Professional Documents
Culture Documents
MODULE 2
WHAT IS BUSINESS
Definitions of Business
According to Urwick and Hunt, Business is any
enterprise which makes, distributes or provides any
service which other members of the community need
and are willing to pay for it.
Nature of Business
Man always wants and wants more.
Insatiable innumerous wants.
For satisfying his wants he works and works harder
so as to make use of scarce resources available.
Making use of scarce resources to the best advantage
for the satisfaction of human wants is termed as
economic activity.
NATURE OF BUSINESS
Economic activities, thus deal with the activities
of living and making a living.
For this purpose everyone of us follow an
occupation according to our inkling, capacity,
knowledge and training.
One therefore, may either follow a profession
(rendering specialized expert and personal
service), or seek employment (under taking to
work for others according to terms and conditions
set for the purpose), or set up a business
engaging in production of wealth.
CHARACTERISTICS OF BUSINESS
Finance function
Information Resources
Physical resources
Financial resources
EXTERNAL INFLUENCES
Economical influences
Financial influences
Geographical influences
Social influences
Legal influences
Political influences
Government
INTERNAL & EXTERNAL INFLUENCES
DIFFERENT FORMS OF ENTERPRISES
Sole Proprietorship
Joint Hindu Family Business
Partnership Firm
Joint Stock company
Private Limited
Public Limited
Co-operative society
ORGANIZATION STRUCTURE
Line organization
Functional organization
Project organization
Matrix organization
ymuralidharreddy@gmail.com 12/11/2017
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Governments Role in Influencing
Business
1. Prescribes the rules of the game for business.
2. Purchases business products and services.
3. Uses it contracting power to get business to
do things it wants.
4. Is a major promoter and subsidizer of
business.
5. Is the owner of vast quantities of productive
equipment and wealth.
10-18
Governments Role in Influencing
Business
6. Is an architect of economic growth.
7. Is a financier.
8. Is the protector of various interests in society
against business exploitation.
9. Directly manages large areas of private business.
10. Is the repository of the social conscience and
redistributes resources to meet social objectives
10-19
Roles of Government and Business
Clash of Ethical Systems
Business Beliefs Government Beliefs
Maximizes concession to Subordinated individual goals
self-interest and self-interest to group goals
Minimizes the load of and group interests
obligations society imposes Maximized obligations
on the individual (personal assumed by the individual and
freedom) discouraging self-interest
Emphasizes inequalities of Emphasized equality of
individuals individuals
10-20
Roles of Government and Business
10-21
Interaction of Business,
Government, and the Public
Lobbying
Regulations
Business and Government
Other Forms
of Political Process
Persuasion Voting
Advertising Interest Groups
Public Relations Contributions
Public
10-22
TYPES OF PRODUCTIVE SYSTEMS
Productive system is the one which products in
the organization
TYPES
Increase Income
Employment generation
Overcrowding
Working conditions
IT INDUSTRY IN INDIA
BPO
IT & ITES
Medical Transcription
Data Centers
GIS Mapping
Portals
ERP
Knowledge Management
KPO, LPO
IT & MANUFACTURING
Operational Excellence Six Sigma
ERP
Automation of Machineries
Recruitment
E- Agriculture
E- Mandi