BMP3002 Business in Practice: Types of Companies and Their Impact

This essay provides an analysis of different types of companies, ranging from micro-businesses to large corporations, and explores various business structures such as sole proprietorships, partnerships, limited liability companies, and cooperatives. It also examines the impact of organizational structures, including functional, divisional, and hierarchical structures, on business productivity. Furthermore, the essay discusses how PESTLE analysis factors (Political, Economic, Social, Technological, Environmental, and Legal) can affect the execution of a business, highlighting both opportunities and challenges within the UK market. The conclusion emphasizes the importance of aligning business type with desired goals and considering internal and external factors for successful business operations. This document is a student contributed assignment to be published on Desklib.

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
ID:
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Contents
Introduction 2
Section 1: Different types of companies and how they work
P
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors
affecting business p
Conclusion p
Reference List p
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Introduction
Business organizations are the very important choice which is to be made regarding
the company. There are many different forms of businesses and adapting to these
will affect the multiple number of factors which will determine the future of company.
It is a necessary step to align goals with the business type of the company.
Section 1: Working of different companies
Micro business:
They are the one which work with very few people. It operates with just less than 10
people are the start of such companies is with a very small amount of capital which
comes from bank of any other organization (Kelly, 2019). Further, turnover should
not be more than 1.7 million. The specialty of micro businesses is in providing goods
and services for local areas. Balance sheet total should not be more than 1.7 million.
Small business:
These enterprise works with fewer employees and having less amount of revenue. IT
carry the employee less than 50 and hold the turnover of 8.2 million. Balance sheet
total must not be more than 3.26 million. It is considered small in terms of applying
for government support and qualifying for tax. Small businesses include the retailing
operations such as small stores and These businesses require a business license.
Small enterprise works with less than 300 employees.
Medium size business:
These businesses have different IT requirements and face different problems due to
this. The number of employees working in such businesses are less than 1000
employees. Turnover must be 35.2 million. Balance sheet total of 12.9 million.
Medium companies can be family owned and manged business and are normally
established in a organized form which have an observable track record. These
businesses purse the funds from the lenders and investors.
Large size business:
These businesses are the one which has at least 5000 employees and huge amount
of turnover rates. Large businesses unlike medium and small, have a good approach
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to the IT and other resources. There are many specialist working within the company
which showcase wide variety of specific skills.
Section 2: Different types of companies
Sole trader business:
It is one of the oldest and commonly used form of business. In such businesses, a
single individual handles all the matters of the organization. This individual shares all
the risks and takes all the profits while managing and controlling the business by
themselves.
Partnership:
Partnership is the type of business which involves having a formal agreement
between different people who will agree to be the co-owners of the company ( Farah
and et.al., 2020). They distribute the responsibility while running the business and
share the income generated or the losses generated within the business.
Limited liability business:
These businesses are business structure for private companies and have the
combined operations of relationship and corporations. Limited liability companies will
welfare from the flexibility and smooth flow in the process of taxation while hold back
the limited liability status of the corporations.
Public limited liability :
It is the public companies which are the voluntary associations of the members.
Such companies have a separate legal existence and the liability of the limited
members (Cassia and Magno, 2019). These business are listed in the stock
exchange where its stocks and shares are traded.
Cooperative:
Also known as co-ops are the businesses which have an autonomous association of
the individuals which are voluntarily involved in meeting common social and
economical needs. These businesses are make up by people with a special need
and are all ready to work jointly in a company.
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Section 3: Assorted business structures and macro
economical factors influencing business
3.1 Designation of assorted organizations and explicate how
does structure of the organisation impact business
fruitfulness
Functional organization structure
Functional organizational structure is where the reporting relation of the
company is bifurcated depending on their functional areas. The working
responsibility of these companies in on a particular department. This structure is
appropriate for small and simplex organizations.
Divisional organization structure
In divisional type of structure, organizational functions are classified into different
divisions depending on the product and services. It works on specialized areas and
is appropriate for large and dynamic organizations (Lee, Patterson and Ngo, 2017).
Hierarchical organization structure
Hierarchical organization structure where the company follow the chian of
command. The proper hierarchical structure involve set of designations at all
different level. The power is coordinated in decentralized manner.
Having a small management hierarchy ensures in maintaining the policies and
procedures. Having an oversight and job specialized brings in standardization.
Organizational structures helps in promoting efficiency and thus increasing the
fecundity.
3.2 How various factors affect the execution of a business –
PESTLE Analysis
Political factors such as tax policies and changes happening in the trading process
can impact the business in many ways. The restrictions and tariff charges can make
the business face challenges to survive. The political condition of UK is uncertain
due to the Brexit effect, it has created chaos but has opened door for many
opportunities within the country. The political condition in UK has led to maintaining
good relation with other countries that has influenced business within country in
positive way.
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Economic factors includes interest rates, inflation rates, level of unemployment and
also the fluctuations in the country's economy. The economy of the country is
bouncing back stronger and is extremely useful to support individuals and
businesses with low income. Good economical stability in the country allows the
businesses to grow.
Social factors are the size of the population as well as some different cultural trends
(Horch, 2018). The population of the country is multi-culture and demands for new
products and markets for different race and religion. It provides an opportunities for
the organizations to explore their options.
Changes in product development and increase of automation are all in the category
of technological factors. The use id advance technological infrastructure will allow
the entrepreneurs to have unlimited opportunities to do business within the markets
of UK. It is worth spending in technology.
Natural disasters and weather patterns affects the business as the environmental
factors. Moreover, it is important that the business of the organization is done using
the sustainable sources and causing the least harm to the environment. Country is
facing challenges regarding the weather conditions and such factors plays a major
role within various forms of business.
Legal factors which includes laws, lawsuits and related issues. It is important the
organization follows the legislation of hiring its employees and paying them
according to the law. The business of the company must be done while considering
all the important standards for health and safety. Breaching the legislation can lead
to lawsuits against the company and this is bad for its reputation.
Conclusion
It can be analysed that there are many different forms of business which have
different working characteristics and run with different types of owners. It is important
to consider the type of business when starting a company so as to reach the desired
goals. There are different types of organizational structure and it has a huge impact
on the productivity of the business of the organization. Moreover, the different
internal and external factors which affects the business in both positive and negative
way.
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Reference List
Books and Journal
Cassia, F. and Magno, F., 2019. A framework to manage business-to-business
branding strategies. EuroMed Journal of Business.
Farah and et.al., 2020. Leadership succession in different types of organizations:
What business and political successions may learn from each other. The
Leadership Quarterly. 31(1). p.101289.
Horch, H.D., 2018. The intermediary organisational structure of voluntary
associations. Voluntary Sector Review. 9(1). pp.55-72.
Kelly, A., 2019. Different Types of Business Analysts. In The Art of Agile Product
Ownership (pp. 125-133). Apress, Berkeley, CA.
Lee, J.J., Patterson, P.G. and Ngo, L.V., 2017. In pursuit of service productivity and
customer satisfaction: the role of resources. European Journal of Marketing.
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