Business Organizations: Types, Size, and Scope in the UK

This essay explores the diverse landscape of business organizations in the United Kingdom, examining different types such as profit-earning, not-for-profit, and non-governmental organizations. It delves into the distinctions between micro, small, medium, and large enterprises, analyzing how their structure, size, and scope influence their business objectives, products, and services. The essay uses real-world examples like Tesco, BrewDog, and UK Aid Direct to illustrate these concepts.

BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
LO1..................................................................................................................................................3
Introduction......................................................................................................................................3
(P1) Different types of organizations..........................................................................................3
(P2) Size and scope of the organizations....................................................................................5
M1: To achieve M1 you are required to develop your response to P1 and P2 by analyzing how
the structure, size and scope of different organizations link to the business objectives and
product and services offered by the organization........................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

LO1
Introduction
The essay will discuss and attempt to communicate on various business organizations that
function in the business environment of the United Kingdom. The various types of organizations
can be termed as profit earning, not for profit and non government organizations. Further the
difference between micro, small, medium and large scale business enterprises will be discussed.
(P1) Different types of organizations.
A Business Environment consists of various organization profits earning, not for profit and non-
government organizations. The discussion on these is as under:
Profit Earning Organizations
These business enterprises are set up by individuals or group of individuals with the main motive
to earn profits over the revenues by indulging into selling goods and services. There are various
organizations that are working in the business environment of the United Kingdom as profit
earning enterprises. These business organizations produce and sell goods and services to achieve
the desired sets of goals and objectives. The example for this type of organization is Tesco. It is a
supermarket chain with expansion of business and trading operations in various parts of the
globe including the United Kingdom. The purpose of this organization is to deal in dairy,
confectionary, consumer goods, liquor, fresh products etc. The organization aims to provide with
better and high quality products and services to its loyal consumers, better business environment
for the communities, increased and growing business opportunities for its shareholders. The
organization is aiming at developing highly valued business products and services (Beck, et. al.,
2016). The business of Tesco in the United Kingdom is dealing in online groceries on large
scale, home ware and electrical appliances along with clothing for men, women and children.
The core purpose or mission of Tesco is to serve the consumers, society, colleagues and business
stakeholders and shareholders with better services regularly and every day.

Not for Profit Organization
Not for profit organizations are the business enterprises that do not account for private profit
raising and sharing for the directors, members and the shareholders. These organizations
basically functions as charitable organizations, communities, or social enterprises. These
organizations share the excess of revenues in the terms of profit for the development and growth
of the business itself. These business enterprises do not have any particular legal responsibilities
and they are indulged into economic activities. The surplus of funds is applied towards the goals
and purpose of the organizations. The example for not for profit organization in the United
Kingdom is UK Aid Direct, the purpose of this organization is to provide small and medium
sized civil societies based in the geographical boundaries of the UK and overseas countries to
attain sustained poverty reduction and eradication in the root levels (Armstrong and Taylor,
2014). The aim is to provide and fetch for sustainable growth development. The purpose of this
organization is to strengthen the global peace and harmony in the various civil societies. The
basic aim is to achieve global goals and promotion of global prosperity for the civil societies.
Non Governmental Organizations
Non government organizations are the organizations established by the legal persons but these
are not a part of the government or associated authorities. The organizations are task oriented and
function for not earning profits or excess of revenues. These organizations perform a variety of
services and humanitarian obligations in order to bring the concern of the citizen and the
localities to the government (Burrell and Morgan, 2017). The example of NGO in the UK is
Action against Hunger, this organization functions to fight against malnutrition and hunger
majorly for children. The purpose of this organization is to provide with clean water, food and
social health care services for various communities and societies in the United Kingdom and
communities overseas.

(P2) Size and scope of the organizations.
The business environment consists of various types of organizations based on their size and
scope. These can be defined and distinguished as the micro, small, medium and large scale
business enterprises. These organizations can be distinguished as below:
Micro Enterprises are business enterprises that are basically managed and owned by one or two
individuals. These enterprises function in business services and products to earn minimal profit
and achieve the revenue over expenditures. These do not earn greater profits and revenues. The
market and profit share for these organizations is minimal with lower scope for growth and
sustainability. Small Enterprises are organizations having total members less than 100. The
organizations function with less products and services available to the consumers. These
organizations profit share of these organizations is larger than the micro organizations but still
lays towards minimal growth and sustainability, for example Worthenshaws Ltd. (Denhardt and
Catlaw, 2014). Medium Enterprises consist of members more than 100. These organizations
provide various types of products and services to its consumers. The market share of these
organizations is growing increasingly in the business environment of the UK. These medium
business enterprises have greater profit share and have increased opportunities towards growth
and sustainability, for example BrewDog. Large Enterprises are the organizations that are
classified as private or public sector organizations. These business enterprises may function in
more than one country and business communities (Armstrong and Taylor, 2014). The market and
profit share of these organizations is the highest as compared to other business organizations.
These are provided with ample growth and sustainability opportunities in the home and global
business environment, for example Tesco.

M1: To achieve M1 you are required to develop your response to P1 and P2 by analyzing
how the structure, size and scope of different organizations link to the business objectives
and product and services offered by the organization.
The structure, size and scope of the different organizations highly impact the business objectives
along with the products and services. For the large scale organizations like the Tesco are able to
achieve higher levels of goals and objectives due to their structure, size and scope of the
business. These organizations are able to provide with numerous products and services due to
their nature and scope of business activities and operations. These organizations also earn higher
levels of profits and revenues as they operate in various kinds of products and services. Similarly
the medium and small scale business like the Worthenshaws Ltd. and BrewDog earn lesser
profits and revenues due to the reduced areas and scope of business and trading activities (Tran
and Tian, 2013). These organizations do not function and operate their business in more than one
business environment which restricts and hinder the increased revenues and scope of the
business. Thus the scope, size and structure of the organizations are linked to the objectives,
products and services.

Conclusion
From the above discussion it can be concluded that the business environment of the United
Kingdom consists of various types of business enterprises. The goals and objectives of these
organizations are highly linked with the scope, size and structure of the business enterprises. The
essay has identified Tesco as a large scale business enterprise and the Brewdog as a medium
scale business enterprise.

References
 Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource
management practice. Kogan Page Publishers. Beck, M.J., Francis, J.R. and Gunn, J.L., 2016. Public Company Audits and City‐Specific
Labor Characteristics. Contemporary Accounting Research.
 Denhardt, R.B. and Catlaw, T.J., 2014. Theories of public organization. Cengage
learning.
 Tran, Q., and Tian, Y., 2013. Organizational Structure: Influencing Factors and Impact
on a Firm, American Journal of Industrial and Business Management, Vol. 3, pp. 229-
236.