Big company

economic-dictionary

A large company is a type of company. This receives its name for presenting a workforce of more than 250 workers, as well as an annual turnover of more than 50 million euros.

The large company, as its name suggests, is the largest type of organization. This receives its name because it presents superior dimensions compared to other types of company. In Europe, the large company is one that has a workforce of more than 250 workers. Regarding the volume of turnover, this same regulation establishes that, to be considered a large company, it must invoice more than 50 million euros annually.

We must know that these criteria vary depending on the country to which we refer. Mexico, as a notable example, establishes a limit of workers at 251 employees. This, in addition to a turnover of more than 250 million pesos.

For this reason, it is convenient to contrast the type of company with the current legislation that establishes each territory, since there are divergences that prevent a homogeneous classification at a global level.

Main characteristics of the large company

As we mentioned before, these characteristics may vary depending on the country to which we refer. However, the following are the characteristics of a large company:

  • It must have more than 250 workers.
  • Its turnover must exceed 50 million euros (in Mexico, 250 million pesos).
  • It presents higher dimensions, compared to other companies of higher categories.
  • It is the largest type of company.
  • It is the least common category in the different productive fabrics of the planet.

Types of companies

Although the criteria vary between countries, the different types of companies in the world are usually the same.

In this sense, we speak of four types and a special classification:

  • Microenterprises: They are the lowest category by size. They usually have between 0 and 10 workers.
  • Small business: It is a category superior to micro businesses. By employees, they have a workforce of less than 10 workers.
  • Medium company: It is a superior category, due to its larger size. Per employees, they typically have between 50 and 250 workers.
  • Large company: It is the category that we address in this article.

On the other hand we have the SME. The SME is a special classification that is made when computing the categories of small and medium-sized enterprises.

Advantages and disadvantages of the big company

Among the advantages and disadvantages of this type of company, the following should be highlighted:

Advantage:

  • They show greater resilience and strength.
  • They have greater market power.
  • They take better advantage of economies of scale.
  • They have more income, and therefore more resources.

Disadvantages:

  • They tend to have greater difficulty in adopting strategies and maneuvering.
  • They present a high expense in terms of costs.
  • Its structure is more rigid and has a lower capacity for adaptation.
  • They have less contact with the customer.
  • Quality control in this type of company is sometimes not possible.

Large company example

Considering the aforementioned characteristics, we must know that every small company is one that meets the requirements established by the legislation of each territory.

However, as an example, we can highlight companies like Coca-Cola, Apple, Nokia, Samsung, Pepsico, Vodafone, Renault, BMW, among others.

All these multinationals, in turn, fall into the category of large companies. As we said, they represent a minority within the different productive fabrics.

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