This document provides an overview of different types of businesses, including micro, small, medium, and large size businesses. It also discusses various organizational structures and the impact of external factors on business performance, using PESTLE analysis. The document offers study material and solved assignments on Desklib.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Business in Practice
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of 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 for the sole trader business, partnership, limited liability business, public limited liability business and Cooperative.........................................5 Using PESTLE analysis explain how different external factors affect the performance of a business.......................................................................................................................................6 CONCLUSION...............................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Business comprises of all the required elements through which they can increase the growth of the company and also generate the higher level of revenue by emphasising on the productivity of the business(Klun and Trkman,2018).It is important for every organisation have the direct focus on the external environment so that they can take the corrective decision in order to handle them. There are various types of organisation which will discussed in this report. Thisreport will cover the PESTLE analysisand the factorsthatis impactthe external environment. MAIN BODY SECTION 1 Definition, characteristics and example of micro business, small business, medium size business and large size business. There are various business activities which is being frame in order to followed by an individual so that they can generate the sufficient revenue in order to establish strong brand image in the market. A business can be small, medium and large. The main consideration of there is to generate the high profits by increasing their production.Various types of business is explained as follows: Micro size business In these types of business, there are minimum 0-9 employeeare working in their respective department and they are operating their business in low investment and the funding of such organisation is tends to low(Kato and Charoenrat,2018).The annual revenue of such business is amounted to £2 million. Characteristics These organisation run their business operation with the few number of employees as the small level of their business. These types of business conduct their operations in small areas with small market segment. These are the business which generates lower level of revenue with their target market and having limited product line. Example-Small brewing company.
Small size business These are the type of business which is working with minimum 10-49 employees and being operated by the small entrepreneurs and generates the revenue amounted£10 million. Characteristics These are the firms which is solely operated by the single owner and individual is only responsible for all the profits and looses. The sole proprietor handle the whole operation with the few investment and all the responsibilities will be framed in the systematic manner. There are low funding in such firms as they operating their business on small market segment. Example-Broadsword Events House Medium size business These are the business which operate their business operations in the large market share. All the capital market share is being covered in it and there will be large investment in such companies so that they can perform the(Drucker, 2017).They perform their business operations with minimum 50-250 employees and generate the annual turnover of £50 million. Characteristics This is a type of company which is operating their business by the many owner and they have adopted their business strategy in an accordance manner. These type of business work with the sufficient investment and run their operation in an appropriate manner. Example-Verdant Leisure Large size business These are the multinational companies which operation their business in different level across the globe. The number of employees which are being working are more than 250 and the annual turnover the such organization amounted to £50 million.Such business operate their business on large market segment. Characteristics There are large number of employees which are utilizing their skills and knowledge in order to get the work done in an appropriate manner. They are operating their business in the large market segment in different regions.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
There are numb-ours owner who are working together in order to get the objectivity of the business and framed the several polices and strength accordingly so that they can work in an right direction. Example-Morrisons is the multinational company which covers there market expansion globally. BasisMicroSmallMediumLarge Thenumberof employees working under 0-9Between 10 to 49Between 50- 250More than 250 Annual turnover2 million euros10 million euros50 million eurosAbove 50 million euros SECTION 2 Definition, characteristics and example for the sole trader business, partnership, limited liability business, public limited liability business and Cooperative. Organisational structure is defined as the direction in which all the operation is moving in accordance to complete their particular task in an appropriate manner by which they can establish a good brand image in t he market. It is analysed that all the structure and the method which are used in the working is being framed in it. Every organisation use the different organisational structure in order to make the effective use of each resources. Various type of organisational structure is explained as follows:Hierarchical organisational structure-t is a type of structure in which all the employees is known with their authority and accountability that whom they have to report and who will solve their related queries(Di Gregorio,2017).It is a pyramid shape structure that posses from top level management to lower level management. Each employees is familiar with the roles and responsibilities in order to complete the specific task. Sainsbury is using this structure as it give the strict code of conduct in order to perform the various operations in an appropriate manner so that they can attain the objective in an effective manner.Flat organisational structure-This is the organisational structure in which fits in the organisation which is having fewer level between upper management and staff-level
employees. Many start-up is performing their business in an efficient manner by using this organisational structure. It give the effective team work within the organisation so that they can make the best use of their resources in order to attain the organisational goal. Amazon is using the this structure as it gives more responsibilities to their potential employees who can perform their business operation in an systematic manner.Divisional organisational structure-It is the structure in which they are concerning about the divisions having complete control over the various aspect of the business and ensure their effective working with the accordance of attaining the objectivity of the business. Each divisional have their own marketing team, sales team, IT team etc. This structure will best suit in large organisation where all the department is having large pool of work. McDonals's is using this structure as it is a large organisation that is having various operations in different departments. Functional organisational structure-It is the structure which is similar to hierarchical structure in which all the responsibilities starts with the top level management and they give the authoritiesto their manger in order to complete the specific task in an appropriate manner with the consideration of attaining the organisational(Ben Youssef and et. al., 2018).In this, employees are being organised on the basis of their skills and capabilities so that they can perform their given tasks in a approached manner and all the department is managed independently. Starbucks is using this structure so that they can get the effective results in each department with the proper supervision of their respective manager. It is analysed from the above discussion that each organisational structure have the specific importance in which they are making the right use of each resources and every organisation is using the suitable organisational structure accordingly. Using PESTLE analysis explain how different external factors affect the performance of a business. PESTLE analysis the frame work of evaluating the macro factors in the business environment so that they can identify the necessary measure in order to cope up with the several challenges. It is analysed theta there are various areas or the department which is affected by the external environment so it is necessary to have the complete information about the various factors of macro environment that is explained as follows:
Political-these are the factors which includes the government stability, corruption, foreign trade policy, tax policy etc. Morrisons is facing the major impact of Brexit that leads to certain change in the rules and polices of the UK and the changing legislation for the food retailers has imposed the huge impact on the smooth running of the business. On other hand there is a positive impact on the company as the there is stable government in the UK so that company can run their business in a sustainable approach.Economic-These are the factors which includes the inflation rate, import and export duties, interest rates, disposable income of the consumer etc.(Ashton, Russell and Futch, 2017).Due to the impact of Brexit, there is a major fluctuations in currency and created the inflation across the country so that Morrisons is facing reducing n their production. There is hike in the oil price so that they are facing the huge impact on the consumer budge by which the company is facing the loss I their revenue.As the increasing price of the oil leads to reduce the productivity of the business by which the economic condition of the UK get slow done.Social-these are the factors which includes the cultural trends, values, norms, age distribution, career attitudes, safety emphasis etc. There is a increasing age population offers various business opportunities for the Morrisons and the growing eduction and the health of the consumer help the company to operate their business in an efficiency manner so that they can make the best use of their resources and generate higher revenue and profitability.Technological-These are the factors which includes the change in the technology or the automation imposed within the organisation in order to launch the innovative or advance products. Investment in the technology will help the company to make the effective use of their resources and make responsive to their potential customers(Ammar and Chereau, 2018).They can serve their customer in a better way formulating the digital data of emerging trends in the market by which UK can move towards digitalization. On other hand, innovative technique leads to increase the production cost by which the prices of the product get high and consumer will decrease the demand for the products and servcies.Legal-These are the factors which includes the discrimination laws, employment laws, health and safety law etc. Morrisons is running their business by apply a food safety and
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
legal standard like FSA targets so that all the operations can be run in lawful manner. They are having the policies and legal guidelines to support the various legislation so that they can build a good brand image in the UK market. On other hand, the legislation varies form country to country and it is not possible to follow each law and of that company is facing legal action against them. Environmental-These are the factors which includes the ecological and environmental aspect such as climate change and the impact of industries like farming, agriculture etc. Morrisons is running their business with the consideration of saving the environment by doing CSR activity and Zero waste was directed landfill in the manufacturing sites. They are also offering the plastic free fruit and vegetable options. This helps in saving the enviroment and establish a ecological balance in UK. CONCLUSION It is concluded from the above report that there are various types of business which is operating their function on small, medium and large scale ans the core objective is to generate higher level of revenue and profitability in order to establish good brand image in the market. The organisational structure which is followed by the company is hierarchical in which all the employees is known with the duties and responsibilities in order to complete the specific task. It flows from top level management to lower level management. Moreover, there is a huge impact of external environment on the business as there is a positive impact of social and technological factor and there is a negative impact of political and legal factor on the business due to trade and tariff restrictions.
REFERENCES Books and Journals Ammar, O. and Chereau, P., 2018. Business model innovation from the strategic posture perspective.European Business Review. Ashton, W., Russell, S. and Futch, E., 2017. The adoption of green business practices among small US Midwestern manufacturing enterprises.Journal of environmental planning and management,60(12), pp.2133-2149. Ben Youssef and et. al., 2018. The importance of corporate social responsibility (CSR) for branding and business success in small and medium-sized enterprises (SME) in a business-to-distributor (B2D) context.Journal of Strategic Marketing,26(8), pp.723- 739. Di Gregorio, D., 2017. Place-based business models for resilient local economies.Journal of Enterprising Communities: People and Places in the Global Economy. Drucker, P.F., 2017.What Makes an Effective Executive (Harvard Business Review Classics). Harvard Business Review Press. Kato, M. and Charoenrat, T., 2018. Business continuity management of small and medium sized enterprises:EvidencefromThailand.Internationaljournalofdisasterrisk reduction,27, pp.577-587. Klun, M. and Trkman, P., 2018. Business process management–at the crossroads.Business Process Management Journal. Möller, K. and Halinen, A., 2018. IMP thinking and IMM: Co-creating value for business marketing.Industrial Marketing Management,69, pp.18-31. Neubaum, D.O., 2018. Family business research: Roads travelled and the search for unworn paths. Schneider,S.andClauß,T.,2020.Businessmodelsforsustainability:Choicesand consequences.Organization & Environment,33(3), pp.384-407.