BUSINESS ENVIRONMENT

In this chapter we will study

What is business?
Meaning and definition of business
Scope of business
Characteristics of business
Business during the 21
st
Century
Business goals
WHAT IS ENVIRONMENT.
WHAT IS BUSINESS
ORGANISED and systematic efforts of
enterprises to supply consumers with
goods and services.
SCOPE OF BUSINESS
Business includes all activities connected with
Production, trade,banking,insurance, finance, agency,
advertising, packaging and numerous other related
activities.
CHARACTERISTICS OF
BUSINESS
Change
Vastness
Diversification
Globalisation
Science
Information
Competition
Govt interference
change
Change in technology-as incandescent lamps
put off kerosene lamps. Dot pens have allowed
ink pens to dry up, handwinding time pieces
are pushed aside by quartz watches.moped
has given way to scooty
VASTNESS
Machines are gradually replacing manual labour in
the manufacturing process
Super bazars, discount houses, tradefaire have
sprung up to meet the challenges of mass
production. In fortune 500 we have some of the big
companies of India
Diversification
Concentric- adding new but related products
and servicesex hindustan lever
Horizontal- new unrelated products or services
for present customers sonys purchase of
columbia pictures
Conglomerate diversification refers to adding
new and unrelated products or services


RECENT TAKEOVERS
Hindustan lever---tomco
General electric-godrez refrigerators
Proctor &gamble-godrez soaps
Coca cola-parle soft drinks
Pepsi-duke soft drinks
Brooke bond- kissan
Whirlpool- kelvinator
Honda- kinetic honda
GLOBALIZATION
Going international is yet another quality of modern
business political barriers are no barriers to business
production facilities are being set up in different
countries and products are being sold world wide
SCIENCE
Discovery and invention add up to the resources
Atomic power, launching of satellites station at
antarctica
INFORMATION
Information theory of rationale economists
Failure of sedan cars by Mercedese in India
GOVT INTERFERENCE
By protecting the nascent industries
through subsidies , imposition of different
import duties and through many other
things
BUSINESS DURING THE
21
ST
CENTURY
Large organizations
Advance manufacturing process
Knowledge base industry
World is flat
Business goals
Vision-birla3m-to be the most innovative
enterprise and the preferred supplier goals that
are broadly set
Mission-belief in organization and in direction
in which it has to move
Infrastructuring India- vizag steel
Serving society through industry- nagarjuna
group
strategy
Strategy is about:
the big picture
long-term direction
the scope and focus of business activities
responding to changes in our environment.

STRATEGY
Strategy is about how we as a corporation get
to where we want to be from where we are now.
5
OBJECTIVES

Profit
Quality products and services
Challenging
Joy of creation
Service to society
Market leadership
Employee satisfaction and development
growth
COMPETITION
BUSINESS GOALS
Vision- broad set, most general, birla3m-
to be the most innovative enterprise and
the preferred supplier
MISSION
Belief about the organization and to the
direction in which it has to move
Infrastructuring india-vizag steel
Serving society through industry-nagarjuna
group
OBJECTIVES
Profit
Power
Quality products and services
Challenging
Joy of creation
Service to society
Market leadership
Employee satisfaction and development
growth