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 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.....7
CONCLUSION..........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Business refers to the area where they sell goods and services and put efforts in order to
achieve business objectives (Andrews and et.al., 2020). The main objective of this report is to
define, characteristics and example of small, micro, medium, large business. The report also
includes other business such as sole trader, partnership, limited liability, public limited liability
and cooperative business. The report includes Unilever is taken as a base company to identify
external factors which affect their business.
MAIN BODY
SECTION 1
Definition, characteristics and example of micro business, small business, medium business and
large size business Micro business
Definition: Micro business is defined as a business where there is small number of
employees in organisation. In other words, it can be said that there are less than 10 people to
operate a micro business. They are generally the one who take small loan from bank as this type
of business distributes their goods and services in local areas.
Characteristics: Micro business is a business which means that the turnover of £ 632000
and in balance sheet in this type of business there are less than 10 employees in organisation.
Example: The best example of micro business is Boss Brewing as it is founded in the
year 2014 and headquarters in located in Swansea, South wales in United Kingdom. It is owned
by husband and wife named Sarah and Roy Allkin and has been operating as a craft brewery.
 Small business
Definition: Small companies are privately managed companies, partnerships, or sole proprietors
with less staff and/or lower annual sales than a larger company or industry. This type of industry
generally put their efforts for economic development (Beckerich, Benoit and Delaplace, 2019).
Characteristics: The main characteristics of small business are that there should be less
than 50 employees in organisation and less than £10 million turnover. This type of

organisation mainly focuses on investing their money in plant and machinery. They take
risk and want to achieve success in organisation.
Example: The example of small business company is CafePod as this organisation sells
various products such as coffee, FMCG drinks and hot drinks. The company is established in the
year 2011 and operate by Peter Grainger and 50 employees are working in company.
 Medium size business
Definition: Medium size business in one of the important and growing business and there are
many number of people which is working in different areas. The main focus of medium size
organisation is to maintain the balance between the assets and liabilities. On the other hand they
treat their employees in proper manner (Chung, Jo and Lee, 2021).
Characteristics: The annual sales cannot exceed £36 million. The gross balance sheet
amount does not exceed £18 million. There must be no more than 250 people on average.
The main characteristics of this type of organisation are that they work hard, identify the
needs and demand of customer and update their skills for further improvement.
Example: The best example of medium size organisation is Smith brothers (Contracting
Ltd.) as this comny is established in the year 1999. They are contractor of high voltage
electrical power as they also supply switch gear and transformer.
 Large size business
Definition: Large corporations refer to big business pertaining to company operations on a wide
scale. It is a concept that encompasses a wide range of operations, from "various resources" to
the more basic "doing large stuff." This type of business is operate in large sector five various
opportunities for employment so that they can get better outcome (Lichtenthaler, 2020).
Characteristics: The large size company is defined as where more than 250 employees
are working in an organisation. The other criteria are that they have more than £36 million
and balance sheet of more than £18 million. The characteristics of this type of organisation
are that they want large capital so that they can effectively operate. Large market share, adopt
ne technology and many mother benefits of both internal and external economies of scale.