Introduction to Business Concept of business

DEFINITION  “ Every human activity which is engaged in for the sake of earning profit may be called business. ” 2

 According to L. H. Haney  “ Business may be defined as human activities directed toward providing or acquiring wealth through buying and selling of goods. ”  In the words of B. W. Wheeler  “An institution organized and operated to provide goods and services to the society, under the incentive of private gain ” is business. 3

 The word “business” is derived from the term “busyness.” 4

 Industrial revolution  Entrepreneurship Era  Marketing Era  Global Era  Information and internet Era 5

Components of business  Industry  Commerce Business Industry commerce

KINDS OF INDUSTRY Primary Industry Secondary Industry Extractive Construction Genetic Manufacturing Services

Types of Industry  Primary Industry Extractive Industry _ Extraction of underground resources. Genetics _ Genetic industries are those, which are engaged in reproducing and multiplying certain species of animals and plants.

Types of industries  Secondary Industry Construction _ Construction of buildings, roads, bridges etc. Manufacturing _ Conversion of raw material into final goods. Services _ Banking, consultancy, accountant, Lawyer, Interior decorator, designer, music composer etc.

Commerce  In simple words, “trade and aids to trade” is called commerce.

Types of commerce  Trade Trade means buying and selling  Aid to trade Institutions that are meant and build to assist and support the trading process.  Banking  Transportation  Insurance  Warehousing  Agents  Advertising  Communication

Factors of production  Labor _ People working in an organization.  Capital _ Amount invested by investor in the business.  Entrepreneurship _ Management ability of the people who are running the business.  Physical Resources _ Land, building, vehicles, machinery etc.

Types of environmental forces  External Forces Factors found outside an organization. These factors are not controllable by the organization.

Types of environmental forces  Internal Forces Factors within the organization. These are controllable by the organization.

SWOT Analysis  Strengths  Weaknesses  Opportunities  Threats