Set Up Your Business Structure Business Essay

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Introduction to the business

Business is a company that provides products and services according to customers wishing. Depending on the role there are two types of companies One which Provide products ;many companies such as Dell and Ford Motors provide products to their customers, while the second type of business such as hotels and airlines providing services to their customers. Business of service management is as difficult and rewarding as a company that offers products.

In all societies, there are five types of stakeholders:






Stakeholders mentioned above involved in work for five major functions. These five functions are of the system of information management, finance, accounting and service of the most important advances in Marketing and business development. Managers strive to develop a better structure of the company. Develop strategies and plans for customer satisfaction and employee motivation. The structure of the Corporation depends on their size. Different structures and motivational theories used in a business.

Types and structure of the company

1 -Corporation Companies

Corporate companies are classified as "C" or "S". The company as a legal entity may be followed. However, the protection of personal assets and avoid personal liability. The main difference between a 'C' corporation and 'S' Corporation is taxed as. C Corporation might not be the best option for your business payment; all the income taxable income in c and pay taxes on profits after tax. With "S" tax is transmitted to relatively formulated shareholders personal income tax on income. If you don't pay federal income tax there are some restrictions on a single company. Only 75 contributors are greeted with a single class of stock could be ineligible shareholders.


LLC can have one or more owners. Business individual LLC is taxed as a sole proprietorship the owner of two or more LLC is taxed as a partnership.

In General, it is prepared by a lawyer, which determines how indebted LLC, names of officers and members. Protected enterprise resources and avoid personal liability.


These businesses are partnerships between two or more persons or entities. Not provide protection from liability. General partnerships are more partnerships, which means that all partners are together responsible for debt and responsible for society and its Partner. For members and partnership revenues collected personally spend.

Holdings Limited ("LPS") partnerships are similar but each sponsor is limited to the percentage of your investment. Such business society simply provides cash contributions or materials or content. A strategy that some partners are limited is the law alone as intro to protect your assets and reduce liability risk. Proceed from transfer submitted and income taxes.

Regardless of what kind of person you must use the apartment to a commercial entity in your business and protect your assets and reduce liability risks while choosing the best entity type Don't forget, outside the territory of a State might have to pay taxes to the State. A financial advisor can help us to make the right decision for each entity and investment company.

All companies, SMEs, large enterprises, organization, particularly corporation to ensure their proper function are segmented in to different departments with definite business objectives.

Some departments are:

• Public Relations Office

• Human resources

• DM

• Marketing Department

• Strategic planning and management

• Production/manufacturing

• Sales Department

• Management of logistics and distribution

• Legal Department

• Management

• Research Department

Model structure of a global company with a broad geographical function

Big companies have traditionally been grouped according to Individuals, teams, and Sales Manager: send the all reports to the president Head of Department, Director of sales.

There are some benefits of management structure is as follows

Services focus on a specific work area

Because each department is responsible for establishing clear guidelines to manage separately given the division of administration, there is a clear role and understanding of their workers and other roles. There are also disadvantages in different departments

Because each part works only in the framework can therefore less interaction, without leaving a trace ECHO is collectively. Spend a large amount of management fees on administration of a single department in different countries. Different departments to develop their own culture based on geography, the business environment, which could be different and organizational culture over time, they are more resistant to any changes in the management or operation of the undertaking. This is a model for large multinational companies, for example, Coca-Cola.

Local company structure model

It will be appropriate for Central, for example, a group of companies of taxi and small chain stores or chain of fast food with many branches, and each site can operate in accordance with domestic demand, but remains focused on the policy of the company.

Advantages of this type of structure

Local need can serve their customers and better communicate with Considered as positive competition between independent service professionals.

Thanks for the effective and regular staff is informed of progress and planning for communications conducted in various regions.


There may be a conflict or anxiety between State and local government due to lack of interest in different contexts with one or more widgets is properly administered, particularly where there is no charge for work, all concentrations are converging on sales and management, public relations, for example, human and other resources fail over later ethics.

Staff motivation theories

Company operates with its employees. Sale managers and other members or staff salaried a company, marketing people are considered as employees. Provide crucial role played by the staff. To improve the performance, staff is motivated by job satisfaction. According to circumstances several theories have been developed to motivation.

Hierarchy of needs theory by Maslow

In 1943, the psychologist Abraham Maslow's needs hierarchy theory was published. This theory suggests that the classification motivation is grouped in five ways. Once you achieve your basic requirements you become certain self motivation to achieve the next class of motivation. These needs are classified under:

Physiological needs

• Security requirements

• Social needs

• Self-esteem needs

• Discount car

McGregor's theory x and theory y

McGregor, who developed the theory makes an important contribution to employee motivation theory x and y. each theory gives what an employee can be imagined.

Theory x can be summarized as an employee in employment and job take responsibilities and avoid shortcomings if possible.

The theory stated that employee perform his task and is ready to do more work and take more responsibility,

Unlike supervisors who believe in the theory is delegating more powers for workers and allow them to use their creativity, so it would be more motivated staff because of high level of job satisfaction.

Supervisors believe theory x, likely to be used for tight control over delegated workers with little or no authority.



Company history

Jack Cohen (Tesco 2008) on the basis of 1919 Tesco plc (TSO) (l) After expansion in all markets of Germany, including the development of new archive formats for small areas (Tesco Metro) and formatting (Tesco) superstore and new product lines such as electronics, home and room for environmentally conscious food company has international expansion (Tesco, 2008) available. The first expansion was in 1995 Tesco Hungary (Tesco, 2008) opened the shop. First tracks this expansion of Poland and the Czech Republic, Slovakia, and Northern Ireland, Ireland, Taiwan, Thailand and South Korea in the 1990s (Tesco, 2008). Tesco operates on a 12 international markets, in addition to all regions of the United Kingdom (Tesco, 2008).

Organizational structure

Organizational structure and refers to people and jobs are ready to help meet your business objectives .Typical organizational structures are simple structures; defined not only by industry and society, but the host country in which the company was founded. Organizational structure is a key factor for success in a global organization; it can also move more difficult areas of strategic business development.

Tesco has chosen a strategic business unit (Department) in all its activities to maximize the level of competitiveness in the individual market segments.

Enterprise Strategy

The size and scope of operation depends on Strategic direction, Types of products or services sold and delivered, Quality of service and image, brand and image. The width of the line of products and services, Functions performed by the company; Distribution points, and functioning of the market client. Geographic market is being served Property and financial goals.

Tesco operates in four strategic business units in the United Kingdom, who runs the international operations United Kingdom, grocery store, and manage the holding company and international sales, e-non-food and household goods and other non-food objects sold in Tesco Stores, services and other retail management, (Tesco, 2008) and manages the account on the site services and telecommunications services.

By focusing on international business unit is at the heart of strategy much business for development and change, an overview of using management society as a whole. According to Tesco (2008) international group active in eleven markets (12, by entering the market in the us. last year), with 100,000 3 million customers through market areas. The company says that the results of 2007 has seen 11 billion turnovers and profit of 560 million pounds and print space more than half of the group outside the United Kingdom (Tesco 2008). "International management" from Tesco strategy including flexibilities, facilities and operations, including customers, cultures and supply routes and regulations focus on a few countries, offers discs meet the needs of local markets, and the ability of people, processes and systems and unifying brand to create lasting relationships with customers (Tesco 2008). All these elements are visible in the expansion of Tesco in the end of 2007.Tesco allow business units market allocation strategy and Provides individual market segment. International expansion was past Tesco, small business, California, CA, at the end of 2007 (deer), 2008. CMHC provides open stores up to 48 in the same area at the end of 2009 and then consider expansion to other parts of the United States (Hirsch, 2008). These last extensions of strategic business use/develop international markets. Tesco has adapted to the local market and culture defines the scope of the image and brand products.

A range of products in store with a strong focus on fruits and vegetables to cover biological products and natural taste of local culture, but also a gap in the supermarkets in the area. Tracks wemisonitis and large urban districts, cities and places not only adapt bad service in the market but give also to market requirements perfectly complement the surrounding neighborhoods. This product is based on the Exchange (e.g. Tesco express convenience) allowed in California and to successful markets and Tesco adapt local culture rather than attempting to import product changes in the region. Commercial aircraft successful adaptation of Tesco stimulating new market practices of their competitors who began almost immediately to improve the supply of fresh produce and get a small space in local files at the same time.

The company provides an organizational structure with business unit strategy, Tesco's flexibility, to expand your business in many ways you can extend your electronics in EMS food, except for measures or practices or resources, UDF or "United Kingdom", the flexibility and customization performed functions within your organization. Deploying successful endeavor international market is because it violates your strategy according to new market demands, rather than imitate competitors or techniques that you can select the country of origin, marketing and image of the brands and companies. Tesco has Binixtrimili DFID trade leader in five sectors twelve international market (Tesco 2008).


Culture belongs to the determinants of success or failure of the operation, development techniques that largely determines how changes, flexible and innovative trend. Fairfield ringtones provides a model of the four levels of corporate culture, which includes cultural artifacts', values history and culture, ideology, which allows for the identification and description of the activities of the organization culture. Tesco culture the liability of legal persons to determine which describes the main aspects of core values and ideologies of cultural heritage.

Tesco's main priorities:

Make sure that company and the ability to take responsibility, at the heart of our company.

Good neighbor, responsible, fair and impartial. Taking into account environmental, social and economic decisions (Tesco, 2008) these prices have a significant impact, such as Tesco, business and financial performance. For example, California's expansion should be not only profitable but also socially responsible. As in UK cities US face the problem food supplies some large supermarkets and supermarket does not have an adequate supply of fresh food, including fruit and vegetables, proteins.

0Life outside the area, residents will benefit why supermarkets are reluctant to build cities in remote areas and many to suffer as a result a healthy diet and health consequences. Priority company Tesco open culture allows to check the company a business areas, which were hesitant to move forward and provide services to Aboriginal suppliers under such as supermarkets and can or not the requirements. Open branches in under-served areas not just about the ideal, but the way of expressing virtually untapped market entry. Although may now has offices in the United States retailers tacitly encrypted access to markets, the Tesco, Tesco have feature in markets still posted. It is a culture of growth and the service.

Another area in the course of business for the culture of the company development is influenced by the introduction of biological material lines farms, food stores in the 1990s and continue to develop a series of characters production years (Tesco, 2008). These lines, including organic fruit, vegetables, meat and other protein and dairy products, eggs and other goods and product manager, grew in importance in recent years with the profitable company such as growth factors consumers awareness. Life above supply chain is a unit of basic strategy United Kingdom (Tesco 2008) strategies because it offers the possibility to reach customers, especially those, think in this way, the food is as important as the food itself. However, this provision is also responsible for the ideal base business culture and to increase public and environmental responsibility. The culture of the 1990s at the same time a perfect lifestyle of organic products (eggs) (Tesco 2008). If organizational culture change inspired a change in development policy, or if you are a real development strategy which inspired to change the change of culture of chicken and beef!


Here is a simple checklist to complete as begin to set up your business structure:

Understand the main differences between business structures (taxes, liability and administrative costs)

Understand the relative advantages and disadvantages of each type of structure

Assess your own desires and determine which structure is right given your situation and type of business. Seek professional help to ensure to avoid overlooking any details (city permits, licenses, etc.).

Remember, setting up of a business structure is not the most exciting part of starting a business, but can be a burden if ones fail to select the best structure.