The document provides an overview of business organizations, defining them as entities that create goods or services for profit while fulfilling societal needs. It discusses essential features, objectives, and the importance of successful business operations, including the classification of business activities into trade, commerce, and industry. Furthermore, it contrasts modern business concepts with traditional views, emphasizing adaptation to social, economic, and technological trends.

1. Introduction to Business
Organisation
Manish Kumar
Manish.kumar@iamr.ac.in

2. Business
 “Any organisation that fulfils itself through making a
product or service is business.” P.F. Drucker
 “It is an institution organized and operated to provide
goods and services to society under the incentive of
private gain” B.O. Wheeler

3. Featuresof
Business
 Business is a social institutions
 Dealings in goods and services
 Sale, transfer or exchange
 Regularity in dealings
 Promoter/owner/entrepreneur
 Organisation and management
 Capital, investment and finance
 Risk taking
 Forecasting
 Surplus generation
 Generation of values and utilities

4. Essentialsof
successful
business
 Business plan
 Measuring goals
 Networking
 Team of dedicated employees
 Education and training
 Tools and equipment

5. Scopeof
Business
 The scope of business is very wide. It includes a large
number of activities which may be classified under two
broad categories , namely, Industry and Commerce.

6. Objectivesof
business
Organic
Human
National
Economic
Social

7. Organic
Objective
 A business enterprise consists of people organised to
conduct business activity to meet and satisfy the needs
of society. It is essentially an organic entity which has
its own infancy, childhood, adulthood, and maturity.
 The first concern of a business enterprise is to ensure
its own survival for the continuance of business
activity.

8. Human
Objectives
Fair deal to
employees
Development
of human
resources
Participation
Job
Satisfaction

9. National
Objectives
Ensuring
Social Justice
Development
of small
entrepreneurs
Production
according to
national
priorities
National Self-
Sufficiency
and Export
Development
Development
of skilled
personnel

10. Economic
objective
Earning
of profit
Creation of
customers
Innovation
Best use
of scarce
resources

11. Socialobjective Supply of
desired
quality of
products
Avoidance of
anti social
and unfair
trade
practices
Generation
of
employment
Welfare of
employees
Avoidance of
slums and
pollution

12. Classificationof
business
activities
Trade
Commerce
Industry

13. Trade
Internal or
home trade External or
foreign trade

14. Commerce
 Trade
 Auxiliaries to trade
 Middlemen
 Transport and Communication
 Warehousing
 Insurance
 Finance
 Advertsing

15. Industry
Primary
Secondary
Tertiary

16. Primary
Industries
Extractive
Industries Genetic
Industries

17. Secondary
Industries
Construction
Industries
Manufacturing
Industries

18. Benefitsof
business
 Production of goods
 Business supplies services
 Creation of customers
 Business has helped raising standard of living
 Creation of customers

19. Business Organization

20. Introduction
 Business organization is an economic arrangement of
person where all efforts are directed to achieve a
common economic goal.

21. Characteristics
ofBusiness
Organization
 Adequacy of capital
 Flexibility of operation
 Business secrecy
 Ownership management and control
 Minimum government regulations
 Limit of liability
 Ease in formation
 Tax consideration
 Bargaining power

22. Objectivesof
Business
Organization
 Aiming towards consumers satisfaction
 Shouldering responsibility
 Creation of employment opportunity
 Welfare to employment
 Optimum utilization of country’s natural resources
 Maximum return on investment
 Social welfare
 National objective
 Maintaining business ethics
 Maintaining law and order.

23. Settingupa
business
organization
 Evolution of objective
 Formulation of plan
 Suitable location, layout and volume of business
 Appropriate organization and management
 Optimum financing
 Trouble free production and distribution system
 Risk bearing and sustaining capacity
 Expansion and growth orientation

24. Importanceof
business
organization
 Distribution
 Feedback
 Finance management
 Fixing of responsibilities
 Minimum cost
 Minimum wastage
 Product growth
 Quick decision
 Recognition problems
 Reduces the cost
 Skilled salesmen
 Transportation

25. Modern
business
Old concept
of business Modern concept
of business

26. OldConcept
 Business may be defined as human activity directed
towards producing or acquiring wealth through buying
or selling goods.
 Business may be defined as an activity in which
different persons exchange something value, whether
goods or services for mutual gains or profits

27. Modern
conceptof
business
 Business means the whole of complex of commerce and
industry-the basic industries and the network of
ancillary industries , banking, insurance ,transport
and so on.

28. Changing
objectives of
modern business
 Production and supply of quality goods and services
 Contribution to the general welfare of the society
 Social and psychological satisfaction of employees
 Well-being of socially and economically backward
 Promotion of social justice
 Contribute to the revenue of the country
 Adoption of fair trade practices
 Development of human resources
 Creation of employment
 Self-sufficiency and export promotion

29. Trendsin
modern
business
 Foreign direct investment
 Customization
 Social media
 E-business
 Business process outsourcing
 Trade in agricultural and manufacturing goods
 Containerized cargo
 Cloud comp
 Business combination
 Green marketing
 Corporate social responsibility

30. Businessand
profession
BASIS FOR COMPARISON BUSINESS PROFESSION
Meaning
Business is an economic
activity concerned with
the production or
purchase and sale of
merchandise and
rendering of services with
the purpose of earning
profit.
Profession is a form of
economic activities,
wherein special skills,
knowledge and expertise
is required to be applied
by the person, in his
occupation.
Basic objective Earning profit Rendering services
Establishment
On the decision of
entrepreneur and
fulfillment of legal
formalities.
Membership of the
respective professional
body and certificate of
practice.
Qualification
No minimum
qualification.
Specialized knowledge of
study is required.
Capital
Required as per the size
and nature of business.
Limited capital is
required.
Reward Profit Professional fee
Code of conduct
No prescribed code of
conduct.
Code of conduct
prescribed by the
professional bodies needs
to be followed.
Advertisement
Products and services are
advertised to increase
sales.
Advertisement is
prohibited as per
professional code of
conduct.