INDIAN BUSINESS

ENVIRONMENT
MODULE 1

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 industry Synthetic industry Processing industry Assembling industry Construction 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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TRADE
its 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 trade a. import trade

b. c. export trade entrepot trade.

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AIDS TO TRADE
INSURANCE BANKING

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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.

McDonalds 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
Its 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 companys gate.

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