BUSINESS ENVIRONMENTIn this chapter we will studyWhat is business?Meaning and definition of businessScope of businessCharacteristics of businessBusiness during the 21st CenturyBusiness goalsWHAT 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 withProduction, trade,banking,insurance, finance, agency, advertising, packaging and numerous other related activities.

CHARACTERISTICS OF BUSINESSChangeVastnessDiversificationGlobalisationScienceInformationCompetitionGovt 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 processSuper 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 sony’s purchase of columbia pictures

Conglomerate diversification refers to adding new and unrelated products or services

RECENT TAKEOVERSHindustan lever---tomcoGeneral electric-godrez refrigeratorsProctor &gamble-godrez soapsCoca cola-parle soft drinksPepsi-duke soft drinksBrooke bond- kissanWhirlpool- kelvinatorHonda- 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 resourcesAtomic power, launching of satellites station at antarctica

INFORMATION

Information theory of rationale economistsFailure 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 21ST CENTURY

Large organizationsAdvance manufacturing processKnowledge base industryWorld 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 directionthe scope and focus of business activitiesresponding 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.’

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OBJECTIVES

ProfitQuality products and servicesChallengingJoy of creationService to societyMarket leadershipEmployee satisfaction and developmentgrowth

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 moveInfrastructuring india-vizag steelServing society through industry-nagarjuna group

OBJECTIVESProfitPowerQuality products and servicesChallengingJoy of creationService to societyMarket leadershipEmployee satisfaction and developmentgrowth