Analysis of Company Types, Structures, and External Factor Impacts

This report provides a comprehensive overview of different company types, including micro, small, medium, and large businesses, and their characteristics within the UK context. It explores various business structures such as sole trader, partnership, Limited Liability Business (LLB), Public Limited Liability Business, and cooperatives, detailing their key features and implications. Furthermore, the report delves into different organizational structures like hierarchical, functional, and matrix structures, analyzing their impact on business productivity. The report also includes a PESTLE analysis, focusing on political, economic, and social factors, to assess how external factors affect the performance of a business, using Burberry as a case study. The report concludes by summarizing the key findings and implications of the analyses.

Types of Companies

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAINBODY...............................................................................................................................................3
Section 1......................................................................................................................................................3
Different kinds of companies & how they work......................................................................................3
Section 2......................................................................................................................................................5
Different companies from sole traders to cooperatives and Limited Liability Partnerships.....................5
Section 3......................................................................................................................................................5
Various organizational structures & how organizational structure affects business productivity............5
Using PESTLE analysis explain how different external factors affect the performance of a business.....6
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
In this current scenario, there are various types of companies are working their operations
all around the United Kingdom like Micro, small, medium and also large scale businesses.
Entrepreneurs started their businesses with the innovative mindset and use their extra ordinary
skills to formulate specific types of companies, at the initial level company status is micro and
after the hard work and continuous working entrepreneurs improving their company size (Al
Mamun and Hasan, 2017). Entrepreneurs have a choice to start their company on a specific
business structure like sole proprietorship, partnership firms, cooperative and public limited
liability business and many more. The main concern of this project is to discuss various type of
companies and also business structure, identify various type of organizational structure and
determined that with structure is more suitable for the company and also determine the impact of
macro factors on the business. Burberry Company is selected to determine the organizational
structure & conduct PESTLE analysis.
MAINBODY
Section 1
Different kinds of companies & how they work.
In UK, there are various kinds of Companies which are playing a remarkable role to improve
the economical situation of the country. Some specific types of companies are micro, small,
medium & large companies. All these companies are container specific motive to serve the
society and also evolve the living standard of the local communities and social people. These
companies are differentiate on the basis of their scale and size and also considered some
appropriate characteristics. Explanation about the various types of companies and its
characteristics are discussed below-
 Micro businesses - These kinds of companies mainly established by those entrepreneur
who wanted to start their business with their creative thinking. UK government initiated
various types of schemes and also policies so that entrepreneurs can effectively start their

company without any hindrance. The size of the micro business is very small and their
market research is also very limited as compared to the other companies. Basically in this
type of business, 10 people are allowed to perform activities and the turnover rate also
comes under £2 million. This kind of business holds various characteristics like low
productivity rate, low profitability, less production & participation of limited people.
Specific examples of the micro businesses such as Castle Hill Fire Protection Ltd, Beauty
Boulevard, Mantons Cards and many more.
 Small businesses - Small businesses provide their best contribution in the the growth of
the those persons who are living in rural areas . This type of companies providing
numerous working opportunities to the local people so that they can earn money and
improve their lifestyle. Small businesses mainly privately formed & monitored by the
specific person or group of people and also adopt proper business structure like
partnership firm, sole proprietor re & other corporations. All these with this structure are
helpful to maintain a proper terms and conditions which necessary to follow each and
every partners and single owner (Brandano, Detotto and Vannini, 2019). In small
businesses, only 50 people can work properly & the turnover rate under the £10 million.
Specific characteristics are also involved in this business like target small market area,
adopt sole & partnership firms, participation of small team members; require average
number of resources and equipments etc. Some examples of small businesses are Davison
Canners, Imaginera, and Broadsword vent house.
 Medium business - These businesses mainly connect the rural & urban market areas and
also create proper connect in context of business operations. Medium sized businesses
require more funds and resources as compared to the small businesses (Keane and Costin,
2019). The main concern of this business is earning more profit and full fills the
requirements of the local population. In these businesses, less than 250 people are
allowed and the turnover rate is £50 million. Medium sized businesses contain some
specific characteristics like more productivity rate, generate more revenue, involvement
of more workers. Few specific examples of this kind of businesses are Captify, Smith
Brothers Ltd, Check out.com.

 Large businesses - The participation of large size businesses is more to improve the
financial and economic growth rate of the country. Large businesses need high level of
capital, financial resources, human resources, equipment instrument and machineries for
the manufacturing and production activities. In large businesses, more than 250
employees are allowed for working and the turnover rate is also more than £50 million.
Large sized businesses also considered specific key characteristics such as high quality of
resources, large number of team members, cover hall marketplace globally, high business
operations and more productivity. Marks and Spencer, Tesco, ASDA , Debenhams and
Sainsbury's are the large sized businesses.
Section 2
Different companies from sole traders to cooperatives and Limited Liability Partnerships.
The explanation about various types of business structures which are adopted by most of the
entrepreneurs to run their business effectively are discussed below-
 Sole Trader Business - This kind of business structure is very easiest which adopted by
most of the entrepreneurs who want to start new business. This weather structure is
contain some specific terms and conditions which mandatory follow to the entrepreneur
like owner of the business is liable to pay tax on time and maintain all the resources why
their own with the help of their own availability (Kim, Lee and Sohn, 2020). The
interference of the government is less in this business structure so that owner can
effectively perform their job and take proper decisions in their own way. With the help of
this business structure, entrepreneur effectively establishes good relation with the
investors and contractors to maintain their operation in a smooth manner. This is structure
contain some characteristics like free from typical legal formalities, unlimited liability,
freedom to take appropriate decision and maintain secrecy in their organization working. Partnership - This is most common business structure which is adopted by various
persons who want to establish their business with their partner's so that they can share
their risk and profit and also participation in the operations and decisions equally. There

is a involvement of two or more than two partners in the business who are basically self
employed and also maintain self managed policies. Some specific characteristics
contained by this partnership structure such maintain proper agreement, equal share,
equal profit, non transferability of interest, proper manage teams. Limited Liability Business - LLB is also a very appropriate business structure which is
mostly similar as partnership structure excluding partners applicability e is limited in
context of these funds which they invest in their organization. LLB basic structure can be
regulated by individual and also a group of association. Those people who are involved in
this business structure are liable to share fixed profit and there is a need to follow proper
agreements and apart from this, they need to share the self assessment report so that it can
make easy to analyze their performance. Key characteristics involved in this structure
like limited liability, flexibility, separate entity and many more (Miśkiewicz, 2017).
 Public Limited Liability Business - This business structure is mainly concerned about
the profit maximization and the ownership is divided into various shares that are mainly
publicly traded able into the stock exchange. There are various characteristics are
included in this business structure like transferable shares, high cost, financial security,
large capital & limited liability.
 Cooperative - This business structure is also popularly known as " Co - op". This
structure properly monitors and control by their participant. All the participating
members can show their active participation to maintain the specific of operations of their
business. Some characteristics contain like voluntary membership, democratic control,
and limited level of interest on the capital, open membership and involvement of many
people (Olufadi, 2018).
Section 3
Various organizational structures & how organizational structure affects business productivity.
Every company needs to follow organizational structure so that all the activities and
operations can be done in an appropriate manner. Organizational structure is work like a
systematic framework & methods which are beneficial for the managers and also the employees

so they can work effectively and in a systematic way. Some specific types of organizational
structures are discussed in this report which is as follows -
 Hierarchical structure - This organizational structure is mainly followed by the large
level of companies. This structure represent in the form of pyramid shaped which
properly maintain organizational chart (Pradabwong and et. al., 2017). The flow of
information and also is specific guidelines follow from top level to lower level. Higher
authority peoples are more responsible to take appropriate decisions on the behalf of of
their leaders, managers, employees and another work force. With the help of this
organizational structure, companies can easily following specific procedure in a
systematic way so there is a less chance of miscommunication and grievances. This
structure gives positive impact on the productivity and effectiveness of the workforce so
that they can perform their job effectively with the guidance of their team leaders. Functional structure - This structure is work like a hierarchical structure. In this
structure, all the employees and team members work properly and also co-ordinate with
their leaders in an effective manner. The flow of information and Communication is also
from up to bottom so that top management are responsible to formulate the policies ,
prepare strategic plan and also follow appropriate strategies for the welfare of their
employees so that they can effectively boost their performance level (Stverkova and
Pohludka, 2018). Matrix structure - This organizational structure perform their working operations like a
grid and show the specific cross functional activities of their team members so that they
can properly established a good engagement with other members in term of specific
project. For example, marketing manager is liable for their duties and responsibilities for
the marketing department but he is also a part of some specific project in the department
(Thorlakson, de Zegher and Lambin, 2018).Burberry follow properly Matrix
organizational structure so that company can effectively e operate their all the projects
and maintain their operations effectively.

Using PESTLE analysis explain how different external factors affect the performance of a
business.
To obtain more profit advantage, there is a need to identify the impact of external factors on
the business performance so that company can properly e target those area which are more
influenced by external factors. Through PESTLE analysis, Burberry, can determine various
external factors and also evaluate their impact on their performance. Explanations of the external
factors are as follows-
 Political Factors – There is an involvement of some specific political activities such as
trade, trade regulations, policies, taxation policies, political instability & foreign trade
policies. Burberry is a big corporation so Company pay more attention on the political
factors of the country and also maintain political stability so that it all the working
operations are complete in an appropriate way (Vintilă, Filip, Stan and Ţenea, 2017).
 Economical Factors - These factors considered interest rate, minimum wages rate, and
employment rate, growth of the economy, inflation and also recession. All these factors
are influence the market so that performance of the Burberry also affected. Due to Brexit
and also Covid pandemic, the whole market between the UK and EU you are disturbed
and it lead big loss. Burberry need to adopt an appropriate pricing policy so that it can
help full to improve their marketing.
 Social Factors - Social factor is mainly concern about the income, education, taste ,
preference, buying behavior of the people and also cross cultural activities. Burberry
mainly focus on their product and services and also concerned about their target market
so that company can gain more profit advantage. With the help of market research, it is
beneficial to identify the need of the customer that lead more customer’s satisfaction.
 Technological Factors - Advanced level of software’s and also Technologies and
changes in technologies also take place in the factor ,which are mainly considered by the
Burberry so that with the help of social media channels and advanced software company
can connect lots of customers and gain more profitability (Zahari and Romli, 2019). Legal Factors - All the legislation, lawful activities and policies are part of this sector
which is necessary to follow Burberry so that company can effectively maintain legal
consideration which is helpful to deal with the other foreign countries legal framework in
term of of business expansion.

 Environmental Factors - Climate changes population, pollution rate and other cyber
activities are involved in this factor. Burberry take care all these environmental factors
and also follow green Marketing consideration which is helpful to maintain effective
environmental sustainability at the whole market place so that company can effectively
maintain their performance long term purpose (Zeng and et. al., 2017).
CONCLUSION
According to this report it can be concluded that there is involvement of various types of
companies in the society so that they can provide their best contribution in the enhancement of
the country's economy. This report also discusses various business structures like sole proprietor,
partnership and many more. This report identified different type of organizational structure and
also discuss about their working. PESTLE analysis also conducted by the company e which are
beneficial to understand the impact of external factors on the business performance.

REFERENCES
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