Think about your daily routine, you might stop at a

coffee shop in the morning, perhaps you workout at the

gym in the afternoon or go for dinner with friends in the
evening. Every place that you visit, and every business
you connect with during that day, exists because of an
idea and an entrepreneur. Whether that entrepreneur
comes from a family of business owners, or is starting
out on their own with no previous experience, running
their business requires a set of key skills. But what are
the skills you need and how do you acquire them? What
will be their structures? Are they affected by
environment? What are their strengths and weaknesses?
 LEARNING OUTCOMES

LO1-Explain the different types, size and scope of organisations.

LO2-Demonstrate the interrelationship of the various functions within an

organisation and how they link to organisational structure.

LO3- Use contemporary examples to demonstrate both the positive and

negative influence/impact the macro environment has on business operations.

LO4-Determine the internal strengths and weaknesses of specific

businesses and explain their interrelationship with external macro factors.
 Meaning of Business

Human beings are continuously engaged in

some activity or other in order to satisfy
their unlimited wants. Every day we come
across the word 'business' or 'businessman'
directly or indirectly. Business has become
essential part of modern world.
Business is an economic activity, which is related
with continuous and regular production and
distribution of goods and services for satisfying
human wants.

All of us need food, clothing and shelter. We also

have many other household requirements to be
satisfied in our daily lives. We met these
requirements from the shopkeeper. The shopkeeper
gets from wholesaler. The wholesaler gets from
manufacturers. The shopkeeper, the wholesaler,
the manufacturer are doing business and therefore
they are called as Businessman.
Definition

Stephenson defines business as, "The regular production or purchase

and sale of goods undertaken with an objective of earning profit and
acquiring wealth through the satisfaction of human wants.“

According to Dicksee, "Business refers to a form of activity

conducted with an objective of earning profits for the benefit of
those on whose behalf the activity is conducted.“

Lewis Henry defines business as, "Human activity directed towards

producing or acquiring wealth through buying and selling of goods.“

Thus, the term business means continuous production and distribution

of goods and services with the aim of earning profits under uncertain
market conditions.
Some basic definitions:

 An organization is a group of people within some structure

who possess a common objective, usually expressed in a
mission statement.
Organizations may be:
for profit (frequently referred to as “firms”)
not-for-profit

 A market is a place (real or virtual) where potential sellers

and buyers meet to exchange resources (which may be
money, products, services, etc.)

 An industry is a group of organizations competing in a

predefined market under similar bases of competition
 Exchange of goods and services

Deals in numerous transactions

Profit is the main Objective

Business skills for economic success

Risks and Uncertainties

FEATURES Buyer and Seller

OF Connected with production

BUSINESS Marketing and Distribution of goods

Deals in goods and services

To Satisfy human wants

Social obligations
 ORGANISATION
MEANING:

A set-up where individuals from diverse backgrounds, different educational qualifications and varied
interests come together to work towards a common goal is called an organization.

The employees must work in close coordination with each other and try their level best to achieve the
organization’s goals.

It is essential to manage the employees well for them to feel indispensable for the organization.

DEFINITION:

According to Mooney and Reiley :

“Organisation is defined as the form of human association for attaining common objectives.”

According to Louis A. Allen:

“Organisation can be defined as the process of identifying and grouping the work to be performed,
defining and delegating responsibility and authority and establishing relationships for the purpose of
enabling people to work most effectively together in accomplishing objectives.”
 Coordination

FEATURES OF
ORGANISATION
 PLANNING

CONTROLLING ORGANISING

FUNCTIONS

DIRECTING STAFFING
Classification of Organisation
• Business Organisation
• Government Organisation
• Protective Organisation
• Service Organisation
• Political Organisation
• Religious Organisation
• Associative Organisation
• Educational Organisation
Business Organisation

They formed into organizations

for earning profits. Companies,
partnership firms, sole trading
firms are organised along these
lines with a profit motive to
survive against competition,
future expansion and
development.
Government Organisation

Such organizations serve for the

satisfaction of the people and
their welfare. They exercise
some measure of control.
Central and State government
undertakings, local bodies etc.,
come under this category.
Government Organisation

Such organizations serve for the

satisfaction of the people and
their welfare. They exercise
some measure of control.
Central and State government
undertakings, local bodies etc.,
come under this category.
The key business skills to consider include:

Strategic Management - Creating a business and strategic plan for your business and making sure
you keep to it.

Basic Accounting - Which records to keep, how to keep them and how to file them.
Financial Management - Where to find financing and how to manage it once you’ve sourced it.

People Management - Hiring your first employee and how to manage them.

Marketing - How to market your business through traditional channels, web and social media.

Sales - How to complete a sale and look after your customers.

Operations Management - Choosing and managing your suppliers.