Business Environment

What is Business?
Business may be understood as the organised
efforts of enterprises to supply consumers
with goods and services for a profit.

The purpose of business goes beyond earning

profit. It is an important institution in society
 Scope of Business
Multitudinous activities involved in bringing raw
materials to the factory and end product from
there to the market constitute a business.
Scope of business is very vast.
 Characteristics of Business
• Change
• Vast business canvas
• Diversification
Concentric (HLL – One line co.has several brands)
horizontal( Adding new and related products or
services: Sony Corps.
Conglomerate( Adding new and unrelated
products or services) Tata
 Characteristics of Business
• Globalisation
• Information
• Government Interference
• Competition
 Business in the New Era
• Large organisations with a large work force
will no exist
• Businesses will be knowledge-based
• Information technology is the new buzz word
• Organisations will become flat.
• Employees will have no definite jobs
 Business Goals
Vision: Refers to the goals that are broadset, and most
general. A vision describes aspirations for the future,
without specifying the means. Vision answers the
question What do we want to become?
(Birla:” To be the most innovation enterprise and the
preferred supplier”.)
Mission: A vision becomes tangible as a mission
statement. It specifies a leader’s belief about an
organisation and the direction in which it should
move. Mission answers “What is our business?
 Objectives
• Profit
• Growth :Add, diversify, integrate, inc. mkt.
share, expand market, cut down costs
• Power
• Employee satisfaction and development: “If
you want to plan for a year, plant corn. If you
want to plan for 30 years, plant a tree. But if
you want to plan for 100 years, plant men”
• Quality products and services
• Market leadership
• Challenging
• Joy of creation
• Service to society
• Good corporate citizenship
 Critics of business

• Has a corrosive effect on a range of cherished cultural

values
• Dehumanises and exploits workers
• Harms interests of consumers
• Degrades nature and the environment
• Has destroyed handicraft and rendered artisans jobless
• Causes scams and scandals
• Lend rules, cut corners, bribe officials and challenge
existing authority