Legal Forms or Entities

Before starting a business, one has to decide the legal structure of the business.

In most cases, the owner of the business has the option of choosing to have the sole proprietorship, a partnership form of business or a limited liability company. The other form of entity that can also be used is the corporation. Some businesses also choose to use corporative as an entity.  There is nothing wrong with choosing any form of these businesses (INC, 1). The best thing to do as the business owner is to understand that each of them has its advantage and its disadvantages. In most cases, the best choice is never obvious.

Pedal to the medal was started by two people who both contributed to the capital that was used to initiate the business. Therefore, it is appropriate that the business entity that will apply here is the partnership between mr. Andrew and Sam who started this organization because of the love that they had for cycling and the environment.  In case the owner can choose to use the sole proprietorship, it will have limitations. However, the owner will have the advantage of enjoying all the profits. Also, there are no expenses that may be needed in case there is the need to file for any complain or registration/ either of partnership and sole proprietorship hav the advantage of personal liability not being an issue or a big worry.  They are ao easier to start and to maintain because of the lack of many documentations (Winnubst,1).

However, since the owners want to expand, the option that will suit them best is the limited liability company. This will allow the owners to have limited liabilities for the company. In case some debts have to be paid, the court only punishes the business and avoids punishing the owner.  The lawsuits against the business will only be faced by the business. The business can sometimes hire a lawyer that will represent the company. The owners of the company do not have to be present to represent the company unlike the other forms of entities such as the sole proprietorship and partnership. However, the disadvantage is that there will be taxes that are filed for the company that is much ans was not applying to pedal to the medal before these initiatives. There will be times that your business will be able to stash away the earnings at relatively low rates. Additional benefits include the provision of the fringe benefits to the owners. This is a massive advantage especially at the new owners. Therefore, it is recommended that the pedal to the medal company should register a limited liability company. Because of the complications, many smaller businesses can also benefit from being a limited liability than they would benefit they are corporations.


Organizational structure

An organizational structure refers to the systematic outline that shows the methods that the company wi; use to achieve the goals that they have set.  These structures or sets of activities may involve the rules to be followed by the members of the organizations, the responsibilities of the members or the roles that each member of the organization is playing. Each of the structures in the organization is portrayed through the companies chart. In this case, the chart below shows the organizational charts that show the hierarchy of the people with different responsibilities (Kenton, 1). for this organization to be successful, there is the need to have the  structures that defines all the  employees jobs and how they have to fit and maintain the overall system of Maintainance.  Therefore, the structure has to lay out what does the specific type of job and the ability that they have to meet the objectives of the company.

Centralized and decentralized structures

In essence, business structures can be centralized and decentralized.

The centralized structure has the leader who is the head of the command and instructs all the other people below the chain.    This is the type where the head of the hierarchy is more superior than anyone else. The people ho follow also have their powers depending on the decisions of the company.  May start-up companies use the decentralized structures. This is because the power is shared among the people who start the company. However, in this case, two partners contributed to having a level playing field in the operations and management of pedal to the medal. In this case, there are easy that the users and the owner can use decentralized strategy so that the power is shared among the two key take holders. When it goes down, the other people who are on power also follow along. The last category is the junior employees who have to follow up the main powers that have been set by the two decentralized leaders. The matrix structure below will be used to create this organizational structure.

Each of these structures has the possible risks that are associated with them. The decentralized structures have the risk of losing the control, and the company may fail due to 5o different decisions from the ower shared. On the other hand, the risk of having a centralist leadership structure is that there is no guarantee of better solutions.

(Winnubst, 2)



The company could also decide to go for the structure that has two main chairmen of Andrew and sam as follows: (Winnubst, 2)




Functional areas

Functional areas refer to the teams of employees that operate as a functional unit in some area with specific skills. The dominant department is the functional area where the company depends on. In this case, the main functional area is the sales department that is important for all the activities.  Without selling the product, the company can not generate revenues. Some of the functional areas in this company also include marketing and finance. The graphic below shows some of the functional areas for this company;( Winnubst,3)



The bicycle has to be sold, and the human resource department will be important for addressing the other members of staff., research and development will be important in finding the ways of succeeding in the future. The production department has the main challenge in finding environmentally friendly products. The two owners can find the best solution to this problem by identifying the best suppliers. The sales department have to handle the problem of the competitors. This challenge can be addressed by having superior marketing strategies (Winnubst,2).

Mission statement and vision

Great culture in the business starts with the vision and mission statements. The simple phrases that are expressed n the company shows the values of the company and the purpose that it is formed. In return, the purpose prepares and orients the members of the organization about the certain decisions that they have to make (Coleman, 1).  When the position and the mission statements deeply show the authenticity, they orientate the customers and the suppliers about the culture in the organization.  Compelling vision statements can help the company sell as well (Kolowich,1).

Mission statement: pedal to the medal: buy the bicycles that cause no harm to the environment and inspire the world through implementing a solution to environmental and physical crisis.

Pedal to the medal vision: our vision is to have a world that is free from diseases that comes as a result of lack of exercises and offer products tata re environmentally friendly.

The min strength to this statement is that it provides the vallu of the product’s market success to the values of contributing to the better world. For those that are behind these bicycle brands, they aim to give the best products that are coming concerning the time and services. The main weakness is that it does not show how to get there. However, it gives the platform for a better tomorrow.  The ai strength of the mission is that it shows the determination that the owners of the company have to create a better environment. However, it does not seem complete when compared to the other mission statements of the competitors. The cultural values are important through.



Coleman, John. “Six Components of a Great Corporate Culture.” Harvard Business Review, 28 Nov. 2017,


INC “Which Legal Form Is Best for Your Business?, Incorporation Article.”, Inc., 13 June 2000,


Kenton, Will. “Organizational Structure.” Investopedia, Investopedia, 20 Mar. 2019,

Kolowich, Lindsay. “17 Truly Inspiring Company Vision and Mission Statement Examples.” HubSpot Blog,

Winnubst, Jacques. “Organizational structure, social support, and burnout.” Professional burnout. Routledge, 2017. 151-162.