Understanding Business: Definition, Kinds, Objectives, and Role in Society, Lecture notes of Business Strategy

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Business and

Its Environment



What is business?



Kinds of Business



Objectives of Business



The Environment of Business Forms



Matching the Organization with the

Environment



Survival Strategies in Uncertain Environments



Coping Strategies



Environmental Controlling

What is

Business?

Business may

be defined as

all profit-

seeking

activities and

enterprise that

provide goods

and services to

an economic

system

◉ Profit refer to the rewards for

businesspersons who take the risk

involves in producing and marketing goods

and services.

2. Industry

Industries are those

that are mainly engaged in the

production.

Goods produced, which

are intended for ultimate

consumption are called

consumer goods, while goods

intended for use of business

and industry are called

producer’s goods.

Industry business may be further classified

into:

a.Genetic industries are those involved in

agriculture, forestry and fish culture.

b.Extractive Industries are those involved in the

extraction of goods from natural resources, which

include mining, lumbering, hunting, and fishing

c.Manufacturing Industries convert raw materials

into finished products. Examples are firms

engaged in the manufacturing of drugs, plastics,

food, liquor, footwear, motorcars, tools, office

supplies, etc.

d.Construction Industries are those engaged in

building infrastructures like airports, seaports,

dams, and highways and dwelling units.

Objectives of Business

Profit - Making profit is the primary goal of

any business enterprise.

Objectives of Business

Growth - Business should

grow in all directions over a

period of time.

Objectives of Business

Employee satisfaction and development - Business is

people. Caring for employee satisfaction and providing for

their development has been one of the objectives of

enlightened business enterprises.

Objectives of Business

Quality Products

and Services -

Persistent quality of

products earns

brand loyalty, a vital

ingredient of

success.

Objectives of Business

Challenge - Business offers vast scope

and poses formidable challenges.

ociety

Servi

and h

Objectives of Business

ce to society - Business is a part of s

as several obligations towards it.