Types of Business Organizations on the Basis of Size, Scope, and Organizational Structure

Assessment

Contents
INTRODUCTION.......................................................................................................................................3
SECTION 1.................................................................................................................................................3
Types of business organizations on the basis of size...............................................................................3
SECTION 2.................................................................................................................................................5
Types of business organization on the basis of their scope......................................................................5
SECTION 3.................................................................................................................................................7
Different types of organizational structure and how they affect the productivity of business..................7
PESTLE analysis of Tesco Plc................................................................................................................8
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
The business is considered as a legal entity which is engaged in the industrial,
commercial or the professional activity. It is defined as the organized activities or efforts of the
individuals in order to sell and produce the products and services with a sole motive of earning
profits. It is known as business because it is the will of people to produce the value. In simple
words, it is something which the people do in order to make money. Every business has its own
rules and regulations under which it functions and the sole motive of all is to earn maximum
profits (Mayer, 2018). The organization chosen for this report is Tesco, a leading business which
deals in general merchandise and groceries. It is headquartered in Welwyn Garden City,
England. This report shall cover the types of business on the basis of size and scope,
organizational structures and PESTLE analysis of the company.
SECTION 1
Types of business organizations on the basis of size.
There are businesses which are set up with the sole objective of generating profits but it
is not important that they need to be multinational companies with the huge number of
employees. The micro, small and medium enterprises do not have huge workforce, but are
working with the primary aim to generate profits (Kim and Shim, 2018). The classification of
business organization on the basis of their size are discussed below-
 Micro businesses- These are the business organization which involves less than 10
employees working for it. They are very small in size and involve 0-9 employees. The
turnover of such organization must be less than EUR 2 million.
Characteristics:
 They employ less than 10 number of workforce,
 They have the turnover of less than EUR 2 million.
Example: any repairing or grooming salon.

 Small businesses- These are those businesses which involves less than 50 workforce in
their organization. Their turnover is approximately less than EUR 10 million. They are
little bigger than the micro businesses.
Characteristics:
 They involve less than 50 numbers of people in their organization.
 The turnover is less than EUR 10 million.
Example: Fourex
 Medium businesses- These involve those businesses which have around more than 50
employees but less than 250 in number. Their turnover is expected to be less than EUR
50 million.
Characteristics
 They employ the workers from 50-249 in numbers.
 Their turnover is expected to be less than EUR 50 million.
Example: Verdant Leisure
 Large business- It comprises of more than 250 number of workforces and their turnover
is expected to be more than EUR 50 million. They make huge investment in their
working so that they can generate maximum profit out of it (Kato and Charoenrat, 2018).
Characteristics:
 These organizations are big in number and involve more than 250 employees.
 Their turnover is expected to be more than EUR 250 million.
Example: Tesco Plc.