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 organisation structure affects
business productivity...................................................................................................................7
Explain how external factor affecting the performance of the business.....................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A business is a activity that is performed by the organisation to manufacture and sell the
products and services in order to earn maximum profit. Business is something that processes for
the motive of profitability. There are various types of business that can be categorised on the
basis on their size and type of business(Anthopoulos,Fitsilis,Ziozias2019).The business may be
involve in industrialization, Commercialization or may be engaged in social welfare activities. In
order to run the organisation successfully, Business should analysis the impact of external factor
and their impact on themselves. Sainsbury is the chosen organisation for this report, It is the
second largest chain of supermarket in United Kingdom and owned 16% share in this sector.
Company is established in Drury Lane, London in 1869. It is the largest retailer of groceries and
become the market leader. This report will explains the different organisation on the basis of
their size and type with their characteristics, also covers the different type of organisation
structure that is followed by the various organisation.
MAIN BODY
SECTION 1
Definition, Characteristics and example of micro business, small business, medium size business
and large size business.
Business is the activity that is conduct for the individual living or earning profit by
manufacturing or selling of goods and services(Bačić,Fadlalla2016).Simply it is the activity that
is concerned with profitability. There are various types of organisation that is categorised on the
basis of their size and these are follows:
Micro size businesses
These are the organisation which is small in term of market share and number of
employees. It also run the business in Insufficient funds and investment. Generally there are 0-9
employees and yearly turnover is less than £2 million.
Characteristics of micro business-
 Target market is small and get minimum profit and revenue.
 Market segment of these business in limited.
 Number of employees working in small business is 0-9.

Example- Boss brewing
Small size businesses
This is the business which is owned by the owner itself with the 10-49 employees in the
business. Company generates £10 million turnover.
Characteristics of small business-
 The company operates less funds and investment.
 Business is run by Sole proprietor as it involve less investment.
 Authority is given to single owner.
Example- Broadsword Event House.
Medium size businesses
These are the businesses which has more investment and large market share in caparison
to small business and worked with 50-250 employees and generate a annual revenue of £10
million(Bonnitcha,McCorquodale2017).
Characteristics of Medium size business-
 It involve partnership in the business.
 It require large investment in order to run the business.
 Market size of the organisation is large and expanded in different countries.
Example- Captify
Large size businesses
This is the business, which work on a large scale with approx £50 million revenue. The
number of employees working in such organisation is more than 250 employees. It involve huge
investment and liabilities.
Characteristics of large size business-
 These business focuses on advancement of technology in their operations.
 These types of businesses works on international level with high share of profit.
 These organisation are specialised in IT skills with efficient staff.
Example- River Island
Basis Micro Small Medium Large
Employees 0-9 50-250 More than 250
Revenue Under 2 million Under 10 million Under 50 million More than 50