Business Classification and Organizational Structures Explained
Business Classification
By Ownership of Property or Capital
This classification focuses on the nature of the owners, whether public or private actors:
- Public Company: Capital and control belong to the public sector, where public and social economy criteria prevail.
- Private Enterprise: The capital belongs to an individual or group of individuals.
- Mixed Company: A portion of the capital belongs to public institutions.
By Sector of Activity
- Primary Sector: Companies engaged in activities related to natural resources.
- Secondary Sector: Businesses that transform assets through a production process.
- Tertiary Sector: Commercial enterprises and service providers.
By Geographical Area of Operation
- Local Businesses: Operating within a single town.
- Regional Businesses: Conducting activity within a specific region.
- National Businesses: Operating across an entire country.
- Multinational Companies: Acting across various countries.
Organizational Structures
Organizations divide their activities, establish relationships, and define levels of authority through a structure designed to achieve specific objectives.
Formal Organization
The formal organization indicates communication channels and lines of subordination. This structure refers to functions or tasks rather than specific individuals. However, because these positions are filled by people, employees often introduce their own behaviors and goals, which can influence or alter the designed structure.
Informal Organization
The informal organization consists of individuals and their interpersonal relationships. It exists alongside the formal structure, and the two often overlap and interfere with one another. While company directors generally accept and allow the existence of the informal organization, its effects are rarely analyzed.