Introduction to Business

Concept of business
 Business

“Every human activity which is

engaged in for the sake of earning
profit may be called business.”

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 According to L. H. Haney
 “Business may be defined as human activities directed
toward providing or acquiring wealth through buying
and selling of goods.”

 In the words of B. W. Wheeler

 “An institution organized and operated to provide
goods and services to the society, under the incentive
of private gain” is business.

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 A Short History of Business
 Industrial revolution

 Entrepreneurship Era

 Production Era

 Marketing Era

 Global Era

4  Information and internet Era

 Economy

 The large set of inter-related economic production

and consumption activities which aid in
determining how scarce resources are allocated.

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 Organization

An entity where 2 persons or

more
working together for a common
purpose
 Market
 A market is one of many varieties of systems,
institutions, procedures, social relations and
infrastructures whereby parties engage in
exchange.

 Physical retail markets

 Internet markets (non-physical)
 Auction markets
 Markets for intermediate goods
 Labor market
 Currency market
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 Stock market
 KINDS OF INDUSTRY
Primary Industry :
 Extractive
 Genetic

Secondary Industry
Construction
Manufacturing

Tertiary Industry
 Services
Kinds of Industries

 Primary Industry
 Extractive Industry _
 Extraction of underground resources.
 Genetics _ Genetic industries are those, which are
engaged in reproducing and multiplying certain
species of animals and plants.
Kinds of industries

 Secondary Industry

 All of manufacturing, processing, and construction

lies within the secondary industry.
 Kinds of industries

 Tertiary Industry
 Services _ Banking, consultancy, accountant, Lawyer, Interior
decorator, designer, music composer etc.

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 Factors of production
 Labor _ People working in an organization.

 Capital _ Amount invested by investor in the

business.

 Entrepreneurship _ Management ability of the

people who are running the business.

 Physical Resources _ Land, building, vehicles,

machinery etc.
 Types of Environmental Forces

 Internal Forces
 Factors within the organization.
 These are controllable by the organization.

 External Forces
 Factors found outside an organization.
 These factors are not controllable by the
organization.
 SWOT Analysis
 Strengths
 Weaknesses
 Opportunities
 Threats