Types of Business Organizations and Organizational Structure

Individual Report

Table of Contents
INTRODUCTION ..........................................................................................................................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 .....................................................................................................................................7
Organisational Structure .............................................................................................................7
How organisational structure affects business productivity........................................................8
Using PESTLE analysis explain how different external factors affect the performance of a
business. .....................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFRENCES.................................................................................................................................10
Books and Journal.....................................................................................................................10

INTRODUCTION
This report provided a brief examination on various types of organisation and details about their
characteristics and operations. It also gives a description about the types of organisational
structures followed by the organisations and how they impact on the performance and
productivity of the same. The report also involves Pestle analysis of Tesco in order to identify
how the factors and forces of the external environment can affect the operations of the company.
SECTION 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
Micro business
Micro business is type of business wherein the business offers products and services in order to
earn a living and does not profit much from the same. It incorporates 0-9 staff members at a time.
Characteristics
 These business does not have any scope for expansion and diversification.
 The marginal income of these business is very less in comparison to others.
Few example of Micro business are tea shops, coffee shops, cobbler etc.
Small business
Small business refers to a kind of organisation which carry out its operations at small
scale. It is a type of organisation that involves less capital and investment (Cappellino, 2020).
The small scale organisation utilises less human resources and technological resources in their
business operations.
Characteristics
 The management of small scale business is managed and controlled by the respective
owner of the organisation.
 Since these businesses operate at small level, they have high degree of flexibility and are
comfortable to dynamic environment.
 The market share of these organisations are relatively low as they have limited customer
reach.
Some of the examples of small scale business are as follows ; Salons, bakeries, stationeries etc.
Medium Scale Business