An Analysis of Different Types of Companies, Structures, and Factors

This report provides a comprehensive overview of various types of companies, including micro, small, medium, and large businesses, detailing their characteristics and operational functions. It explores different business structures such as sole proprietorships, limited liability partnerships (LLPs), partnerships, cooperatives, and public sector organizations, outlining their key features and implications. The report also examines different business structures like functional hierarchical structures and divisional structures. Furthermore, the report incorporates an external analysis using the PESTLE framework, assessing the impact of political, economic, social, technological, legal, and environmental factors on businesses, using Primark as a case study. The analysis highlights how these external factors influence business performance and strategic decisions.

Types of Companies

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION ONE...............................................................................................................................3
Types of Companies and their Working.................................................................................3
SECTION TWO...............................................................................................................................5
Explain Different Types of Companies..................................................................................5
SECTION THREE...........................................................................................................................7
Types of Business Structure and Affecting External Factors.................................................7
CONCLUSION................................................................................................................................9
REFERNCES.................................................................................................................................10

INTRODUCTION
A business is a collection of individuals who collaborate to achieve similar goals and
objectives. A corporate organisation must have a vision that symbolises its long-term
objectives, as well as values that symbolise the organization's integrity. The company that was
selected in this project is Primark. In the year 1969 it is found in United kingdom by Arthur
Ryan. It is fast fashion retailer in UK. The Assessment includes a wide variety of topics about
which we have debates. The first section delves into the various sorts of business entities and
how they work. Several types of companies, such as limited liability partnerships, sole
proprietorships, and cooperatives, are discussed in the second section. Different business forms,
as well as how macro factors affect companies, are briefly described in the later half of the
section.
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TASK 1
Different Type of company and how they work ?
Micro business : Micro enterprises are known as those business in which with few amount of
capital it starts their operational function. The number of workforce are also limited in these
firms. Micro business meet out the requirement of the job , it also tends to create purchasing
power, offer convenience and make reduction in the cost of production. A micro firm employs
less than 10 people and generates up to E2 million in revenue. Because of their capacity and
size, micro enterprises confront particular problems. with its owners micro business satisfying
and make control over short-term needs. For example In UK 5.6 million micro businesses
exist. Such of business hires only zero to nine persons for their business entity. Following
business tends to generate employment nearby thirty three percent. these firm generate 21%
turnover in the country.
Micro enterprises are known as those business in which with few amount of capital it starts
their operational function. The number of workforce are also limited in these firms. Micro
business meet out the requirement of the job , it also tends to create purchasing power, offer
convenience and make reduction in the cost of production.
Small business

A small firm is defined by annual turnover and number workers. In this range of people
who are engaged in employment are between 10 to 50 . In this the annual turnover of
companies does not exceed to Eten million. It leads to increase job opportunity in various
different locations of the country. It also support the economy on a local and national level.
such firms perform their operational function by investing very less amount. on the basis of
sector their sizes are depends. In this various partnerships, sole proprietorship, companies are
tends to be owned privately. Architectural companies, , local bakeries, privately owned
restaurents, boutiques, etc are few examples of such type of company . therse type of firms are
present in every sector & industry. Some small enterprises, such as elderly homes, child care,
are heavily regulated.
Medium business : It comprises those entities whose annual turnover does not cross the limit
of E 50 million and these organisation have maximum two hundred and fifty members staff in
their firms. It takes time to grow. If enterprenuer keep attaining good profit than it tends to
plan to purchase some machinery which is not so much expensive. Following business entity
bridges the gap from small to large enterprise. MCdonalds is the best example which is suited
to medium size business.
Large size business : Large firms are defined as those with more than two hundred and
fifty employees and their turnover also exceed to E50 million annually. These businesses have
a larger neMork footprint in their home market and a strong presence in the global foreign
market. Micro and small enterprises are regularly helped by large enterprises. through adapting
various modes of acquisition such as amalgamation, merger, consolidation. Big enterprises
involves large number of employees in their work place therefore for smooth functioning of
business there is need to have proper control on the business activity and task that are perform
by workforce . these type of companies have in their top management some directors, CEO,
compliance officer, company secretary , they are the managing people in big organisations.
such type of organisation has complex management structure and it tends to involve so
many communications among various departments. Furthermore, big size businesses contribute
significantly to environmental sustainability, job creation, and the promotion of international
relationships. The paid up capital of such form of organisations are large in terms to shares and
value. As there are many big companies are exist in United Kingdom. Few of the example of it
is HSBC Holdings, Tesco, Morrisons, Deloitee, Nestle. And many others.
Section two
Types of Organisation
Sole proprietor-.Simply put, a sole proprietorship is a firm run by one person.
Furthermore, a single proprietor is a natural individual (rather than a legal person or
corporation) who owns and runs a business. In truth, the company and the individual are one
and the same; there is no legal distinction between them. Easy setup, low

costs,simplicity, unlimited liability liability, less capital involvement , are some of the traits that
make a sole trader firm one of the most popular . Operating a booking business, , computer
repair services ,providing home healthcare, grocery shops are all examples of frequent single
trader enterprises.
A Limited Liability Partnership (LLP) -A limited liability partnership (LLP) is a
business structure in which some or all of the members (depending on the state) have limited
responsibility. As a result, it may display aspects of partnerships and businesses. Each partner
in an LLP is not accountable or accountable for the misbehaviour or carelessness of another
partner. The controlling authority in this is partners and designated partners. These firms have
common seal. In this the document memorandum of understanding are prepare in which all the
details of terms and conditions along with important information regarding business operations
are explain.
Partnership:. A partnership is a sort of company arrangement in which two or more
individual work together (the partners). In this all partners whose names written in the deed are
signed. In this rules & regulations and profit as well as liability sharing ratio are
mentioned . Partnerships clearly and concisely describe and define a business relation and
responsibility. Members, unlike r companies, are personally liable for the partnership's
commercial commitments, it means that if the liability of the the firm is not satisfied than it cam
be settle down by using the personal assets of the involving partners.
A cooperative: This type of business does not need to be incorporated. The main reason
for founding such an organisation is to help its members. It is not their purpose to generate a
profit. The main purpose to establish these are protection of consumer, improve peoples
standard of living, social purpose, provide help and security to needy people. for example -
orphanage, Ngo's etc. Oxfam is another example of it.
Public sector organisation:. This sort of business splits ownership into shares which
tends to exchanged publicly on various available stock exchanges. such type of firms have a
significant advantage in that the owner can access cash through a public issue , as these shares
debentures, bonds are are transferable. the controlling authority in such companies is
Government. these companies are bound to maintain register of shareholders. In this
Memorandum of Article and Article of association are create which is consider as legal
document of the company .with regards to decision making and business performance great
transparency is shown by entrepreneur. The example of public companies are Rolls Royce plc.
It has its headquarter in London.
Section Three
Types of business structure

In this business entity is divided into many sections depending on geographic
regions, ,services and product. In this approach, each department's job is in control of its own
capital and duties. The setup establishes a clear chain of ownership. Under this structure, the
entire organisation is divided into subdivisions.
The functional hierarchical structure: is operational function management framework
that are set for individuals who are important part of organisation. On the basis of skills, job
profile, knowledge diviison are done . Every unit is generally arranged vertically in this type of
structure, In this powers are delegated from the top management to their subordinates. Higher
levels of power transfer this information down to lesser levels of power. When there is
involvement of only single individual than he is responsible for all the affairs of the company as
in this leadership style is popular. higher authorities in this They entrepreneur just make
decisions and issue commands. Tesco's supermarkets follow a similar pattern.
ASDA has a complicated hierarchical structure with a large number of employees that is in tune
with the local and global business contexts. The Matrix principle underpins the ASDA
framework, which is supplemented with business efficiency and country professional services.

.
A divisional structure- This company is divided into many sections depending on geographic
regions, goods and services. In this approach, each department's job is in control of its own
capital and duties. The setup establishes a clear chain of ownership. Under this structure, the
entire organisation is divided into subdivisions.

External analysis and their impact to business of ASDA

Political factor : Because of its influence on corporate performance in terms of policy
changes and new government rules and processes, it is one of the most important variables to
consider. Consider Primark, an Irish quick fashion retailer with operations and outlets
throughout the United Kingdom. Primark's costs have increased significantly as a result of the
falling value of the pound, which has impacted the company's revenues and profit
Economic factor: Businesses have more possibilities to earn major opportunities while
improving performance if the country's economy is stable and robust. Brexit has caused a drop
in the value of the pound, yet this will be helpful to Primark since low exchange rates will
provide a translation benefit. As a result, if management takes proactive measures and develops
essential initiatives, there will be opportunities to increase profits and income cap
Social Factor: These elements are linked to consumer demographics and encompass
cultural elements and trends as well. In collaboration with Primark, the firm has to start
investing in plus size apparel ranges in the UK, since the country's obesity rate is growing, and
as a result, many female buyers avoid shopping at various stores owing to a lack of plus size
options. Following this trend, Primark has a chance to achieve a first mover advantage in the
UK fast fashion sector, allowing it to compete with Zara, Burberry, and H&M.
Technological factor- Companies have excellent chances to expand their business on a
worldwide scale as a result of technology advancements throughout the world, as well as a
growth in e-commerce practises and digitalization. The emergence of online players such as
Amazon, Asos may have a detrimental impact on Primark's UK performance. Primark's retail

sales may suffer as a result of the firm's failure to maintain an online channel platform; as a
result, the firm must establish or outsource its online selling platform.
Legal factor: It is concerned with the implications of federal and state regulations on
the market or industry, as well as how they affect the organization's commercial operations and
practises. For example, Primark in the United Kingdom must comply with new workplace
pension requirements and raise eligible British employees' workplace pensions by 3%.
Environmental factor: This part of the PESTLE framework is concerned with the
performance of businesses in terms of environmental indicators and policy. Consumers in the
United Kingdom, for example, are becoming more aware of companies that use
environmentally friendly techniques such as paper packaging and recycled materials. H&M,
Primark's main competitor in the UK, has already developed sustainable clothing lines using
organic cotton and other environmentally friendly materials . Primark must start adopting the
same trend and methods in order to boost brand recognition and avoid government pressure.
CONCLUSION
After doing study, it was revealed that every organisation, whether little or large, must
assess the business environment, regardless of its size. As a result, the chances of corporate
development are improved. Based on the data, it is concluded that legal compliance is necessary
for the successful operation of a business. Employees from several divisions work together
seamlessly without causing any business interruptions as long as communication and
collaboration are maintained. Structures are created in line with the size of the organisation in
order to achieve the goals of order and command. In light of the preceding discussion, this job
aids in the understanding of various types of enterprises and their legal frameworks.
Furthermore, a real-life company example is used to demonstrate the many external and internal
environmental elements that influence business decision-making. The divisional and functional
company structures are discussed, as well as examples of how they effect productivity both
within and outside.