Business in Practice: Types of Businesses, Organizational Structure, and External Factors

Business in practice

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Different types of Businesses.......................................................................................................3
Different types of companies.......................................................................................................5
Different organizational structure and affects in business productivity .....................................6
Analysis of external factors affecting the business performance.................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals....................................................................................................................10

INTRODUCTION
Business practices can be said as the ways for attempting business activities in the
most cost-efficient manner. This project will use examples to explain the different types
of businesses. With the help of example in this project the different types of companies
are understood. This project is used for the consideration of different business structure.
In this project Pestle analysis is used for understanding the external factors.
Main Body
Different types of Businesses
Micro Business:
A business that operates on a very small investment, requires less machineries
and has fewer number of employees in the company (less than five) can be termed as
micro business. Because of less cash and assets, micro businesses face difficulty in
getting loans as the traditional lenders does not lend such small amounts but they can
get loans from other small business administrations. The micro businesses generally
have simple operating structure but they operate in the same order as other businesses.
They cannot hire many employees because of their less financial capacity to pay
salaries. However, they are taxed as other businesses. Example of a micro business is
Boss Brewing Company (Hahn, Spieth and Ince, 2018).
Small Business:
A small business can be defined as a business which has limited capital
(generally up to 1 crore) and are mainly labour intensive. Generally, a sole
proprietorship or a partnership business can be termed as small business, where the
sole proprietor acts as the manager. They do not have a rigid working structure and the
there is more flexibility. Because of insufficient funds, the financial institutions refuse to
give them loans and the business faces obstacles like lack of professional
management, insufficiency to meet working and fixed capital requirements, outdated
technologies, old plant and equipment, poor advertising and after sale services and
more labour intensive workforce. They have little scope of growth and expansion as
compared to large businesses. Example of small business is Broadsword Event House.