Unit 1 introduction to business organisation

Any organization that fulfills itself through making a product or service is business. This presentation slides is apt for BBA I Semester students from Chaudhary Charan SIngh University

1. Introduction to Business Organisation Manish Kumar [email protected]

2. Business “Any organisation that fulfils itself through making a product or service is business.” P.F. Drucker “It is an institution organized and operated to provide goods and services to society under the incentive of private gain” B.O. Wheeler

3. Features of Business Business is a social institutions Dealings in goods and services Sale, transfer or exchange Regularity in dealings Promoter/owner/entrepreneur Organisation and management Capital, investment and finance Risk taking Forecasting Surplus generation Generation of values and utilities

4. Essentials of successful business Business plan Measuring goals Networking Team of dedicated employees Education and training Tools and equipment

5. Scope of Business The scope of business is very wide. It includes a large number of activities which may be classified under two broad categories , namely, Industry and Commerce.

6. Objectives of business

7. Organic Objective A business enterprise consists of people organised to conduct business activity to meet and satisfy the needs of society. It is essentially an organic entity which has its own infancy, childhood, adulthood, and maturity. The first concern of a business enterprise is to ensure its own survival for the continuance of business activity.

8. Human Objectives

9. National Objectives

10. Economic objective

11. Social objective

12. Classification of business activities

13. Trade

14. Commerce Trade Auxiliaries to trade Middlemen Transport and Communication Warehousing Insurance Finance Advertsing

15. Industry

16. Primary Industries

17. Secondary Industries

18. Benefits of business Production of goods Business supplies services Creation of customers Business has helped raising standard of living Creation of customers

19. Business Organization

20. Introduction Business organization is an economic arrangement of person where all efforts are directed to achieve a common economic goal.

21. Characteristics of Business Organization Adequacy of capital Flexibility of operation Business secrecy Ownership management and control Minimum government regulations Limit of liability Ease in formation Tax consideration Bargaining power

22. Objectives of Business Organization Aiming towards consumers satisfaction Shouldering responsibility Creation of employment opportunity Welfare to employment Optimum utilization of country’s natural resources Maximum return on investment Social welfare National objective Maintaining business ethics Maintaining law and order.

23. Setting up a business organization Evolution of objective Formulation of plan Suitable location, layout and volume of business Appropriate organization and management Optimum financing Trouble free production and distribution system Risk bearing and sustaining capacity Expansion and growth orientation

24. Importance of business organization Distribution Feedback Finance management Fixing of responsibilities Minimum cost Minimum wastage Product growth Quick decision Recognition problems Reduces the cost Skilled salesmen Transportation

25. Modern business

26. Old Concept Business may be defined as human activity directed towards producing or acquiring wealth through buying or selling goods. Business may be defined as an activity in which different persons exchange something value, whether goods or services for mutual gains or profits

27. Modern concept of business Business means the whole of complex of commerce and industry-the basic industries and the network of ancillary industries , banking, insurance ,transport and so on.

28. Changing objectives of modern business Production and supply of quality goods and services Contribution to the general welfare of the society Social and psychological satisfaction of employees Well-being of socially and economically backward Promotion of social justice Contribute to the revenue of the country Adoption of fair trade practices Development of human resources Creation of employment Self-sufficiency and export promotion

29. Trends in modern business Foreign direct investment Customization Social media E-business Business process outsourcing Trade in agricultural and manufacturing goods Containerized cargo Cloud comp Business combination Green marketing Corporate social responsibility

30. Business and profession BASIS FOR COMPARISON BUSINESS PROFESSION Meaning Business is an economic activity concerned with the production or purchase and sale of merchandise and rendering of services with the purpose of earning profit. Profession is a form of economic activities, wherein special skills, knowledge and expertise is required to be applied by the person, in his occupation. Basic objective Earning profit Rendering services Establishment On the decision of entrepreneur and fulfillment of legal formalities. Membership of the respective professional body and certificate of practice. Qualification No minimum qualification. Specialized knowledge of study is required. Capital Required as per the size and nature of business. Limited capital is required. Reward Profit Professional fee Code of conduct No prescribed code of conduct. Code of conduct prescribed by the professional bodies needs to be followed. Advertisement Products and services are advertised to increase sales. Advertisement is prohibited as per professional code of conduct.