Exploring Business Types, Structures, and External Factors Analysis

This report provides a comprehensive analysis of various business types, including micro, small, medium, and large-scale businesses, along with their definitions, characteristics, and examples. It also explores different organizational structures such as functional, divisional, and matrix, explaining how these structures affect business productivity. Furthermore, the report utilizes PESTLE analysis to evaluate the impact of political, economic, social, technological, legal, and environmental factors on business performance, highlighting the importance of understanding these external influences for strategic decision-making. The document concludes by emphasizing the need for businesses to adapt to these factors to ensure long-term sustainability and success. Desklib provides access to similar solved assignments and study tools for students.

Business

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Definition, characteristics and examples of micro business, small business, medium size
business and large size business..................................................................................................1
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative........................................................1
Identify different organisational structures and explain how organisational structure affects
business productivity...................................................................................................................2
Using PESTLE analysis explain how different external factors affect the performance of a
business........................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The recommended paper examines and evaluates numerous kinds of businesses in great
depth (Kareem, 2018). It emphasises the importance of various phases of training in improving
the yield of businesses. In particular, the study includes a full examination of the Pestle Theory.
MAIN BODY
Definition, characteristics and examples of micro business, small business, medium size business
and large size business
Micro scale business- A smaller enterprise is a small local business on a very small scale.
The activities enabled inside the entrepreneur have a really wide capability, and the goods they
use are similarly quite constrained. The total workers in a small enterprise is less than ten.
Small scale business- Small businesses are described as businesses with a sole property,
limited capital, and low labour needs. Small businesses have a smaller market penetration, yet
they are regarded as valuable contributors to the overall economic.
Medium scale business- A medium-sized company is something that has the cash and
human resources to promote its brand in terms of investment operations. Medium-sized
businesses have a larger consumer base than tiny businesses.
Large scale business- Inside the economic realm, large-scale firms are increasingly
successful. Vast-scale businesses work on a massive scale and necessitate a significant amount of
cash. Revenue generating in large-scale company operations is extremely efficient and satisfying
(NGOLYA, 2020).
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited liability business and Cooperative
Sole Trader- A business owner is an area of company in which a normal individual owns,
manages, supervises, and controls the company.
Partnership- A partnerships is a type of commercial organisation in which two or more
people create an arrangement to operate a company's operations and share the funds and loses
according to agreed capital contribution.
Limited Liability- A Limited Liability Company (LLC) could be regarded as a systematic
corporation which is formed through the enforcement of rules and can also be disbanded via the

application of law. In these types of businesses, the employee's responsibility is restricted to the
amount of profits of the company.
Public limited company- A public controlled corporation is an organisation that is formed
in accordance with applicable laws. The corporation and its operator are described as two distinct
entities.
Cooperatives- Communal company is a business which are formed for the purpose of
promoting personal interests. The cooperative's main purpose is to provide somewhat help to its
membership.
Identify different organisational structures and explain how organisational structure affects
business productivity.
The methodical processes and managerial methods integrated by economic entities in
ability to motivate the day-to-day activities in a coordinated and planned method are related to
organizational framework. The amount of production governed by corporate organizations is
heavily affected by political architecture, which is a strategic assessment. Organizations
presenting their offerings might choose from a variety of corporate boundaries. The following
are three more common and widely used hierarchies-
Functional- Employees who enable related tasks qualities are organised into a particular
program in a functioning decentralized organization. The assumption that putting alongside
personnel who perform comparable company operations will benefit the firm improve its
communications and operating excellence is a source of worry for functioning decentralized
organization.
Since individuals operate in teams, their professional camaraderie and relationships
strengthen, allowing for greater cooperation and comprehension whilst managing the operational
activities assigned to individuals.
Divisional- The split corporate entity emphasises the concept of enabling sections and
people depend on the company's different goods and services supplied in the economic climate.
The main purpose of the relevant business model is to raise the efficiency and competency of
activities by matching diverse individuals towards that activity in addition to increasing its cost
quality.
Matrix- The matrix company design can be viewed as a gradual merger or merging of
both operational and segmental. The relevant architecture combines the best features of the both

earlier in these thread businesses, allowing the company to attain brilliance and competence in
their workplace environment. The foundation organization is determined by the matrix
departments, and the particular strategy is aided by the division’s management approach's
congruence (Nurani, Nurjanah and Prihantoro, 2020).
The engaged organizational structure encourages employing persons to have more
authority and freedom for the legal duties they do within the company. The corporation can
integrate creative thinking into their existing area of business operations thanks to the successful
capitalization of the Matrix corporate strategy.
Using PESTLE analysis explain how different external factors affect the performance of a
business.
 Political- The social atmosphere has a substantial effect on the functioning of corporate
organizations in their particular industries. When corporate organisations run in a stable
macroeconomic system, companies were capable of operating with greater flexibility
than when they manage the operations in a political instability arena, according to
research. Opposition groups, goals, changes, and changes, among other things, have a
significant impact on the suppleness with which businesses operate.
 Economic- The economics is among the most significant factors that influence how a
firm operates. Commercial rates, currency exchange rates, hyperinflation, grow and
succeed, unemployment, depression, and other variables all result in economic climate.
The market climate where a corporation operates and regulates its processes and rules has
a massive effect on the organization's revenue and long-term viability.
 Social- It includes different factors that are changes in the taste and preferences of the
society and a company has to analyse and evaluate it in a detailed manner so that it can
sustain in the long run.
 Technological- There are a number of different technological changes that are going on
and thus a business have to cope up with it so that it can thrive in the market in which it is
working.
 Legal- It includes all the rules and regulations and a company has to comply with all of
those so that it can function in a smooth manner in the industry (Thang, 2021).

 Environmental- These are factors that are related wit using sustainable energy sources
and a firm must use renewable sources of energy so that it can help in maintaining the
environment effectively and efficiently.
CONCLUSION
It can be concluded from the above that there are various aspects that are mentioned above
and thus has to be examined in a very detailed manner.

REFERENCES
Books and journals
Kareem, T.S., 2018. Impact of inventory management practices on small and medium enterprises
manufacturing subsector in Oyo State, Nigeria. South Asian Journal of Social Studies
and Economics, pp.1-8.
NGOLYA, J.N., 2020. DETERMINANTS OF GROWTH OF SMALL AND MEDIUM
ENTERPRISES IN THIKA TOWN, KIAMBU COUNTY, KENYA (Doctoral dissertation,
Gretsa University).
Nurani, N., Nurjanah, R. and Prihantoro, I., 2020. COMPETENCE OF HUMAN RESOURCES
OF SMALL AND MEDIUM ENTERPRISES (MSMES) OF WEST JAVA THROUGH
INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION IN THE COVID-19
PANDEMIC ERA. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(10),
pp.3878-3896.
Thang, N.M., 2021. The Impact of Outsourcing on the Performance of Small and Medium
Enterprises in Vietnam. European Journal of Business and Management Research, 6(3),
pp.208-215.