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  • Nature and Scope of Business Chapter

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    Ankur Jain
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    This document discusses the nature and scope of business. It defines business as economic activity focused on demand, supply, profit-making, and customer satisfaction. A business operates as a system with subsystems like finance, human resources, marketing, production, and R&D. It interacts with both internal and external environmental factors. The objectives of modern business include market standing, innovation, productivity, financial performance, profitability, employee development, and social responsibility. Essentials to running a successful business include objectives, planning, resources, organization, management, employee morale, marketing, and innovation.

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    Chapter 1

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    This document discusses the nature and scope of business. It defines business as economic activity focused on demand, supply, profit-making, and customer satisfaction. A business operates as a system with subsystems like finance, human resources, marketing, production, and R&D. It interacts with both internal and external environmental factors. The objectives of modern business include market standing, innovation, productivity, financial performance, profitability, employee development, and social responsibility. Essentials to running a successful business include objectives, planning, resources, organization, management, employee morale, marketing, and innovation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    8 views13 pages

    Nature and Scope of Business Chapter

    Uploaded by

    Ankur Jain
    This document discusses the nature and scope of business. It defines business as economic activity focused on demand, supply, profit-making, and customer satisfaction. A business operates as a system with subsystems like finance, human resources, marketing, production, and R&D. It interacts with both internal and external environmental factors. The objectives of modern business include market standing, innovation, productivity, financial performance, profitability, employee development, and social responsibility. Essentials to running a successful business include objectives, planning, resources, organization, management, employee morale, marketing, and innovation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 13

    Chapter 1

    Nature and Scope of Business

    Nature of business

    Economic activity
    Demand and supply Profit making Customer satisfaction

    Concept of business
    Old concept Changing concept

    Definitions

    profit can be no more than the main objective of a business than anything else Urwick to create customer Peter Drucker Profit cum service Profit through service It has two functions:

    Marketing innovation

    Branches of business
    Industry commerce

    Business system
    Operating system Environmental factors Five subsystems

    Finance Human resources Marketing Production R&D

    Organization as system
    Inputs Process Output Feedback Environment Plans

    Organization as system
    It is a subsystem of broader environment Goal oriented Technical subsystem Structural subsystem Psycho-social subsystem Managerial subsystem

    Organization as system

    Emphasize on inputs and outputs Helps in formulation of business aims and objectives Ensures the integrated development of business plans and programs in all the areas of business Provides a basis for the logical and orderly analysis of business activities Stress on both external and internal linkages of the enterprise.

    Organization as system

    Assures good framework for managerial control Uses right information for decision making Stress on changing environment of business Creates opportunities for innovation Provides tool for effective measurement and control.

    Objectives of modern business


    Basic objective Key areas of performance


    Market standing Innovation Productivity Financial/physical resources Profitability Manager performance and development Employee performance and attitude Public and social responsibility

    Essentials of business
    Objectives Planning Location Financial resources Efficient organization Good management Employee morale

    Essentials of business
    Marketing system Innovation Equipment and machinery

    Requisites of businessman

    Knowledge and foresight Initiative and decision making power Tact and courtesy Adaptability and cooperativeness Empathy Honesty Winning personality Business education

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