Types of Organisations: Small and Large Businesses, Sole Traders, Partnerships, and More

Types of organisations
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Table of Contents
Introduction......................................................................................................................................3
Section 1...........................................................................................................................................3
Different types of companies..................................................................................................3
Section 2...........................................................................................................................................4
Different types of organisations.............................................................................................4
Section 3...........................................................................................................................................6
Different organisational structures.........................................................................................6
External factors affecting businesses......................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10
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Introduction
Businesses are designed to generate profit and lead organisations on the road of growth and
development. The organisational structure of a business helps it take on competition that comes
its way (Jenkins and Williamson, 2015). This report has been prepared to present the different
types and sizes of businesses that TESCO PLC will eventually have to cooperate and compete, at
some point of their operations. TESCO PLC is a British multinational groceries and general
merchandise retailer. Discussed below are difference between SME and large businesses. Also,
discussed below are various types of organisations such as sole traders, partnerships and
company. Various organisational structures and their impact over productivity are also discussed
below.
Section 1
Different types of companies
Small and medium enterprises (SME)
In UK, Companies Act define small, medium and large enterprises. They provide
employment to large number of people in UK and are a vital part of its growing economy.
 Micro business – In UK, micro businesses are those businesses which do not have
more than 9 employees and whose turnover is under £2 million. For example, Boss
Brewing Company.
 Small business – Small businesses are those businesses which do not have more than
49 employees and whose turnover is under £10 million. For example, Broadsword
Event House.
 Medium size business – Medium businesses are those businesses which do not have
more than 249 employees and whose turnover is under £250 million. For example,
John Good Shipping.
Characteristics of SME - Following are the characteristics of SME:
 Limited resources – SME has smaller scale of operations (Jacquemin and De
Jong, 2016). They have less capital and human resources and therefore have
restricted sources of availability of other resources. Also, their sources of finances
are limited.
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