This comprehensive report examines the classification of businesses based on size and legal entities, providing definitions, characteristics, and examples of micro, small, medium, and large businesses. It delves into various company types, including sole proprietorships, partnerships, limited liability businesses, public limited liability businesses, and cooperatives, highlighting their features and structures. Furthermore, the report explores organizational structures, specifically functional and divisional structures, and their impact on business operations. It also presents a PESTLE analysis to identify external factors such as political, economic, social, and technological influences on business performance, using the Sainsbury Company as a case study. This report aims to provide a clear understanding of the business environment and the factors that shape it.