Types of Business Structures and Their Impact on Productivity

Business in Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1Section 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
2Section 3.........................................................................................................................................7
1Identify different organisational structures and explain how organisational structure affects
business productivity. ................................................................................................................7
2Using PESTLE analysis explain how different external factors affect the performance of a
business. .....................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
There are different types of companies a business person analyse before they start any
type of business. Through this they plan their business strategy that what will be the best
business structure for them. They can be a officer in the organisation or they can think of being a
sole proprietor. Before planning to start a new business the entrepreneur has to consider various
organisation structures (Dixit, Sigala,and Robinson, 2019). The various companies that an
analyst considers are Sole proprietorship, corporations, partnership and so on. Any structure
which a person chooses has some benefits but it should be suitable for that company. The below
analysis is based on COCA-COLA. It is the multinational food beverage company and have
interest in retailing and manufacturing. It is considered as the largest producer of plastic waste.
The logo, design and image of the brand is recognised by everyone.
MAIN BODY
1Section 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
Micro Business:-
It is the small business that have 1-10 employees. The home based business or if there are sole
proprietors then they considers micro business. There are some characterstics of this business
enterprise:-
 In micro business the organisation is handled by the single owner only.
 Micro business is done on small scale so the revenue is also generated less though it does
not depend on their profit (Brennan, Canning, and McDowell, 2020). The business will
be profitable even if it is at micro level.
 In this it is fully run by smaller team. There are not much employees to handle business.
 It is not operating at different locations whether state of different country.
 They focus only on single product
There are some examples of Micro business:-
 Canteen businesses
 Vegetables busniess
 Grocery outlets

 photo edititing and so on
Small Business:-
It is the type of business which is owned in the form of being a sole-propreitor, or partnerships.
There are not much employees for handling the organisation. There can be 20 employees till 50
persons. There are different characterstics for small business:
 In small business everything is handled by the owner only as a sole proprietor
 It has limited reach and is not located across different states or country (Buppert, 2020).
 The use of technology is much as everuthing is done by the present employee only.
There are some examples of Small business:
 Cafe pod coffee
 Love the sales.com
 Imaginera
 Cafes
Medium size business:-
The medium size business have upto 200-250 employees and maintains a record related to their
financial decisions. They may also function in high growth makets with better potential. There
are various characterstics of medium business:
 The financial structure is maintained by in house professionals.
 Proper record is maintained in this type of business.
 They may work high organisations also.
There are some examples of medium sized business:
 Manufacturing of furnitures
 Making of paper bags
 Textile printing
Large size busines:
A large size business has upto 1000 employees. They estabilish their not only within one country
but at international level (Sigala, and Robinson, 2018). There are many characterstics of a large
size firm:
 There is modification of power between owner and the manager of the company.
 It is followed both from a domestic level as well as at international level.
 The value of assets are related to that of their turnover.