Chapter 2
NATURE, SCOPE AND
OBJECTIVES OF BUSINESS
BUSINESS ENVIRONMENT
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Business System
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Business System/Process
Themodelrepresentedhereisanaggregationofmacrobusiness
systemwhichmayencompassnumerousbusinessactivitiesof
varyingnatureanddimensions.Eachofsomeoftheseactivitiesmay
constituteabusiness.Forexample,themarketingstagemayinvolve
differentbusinesseslikesoledistribution,wholesaling,retailing,
transportation,warehousing,financingetc.
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Classification of Business
1.Business which produce Goods
2.Business which Produce Service
3.Business which Distribute Goods
4.Business which Facilitate Distribution of Goods
5.Business which Deal in Finance and Financial Services
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Classification of Industries
Classification Based on the Nature of Activity
Classification Based on Competitive Structure
Size-Based Classification
Use-Based Classification
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
The following table shows important industries that come under the
different categories.
I.Basic Industries
Mining and quarrying
Fertilizers
Heavy inorganic chemicals
Cement
Iron and steel basic industries
Non-ferrous basic metals
Electricity
II. Capital Goods Industries
Hand tools and small tools
Specialised equipment
Machine tools
Agricultural machinery (tractors)
Heavy electrical equipment
Electric cables and wires
Rail road equipment
Heavy vehicles
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
III.Intermediate Goods Industries
Cotton Spinning
Jute textiles
Tyres and tubes
Synthetic resins .and plastics
Man-made fibres
Dye-stuffs
Products of petroleum and coal
(petroleum refinery products)
Bolts, nuts, nails, screws, springs,
chains, etc.
Manufacture of metal
Dry cells
IV.Consumer Goods Industries
A. Consumer Durable Goods
Electric fans
Telecommunication equipment
Motor cycles and bicycles
B. Consumer Non-durable Goods
Food manufacturing
Tobacco manufactures
Cotton weaving
Paper and paper product
Rubber foot-wear
Drugs and pharmaceuticals
Soaps and glycerine
Electric lamps
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Business Process
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Mission, Objectives, Goals and Targets -Sequence
of Formulation and Achievement.
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Hierarchy of Objectives
Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Table: Comparison Between Economic and Social Objectives