This presentation clearly about the basic introduction of business in a clear, simple, and easy way. So the students of business can easily learn about some important topics without any problem

1. Introduction to Business
Course Code: BBA 308
Submitted By:
Name: Eman Shahid
Roll No. 49
Submitted To:
Ms. Rumassa Atif
GOVERNEMT COLLEGE WOMEN UNIVERSITY FASISALABAD
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2. Introduction to Business
“Business is an occupation or trade and the purchase and sale of products or services to
make a profit”.
OR
“Business is 'the organized effort of individuals to produce and sell, for a profit, the
goods and services that satisfy society's needs”.
(William Pride)
 Examples:
 Farming
 House sale
 Restaurant
 Local shops
 Firms etc.
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3. Entrepreneurship
“Process of creating something new and assuming the risks and reward”.
(Robert D.Hisrich, M.P.Peters)
 Examples of Entrepreneurship:
 Small Business Entrepreneurship. Like grocery stores, hairdressers, consultants, travel
agents, internet commerce storefronts, carpenters, plumbers, electricians, etc. ...
 Scalable Startup Entrepreneurship. ...
 Large Company Entrepreneurship. ...
 Social Entrepreneurship.
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4. Conceptual Model of Entrepreneurship
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5. Components of Business
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6. 1.Industry
“Industry comes from the Latin industria, which means "diligence, hard work,“ An industry is a group of
manufacturers or businesses that produce a particular kind of goods or services”.
OR
“An industry is a department or branch of a craft, art, business, or manufacture especially one that
employs a large personnel and capital especially in manufacturing”.
 Examples of Industry:
 Automobile
 Clothing
 Food Services
 Farming & Fishing
 Mining etc.
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7. Types of Industry
There are four types of industry. These are primary, secondary, tertiary and quaternary. Primary
industry involves getting raw materials e.g. mining, farming and fishing. Secondary industry involves
manufacturing e.g. making cars and steel. Tertiary industries provide a service e.g. teaching and
nursing. Quaternary industry involves research and development industries e.g. IT, But here we merge
all these kinds into main two kinds and there more further sub kinds given below:
 Primary Industry
 Extractive industry
 Genetic industry
 Secondary Industry
 Constructive Industry
 Manufacturing Industry
 Services Industry
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8. 1.Primary Industry
“Primary activity includes those occupations which are closely related to man's natural
environment. It is concerned with the extraction of raw materials”.
Examples:
 Quarrying
 Farming
 Logging & Forestry
 Fishing
 Oil and Gas extraction
 Mining etc.
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9. Kinds of Primary Industry (Cont.…)
1. Extractive Industry:
Any processes that involve the extraction of raw materials from the earth to be used
by consumers. The extractive industry consists of any operations that remove metals,
mineral and aggregates from the earth.
Examples:
 Dredging & Quarrying
 Oil, Gas and Coal extraction
 Drilling
 Excavating
 Tunneling & Harvesting
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10. Kinds of Primary Industry
2. Genetic Industry:
Genetic Industries are such industries in which certain species of plants and
animals are multiplied and reproduced for the purpose of creating wealth .
Examples:
 Nurseries (plants are grown for sale)
 Poultry Farm(where birds)
 Animal husbandry (where cattle are raised for milk, leather & meat)
 Pisciculture (for growing fish in ponds)
 Orchard or Harvest
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11. 2. Secondary Industry
An industry that processes raw materials produced by primary industry into goods
suitable for tertiary industry to provide goods or services to consumers.
Examples:
 Heavy Manufacturing ( Chemicals, Machinery Manufacturing, Shipbuilding e.g.)
 Light Manufacturing (Manufacturing of cloths, shoes & furniture, home appliances)
 Food Processing
 Oil refining
 Energy Production etc.
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12. Kinds of Secondary Industry (Cont.…)
1. Constructive Industry:
The branch of manufacture and trade based on the building, maintaining, and repairing structures. This
includes drilling and solid mineral exploration.
(Standard Industrial Classification)
Examples:
 Heavy Engineering (building of heavy infrastructure such as bridges, canals, dams, airports,
water systems and railways etc.)
 Landscaping
 Trades
 Architecture
 Interior Design
 HVAC (Heating, Ventilation, and Air Conditioning) etc.
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13. Kinds of Secondary Industry (Cont.…)
2. Manufacturing Industry:
“The branch of manufacture and trade based on the fabrication, processing, or preparation of products from raw materials and
commodities”.
(Standard Industrial Classification)
This includes:
o All foods, chemicals, textiles, machines, and equipment.
o All refined metals and minerals derived from extracted ores.
o All lumber, wood, and pulp products etc.
Examples:
 Transportation
 Fast Moving Consumer Goods
 Chemical Industry
 Electronics
 Pharmaceutical & Paper Industry
 Furniture & Fixtures
 Sports Goods etc.
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14. Kinds of Secondary Industry (Cont.…)
3. Services Industry:
“A business that does work for a customer, and occasionally provides goods, but is not
involved in manufacturing. The service sector makes an important contribution to GDP
in most countries, providing jobs, inputs and public services for the economy”.
Examples:
 Haircuts
 Medical Checkups
 Mail delivery
 Car Repair
 Teaching etc.
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15. 2. Commerce
 J. Stephenson defines Commerce as:
“the sum total of those processes which are engaged in the removal of
hindrances of person, place and time in the exchange of commodities”.
 Evelyn Thomas defines commercial activities as:
“activities dealing with the buying and selling of the goods and the
distribution of finished products from the producers to the customers”
OR
“Trade and Aids to Trade” is called Commerce.
Examples:
 The buying and selling of goods, especially on a large scale,
as between cities or nations. ...
 Intellectual exchange or social interaction.
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16. Types of Commerce
(Conti….) 1. Trade:
“Trade is defined as the general marketplace of buying and
selling goods, the way you make a living or the act of
exchanging or buying and selling something”.
Examples:
 An example of trade is the tea trade where tea is imported
from China and purchased in the US.
 An example of trade is when you work in sales.
 An example of trade is the act of exchanging one item for
another or one item for money.
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17. Types of Commerce (Conti….)
TYPES OF TRADE:
TRADE CAN BE DIVIDED INTO FOLLOWING TWO TYPES,
1. Internal / Home / Domestic trade.
Internal Trade also known as Domestic Trade is the
buying and selling of goods and services within
the confines of the international boundaries of a
nation.
Examples:
Itinerant retail (Peddlers Hawkers, market traders,
street traders, cheap jacks Etc.)
Fixed shop retail (General stores, specialty stores,
second hand goods shops, single line stores etc.)
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18. Types of Commerce (Conti….)
Types of Home Trade:
1. Wholesale Trade
Wholesale trade is a form of trade in which goods are purchased and stored in large quantities and sold, in
batches of a designated quantity, to resellers, professional users or groups, but not to final consumers.
Examples:
 Online E commerce Platforms
 World Learning B2B
 Costco Wholesale Corporation Offers
2. Retail Trade
Retail trade is the business activity associated with the sale of goods to the final consumer, the ultimate
customer. It is the link between wholesalers or manufacturers and the customers of the product.
Examples:
 Online Retailers(Amazon, eBay & Netflix)
 Local Malls
 Traditional Brick & Mortar stores
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19. Types of Commerce (Conti….)
2. External / Foreign / International trade.
It is also called as International trade. External
trade or Inter-Regional trade. It involves
exchange of goods and services between two or
more countries. It consists of imports, exports
and entrepot.
Examples:
“The Dublin Horseshoe Company” is the perfect
example of External Trade.
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20. Types of Commerce (Conti….)
TYPES OF EXTERNAL TRADE:
1.IMPORT TRADE
IMPORTING MEANS BUYING FOREIGN GOODS AND
SERVICES BY CITIZENS, BUSINESSES AND GOVERNMENT
OF A COUNTRY.
2. EXPORT TRADE
THE EXPORT OF GOOD OR SERVICE CAN BE ANYTHING.
THIS TRADE CAN BE DONE THROUGH SHIPPING, E-MAIL,
TRANSMITTED IN PRIVATE LUGGAGE ON A PLANE
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21. Types of Commerce
2. Aids to Trade:
Aids to Trade are the activities which are necessary for smooth flow of goods from producers to
consumers. These activities facilitate trade by removing various barriers in the buying and selling of
goods.
Examples:
 Banking
 Transportation
 Insurance
 Warehousing
 Finance
 Advertising
 Communication
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22. Factors of Production
 Factors of production is an economic term that describes the inputs used in the
production of goods or services in order to make an economic profit.
 These include any resource needed for the creation of a good or service.
 The factors of production typically include land, labor, capital, entrepreneurship,
and the state of technological progress
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23. Components of Factors of
Production (Conti…)
LABOR
CAPITAL
ENTREPRENEURSHIP
PHYSICAL RESOURCES
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24. Components of Factors of Production
1. Labor:
Labor is the human input into production e.g. the supply of workers available and their productivity
2. Capital:
 Capital goods are used to produce other consumer goods and services in the future
 Fixed capital includes machinery, equipment, new technology, factories and other buildings
 Working capital means stocks of finished and semi-finished goods (or components) that will be either consumed in the
near future or will be made into consumer goods
3. Entrepreneurship:
 An entrepreneur is an individual who supplies products to a market to make a profit
 Entrepreneurs will usually invest their own financial capital in a business and take on the risks. Their main reward is the
profit made from running the business
4. Physical Resources/ Land:
Land includes all natural physical resources – e.g. fertile farm land, the benefits from a temperate climate or the harnessing
of wind power and solar power and other forms of renewable energy.
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25. Economic System
An economic system is a man-made and malleable system to regulate the production,
resource allocation, exchange, and distribution of goods and services in a society or a
geographic area.
Examples:
 Socialism
 Communism
 Capitalism
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26. Types of Economic System
1.Planned Economy
A planned economy is "an economic system in which the government controls and regulates production, distribution, prices,
etc.“
Examples:
 The best and most famous examples of planned economies are China, and the former Soviet Union.
2. Free market Economy
The free market is an economic system based on supply and demand with little or no government control.
Examples:
 China. While personal freedom is not part of the equation in China, capitalism is rampant. ...
 Hong Kong. Traditionally billed as the world's freest economy, Hong Kong remains one of the most capitalist countries. ...
 Singapore. Like Hong Kong, Singapore's capitalism is under siege with growing cronyism. ...
 Macedonia.
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27. Environmental Factors
Environmental Forces define as:
An identifiable element in the physical, cultural, demographic, economic, political, regulatory, or
technological environment that affects the survival, operations, and growth of an organization.
Examples:
 Education, Climate Factors
 Social capital
 Stress
 Radiation
 Infection
 Lifestyle Factors (Tobacco, Alcohol)
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28. Types of Environmental Factors
1. EXTERNAL FACTORS
EXTERNAL FACTORS ARE THINGS OUTSIDE A BUSINESS THAT WILL HAVE AN
IMPACT ON ITS SUCCESS. THEIR IMPACT CAN BE POSITIVE OR NEGATIVE. A
BUSINESS CANNOT CONTROL EXTERNAL FACTORS. COMPETITIVE - THE
IMPACT OF A RIVAL FIRM WHICH MAY HAVE A SIMILAR PRODUCT OR
WHICH MAY LOWER ITS PRICES.
EXAMPLES:
Competition
Social, Legal & Technical Changes
Economic & Political environment
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29. Types of Environment Factors
2. Internal Factors:
internal factors are Inner strengths and weaknesses that an organization exhibits. Internal
factors can strongly affect how well a company meets its objectives, and they might be
seen as strengths if they have a favorable impact on a business, but as weaknesses if they
have a deleterious effect on the business.
Examples:
 Finance
 Human resources
 Operational issues
 Business culture
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30. SWOT Analysis (Conti….)
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and
weaknesses are internal to a company
SWOT analysis is a business analysis process that ensures that objectives for a project
are clearly defined and that all factors related to the project are properly identified.
The SWOT analysis process involves four areas:
 Strengths
 Weaknesses
 Opportunities
 Threats
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31. SWOT Analysis(Conti….)
Strengths describe what an organization excels at and what separates it from the competition: a
strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example,
a hedge fund may have developed a proprietary trading strategy that returns market-beating results.
It must then decide how to use those results to attract new investors.
Weaknesses stop an organization from performing at its optimum level. They are areas where the
business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high
levels of debt, an inadequate supply chain, or lack of capital.
Opportunities refer to favorable external factors that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new
market, increasing sales and market share.
Threats refer to factors that have the potential to harm an organization. For example, a drought is a
threat to a wheat-producing company, as it may destroy or reduce the crop yield. Other common
threats include things like rising costs for materials, increasing competition, tight labor supply and so
on.
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32. Importance of SWOT Analysis
 A SWOT analysis is a great way to guide business-strategy meetings. It's powerful to have
everyone in the room to discuss the company's core strengths and weaknesses and then move
from there to define the opportunities and threats, and finally to brainstorming ideas.
 The most important part of a SWOT analysis is to improve the viability of your company.
 Important threats coupled with a company weakness typically put at risk your company's future,
and the SWOT analysis identifies these risks.
 You can eliminate internal weaknesses by assigning company resources to fix the problems.
 SWOT analysis provides an organization a clear view of its strengths, allowing it to build on them
and meet business objectives.
 A SWOT analysis helps find the best match between environmental trends (opportunities and
threats) and internal capabilities.
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