indian business environment final touch
Post on 20-May-2015
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INDIAN BUSINESS
ENVIRONMENT
MODULE 1
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BUSINESS
It is the human activity directed towards the acquisition of wealth through the production of exchange of goods and services.A business enterprise is an economic institution as it is engaged in the production and distribution of goods and services in order to earn profits.
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NATURE AND SCOPE OF BUSINESS ENVIRONMENT
The scope of business is vast . Various business activities may be classified into two broad categories:
• Industry• commerce
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INDUSTRY
Its branch of business which is concerned with the production of goods and services.Some types of industries are:
EXTRACTIVE INDUSTRIES:
Products drawn out from natural resources.eg;agriculture,mining,fishing.
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• GENETIC INDUSTRY:multiplying or reproduction of certain species of plants and animals.eg;forestry,poultry
• MANUFACTURING INDUSTRY:
Conversion of raw material into finished products.These are further of many types….
Analytical industrySynthetic industryProcessing industryAssembling industryConstruction industry
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COMMERCE
It includes all those activities which ensures a free and smooth flow of goods and services from producers to consumers.
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TRADEits concerned with sale or transform or exchange of goods and services.
Domestic trade
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WHOLE SALE TRADE
RETAIL TRADE
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International tradea. import tradeb. export trade
c. entrepot trade.
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AIDS TO TRADE
INSURANCEBANKING
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TRANSPORTATION
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ADVERTISING
WAREHOUSE
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CHARACTERISTICS OF MODERN BUSINESS.• ECONOMIC ACTIVITY
All activities relating to the production and distribution of goods and services are called economic activity.
• SALE
Exchange of goods and services for price.
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• DEALING IN GOODS AND SERVICES
Provides goods and services to society.
• PROFIT MOTIVE
Business carried with purpose of earning profit
• RISK OR UNCERTAINITY
The risks are always there in the business.
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• ORGANISATIONS
Its helpful in smooth running of the business and achieving the objectives.
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• CONSUMER SATISFACTION
The business should try to satisfy the needs of consumers in order to maintain their customers.
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• GLOBALISATION
Products are being sold through global network.
McDonald’s Franchises Are Sold Worldwide
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RED BULL
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Objectives of modern business…PROFIT
GROWTH
POWER
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• EMPLOY SATISFACTION AND DEVELOPMENT
• QUALITY PRODUCTS AND SERVICES
• MARKET LEADERSHIP
• CHALLENGING
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• Joy of creation• Services to society
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BUSINESS ENVIRONMENT• It’s the set of conditions
economic,social,political or institutional in which business operations are conducted.
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INTERNAL ENVIRONMENT• Factors existing within a
business firm.these factors are controllable.
• Mission and objectives• Top management structure.• Power structure• Human and other resources.
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EXTERNAL ENVIRONMENT• Micro environment• Macro environment
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POLITICAL AND LEGAL ENVIRONMENT• It refers to the influence exerted
by the three political institutions viz,legislature,executive,and the judiciary in shaping directing developing and controlling business activities.
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LEGAL ENVIRONMENT
• It consist of all the rules regulations and procedures which govern business activities.
• General laws• Financial laws• Labour laws• Taxation laws
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SOCIO-CULTURAL ENVIRONMENT• It refers to the influence
exercised by certain factors which are beyond the company’s gate.
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