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 examples of sole trader business, partnership, limited liability
business, public limited liability business and cooperative........................................................5
SECTION 3......................................................................................................................................8
Identify different organisational structures and explain how organisational structure affects
business productivity. .................................................................................................................8
Using PESTLE analysis explain how different external factors affect the performances of a
business.......................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business mainly is an activity which is carried out by the organisations so that they can
make profit out of it and improve their living standards. The main purpose of business is do trade
goods and services and in return generate profits and revenues. These business organisation
contribute immensely in the upliftment of the society and also in the development of the
economy of the country. There are many types of organisations which can be formed on the basis
of various factors such as: size, incorporation, purpose, liability, etc. there are various
environmental factors which also affect the incorporation or the management and functioning of
the company (Ahrne and Brunsson, 2019). The company chosen in this report is Marks &
Spencer. It is a multinational and a leading company that mainly deals in the clothing, fashion,
food and home products. This report covers types of businesses according to their sizes and
incorporation. It also discusses different structures of organisation and its effect on the business
productivity. This report also have PESTLE analysis of all the external factors that may affect
the working of the organisations.
MAIN BODY
SECTION-1
Definition, Characteristics and example of Micro business, Small business, medium size
business and large size business
There are different types of companies that are formed on the basis of its size and the
amount of capital invested. The different types are: micro, small, medium and large scale
businesses.
Micro Size Business
This is the type of Business who do not have more than 10 employees working. The total
turnover of such businesses is also not more than £2 Million (Sharma, Agrawal and Khandelwal,
2019). These type of business are managed with very low funds and the employees are very
limited.
Characteristics:
 The employees are not more than 10.
 These are established in the limited area or locality.
 The market area covered is small.