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 Unit: Business and the
Business Environment
(Level 4)
Week 2
P2 Explain the size and scope
of a range of different types of
organisations.
Learning Outcome -

Recap: previous lesson(P1)

Introduction
 Size of organisations

Size of organisations could be assessed by

following criteria:
1. turnover/revenue
2. Employment(number of employees)
3. value of assets
 1-turnover/revenue
Top UK firms by Revenue(Sep 2017)

Company Industry Revenue US$

1. Royal Dutch Shell Oil and gas 484,489

2. BP Oil and gas 386,463

3. Glencore Xstrata Conglomerate 220,030

4. HSBC Banking 110,141

5. Tesco Retail/supermarke 103,839

t
Source:
https://www.economicshelp.org/finance/top-10-co
mpanies/
 2-value of assets
Top 5 UK firms /ranking by value of assets
(April 2018)
Company Industry Market value of
asset
(£ million)
Royal Dutch Shell Oil and gas 213,609.3

HSBC Holdings Banking 143,879.8

BP Oil and gas 107,062.8

British American Tobacco Tobacco 92,441.4

GlaxoSmithKline Pharmaceutical 72,050.2

Source:
http://www.stockchallenge.co.uk/ftse.p
hp
3-Employment(number of
employees)

 Micro Business = less than 10

employees & turnover under £2 million
 Small Business = less than 50
employees & turnover under £10 million
 Medium Business = Less than 250
employees & turnover under £50 million
 Large Business: 250 or more persons
employed.
 Top 12 British Employers(sep2017)
Ran Sector Employees
k
1 NHS (England) Health 1,400,000

2 NHS Scotland Health 160,000

3 British Army Military 125,430

4 Department of Work and Pensions Welfare 111,000

5 . HM Revenue & Customs Taxation 76,890

6 NHS Wales Health 72,000

7 Ministry of Justice Law 68,670

8 Ministry of Defence Military 65,000

9 Metropolitan Police Service Police 50,000 (approx.)

10 Royal Air Force Military 37,200

11 Network Rail Transport 34,000

12 Tata Steel Steel Industry 26,000

Classroom group activity 1
Carry out online research to find real examples of Micro, Medium
and Small Businesses.

Category name of Company no of Revenue of

organisation/ website employees company

Micro

Medium

Small
Scope of organisations

Scope of organisations depends upon:

 No of Branches
 Area of operation: e.g.
national/international/regional
 No or products/services : e.g.
single/ various
 Classroom group activity 2

 Using template given in the next slide,

carry out research in order to know size
and scope of your selected organisations.
 You may use same organisations which
you have selected in Previous
task/lesson(P1).
 This exercise will help you to complete P2
 Size of your selected
organisations
Type Name of private Name of pubic sector Name of voluntary
sector organisation organisation …….. sector organisation
……………….. ……………
No of
employees
Turnover £ £ £
Value of £ £ £
assets

Your Large/small/medium/m Large/small/medium/

opinion icro ? micro ? Large/small/medium/
micro ?
 Scope of your selected
TYPE organisations
Name of private Name of pubic Name of
sector sector voluntary sector
organisation organisation organisation
……….. …………….. …………….

No of
outlets/branches

Operational area

No of
products/services

Your opinion Wide/narrow? Wide/narrow? Wide/narrow?

References

 Bartlett, C.A. and Ghosal, S. 1989:

Managing Across the Borders: The
Transnational Solution, Hutchinson,
Business Books.
 Tutor2U (2017) Business Environment ,Available at :
http://tutor2u.net/business/strategy (accessed on
16.05.2018)
 Business Case Studies (2018). Types of businesses
Available at :
 http://businesscasestudies.co.uk/business-theory/s
trategy/types-of-businesses.html
(accessed on 16.05.2018)
Independent learning

 Size and Scope of Organisations

 Video duration: 22:05

 Size and Scope of Organisations
https://www.youtube.com/watch?v=9B5LAFCIhJw
Thank You

Discussions/Questions/Comment
s
Next Class P3

P3 Explain the relationship

between different
organisational functions and
how they link to
organisational objectives and
structure