Size of business

Presented by Saman, Scanda, Arnav, Prayag

and Harsh
Contents
Introduction About business and about our topic (small, medium and large cooperation)

classification About the ways of classification Explain how business are classified in different ways and
perspectives

Internal growth(organic) How can a business grow organically

External growth How can business grow through external reasons

Merger and takeover How can business grow through these way

conclusion Ending
Introduction
Business size is a topic that delves into the various scales at which
businesses operate within the economy. It involves studying and
understanding the different dimensions of businesses based on their
size, which can impact their structure, operations, strategies, and overall
impact on the market and society.

Small size businesses-

• Provide a definition of small businesses based on relevant criteria (e.g.,
number of employees, annual revenue). Characteristics:
• Limited workforce and resources.
• Often owner-operated.
• Close customer relationships. Importance:
• Job creation.
• Innovation and agility.
 Medium size business-
• More employees and resources compared to small businesses.
• Expanding market presence.
• Balanced between innovation and stability. Importance:
• Regional economic impact.
• Bridge between small and large enterprises.

Large cooperation-
• Extensive resources and diversified operations.
• Global market reach.
• Complex organizational structure.
• Economic powerhouse.
• Innovation on a grand scale.
 Classification(size of business)-

Number of Employees: Capital Employed:

-Small Enterprise: 10 to 49 employees.
-Medium Enterprise: 50 to 249 employees.
-Large Enterprise: 250 or more employees.
-Capital classification can vary widely depending on
industry and context. Generally, it refers to the total
amount of money invested in a business, including assets
and liabilities. Specific thresholds may differ based on
local regulations and economic conditions.

Revenue:
-Revenue-based classifications can also vary by industry and country.
-Small Business: Typically has lower annual revenue compared to larger
enterprises.
-Medium Business: Generates moderate annual revenue.
-Large Business: Generates significant annual revenue.
Selling Area:
-This classification is often used in retail and real estate.
-Local Business: Sells within a specific neighborhood or community.
-Regional Business: Sells within a larger geographic region (e.g., city,
state, province).
-National Business: Sells products or services across the entire country.
-International/Multinational Business: Sells products or services in multiple
countries.

Number of Outlets:
-Single-Outlet Business: Operates from a single location.
-Multi-Outlet Business: Operates from multiple locations (2 or more).
-
 Series 1 Series 2 Series 3
5

4.5

3.5

2.5

1.5

0.5

0
number of capital employed revenue Selling area number of outlets
employees
 Internal growth(organic)
Internal growth in business, also known as
organic growth, refers to the expansion and
development of a company's operations,
revenue, and profitability through its own
internal efforts and resources, rather than
through external means

Advantages:
-Franchising
-Maintains corporate culture
-Less risky
External growth
-External growth in a business refers to the expansion or
development of the business through activities that involve
acquiring or merging with other companies, rather than relying
solely on internal efforts such as increasing sales or developing
new products.

-There are several ways a business can achieve external growth:

1. Mergers
2. Acquisitions
3. Takeovers
4. Joint Ventures
5. Strategic Alliances
6. Licensing and Franchising
 Explanation of external growth’s
example
Merger: A merger is a business arrangement in which two or more
companies combine to form a new entity. It's a mutual decision made
by the involved companies to pool their resources, assets, operations,
and ownership into a single organization.
Takeover: A takeover, also known as an acquisition, occurs when one
company acquires a significant portion of another company's ownership,
often with the goal of gaining control over its operations. In a takeover,
the acquiring company, often referred to as the "acquirer" or "buyer,"
purchases a controlling stake in the target company, which becomes the
"acquired" or "target" company.
Thank you for the time