the technologies are
main factor which contain by the M& S. Company adopt high-level of technologies so
that company can effectively connected with their customers and prepare a strong
customer base. Legal Factors - Legal policies , laws , procedures, legislation are properly followed by
M& S so that company can effectively operate their business globally without any legal
berries of other countries.
 Environmental Factors - Environmental Changes, changes in climate, population rate,
and pollution level is contained in this factor. M& S maintain all these factors and
provide their contribution in the environmental sustainability and also enhance green
marketing activities (Islam and Mamun, 2017).

CONCLUSION
According to this reported can be said that different types of companies like micro, small,
medium and large are main role to improve financial position strong of the country in this
situation more strong and also generate very type of environment percentage to the people. This
report also discussed different business structure which are adopted by many entrepreneurs and
partners. This report conduct PESTLE analysis to determine the external factors influence on
business productivity and also discuss different type of organization structure which affect the
productivity of business.

REFERENCES
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