Types of Business Organizations and Organizational Structures

Project / Essay

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Definition, characteristics and example of micro business, small business, medium size
business and large size business. ...............................................................................................3
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative. ......................................................4
Identify different organisational structures and explain how organisational structure affects
business productivity...................................................................................................................6
Using PESTLE analysis explain how different external factors affect the performance of a
business.......................................................................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10
Books and Journal ....................................................................................................................10

INTRODUCTION
The selection of the appropriate type of business organisation is important in order to
further the operations pertaining to the initial stages of development of the business. The report
encompasses the various types and form of business organisations available in the organisation
and examine the characteristics of the same (Prathima and Sasibala, 2020) . It also highlights the
relationship between the organisational structure and productivity. The report also involves the
formulation of a Pestle analysis of Marks and Spencer in order to examine the impact of the
external environment on the same.
MAIN BODY
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
Micro Business
The micro business can be termed as the casual businesses that are established for the
survival purpose of the individuals. The micro business functions are similar to the small scale
businesses. Tuck shops, tea shops and shebeens are few of the examples of micro size
businesses.
Characteristics :-
 Single owner manages and controls the business in micro business units.
 There is very less scope and opportunity for expansion and development in micro scale
businesses. The revenue generation is extremely low in comparison to other types of business firms.
Small Business
It can be characterised as a business unit wherein productions and operations of the the
respective business is limited to a small scale as well. The proprietor of the business is entitled
to invest in the function of and execution of the business and procurement of all the required
resources for the facilitation of the business activities (Phan, 2021). The examples of small
business units are grocery shops, food corners, bakeries etc.
Characteristics:-
 The risk and liabilities associated with the business activities of small scale business is
relatively less as compared to other type of businesses.