Report on UK Business Operations: Structures, and Economic Impact

This report provides a comprehensive overview of business operations in the United Kingdom, examining various organizational structures within both the public and private sectors. It details different types of business entities, including sole traders, partnerships, limited companies, franchises, and non-profit organizations. The report also explores the impact of the local, national, and global economic environment on businesses, utilizing a PESTLE analysis of Nike shoes to illustrate the influence of political, economic, social, technological, legal, and environmental factors. Furthermore, the report discusses different organizational structures, such as functional, administrative, divisional, and matrix structures, with examples of companies like Tesla, Samsung, Apple, and Starbucks. The conclusion highlights the importance of external factors in determining an organization's profitability and market expansion, with references to relevant online resources.

HOW
BUSINESS
OPERATE

Table of Content
 Different types of organisation found in the public and
private sectors
 Different structures with in the business in the UK
 The local, national and global economic environment
impacts
 Conclusion
 References

Different types of organisation found in
the public and private sectors
Name of the Country
As per the report the selected country is United Kingdom.
There are lot of types of organization in UK today, but
most common are sole traders, private limited company,
government, partnership, and public limited company

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 Private Sector Companies
 Sole Trader
 Partnership
 Companies (Limited or PLC)
 Non-Profit Organizations
 Franchise

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Private Sector Companies
It is a kind of a business where two or more people share
ownership as well as the responsibility for managing the
firm and their income or losses. That income is paid to
partners, who then claim it on their personal tax returns.

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Partnership: The next way is partnership where two or
more partners are funded for an organization (but
maximum limit 20). Such types organisation all partners
have equal responsibilities in order to share profit and
loss in systematic management.
 Yoomoo
 Age Partnership Limited

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Companies (Limited or PLC): A private limited company
is a legal entity which have own rights and separate from
another those who own it in the eyes of the law. The
private company get benefits that it is operating as a
limited company in the order to liability of the
shareholders is limited to their investments.

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Franchise: It is a type of license that a third party acquires
to allow them to access of business proprietary
knowledge, processes and trademark for sell the products
under a particular business name.
 McDonald

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Non-Profit Organizations: Charitable organisations are
based on guarantee. A charity is set up to fulfil one or
more charitable object and it is set out in the charity's
governing document.

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Public Sector Companies
The public sector is generally comprised of organization
which are owned and operated by the UK government
and exists to provide services to its citizens.
 Central Government
 Local Government

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Central Government – In this include those companies
which is operated by central government and companies
follow their rules and regulations -
 British Broadcasting Corporation
 Channel four television corporation
 Pension protection fund
 Highways England
 NATS Holding

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Local Government –These type organisation can operate by
local government which can follow local ans central
government rule and paid tax. These are -
 Companies house Edinburgh office
 Companies House Belfast office
 Scottish Enterprises
 Serco Local government

Different structures with in the business
in the UK
Organisational structure is the internal, formal framework of
a business that shows the way where linked the
management with the together other activities and how
the authority is transmitted.

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There are various types of organization structure which can
following by the company -
 Functional Structure
 Administrative Structure
 Divisional Structure
 Matrix Structure

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Functional Structure – The organizational structure that
had been selected by Tesla. This is because this structure
has the simplest form of organizing people into various
departments to produce necessary needs in the
organization.

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Administrative Structure – The organizational structure
had been selected by Samsung in order to include specific
level of regularization. It is suitable for organisation
because it can maintain greater scale or larger
multifaceted organizations, most compelling on an
extraordinary structure. It can help to reduce stress
between administrative and non administrative structures.

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Divisional Structure - The particular structure followed by
Apple because of they have hierarchical organizational
structure with notable divisional characteristics and a
weak functional matrix. This organizational structure
followed by Apple because in this structure focuses on
product, market and geographic location.

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Matrix Structure – The particular organization structure
followed by Starbucks because of it is combination of
divisional and functional structure. It is followed by
company because employees have dual reporting
relationship like functional manager and product
manager. Starbucks though this structure can employ
members of the organizationals functional structure.

The local, national and global economic
environment impacts
Brand selection - There is selected brand Nike shoes to
know impact of economic environments.
 Political Factors
 Economical Factors
 Social factors
 Technological Factors
 Legal Factors
 Environmental Factors

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Political Factors – PESTLE of NIKE shoes – Nike has
benefited considerably from the growth orientated policies
of the US government to maintained low interest rates,
current exchange stability and internationally competitive
tax arrangements. To solve the issues create transparency in
the terms of global value chain and discussed about to
political pressures for cooperation with government policies.

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Economic factors – During 2008-09, financial crisis Nike
has faced challenging trading conditions and also
contingent economic slow down. It has followed in
western markets and Asia pacific region. So Nike has
take advantage of growing consumer demand in emerging
economies.

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Social factors - In the sense of macro economic, Nike are
providing advantages of a growing societal preoccupation
with health and fitness. It is arising as CSR position so for
this use global value chain and caught ongoing debate
around globalisation.

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Technological factors - Nike has able to use level of digital
metrics to determine customer demand and revise their
segmentation. In the optimum model, transaction and
supply chain event management are linked via SOAP
(simple object access model) and MPPS (massively
parallel processor system) System it means consumers of
these products to able make contact less payments through
mobile phone platforms.

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Legal factors - Nike's growth strategies related to
internalisation and correspondingly that adapt rapidly
regarding to the legal and policy frameworks. The
strategy of Nike is to pit six factories against to each other
and have them compete for orders based on who produces
the cheapest shoe. The government doesn't protect the
workers due to the union is complacent.

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Environmental factors – Nike has maintains a positive
position with regard to green issues and it is part of
overall policy. Nike has appointed 100 sustainability
champions for their pilot projects in order to several
aspects. They are reduction of carbon emission and
elimination of waste.

CONCLUSION
From the discussion, it has been concluded that PESTEL analysis
help the organisation to determine the external factors which
affect the organisation along with it's profitability or
productivity. Such as political stability of the country is
important for the company to expand their business in the
global market and helps in measuring opportunity and threats.

REFERENCES
List of sole traders. 2019. [Online]. Available through:
<https://www.yell.com/s/sole+traders-uk.html#>
Partnership firm. 2019. [Online]. Available through:
<https://realbusiness.co.uk/10-examples-of-why-co-founding-
and-partnerships-work/>
Partnership Firm. 2019. [Online]. Available through:
<https://www.agepartnership.co.uk/list-of-companies/>

Cont...
List of public limited companies. 2019. [Online]. Available
through: <https://www.globaldatabase.com/top-50-
companies-in-uk-by-revenue-in-2017.
List of private limited companies. 2019. [Online]. Available
through: <https://www.globaldatabase.com/top-50-
companies-in-uk-by-revenue-in-2017>
Non profit organization. 2019. [Online]. Available through:
<https://www.transparenthands.org/list-of-top-5-nonprofit-
organizations-in-uk/>