Business in Practice: Types of Organizations and Structures Report

This report, focusing on BMP3002 Business in Practice, provides a comprehensive overview of business organizations. It begins by classifying businesses based on size, differentiating between micro, small, medium, and large enterprises, and discussing their characteristics, including turnover, number of employees, and management structures. The report then delves into the legal structures of organizations, explaining sole proprietorships, partnerships, limited liability companies, private limited companies, and public limited companies, highlighting their features and implications. Furthermore, it examines various organizational structures, such as line, functional, divisional, matrix, and network structures, assessing their usefulness in enhancing productivity. The report concludes by analyzing the impact of external factors on the business environment, utilizing PEST analysis (Political, Economic, Social, Technological, Legal, and Environmental) to assess the influence of these factors on business operations and decision-making, using Tesco as a case study. The report aims to provide a clear understanding of different organizational structures and their relevance in the business world.

BMP3002 Business in Practice

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Task 1......................................................................................................................................................3
Explanation of various types of business organizations on the basis of size............................................3
Difference between organizations............................................................................................................4
TASK 2..........................................................................................................................................................5
Explanation of different types of organizations on the basis of their legal structure................................5
TASK 3..........................................................................................................................................................7
Explanation of various types of organization structure and their usefulness in productivity...................7
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Business is a systematic means for people to sell their product and service. It must start with
organizational administration of various kinds of activities (Beugelsdijk, Ambos and Nell, 2020).
This report sets out how medium-sized and big businesses are used as industry startups. There
are a range of businesses which are typically known as the sole dealer, alliance partnership etc. It
also recognizes that organizations have different options for choosing the right arrangement to
better function safely and effectively. The report also describes a method for the study of
external variables by managers.
MAIN BODY
Task 1
Explanation of various types of business organizations on the basis of size.
Businesses are the means in which entities advertise the goods to satisfy consumer demand and
make money for the sake of lives. Below are the organizational types
Micro business- This category of business involves such businesses with less than 10 employees
and total revenues of less than or equal to two million (Gursansky, Kennedy and Harvey, 2020).
The elegance of Merce is in Lutton, a micro-size beauty salon that delivers the finest form of
beauty treatment for the customer.
Small businesses- The Corporation considered as a small business in which there is average
turnover is less than 10 million and staff is not more than 50. CAFEPOD Coffee Company is an
example of small business which is started by Peter Grainger and Brent Hadfield. It is well-
known in the UK local industry.
Medium size- Organization in which there are 50 or more workers, but a limit of 250 as well as
there is an annual turnover of 50 million, known as medium-size. There is an example of such
organization which is a ISI Company that provides data and media intelligence community for its
relevant customers, founded by Adam Ludwin and Domini Joseph.

Large size- This covers businesses with a portfolio of revenue of over 250 million annually and
hiring more than 250 people. TESCO is one of the main companies in the United Kingdom that
provides its consumers goods and food by managing stores in UK and other nations that operates
same functions.
Difference between organizations.
Particular Micro Small Medium Large
Definition Companies able
to produce just 2
million revenue
are the micro-
enterprises.
This involves
businesses that
have 50 million
revenues
annually.
Organization that
is able to produce
annual revenue of
over 50 million.
Companies who
manage their
market operation
to produce more
than 250 million
gross profits.
Number of
employees
There should less
10 employees
participating in
the trade process
within this form
of company.
In small
businesses, the
number of
workers is 50.
The medium-
sized
organisation's
working cap is
250.
The actual
number of
employees is not
limited, but there
should not fewer
than 250.
Management Mostly the single
owner is able to
take right
decisions
(Caldera, Desha,
and Dawes,
2020).
The owners
themselves took
the decision.
The CEO,
director and main
director should
take the decision..
The assistance
and decision of
the Board
meeting is made
by system of
decision.
Legal procedure Easy Easy Moderate Hard

Entry and exist
barriers
In the micro
business, it's easy
to join and quit.
Simple entry
process and exist.
Typical practice
because the
company has a
legal duty to
meet.
It takes time to
become a major
business because
of strict legal
restrictions
Level of
competition
Comparatively
low
Comparatively
low
Level of
competition is
high
Higher
Plan process Perhaps for a
brief period for
planning.
Proposals for a
limited period are
created.
For shortages and
long tie time, a
business plan is
created.
Proposals are
actually made for
a long period of
time in big
organisations.
TASK 2
Explanation of different types of organizations on the basis of their legal structure.
Organizations differentiate by complexity, obligation and legal framework. Individuals must
determine about which form of entity, on the basis of ethical requirements, they want to start.
Sole proprietorship- Businesses where one person takes over and manages are known as sole
ownership (Brennan, Canning and McDowell, 2020). There would only be a single individual
responsible for paying all of the loans and collecting all the income created from company
translations in this form of business. The Achilleos Energy Assessors started by George
Achilleos that is known as sole proprietorship. The company offers its clients technical guidance
and service as well as a certificate in energy conservation.
Features-
 One person's investment opinion.
 One person takes all the money.
 Unlimited obligation for the payment of damages is with the sole owner if inured.

 Low demand for money.
Partnership- When 2 or more individuals come together and pool their assets with a certain
venture, they are called partner firms. The start-up company Red Bull and Go Pro as Red Bull
offers career and brilliance so all companies are united to make greater profit by offering their
combo commodity to sportsmen and women.
Features-
 Shares of each partner shall be included in this loss and responsibility.
 Better choice when using each partner’s skills.
 Simple collaboration introduction process.
Limited liability- This is a new business model that was introduced recent year. The Member’s
responsibility is restricted to the extent of its share of company capital. Oxfam is an association
with limited responsibility. It is a non-profit group that aims to minimize the poverty problem.
Features-
 The agreement can be charged.
 They have a limited liability right.
Private limited- Organization in which the corporate or individual entities take interest in the
share capital is known as private (Kennedy and Bocken, 2020). Arcadia Corporation is the most
privately owned example of producing and producing foreign garments.
Features-
 Private Corporation can be used according to entity titles.
 Facilities in legislation.
 Public allocation restriction

Public limited- It is described as a distinct legal body in which government or public account for
more than 50% of the shares. TESCO is an entity with public limits that controls more than 50
percent of its shares.
Features-
 Independent legal body and the right to subscribe to municipal subscription.
 Shares may be transferred.
 Perpetual succession and limitation of liability.
TASK 3
Explanation of various types of organization structure and their usefulness in productivity
Any organization, whether small or medium, and have a relationship or corporate arrangement
that determines all rights and responsibility in compliance with each level of hierarchy, must
create a solid management structure.
Line structure- One of the basic types of hierarchical organizational structures is the line
organization. Its power flows upwards and downwards. In comparison to other systems, these
organizations do not provide specialized and supporting programs. The next and each department
head have their own power. This is the type of system wherein the authority and duty flow is
governed by a command structure. It is the most famous form of company hierarchy. It is a form
of autocratic system, which is responsible for each person's job.
Functional structure- The functional structure has been the most typical approach used by
organizations that organize workers according to specialization, expertise or associated functions
(Webber and Dunbar, 2020). It is focused on hierarchical levels of multiple agencies under the
leadership of appointed officials. In this type of system each person is a community with the
same expertise and the same area. It leads to capacity growth and reduces the expense of industry
by work systematically.
Division structure- The framework of a division is a type of construction that groups each feature
of an entity into a section. Each unit has all the tools and features needed to ensure the section

(such as own financing, IT and advertising services) or region. When the entity is divided by
division, he is regarded as the framework of division. This form of arrangement is probably ideal
for businesses with a wide commercial area.
Matrix structure- In project management, the matrix organizational framework always speaks
either of the task material or of the managers' position (Allen, 2020). It is termed a fluid
framework because, on the grounds of necessity, these employees may change their hierarchical
status to meet the needs of another department.
Network structure- This framework can help the Multinationals control and empower local and
their global companies as well as giving responsibility. This helps keep the team in a good
relationship. Each department of this power is decentralized. The versatility of management
communicates their advice. Network framework describes specifically the control chain as well
as a workflow overview
Project structure- This unified method of decision-making is used. The management works on a
single mission and is assigned within the system by the overarching responsibility and power.
Tesco is a multinational corporation, and its management uses its network organizational
framework to create effective understanding across both local and global divisions.
Effect of external factors on business environment
External factors impact the profitability levels of industry both directly and indirectly. PEST has
been used by TESCO's managing director to consider the impact of these:
Political factor- These considerations include import influence, stability / instability of the
economy, government laws and regulations and taxes. Political considerations include actions
and laws made by government and which directly or indirectly influence industry (Netz,
Svensson and Brundin, 2020). With its head office in the United Kingdom, TESCO is
introducing its businesses in separate countries. As one of the world's best distributors, the
organization complies with a range of regulatory laws, including a safety fee. Global turmoil
impacts the organizational practices and senior management decision making. When the

multinational corporation maintains more subsidiaries, its practices also change. In various
nations, changes in tax policy can impact the viability of companies.
Economic factor- These considerations includes demand for commodities, employment,
inflation, interest rates customer desires. That is the collection of fundamental knowledge that
influences an organization specifically or its financial decisions. Clients play a critical role in
every sector, shifting in consumers need or volatility would affect the company's activity.
Changes in tax policy would directly influences its pricing plan, TESCO should bear in mind that
adjustments in price of the commodity would impact the sale. Since rise in price may be a
justification for the deductions of sales
Social factor- Social dynamics affected by consumer’s lifestyle or expectations. It requires,
cultural diversity, choice, taste, faith worth, norm etc. apart from this, shopping preferences,
level of education, income, and household income also influences a company. Due to quick life
speed, consumers tend to purchase items in line with new patterns or bulk sales. TESCO plans to
make goods available to consumers in accordance with its needs. TESCO has continued to
transform its culture with the transition to natural foods by improving market stance and
encouraging organic services that fulfill the demands of uses.
Legal factor- This aspects impact an organization through legislation and legal determinants that
can influence business strategic decisions either positively or negatively. If a company wants to
receive funding from investors, a problem such as security law can occur. The organization
would have to deal with national and foreign competition regulations and shifts in regulatory
factors.
Environment Factor- This includes all the components that is connected with natural world. It is
important for any business entity to use certain material and goods are not hazardous and unsafe
for community (Keiningham, Aksoy and Kearney, 2020). Action has been developed to regulate
exploitation of natural resources. TESCO developed policies to minimize and lead to the
environmental use of material and toxic chemicals. The TESCO Division of Administration also
engages in the environmental protection program.

CONCLUSION
The above study has it can be concluded that they decide which form of company they work
with to establish their business before joining the business person on the basis of the free flow of
capital. Personal workers are Micro, Mini, Medium and Large. When doing business as a sole,
industrial, partnership or existing entity, whether it was corporate, public or restricted
responsibility there are multiple legal requirements and procedures to be fulfilled. Individually,
how efficient the system is to interact with each other, a framework that allows assigning powers
and accountabilities is built for the good of any organization. With the aid of the PEST
controller, fiscal, social and legal impact on industry can be understood.

REFERENCES
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