An Analysis of Business Types, Structures, and Environmental Factors

This report provides a comprehensive overview of different business types, including micro, small, medium, and large organizations, detailing their characteristics and operational scopes. It further explores various company structures such as sole traders, partnerships, and limited liability businesses, outlining their definitions, number of owners, taxation, and examples. The report delves into organizational structures, such as hierarchical, functional, and flat structures, and discusses their impact on business productivity through effective communication, transparency, and employee motivation. Additionally, it applies a PESTLE analysis, examining the influence of political, economic, social, technological, legal, and environmental factors on business performance, concluding with the dynamic nature of business practices and their role in efficient task execution.

BUSINESS IN PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1...........................................................................................................................................3
Different type of businesses.........................................................................................................3
Section2............................................................................................................................................5
Different types of companies.......................................................................................................5
Section 3...........................................................................................................................................7
Different organizational structure................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business practise is the manner that business undertake to use the most effective
technique to perform the activities of the business (Pepis and de Jong, 2019). This report
evaluates the different type of businesses and their characteristics micro, small, medium and
large organisation. The different type of companies are determined with their characteristics and
respective examples. Moreover, different organizational structures and impact of business
productivity are discussed. PESTLE analysis is made to identify business influencer.
Section 1
Different type of businesses
Basis Micro business Small business Medium business Large business
Definition This organization is
having less than 10
employees to
perform the task
within the company
(Weller, 2017). This
type of business
mainly operates in
retail, construction
and healthcare field.
Basically starts with
the small amount of
money which is been
taken from bank or
any other businesses.
This is an
privatise
ownership or can
be a partnership
has fewer
employees and
lower the income
or revenue than
any medium size
businesses. These
companies are not
dominating in the
field of operation.
This business
define under the
company act 2006
which has almost
50 to 250
employees. There
annual turnover is
about £12.9
million. They are
having capital
assets of around 10
million.
Big businesses
includes scale
corporate
controlled
businesses
activities. These
businesses are
work as large
industry mostly in
mining and
manufacturing
industries. Having
employees above
500 and having $7
million in the
annual receipts.
Size The micro business
are very small. As
their turnover and
The small
business are
having small size
The size of
medium size
organization are
The employees in
the large
organization are

number of employee
are also very fewer
€2 million.
and operating a
smaller areas
group and this
number of
employees are
depended on the
industry. They are
having $7 million
in sales.
having 50 to 250
employees. This
organization are
having a normal
size and branches
as well nationally.
comparatively
more. The
operation of large
organisation are
large.
Scope The scope of micro
business are covering
a large variety of
activities require in
this yet the scope of
micro business are
fewer because their
extent of operation
very compact.
Small business
undertake
activities of
buying selling of
some kind of
commodity so it
requires less
capital and this is
dominated with
small entrepreneur
which cover the
local area people
and fulfil the
regional demand
of the people.
The medium size
business are having
bigger scope in the
national market
because they used
to operate on wider
area ans attract the
large customer so
their customer base
is higher, and they
also gain higher
profit.
Large organization
are having wider
scope as there are
promoting their
brand and products
internationally and
also having
branches in
different countries.
Their network and
distribution
channel is
effective.
Risk and
uncertainty
In the micro business
very less amount of
investment is done,
so they are having
lower risk level.
Small business are
run with the sole
trader so the
investment is
being made by
them only so risk
Medium size
business are
working as
partnership or sole
traders so the risk
is being divided
Large organization
are having higher
risk level because
this is working on
a large project an
if the customer are

and uncertainty in
small businesses
are comparatively
less.
into the partners or
if any uncertainty
happens then all
have to bear that
collectively
(Srnicek, 2017).
not being satisfied
with that then
brand is being fail
in the market and
have a huge loss.
Social
activities
In this there are
fewer employees, so
they used to train
them in a way that
they will serve the
society effectively.
They are
segmenting the
people and then
target them
accordingly. They
are also making
use of
environment
friendly tools for
the production.
The medium size
businesses are
following the
guidelines of the
government, and
they are also
involved in social
work to attract the
audience towards
the company.
Large organization
are operating more
than one nation, so
they are more
engaged in doing
corpora ting social
responsibilites.
Section2
Different types of companies
Basis Sole trader Partnership Limited
liability
businesses
Public limited
businesses
cooperative
Definition This business
is being owned
and controlled
by single
number of
person (Clinton
and Whisnant,
In this business
type there are at
least two people
or more than that
who are jointly
contributing in
the business and
This type of
business
structures are
basically
developed by
partners which
are having
This is a type
of business in
which the
profit is being
divided into
shares this
type of
This business
are also known
as co-op and
in this
business
which is
controlled by

2019). also distribute
the profit as per
their profit
sharing ratio.
limited
liability to the
extent of their
capital (Kwon
and Lee,
2017).
Basically if
the
organization is
at risk then
partnership
don't have to
worry.
organization
are really very
rare and being
highly
regulated.
member and
having an
owner as well.
There are lots
of benefits in
the
cooperative
business
people used to
come in this
type of
business to
take the
advantage of
this.
Number of
owner
Single person
is the owner of
sole trader
business.
At least two
people are being
the owner of the
partnership
organization.
Limited
liability
business also
have at least
one person
needed.
Minimum 7
shareholders
are need to
develop a
public liability
company.
There are
minimum 5
members
which are
having equal
rights in taking
investment
decision.
Taxation No other
business tax is
charge the
owner just
have to pay its
own income
tax.
Tax are been
charged which is
depended on the
profit they
earned in the
year.
The taxation is
being placed
on the income
on personal
level the
company not
have to pay
They not have
to pay tax,
their taxation
is depended on
the income
they earn.
This is exempt
from the
income tax,
value addition
taxes or any
other taxes.

any tax.
Example Local clothing
store can be a
sole trader
because it is
owned by a
single person
and all the
profit and loss
are also being
adjusted by
them to
continue the
business, and
they have to
pay the income
tax on their
income.
Spotify and Uber
is a great
example of
partnership
which is being
working with
two partners and
their operational
activities are also
managed by both
of them. They
jointly take and
decision in the
company, and
they have to pay
the business tax
as well.
This can be
any LLC like
blockbuster is
also a limited
liability
company
how's partners
are having
limited
liability from
their
businesses up
to the capital
amount they
have invested
in.
British
petroleum
company
limited is one
of the public
limited
organisation in
which the
shareholders
are getting
their
respective
share of profit
and loss.
Cebu CFI
community is
an cooperative
company is an
multi-purpose
company
providing
different type
of benefits to
its members
(Sauer and et.
al., 2017).
Section 3
Different organizational structure
There are number of organizational structures which are being used by different type of
business some of which are being explained below:
Hierarchical organizational structure: In this type of structure there are different levels as per
the position in the organization and all the employees are having their mentor or supervisor to
guide them. In this structure all the employees are having their respective authority and
responsibility to perform their individual duties (Miśkiewicz, 2017). All the people are having
separate task to perform and also being motivated accordingly to travel in efficient path.
Functional organizational structure: As smilier to hierarchical structure in this structure the
higher person in this are having the maximum authority. The employees are placed as per the

skills they have to perform the function in the organization. In this organization are managing the
department independently. The employees in which are focussed towards their role and also
being more specialized as per the time.
Flat organizational structure: this type of structure is being used by the companies who are
having less number of people between the topmost authority and the employees of the
organization. Employees in this type of structure are more responsible and due to foster the
communication is open. The employees are working with higher coordination and new ideas are
also implemented effectively.
The structure also affects the productivity of the businesses in the following manner:
Effective communication: All the organization structure are having a unique style to transfer the
information yet from all the structures the flat structure is most efficient style in which all the
employees are work at same floor so that if employees have any doubt then they can directly
coordinate with higher authority directly (Ramanadham and et. al., 2019). The senior can easily
inspect the work of the employees and information is transferred to all quickly.
Transparency: As mostly in the organization department are not sharing their information
effectively and due to this the transparency is not efficient in the organization. Yet the
organization who are having team based organizational structures are having higher transparency
because in this type of companies department are sharing all the information regarding the
process and other things.
Motivation: the employee's motivation is the key to produce more and work more effectively so
hierarchical organizational structure is having different stages and segment where employees are
doing their work and this is also being motivated by their superior to develop their career.
PESTLE ANALYSIS
This analysis help to identify the external environment factors which are affecting the
business performance of the businesses (Achinas and et. al., 2019). PESTLE stands for Political,
economical, social, technological, legal and environment.
Political factors: The business industry are being influenced by the political condition currently
running in the country. As the government are making the rules and regulation for the business's
enterprise that has to follow by the companies to retain. When there is any change in the political

parties of the country then business is being impacted, and they have to follow the new rules and
regulation.
Economic factors: In these businesses are also highly influenced by any economical issue such as
inflation, rates of monetary and fiscal policies and many more. They are making their business
strategies keeping in mind the condition of the economy income level of the people. Therefore,
when then economy face any issue then it influences business as well (Policy, 2018).
Social factors: As the people of all the nation are having different choice and preference so when
the customers are changing their preference then business is highly impacted. The respective
organization have to change their product line.
Technological factor: technology is the biggest influencer of the businesses because this external
factor is ever-changing in nature and business have to do its production and other activities with
the technologies. If they are not using the latest technology then they can not sustain in the
market.
Legal factor: in the nation the laws uses to change accordingly and business have to follow them
to sustain in the competitive world (Ofosu-Boateng and Jiping, 2020). The business performance
being affect if any new laws comes and then business have to make effort to adopt that.
Environment factors: the place where business is undertaking its operational activities is great
influencer of any businesses. If there is any change in the climate then business have to change
its operation to work in that climate. This also impact the performance of the business.
CONCLUSION
This report concludes that the business practises are very dynamic and help to perform
the task effectively. The different type of companies are helping to know the size ans scope they
have as micro business's scope is less and large business's are having an huge scope in the
market. Further this concludes different type of companies and their respective stakeholders are
helping to know about the ownership and tax they used to pay. Moreover, in this different
structure of organization are explained which assist to know the effectiveness of each of them
and pestle help to know about the external factors influencers.

REFERENCES
Books and journals
Achinas, S. and et. al., 2019. A PESTLE analysis of biofuels energy industry in
Europe. Sustainability. 11(21). p.5981.
Clinton, L. and Whisnant, R., 2019. Business model innovations for sustainability. In Managing
Sustainable Business (pp. 463-503). Springer, Dordrecht.
Kwon, H.S. and Lee, K.O., 2017. A study on the characteristics of safety culture by workplace
size and work type in the group company. Journal of the Korean Society of
Safety. 32(6). pp.125-130.
Miśkiewicz, R., 2017. Organisational structure in the process of integration on the example of
iron and steel industry enterprises in Poland. Difin.
Ofosu-Boateng, C.N.R.L. and Jiping, Z., 2020. A Pestle Analysis of Maritime Piracy and
Maritime Security in the Gulf of Guinea. Advances in Social Sciences Research
Journal. 7(1). pp.472-482.
Pepis, S. and de Jong, P., 2019. Effects of Shariah-compliant business practices on long-term
financial performance. Pacific-Basin Finance Journal. 53. pp.254-267.
Policy, P., 2018. What is pestle analysis.
Ramanadham, V.V. ed., 2019. Public enterprise: studies in organisational structure. Routledge.
Sauer, D. and et. al., 2017. Systemic Rationalization and Inter-Company Divisions of Labour 1.
In Technology and work in German Industry (pp. 46-59). Routledge.
Srnicek, N., 2017. The challenges of platform capitalism: Understanding the logic of a new
business model. Juncture. 23(4). pp.254-257.
Weller, A.E., 2017. Aligning responsible business practices: A case study. Business Ethics: A
European Review. 26(4). pp.457-467.
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