Shahjalal University of Science and Technology, Sylhet

An assignment on Introduction to Business Administration

Department of Political Studies (PSS)

Course title: Introduction to business

Course code: BAN 171 (Non-major)
Assignment topic: Introduction to business

Submitted to:
Dr. Md. Khairul Islam
Professor
Department of Business Administration
Shahjalal University of Science and Technology, Sylhet

Submitted by: (group-1) 1st year, 2nd semester

2019235012- Naeem Ahmed
2019235013- Arif Fahim Siddiki
2019235014- Tanvir Hasan Tamim
2019235015- Tanisha Akter
2019235016- Habiba Akter Lina
2019235017- Rakib Miah
2019235018- Mim Khatun
2019235019- Mubasshir Bashar Bangali
2019235020- Akramul Hussain
2019235021- Saiful Sakib
2019235022- Anika Islam Chy Sadia

Date of submission: 22/09/2020

 INTRODUCTION TO BUSINESS

Definition of Business:

“ Business is the exchange of goods, services and money for mutual benefit or
profit”- skinner and ivancevich

“ Business is an institution organized and operated to provide goods and

services to society under the incentive of private gain”- b. o. wheeler

“ Business is basically an activity of people working alone or with others for the
purpose of producing and selling goods and services that the country requires” –
Dr. R.E. Gloss and H. A. Baker.

Business is defined as an organization or enterprising entity engaged in

commercial, industrial or professional activities. Business can be for profit
entities or they can be non profit organizations that operate to fulfil a charitable
mission or further social cause.

Why we should study business?

Business as a field of study is very practical. It is the study of applying ideas to

create or add value to a product or service in order to generate a profit.

The study of business will help us to increase our skills, sharpen our knowledge
and understand the business and economic links among nations. There are some
others reasons for which we study business:
1. Increasing Dependence on Others: Over the years, people have become more and
more dependent on others. The knowledge of business is increasing the understanding of
mutual dependence through business system. For example- you drive a car that
manufactured in japan.

2. International Opportunities: In the 21 century, it has become indispensable for

everyone especially individuals educated in business to take existing opportunities that
will exist around the world. By studying business, they can know how to start, operate and
sustain business successfully in the competitive world.

3. Improving Standard of Living: Standard of living indicates measure of how well a

person or family is doing in terms of satisfying needs and wants with goods and services.
This is possible through their knowledge of business. So, we must study business to
develop our standard of living.

4. Coping with Change: As like as the world itself , business is also dynamic-always
changing. Coping with both predictable and unpredictable events we must have to study
business. If a man does not study business, he/she is sure to fail to fit himself/herself in the
business world.

5. Preventing Misconceptions: Understanding business also prevents us accepting

misconceptions, misformation and inaccurate data as truths

6. Creating Employment: Business creates more and more employment opportunities in

various industries and trades for skilled as well as unskilled workers.

7. Division of Labor: Division of labor implies the distribution of man power in a

community for obtaining the maximum production and for improving the quality of
output.

8. Utilization of Resources: A country’s resources are used to produce goods and

services that will meet the needs and wants of people. By studying business, we can easily
know how to use properly our resources such as capital resources (fuel, raw metarials,
paper and money), natural resources(oil, natural gas, minerals, timber and water), and
human resources (human talent, skills and competence, available in the nation).

People from the core of business:

The human element is the core of business. Business need people as owner managers,
employees, and consumers, people need business for the production of goods and services
and the creation of jobs.

1.Owners:– Owners are those people who take the risk of initiating a business. They
provide capital for starting business .Most of large business organizations are owned by a
large number of people called shareholders. They run the business through expert people
called managers.

2. Managers:- Managers are those people who are responsible for executing the decision
of the upper level. They make the things done through others. The manager may be either
the owner himself (entrepreneur) or professionals employed by the owner with primary
objective of earning profit managers set plans to earn profit through selling products and
continuous growth in the market.

3. Employees:– They are lower, middle or operation level workers engaged with the
activities as directed by their top boss. They are the people who provide the skills and
abilities to produce products, services and other consumer needed items to sell and earn
profits. To compete with other businesses a business enterprise needs a committed and
effective team of employees. In lieu the employees get salaries compatible to the spills. To
earn profit and growth, the business or firms need committed, dedicated and effective
employees. The efficiency of the employees depends on the training systems needed for
the particular products or services.

4. Consumers:- The demand of a product is created as the consumers consume it so

consumers are the ultimate buyers of an organization products. A consumers is a person,
Group of person firm or any other organizations who purchases goods or services for
personal or organizational use. All consumers want to have quality
and reliable goods and services. Hence business firms should provide those quality
services as and when the customers need them and thus attracting more and more
customers indicating further and further growth. A business enterprise attempts to satisfy
consumer needs and desires while earning a profit. Consumers continual want more and
better accommodate the demand. When a need or desire for products or services exists, a
business can earn a profit by supplying it promptly and efficiently.

Objective of business:

Success in the business cannot be achieved without the setting of right objectives.
Objective may differ from one unit to other in view of nature of an organization. All
businessman do not have the same objectives to run the business. Sometimes some of the
objectives are social welfare oriented: and some of the objectives are profit oriented.
Objectives must be cleared and consistent to achieve the mission of an organization. Lists
of business objectives generally include such as factors as profit, survival, growth, and
social responsibility.

1. Profit: The main objective of business is earn profit. The profit objective playes the
major role in business. However, profit means different things to different people because
of their values, attitude, and perceptions. Profit may be of two types-

(a)Business profit: The difference between business income(revenue) and business

expenses(cost) selling price minus all cost of making and selling a product including
taxes.

(b)Economic profit: What remains after expenses and opportunity costs are subtracted
from income. Opportunity cost of choosing to use resource for a purpose., which results in
sacrificing the next best alternative for the use of those resources.

2. Survival: Survival is the prime objective of business. Survival is very essential to

ensure other objective of business and compete in the competitive global market.
3.Growth: Growth is inevitable for a firm to successful. The following indicators can
measure growth of a firm.
-Increase market share
-increasing productivity
-Long term relationship with customer, supplier, competitor and marketing intermediaries.
-Harmonious labor relations.
-Good corporate culture.

4. Social responsibility: Profit earning cannot be the sole motive o f business activity.
Businessman has a social responsibility that must be met. Moreover, business organization
produces goods and services to generate profit. At the same time, it must have some
impact on society as well as the whole community. The responsibility of business is to
provide the goods and services in that way, which are not harmful to the society. Besides
another responsibility of businessman is to supply goods and services at a fair price.

In addition to fulfilling numerous rules, businessman need to perform some specific

objectives such as-
-creation of employment
-creation of markets
-using creativity
-investment of capital
-exploitation of resources.

Forms of business / what types of business right for you?

We know very well that there are three different forms of business. They are-
(1) Sole proprietorship
(2)Partnership
(3)corporation
(1)Sole proprietorship: It is a kind of business where there is only one owner.
A business owned and managed by one individual. Highest number people
owned this type of business.

(2) Partnership: It is a business type where two or more owners are putting
money to run the business and share management and profits. They take
decision jointly.

(3)Corporation: It is a such type of business which has separate legal entity

from its owners.

So, we want to start off business, which type of business would suit for us that
depends on some features:

(a)Capital requirement
(b)Risk
(c)Control
(d)Managerial ability
(e)Time requirement
(f)The liability.
 Shahjalal University of Science and Technology
Sylhet.
An Assignment on Introduction to Busines Administration
Department of Political Studies(PSS)

Course Title: ​Introduction to Business

Course Code :​ BAN 171 (Non- Major)
Assignment Topic : ​Sole Proprietorship Business

Submitted to :
Dr.Md. Khairul Islam
Professor
Department of Business Administration
Shahjalal University of Science and Technology, Sylhet.

Submitted by​ : (Group-2 ) 1st year, 2nd semester.

​Munira Mahmud(25)
Shakil Howlader(26)
Salma Begum(27)
Sadia Afroz Biva(28)
Fatima Akhter Sumi(30)
Md.Shajib Hossen(31)
Ratul Deb(32)
Md.Borhan Uddin Hemel(33)
Jiban Chandra Pandith(34)
Mohaiminul Islam(35)

Date of Submission :​16/09/2020

 1

Sole Proprietorship Business

Introduction : ​A sole proprietorship is a business owned and managed by a single
individual. It is the most common and simplest type of business entity. A sole proprietorship
can have multiple people operating the business, but it must have one sole owner. Sole
proprietorships have several advantages over other business entities as well as they also
have disadvantages.

Definition of Sole proprietorship Business : ​Its a kind of business where

there is only one owner. A business owned and managed by one person.

The sole proprietorship is usually an active manager, working in his business everyday.
Generally, he owns a small service or retail operation such as restaurant, grocerybusiness
etc. The capital needed to start and operate the business is normally provided by the owner
through personal wealth or borrowed wealth.Actually, the highest number of people owned
this type of business.

Features of Sole Proprietorship:

The salient features of sole proprietorship form of organization are as under:

(1)​Single ownership : ​A sole trading concern is owned by one individual. It is run entirely at
his risk of loss. The sole trader provides both capital and management to the business.

(2) ​Less Formalities : ​A proprietorship business can be started without completing much
legal formalities. There are some business that to can be started simply after obtaining
necessary manufacturing licence and permits.

(3) ​Self management : The full control of the business is totally on the owner. He is the
supreme judges of all matters pertaining to it as he makes his own decisions. He bears the
entire risk and derives the total benefits. He has almost unlimited freedom of actions.

(4) ​No separate identity : No distinction is made between the business concern and the
proprietor. Both are one and the same.

(5) ​No separation between ownership and management : In proprietorship, management

rests with the proprietor himself /herself.The proprietor is a manager also.

(6) ​Capital : In sole proprietorship, the capital is employed by the owner himself from his
personal resources. He may also borrow money from his friends and relatives if he cannot
depend solely on his personal resources.

(7) ​No special legislation​ :​ Sole proprietorship is not governed by any special legislation.
 2

Advantages of Sole proprietorship business :

(1) ​Ease of starting : Sole proprietorship is the easiest way to start a business. Very few
legal formalities need to be fulfilled. There is no need to go for any registration or enter into
an agreement with some one. One can form it and dissolve it quickly.

(2) ​Enormous control​: ​In sole proprietorship business the proprietor has full control over
each and every activity of the business. He is the planner as well as the organiser, who
coordinates every activity in an efficient manner. Since the proprietor has all authority with
him, it is possible to exercise better control over business.

(3)​Sole participation in profits or losses : All profit earned or losses incurred by operating
the owner. In contrast, partners share profits and losses. In states, that permit one person to
own a corporation ownership of profits and losses in such cases compared to that in sole
proprietorship.

(4) ​Use of owners ability : The owner had everything to lose or gain from his efforts. The
chance of personal losses motivated him to devote time,energy and expertise to the owner's
operation and success depended largely on the efficient use of his abilities. The owner had
to use his own managerial abilities or pay someone else who had managerial expertise.
Either way, full credit for success on blame for failure belonged to the owner.

(5) ​Tax breaks​: A major advantage of the sole proprietorship business is that the buyer pays
no income tax. A corporation pays taxes on profits; its owners, the shareholders also pay
taxes on their dividends.

(6) ​Secrecy​: The owner filed information on income, expenses,hours and other items
required by income tax regulations. This information typically is not made available to the
public. Information such as the special formula for his business or financial data does not
have to be shared with across the country and out of company.

(7) ​Quick decision making​: ​In a sole proprietorship business the sole proprietor alone is
responsible for all decisions. Of course, he can consult others. But he is free to take any
decision on his own. Since no one else is involved in decision making it becomes quick and
prompt action can be taken on the basis of this decision.

(8) ​Flexibility​: ​The sole proprietor is free to change the nature and scope of business
operations as and when required as per his decision. A sole proprietor can expand or curtail
his business according to the requirement. For example, as the owner of a bookshop, one
has been selling books for school students. If he want to expand his business he can decide
to sell stationery items like pen, pencil, register, etc. If he are running an STD booth, he can
expand his business by installing a fax machine in his booth.
 3

Disadvantages of Sole Proprietorship Business :

(1) ​Unlimited liability​: In case the sole proprietor fails to pay the business obligations and
debts arising out of business activities, his personal properties may have to be used to meet
those liabilities. This restricts the sole proprietor from taking risks and he thinks cautiously
while deciding to start or expand the business activities.

(2) ​Difficulty in raising capital​: In sole proprietorship business, it is the owner who
arranges the required capital of the business. It is often difficult for a single individual to raise
a huge amount of capital. The owner’s own funds as well as borrowed funds sometimes
become insufficient to meet the requirement of the business for its growth and expansion.

(3) ​Limitations in managerial ability​: A sole proprietor may not be an expert in every
aspect of management. He/she may be an expert in administration, planning, etc., but may
be poor in marketing. Again, because of limited financial resources it is also not possible to
employ a professional manager. Thus, the business lacks benefits of professional
management.

(4) ​Lack of stability: The existence of sole proprietorship business is linked to the life of the
proprietor. Illness, death or insolvency of the owner brings an end to the business. The
continuity of business operation is therefore uncertain.

(5) ​Difficulty in hiring and keeping high-achievement employees​:​The sole proprietorship

is the business where can a self motivated, high energy employee go in the business.
Workers with their own visions and goals and a high drive to succeed often have to quit the
one person business to find opportunities for personal growth.

The causes of Survival of The Sole Proprietorship

Business:

(​ 1) ​Requirement of limited capital :​There are some businesses that do not require much
money. One sole proprietorship is considered to be the most useful for that national
business. Such as a drink shop, vegetable shop etc.

(2) ​Ease of Starting :​Like a large-scale business, the formation of a sole proprietorship
business does not require any legal process or complexity. Anyone with a little capital can
form this business.
 4

(3) ​Suitability of special field :​There are some business areas where it is not possible to
conduct large scale business but sole proprietorship business is the most profitable
organization. Such as daily necessities, products of limited demand, products of demand in
remote areas, traveling business, putrescent business, direct service business, professional
business, grocery shop etc.

(4) ​Direct relation between owner and customer​:​A direct relationship of owner, worker
and customer develops as the sole proprietorship business participates in running the
business itself. Large-scale business usually does not have the opportunity to create such a
relationship. As a result, in this aspect sole proprietorship can get good profit.

(5) ​Low risk​: Everyone prefers low risk businesses. Because low-income people usually
want to avoid risk. As a result, they prefer sole proprietorship business.

Conclusion: Sole proprietorship business usually does not have to be incorporated or

registered. Thus, it is the simplest form of business structure and the ideal choice to run a
small business or medium scale business. As a result, about 80% of the world's business is
sole proprietorship owned.
Shahjalal University of Science and Technology,Sylhet.(SUST)

Department of Political Studies (PSS)

Course title: Introduction to Business

Course Code: BAN 171 ( Introduction to Business) Non-Major

Assignment topic: A Partnership Business (Group 3)

Submitted To: Dr. Md. Khairul Islam

Professor Department of Business Administration

Shahjalal University of Science and Technology,Sylhet. (SUST)

Submitted by:

Dipannita Dey (2019235036)

Sumon Miah (2019235037)

Tusti Chakroborty (2019235038)

Hafsa Akther (2019235039)

Mst Nadia Akter Dipa (2019235040)

Md.Rana Mia (2019235042)

Md.Momin Uddin (2019235043)

Md. Anisur Rahman (2019235044)

Md. Ashikur Rahman Ashiq (2019235045)

Mst Khatiza tul Kubra (2019235046)

Md. Kyarul Islam Roni (2019235047)

Md. Mesbah Uddin Pavel (2019235048)

1st year 2nd Semester

Department of Political Studies (PSS)

Date of Submission: 20 November 2020

 A Partnership Business
Introduction: A business partnership is a way of organizing a company
that is owned and sometimes run by two or more people or entities. The
partners share in the profits or losses.Before we establish a business
partnership, we should investigate the various types of partnerships that
are available and how each of them works.

A business partnership is a legal relationship that is most often formed by

a written agreement between two or more individuals or companies. The
partners invest their money in the business, and each partner benefits from
any profits and sustains part of any losses.The partnership as a business
often must register with all states where it does business. Each state may
have several different kinds of partnerships that we can form, so it's
important to know the possibilities before us register.

Definition:Section 4 of the partnership Act defines a partnership as

follow:"Partnership is the relation between persons who have agreed to
share the profits of a business carried on by all or any of them acting for
all."

Types of Partnership: There are three different kinds that are

commonly set up.

• A general partnership (GP) consists of partners who participate in

the day-to-day operations of the partnership and who have
liability as owners for debts and lawsuits.

• A limited partnership (LP) has one or more general partners who

manage the business and retain liability for its decisions and one or
more limited partners who don't participate in the operations of the
business and who don't have liability.
 • A limited liability partnership (LLP) extends legal protection
from liability to all partners, including general partners. An LLP is
often formed by partners in the same professional category, such as
accountants, architects, and lawyers. The partnership protects
partners from liability from the actions of other partners.

Characteristic: A partnership as defined in the Act,must have three

essential elements.

1)There must be an agreement entered into by two or more persons.

2)The agreement must be to share the profits of a business.

3)The business must be carried on by all or any of them acting for all.

Advantage of Partnership business:

1)More Capital: In the sole proprietorship, the amount of capital is

limited to the personal wealth and credit of the owner. In a partnership,
the amount of capital may increase significantly. A person with a good
idea but little capital can look for a partner with the capital and/or credit
standing to develop and market the idea.

2)Combined managerial skills: In a partnership, people with different

talents and skills may join together. One partner may be good at
marketing; the other may be expert at accounting and financial matters.
Combining these skills could provide a greater chance of success.
3)Ease of starting: Because it involves a private contractual agreement,
a partnership is fairly ease to start. It is nearly as free from government
regulation as a sole proprietorship. The cost of starting a partnership is
law; it usually involves only a modest legal fee for drawing up a written
agreement, which is highly desirable. An oral agreement is sufficient but
not recommended.

4)Clear legal status: Over the years, legal precedents for partnership
have been established through court cases. The questions of rights,
responsibilities, liabilities, and partner duties have been covered. Thus the
legal status of the partnership is clearly understood; lawyers can provide
sound legal advice about partnership issues.

5)Tax advantages: The partnership has some potential tax advantages

over a corporation. In a partnership, as in a sole proprietorship, the owners
pay taxes on their business earnings. But the partnership as a business
does not pay income tax.

Disadvantages of a partnership business:

1)Unlimited liability: Each general partner is liable for a partnership's

debts.Suppose Jack and Jill's partnership fails with outstanding bills of
$25,000. This amount must be paid by someone. If Jack lacks the personal
assets to pay the debt and Jill has the money, she has to pay off the debts.
This is one reason for choosing partners carefully.

2)Potential disagreements: Decisions made by several people (partners)

are often better than those made by one. However, having two or more
people deciding on some aspect of the business can be dangerous. Power
and authority are divided, and the partners will not always agree with each
other. As a result poor decisions may be made. Also, decision making
becomes more time consuming because agreement must be reached
before action can be taken.

3)Investment withdrawal difficulty: A person who invites money in a

partnership may have a hard time withdrawing the investment. It is much
easier to invest in a partnership than to withdraw. The money, typically
considered a "frozen investment," is tied up in the operation of the
business.

4)Limited capital availability: The partnership may have an advantage

over the sole proprietorship in the availability of capital, but it does not
compare to a corporation in ability to raise capital. In most cases, partners
have a limited capability and can not compete in business requiring large
outlays. The amount of capital a partnership can raise depends on the
personal wealth of the partners and their credit ratings. It also depends on
how much they are willing to invest in the partnership.

5)Instability: If a partner dies or withdraws from the business, the

partnership is dissolved. A new partnership or some other form of
business organisation must be legally established.

Who can be Partner ?

1)Person: Under the Indian partnership Act, a person may be partner if

he has the capacity to enter into a contract (capacity of parties)
2)Minor: A minor can not be a partner. But in an existing partnership, a
minor can be admitted into a firm if all the partners of the firm agree such
a minor gets all the benefits of the partnership.

3)Person of unsound mind: A person who is of unsound mind can not

become a partner.

4)Woman: A woman can be a partner, married or unmarried, of course a

woman can not be a partner if she is a minor or she is of unsound mind.

5)Company: In a company the capacity to enter into contract is

determined by the memorandum and article of the association of the
company. The liability of the members of a firm under the partnership
Act, for the debts of the firm, is unlimited. But a company can not incur
unlimited liability. There fore a company can not become a partner of a
firm.

6)An alien enemy: An alien enemy can not into a contract of partnership
with a citizen of Bangladesh

Conclusion: This paper considered some of the issues concerning, and

key dimension of partnerships in general, by particularly in the case of
economic development and regenerations. It suggests that there is a need
to form frameworks and to make partnerships more effective. However,
this paper also indicates that, despite the diversity of partnership, there
are general dimensions that can begain to build towards a more general
framework.
Reference

Skinner, S. J. (2003). Business for the 21st Century. USA: Von Hoffmann
Press, Inc.

Murray, J. (2020). What is a Business Partnership? Available here:

https://www.thebalancesmb.com/what-is-a-business-partnership-398402.
(Accessed on 17 November 2020).

Md.Rana Mia

Reg.No: 2019235042

Department of Political Studies(SUST)

Assignment: Group: 3(Three)

All members Reg.No: 36,37,38,39,40,42,43,44,45,46,47,48

 Shahjalal University of Science & Technology
4th group (PSS 1st year 2nd semester)

Assignment Topic: Company /Corporation Business

Course Name(code) : Introduction to Business(BAN-171)

Submitted To: Dr. MD. Khairul Islam

Professor, Department of Business Administration.
Shahjalal University of Science & Technology.

Submitted by: 4th Group

Group members :
1. Farhana Akter Promi- 2019235049
2. Ahmed Razia Ruzi- 2019235050
3. Tofazzal Ahammed(Hridoy) – 2019235051
4. Hasibur Rahman- 2019235052
5. Tufazzol Islam Shawon-2019235054
6. Safal das-2019235055
7. Marjana-2019235056
8. Nabilah Ma-ee-sha-2019235057
9. Noman Miah-2019235058
10. Sudhir khisha- 2019235059
11. Jayma Akter -2019235067
12. Suhana Abedin Lamisa-2019235069

th
Date:12 November,2020

1
 1. Definition of ‘Company’
A company is a legal entity formed by a group of individuals to engage in and
operate a business enterprise in a commercial or industrial capacity.
Lord Justice Lindley defines a Company as follows : By a company is meant
association of many persons who contribute money or money’s worth to common
stock and employ it for a common purpose. The common stock so contributed is
denoted in money and is the capital of the company. The persons who contribute it
or to whom it belongs are members. The proportion of capital to which, each
member is entitled is his share.
2. Advantages & Disadvantages of Company Business
Advantages of Company business :
 Large Financial Resources: A joint-stock company can collect a large
amount of capital through small contributions from a large number of people.
In public limited companies, shares can be offered to the general public to
raise capital. They can also accept deposits from the public and issue
debentures to raise funds.

 Limited Liability: In the case of a company, the liability of its members is

limited to the extent of the value of shares held by them. The private property
of members cannot be attached to the debts of the company.

 Professional Management: Management of a company is vested in the

hands of directors, who are elected democratically by the members or
shareholders. These directors, as a group known as Board of Directors (or
simply Board), manage the affairs of the company and are accountable to all
the members.

 Large-scale Production: Due to the availability of large financial resources

and technical expertise, companies can have large-scale production. It
enables the company to produce more efficiently and at a lower cost.

 Contribution to Society: A joint-stock company offers employment to a large

number of people. It facilitates the promotion of various ancillary industries,
trade, and auxiliaries to trade.

 Research and Development: Only in company form of business, it is

possible to invest a lot of money on research and development for improved
processes of production, new design, better quality products, etc.

Disadvantages of Company business :

 Double taxation of profits: Corporations must pay federal and state income
taxes on their profits. In addition, any profits (dividends) paid to stockholders
are taxed as personal income, although at a somewhat reduced rate.

2
  Difficult to form: The formation or registration of a joint-stock company
involves a complicated procedure. Several legal documents and formalities
have to be completed before a company can start its business.

It requires the services of specialists such as Chartered Accountants,

Company Secretaries, etc. Therefore, the cost of formation of a company is
very high.

 Excessive government control: Joint-stock companies are regulated by the

government through the Companies Act and other economic legislations.
Particularly, public limited companies are required to adhere to various legal
formalities as provided in the Companies Act and other legislation.

 Delay in policy decisions: Generally, policy decisions are taken at the Board
meetings of the company. Further, the company has to fulfil certain procedural
formalities. These procedures are time-consuming and, therefore, may delay
action on the decisions.

 Separation of Ownership and Management: The ownership and

management of public company is in different hands. The owners i.e.,
shareholders play an insignificant role in the working of the company. On the
other hand, control is in the hands of those who have no stakes in the
company. The management may indulge in speculative business activities.
There is no direct relationship between efforts and rewards. The profits of the
company belong to shareholders and the Board of Directors are paid only a
commission.

 Lack of Secrecy: The Management of companies remains in the hands of

many persons. Everything is discussed in the meetings of board of directors.
The trade secrets cannot be maintained. In case of sole trade and partnership
concern such secrecy is possible because a few persons are involved in
Management.

3. Memorandum of Association
The memorandum of Association is a document which contains the fundamental
rules regarding the constitution and activities of a Company . It is the most important
document of a company. It states the objects for which the company is formed. It
contains the rights, privileges and powers of the company. It is treated as the
constitution of the company. It determines the relationship between the company and
the outsiders.

 Name Clause: This clause states the company's proposed name.

 The name of the company with the word ‘limited’ at the end of the
name of a public company and the words ‘private limited ‘ at the end of
the name of a private company.
 can't be identical to any existing company's name.
 It can't allude to the new company doing the business of an existing
company.

3
  Situation Clause: The name of the state in which the registered office of the
company is to be situated

The registered office clause lists the name of the state where the company's
registered office is physically located.

 The registered office's physical location determines which jurisdiction

the Registrar of Companies and which court the company would fall
under.
 It also confirms the company's nationality.
 The registered office's full address must be provided to the Registrar of
Companies to simplify further communications.

 Objects Clause: The objects clause, also called the objective clause, is
considered the most important in the MOA

 It defines and limits the scope of the company’s operations.

 It details the company's scope of activity for the members and explains
how the members' capital will be used.
 It protects shareholders funds and ensures the funds will be used for
the specific business purposes for which they were raised and that they
won't be risked in other endeavours

 Area of operation Clause : This clause includes the location of the company
where it will operate its business

 Liability Clause: The liability clause explains what liability each of the
company's members faces. If the company is limited by shares, the liability
that each member faces can be no more than the face value of shares that he
or she holds. If it's a company that's limited by guarantee, this clause must
define how much liability each individual company member holds.

 Capital Clause: The capital clause lists information about the total capital
held by the proposed company. This amount is called the company's
authorized capital. Companies aren't permitted to collect more money than the
amount listed under authorized capital. The way the capital is divided into
equity share capital and preference share capital also needs to be listed in the
capital clause.

4. Articles of association

Articles of association (AOA) form a document that specifies the regulations for a
company's operations and defines the company's purpose. The document lays out
how tasks are to be accomplished within the organization, including the process for
appointing directors and the handling of financial records.

 A set of rule and regulations governing the company’s working.

4
  Describe powers, duties, rights, and liabilities of individuals associated with
the organization.
 Its drafting is as per the requirements of the organization.
 Subordinate to the Companies Act, as well as is memorandum.

5. Formation of a Company

03 Stages of company formation process-

1. Initiative stage
2. Registration stage
3. Startup stage
1. Initiative stage: According to the Companies Act of 1994, in order to form a
private limited company, at least two (2) people and in order to form a public limited
company, at least seven (7) people have to take initiative.

2. Registration stage:
A. Collection and filling of registration form
B. Preparation and attachment of documents

Documents are to be submitted with the application form:

i.1 copy of memorandum

ii.1 copy of parcel rules
iii. A declaration from the promoters about the amount of total capital of the
proposed company
iv. List of names of directors and the amount of minimum qualifying shares they
have created
v. Declaration on the proposed name of the company [the word limited must be
written at the end of the name]
vi. A declaration by a lawyer or Chartered Accountant or any director of the
company to the effect that the provisions of the Companies Act have been properly
complied with.

If the registrar of the company is satisfied with the proper documents, the promoters
of the company are given the Certificate of Incorporation of the company with its
signature and seal.

5
  Private Ltd. Company can start work immediately after receipt of
registration - but, Public Ltd. Company has to collect - Permission to start
work.
Collection of permission to start work
Public Limited Company has to collect the Certificate of Commencement after
receiving the registration form.
i. A printed copy of the prospectus or alternative prospectus
ii. Full details of names, addresses, surnames, occupations, etc. of the directors
iii. Written and signed consent form of each director to be willing to work as a
director
iv. Declaration to the effect that the directors have paid the minimum qualifying
share price

If the registrar is satisfied after reading the documents, he gives the work permit to
the public limited company.

3. Startup stage: At this stage the public limited company started working and took
steps to raise the required capital.

6
An assignment on Introduction to business Administration

Dept. Political studies

Course title: Introduction to business

Course code: ban 171(non-major)

Assignment topic: Management And Organization

Course teacher: Dr.Md. Khairul islam

Submitted by:
(Group 5) 1st year,2nd Semester
Md Naim mia(70)
Submitted to: Torikul Islam Khan(71)
Farhan abid khan(72)
Dr.Md. Khairul Islam Md. Noor Hasnat Emon(73)
Professor Sadia Shakhawat(74)
Dept. of Business Administration Md.Shakil(75)
Shahjalal University of Science and Technology, Arshadul Hoque Roni(76)
Sylhet
Ibrahim rahman jim(77)
Mohsina Akter(78)
Tahnik Hamim Poulome(79)
 Management And Organization

Management
Management is the process of achieving organizational objectives through people and other
resources. Management is the coordination and administration of tasks to achieve a goal. Such
administration activities include setting the organization’s strategy and coordinating the efforts of staff to
accomplish these objectives through the application of available resources. Management can also refer
to the seniority structure of staff members within an organization.

Management Levels: A Hierarchical View,

An organization can have many different management, across many different titles, authority
levels, and levels of the management hierarchy.
The three levels of management typically found in an organization are,
1.low-level management/ Supervisory / Fast-level
2.middle-level management, and
3.top-level management/Upper level management.

Duties of Management Levels: An Overview

Top-level management:
The board of directors, president, governor, mayor, vice-president, CFO and CEO are all under
of top-level management.
*This management are responsible for controlling and overseeing the entire organization.
*Inspire executives and employees to achieve their visions for the company’s future.
*They develop goals, strategic plans, company policies, and make decisions on the direction of
the business.
In addition,
*Top-level management plays a significant role in the mobilization of outside resources.
*Top-level management is accountable to the shareholders and general public.
Middle-level management:

Division Head, Director Dean, Regional managers, General managers, branch managers, and
department managers are all under of middle-level management. They are accountable to the
top management for their department’s function.
Middle-level management devotes more time to organizational and directional functions than
top-level management. Their roles can be emphasized as:
*Focus on specific operations, products, or customers group within an organization.
*Executing organizational plans in conformance with the company’s policies and the objectives
of the top management;
*Defining and discussing information and policies from top management to lower management;
and
*most importantly Inspiring and providing guidance to low-level employees towards better
performance.

Low-level management:
Department chairperson, Supervisors, section leads, and foremen are examples of low-level
management titles. This management focuses on controlling and directing.
Low-level management usually have the responsibility of:
*Implement the plans developed by middle managers.
*Responsible for non-manager employees.
*Motivate workers to accomplish daily, weekly and monthly goals.
*Assigning employee’s tasks;
*Guiding and supervising employees on day-to-day activities;
*Ensuring the quality and quantity of production;
*Making recommendations and suggestions; and
*Solving employee problems.
Skills Needed for Management Success:
According to American social and organizational psychologist Robert Katz, the three basic types
of management skills include:

1. Technical Skills

Manager's ability to understand and use the techniques, knowledge and tools and equipment of
a specific discipline or department. Technical skills involve skills that give the managers the
ability and the knowledge to use a variety of techniques to achieve their objectives. These skills
not only involve operating machines and software, production tools, and pieces of equipment
but also the skills needed to boost sales, design different types of products and services, and
market the services and the products.

2. Conceptual Skills

Ability to see the organization as a unified whole and to understand how each part of the overall
organization interacts with other parts. These involve the skills managers present in terms of
the knowledge and ability for abstract thinking and formulating ideas. The manager is
able to see an entire concept, analyze and diagnose a problem, and find creative
solutions. This helps the manager to effectively predict hurdles their department or the
business as a whole may face.
3. Human or Interpersonal Skills

Interpersonal skills that enable a manager to work effectively with and through people The
human or the interpersonal skills are the skills that present the managers’ ability to
interact, work or relate effectively with people. These skills enable the managers to make
use of human potential in the company and motivate the employees for better results.
Functions of Management Process:
Functions of management is a systematic way of doing things. Management is a process to
emphasize that all managers, irrespective of their aptitude or skill, engage in some inter-related
functions to achieve their desired goals.
4 Functions of management are planning, organizing, leading and controlling that managers
perform to accomplish business goals efficiently. First; managers must set a plan, then organize
resources according to the plan, lead employees to work towards the plan, and finally, control
everything by monitoring and measuring the effectiveness of the plan.
Management process/functions involve 4 basic activities;
1. Planning and Decision Making – – Determining Courses of Action,
2. Organizing – Coordinating Activities and Resources,
3. Leading – Managing, Motivating and Directing People,
4. Controlling – Monitoring and Evaluating activities.
1. Planning and Decision Making – Determining Courses of Action

Process of determining courses of action for achieving organizational objectives.

Planning means setting an organization’s goal and deciding how best to achieve them. Planning
is decision making, regarding the goals and setting the future course of action from a set of
alternatives to reach them. The plan helps to maintain managerial effectiveness as it works as a
guide for the personnel for future activities. Selecting goals as well as the paths to achieve them
is what planning involves. Planning involves selecting missions and objectives and the actions to
achieve them, it requires decision-making or choosing future courses of action from among
alternatives.

2. Organizing – Coordinating Activities and Resources

Blending human and material resources through a formal structure of authority. Organizing can
be defined as the process by which the established plans are moved closer to realization. Once a
manager set goals and develops plans, his next managerial function is organizing human
resource and other resources that are identified as necessary by the plan to reach the goal.
Organizing involves determining how activities and resources are to be assembled and
coordinated.

The organization can also be defined as an intentionally formalized structure of positions or

roles for people to fill in an organization. Organizing produces a structure of relationships in an
organization and it is through these structured relationships that plans are pursued. Organizing,
then, is that part of managing which involves: establishing an intentional structure of roles for
people to fill in the organization

3. Leading – Managing, Motivating and Directing People

Guiding and motivating employees to accomplish organizational objectives.

Leading is considered to be the most important and challenging of all managerial activities.

Creating a positive attitude towards the work and goals among the members of the
organization is called leading. It is required as it helps to serve the objective of effectiveness and
efficiency by changing the behavior of the employees

The functions of direction, motivation, communication, and coordination are considered a

part of the leading processor system. Efficient managers need to be effective leaders.
4. Controlling – Monitoring and Evaluating Activities

Evaluating an organization’s performance of determine whether it is accomplishing it’s

objectives.

Monitoring the organizational progress toward goal fulfillment is called controlling.

Monitoring progress is essential to ensure the achievement of organizational goals.

Control activities generally relate to the measurement of achievement or results of actions

that were taken to attain the goal.

1. Establish performance standards.

2. Monitor actual performance.

3. Compare actual performance with established standards.

4. Take corrective actions if required.

***Planning, organizing, leading, and controlling are the 4 functions of management;

which work as a continuous process.

Mission and Vision Statements:

Mission: A Mission Statement defines the company’s business, its objectives and its
approach to reach those objectives

Vision is the perception of marketplace needs and the methods an organizations can use to
satisfy them. -Must be foused yet adaptable to change in the business environment.

Vision: A Vision Statement describes the desired future position of the company. Elements
of Mission and Vision Statements are often combined to provide a statement of the
company’s purposes, goals and values. However, sometimes the two terms are used
interchangeably.
Companies use Mission and Vision Statements to:

• Guide management’s thinking on strategic issues, especially during times of significant change

• Help define performance standards

• Inspire employees to work more productively by providing focus and common goals

• Guide employee decision making

• Help establish a framework for ethical behavior

• Enlist external support

• Create closer linkages and better communication with customers, suppliers and alliance par
serve as a public relations tool.

Vision And Ethical Standards for Management:

‘Management Ethics’ is related to social responsiveness of a firm. It is “the discipline dealing

with what is good and bad, or right and wrong, or with moral duty and obligation. It is a standard
of behaviour that guides individual managers in their works”.

“It is the set of moral principles that governs the actions of an individual or a group.”

Business ethics is application of ethical principles to business relationships and activities. When
managers assume social responsibility, it is believed they will do it ethically, that is, they know
what is right and wrong.

**Long term success is tied to the ethical standards that top executives set.

**High ethical standards can also encourage, motivate and inspire employees to
achieve goals.
Planning at different management level:
Primary types of planning Managerial level Examples

Strategic Top management Executive coaching

Tactical Middle management
Operational Supervisory management
Contingency Primarily top management
but all levels contribute
,change management
,leadership, delegation &
empowerment etc .
Problem solving ,team
building, Talent
development ,performance
management etc.
Emotional intelligent and
coaching for performance
etc
Changing Plan for actions
and controlling emergency

Organization:
An organization, or organization, is an entity – such as a company, an institution, or an
association – comprising one or more people and having a particular purpose.

Strategic planning process:

Strategic planning is the basis for everything we do productively in the organization – or at least
it should be. It is the process of formulating and implementing decisions about an organization’s
future direction. This process is vital to every organization’s survival because it is the process by
which the organization adapts to its ever-changing environment, and the process is applicable
to all management levels and all types of organizations.

Strategic planning processes can be of different types depending on the organization.

Some examples of strategic planning process can be :

1.Identify your core mission.

2.Have a future-focused vision statement.

3.Identify priorities.

4.Build a communication or rollout plan.

5.Hold people accountable.

6.Review
Or,
1.The Formulation Process
2.The Implementation Process
3.The Implementation Process
4.Project Management Process
5.The Project Selection Process

Or,
1. Identify Your Strategic Position
2. Gather People and Information
3. Perform a SWOT Analysis
4. Formulate a Strategic Plan
5. Execute Your Strategic Plan
6. Constantly Monitor Performance.

SWOT Analysis
SWOT means strengths, weaknesses, opportunities, and threats. SWOT analysis can help you
refine your organization’s goals. it can proceed in the most constructive way.

“SWOT (Strengths, Weaknesses, Opportunities, Threats)

Organizational environment:
Organizational environment is a dynamic and changeable thing. This change appears
frequently. Every move stands the challenges. It is highly essential for leaders and managers.

There are two types of organizational environment.

Those are the followings:
1.Internal environment (strengths, weaknesses)

2.External environment (opportunities, threats)

 Fig. Organizational environment

A SWOT analysis helps find the best match between environmental trends (opportunities and
threats) and internal capabilities.

 A strength is a resource or capacity the organization can use effectively to achieve its
objectives.
 A weakness is a limitation, fault, or defect in the organization that will keep it from
achieving its objectives.
 An opportunity is any favourable situation in the organization's environment. It is usually
a trend or change of some kind or an overlooked need that increases demand for a
product or service and permits the firm to enhance its position by supplying it.
 A threat is any unfavourable situation in the organization's environment that is potentially
damaging to its strategy. The threat may be a barrier, a constraint, or anything external
that might cause problems, damage or injury.” (Rowe, 4th Edition, 1994)

Managers as leaders:
*Leadership is the ability to direct or inspire people to attain organizational goals.
*Involves the use of influence or power.
*Three traits are common among many leaders.
1.Empathy
2.Self-awareness
3. Objectivity in dealing with others.
Traits of a leader:
The most important qualities of a good leader include;

*Communication
*Integrity.
*Accountability.
*Empathy.
*Humility.
*Resilience.
*Vision.
*Influence.
*Positivity.
*Delegation.
*Confidence

How managers make decision:

Steps of the Decision-Making Process

Develop Select and Follow up to

Recognize
Alternative Evaluate Implement Determine
Problem or
Course of Alternatives Chosen Effectiveness
Opportunity
Action Alternative of Decision
Leadership Styles:
Autocratic Leadership Style
Autocratic Leadership is a leadership style characterized by individual control over all decisions
and little input from group members. Autocratic leaders typically make choices based on their
own ideas and judgments and rarely accept advice from followers.

Some of the primary characteristics of autocratic leadership include:

1.Make decision on own without consulting employees.

2.Little or no input from group members
3.Leaders make the decisions
4.Group leaders dictate all the work methods and processes
5.Group members are rarely trusted with decisions or important tasks

Democratic Leadership Style

Democratic leadership is a type of leadership style in which members of the group take a more
participative role in the decision-making process.

Some of the primary characteristics of democratic leadership include:

1. Involve employees in decisions,delegate assignments and ask employees for suggestions.
2.Group members are encouraged to share ideas and opinions, even though the leader retains
the final say over decisions.
3.Members of the group feel more engaged in the process.
4.Creativity is encouraged and rewarded.

Free-rein Leadership Style

Free-rein leadership, also called Laissez-Faire, is a type of leadership style in which leaders are
hands-off and allow group members to make the decisions.

Some of the primary characteristics of Free-rein leadership include:

1. Leave most decisions to employees.
2.Very little guidance from leaders
3.Complete freedom for followers to make decisions
4.Leaders provide the tools and resources needed
5.Group members are expected to solve problems on their own
Corporate culture:
Corporate / Organizational culture encompasses values and behaviors that contribute to the
unique social and psychological environment of a business

Corporate Culture Organizations system of principles, beliefs and values.

Managerial philosophies, communications networks, and practice all influence corporate

culture.

Organizational Chart:
An organizational chart, also called organigram or organogram, is a diagram that shows the
structure of an organization and the relationships and relative ranks of its parts and
positions/jobs.

Some examples of organizational chart:

References
Rowe, M. D. (4th Edition, 1994). Strategic Management: a methodological approach. Addison-Wesley,
Reading Mass.

Powns,B. “The Strategic Planning Process in 6 Steps” BUSINESS BENEFITS GROUP. November 19, 2018.
Accessed November 01,2020. https://www.bbgbroker.com/strategic-planning-process-6-steps/

Nickels,J.McHugh,B. (2010). Understanding Business. McGraw-Hill Irwin.

Prachi,J. “Levels of Management “ MSG Experts. October 6,2018.Accessed November 01,2020.

https://www.managementstudyguide.com/management_levels.htm

Rowe,M.Dickel,M. “Strategic Management: a methodology approach”. 4th Edition, 1994.

AdditionWesley.
Shahjalal University of Science and Technology
SUST
Department of Political Studies
Group Assignment
Course Title: Business Administration
Course Code: BAN171
Assignment Topic: Human Resource Management
Submitted to: Dr. Md Khairul Islam
Professor
Department of Business Administration
Submitted by: Assignment Group-6
Dept. of Political Studies
Md abu taher sakib- 2019235080
Israt Jahan Spriha- 2019235081
Fatema Khanam- 2019235082
Md. Riyad Hasan- 2019235083
Md Shafayat Jamil- 2019235084
Mahmudul Hasan Rahim- 2019235085
Md Fahim Ahmed- 2019235086
Mst Sadeka Begum- 2019235087
Habibur Rahman Masrur- 2019235088
Shah Muhammod Ashraful Islam- 2019235089
Date of Submission: 29 November, 2020
Introduction

Human Resource Management or HRM is a strategic approach to the effective management of people in a
company or organization such that they help their business gain a competitive advantage. It is a process of
recruiting employees, training them, compensating them, and developing policies related to them.
Generally, the duties of a human resource manager fall into three major areas_ staffing, employee
compensation and benefits, and defining/designing work. Essentially, HRM intends to maximize the
company's productiveness by optimizing the effectiveness of employees. Function of attracting,
developing, and retaining enough qualified employees to perform the activities necessary to accomplish
organizational objectives.

Major Objectives of HRM

The primary objective of HRM is to ensure the availability of a competent and willing workforce to the
organization. A company’s success depends upon its qualified, well-trained, and productive workforce.
Apart from this, there are several important objectives of HRM which includes
● Providing qualified, weII-trained employees for the organization.
● Maximizing employee effectiveness in the organization.
● Satisfying individual employee needs through monetary compensation, benefits, Opportunities to
advance, and job satisfaction.

Functions of HRM

The Human Resource Management department is responsible for a wide variety of activities. These
functions include_ Employee Recruitment and Selection, Employee Training and Development, Planning
for staffing needs, Employee Separation, Employee Compensation, etc. Some of the core functions of
Human Resource Management are given below:
● Employee recruitment and selection*
● Employee training and performance evaluation*
● Employee compensation and benefits
The more privileges the company provides, the more attractive the company becomes. The primary
objective of this function is to ensure equitable remuneration to everyone. Compensation and Benefits
also boost up the productivity of the employees.
● Job Analysis and Design:
○ Job Analysis means describing the nature of the job, its duties, and responsibilities. Job
Design is the process of making plans and outlining tasks for a specific job.
● Employee separation
Employee separation happens whenever someone who works for you leaves your business. The
separation can be voluntary, such as when an employee quits, leaves, or retires. Separation can also be
involuntary, such as when you have to let someone go, for poor performance or another reason.
 ○ Voluntary Separations of Employees
○ Involuntary Separations of Employees
■ Retirement
● Compulsory Retirement
● Voluntary Retirement
■ Resignation
■ Layoff
■ Retrenchment
■ Dismissal
○ Severance pay
● Planning for staffing needs
○ Right Time
○ Right Kind
○ Right Number
○ Right Place

Recruitment and selection

● Recruitment refers to the process where potential applicants are searched for, and then
encouraged to apply for an actual or anticipated vacancy.
● Selection is the process of hiring employees among the shortlisted candidates and providing them
a job in the organization.

Prerequisites to think
● Must follow legal requirements
● Equal Employment Opportunity
● Hiring is a costly process for employers
● Some employers require employment tests (knowledge of mechanical, technical, language, and
computer skills)
● Cognitive ability tests

Recruiting Goals
Finding and retaining the best hires starts with setting realistic recruiting goals. In addition to helping you
develop your hiring strategy, goal-setting can ensure that your team is aligned with your overall business
needs.

How to set Goals

● Specific
○ Define the goal you want to accomplish and why
● Measurable
○ Be able to quantify the goal
● Achievable
○ Determine if you have the ability to accomplish the goal
 ● Reasonable
○ See if the goal is worth your time
● Time-based
○ Establish a timeframe for reaching the goal

Constraints on recruiting efforts include

○ Organization image
○ Job attractiveness
○ Internal organisational policies
○ Government influence, such as discrimination laws
○ Recruiting costs

Steps
● Identify job requirements
○ Job specifications
○ Job description
○ Choose sources of candidates
■ Internet
■ Schools
■ Employee reference
■ Promotion from within
■ Colleges
■ Ads/want
○ Review application and resumes
○ Interview candidates
○ Conduct Employment
■ Test and check references
○ Conduct follow up interviews
○ Select a candidate and negotiate an offer
■ Compensation and benefits
■ Job performance expectations
■ Accommodation for disabilities

Recruiting Sources
● Sources should match the position to be filled
● The internet is providing many new opportunities to recruit and causing companies to revisit past
recruiting practices

The internal search

● Organizations that promote from within identify current employees for job openings
- by having individuals bid for jobs
- by using their HR management system
- by utilizing employee referrals
 ● Advantages of promoting from within include
- Good public relations
- Morale building
- Encouragement of ambitious employees and members of protected groups
- Availability of information on existing employee performance
- Cost-savings
- Internet candidates’ knowledge of the organization
- The opportunity to develop mid-and-top-level managers
● Disadvantages include
- possible inferiority of internal candidates
- infighting and morale problems
- potential inbreeding

Employee referrals/recommendations
● Advantages include :
- The employee's motivation to make a good recommendation
- The availability of accurate job information for the recruit
- Employee referrals tend to be more acceptable applicants, to be more likely to accept an
offer and to have a higher survival rate.
● Disadvantages include :
o The possibility of friendship being confused with job performance
o The potential for nepotism
o The potential for adverse impact
Employee training and performance evaluation

After hiring employees it is important to provide them with proper training. The success of the
organization depends on how well the employees are trained for the job and what are their growth and
development opportunities within the companies. HRM ensures that the employees get the proper
knowledge relating to their jobs and the proper skills to perform their tasks efficiently. Training and
development refers to educational activities within a company created to enhance the knowledge and
skills of employees while providing information and instruction on how to better perform specific tasks.

External influences of training and Development

● Orientation
the action of orienting someone or something relative to the points of a compass or other specified
positions.
● Employee training
Training is a program that helps employees learn specific knowledge or skills to improve performance in
their current roles.
● Employee development
Employee development is defined as a process where the employee with the support of his/her employer
undergoes various training programs to enhance his/her skills and acquire new knowledge and skills.
Price
The value that buyers exchange for a product in the marketing transaction. Price is the amount of money
that has to be paid to acquire a given product. Insofar as the amount people are prepared to pay for a
product represents its value, price is also a measure of value. Prices provide an economic mechanism by
which goods and services are distributed among the large number of people desiring them. They also act
as indicators of the strength of demand for different products and enable producers to respond
accordingly.
Pricing objectives

Before establishing prices, marketing managers must decide their pricing objectives. Survival is the most
fundamental one; firms will tolerate financial losses and other difficulties if needed for survival, besides
survival, firms use price to increase sales and market share, boost profits, achieve a return on their
investment, and maintain their present position in the industry. A pricing objective underpins the pricing
process for a product and it should reflect your company's marketing, financial, strategic and product
goals, as well as consumer price expectations and the levels of your available stock and production
resources. Some examples of pricing objectives include maximising profits, increasing sales volume,
matching competitors' prices, deterring competitors – or just pure survival

Market Share
A firm's market share is its percentage of the total industry sales in the geographical area where it sells its
products. Maintaining or increasing market share is a common pricing objective. Many firms use market
share figures to assess their performance. An increase in sales may help a company reduce production
costs and achieve higher profits since it is cheaper on a per unit basis to produce more goods or offer
services. Firms sometimes lower prices to try to capture a larger share of the market.

Profit
Of course the objective of many companies is to maximize profit. But in practice defining 'maximum
profit ' is difficult. No matter how profitable a firm becomes, it still may have reached a point of
maximum profit. Most firms express this pricing objective as a percentage increase over current profits. A
company's pricing objective may be to increase profit by 10 percent in one year.

Return On Investment
Return on investment (ROI) is the amount of profit earned, expressed as a percent of the total investment.
ROI is sometimes more desirable as a pricing objective than is profit maximum, because it is a better
measure of a firm's operating performance. For instance, the typical ROI in the automobile industry is 20
percent per year.

Status Quo
Firms wishing to maintain their present situation in the industry may establish status quo pricing
objectives A company that wants to meet (but not beat) competitors prices, develop a favourable public
image or maintain its market share would favour status quo pricing objectives. By maintaining price
stability, a firm reduces the risk it could face in a climate of price competition.

Factors In Pricing Decisions

A firm can not determine a product's price without considering several factors that affect price. Managers
might take into account the use of price and non price competition, supply and demand, and consumer
perceptions of price.

Price and Nonprice Competition

The pricing decision is influenced by the extent to which firms decide to use price as a competitive tool.
Some rely heavily on price competition while others compete on aspects other than price. Firms
competing based on price competition generally set prices equal to or lower than competitor's prices.
A firm competing based on price must be prepared to change princes quickly and frequently in response
to competitors' price changes. One drawback to this competition is that competitors can easily reduce their
prices to counter it. Price competition is practiced by firms in many different industries, such as hotel,
electronics component manufacturers and automakers.
Nonprice competition involves competing based on factors other than price. Such as quality or service.
This strategy is useful in building brand loyalty. Customers who prefer a brand for reasons other than
price are likely to switch to a brand that costs less.

Supply and Demand

The price of a product is also influenced by the economic forces of supply and demand. The penny you
pull out of your pocket is worth just that -- a penny. But a coin collector may pay a great deal for a rare
penny. That's the principle of supply and demand at work. Supply refers to the quantity that producers
will sell at various princes: the demand for a product is the quantity that consumers will purchase at
different prices. For most products, the quantity demanded goes up and price goes down, demand goes
down as the price goes up.

Consumer perceptions of price

Perceived value is one of the strongest and fundamental marketing approaches for any product or service.
It is a matter of opinion and it is completely in the consumer's kingdom. It is defined as the consumer's
overall assessment of the utility of a product based upon the perceptions of “what is received and what is
given” this definition shows a clear relation of price and quality wherein perceived quality involves
consumer judgement about the extent of superiority of the product and used as a measure of excellence or
a state of being free from defects, deficiencies and significant variations and perceived price is the
consideration given in exchange for the transfer of ownership.

Marketing
Marketing is one of the primary components of business management and commerce. It is a social and
managerial process by which individuals and groups obtain what they need and want through creating and
exchanging products and value with others.
 In short sense, marketing is the satisfaction of customer needs and demands. Generally marketing is
about designing a product or offering service which can meet customers satisfaction and at the same time
earns reasonable profit for the organization.
Expl. STARSHIP JUICE
ABUL KHAIR GROUP

Market Segments

Market segments are distinct groups of customers within a market that can be differentiated from each
other on the basis of their distinct attributes and specific demands.

Segmentation base
● Geographic segmentation
○ Region, city size, density of area, climate.
● Demographic segmentation
○ Age, gender, marital status, income, education, occupation.
● Psychological segmentation
○ needs- motivation , personality, perception, learning -involvement, attitudes.
● Psychographic segmentation
○ (lifestyle) segmentation (economy minded, status seekers)
● Socio-cultural segmentation
○ cultures, religion, subcultures, social class, family life cycle.
● Hybrid segmentation
○ demographic psychographic