Business Types: Characteristics, Structures, and PESTEL Analysis

This report provides a comprehensive overview of different types of businesses, including micro, small, medium, and large enterprises, as well as sole traders, partnerships, and various forms of limited liability companies and cooperatives. It outlines the characteristics of each business type and provides examples. The report further explores different organizational structures such as hierarchical, matrix, and functional structures, analyzing their impact on business productivity. Using Unilever as a case study, the report applies a PESTEL analysis to examine the external factors influencing the company, including political, economic, social, technological, legal, and environmental factors. The report concludes with a summary of findings and references supporting the analysis.

Types of companies

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Section 1...........................................................................................................................................1
Definition, characteristics and example of micro business, small business, medium size
business and large size business..................................................................................................1
Section 2...........................................................................................................................................3
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative........................................................3
Section 3...........................................................................................................................................4
Identify different organisational structures and explain how organisational structure affects
business productivity...................................................................................................................4
Use of PESTEL analysis on organisation...................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
There are different types of organisations that have different business structure and
follow different strategies in the market (Blanck, Ribeiro and Anzanello 2019). Every
organisation has their own structure where they can work in effective manner. In this these
report four types of organisation are involved such as micro business, small business, medium
size businesses and large size business. This report is based on Unilever, it is multinational
consumer goods organisation. Company is located in London England. Unilever's product
include baby foods, cheese, ice cream, coffee etc. this report include information about different
organisations and their different characteristics. Also it include information about sole trade to
corporative and limited liabilities partnership. Further, it include information about Different
organisational structure and how organisational structure affects business productivity. In the last
it include PESTEL analysis of the large organisation.
MAIN BODY
Section 1
Definition, characteristics and example of micro business, small business, medium size business
and large size business.
There are several kind of businesses in the market with different revenues and different capital
expenditure. Below are various types of businesses and their characteristics are explained:
Micro business: IT considers as a type of small business, micro businesses has fewer
employee than other organisations(Ferreira and Sousa 2020). They have employee less than 10
in one organisation, micro businesses handle by the single business owner and all the decision
making process is done by owner of organisation. The main motive of these businesses is to gain
better growth and profitability in the market. Boss Brewing Company is example of micro
business located in UK.
Characteristics:
 These businesses has smaller group of people in the organisation that works for the better
growth and stability in the market.
 Micro businesses usually does not have copyrights and tread mark for their business also
people know about these business from the local vendors or other small business people.
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Small business: These business are privately owned corporation that works with small
number of employees and less annual revenue then other businesses(Kolk, Rivera-Santos and
Rufín 2018). Small businesses has 15 employees that works for the better goal achievement of
the organisation. Small businesses in the country helps to increase the GDP rate and helps
consumers to have variety of product and services. Pure Planet is an example of small company
located in UK.
Characteristics of small business:
 These businesses use small areas of the market to gain effective growth and profit. They
focus on customer satisfaction that help in gain of customer loyalty.
 Small business use natural resources that helps their business to reduce operating cost.
 These business can take their decision making on immediate basis.
Medium business: These businesses has less than 250 employees in the company and
under the turn over of £12.9 million, the main aim of medium size businesses is to encourage
entrepreneurship, investment and growth. Verdant Leisure is the example of medium business in
UK.
Characteristics of Medium businesses:
 These businesses promotion entrepreneurship in the market with the innovation and
inventions in the business.
 They work for providing better services and quality product in the market.
 They work for the increasing brand awareness in the market.
Large business: This business works with highest revenues and growth in the market.
Large businesses has high employee turn over and they work in multinational
countries(Liang,and Liu 2018). Large businesses has string brand image that influence customers
to but product and services in the market. These businesses pay high income tax rates and helps
in the development of national economy. Unilever is the example of large business in the market.
Characteristics of large business:
 These businesses has high profitability and employee turn over in the market.
 They work for the growth and development of the company as well as country.
 The main motive of large business is to provide effective customer satisfaction with
quality product and services.
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Section 2
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative.
Sole trader businesses: It is a specific business where one individual run and manage the
whole business(MacLennan, Piña and Gibbons 2018). Sole trader is liable of for all kind of
aspects and decision making process in the market. They easily change their business structure
according to needs and wants, these businesses does not required any kind of business
documents and written contracts. These business involve general stores, beauty parlour, or any
other kind of small business.
Characteristics of sole tread businesses:
 These business owner has all the control in their hands if they want to shut down their
businesses they can do without any legal formalities.
 These business owner has their decision making process that helps them to understand
about various profits and loss they can earn or face in the future.
Partnership: It is a formal arrangement by two or more people that are willing to work
together, they are willing to operates their business in the form of partnership, and with the
motive of gain profitability. All the decision are taken by all the partners of the company in order
to gain maximum profit which will divide according to the profit share of the partners:
Characteristics of partnership:
 All the profit or loss has been share according to the profit share rate.
 There is a legal written document of the business, also there is an contract between the
partners which endorse by the law.
Limited liability business: This refer to the part of private limited company, this is the combine
structure of pass through taxation or sole partnership with the limited liability company.
Characteristics of limited liability:
 This business is flexible enough for the business partners and members whether they wan
to stay in the business or not.
 These businesses can own anything under the business.
Public limited liabilities: This companies are listed in the public sector organisations,
also classified as an shares that are publicly trade. The share of the organisation can easily sold
as well as traded public.
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Characteristics:
 the minimum capital required in these business is around £ 500000.
 Shares can easily transfer there is not any kind of restriction.
Corporative business:
This businesses refer to all the companies that are working in separate operation from the
government. There are three types of business classified under the corporation such as S
corporation, C corporation, and non profit corporation.
Characteristics:
 They have all the right to collect capital amount by selling stock.
Section 3
Identify different organisational structures and explain how organisational structure affects
business productivity.
In every organisation business follow different type of organisational structure that helps them to
gain effective productivity in the business( Morozko, Morozko and Didenko 2018).
Organisation structure assist businesses towards the better management of all the function. Also
it include various factors that helps in better proficiency of business in competitive market.
Below are various organisational structure that enhance effectiveness of the business and
proficiency.
Hierarchical organisational structure: This is pyramid shaped organisational structure
that is commonly follow by the organisation. The chain of command in this structure goes from
top to bottom. In this every employee of the organisation has supervisor. This structure helps
organisation to divide authority and responsibility in effective manner. It helps and motivate
employee for clear career path and increase the chances of promotion. It gives each employee of
the company speciality. Thus, with all these pros Hierarchical structure helps organisation in
better growth and gain effective productivity within the business.
Matrix Organisational structure: Chart of this structure looks like grid, it shows cross
functional teams of the organisation that works for specific task. Matrix structure works as both
roles and reporting relationships. This structure helps organisation and allow supervisor to easily
choose the employee by the need of special project. It give more dynamic view about the
organisation. Also it encourage employee of the organisation to use their skills and capabilities
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that they can use for the project aside from their original role. This organisation structure is used
by the Unilever in order to gain effective productivity and growth. It helps organisation to utilize
the skills of employee for the special tasks.
Functional organisational structure: This structure is similar to the hierarchical
structure, this structure starts with the position of higher levels of responsibility goes at the top
and goes down from there( Park and Lee 2018). In functional organisational structure employees
are organized according to their skills and corresponding function in the firm. In this each
department is managed independently. It assist employees to focus on their job roles so that they
can give effective performance in the organisation. It encouraged specialization in every
department so that effective productivity can be produced. It helps team members to feel self
determined. It can be use by any size of the organisation.
Thus, from the above information it can be understand that organisation structure of the
company helps in better growth and efficiency of production system of the business. Different
structure has their own pros and cones. Unilever use matrix structure in order to get effective
outcomes form ever employee of the company.
Use of PESTLE analysis on organisation
Pestle analysis of Unilever helps to analyses the brand by using some business methods.
Unilever PESTLE analysis identifies the various external factors like. Political, environmental,
social, technological. This pestle analysis identifies the different external scenario which has the
impact on business or brand. In terms of Unilever brand analysis of pestle is as follows;
Political factor: The political factor of the Unilever analysis will be explained is as
follows, Unilever is a huge brand, the company portfolio is working on mainly these division
like beauty and personal care, food & refreshments, home care & water purifier. So the
companies revenues generating source are the fast moving consumer goods, Unilever is always
have to be aware from the regulations set by the government, also in the foreign
countries,company has to abide by their laws.
Economical factor: The economical factor of the Unilever is, as the economy is
fluctuating Unilever has high chance for growth in the developing countries like India and china.
But also there are some risks are attached to the Unilever, employment is also playing an
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important economic factor in deciding the company position in the country. If there is a large
number of people are not employed, then it can help to reduce the cost of Unilever products.
Social factor: The social factor of the company is as follows, as Unilever is recognised
by more than 100 countries. Unilever has to launch the products in the market in the way that
will look appealing to the social demographics region. Unilever is also have to be focused on
their advertisement, because advertisement is coming in different languages this can also give
impacts on the customers socially.
Technological factor: Unilever technological factor is as follows; Unilever have to keep
in touch of the technology in order to survive in the market or to staying in the race. The
continue improvement in the operating process is needed in order to increase the efficiency of
the company and will decrease the cost of the products.
Legal factors: Unilever has a very big product name consist of more than 400 brands, so
Unilever needs to be focused on many rule and regulations. But also Unilever needs to protect
their patients as well. Because sometimes other fraudulent companies can use other companies
patients.
Environmental factor: Unilever company is dedicated toward to achieving their goals of
achieving the plastic packaging to be reusable and with the help of this we can innovate some
other useful product. That will be nature friendly, also Unilever focus to use less amount of
plastic for packaging.
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CONCLUSION
From the above information it can be summarise that different types of the company has
their own structure and characteristics that helps them in better proficiency and growth in the
competitive market. Also different characteristics of the organisations can helps to understand
about their operation system. Sole traders businesses, partnership limited liabilities businesses,
public limited businesses, and corporative businesses has different characteristics and structure
that assist them towards effectiveness. Also there are different organisational structure that helps
the businesses to gain better productivity and growth in the market. PESTEL analysis helps the
business to understand about all the external factors that have impact on growth of business.
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REFERENCES
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