Professional Documents
Culture Documents
■ Vast
■ Buy car- supplier of raw material,
manufacturer, dealer, transport agent,
banker, advertising agency, insurance agent
■ Multitudinous activities- bring raw material
to factory, end product from there to market,
constitute business
■ Business includes all activities connected
with production, trade, banking, insurance,
finance, agency, advertising, packaging etc
■ Includes efforts to comply with legal
restrictions, government requirements,
discharging obligations to consumers,
employees, owners, other interest
groups- stake in business directly,
indirectly
■ All above activities- organized/ carried
out- earn profit
■ People occupy central place around
whom, by whom, for whom business is
run
■ Business is people
■ NGOs, non business organizations
follow principles/ practices of
managing a business – competition
among them severe, need top
professionalize their practices to
survive/ prosper
Characteristics of
modern business
■ Transition
Globalization- new environment, increased
competition
Lifting of all protective measures
In between new environment, and old practices
of doing business
Structure( flexible, flat, team based),
transparent environment( dispersed
ownership), styles of management( rational
thinking, vibrant style)
■Pressure of competition
Competing among themselves/ foreign firms
Boon to customers- choice
Defines new ways of doing business
Build new capabilities
Builds new customer satisfaction standards
Makes business proactive
■Immense opportunities
Exploit for one’s advantage
BPOs, KPOs, IT, wealth management
Manufacturing outsourcing- low cost production,
confidence of entrepreneurs, erosion of
competitiveness of traditional manufacturing
centers of world
■ Globalization
Going international – new trend
■ “…technological, political, economic, and cultural