Unit:III

Business Services

1.Business Services வணிக சேவைகள்,

2.Goods and Services Distinguished

3. Banking( வங்கியியல)

4.Insurance ( காப்பீடு)

5.Warehousing( கிடங்கு)
6. Traditional Business to Newer
7.Benefits of Switching over to Electronic Mode(E-Business)
8.Cautions to be Taken (While Switching from Traditional Business to Electronic Mode)
[மின் வர்த்தக வணிகம் (மின் வணிகம்)]
1.Business Services: வணிக சேவைகள்,
 Business services is a general term that describes work that supports a business but does
not produce a tangible commodity. Information technology (IT) is an important business
service that supports many other business services such as procurement, shipping and
finance.
 A service business is a company that performs tasks for the benefit of their customers.
These tasks can include transportation, cleaning, traveling, hospitality, maintenance or
consulting.

2.Goods and Services Distinguished:

Goods: (சரக்கு)

Goods are physical, produced objects for which a demand exists, over which ownership rights
can be established and whose ownership can be transferred from one institutional unit to another
by engaging in transactions on markets.

Examples:
 Computers
 Books
 Notepads
 Laptop bags
  Water bottles
 Cars
 Jackets
 Cell phones

Services(சேவை)

Services are intangible, value-added activities that a company provides to its customers. They
are the core of what a company does to create value for its customers and generate revenue.
Services can be physical or digital. Physical services are those that you can touch, feel, or see,
such as a haircut or a massage.
Examples:
 Banking
 Insurance
 Property letting
 Teaching and education
 Childcare
 Personal training
 Architecture
 Legal services
2.Goods and Services Distinguished(Any Five Points)
Basis Goods
Goods are tangible items that
Meaning
can be felt, touched or seen.
Nature Goods are tangible in nature.
Goods are homogeneous and
Type can be produced exactly the
same.
The ownership of goods can be
Transfer of transferred from one
Ownership person(seller) to
another(buyer).
There is consistency in case of
goods, as different customers
Inconsistency
get standardised demand
fulfilled. For example, laptops.
Inseparability The production and
consumption of goods can be
separated. For example, chairs
Services
Services are intangible that cannot
be seen, felt, touched or seen; but are
experienced by the consumer.
Services are intangible in nature.
Services are heterogeneous and
depend upon the person providing
the service and the customer’s
preferences.
The ownership of services cannot be
transferred from one person to
another.
There is inconsistency in services, as
different customers have different
demands and get their demands
fulfilled accordingly. For example,
different people need different
services in salons.
The production and consumption of
services happen simultaneously. For
example, eating food at a restaurant.
 Basis Goods Services

are manufactured first and are

used by consumers later after a
while.

One can keep goods in stock as One cannot keep services in stock as
Inventory inventory. For example, a inventory. For example, getting a
warehouse full of watches. haircut at a salon.

Involvement of customers at the There is involvement or participation

Involvement time of delivery of goods is not of customers at the time of delivery
possible. of services.

Once purchased, goods can be Once provided, services cannot be

Return
returned to the seller. returned to the service provider.

Goods can and cannot be

Perishability Services are perishable.
perishable.

3. Banking (வங்கியியல):

Banking is the business of protecting money for others. Banks lend this money, generating
interest that creates profits for the bank and its customers. A bank is a financial institution
licensed to accept deposits and make loans. But they may also perform other financial services.
Importance of Banking:
Bank financing is a primary source of capital for business expansion, acquisitions, and
equipment purchases, or simply to meet growing operating expenses. Depending on a company's
needs, business banks can offer fixed-term loans, short- and long-term loans, lines of credit, and
asset-based loans.
Examples:
 State Bank of India
 United Bank of India
 ICICI Bank
 HDFC Bank

Insurance(காப்பீடு):
Insurance is a contract, represented by a policy, in which a policyholder receives financial
protection or reimbursement against losses from an insurance company. The company pools
clients' risks to make payments more affordable for the insured.
Examples: Auto Insurance, Life Insurance And Home Owners Insurance.
Importance of Insurance:
Insurance plans are beneficial to anyone looking to protect their family, assets/property and
themselves from financial risk/losses: Insurance plans will help you pay for medical
emergencies, hospitalisation, contraction of any illnesses and treatment, and medical care
required in the future.
Examples:
 AEGON Life Insurance Company.
 Bharti AXA Life Insurance Company.
 Bajaj Allianz Life Insurance Company.
 HDFC Life Insurance Company.
 Life Insurance Company (LIC)

5.Warehousing (கிடங்கு):
Warehousing is the process of storing physical inventory for sale or distribution. Warehouses are
used by all different types of businesses that need to temporarily store products in bulk before
either shipping them to other locations or individually to end consumers.

Importance of Warehousing:
Warehousing helps companies satisfy the demands of their customers for fast and efficient order
fulfillment, which has become more aggressive in the digital era. It also ensures maximum
productivity and efficiency, reducing the risk of supply chain disruptions and inventory mishaps.

Basic Functions In A Warehouse

Regardless of the product, every warehouse moves things, stores them, keeps track of them, and
sends them out. Those four functions result in our four essential categories of equipment:
storage, material handling, packing and shipping, and barcode equipment.

6. Traditional Business to Newer:

A Traditional Business (ஒரு பாரம்பரிய வணிகம்):
A traditional business is a local store, shop, etc., which offers its services or products to its local
customers. It is a set-up where customers will have to visit the store physically to buy the
products or services. In traditional business, infrastructure is required, and staff is hired to carry
on the business.

Examples:
Stores, restaurants, services, agencies, grocery stores, clothing stores, and department stores.

New and Trending Business:

A new business is also one created by the establishment of a new facility and new permanent
full-time employment by an existing business firm in an enterprise zone and does not result in a
net loss of permanent full-time employment outside the zone.

Technologies in New Business (புதிய வணிகத்தில்

தொழில்நுட்பங்கள்):

Like AI and Machine Learning, Robotic Process Automation( RPA), is another technology
that is automating jobs. RPA is the use of software to automate business processes such as
interpreting applications, processing transactions, dealing with data, and even replying to emails.

6. Traditional Business to Newer:

The first step before getting into E-business(New Business) is, having a clear vision about the
entire process of your business in detail and archiving each activity within the organization. Base
your E-business procedure on your present strategies, and adapt the functions available within
the E-business model.
Online businesses imply lower administration costs includes costs of storage spaces: through
an online business one can simply arrange to have the products sent directly from the supplier to
the client. This will also allow for faster delivery and less paperwork for the online business
owner.

7.Benefits of Switching over to Electronic Mode of Business or E-

Business [மின் வர்த்தக வணிகம் (மின் வணிகம்)]:
It is easy to set up an electronic business. You can set up an online business even by sitting at
home if you have the required software, a device, and the internet. Cheaper than Traditional
Business: Electronic business is much cheaper than traditional business.

Advantages Of E-Commerce:
 Reduced overhead costs
 No need for a physical storefront
 Ability to reach a broader audience
 Scalability
 Track logistics
8.Cautions to be Taken (While Switching from Traditional Business to Electronic Mode)

Fraud can cause financial losses, damage your reputation, and erode your customer trust. To
reduce and manage fraud risks, you need to use secure payment methods, verify your customers'
identity and address, monitor your transactions and inventory, and enforce clear policies and
terms of service.

How to Start An Online Business:

1. Set up an online platform

2. Determine which products you’ll sell online
3. Diversify your payment methods
4. Set up your shipping and returns functions
5. Consider how you’ll manage sales tax compliance
 6. Plan your online marketing strategy with social media
7. Preview, test, and publish your store
1. Set Up An Online Platform
The first step for any business owner considering ecommerce is to research the platforms
available to determine which best fits the needs of your business and your budget.
2. Determine Which Products You’ll Sell Online
To maximize your efforts as you transition to ecommerce, it’s important to prioritize which
products you’ll sell online, so your most profitable and in-demand products are available when
you launch your website.
3. Diversify Your Payment Methods:
Setting up your accepted payment methods is a crucial part of converting browsers into buyers.
Consider which payment methods are most commonly used and which accommodate the largest
number of your target customers.
4. Set Up Your Shipping And Returns Functions:
Once you’ve outlined your products and set up payment methods, the next step is to ensure you
can get products to customers. Shipping, fulfillment, and returns can be a major roadblock for
many small businesses and should be a key consideration when comparing ecommerce platform
capabilities.
5. Consider How You’ll Manage Sales Tax Compliance:
Most states have economic nexus laws in place, which means online sellers are required to
register to collect and remit sales tax once their sales surpass a certain threshold (e.g., $100,000
in sales or 200 transactions in a given state annually). Therefore, online sellers need an
ecommerce platform that applies the correct sales tax rate to every transaction and supports
timely filing and remittance.
Unit:IV
Business Environment (வணிக சூழல்)
1.Business Environment
2. Business Environment Concept
3.Characteristics of Business Environment
4.Environmental Analysis( சுற்றுச்சூழல் பகுப்பாய்வு)
5.Need and Diagnosis of Environmental Analysis
6.Business Environment
7.Potential Competitors(சாத்தியமான போட்டியாளர்கள்)
8.Rivalry(போட்டி)
9.External Environment (வெளிப்புற சுற்றுசூழல்)
10.Economic Environment(பொருளாதார சூழல்)
11.Political Environment (அரசியல் சூழல்)
12.Legal Environment(சட்ட சூழல்)
13.Technological Environment(தொழில்நுட்ப சூழல்)
14.Socio Cultural Environment(சமூக கலாச்சார சூழல்)
15.International Environment (சர்வதேச சூழல்)

1.Business Environment: (வணிக சூழல்)

A business environment is a set of factors, such as technologies and financial resources, that have
a direct effect on a company's operations. Business managers and analysts often study this
environment to determine potential changes and develop strategies to leverage those
developments to improve operations.
2. Business Environment Concept:

Business Environment is sum or collection of all internal and external factors such as employees,
customers needs and expectations, supply and demand, management, clients, suppliers, owners,
activities by government, innovation in technology, social trends, market trends, economic
changes, etc.

3.Characteristics of Business Environment:

1.Complex
The business environment is a complex system of many elements that interact to shape the
conditions in which businesses operate. This complexity is further complicated because each
environment element interacts with the other, creating a web of interconnected components.
2.Dynamic
The business environment is constantly changing and can be affected by internal and external
factors. Businesses must be able to adapt to these changes to survive and thrive. Dynamic is a
key characteristic of the business environment. It is defined as constantly changing, seen in many
aspects of the business world. This includes changes in technology, customer demands,
competition levels, government regulations and economic conditions.
3.Relativity
Relativity is an essential characteristic of the business environment, as it allows businesses to
adapt and respond quickly to changing circumstances. Companies must be constantly vigilant
and aware of changes in their industry, markets, customers, suppliers and partners.
4.Uncertainty
Uncertainty is an inherent characteristic of the business environment. It can take many forms,
such as changes in consumer demand, technological advancements, geopolitical shifts, etc.
Uncertainty can be seen in all aspects of a company’s operations, from production to marketing
to finance.
5.Multi-Faceted
The business environment is a multi-faceted and complex system. It consists of economic,
political, social, technological and environmental factors that influence the success of businesses
on both local and global scales.

6.Far-Reaching Impact
The business environment is constantly changing and evolving, making it ideal for businesses to
keep up with the times. One of the essential characteristics of a thriving business environment is
its far-reaching impact. This means that businesses must think beyond their immediate
circumstances and consider how their decisions will affect all stakeholders involved in the
company’s operations, from customers and suppliers to employees and shareholders.

4.Environmental Analysis (சுற்றுச்சூழல் பகுப்பாய்வு)

An environmental analysis is a strategic technique used to identify all internal and external
factors that could affect a company's success. Internal components reveal the strengths and
shortcomings of a company, while external components represent the opportunities and risks.
This exists outside of the company.
Environmental analysis is a dynamic process that uses a 360-degree holistic approach to
analyze the variables that affect the company environment rather than sticking to just one
section. With a study on business environmental analysis, organizations can uncover internal and
external factors that may negatively or positively affect their company.

Process of Conducting Environmental Analysis in Business

1.List The Factors
2.Analyze The Elements Critically
3. Examine Rivals
4. Consider Organizational Implications
5. Create A Plan
6.Put The Plan Into Practice
1.List The Factors: Selecting the criteria requires careful evaluation, which is the first stage in
conducting an effective business environment study. Constitutional, ethical, technological,
financial, and other variables may also be involved.
2.Analyze The Elements Critically: Analysts look at them while selecting the best ones for
their business. Feedback on each of these criteria is gathered. They even conduct research and
track the parameters.
3. Examine Rivals: The next step is for businesses to examine the rivals and assess where they
stand in the market. This aids them in identifying risks and investment opportunities. Companies
use conventional or unconventional methods to gather data on rivals.
4. Consider Organizational Implications: After businesses have done their due diligence on
their competitors’ actions, evaluating the implications of this information on their daily activities
is necessary.
5. Create A Plan: Now that basic research is done, analysts at every organization develop a
strategy after inspecting all external factors and assessing organizational impacts. They issue
statements and remedies on enhancing efficiency as well as company operations. This strategy
can help firms accomplish their main goals.
6.Put The Plan Into Practice: Finally, it’s time for the company to implement the strategy in its
daily activities once the analysts create the plan. The strategy consists of tactics that the company
must adopt to boost productivity.

3.Characteristics of Business Environment

(1) Totality of External Forces
(2) Specific and General Forces
(3) Interrelatedness
(4) Dynamic Nature
(5) Uncertainty
(6) Complexity
(7) Relativity
(1) Totality of External Forces:
Business environment is the sum totals of all those factors/forces which are available outside the
business and over which the business has no control. It is the group of many such forces that is
why, its nature is of totality.
(2) Specific and General Forces:
The forces present outside the business can be divided into two parts – specific and general.
(i) Specific:
These forces affect the firms of an industry separately, e.g., customers, suppliers, competitive
firms, investors, etc.
(ii) General:
These forces affect all the firms of an industry equally, e.g., social, political, legal and technical
situations.
(3) Interrelatedness:
The different factors of business environment are co-related. For example, let us suppose that
there is a change in the import-export policy with the coming of a new government.
In this case, the coming of new government to power and change in the import-export policy are
political and economic changes respectively. Thus, a change in one factor affects the other factor.
(4) Dynamic Nature:
As is clear that environment is a mixture of many factors and changes in some or the other
factors continue to take place. Therefore, it is said that business environment is dynamic.
(5) Uncertainty:
Nothing can be said with any amount of certainty about the factors of the business environment
because they continue to change quickly. The professional people who determine the business
strategy take into consideration the likely changes beforehand.
(6) Complexity:
Environment comprises of many factors. All these factors are related to each other. Therefore,
their individual effect on the business cannot be recognised. This is perhaps the reason which
makes it difficult for the business to face them.
(7) Relativity:
Business environment is related to the local conditions and this is the reason as to why the
business environment happens to be different in different countries and different even in the
same country at different places.

5.Need and Diagnosis of Environmental Analysis:

Need for Environmental Analysis

Business environment analysis is important because it helps organizations better prepare for
changes in their environments. By monitoring environmental factors, managers can anticipate
threats and opportunities. Business environment analysis also empowers managers to capitalize
on strengths and address weaknesses.

Diagnosis of Environmental Analysis:

An Environmental Diagnosis consists in a systematic identification of all environmental factors
related with the activities of a given organization. The main goal is to verify the environmental
performance of the organization.
7.Potential Competitors (சாத்தியமான போட்டியாளர்கள்)

Potential competitors are those competitors who do the same thing that you and target the same
kinds of customers but aren't selling in your market area and aren't likely to do so. They could be
your competition if they decided to enter, but either don't have the infrastructure or have chosen
to ignore your area.

8.Rivalry (போட்டி):

Rivalry is the act of competing for the same thing against another person. Competitive rivalry is
a measure of the extent of competition among existing firms. Intense rivalry can limit profits and
lead to competitive moves, including price cutting, increased advertising expenditures, or
spending on service/product improvements and innovation.

9.External Environment (வெளிப்புற சுற்றுசூழல்):

  The external environment is the factors outside a business that can affect its operation
by influencing its activities and choices and determine its opportunities and risks.
 The external environment of a business, includes all factors outside the reach of the
business, that can impact the operations of the business. External factors influence the
choices a business makes, as they determine opportunities and risks.

Examples of External Environment:

Technological Factors
Economic Factors
Political And Legal Factors
Demographic Factors
Social Factors
Competitive Factors
Global Factors
Ethical Factors

10.Economic Environment(பொருளாதார சூழல்):

The term economic environment refers to all the external economic factors that influence buying
habits of consumers and businesses and therefore affect the performance of a company. These
factors are often beyond a company's control, and may be either large-scale (macro) or small-
scale (micro).

11.Political Environment(அரசியல் சூழல்):

The political environment is related to the business environment including all the rules and
regulations, laws and the role of government in the day-to-day operations of organizations. The
business political environment refers to the political or governmental actions that affect business
operations.
12.Legal Environment(சட்ட சூழல்):

The term 'legal environment' of a business refers to the strategies adopted by any
government to help, manage or constrain the business ecosystem of the country.
It constitutes the laws and legislations passed by the Government, administrative orders,
court judgements, decisions of various commissions and agencies. Businessmen have to
act according to various legislations and their knowledge is very necessary.

13.Technological Environment(தொழில்நுட்ப சூழல்)

The technological environment refers to external factors in technology that impact

business operations. Changes in technology affect how a company will do business. A
business may have to dramatically change their operating strategy as a result of changes
in the technological environment.

14.Socio Cultural Environment(சமூக கலாச்சார சூழல்):

The socio-cultural environment includes social customs, values, codes of conduct, beliefs,
traditions and more. All businesses are affected by the socio-cultural environment. Therefore, it
is imperative to investigate the environment and develop strategies accordingly.

15.International Environment(சர்வதேச சூழல்):

The international business environment refers to a kind of ecosystem where a business
trades goods/services in a global market. It plays a critical role in shaping the country's
economy and includes various aspects such as cultural differences, political affairs,
taxation, and legal issues.
The international economic environment can be described as the global factors that are
outside of the control of individual organizations but that can affect the way that
businesses operate. These factors include unemployment rates, inflation rates, and labor
costs.