Business Enterprises: Classification, Structure and PESTEL Analysis

This report provides a comprehensive overview of business enterprises, categorizing them by size (micro, small, medium, and large) and outlining their characteristics with examples. It explores various company types, ranging from sole proprietorships to cooperatives, detailing their structures and operational aspects. The report further examines organizational structures, such as hierarchical, divisional, and matrix structures, and their impact on revenue generation. A significant portion of the report is dedicated to a PESTEL analysis, focusing on how political, economic, social, technological, environmental, and legal factors influence the performance of a multinational consumer goods organization like Unilever. The analysis highlights the importance of adapting to external factors and the use of digital marketing platforms.

Business in Practices

Contents
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
Section 1: what is micro, small, medium and large size of business enterprises? Explain their
characteristics and examples of such types of business...........................................................................3
Section 2: various types of companies from sole trader to cooperative...................................................4
Section 3: Organisational structure and external factors which affect the operations of the company.....6
Various kinds of organisational structure which can be used by the company and how they affect the
revenue................................................................................................................................................6
Using PESTEL analysis model explain how external factors affects the performance of the company
.............................................................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
Business is an enterprise in which the entrepreneurs who are working in order to
manufacture and manage the goods and services which are so that the company can provide it to
their targeted customers. The main objective behind these types of business practices is to earn
profitability from the competitive market. The organisation can be classified with respect to their
size and scope of work. This can be from sole traders to International corporations (Capriotti and
Ruesja, 2018). The report is being discussed about the classification of business Enterprises.
There are several types of organisational structures which can be adopted by the companies in
order to manage their functions. Lastly, the report is being discussed about the external factors
which may affect bi functions of Unilever.
Main body
Section 1: what is micro, small, medium and large size of business enterprises?
Explain their characteristics and examples of such types of business.
Micro business enterprise: These types of companies in which the owners use to give an
opportunity to almost 9 people as their workforce who are working in order to gain the
competitive advantage (Cook, LaVan and Zilic, 2018). The company used to earn £2 million.
These types of companies are many times managed and owned by the sole traders or a small size
of Companies who are engaged in day to day activities. It can be also said that these types of
companies are founded in rural and underprivileged urban society.
Characteristics
 The company is very small in size and scope.
 These enterprises are formed to earn livelihood.
For example: barber shops, vegetable stores.
Small business organisation: it is another type of business organisation where the
entrepreneurs have engaged more than 10 workers but less than 50. That one of these types of
business organisations is under £10 million. In this type of company, they hire the local people
so that they can support their livelihood from their earnings. It also says that the small type of
business organisation have limited resources and generally have a single place of working.

Characteristics
 These types of companies are working in small places so that they can affect the
likelihood of their employees as well as for the owners.
 They are working in the local area only and not in many cities.
Medium business: it is also a type of business organisation in which the owner has engaged
more than 50 workforce but less than 250 people within the company who are working in order
to attain the common goal of the organization (Côrte-Real, Ruivo and Oliveira, 2020). These
types of companies have turnover around £50 million. The main objective of these types of
business organisations is to earn profitability from the competitive market so that they can
expand their business in order to provide their services to the targeted customers.
Characteristics
 The owners of the company are responsible to take decisions with respect to manage the
functions of an organisation.
 The main objective behind these kinds of business organisations is to satisfy the needs
and wants of their targeted customers.
For example: Hunter Company.
Large business organisation: these types of organisation are large in scale and scope as
they are founded at the national and international platforms. The turnover of such types of
organisations is around £1 billion. These types of companies use to hire more than 250 workers
who are working in order to attain the common goal of the organisation. It can also be said that
these types of companies are present at the global level.
Characteristics
 The main objective of these companies is to earn profit from the competitive market
while satisfying the needs and wants of the targeted audience.
 The company also plays a significant role developing the economic condition of the
nation because they are providing employment opportunities to the job seekers (Foss and
Saebi, 2018).
For example: Unilever, Marks and Spencer etc.

Section 2: various types of companies from sole trader to cooperative
Sole proprietorship: in this type of company the owner is the sole trader who is
responsible to manage and operate its business. It is the most simple type of business
organisation as it does not require a large number of procedures in order to register before the
authority. The companies are not required to invest huge amounts of capital and not the
employees. These types of organisation are dependent upon the owner only as the insolvent or
any other disability or death of the owner is resultant and dissolution of the organisation. For
example, the catering system, home tuitions, etc.
Partnership: when two or more people are engaged under a contract in order to work
together to share the profit and losses which have occurred in a business it is called as they are
under a partnership agreement. The liability of the partners can be Limited or unlimited as
mentioned in the agreement between the partners (Gallo and Tomčíková, 2019). The partners are
not allowed to transfer the ownership without the consent of the other partner. For example
Twitter, McDonald's etc.
Limited Liability Partnership: it is a type of partnership in which the partners are agreed
to a ratio with respect to the parties between the agreement and share the losses and profits
accordingly. These types of partnerships are the safest type of business because it is used in order
to save the personal Assets of the partner's. These types of organisations are founded by the same
rule of cooperation as they are flexible with respect to taxes and other benefits which can be
availed by the partner's under a partnership agreement (Loosemore and Lim, 2018). For example:
blockbuster.
Public Limited Liability Company: it is also another type of business organisation where
the general public has the right to buy the shares of a company because the shares are available
into a general stock exchange market. While issuing shares, companies used to raise the capitals
which are used in order to expand the business and to have a smooth functioning of the
organisation. These types of organisations play an important role in order to develop the
economic conditions of a nation. For example: Rolls Royce.
Cooperative: it is a type of business enterprise in which the workers and the owner are
engaged while satisfying the needs and wants of the people who are not able to satisfy them
(Mahtani and Garg, 2018). The main objective of these types of organisations is to provide their

goods and services to necessary people and not to earn profitability from the market. These types
of enterprises play an important role in order to develop the economic conditions of the nation. It
can be also said that the companies are helping the government in order to uplift the basic
standards of the people who are sitting in the local areas. For example: Weaver Street Market etc.
Section 3: Organisational structure and external factors which affect the operations
of the company
Various kinds of organisational structure which can be used by the company and how they affect
the revenue.
Organisational structure plays an important role in every company as it is helping the
organisation in order to have better functioning so that they can attain their common goal in an
effective manner. The organisational structure is also used in order to motivate the workforce so
that they can give their best outcome while using their skills and knowledge (Marinescu,
Constantin and Haar, 2019). There are several business structures which can be adopted by the
companies in order to have a proper functioning. Some of them are discussed below:
 Hierarchical organisational structure: it is the pyramid shape of organisational structure in
which the top authority of the organisation is provided with the commands to the lower
level of workforce. These types of organisational structure is used by many of the
companies in order to define the responsibilities and the authorities at each level within
the company. The main objective of adopting this type of organisational structure is to
motivate the workforce so that they can give better outcomes from their possessed skills
and knowledge. This is helpful in order to attain the common goal of Organisation in an
infectious manner.
 Divisional organisational structure: it is another type of organisational structure in which
the employees are divided into several departments with respect to their skills and
knowledge. These structures are adopted by the large size of enterprises. In this type of
organisational structures the Managing staff can take various decisions without reporting
to the other team members as they are divided in several departments with respect to their
skills which are possessed by them.
 Matrix organisation structure: it is a type of structure which looks like a cross functional
team which is formed in order to complete a specific project. When the organisations are
allowed there team leaders to select the team members as per their requirement of the

project (Masset, Uzelac and Weisskopf, 2019). This helps them to motivate their
employees which resulted in enhancement of capacity of work.
Using PESTEL analysis model explain how external factors affects the performance of the
company
Unilever is the Multinational Consumer goods organisation which is operating its
business in the world. The headquarter of The Chosen organisation is situated in London as it
was founded in the year of 1929 by liver branch and Margine Unie Line. It is very important for
the chosen organisation to determine the external factors which are affecting their functions and
for the same the companies adopting a PESTLE model which is discussed below:
 Political factors: the company is working around the world and for that it is very
necessary for the organisation to work according to the rules and regulations which are
present in each country. The organisation is supposed to follow the European commission
and foods and drugs adulteration while providing their products and services to the
targeted customers. It is also necessary for the chosen organisation to follow both the
local and international rules.
 Economical factors: these factors are discussed with respect to the customers and their
deep pockets as it is used in order to determine and analyse the pricing strategy which can
be adopted by the organisation while determining the cost of the product (Tysiac and
Drew, 2018). It is also used to analyse the competitive market so that they can analyse the
desires of their targeted audience which will be used in order to provide their goods and
services to them.
 Social factors: there are several strong competitors which are present in the market so it is
necessary for the organisation to develop a strong relationship with their customers so
that they can develop a trust between the company and customers. It is very necessary for
the company to attract the targeted audience so that they can enhance their sales. The
organisation also used to focus on personal care and wellbeing products as the customers
have a better living standards of their life.
 Technological factors: there are several things which must be adopted by the company in
order to determine the current scenario with respect to the technology system. As it is
playing a major role while attracting the customers in order to provide their products and
services to them (Xiong and et. al., 2019). It is necessary for the organisation to adopt the

digital marketing platforms and social media platforms in order to promote their goods
and services and also to adopt the digital marketing platforms and social media platforms
in order to promote their goods and services and also used while determining the needs
and wants of the targeted audience.
 Environmental factors: the organisation used to promote sustainable and renewable
resources as they are designing their products in such a manner so that they can save the
environment. This helps them to promote their goods and services and attract the target
customers towards the organisation. The company has adopted an eco-friendly packaging
system which saves the environment.
 Legal factors: as the company is at the international platform so it is required to follow
the rules and regulations of every country while providing their goods and services to the
targeted people (You, Zhang and Yuan, 2019). The company is engaged in more than
400 brands in food, health, personal care and several other industries so it can be also said
that the organisation is bound to follow the domestic and international law's.
Conclusion
From the above report it can be concluded that business plays a significant role while
developing the economic conditions of the nation. There are several business organisational
structures which can be used by the company in order to have a smooth functioning. Unilever is
also analysing the external factors which can affect the organisation as it helps them to determine
their strategies which can be adopted by them in order to provide better products and services to
the targeted audience.

References
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