2. BUSINESS -MEANING
The word Business simply means ‘the state of being busy’. In practice, business
includes certain economic activities in which people are busy or engaged. Such
activities relate to production, distribution, trading or exchange of goods and services
to satisfy the needs of people so as to earn income or profit.
3. BUSINESS -MEANING
A business is created to provide products or services to customers. If it can conduct its
operations effectively, its owners earn a reasonable return on their investment in the
firm. In addition, it creates jobs for employees. Thus, businesses can be beneficial to
society in various ways.
4. DEFINITION
“Business is an institution organized and operated to provide goods and services to
society under the incentive of private gain.”
—B.O. Wheeler
“Business means any human activity directed towards producing or acquiring wealth
through buying and selling of goods”.
Prof. L.H. Hanrey
5. DEFINITION
“Business comprises all profit seeking activities and enterprises that provide goods and
services necessary to an economic system. It is the economic pulse of a nation, striving to
increase society’s standard of living. Profits are a primary mechanism for motivating these
activities”.
K. Ashwathappa
“Business is an economic activity carried on by human to earn profit in a continuous
manner under the purview of rules and regulations of the country”.
6. ACTIVITIES OF BUSINESS
Creating demand for the products and services before producing and purchasing the goods.
Production of the goods and converting the economic resources into goods and services.
Continuous research and development in order to improve the quality of goods and services.
Activities to ensure that the goods and services not only reach the consumers but also satisfy
them in fulfilling their needs.
7. NATURE OR CHARACTERISTICS
HUMAN ACTIVITY
SALE, TRANSFER OR EXCHANGE OF GOODS AND SERVICES FOR
VALUE
CONTINUITY OF DEALING
CREATION OF UTILITY
PROFIT MOTIVE
UNCERTAINITY AND RISK
8. GOALS OF BUSINESS
Profit - Making profit is the primary goal of any business enterprise.
Growth - Business should grow in all directions over a period of time.
Power - Business houses have vast resources at its command. These resources confer
enormous economic and political power.
Employee satisfaction and development - Business is people. Caring for employee
satisfaction and providing for their development has been one of the objectives of
of enlightened business enterprises.
Quality Products and Services - Persistent quality of products earns brand loyalty, a
vital ingredient of success.
9. GOALS OF BUSINESS
Market Leadership - To earn a niche for oneself in the market, innovation is the
key factor.
Challenging - Business offers vast scope and poses formidable challenges.
Joy of creation - It is through business strategies new ideas and innovations are
given a shape and are converted into useful products and services.
Service to society - Business is a part of society and has several obligations
towards it.
11. ECONOMIC OBJECTIVES
Earning of Profits - Profits are reward to the entrepreneur and it is needed to
provide funds for future growth.
Satisfaction of Customers -The survival of the business depends upon the
satisfaction of customers. Peter F. Drucker has rightly said, “There is only one
one valid definition of business purpose, i.e., to create a customer.”
Innovation -Innovation means developing new technology, new products and
their multiple uses.
Effective Utilization of Resources - Business requires the use of men, machines
and materials which are considered scarce resources.
12. SOCIAL OBJECTIVES
Supply of Quality Goods at Fair Prices – The business must supply quality
products as desired by the customers.
Adoption of Fair Trade Practices – The business should follow fair business
practices at all times. It should avoid anti-social practices like hoarding, black-
black-marketing, over-charging the buyers, etc.
Generation of Employment Opportunities – Every business should grow and
expand its operations to create new jobs for the society.
13. SOCIAL OBJECTIVES
Community Service – Modern business organizations engage in
community service to fulfil their social responsibility and thereby enhance
their public image
Example: Running dispensaries and schools, encouraging social
setting up training centres for the unemployed youths in the
backward areas.
Protection of Environment – Every business house should ensure
local surroundings
14. HUMAN OBJECTIVES
A business is directly linked with two important groups, namely,
(a) customers, and
(b) employees.
Both these groups must have a feeling of having been treated as human
beings by the business enterprise.
15. The employees look forward to the business enterprise for the following
objectives:
The employees are treated as partners in the business and not as inferior
inferior lot; they should get fair wages and healthy working conditions;
conditions;
They are able to acquire and develop new skills in the process of
employment; and
They derive job satisfaction.
Customers expect courteous service and fair dealings from the business
16. NATIONAL OBJECTIVES
Every business enterprise must contribute to the national goals such as:
Achievement of self-sufficiency in production of goods and services,
Import substitution and export promotion,
Development of small scale and ancillary industries,
Development of backward regions,
Economic development of the nation.
17. NATURE AND SCOPE OF BUSINESS
Vastness
Globalization
Challenges to the Service Providers
18. NATURE AND SCOPE OF BUSINESS
An Interdisciplinary Field
Information Overload
Diversification
Foreign Capital and Technology
19. NATURE AND SCOPE OF BUSINESS
Emphasis on Diversity
Environmentalism
Competition
The Rise of the Rural Market
