Business in Practice: Understanding Business Sizes and Structures

This report, titled "Business in Practice (Part 1)", explores various business sizes and organizational structures. It begins with an introduction highlighting the importance of business in generating revenue and growth, using Sainsbury's as an example. The core of the report focuses on defining and differentiating micro, small, medium, and large businesses, detailing their characteristics such as the number of employees, annual turnover, and ownership structures. Each business type is illustrated with examples like Boss Brewing company, Broadsword Event house, The Verdant leisure, and Marks and Spencer. The report concludes by summarizing the key differences between the business types and referencing the hierarchical organizational structure of Sainsbury. References from academic sources are included to support the analysis.

Business in Practice
(PART 1)

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
Definition, characteristics and example of micro business, small business, medium size
business and large size business.............................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business comprises of the important method through which all the organisation there by
increase there growth of the company and also increase the revenue by managing the
productivity in the market. All the profit is being generated by the person through the methods
like certain business set up(Rendtorff, 2019). The organisation chosen for this report is
Sainsbury, it is the biggest supermarket sector which deals with all the groceries and also the
home essentials and various retailing items. This report will cover the PESTLE analysis and all
the external environment factors.
SECTION 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business
As the person will have to earn the profit they will have to try and frame all the business
activities that are being used in order to earn profit and gain various areas and means through
which certain natures and the accords can be maintained will be covered in business. The
business can be small, micro, medium and large. The main aim of the business is to earn the
profit and increase the profitability of all the important areas and segments by increasing the
production.
Micro size Business
In such business practise there will be allowed only 0 to 9 employees in the working
areas. And the usual annual turnover of such business will be amount to £2 million. They are the
low investment business and the funding that is being made in such business tends to be low as
well(Kato and Charoenrat, 2018).
Characteristics
 This type of business is being set out in low scale areas with all the low market segments.

 The employees working in the company will be comparatively low as that of other
employees and that also tends out like 0 to 9 employees. The revenue generation is low and with that the target market segment of the company is
also low as compared to the other market segments.
Example for such micro business are the Boss Brewing company.
Small size business
When the employee being working in the company will be like 10-49 then such kind of
business bring handled will be small size business and the turnover that is being expected in the
company is £10 million(Andreini and Bettinelli, 2017).
Characteristics
 Such business are being used and handled by the single owner as this business tends be
handled by the single owner and they tends to manage the business in a proper manner.
 The sole proprietor carries out the low investment of the company and there will be
framed all the responsibility of this business in accord manner. The low funding and the limited investment is being carried out in such business practise.
Example of such business are Broadsword Event house.
Medium size business
In such business there are mainly the large market share and all the capital market share
is being covered in it there will be large investment in such companies. and there are about 50-
250 employees working in the business and the usual net turnover in the company is £50
million.
Characteristics
 the company is being ran by various owner as there has been practised that there are more
than one owner of the company.
 This kind of business comprise of the large investment and a;so conducts the business
practises (Ammar and Chereau, 2018). There are business which are being maintained and expanded in all the areas , as such
business practises can be conducted in all the nature and in different areas and cities in
order to increase the production.
For example The Verdant leisure is the large scale company and this is being expanded in
various areas.

Large size business
It is the international business that is being expanded globally in all the various areas. The
number of employees being working in the company will be more then 250 and the net turnover
that is being decided by them amounts to £50 million. Such business usually covers the large
areas and are expanded in al,l the areas that are possible.
Characteristics
 there are numerous of owners that are being working in the company. As been analysed
all the owners has been framed and there in order to run a proper business the owners will
be working as the partners (Grosser, McCarthy and Kilgour, 2017).
 As in such companies the investment is merely high then all so they tends to cover and
take the investment from all the equity and the funds for the investment and development. The global expansion of the company is being analysed in all the areas.
Example Marks and Spencer is the multinational company which covers there market expansion
globally.
Basis Micro Small Medium Large
The number of
employees
working under
0-9 Between 10 to 49 Between 50- 250 More than 250
Annual turnover
of the company
2 million euros 10 million euros 50 million euros Above 50 million
euros

CONCLUSION
It is concluded from the above report that, business plays an important role for the growth
of the company as it helps out to generate the revenue and with that maintain the growth of the
various segments too. There are mainly varies types of business which considers to be small,
micro, large and medium and they are being ran by the partners, sole proprietor and so on. The
organisational structure that is being followed by Sainsbury is Hierarchical as there is a control
of the higher authority on the lower one.

REFERENCES
Rendtorff, J.D., 2019. The concept of business legitimacy: Corporate social responsibility,
corporate citizenship, corporate governance as essential elements of ethical business
legitimacy. In Responsibility and Governance (pp. 45-60). Springer, Singapore.
Kato, M. and Charoenrat, T., 2018. Business continuity management of small and medium sized
enterprises: Evidence from Thailand. International journal of disaster risk
reduction, 27, pp.577-587.
Andreini, D. and Bettinelli, C., 2017. Business Model Definition and Boundaries. In Business
Model Innovation (pp. 25-53). Springer, Cham.
Ammar, O. and Chereau, P., 2018. Business model innovation from the strategic posture
perspective. European Business Review.
Grosser, K., McCarthy, L. and Kilgour, M.A. eds., 2017. Gender equality and responsible
business: Expanding CSR horizons. Routledge.
.