Types of Business Organizations and Organizational Structures

Business in Practices

Contents
INTRODUCTION.......................................................................................................................................3
SECTION 1.................................................................................................................................................3
Various kinds of business organizations on the basis of size...................................................................3
SECTION 2.................................................................................................................................................5
Various types of business organization on the basis of scope..................................................................5
SECTION 3.................................................................................................................................................7
Macro environmental analysis of the company........................................................................................8
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
A business is considered as a legal enterprise which is run by the individual or group of
people. It is engaged mainly in professional, commercial or industrial activity. It is also regarded
as the set of efforts and the organized activities that involves the trading of goods and services.
Every business involves a common motive which is to generate maximum profit. They all work
with the sole aim of maximizing the profitability and serving the society which such offering that
can raise their living standards. It helps in uplifting the economy by providing employment to the
people (Di Pietro, and et. al., 2021). The organization chosen in this report is Marks and Spencer,
a leading retailer that deals in food, clothing and Home decor products. It was founded in 1884.
This report shall cover various types of business organization, based on their scope and size,
Organizational structures and the macro environmental analysis using a framework.
SECTION 1
Various kinds of business organizations on the basis of size.
There are different types of business organization that are established with the sole
motive of earning maximum profit but it is not essential for them to have large number of
employees. There are various organizations which have limited or no employees but their motive
is only to generate maximum profitability. The different types of business organization on the
basis of their size are discussed there under-
 Micro business- This type of organization has no or very few workforce. The range of
employees is between zero to 9. The annual turnover expected for these types of
businesses are less than 2 million pounds.
Characteristics:
 These businesses are very small in terms of number of employees as it involves only 0-9
number of workforce.
 The turnover of these business on annual basis is mainly less than 2,000,000 pounds
(Temirov, 2020)
Example: A repairing shop

 Small business- It includes those business enterprises which have the workforce ranging
between 10 to 49. They are bigger in size than micro businesses and they are expected
turnover on annual basis is also less than 10 Million pounds.
Characteristics:
 There are less than 50 employees in the business and are larger in size than micro
business.
 Their turnover as less than approximately 10,000,000 pounds
Example:
 Medium enterprises- These businesses are bigger than micro and small business entities
but smaller than the large organizations as their number of employees is less than 250 but
more than 50 employees. The annual turnover is mainly less than 50 million pounds.
Characteristics:
 These businesses are smaller than large but bigger than small and micro businesses as
they have 50 to 250 ranged workforce.
 The annual turnover for these enterprises is approximately less than 50 million pounds
(Shaqiri and Ceku, 2019).
Example:
 Large businesses- It includes those entities whose annual turnover is more than 50
million pounds and they comprises of more than 250 numbers of employees.
Characteristics:
 These are the large enterprises whose number of workforces are more than 250 in
number.
 The annual turnover of this enterprise is more than 50,000,000 pounds.
Example: Marks and Spencer