All About Business

BUSINESS IS DEFINED AS…
• An Economic Activity. It is an economic activity as it is undertaken
with the aim of earning money and livelihood and not for
psychological satisfaction.
• Profit Earning. The main purpose of business is earning profit. If the
profit motive is missing in a transaction, then it cannot be considered
as business transaction. For example, goods given in charity is not a
business activity. No businessman can survive without earning
sufficient profit.
• Uncertainty of risk. An important feature of business is the presence
of risk factor in the transaction. There is always a possibility of losses.
It is not certain that a businessman will always earn adequate profit,
as market conditions may change, customer's taste may change.

• A written document describing the nature of the business, the sales
and marketing strategy, and the financial background, and
containing a projected profit and loss statement .
• Business may be understood as the organized efforts of enterprise to
supply consumers with goods and services for a profit. Businesses
vary in size, as measured by the number of employees or by sales
volume. But, all businesses share the same purpose: to earn profits.
• An organization or economic system where goods and services are
exchanged for one another or for money.

 According to Investopedia, a business is an organization or
enterprising entity engaged in commercial, industrial, or professional
activities.
 Businesses can be for-profit entities or nonprofit organizations that
operate to fulfill a charitable mission or further a social cause.
 Business is also the organized efforts and activities of individuals to
produce and sell goods and services for profit.

BREAKING DOWN BUSINESS…
• Generally, a business begins with a business concept (the idea) and
a name. The business name can be one of the most valuable assets
of a firm; therefore, careful consideration should be given when
choosing it.
• Businesses most often form after the development of a business plan,
which is a formal document detailing a business's goals and
objectives, and its strategies of how it will achieve the goals and
objectives. Business plans are almost essential when borrowing
capital to begin operations.
• It is also important to determine the legal structure of the business.
Depending on the type of business, it may need to secure permits,
adhere to registration requirements, and obtain licenses to legally
operate.

BUSINESS STRUCTURES
• A sole proprietorship, as its name suggests, is a business
owned and operated by a single natural person. There is no
legal separation , the tax and legal liabilities of the business
are that of the owner.
• A partnership is a business relationship between two or more
people who join to conduct business. Each partner
contributes resources and money to the business and
shares in the profits and losses of the business.
• A corporation is a business in which a group of people act
together as a single entity; most commonly, owners of a
corporation are shareholders who exchange consideration for
the corporation's common stock.

SOLE PROPRIETORSHIP
Advantages:
• It's the easiest to set up because it
doesn't require the filing of any
papers.
• Profits are only taxed once on the
owner's personal tax returns.
• The owner has complete control of the
business and makes all the decisions.
• Assets are easy to liquidate upon the
death of owner.
.
Disadvantages:
• The owner is exposed to
unlimited legal liabilities.
• Proprietorships cannot accept
capital from outside investors.
• Borrowing money is more
difficult. Banks are reluctant to
make business loans to sole
proprietorships.
• Business will be liquidated when
owner passes away

PARTNERSHIPS
Advantages:
• They're easy to form.
• A partnership can bring together a
group of individuals with different
talents to share in the responsibilities of
running a business.
• If the partnership agreement permits, a
partnership could continue to exist if
one of the partners dies.
Disadvantages:
• Partners are exposed to unlimited
liabilities.
• Owners will not always agree on
decisions.
• Share in the profits of the
business, but will not feel they
are being adequately
compensated for their
contributions and services.
• Are you concerned about the
unlimited liability exposure that
risks

CORPORATIONS
Advantages:
• Owners do not have personal
liability for debts of the
corporation.
• Has more access to financial
resources. Can sell stock to
raise capital, obtain bank loans
or issue bonds.
• Corporations are better able to
attract more talented and skilled
employees .
• The corporations continues to
exist separately from the lives of
its stockholders.
Disadvantages:
• A C Corp is the most complex
business structure and requires
a lawyer to set up.
• Earnings could be subject to
double taxation.

FRANCHISES
• Franchises are businesses bought by individuals with some
percentage of profit going back to the parent company. Franchises
must strictly follow the set guidelines of the main corporation. Most
entrepreneurs have resulted in franchising since it’s a good way of
expanding the business without the risk of incurring debts; this is
because business essentially grows from the resources of another
party.
• Since the franchise has a business stake, he will ensure committed
management and operational quality thus no need to utilize resources
on training and hiring of a manager.

MULTI-NATIONAL CORPORATIONS (MNCS)
• These are global or international businesses that manufacture and
sell products in different countries. MNCs are large and all their
worldwide operations centrally controlled. With big investments in
foreign countries, Multi-national corporations import goods and
services, allow local producers in a foreign country to manufacture
their products and have assembly operations and manufacturing
plants in foreign countries.
• Examples of These Corporations include Coca-Cola, Nike, AOL,
Honda, Toshiba et cetera. They are known to create goods and
services and job opportunities that would otherwise not be available
in the countries in which they operate.

MNC’S
Advantages:
• They can help a country in many
ways.
• They are cost-effective.
• They can create jobs and
wealth.
• They help other companies.
• They adhere to the best brand
standards.
• They ensure minimum
standards.
• They allow for a wider market.
Disadvantages:
• They might unfavourably
dominate the market.
• They might exploit the
workforce.
• They take advantage of consumer
expense.
• They are willing to gain
ridiculous profits at any cost.
• They strive for a monopolized
business.

BUSINESS PROCESS OUTSOURCING (BPO)
• Business process outsourcing (BPO) is a subset of outsourcing that
involves the contracting of the operations and responsibilities of a
specific business process to a third-party service provider. Originally,
this was associated with manufacturing firms, such as Coca-Cola
that outsourced large segments of its supply chain.
• BPO is typically categorized into back office outsourcing, which
includes internal business functions such as human
resources or finance and accounting, and front office outsourcing,
which includes customer-related services such as contact centre
(customer care) services.[

ADVANTAGES OF BPO’S
• Business risks alleviation is one of the key advantages of BPO
services. Certain risks and responsibilities of business entities are
shared with BPO providers. Since the third party vendors are
specialized in the field, they can analyze the risks involved and plan
procedures to lessen these.
• Outsourcing helps corporates get away from the process of hiring
employees and maintaining the required infrastructure. Thus
operational and recruitment costs are reduced to maximum.
Moreover, business process outsourcing companies ensure excellent
expertise to support technical problems and to provide desirable
guidance.

ADVANTAGES OF BPO’S
• Outsourcing document scanning and data entry work to reliable BPO
firms often allows more time for business professionals to engage in
core business activities, thus creating new revenue streams. Back
office outsourcing also helps business enterprises focus more on
customer care, sales and market.
• Flexible services are provided to meet the changing demands in the
market. Outsourcing also supports company procurements,
consolidations and joint undertakings.

DISADVANTAGES OF BPO’S
• Even if BPO companies guarantee data security, there are high risks
of exposing confidential data mainly associated with human
resources, recruitment, payroll, and account services.
• If the right BPO provider is not chosen, it is difficult to get the
expected final outcome. There may be issues related to linguistic
variations, time frames and classification of responsibilities.
Sometimes, outsourcing leads to loss of control above the corporate
business processes.

SPECIFIC CONCEPTS OF BUSINESS
1. The Importance of Mental and Physical Health
This means eating right, getting enough sleep, exercise, building strong
ties with friends, family, and community, and, as much as possible,
to minimize stress! The most important relationship you will have in
your life is with yourself, so treat yourself well to make life worth
living.
2. The Joy of Business
Business is fun. Entrepreneurs coordinate resources — land, labor,
capital, and ideas — and through the craft of entrepreneurship
organize them in such a way as to provide a product or service to the
public at a profit. If being in business is not enjoyable, this is the
wrong profession for you.

3. Opportunity Recognition
There are two ways to find opportunities: the external method, where you
see opportunities where others see obstacles and problems, and the
internal method. To tap into this, make a list of your hobbies,
interests, and skills in one column, and business opportunities they
could generate in another. Whenever you encounter a problem, think
of how it could be solved.
4. The Economics of One Unit
This is the cornerstone of a business plan. Many young people dream of how
they will make millions. Instead, think of how you will develop and sell one
product or one hour of service and make a profit.

5. The Laws of Supply and Demand
The law of supply and demand is the most important economic concept
of all! Discovered by Alfred Marshall, in 1890, the internal method.
The laws of supply and demand interact to determine prices, which
communicate information to entrepreneurs and consumers about the
best way to allocate resources.
6. Vision, Mission, Strategy, and Tactics
Get your economics of one unit accurate and simple. Write down your
strategic goals making them measurable with numbers and a
timeline. Your strategy can be presenting a product at a lower cost
than your competitor, having a better focus on the consumer market,
or differentiating it in the marketplace. Your tactics will use your
resources to achieve your strategic goals.

7. Don’t Compete, Create a Competitive Advantage
How will you compete? What will be your business edge? How can you
create a winning business model with an advantage?
Find out what everyone else is doing and then do something different.
Your competitive advantage can be based on a unique skill,
intellectual advantage, or by selling at an unusual time or location.
The alternative to uniqueness is to be ordinary, and sell the same
product at the same price as everyone else, making minimal profits if
any at all.

8. Wealth Creation, Risk, and Uncertainty
• Most wealth is created through a business opportunity combined with
ownership. Being an entrepreneur without ownership can be a
nightmare-other people make the profit on your insights. The sooner
an individual understands the difference between salary and profit,
the better. Ownership of future profits can be sold for a multiple of
earnings.
• Salaries and wages are compensation for work in the present, and
hence are worth less than profits — which are projected into the
future. All investments take place in uncertain world with risk. The
investment of resources to create a business needs to be wisely
balanced against the risk involved.

9. Marketing. Putting Yourself in the Customer’s Shoes
If you listen to your customers and ask honest questions, they will tell
you they need and want. Always be building your brand through
excellent products, customer service, and good communications.
Marketing is the process of creating a product or service that meets
the needs of consumer profitably

10. Time Management
The most important resource of all is time. Time is precious. Once spent, you can
never get it back. Do not waste it. By planning how you will spend your time for
the coming day, week, month, and year, you will be much more likely to achieve
your goals and live a productive and positive life.
11. Leadership and giving back
Every great business leader is aware of the community around them and looks to
satisfy a community need. Philanthropy is good business, and if you are known
as someone who cares about your community, more people will want to do
business with you.

12.Goal Setting
Goal setting is something every young person should practice every week.
Having long-term goals (ten years), intermediate-term (five years), and
short-term (one year), and immediate (the next month) is absolutely
crucial for success.
13.Public Relations, Media, and Communications
Communications strategy is a key asset for a young entrepreneur to
understand. Learning to communicate to other people by being
covered by the media is valuable. The key concept here is to learn the
craft of story development.

14. Thinking Globally
The world is much smaller now, and even young entrepreneurs need to
think globally, taking into account markets and suppliers worldwide.
Being respectful and educated on different cultures will be critical to
success. Travel for young people is also important, to develop an
international perspective and knowledge of foreign markets.
15. Be Prepared for Failure and Success
Many business ventures do not work out, often through no fault of the
entrepreneurs. Your business success or failure will not be a
reflection of your self-worth. Be prepared for setbacks in any venture
you undertake. Be mentally strong and positive at all times.

16. How to Write a Business Plan
There is an adage that goes, “Failing to plan is planning to fail.” A lot of
young people have visions and dreams. By putting your vision and
goals in writing, your chances of success will improve.
17. The Golden Rule
Treating others as you would have them treat you will help you achieve
success in life, both personal and financially.

BUSINESS IN A PHILOSOPHICAL FRAMEWORK
• People who teach business ethics seem locked between two general
approaches: an applied philosophy approach that emphasizes the
application of abstract ethical theories and principles to specific
cases, and the case method approach that leaves the students
without any more general theoretical framework with which to
approach ethical issues.
• Classical American Pragmatism, understood as a school of
philosophical thought, links these two approaches by providing a new
grounding for moral theory in which moral rules are understood as
working hypotheses abstracted from concrete situations and moral
reasoning demands the return to concrete situations as the
foundation for moral decision making that is inherently contextual.

BUSINESS IN A PHILOSOPHICAL FRAMEWORK
• Most people who teach business ethics probably fall into one of two
categories: those who emphasize abstract ethical theories embodying
universal principles and apply these theories and their resulting
principles to specific cases, and those who emphasize studying cases
without any extensive theoretical background. The problem with the
latter approach is that it results in a “my opinion versus your
opinion” type of analysis that leaves the students without any
theoretical framework with which to approach ethical issues.
• Thus moral decision making is bottom up rather than top down, and
a sense of moral rightness comes not from the indoctrination of
abstract principles but from atonement to the way in which moral
beliefs and practices must be rooted naturally in the very conditions
of human existence.

THE PHILOSOPHICAL TRIAD OF BUSINESS
• The Philosophical Triad of business consists of three main
components namely, philosophical imperatives, ethics and social
responsibility.
• The philosophical imperatives provides the established and accepted
principles of business contain in management thought and expressed
in business strategies and goals. For example, the implementation
of the Total Quality Management (TQM) in our company wherein the
purpose is to achieve higher or better quality of products and services
and this methodology is part of the business strategies and goals of
our company in making sure our customer is satisfied through
continuous improvement.

THE PHILOSOPHICAL TRIAD OF BUSINESS
• Secondly, Ethics specifies behavioural mode for business in which
it tells what business ought and ought not to do according to the set
of standards against which business practices are compared and is
therefore the mode of behaviour of business.
• And last, Social Responsibility which gives quality to business wherein
the company has an obligation to act for the benefit of society at
large. This is important and useful in the our company because it
shows to both consumers and the media that the company capture
an interest in wider social issues that have no direct impact on profit
margins.

BUSINESS AND THE INDIVIDUAL
Here are five ideas to keep in mind:
1. The reality is that the "flower" does not live forever. It has to run the
course of the natural evolution of business. To use the analogy of the
flower, the "petals" have to drop off and die. The seeds must then
become the catalyst for new ideas and new growth, in order for the
next business model to grow and flourish.
2. Many companies get caught up in an unrealistic, perpetual growth
phase, and they believe it will go on forever. The harsh reality is that
it almost never does. Even the most long-standing, successful
companies will tell you that, as time went on, they had to rethink,
reorganize, and retool their ideas and business models in order to
remain relevant in the marketplace.

3. The expectation from shareholders and management is that they must
have continual growth year after year. When this happens, the
mounting pressure for a burgeoning bottom line can become
intolerable, affecting those responsible for the bottom line in ways you
can't imagine. And yet most times, those in positions of leadership in
these companies try to take it on and cope with it all in the name of
profits, whether it makes sense or not.
4. In order for new things to emerge, there has to be a slowing down or
some form of a stabilization or regression phase. It's completely
unrealistic to anticipate expansion year after year, whether it is in
growth or revenue. There is a "season" for maturity, decline, and re-
growth in every business. It doesn't have to mean the total demise of
a company once that cycle starts to wane. Even within the company
there may be product lines that enjoy success for a time and then
have to "die," replaced by new, more relevant products or innovations
that may be more in tune with consumer trends.

5. How do you effectively deal with a decline or renewal phase? Ask better
questions and get better answers. Keep listening and do less
talking. Look at what competitors are doing within your industry and
get even more inspiration by getting out of your industry and observe
what others are doing. While it's essential to be confident in your
company's future, change is always imminent so be curiously aware,
and humble in the notion that you can learn to do better.

WHAT TO REMEMBER IN A BUSINESS?
 Positioning is one of the hardest marketing concepts to not only
understand, but to do right, as I detailed in my recently-completed
series. It’s very conceptual, highly theoretical, and mostly
emotional. Not everyone does well with that combination.
 It’s also very confusing, especially when it’s not well crafted and when
coordinated with other parts of defining your business and managing
and marketing it. It occurred to me that perhaps I should take a step
back again, and show how positioning is different from other parts of
your business plan and other elements you are thinking about for
your business.
 Many people continue to get positioning mixed up with other business
concepts, so here is the entrepreneur’s guide to business concepts,
with simple definitions of common elements of a business plan --
quick phrases to help clarify and solidify terms that many get
confused.

 Mission
Your core purpose -- why you started
the business. This should rarely
change.
 Vision
A lofty ideal of what your organization
does. It’s not the “why” of a mission
but more a “what” you do to
accomplish that mission.
 Values
The principles by which you run your
business. If you have business
values, and you should, you also
need to communicate them to your
customers.

 Voice
How you represent your business and how you talk to your
customers. It’s one thing to have a voice, but it’s even more important
to consistently apply it in all that you do.
 Objectives
What you are seeking to accomplish in a given year. You are likely to
have multiple objectives that change frequently over time.
 Strategies
How you plan to accomplish your objectives. You are likely to have
multiple strategies for multiple objectives.
 Tactics
Specific programs you put in place to fulfill your strategies to
accomplish your objectives. Tactics should be constantly changing to
keep up with what you have to get done for your business.

IMPORTANCE OF BUSINESS
Over the years, the size of business has
expanded. The use of machinery is
increased. The working business is being
computerized very rapidly. So importance of
business in the present day of world can be
judge from the following activities:-
01- Mass production of goods
The use of automatic machines, new materials
and new processing methods have not only
lowered the cost of production of goods but
also helped the producers in producing
goods in desired quality and quantity.

02- Expansion of market
In the modern world, goods are produced according to the needs of the
customers. The business tries to satisfy the customers both within and
outside the country be developing products according to the tastes and
purchasing power of the customers. Therefore, markets have expanded
consumption of goods due to increase in number of customers all over
the world.
03- Provision of credit by banks
The Commercial banks and specialized institutions
are providing credit facility to the traders for
producing goods and doing business on large
scale.

04- Communication and transport
The fast developed means of Communication and transport helping the
traders in these days in providing goods to the customers at the right
times, right place and right price.
05- Innovations
Today all the time busy in business making improvements by introducing
new products as well as new methods are very helpful for quality of
products and reducing cost.

06- Employment
Business has generated employment on large scale both
in the rural and urban areas.
07- Source of revenue
Business is providing revenue to the state due to which
the government maintains law and order situation,
undertakes defense and carries on welfare and
development activities. Business pays a large share of
taxes to government.

08- Raising standard of living
Business also helped the people to earn living either as owners of the
business or employees. Higher incomes have lead to increase in the
standard of living in people.
09- Business supplies services
Services occupy an important role in modern business life. The major
services which are growing in importance are banking and finance,
insurance, medical and health, education, legal, domestic servants,
engineering and other professionals etc. All the services which
perform simple or difficult task for earning profit are regarded an
important part of business.

10- Insurance
The various types of business risks which may happen due to fire , theft,
flood, earthquake, strikes etc. can be insured and the loss if any
arising out of the risks an be recovered. So insurance has given
stability to the business.
Conclusion
In the modern world, all the above mentioned elements play important
role in business. Business has increased the comforts of life of the
people by mass production and distribution of goods. The banking
sector, insurance companies, the fast means of communication and
transport play a vital role in business in the present day of world.

COSTCO. / SNR MEMBERSHIP SHOPPING
MISSION:
To enrich Filipino lives by
providing quality products
and excellent services that
are affordable, accessible
and enjoyable.
VISION:
To be a leading retail
and investment holding
company driven by our
passion to serve the
communities where we
operate and our
commitment to deliver
real growth for the
benefit of our
stakeholders.
CORE VALUES:
• Accountability and Integrity
 Genuine Partnership
 Customer Satisfaction
 Social Responsibility

A Brief History
• Cosco Capital, Inc. is one of the fastest growing multifaceted companies in the
country today. Before it came about as Cosco Capital, Inc., it was formerly
known as Alcorn Gold Resources Corporation and was incorporated on January
19, 1988 as Alcorn Petroleum and Minerals Corporation.
• The company envisioned to thrive beyond its prime purpose of an oil and mineral
exploration and development corporation and eventually became a retail holding
company on January 13, 2000. It shifted to a broader corporate interest, it then
became a full fledged retail holding company and changed its name to, COSCO
CAPITAL, INCORPORATED.

CORPORATE SOCIAL RESPONSIBILITY
• Cosco Capital, Inc. values the welfare and the needs of its community.
The company strongly believes in making a difference in the lives of
the youth through the programs developed under Luis Co Chi Kiat
Foundation Inc. (LCCKFI).
• Luis Co Chi Kiat Foundation Inc. is founded and registered on March
28, 2003, by the children of the late Luis Co Chi Kiat. The foundation
was established to realize Mr. Co’s concept of work and productivity.
• The foundation’s core leaned towards providing educational programs
for the youth because they recognized the value of education-a ticket
to a better life and future.

• They created scholarship programs that benefitted not only
the community but also its internal stakeholders. The
foundation started Puregold’s Educational Scholarship
Program on 2012 and it continuously benefitted the children
of Puregold employees. It was also extended and offered last
2013 to the children of S&R employees. The presence of their
partnership extends up to the Local or State Universities and
Colleges in the country.
• The foundation will widen its reach to provide more help to
the community. With its continuing commitment to serve,
more Filipino youth can have access to quality education and
quality life.
• Currently, the foundation has 238 scholars for the year to date across State
Universities and other partner schools.

All About Business

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