BUSINESS

Presented by

Deepak RathoreIntramantra Global Solution PVT LTD,Indore

http://intramantra.com

BUSINESS

INTRODUCTION:- INTRODUCTION:-

Human beings in order to satisfy their Human beings in order to satisfy their needs take up many activities. These activities can needs take up many activities. These activities can be broadly classified as economic and non-be broadly classified as economic and non-economic activities. Business comes under economic activities. Business comes under economic activity. It means regular production or economic activity. It means regular production or purchase and sale of goods, with an intention to purchase and sale of goods, with an intention to earn profit. It includes activities such as farming earn profit. It includes activities such as farming mining manufacturing, banking, transport, mining manufacturing, banking, transport, construction etc. which are taken up with a profit construction etc. which are taken up with a profit orientation. orientation.

MEANING:-• Business means employment, trade, commercial activity

or industrial concern. It may be defined as

• “HUMAN ACTIVITY DIRECTED TOWARDS PRODUCING OR ACQUIRING WEALTH (PROFIT) THROUGH BUYING OR SELLING GOODS.”

• The modern concept believes in the fact that business is a long lasting social and economic institution. Business in order to survive and grow has to make profit along with meeting other societal obligations. New concept of business is “PROFIT THROUGH SERVICE." Thus along with economic objectives of profit maximization, social responsibilities of business towards various stake holder like owners, workers, consumers, society and government have gained a considerable importance.

• According to Prof. OWENS “Business is an enterprise engaged in the production and distribution of goods for sale in a market or offering services for a price.”

CHARECTERISTICS: -            Business is considered as a system, which is composed of Business is considered as a system, which is composed of many subsystem and elements, which are independent but at same many subsystem and elements, which are independent but at same time interrelated.time interrelated.

  

    Business is viewed as a long lasting commercial institution. Business is viewed as a long lasting commercial institution. This all the strategies and decision in the business and not merely This all the strategies and decision in the business and not merely limited to short term gains but a directed towards the long-term limited to short term gains but a directed towards the long-term business applications.business applications.

      Business invariably involves exchanges of goods or Business invariably involves exchanges of goods or services for money. The customers must derive some satisfaction services for money. The customers must derive some satisfaction out of the products/services to make them buy the same. Thus, out of the products/services to make them buy the same. Thus, business involves exchange of goods or services for consumer business involves exchange of goods or services for consumer advantage and revenue (income).advantage and revenue (income).

  

  

Business system uses the various inputs (Men, Business system uses the various inputs (Men, material technology, information, energy) to create usable material technology, information, energy) to create usable goods/services as output to meet the needs of customer.goods/services as output to meet the needs of customer.

Business influences the standard of living (Quality of work Business influences the standard of living (Quality of work life) of the people and it is the leading indicator of the development life) of the people and it is the leading indicator of the development of the nation.of the nation. 

         Business involves risk and it is considered that the Business involves risk and it is considered that the profit (surplus of revenue over expenditure) is the reward for risk profit (surplus of revenue over expenditure) is the reward for risk taking. The common risks that are perceived by the business are taking. The common risks that are perceived by the business are changing technology, changes in consumer tastes and changing technology, changes in consumer tastes and preferences, demand, supply conditions, competitive situation, preferences, demand, supply conditions, competitive situation, government and regulatory policies etc.government and regulatory policies etc.

    TThough profit motive “Is not the only purpose hough profit motive “Is not the only purpose for carrying out the business, it has to generate profits for for carrying out the business, it has to generate profits for continuation and growth of business.”continuation and growth of business.”

BUSINESS CYCLE: - (1)Prosperity phase: - During prosperity for overall business the

demand potential is very high .On the basis of high demand the various business continues to prosper because of demand industrialist they are very keen and enthusiastic for more and more investment into their business because they know that their investment is going to be recovered fully.In this way an overall business outlook appears to be very encouraging.  

(2)Depression phase: - The phase of prosperity may last for

seven to ten years but after that a stage of business depression sets in. During this stage demand potential for various businesses appears to be very low. This has a direct impact on profit volume of the businesses .For many businesses their profit earning potential get reduced while many other businesses they confine to earn losses. During the stage of business depression industrialist are not very keen for additional investment into their businesses .As a result of it employment potential always appears to be very low .The stage of business preparation may also last for a comfortable time span of seven to ten years and after that again the stage of business prosperity shall set in.

COMMERCE

SCOPE OF BUSINESS

     

1.Genetic industry 2.Extractive Industry 3.Manufacturing industry 4.Construction industry 

TRADE  1.Wholesale 2.Retail 3.Foreign trade 

SUPPORT TO TRADE1.Transport2.Communication3.Banking4.Insurance5.Ware housing6.Advertising7.Stock exchange 

INDUSTRY

BUSINESS

1.Profit earning

2.Production of goods & services

3.Creation of markets

4.Technological improvements

1.Creation of employment

2.Proper utilization of natural resources

3.Production & supply of Quality Goods

4.Availability of Goods

1.Survival

2.Growth

3Recognition

ECONOMIC

1.Helping National Efforts

2.Development of small Entrepreneurs

3.National Self-Sufficiency & Export Development

4.Development of skilled Personnel

HUMAN SOCIAL ORGANIC NATIONAL

OBJECTIVES OF BUSSINESS

1Employees welfare & satisfaction

2.Shareholders satisfaction

3.Consumers satisfaction

4.Helpful to government

Thank You !!!