Different Types of Business Organizations and Their Impact on Performance

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 a term, which describe how business will be executed and then
how these structure achieve the goal of the organisation. Generally, business is form to earn a
maximum profit or improving the society. (Balland, Belso-Martínez and Morrison, 2016). There
are many categories of businesses according to their sizes and can engage itself in
industrialization and in commercial business. Businessmen do such expansion to achieve the
goal of the organisation. The external environment also affects the operations of the business and
it must be evaluated for the proper functioning of the organisation. There are some opportunities
and threat for the organisation and company must evaluated those circumstances then work
according with the right measures. Marks & Spencer is the chosen organisation for this report. It
is the top leading retailer company in the world and home market in UK. Its headquarter is in
London, England. Product offered by the Marks & Spencer are clothes, home products and food
products. There are 959 stores in the UK. This report will covered the different types of business
on the basis of their size and analysis the various factor of the external environment.
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. There are different type of organisation on the
basis of their size type and product offered and these are as follows:
Micro size businesses
The organisation which have the number of employees less than 10 and these are
important part of US economy and It is the most common type of business in UK. Annual
turnover of such business is £2 million (Bender, S. and et. al., 2018)

Characteristics of micro business-
 These type of business work with lesser employees.
 There is a limited target market by the business.
 Annual revenue of these businesses are low.
Example- The Tidy Desk Company
Small size businesses
These are the type of business, which work with 10-49 employees in organisation and
generates £10 million revenue from the operation.
Characteristics of small size business-
 These type of business that have single ownership, so it is known as the sole
proprietorship.
 These organisations have limited market reach and restricted to one area or local shops.
 These organisations are labour intensive. The use of technology is lesser in comparison to
labour force.
Example- Broadsword Event House
Medium size businesses
It is the organisation which work with the 50-250 labour force in the organisation. It
includes huge investment for establishment and serve large market with annual revenue of £50
million (.Brem,Nylund, Hitchen, 2017).
Characteristics of medium size business-
 It has more than one owner for the operation.
 These type of company require large investment.
 The market size for such businesses are large.
Example- Bonhill Group
Large size businesses
These are the businesses, who is involved in manufacturing and mining operation with
500 and more employees in the organisation. Its annual revenue is £50
million(.Briscoe,Gupta,2016.)
Characteristics of large size organisation-
 It is the organisation, which have large market segmentation.
 These businesses provide rich content to their customers.