Business In Practice

Business In Practice

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1......................................................................................................................................3
Definition, characteristics and example of micro business, small business, medium size
business and large size business .................................................................................................3
SECTION 2......................................................................................................................................5
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative. ......................................................5
SECTION 3......................................................................................................................................7
Identify different organisational structures and explain how organisational structure affects
business productivity. .................................................................................................................7
Using PESTLE analysis explain how different external factors affect the performance of a
business.......................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is usually the activity which an enterprise undertakes in order to make a living
out of it. It generates revenue and earn profit from the offering it offers to the public. It usually
involves trading of goods or services. There are many forms of business which are divided on the
basis of their size or form. A business may engage itself in either industrial, commercial or
professional activity through which it fulfil its objective of either earning profit or doing social
service. The external environment may impact the operations of the business which must be
analysed by the enterprises in order to facilitate itself with smooth functioning. The organisation
chosen for completing this report is Marks & Spencer, a leading multinational company which
deals in home products, food and clothing. This report shall cover the types of business
according to the size and form. Further different organisational structures are discussed which
affect the productivity of business and the PESTEL analysis for analysing the external factors
which may affect its working.
MAIN BODY
SECTION 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business
Businesses are run with a sole motive to earn profit and generate maximum revenue so
that it can grow and succeed in the market. There are different types of businesses which may be
distinguished on the basis of its size which includes micro, small, medium and large businesses.
Micro size businesses
These types of businesses involve 0 to 9 employees where the annual turnover of the
business is under £2 million. These businesses are small in terms of employees also and
investment also where the owner establishes the business with little or low funds.
Characteristics of micro business-
 It has very few employee, normally ranging between 0-9.
 It has its establishment in limited areas.
 Its target market is small and generates low revenue and profits.
Example- Boss Brewing Company
Small size businesses

This type of businesses involves employees ranging between 10-49 whose annual
turnover is under £10 million.
Characteristics of small size business-
 The owner usually takes responsibility of the management of the business.
 It involves limited investment with less funds. It is usually preferred by sole proprietor as it involves low investment (Adegbite and et.
al., 2018).
Example- Broadsword Event House
Medium size businesses
These types of businesses involve 50- 250 employees and whose turnover is under £50
million. It involves more capital investment for establishing it and has large market share.
Characteristics of medium size business-
 It involves 1 or more than 1 owners for running the business.
 Large investment may be attracted in order to operate the business. It may be expanded in different locations or countries.
Example- Verdant Leisure
Large size businesses
this type of business involves more than 250 employees and has a turnover of more than
£50 million. It involves huge capital investment and may have expanded its operations globally.
Characteristics of Large size businesses-
 It involves more than 1 owner for operating the business.
 It has large capital investment which may be acquired either by debt or equity. It has global expansion and large market share.
Example- Sainsbury.
Basis Micro Small Medium Large
no. of employees 0-9 Between 10 to 49 Between 50- 250 More than 250
Turnover Under 2 million
euros
Under 10 million
euros
Under 50 million
euros
Above 50 million
euros