Business Structures, Productivity, and PESTLE Analysis Report

This report provides a comprehensive overview of different types of companies, including micro, small, medium, and large businesses, along with their characteristics and examples. It delves into various organizational structures such as sole proprietorships, partnerships, limited liability businesses, public limited liability businesses, and cooperatives, explaining their features. The report further explores the impact of organizational structure on business productivity, highlighting how a well-defined structure enhances employee satisfaction, goal achievement, and production capacity. Finally, it employs PESTLE analysis to illustrate how political, economic, social, technological, legal, and environmental factors affect business performance. The report uses examples and provides definitions to explain the concepts.

Types of Companies

INTRODUCTION
Organizations are those kind of legal entities which are been used for conducting of
various kinds of activities existing within it. Also organization is related to those business
opportunities which has been formed in order to make sure that sustainability if attained within
market. In other words organization is that kind of commercial enterprises which makes
activities carried in proper manner. They are required over following laws which is related to
business. Organizations is mainly focused upon achieving of common goals and objectives
which is related to business. Scope of these organizations is wider in nature as they cover various
aspects of business. Nature is dynamic as they make target achieved in more effective way.
Further the file cover about micro, small and medium business organization. Then in this
organizational structure is maintained. In the end PESTLE is been done.
TASK
Section 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
Micro businesses: This is the term that is been used for those organization which are
working at small level or less employees work within it. These enterprises operates with few
employees which is 10 but less then 50. Micro organization majorly works with less persons and
employees. They operate in the area they have been operating with relating in selling of good
and services in particular area they have established themselves. Some important aspect of these
organization are as follows:
 Under this organization only small number of employees works within it which are less
then 10 persons (Itoh, et. al., 2017).
 Funds arranged for these kind of organization is in micro form or through self investment
or money arranged.
 These businesses help improve the quality of life for people in developing countries, and
generally provide a good or service in their communities.
Example of these organizations are bakery, grocery stores and dairy product selling shops.
There are certain characteristic tics which is been possessed by such organization that has been
explained as follows:

1. Willing to Take a Risk
These are newly base organizations which has been set up by small business owners
which indicates that they are able to take risk in order to make its establishment within market.
They are able to spot various opportunities within market by opening way for growth.
2. Driven to Succeed
Through ideologies and business skills these business makes fast establishment of there
processes within an organization. Also they are able to attract customers which pave there way
towards success.
3. Focused on Achieving Goals
As they are new that is why they are required over focusing upon goals and objectives
that is been set by them. This makes them attain profitability and makes short, medium and long
terms goals achieved through making constant progress attained.
4. Confident, Enthusiastic, and Passionate
Successful small business owners are good at inspiring those around them whether that is
clients, employees, business partners, suppliers, or family members. This requires confidence,
enthusiasm, and passion (Hicks, 2020).
Medium business organizations: These are those organizations which has been defining
as those organizations which has more than 50 employees but less than 1000 working within an
organization. Such organization is been developed within market for performing of various
functions like selling of its products not only in local areas but to other areas for expansion of
business. In the various kinds of traits are there which are annual sales, number of employees,
amount of assess owned by organization and also future sustainability is been seen of such
organization. For example hotel, rental houses and departmental stores. There are certain
characteristics which is been possessed by them and they are as follows.
1. Favours flexibility and innovation
These organization makes process and innovation produced within its various processes
which makes objectives and goals achieved in more effective manner. As there main focus is
upon improvizing of its products which makes it attain sustainability within market. Also it helsp
in enhancing production capacity of an organization.

2. Creates a more competitive and healthier economy
These organization makes competitive environment attained within market which makes
them improvisation within product, prices and efficiency improved. This characteristics develop
medium scale enterprises in more efficient manner.
Large Business organizations: These are those kinds of organization which has
employees more than 1000 and operates at large level. Such organization holds tendency to
impact all kinds of activities going on in an economy. For example factories, industries and
production units. There are certain characteristics which is been possessed by these organizations
and they have been explained as follows:
1. Effective Sharing of Goals
This is one of the most affective from of characteristics that is been possessed by these
organization, Being larger organization they makes various kinds of efforts made which makes
broader perspective developed over both vision and mission of an organization. Through making
goals achieved with more effectiveness attained (Davidson et. al., 2017).
2. Great Teamwork
In this kind of characteristics task is been completed with more effectiveness. This makes
coordination developed within employees which makes team perform in more efficient way.
Large scale organization employees and managers readily offer their assistance to each other to
meet corporate objectives.
3. High Employee Morale
Large organizations leaders hold responsibility over keeping there employee motivated to
certain extent so that they work with more efficiency. Leaders requires to perform various kinds
of things which makes success attained.
4. Offers Training Opportunities
This characteristics makes organization provide various kinds of facilities in relation to
training and development of skills within its employees. This makes opportunities created for
employees work in more efficient manner.
5. Strong Leadership
Under these organization making them attain sustainability which is possible because of
strong leadership. Leadership should be effective as it makes employees attain trust over

organization. So, leaders are require to use approaches which provide guidance to its employees
in more appropriate manner.
Section 2
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative.
Sole proprietorship: In this kind of business organization there is only one owner that
makes business tuning possible. The owner of business pay tax in the form of income tax and
profit that is earned and kept by owner it self. Characteristics that is been possessed by an sole
proprietor are been explained as follows:
 Sole proprietor is an unincorporated business which is been rung by single owners.
 Tax is been paid in form of personal tax(Chen and Song, 2019)
 This is one of the most easily formed business which lacks involvement of government
within it
 Documentation is not required
 Profit earned is been kept by owner of the business with them.
Partnership: This is that kind of formal agreement that is been formed between two or
more than two parties who share profit with each other. There are different kinds of partnership
business which is been formed. Also partners of an organization share profit and loss with each
other. Various charateristics possesed by them that has been explained as follows:
 A partnership is an arrangement between two or more people to oversee business
operations and share its profits and liabilities.
 In a general partnership company, all members share both profits and liabilities.
 Professionals like doctors and lawyers often form a limited liability partnership.
Limited liability: These are those kind of organization within which corporate loss
should not exceed the amount that has been invested by partners. In this private assets are not at
risk if debt has not been paid by an organization. There are various kinds of characteristics that is
been possesed by these organizations and has been explained as follows:
 These companies make legal structure of an organization formed over assets invested
within it. Its done to recover loss which protects personal assets.

 Limited liability makes investor be more reluctant which makes equity of ownership
attained within a firm
 Several limited liability structures exist, such as limited liability partnerships (LPs and
LLPs), limited liability companies (LLCs), and corporations
Public organization: These are those organizations which has PLC within there name and sells
its shares to public. Various characteristics has been explained as follows:
All kind of organization which are of these nature has multi pal owners which makes
investment criteria to be fulfilled.
 These organization profit and loss is sustained which makes stability achieved within an
organization.
Section 3
Identify different organisational structures and explain how organisational structure affects
business productivity.
An organizational structure is that kind of process which makes outlining of various
activities that is related to business and makes goals with objectives achieved in more effective
manner. This makes determination over flow of information within the level of an organization.
It is understood with the help of this example that is it impacts centralized structure, decision
flow form top to bottom in more easy and secured manner (Bordoloi, Fitzsimmons and
Fitzsimmons, 2019). Under this various kinds of decision is been taken in more effective way
which enhances process of business. Business of all shape and sizes requires over developing of
organizational structure in more positive manner. This makes processes developed within
organization in smooth and effective manner. Strong organizational structure makes business
conducted in proper manner. It makes employee's develop interest within there job and makes
overall system get connected with each other. Such kind of organizational structure outlines
various kind of things which impacts business productivit and has been explained as follows:
 Successful organization structure make employee's develop proper structure which makes
job satisfaction to be achieved.

 In this productivity is been achieved as it main focus is upon achieving of goal by
keeping in mind mission and vision of an organization.
 This makes centralized structure formed which makes production capacity enhanced with
more effectiveness.
Using PESTLE analysis explain how different external factors affect the performance of a
business.
PESTLE Analysis : This is that kind of tool which has been used in managing of factors
which impacts an organizations external factors. These factors mainly deals upon influencing
operations which increases more competitiveness. It mainly deals upon political, economical,
environmental, social and technical factors. This is one of most effective tool which is been used
for developing an organization. Further it has been explained as follows:
Political factor: These factor is related over changes that is been done by government in policies
presently formed. Such factors makes various aspects in business impacted which affects growth
of business. An organization gets impacted from policies change in a way that improving of
policies in negative manner is going to impact selling of products done by an organization
(Batista, et. al., 2018).
Economical factor: Such factor is based upon import and export rates, inflation, rescission.
These factors affects organizations capacity to earn profit. If export prices increase then over all
profit generation is been impacted of an organization.
Social factor: The factor is related to taste and preferences which is developing within an society
among customers. It makes an organization understand about customers demand which makes
business expansion possible.
Technological factor: They deal with technological changes taking place within an organization.
This helps in increasing production capacity of an organization which enhances supply chain
process in more effective manner.
Legal factor: This factor deal with all kinds laws which is related to an organization. It helps in
solving of legal issues within and protect from legal problems.
Environmental factor: This helps an organization in creating environmental awareness that
makes customers attraction possible in faster manner.

CONCLUSION
From the above discussion it is clear that an organization is that kind of process which
makes economic transaction occur in relation to selling of products. Further file covers about
various sectors of businesses and organizations. Then in the end PESTEL is been covered with
organizational structure.

REFERENCES
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