1.

Types of legal entities according to the law of some country (choose the country you like and
according to its law explain types of partnerships, corporations and sole proprietorships in it).

I choose Poland as a favorite country.

Sole proprietorships

Purpose: operation of a small business by an individual

Founder: individual
Minimum capital: N/A
Legal personality: None. An individual is referred to as an entrepreneur.
Liability: The entrepreneur is liable for his or her debts and obligations with his or her entire property.
Taxation: PIT Declaration – Personal Income Tax.

Civil partnership

Purpose: Operation of a small business.

Founders: Must be established by at least two people.
Minimum capital: N/A
Legal personality: None. It is the partners, not the partnership itself, who are the operator. A
partnership is set up according to the general principles of the Civil Law.
Liability: Each partner is jointly liable for the debts and obligations of the partnership without limit to
the extent of his or her entire property.
Taxation: PIT Declaration – Personal Income Tax

Registered Partnership

Purpose: Established for the purpose of operating business on a larger scale.

Founders: A minimum of two individuals or legal people.
Minimum capital: N/A
Legal personality: None. Personal partnership.
Liability: Each partner is liable without limitation, for the debts and obligations of the partnership,
jointly with other partners and the partnership, to the extent of his or her entire property.
Taxation: PIT Declaration – Personal Income Tax; or CIT – Corporate Income Tax; each partner pays tax
separately.

Limited Partnership

Purpose: Established for the purpose of conducting business under its own business name.
Founders: Must be established and conducted by at least two individuals or legal persons.
Minimum capital: N/A
Legal personality: None. Personal partnership.
Liability: At least one partner is liable to the creditors for the debts and obligations of the partnership
without limitation (the general partner) and at least one partner has a limited liability. However, if a
business name of a limited partnership includes a name or a business name of a limited partner, this
partner is liable for obligations of a partnership without any limitation.
Taxation: PIT Declaration – Personal Income Tax, or CIT – Corporate Income Tax; each of the partners is
paying taxes separately.
Limited join stock partnership

Purpose: Established for the purpose of conducting a larger-scale business (eg large family enterprises).
Founders: Must be established and conducted by at least two individuals or legal persons.
Minimum capital: 50,000 PLN
Legal personality: None. Personal partnership
Liability: At least one partner is liable to the creditors for the debts and obligations of the partnership
without limitation (the general partner) and at least one shareholder is not liable for debts and
obligations of a partnership. However, if a business name of a limited joint-stock partnership includes a
name or a business name of a shareholder, this shareholder is liable for obligations of a partnership
without any limitation.
Taxation: PIT declaration – Personal Income Tax, or CIT – Corporate Income Tax; each partner is paying
taxes separately.

Professional Partnership

Purpose: Established for the purpose of pursuing a profession in the form of a partnership, which
conducts business under its own business name.
Founders: Must be established by at least two individuals qualified to pursue the given profession.
Minimum capital: N/A
Legal personality: None. Personal partnership.
Liability: A partner is not liable for the debts and obligations of the partnership incurred by the pursuit
of a profession by other partners, or resulting from the actions or omissions of the partnership’s
employees who at the time of providing a service related to the company’s business were commissioned
by and answerable to another partner. The deed of the partnership may provide that one or more
partners are liable for the debts and obligations of the partnership to the same extent as that of a
partner in a registered partnership.
Taxation: PIT Declaration – Personal Income Tax

Poland has 2 types of corparations:

Limited liability company

Purpose: Established for the purpose of conducting a business and any other purpose allowed by law.
Founders: Maybe established by one or more individuals or legal persons. However, it may not be
established solely by another single-member limited liability company.
Minimum capital: 5000 PLN
Legal personality: A limited liability company is a legal entity.
Company liability: The Company is liable for its debts and obligations with its whole property without
any limitations.
Partner liability: The shareholders are not liable for the company’s obligations, they bear a risk up to the
value of shares contributed.
Taxation: CIT Declaration – Corporate Income Tax

Joint stock company

Purpose: Established for the purpose of operating business on a large scale. Capital may be obtained
through the issuance of shares. 
Founders: Maybe established by one or more persons; exception: it may not be established solely by a
single-member limited liability company.
Minimum capital: 100,000 PLN
Legal personality: A joint-stock company is a legal entity.
Company liability: The Company is liable for its debts and obligations with its whole property without
any limitations. The shareholders are not liable for the company’s obligations, they bear a risk up to the
value of shares taken up.
Taxation: CIT Declaration – Corporate Income Tax

Poland figures among the most attractive countries in Europe in terms of FDI. According to UNCTAD's
2020 World Investment Report, FDI inflows to Poland remain stable in 2019, reaching USD 13,2 billion,
slightly up from USD 13,9 billion. The total stocks of investments in the country stood at USD 236,5
billion in 2019, an increase of 26% when compared to 2010 level. Poland is the first largest recipient of
FDI inflows in Central Europe. The majority of stocks are held by Germany, the United States, France and
the Netherlands with investments directed mainly to the manufacturing, financial and insurance
activities, and wholesale and retail sectors. In addition, this past year FDI data showed a high percentage
of investors coming from China and South Korea.

Poland’s main assets are its strategic position, a large population, its European Union membership,
economic stability, cheap skilled labour costs and a fiscal system attractive to businesses. Furthermore,
Poland has a number of dynamic Special Economic Zones, and the government founded the Polish
Investment and Trade Agency (PAIZ) to improve conditions for FDI. However, Polish law limits foreign
ownership of companies in selected strategic sectors, and restricts acquisition of real estate, especially
agricultural and forest land. Furthermore, the current conservative government's willingness to increase
the percentage of domestic ownership in certain industries (including banking and retail, which are
currently dominated by foreign companies) negatively contributed to foreign investment. Overall, the
Polish business climate is good and the World Bank ranks Poland 40th out of 190 countries in its 2020
Doing Business ranking, losing 7 positions compared to the previous year.

CORPORATE CULTURE OF STARBACKS

For a company of this size maintaining a consistent culture throughout the organizer and at every level
of hierarchy within organization is a managerial challenge. But the Starbucks too that challenge well and
by giving people importance and considering them as a valuable asset to the firm, the have managed to
create a brand which is rated highly in consumers and business community. The company has been able
to join the list of Fortune’s top companies to work for. Even in declining sales the company did not made
any cuts in its health care plane, where it invests more than it invests in coffee. This clearly shows that it
has a strong commitment.
Starbucks has a culture which is based on inclusion of employees, diversity and equity. These values are
key to their culture and respected throughout the organization. The strong cultures play an important
role in shaping a firm. A strong culture impacts the firm more than a weaker and less managed culture.
That is why strong cultures must be deliberately planned and created. (Schein, 1985). Starbucks has a
strong corporate culture which is also well communicated and visible in working of its day to day
operations.
There are two key aspects of their strong Corporate Culture, which are critical to the success of the
organization and its functions. First is its strong emphasis on employees of the firm, who are called as
“Partners”, not workers or employees. The employees’ called as partners are also engaged in the
working of the company and their voices are heard with seriousness and followed through. Employees
get engaged in operations and are welcomed to give new idea about operation and products. This leads
not only to strong employee motivation but based on personal diversity, company is able to generate
new and diverse ideas from its employee base. This has created a culture of innovation as well as
employee engagement throughout the company.
Starbucks Corporate Culture is made of number of key points that makes it a company that cares for its
employees and ensure that all aspects of diversity, inclusion and equal opportunity are exercised in the
company. The fundamental highlights of Starbucks' organizational culture according to (Panmore
Institute, 2015) are servant leadership, relationship-driven approach; collaboration and communication;
openness; inclusion and diversity.
One of the key aspects of their Corporate Culture is Servant Leadership. This approach means that the
employees and the servants are the key figures in the company and they are the ones who actually leads
the organization and its success. In Corporate Culture where this concept is a part of the Corporate
Culture, the top leadership and higher management empowers the lower workers and the subordinates,
to give ideas and take decisions. This leads to innovation and higher level of ownership by employees
Another aspect of the Corporate Culture at Starbucks is its Relationship driven approach. Where this
approach is applied the Corporate Culture creates a friendly and open work environment, where all
employees at all levels are connected through a bond of friendship and they usually pass this feeling of
warmth and care to customers too.
Another key attribute of Corporate Culture at Starbucks is the Collaboration and Communication
approach. The Corporate Culture promotes an environment of collaboration between employees
through companywide communications. Strong communications networks help employees work
together as a team and collaborate to fulfill tasks and operational efficiencies. These efficiencies are
critical for a coffee house as they result in better service quality, enhanced customer experience and
innovation.
Openness is also a key ingredient in the mix of Corporate Culture at Starbucks. Starbucks promote free
flow of information and encourage employees to openly ask questions and raise their concerns and
share idea with their supervisors and seniors.
Starbucks also weighs heavily on the Inclusion and Diversity in its corporate environment. This feature
shapes Starbucks’ organizational culture is its anti-discrimination policy which prohibits any form of
discrimination based on gender, race, ethnicity, sexual orientation, religion, age, cultural backgrounds,
life experiences, thoughts and ideas. Further they have a culture to hire people with special needs and
disabilities and provide them with technologies to assist them in their work and accommodate their
short comings.
Their employees who are called as partners, collectively work to enhance the model of employee
inclusion and as an organization Starbucks is a diversified organization based on the different
backgrounds of its partners, the employees, who are hired with a clear view of diversification. At
Starbucks they make sure that every employee from higher ranks to the person serving coffee at many
of its outlets feel included as part of organization. Starbucks operates in 75 countries, which add value
and diversity in its employee base, making the organization dynamic and diverse in its innovation and
readiness to face emerging challenges. The diverse nature of the organization helps them perform
better and result in overall benefit of the organization. This is in line with the research and theory of
organizational behavior.

Product Life Cycle- McDonalds

McDonalds is one of the mostly recognized and best-known brands worldwide. It is the world’s largest
hamburger and fast foods chain of restaurants. The food store has a customer base of about fifty million
customers daily. Its business plan is structured in a way that a branch might be owned by the
corporation, an affiliate or a franchisee. The company deals in cheeseburgers, chicken products,
hamburgers, French fries, soft drinks, desserts and shakes. The company has grown considerably over
the years since it has opened branches in several states across America. The company is also found in
119 countries around the world. The company earns its revenues by investing in properties and
franchising together with operating of restaurants.
The company is in the market maturity stage of the product life cycle. In this stage, the strong growth in
sales by the company is diminishing. At this stage of the product life cycle the competition may appear
with similar products like Burger King is doing to McDonalds. The primary objective that a company
should focus on when at this stage of the product life cycle is to defend its market share and try to
maximize it profits. At this stage also, the features of its products might be enhanced or the company
might try to implement other products in order to create a stiff competition for its competitors (Sparks
12). For instance, the company has introduced a new type of food called a salad that targets its health-
minded customers.
The pricing of the foodstuffs have also been revised lower to fight the competition. The distribution plan
of the company has also been revised to become more intensive and with increased incentives to
encourage customers to choose McDonalds over its competitors. All these characteristics are of a
company in the maturity stage and so is the McDonald’s company. Among the three positioning
strategies, McDonalds uses the breakaway positioning strategy. This strategy is where the product
escapes from its original category and deliberately associates itself with another product. The marketers
of the product change the category in which the products are consumed and the competitors with
whom they compete with
The strategy selection that McDonalds has chosen is indeed fit for the company since it deals with
products. Since products are tangible and due to the constant exposure the consumers learn how to
easily encounter and experience new features while the products still evolve. The consumers have a
welcoming feel to the new product options. However, this only occurs where the product is mature in
the market and only where the purchasing of the item is routine and mundane. This is indeed how the
McDonalds products are structured since their customers buy them regularly and is a sort of a routine
exercise for them. The continued extending of the brands gives diversity to the products which is what
the consumers seek and what might keep them faithful to the brand but however, if the product keeps
on increasing in diversity, the ignition of passionate buying that the breakaway system ignites are
reduced.
Breakaway positioning makes it easy for customers and consumers to make judgments of familiar
products and increases their desire for uniqueness. The type of positioning also fends off competition by
limiting the efforts of copycats. Companies mostly dealing with products should acquire the breakaway
positioning strategy by trying to combine the unique features found in their products in all categories.
This can make the company actually develop a maturity for their product and make it grow further.
Companies should also remember that their distribution channels, their promotions, the design of their
product and their product pricing determine greatly what category the product shall fall in, in the
market.