Business Environment

In this chapter we will study What is business? Meaning and definition of business Scope of business Characteristics of business Business during the 21st Century Business goals WHAT 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 with Production, trade,banking,insurance, finance, agency, advertising, packaging and numerous other related activities.

Characteristics of Business
Change Vastness Diversification Globalisation Science Information Competition Govt 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 process Super 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 sonys purchase of columbia pictures Conglomerate diversification refers to adding new and unrelated products or services

Recent takeovers
Hindustan lever---tomco General electric-godrez refrigerators Proctor &gamble-godrez soaps Coca cola-parle soft drinks Pepsi-duke soft drinks Brooke bond- kissan Whirlpool- kelvinator Honda- 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 resources Atomic power, launching of satellites station at antarctica

information
Information theory of rationale economists Failure 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 organizations Advance manufacturing process Knowledge base ndustry World 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 Indiavizag steel Serving society through industry- nagarjuna group

Objectives
Profit Quality products and services Challenging Joy of creation Service to society Market leadership Employee satisfaction and development growth

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 move Infrastructuring india-vizag steel Serving society through industrynagarjuna group

objectives
Profit Power Quality products and services Challenging Joy of creation Service to society Market leadership Employee satisfaction and development growth