Different Types of Business and Organisational Structures

BUSINESS IN
PRACTICE

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.....................................................................................................................................8
Identify different organisational structures and explain how organisational structure affects
business productivity...................................................................................................................8
Using PESTLE analysis explain how different external factors affect the performance of a
business........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business organisation is defined as an association that exists into market with purposes
which has to be achieve within pre-determined time period. It consists of different types of
businesses which includes micro, small, medium and large (Andrews and Nwapi, 2018). These
businesses follow different kinds of organisational structure according to their mission and
vision. To achieve long-term sustainability into competitive market, it is important for every
organisation to analyse macro-environmental factors through conducting PESTLE Analysis so
that corrective action can be properly implemented. The present assignment report is based on
River Island which is high street fashion brand operated worldwide. Its headquartered is located
in London, United Kingdom. The report discusses different types of business along with their
characteristics, Using of PESTLE Analysis and description of organisational structure that
organisations can adopt according to their pre-determined objectives.
MAIN BODY
SECTION 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
The main motive of the business is to earn the maximum profit and generate maximum
revenue for the global reach and growth in the market. There are different type of business, who
work for the society as well for their wale fare (Chan and et. al., 2016). There are different type
of organisation on the basis of their size type and product offered and these are as follows:
Micro Business
A micro enterprise is one which carries small business and can employ upto 9 members
and have turnover upto 2 million.
Characteristics:
 They generally cater to local or regional needs.
 They are managed by one person and is increasing to reap benefit of government
incentives.

 It require less funding in comparison to other ownership basis and fosters the creativity of
the person.
Example
boss brewing, Issoria and mantons card etc.
Small business
The small sized business is the business which has few employees and less turnover as
compared to the large or regular sized business. In each country the definition of term 'small'
differs in government notations. The meaning also differs from every industry to industry in
respect to employees and turnover (Chión, Charles and Morales, 2019).
Characteristics
 The small scale is defined broadly as having 10 to 50 employees and annual turnover
of €2 to 10 million.
 The structure and size of business is limited which ensures the effective and smooth
functioning of business.
 It fosters the entrepreneurial spirit of employees (Del Giudice and et. al., 2017).
 It is more preferred in sole proprietorship, limited liability and partnerships form.
Examples
Cafe Pod Coffee co, Broadsword Event House, Imaginera etc.
Medium Size Business
The medium sized business is referred to business with turnover of 50 million and
employee less than 250.
Characteristics:
 The Government offers incentives and rebates to increase this sector.
 Medium size enterprises play an important role in economy by fostering the
entrepreneurial state and giving employment to people (Gandhi, 2017).
 They have certain minimum limit to employ people and to earn that much profit.
Examples