Types of Businesses and Organizational Structures: A Report on Sainsbury

Individual Report

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 of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative........................................................5
SECTION 3......................................................................................................................................7
Identify different organisational structures and explain how organisational structure affects
business productivity. ................................................................................................................7
Using PESTLE analysis explain how different external factors affect the performance of a
business. .....................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Businesses are generally industrial, commercial or professional in nature. The sole
motive of the business is to earn profit and generate maximum revenue. It contributes to the
economy by offering its product or service to the large public. There are different kinds of
business which can be categorised on the basis of either size or form (Steyn, 2020). The external
environment plays a major role in the running of business as it affect the business from the
macro factors. The organisation chosen for this report is Sainsbury, leading company in
supermarkets with its business operating globally. This report shall deal with the types of
business on the basis of size and form and further it will deal with different organisational
structures and PESTEL analysis for analysing the macro factors which affect the business.
MAIN BODY
Section 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business
The businesses can be classified on the basis of size which includes micro, small,
medium and large sized enterprises. These are explained as under-
Micro Sized Businesses
These businesses involve 0-9 employees only and operate at micro level and has a
turnover under 2 million euros.
Characteristics-
 These involve low investment for starting up the business.
 The owner handles the day to day operations of the business and is solely responsible. All income and profits belong to the owner.
Example- Issoria
Small Sized Businesses
These businesses engage 10- 49 employees in their functioning and operate in small
smart. They have a turnover under 10 million euros.
Characteristics-
 These businesses are generally preferred by the sole proprietor or partnership.
 It involves small investment for establishing the business.

 The turnover ranges under 10 million euros.
Example- Imagineria
Medium Sized Businesses
These businesses involve 50-250 employees who contribute to the achievement of
organisational goals. The turnover of these businesses are under 50 million euros.
Characteristics-
 These businesses have big market share to offer their offerings.
 It involves big investment for starting up the enterprise (Smirnova, 2019). These expand their business in other locations.
Example- Verdant leisure
Large Sized Businesses
These businesses involve more than 250 employees who mutually contribute in the
success of the company. The turnover of these businesses are more than 250 million euros.
Characteristics
 These business involve large investment from both equity and debt.
 It focuses on larger market capture to offer their product or service. It has usually expanded its business globally to reach large market share.
Example- Tesco
Basis Micro Small Medium Large
Number of
employees
0- 9 Between 10 to 49 50- 250 More than 250
Turnover Less than 2
million euros
Less than 10
million euros
Less than 50
million euros
More than 50
million euros
Investment Very low or little Low investment Large investment Huge investment