business environment

1. CHITTAGONG UNIVERSITY CENTRE FOR BUSINESS
ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION
MBA PROGRAM
Course Code: 612
Course Title: Introduction to Business and Bangladesh Studies

2. Course Instructor:-
Md. Abu Bakkar Siddik
Assistant Professor
Dept. of Banking & Insurance
University of Chittagong.
E-mail: abubakkar@cu.ac.bd
Cell: +88 01883 15 99 34

3. Book Reference: Basic text

4. Book Reference: Reference
Introduction to
Business
By
Mohammed Ziaul
Hoque
Introduction to Business
and Doing Business in
Bangladesh
By
Dr. Monjur Morshed. Mahmud
& Md. Salim Uddin,
1 2

5. Syllabus
 Mid term =40 Written Exam+10 Internal Evaluation
 Final Term=40 Written Exam+10 Internal Evaluation
 Introduction to course contents.

6. Chapter 1: Business Environment
Contents:
Forces Of Business, Foundation Of Business And
Economics, Definition, Scope, Basic Elements,
Principles, Mission, Vision, Objectives And 21st
Century Challenges Of Business.

7. Concept of Business
According to William Pride, Robert Hughes, and Jack Kapoor, business is 'the
organized effort of individuals to produce and sell, for a profit, the goods and
services that satisfy society's needs.‘
Skinner says, Business is the exchange of goods and services for mutual benefit.
So, we can add that, business is something that analyzes the demand of its
customer base, then engage itself to produce/generate that particular needed
goods and services, exchange them with customer for money (cost plus margin
earning profit), take all the essential risks because probably the produced goods
and generated service remained unsold.

8. Therefore Business means:-
Analyzing Demand (basis is economics) and collection of
resources (Natural, Capital, Human) for creating utilities through
transformation of resources into the usable goods & services and
selling them to the target customers (may be for a group of people
or a particular society or a country or for the whole world) in a
Legal process considering potential amount of risk & uncertainty
For the purpose of maximizing profit

9. Economics: The foundation of Business
The fundamental subject matter of economics is how
we can satisfy our unlimited needs and demand
with limited amount of resources. So it leads us to
know-
1. What to produce?
2. How to produce?
3. For whom to produce?

10. Economics: The foundation of Business
Economics is the study of how a society chooses to use
scarce resources to produce goods and services and to
allocate/distribute them among consumers for their
consumption. Here raises three certain issues-
Resources:
Goods and Services:
Allocation

11. Economics: The foundation of Business
Resource
Natural,
Human,
Capital
Goods and
Services:
Necessary,
Luxury,
Emergency
Allocation
Or
Distribution

12. Objectives of Business
Economic
Objectives
-Earning Profit
-Meeting
demand
-Utilization of
resources
-Developing new
products
-Creating
customers
Social
Objectives
-Meeting social
demand
-Creating
Employment
-Social
Responsibility
-Developing
Living standard
Human Welfare
-Building worker
community
-Human resource
development
-Increase life
standard
National
Objectives
-Economic
development
-Optimum
resource
utilization
-Govt. Revenue
-Removing illegal
business

13. Elements of Business
1. Human Elements:
Owner Manager Employee Consumer

14. 2. Physical Elements
Organization Land Machine Technology

15. Scope of Business- Business Equation
Business = ΣI + ΣT + ΣAT + ΣDS
I= Industries
T= Trades
AT = Auxiliaries to Trade
DS = Direct Services

16. Scope of Business- Business Equation

17. Functional Scope of Business-

18. Key Principle of Business
 Principle Social Responsibility
 Principle of Profit Maximization
 Principle of Wealth Maximization
 Principle of Reputation
 Principle of Consistency
❑ Principle of Customer
Satisfaction
❑ Principle of Growth
❑ Principle of Continuity

19. Mission Vision
A Mission statement talks about what the company is now. It concentrates on present; it
defines the customer(s), critical processes and it informs you about the desired level of
performance. The unique purpose that sets a company apart from others of its type and
identifies the scope of its operations. It is a statement, not measureable targets but of
attitude, outlook, and orientation.
Components of Mission:
1. Reasons for existence
2. Statement guiding values and standards that will drive and shape the actions and
behavior of employees
3. A statement of major goals and objectives.

20. “To be the company that best understands and satisfies the product, service, and
self-fulfillment needs of women on a global level.” AVON.
“A social utility that connects you with the people around you.” Facebook Inc.
We have a challenging and inspiring mission to improve the quality of human life by
enabling people to do more, feel better and live longer (GlaxoSmithKline)
Mission is to make quality products that satisfy customers’ needs with an
affordable price that is within the range of their buying capacity (Al Amin Group).
Our mission and value are to help people and businesses throughout the world
realize their full potential (Microsoft Corporation)
Mission Statement

21. Vision, and Mission
A Vision statement outlines what a company wants to be. It
concentrates on the future; it is a source of inspiration; it provides
clear decision-making criteria.
A statement that presents a firm’s intent designed to focus the
energies and resources of the company on achieving a desired
future.

22. Vision Statement
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters,
sports and athletics, music and entertainment, science and education,
health and hygiene, clean and pollution free environment and above all a
society based on morality and ethics make all our lives worth living.
Vision is to be the best and to be the world’s leader in everything we
do, and every product we make (Al Amin Group)
Peace, happiness & prosperity for community- A vision to see beyond
future, the sprit to do what no one has thought before(PHP Group)
‘A computer on every desk, and in every home, running on Microsoft
software (Microsoft)’

23. Business Challenges of 21st century
1. Insufficient Capital
2. High cost of capital
3. Competition
4. Geo-political unrest
5. Lack of raw materials
6. Skilled CEO and worker
7. Lack of infrastructure
8. Technological advancement
9. Coping with social media