Business Analysis Report: Types, Structures, and PESTLE Analysis

This report provides a comprehensive analysis of different types and sizes of businesses, examining their characteristics and impact on the economy. It explores various business types, including micro, small, medium, and large enterprises, and their relevance to a case study of Sainsbury's. The report also defines different company types such as sole proprietorships, partnerships, and limited liability partnerships. Furthermore, it analyzes various organizational structures like functional, divisional, flat, and matrix structures and their impact on productivity. The report also assesses the impact of external factors on businesses using PESTLE analysis, covering political, economic, social, technological, and legal factors. The analysis provides a well-rounded perspective on various company types, their impact on sales and profitability, and the broader business environment.

You have been employed as
an assistant business
analyst by a large
multinational organisation
to investigate different types
and sizes of business the
Table of Contents

INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................3
Section-1.....................................................................................................................................3
Explain different types of business along with their characteristics...........................................3
Section2-.....................................................................................................................................4
Define different types of companies ..........................................................................................4
Section3.......................................................................................................................................6
Explain various business structure and its impact on productivity.............................................6
Asses the impact of external factors over business with PESTLE analysis................................7
CONCLUSION................................................................................................................................9
References......................................................................................................................................10

INTRODUCTION
Business entities are the important part of an economy as they generate ample of job
opportunities and help in overall economic development. There are various types of
organizations such as small, medium, large and more. Different companies are operated with
different purpose. For current report Sainsbury has been selected that is a retail giant based on
UK. It deals in groceries and operates in various countries across the globe (Ahmad, 2018). The
report comprises different types of organizations like micro, small and medium along with their
characteristics, examples and more. In addition, various types of companies such as sole
proprietorship partnership, limited liability partnership are also included in report. Further,
different organizational structure along with the impact of external factors over business
performance are also discussed in present report. Moreover, it renders an overall prospective
about various types of companies and their impact on overall sales and profitability.
MAIN BODY
Section-1
Explain different types of business along with their characteristics
There are various kind of business entities that may differ in terms of investment, size as
well as scope. It is analysed that there are ample of organisations having different characteristics,
goals are being operated within UK. In context of Sanisbury, different type and size of
companies that affected their business functions are elaborated below:
Micro or small business-
These business entities are operated at small level with limited investment that is
generally done by owners, friends, acquaintances and small creditors. In case of Sainsbury, it is
affected with small enterprises which targets local audience (Bagnoli and Redigolo, 2016). For
instance, Giddy Grocer is a small grocery store within UK that are providing quality products to
local people at reasonable price. Thus, managers need to make effective strategies in order to
address the impact in an appropriate manner.
Characteristics-
 These organizations do not own higher funds to invest in machinery and tool and work
with local employees.

 In addition, there are limited number of employees that can vary between 1 to 55 who do
not have higher qualifications and degrees. Main aim of these companies is to earn potential profit for business owners and to create
huge impact in locality.
Medium size business-
These organisations have more resources and work at larger level in comparison of small
enterprises. There are sufficient funds, machinery, tools are available within medium entities.
These are the major source of revenue for people within country and help to meet with the needs
of customers on timely basis. For instance Verdant Leisure is a medium size company based on
UK. Business of Saindbury are getting affected with medium enterprises within country as they
attracts buyers by providing better services in affordable price range.
Characteristics-
 Number of employees can vary between 50 to 250 in these kind of companies to operate
business effectively. Here main motive is to earn adequate profit margin for business owners in order to live a
better life style (Chaiyapa, Esteban and Kameyama, 2018).
Large Enterprises-
Those enterprises that functions at wide level with several unique and innovative
approaches, efficient resources are termed as Large companies. Major part of overall GDP of
economy are come from these entities as they generate higher revenue. There are large
organisations in UK such as TESCO, ASDA and more. It is analysed that there are ample of
rivalries of Sainsbury within country which restrict its performance.
Characteristics-
 Large companies own higher numbers of employees and other resources to ensure
smooth functioning of business entities.
 Higher amount of profit margin is earned by these entities and also significantly
contribute in overall economic development of nation.
 Majorly, these companies work at wide level and operate in various countries globally.

Section2-
Define different types of companies
Business are initiated with an aim to earn profit margin and economic development, it
can be differ in terms of size, purpose and scope. There are various type of entities which can be
initiated by an individuals. Some crucial illustrations of business are mentioned below:
Sole proprietorship-
It is a business entity that is owned by an individual or single business owner. Here all
business related decisions are taken by a owner without interruption of any outside party
(Denktaş-Şakar and Sürücü, 2020). For instance, small bakery shops, firms that are controlled as
well as operated by an individual are fall under this category. Legal structure of these entities are
simple as all decisions are taken by single business owner.
Characteristics-
 Here, organisation is controlled by a person who initiate it to with an aim to earn
profitability. Decision making power lies in the hand of single person without any involvement of
external parties.
Partnership-
Here business is undertaken by two or more people who come together with an identical
purpose of profitability. There are certain forms of partnership such as limited liability and many
more. It is govern as per the rules of partnership act 1932. Decisions are taken by all partners on
mutual agreements. In context of Sanisbury, company is influenced with these firms. For
instance, car phone warehouse is a partnership firm within UK that was started by two
individuals (Galabov, 2020).
Characteristics-
 Here profit and loss are divided by both partners who are operating business entity. Decisions are taken by all individuals involved in firms and governed by legal agreement
between them.
Public limited liability business-
In this, general public are invited to invest in companies share through prospects. People
invest in business thus legal authority to get suitable return on investment. Here decisions are

taken by board members on behalf of shareholders to protect their interest in business. Profit and
sales of Sanisbury is highly affected with public entities as people have trust over these
companies.
Characteristics-
 Money is gathered by general public by issuing shares thus price of shares are affected
with current market condition.
 It is the most suitable way to get huge money in minimum period of time.
Limited liability partnership-
In this, partners have limited liability towards entity. They are responsible for only for
their own activities within business. Here each person is not liable for misconduct of another
partner and its impact on overall firm (Krause and Matzdorf, 2019). Legal structure of these
companies is quiet simple where decisions are mutually taken by owners. Shadbolt Partners LLP
is a firm that is operated within UK with an aim to earn profit. Mangers of Sainsbury need to
identify the impact of LLP on their business to prepare effective strategies.
Characteristics-
 Liability of partners are limited to their investment in firm as they are not responsible for
negligence of other individuals within company. Here, decisions are taken by all partners involve in operations of entity.
Cooperative-
It is a type of business entities which is operated with an aim to create huge social impact
and serve the society in a better manner. Here people who have enthusiasm to work for the
betterment and overall development come together and initiated business. For instance, Central
England Cooperative society is a company which work to create huge social impact within
country. In context of Sanisbury, there are ample of cooperative companies that are affecting its
business (Leek, Houghton and Canning, 2019).
Characteristics-
 Main aim of these entities is to serve society rather create earn higher profit margin.
 Here individuals come together and put their resources together in order for overall
societal development.

Section3
Explain various business structure and its impact on productivity
Organisational structure refers to the arrangements of various position within company. It
helps to define roles and responsibilities of individuals who are working in an organization. It is
essential to achieve desired goals and minimize disputes arises at work place. There are different
type of organisational structure that can be adopted by a company in order to perform various
assigned task in an efficient manner. In context of Sanisbury different structure are mentioned
below:
Functional structure- There are ample of operations such as finance, marketing, research
are performed in an entity to attain predefine goals. In this, different heads are appointed for
different departments so that they can perform respective functions effectively. Here employees
get an option to associate with a particular division that minimizes conflicts and disputes arises at
work place. In context of Sainsbury, it can undertake functional structure to enhance productivity
of employees.
Divisional structure- Organisation divides different functions into a division (Salindal,
2019). These divisions can be formulated either on the basic of geographies and products offered
by entity. Necessary resources such as IT, finance, marketing are provided to each and every
division so that they can work without any disruption. In context of Sanisbury, it is operating in
different locations so company can use this structure in order to maintain proper coordination at
work place.
Flat structure- It is a structure that is used by small companies and start-ups in order to
operate effectively. There is no hierarchy follows within organisation as employees can directly
contact with managers regarding their issues. With this, it is easy to convey necessary
information from one person to another in organisation. So, companies use this structure to
enhance in overall efficiency of entity. It is not suitable in case of Sainbury as entity is working
at large level where flat structure can not be applied.
Matrix structure- It is a flexible organisational structure in which work force have an
option to move from department to another. Employees get an opportunity to learn more skills
and knowledge as they get the exposure of different divisions. With this, project can be
completed effectively as supervisor can select best suitable candidate to undertake it. Sainsbury

may adopt this structure for overall development of staff members within company. It is consider
as a better way to improve in efficiency of work force.
Asses the impact of external factors over business with PESTLE analysis
External factors put a great impact on overall business setting by influencing its
profitability and operations. PESTLE framework is carried out by managers in order to evaluate
macro environmental factors which can not be controlled by them. In reference of Sanisbury, it
conduct proper market researched to examine the impact of certain external elements which are
given below:
Political- Under this, intervention of government and political parties are reflected within
country. It comprises various factors such as political stability, instability, current policies of
government and more. In context of Sainsbury company is operating at global level thus highly
influenced with change in political environment of different countries.
Economical-Here elements such as inflation, interest rate, employment opportunities,
demand supply are included. These elements have direct impact over profitability of an entity.
Sanisbury is facing huge economic impact due to Brexit as it has been created ample of
uncertainties within country.
Social- Customers purchasing behaviour, personality, status, religion, attitude and more
are included in this factor (Tikkinen-Piri, Rohunen and Markkula, 2018). Thus, it is significant
for managers to evaluate these elements on constant basis that will help them to meet with the
needs of customers in better manner. Management team of Sainsbury provides quality products
to customers at one place and also offer various discounts.
Technological-In the current competitive world, it is crucial to adopt unique and
innovative approaches to perform various business operations. It will provide competitive edge
to company and also help them to sustain at market place for longer duration. In reference of
Sainsbury, it use effective techniques such as automation, digital technologies to get desired
goals.
Legal- There are several legal factors such as business, consumer protection and
employment laws that need to follow by mangers in order to run business smoothly and
minimize legal disputes. Sainsbury abide by ample of laws of different countries that is great
hassle for managers.

Environmental- Nowadays, it is essential for each and every company to give due
consideration to environmental impact of their operations. For this, managers need to adopt
effective strategies to control pollution and emissions generated during production process.
Sainsbury adopts recycling and suitable waste management approaches in order to safeguard
environment.

CONCLUSION
There are ample of business entities which differ from each other in terms of size, scope,
investment and other factors. Discussion has been carried out regarding various types of
companies that are initiated with an aim to earn higher profit margin. In addition, different
organizational structure arr followed by companies to circulate necessary information within
entity. Further,PESTLE analysis has been carried out in order to evaluate the impact of external
factors over business performance.

References
Books and Journals
Ahmad, S.D., 2018. Legal Protection Carried Out by the Financial Service Authority in a Dispute
between Consumers and Insurance Companies in Indonesia. International Journal of
Social and Administrative Sciences, 3(1), pp.55-61.
Bagnoli, C. and Redigolo, G., 2016. Business model in IPO prospectuses: insights from Italian
Innovation Companies. Journal of Management & Governance, 20(2), pp.261-294.
Chaiyapa, W., Esteban, M. and Kameyama, Y., 2018. Why go green? Discourse analysis of
motivations for Thailand's oil and gas companies to invest in renewable energy. Energy
Policy, 120, pp.448-459.
Denktaş-Şakar, G. and Sürücü, E., 2020. Stakeholder engagement via social media: an analysis
of third-party logistics companies. The Service Industries Journal, 40(11-12), pp.866-
889.
Galabov, M., 2020. Economic Efficiency of Real Sector Companies–Nature, Types, Elements,
Indicators and Models. Икономически изследвания, (5), pp.28-59.
Krause, M.S. and Matzdorf, B., 2019. The intention of companies to invest in biodiversity and
ecosystem services credits through an online-marketplace. Ecosystem Services, 40,
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Leek, S., Houghton, D. and Canning, L., 2019. Twitter and behavioral engagement in the
healthcare sector: An examination of product and service companies. Industrial
Marketing Management, 81, pp.115-129.
Salindal, N.A., 2019. Halal certification compliance and its effects on companies’ innovative and
market performance. Journal of Islamic Marketing.
Tikkinen-Piri, C., Rohunen, A. and Markkula, J., 2018. EU General Data Protection Regulation:
Changes and implications for personal data collecting companies. Computer Law &
Security Review, 34(1), pp.134-153.