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Scope of businessScope of businesss VastVasts Buy car- supplier of raw material,Buy car- supplier of raw material,

manufacturer, dealer, transport agent,manufacturer, dealer, transport agent,banker, advertising agency, insurance agentbanker, advertising agency, insurance agent

s Multitudinous activities- bring raw materialMultitudinous activities- bring raw materialto factory, end product from there to market,to factory, end product from there to market,constitute businessconstitute business

s Business includes all activities connectedBusiness includes all activities connectedwith production, trade, banking, insurance,with production, trade, banking, insurance,finance, agency, advertising, packaging etcfinance, agency, advertising, packaging etc

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s Includes efforts to comply with legalIncludes efforts to comply with legal

restrictions, government requirements,restrictions, government requirements,discharging obligations to consumers,discharging obligations to consumers,employees, owners, other interestemployees, owners, other interestgroups- stake in business directly,groups- stake in business directly,indirectlyindirectly

s All above activities- organized/ carriedAll above activities- organized/ carriedout- earn profitout- earn profit

s People occupy central place aroundPeople occupy central place aroundwhom, by whom, for whom business iswhom, by whom, for whom business isrunrun

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s Business is peopleBusiness is peoples NGOs, non business organizationsNGOs, non business organizations

follow principles/ practices of follow principles/ practices of managing a business – competitionmanaging a business – competitionamong them severe, need topamong them severe, need topprofessionalize their practices toprofessionalize their practices tosurvive/ prospersurvive/ prosper

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Characteristics of Characteristics of modern businessmodern business

s Transition TransitionGlobalization- new environment, increasedGlobalization- new environment, increased

competitioncompetitionLifting of all protective measuresLifting of all protective measuresIn between new environment, and old practicesIn between new environment, and old practices

of doing businessof doing businessStructure( flexible, flat, team based),Structure( flexible, flat, team based),

transparent environment( dispersedtransparent environment( dispersed

ownership), styles of management( rationalownership), styles of management( rationalthinking, vibrant style)thinking, vibrant style)

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s Pressure of competitionPressure of competition

Competing among themselves/ foreign firmsCompeting among themselves/ foreign firmsBoon to customers- choiceBoon to customers- choiceDefines new ways of doing businessDefines new ways of doing business

Build new capabilitiesBuild new capabilitiesBuilds new customer satisfaction standardsBuilds new customer satisfaction standardsMakes business proactiveMakes business proactive

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s Immense opportunitiesImmense opportunitiesExploit for one’s advantageExploit for one’s advantageBPOs, KPOs, IT, wealth managementBPOs, KPOs, IT, wealth managementManufacturing outsourcing- low cost production,Manufacturing outsourcing- low cost production,

confidence of entrepreneurs, erosion of confidence of entrepreneurs, erosion of competitiveness of traditional manufacturingcompetitiveness of traditional manufacturingcenters of worldcenters of world

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s Globalization as ‘Deterritorialization’Globalization as ‘Deterritorialization’s Breakdown of borders of Space andBreakdown of borders of Space and

Time TimePolitical boundaries- no barriersPolitical boundaries- no barriersManufacturing, selling in differentManufacturing, selling in different

countries leading to global competitioncountries leading to global competition

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s Technology TechnologyCharacterized by increasing use of Characterized by increasing use of

technologytechnology

Impact pervasive- production,Impact pervasive- production,marketing, finance, HR,marketing, finance, HR,communication carried ou tcommunication carried outinfluenced by technologyinfluenced by technology

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s InformationInformationRecognition of and the need for informationRecognition of and the need for information

Retrieving, extending information- dataRetrieving, extending information- dataprocessing, information system analysis,processing, information system analysis,preparation of effective records, reports-preparation of effective records, reports-importantimportant

Due to complexities of modern business/ govtDue to complexities of modern business/ govtrequirements-information crucialrequirements-information crucial

Availability of computers, electronic devices-Availability of computers, electronic devices-quick gathering, processing/ distributingquick gathering, processing/ distributinginformation feasibleinformation feasible

IT- revolutionary changesIT- revolutionary changes

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Business objectivesBusiness objectivess Represent operational side of anRepresent operational side of an

organizationorganizations ProfitProfit - primary goal, incentive,- primary goal, incentive,

motivator, strong sustainer, objectivemotivator, strong sustainer, objectiveindicator of productivity, solid basisindicator of productivity, solid basisfor growth, expansion, survivalfor growth, expansion, survival

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s Some – not for profits- hospitals, charitableSome – not for profits- hospitals, charitableinstitutions, govt agenciesinstitutions, govt agencies

s Profit – beginning, act as seed money forProfit – beginning, act as seed money for

more products/ projects/ dividends/ taxmore products/ projects/ dividends/ taxpayments/ jobs etcpayments/ jobs etcs While pursuing profit, should not forgetWhile pursuing profit, should not forget

consumer/ employee satisfactionconsumer/ employee satisfaction

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s GrowthGrowthPrimary objectivePrimary objectiveStrategies- add more product/marketStrategies- add more product/market

DiversifyDiversifyIntegrate- backward/ forwardIntegrate- backward/ forwardExpand marketExpand market

Cut costs/ increase productivityCut costs/ increase productivity

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s PowerPowerBusiness vast resources at itsBusiness vast resources at its

commandcommandEnormous economic/ political powerEnormous economic/ political powerSome use for the good of society-Some use for the good of society-

J.N.Tata J.N.Tata

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s Employee satisfaction andEmployee satisfaction anddevelopmentdevelopment

Objective of enlightened businessObjective of enlightened businessenterprisesenterprises

Quality of personnel- hallmark of bestQuality of personnel- hallmark of bestmanaged/ highly respectedmanaged/ highly respectedcompaniescompanies

Labour welfare policies, safety/Labour welfare policies, safety/secur ity m easures, provide T&Dsecur ity m easures, provide T&Dfacilit iesfacilit ies

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s Quality products and servicesQuality products and services To survive competition, stay ahead To survive competition, stay ahead

of othersof othersEarn brand loyalty- Hindustan LeverEarn brand loyalty- Hindustan LeverR&D importantR&D important

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s Market leadershipMarket leadership To earn niche for oneself in the To earn niche for oneself in the

market- innovation in product,market- innovation in product,process, finance, distribution etcprocess, finance, distribution etcimportantimportant

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s

Joy of creation Joy of creation Through strategies- new ideas, Through strategies- new ideas,

innovations are given shape-innovations are given shape-

convert into useful products/convert into useful products/services for the benefit of services for the benefit of customerscustomers

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s Service to societyService to societySecondary objectiveSecondary objectiveObligations to societyObligations to societyProvide safe/ quality goods at lowProvide safe/ quality goods at low

pricespricesProvide employmentProvide employmentPatronize religious / cultural activitiesPatronize religious / cultural activities

Maintain/ protect ecologyMaintain/ protect ecologySupport less privileged sections of Support less privileged sections of

peoplepeople

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s Good corporate citizenshipGood corporate citizenshipComply with rules of land, pay tax,Comply with rules of land, pay tax,

discharge obligations to society,discharge obligations to society,employee/ customer careemployee/ customer care

H l illH l ill

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How company logos willHow company logos willlook like when the crisislook like when the crisis

is finally over is finally over s

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