WHAT IS BUSINESS

ORIENTATION PROGRAM JUNE 2012 LECTURE -01

DIVISION OF HUMAN ACTIVITIES

UNDERTAKEN TO EARN MONEY DERIVE PERSONAL SATISFACTION

MEANING OF ECONOMIC ACTIVITIES

ACTIVITIES WHICH ARE UNDERTAKEN BY PEOPLE WITH THE OBJECT OF EARNING MONEY ARE KNOWN AS ECONOMIC ACIVITIES PRODUCTION , EXCHANGE, DISTRIBUTION OF GOODS AND SERVICES EXAMPLES OF ECONOMIC ACTIVITIESPRODUCTION, DISTRIBUTION,SALES,TRANSPORTATION,STORAGE , ADVERTISEMENT, LEGAL PROFESSION ETC

3 CATEGORIES OF ECONOMIC ACTIVITIES

PROFESSION EMPLOYMENT BUSINESS

PROFESSION - MEANING
ACTIVITY THAT REQUIRES SPECIAL KNOWLEDGE AND SKILL TO BE APPLIED BY AN INDIVIDUAL IN HIS WORK TO EARN A LIVING. IT INVOLVES RENDERING OF PERSONALISED SERVICES OF A SPECIALISED NATURE BASED ON PROFESIONAL KNOWLEDGE , EDUCATION AND TRAINING. THE PERSONS WHO ARE ENGAGED IN PROFESSION ARE CALLED PROFESSIONALS.

PROFESSIONALS FROM MEDICINE AND LAW FIELD

DR DENTAN KOOLIE PREET BHARARA

FEATURES OF PROFESSION
SYSTEMATISED BODY OF KNOWLEDGE RESTRICTED ENTRY PROFESSIONAL ASSOCIATION DOMINANCE OF SERVICE MOTIVE CODE OF CONDUCT

IMPORTANCE OF MEDICAL PROFESSION

EMPLOYMENT
IS AN ACTIVITY IN WHICH AN INDIVIDUAL WORKS REGULARLY FOR ANOTHER FOR AN AGREED REMUNERATION UNDER THE RULES OF SERVICE. PERSON WHO ENGAGES OTHERS IS EMPLOYER . REMUNERATION PAID BY EMPLOYER TO EMPLOYEES IS CALLED SALARY OR WAGES.

EMPLOYMENT

BUSINESS
ACTIVITIES CONNECTED WITH PRODUCTION OR PURCHASE AND SALE OF GOODS OR SERVICES WITH THE OBJECT OF EARNING PROFIT. THE PERSONS WHO ARE ENGAGED IN BUSINESS ARE CALLED AS BUSINESSMEN OR ENTERPRENEURS. SIMILARLY ORGANIZATION FORMED FOR THE PURPOSE OF BUSINESS ACTIVITIES IS CALLED A BUSINESS ENTERPRISE OR BUSINESS ORGANIZATION.

ENTERPRENEUR

CONCEPT OF BUSINESS- CREATION OF

FORM UTILITY TIME UTILITY PLACE UTILITY POSSESSION UTILITY IMAGE UTILITY

FORM UTILITY

TIME UTILITY

PLACE UTILITY

IMAGE UTILITY
BENTLEY NOKIA

POSSESSION UTILITY

CHARACTERISTICS OF BUSINESS
DEALS IN GOODS OR SERVICES INVOLVES PRODUCTION OR PURCHASE AND TRANSFER OR EXCHANGE OR SALE INVOLVES CONTINUITY AND REGULARITY BASED ON PROFIT MOTIVE INVOLVES ELEMENT OF RISK- INSURABLE ,NON-INSURABLE

CHARACTERISTICS OF BUSINESS
GOODS SERVICES

DEALS IN.
GOODS SERVICES

WHY BUSINESS IS AN ECONOMIC ACTIVITY ?

OBJECTIVE IS TO SELL GOODS AND SERVICES FOR PROFIT USE OF SCARCE RESOURCES LIKE MONEY, MEN AND MATERIAL SATISFACTION OF VARIOUS NEEDS OF BUSINESSMEN AND GENERAL PUBLIC

SELF CONSUMPTION VERSUS BUSINESS ACTIVITY-MANGOES FOR SALE

SCARCE RESOURCES
CAPITAL- OWNERSHIP OR BORROWED ENGAGEMENT OF EMPLOYEES PROCUREMENT AND PROCESSING OF MATERIALS

INTERRELATION BETWEEN BUSINESS PROFESSION & EMPLOYMENT

BUSINESS

PROFESSION

EMPLOYMENT

OBJECTIVES OF BUSINESS
BUSINESS IS NOT MERE MONEY CHASING BUT IT ALSO SHOULD AIM AT SERVING THE COMMUNITY.- HENRY FORD PROFIT CAN NO MORE BE THE OBJECTIVE OF A BUSINESS THAN EATING IS THE OBJECTIVE OF LIVING.- URWICK SERVICE TO THE COMMUNITY APART FROM EARNING PROFIT

OBJECTIVES OF BUSINESS
ECONOMIC SOCIAL HUMAN NATIONAL

ECONOMIC OBJECTIVES
EARNING OF PROFIT CREATION OF CUSTOMERS INNOVATION BEST POSSIBLE USE OF RESOURCES

CUSTOMER CREATION

INNOVATION

BEST POSSIBLE USE OF RESOURCES

SOCIAL OBJECTIVES OF BUSINESS

SUPPLY OF DESIRED QUALITY PRODUCTS AVOIDANCE OF ANTI-SOCIAL AND UNFAIR TRADE PRACTICES GENERATION OF EMPLOYMENT WELFARE OF EMPLOYEES AVOIDANCE OF POLLUTION CONTRIBUTION TO GENERAL WELFARE OF SOCIETY

SPELL ALIKES/LOOK ALIKES

AVOIDANCE OF ANTI-SOCIAL AND UNFAIR TRADE PRACTICES

EMPLOYMENT GENERATION

SUPPLY OF DESIRED QUALITY PRODUCTS

HUMAN OBJECTIVES
FAIR REMUNERATION TO EMPLOYEES BETTER WORKING CONDITIONS JOB SATISFACTION GROWTH OPPORTUNITIES TO EMPLOYEES FUTURE SECURITY THROUGH PENSION AND PROVIDENT FUND TRAINING & DEVELOPMENT HELP ECONOMICALLY BACKWARD AND DIFFERENTLY ABLED PEOPLE

NOT THIS WAY PLEASE

BETTER WORKING CONDITIONS

JOB SATISFACTION ?

GROWTH OPPORTUNITIES

TRAINING & DEVELOPMENT

NATIONAL OBJECTIVES
PROMOTION OF SOCIAL JUSTICE PRODUCTION ACCORDING TO NATIONAL PRIORITIES INCREASE EXPORTS AND EARN FOREIGN EXCHANGE RESERVES FOR IMPORTS FIND OUT BETTER SUBSTITUTES FOR IMPORTS

ROLE OF PROFIT IN BUSINESS

PROVIDES MEANS OF LIVELIHOOD INCREASES VOLUME OF BUSINESS ACTS AS AN INDEX OF PERFORMANCE ACTS AS REWARD FOR RISK BEARING HELPS TO GAIN REPUTATION

IMPACT OF L P G ON BUSINESS
LPG EARLIER LPG NOW LIBERALIZATION PRIVATISATION GLOBALIZATION

How Business and Markets are changing

Changing Technology rise of an informal age ,Internet Intranet etc Globalization Impact on Indian Economy-Ripple ,Wave, Flood, Tsunami .Easy access to markets of other countries due to technological advances in transportation ,communication and shipping Deregulation :-Deregulation of industries to create greater competition ie open skies policy and rise of low cost airlines

How Business & Markets are changing

Privatization Selling of PSU shares and outsourcing of job earlier done by government ie. Telephone and electricity bill collection centers ,jobs on contract in Government Customer Empowerment-No more time-starving( 10 years for Bajaj Auto ),expectation of high quality and service and also some degree of customization Customization Mass customization MY Mitsubishi Lancer, KBC from Korean Company Heightened competition More brands , lesser number of customers (in developed economies) ,more informed customers ,complex buyer behavior ,rise in promotion cost and shrinking profit margins ,competition between the retailer and producers brands

How Business & Markets are changing

Industry convergence-Blurring of boundaries at an incredible rate ;intersection of two or more industries ie Pharma companies along with bio-tech research ;computing and consumer electronics Retail transformation Growing power of giant retailers like Wall Mart and category killers Petrol pump with retailing Disintermediation dot coms ,from brick and mortar to click and mortar

Impact Of IT
GROWTH SHALL BE ACCLERATED BY NETWORKING OLD-SCARCITY=WEALTH NEW RULES UBIQUITY=WEALTH VALUE-IT SHALL RISE WITH MARKET SHARE MIDDLEEMEN EXIST AS LONG AS THE BUYER WANTS HIM(BOOK STORES ,TRAVEL AGENTS, READYMADE GARMENT STORES SHALL EXTINCT

DIGITAL MARKETINGDISINTERMEDIATION

Impact of IT on Business
EMERGENCE OF E-BABA E-DOCTOR E-BEAUTICIAN E-TEACHER E-ENTERTAINER ASHOK JHUNJHUNWALA-TELEMEDICINES E-COMMUNITIES CHANGE FROM CITIZEN TO NETIZEN

Impact of IT on Business
MASS PRODUCTION TO MASS PERSONALISATION HUMAN ATTENTION MOST VALUABLE COMMODITY CHANGE IS NOT NECESSARY FOR LIFE ,CHANGE IS LIFE-ALLWYN TOFFLER

Impact of IT on Business
Sex, Age ,Religion, Experience will loose relevance So will nationality and caste Emergence of social issues like-web -holics, rise in unemployment, new dimensions to human relationship Offices may work like club houses

Impact of IT on Businesses
Nicholas Negroponte-lifestyle in 2015-smart nails ,self cleaning shirts driverless cars ,intelligent door knocks A computer a day will keep the doctor away Life styles-natural-1950 -electronic -1950-2000 -internet -2000 and beyond

Impact of IT on business
Will have extended enterprises To deal with informed customers-tourist guide in trouble due to a boy with smart-phone Paperless office Business at any hour Virtual showrooms Logistics will be a big business

Impact of IT on Business
Intelligent e-nterprises Emergence of service sector Newer unique types of services ie one way tourism Knowledge will double in 5 years Convergence of pc ,telephone and television Embedded computer shall make PC disappear User interface will be speech based Internet will flow through cable network and wireless

Impact of IT on Business
Age of network has begun Matter shall matter less Paperless office and less paper economy Earlier-land +labor+ capital=value Now information +knowledge=infinite value Death of time Collapse of distance Nearest customer and farthest competitor is only mouse click away Emergence of new services like on-line shraddha People-They will be crown jewels