Unit – 01 (Overview of Business)

LAKSHYA POLYTECHNIC
PLAN. EXECUTE. ACHIEVE
UNIT – 01
OVERVIEW OF BUSINESS

BUSINESS

A business may be defined an organization that uses economic resources or inputs to

provide goods(product) or services to customers in exchange for money.

There are three categories of business. They are

a) Service Business

• A service type of business provided intangible products (product that cannot be

physically stored).
• Service type firm offer professional, expertise, advice consultancy etc.
• The common examples of service type business are saloon, repair shop,
schools, banks, Law firms etc.

b) Trade or Merchandising Business.

• This type of business buys products at wholesale price and sells them at retail
price.
• They are also known as buy and sell business.
• In merchandising business, the product provides to the customer is not
manufactured by the merchandiser.
• Example of such business includes grocery stores, distributors, medicine
retailers etc.

c) Manufacturing business

• A manufacturing business purchases material and other resources and coverts

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them into new products for the customers.

 Unit – 01 (Overview of Business)

• A manufacturing business combine raw material labour, factory on cost, etc. to

produce a product.
• Any engineering industry like automobile industry steel industry, paper industry,
chemical industry etc. are example of manufacturing business.

INDUSTRIAL SECTORS

Any industry can be defined as a group of business activities that provide a particular
product or service.

The business activities can be grouped into different categories depending upon the
domain of work and activities.

Each such category is called as industrial sector. Some of the common industrial
sectors are as follows:

i) Engineering Industries

✓ An industry that focuses on production of goods and machines for industrial

sectors other than the engineering sector are called engineering industry.
✓ To promote engineering industries special economic zone is created by
government.
✓ Foreign investment also leads to promotion of engineering sector.

ii) Process Industries

✓ An industry i.e., involved in bulk processing of raw materials through a fixed

process is called process industry.
✓ The process industries are those industries where the production processes
are either continuous or in very large batches.
✓ Example of such industries include chemical industries, Petro chemical
industries, sugar plants, cement plants, paper and pulp industries.

iii) Textile Industries

✓ The industries which process fibre into yarn, yarn into grey fabric grey fabric
into finish fabric and then finished fabric to garments are called textile
industries.
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✓ It is basically a know – how based industry.

✓ Textile industry major contribution of pollution because of abundant use of
chemical and dyer.

iv). Chemical Industries

✓ Chemical industries are involved in manufacturing of different chemicals and

their derivatives through a complex process.
✓ The main source of raw materials for chemical industries are fossil fuels like
petroleum, coal, natural gas etc and minerals like line- stone, Gypsum etc.

v) Agro Industries.

✓ Agro industries are those industries which add value to agricultural product by
processing it, improving storage and providing link between farm and market.
✓ Agro based industries are very important for development of rural economy.
✓ It is the major source of employment in rural sectors.

INTELECTUAL PROPERTY RIGHTS (I.P.R)

I.P.R are the legal rights that protect the rights and advantages of the individuals who
are owner or inventors of a work and have created something using their known how
and creativity.

The creators or inventors get exclusive rights to use the work invented or created by
him.

It also protects the unauthorized use of the work created or invented by the inventor.

The following list of activates are covered by intellectual property right as decided by
world intellectual property right organization (WIPRO)

a) Industrial design.

b) Scientific design.

c) Literature and artistic works.

d) Performances of artist and broadcast.

e) Remarks, commercial names, and trade secrets.

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Advantage of I.P.R

➢ Provides exclusive rights to creators or inventor.

➢ Encourages a person to share the information instead of keeping in confidential.
➢ Provides legal defence to the creator and allow them to take full advantage of
their creation.
➢ It helps I social and financial development.

GLOBALIZATION

Globalization is the process of world-wide integration of economic cultural financial,

manufacturing and marketing system.

Globalization refers to a condition where all the countries in the world become
interconnected and interdependent to full fill their needs.

Advantage of Globalization

1. Due to globalization the gross domestic product (GDP) of India has improved.
2. The direction of growth of the Indian economy has shifted from manufacturing
to service sector.
3. The overall growth of Indian economy has resulted in improved status of the
country in the world.
4. Foreign direct investment has increased due to globalization.
5. Globalization has improved the life style and living standard of the society due
to increased income.
6. Globalization has made the latest technologies available to the Indians.

Disadvantage of Globalization

1. The globalization has increased the gap between the poor and the rich in the
Indian society.
2. Globalization has led to over use of human resource leading to poor social life.
3. The safety issues and the health hazard has increased due to globalization.
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4. The local industries which were not able to compete on world level were shut
down.
5. Increased industrialization has led to environmental problems like air pollution
water pollution, sound pollution etc.