business organization nature scope and importance Ch-2.pdf

it will give you full understanding about the business organisation and nature

1. Chapter 2
NATURE, SCOPE AND
OBJECTIVES OF BUSINESS
BUSINESS ENVIRONMENT

2. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Business System

3. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Business System/Process
■The model represented here is an aggregation of macro business
system which may encompass numerous business activities of
varying nature and dimensions. Each of some of these activities may
constitute a business. For example, the marketing stage may involve
different businesses like sole distribution, wholesaling, retailing,
transportation, warehousing, financing etc.

4. 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

5. 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

6. 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

7. 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

8. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Business Process

9. 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.

10. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Hierarchy of Objectives

11. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 2
Nature, Scope and
Objectives of Business
Table: Comparison Between Economic and Social Objectives