IOM (6S305) Presented By

Suraj Shankar Wakhure

 UNIT – 1 Let’s explore it in brief

BUSINESS OVERVIEW ………

 WHAT IS INDUSTRIAL ORGANIZATION ?

 Industrial Organization (IO) is the field of economics that ultimately study’s the
behaviour of firms, the structure of markets and interaction between them. It
focuses on how firms are operate compete and interact within an industry. This
study also includes the affect of market outcomes such as price, production and
customer welfare

 Organization of an industry is a challenging task for technical people.

 The main objective of technical education is to set country’s economic development

and to make it worthy of competition in world’s market

 Technicians, Engineers and Scientists play an important key role in the activities of the
economic development.
 COURSE AND LEARNING OUTCOMES

 COURSE OUTCOME : -

CO1 : Identify the different sector and industry of given company name.

 MAJOR LEARNING OUTCOMES : -

1 a . Classify business.

1 b . Outline the impact of Globalization and IPR on business.

1 C . Identify the need of e-commerce.

 CONTENT

1. Type of Sectors, Service, Manufacturing, Trade

2. Globalization and IPR – Introduction, Advantage and Disadvantage

with respect to India.

3. E-Commerce – Merits and Demerits.

 WHAT IS BUSINESS
• Business is the fountainhead of modern life and is a major influence in our
everyday life. So it is necessary for all of us to know about the businesses.

• It affects all of us through the common axis of producers and consumers,

owners and users, and also employers

• Business firms produce and supply wide varieties of gods and services
required by the society.

• Business firms of India has created enormous employment opportunities for

the society.

• Business is an economic activity involving the regular production and distribution

of goods and services with the objective of earning profits through the
satisfaction of people.
 TYPES OF BUSINESS
There are different kinds of enterprises through which business activities takes place are divided into
three groups as follows :

TYPES OF Trade
Service
BUSINESS

Manufacturing
 SECTORS IN BUSINESS
• Sector is an area of economy in which businesses share the same or
related activity, product or service.

• Sectors represent a large grouping of companies with similar business

activities, such as the extraction of natural resources and agriculture

• There are following types of business sectors are there :

1. Primary Sector
2. Secondary Sector
3. Tertiary Sector
4. Quaternary Sector
5. Quinary Sector (Fifth level)
 TYPES OF SECTORS

• Primary Sector: This includes industries involved in the extraction and harvesting of natural resources. Examples
are agriculture, mining, forestry, and fishing.

• Secondary Sector: This sector involves the manufacturing and processing of raw materials into finished goods. It
includes industries such as manufacturing, construction, and utilities.

• Tertiary Sector: Also known as the service sector, it involves the provision of services rather than goods. This
includes retail, entertainment, financial services, healthcare, and education.

• Quaternary Sector: This sector focuses on knowledge-based activities and includes industries like information
technology, research and development, and consulting.

• Quinary Sector: This includes high-level decision-making and advanced services, typically involving top
executives or officials in government, universities, healthcare, culture, and media.
INDUSTRIAL SECTORS
1. Electronics 2. IT Industry 3. Automobile Industry

4. Handicrafts 5. Trade exhibition 6. Drugs and pharmaceuticals

 SERVICE SECTORS
• It is sector which constitutes a very different economic category and provides
services to peoples.

• Service sector is basically very different from manufacturing and trading of goods.

• Service sectors provides the services that are called as intangible goods.

• Service industry is the major type of businesses running in India. Some Companies provide
services after sell of their products to the customer.

• Services can be provided to the government or any other businesses.

• The best examples are entertainment, consultancy, telecommunication, banking, hospitality

services etc.
 MANUFACTURING SECTOR
• This is the sector which deals with manufacturing of any product
as per the requirements of the peoples

• Manufacturing is another type of business which is very

important as many other businesses are depends on it.

• In manufacturing, the items are produced using raw material wit the help of different engineering processes and
technologies.

• The products could be cellphones, computer, stationary, heavy machines required for industry, furniture, automobiles
etc.
 TRADE SECTORS

• Trade is the process which takes place between buyer and

seller. A producer might sell items or provide a service and
customer pays for it, this is called TRADE

• Trade is also called commerce. i.e. activity of buying and selling, import and export.

• These enterprises are concerned with the distribution of products i.e. exchange of goods to business houses as
well as final consumers.
Trade enterprises may be found operating in the form of :

a. Wholesale b. Retail establishment

c. Import and export houses d. Investment trusts etc.
 GLOBALIZATION AND IPR
• Globalization is the process which allows different countries
to do their businesses and provide services among them.

• Globalization has influenced India in a specific way. It has

allowed companies to increase their base of operations.

• Also it supported companies to expand their workforce with

relatively small investments, and provide novel services to a
wide range of consumers.
 GLOBALIZATION AND IPR

• IPR is nothing but Intellectual Property Rights are legal rights,

which result from intellectual activity in industrial, scientific, literary & artistic fields.

• These rights safeguard creators and other producers of intellectual goods & services by granting them certain
time-limited rights to control their use.

• The importance of intellectual property was first recognized in the Paris Convention for the Protection of Industrial
Property (1883) and the Berne Convention for the Protection of Literary and Artistic Works (1886).

• Both are administered by the World Intellectual Property Organization (WIPO).

ADVANTAGES OF GLOBALIZATION [Link]
1. Increased in free trade between nations across the world.

2. Customers have got importance because of availability of large array of products.

3. Information and money is flowing more rapidly.

4. Goods produced in one part of the world are increasingly available in its countrypart.

5. Frequent travelling to different countries has become easy.

6. The democratic thoughts have spreaded all over the world because of adoption of globalization.
DISADVANTAGES OF GLOBALIZATION [Link]
1. Increased in flow of skilled and non-skilled people from India to foreign countries.

2. It is difficult for domestic small businesses to compete with imported products.

3. Increase in communication and thus the dependence on communication media.

4. Over use and heavy dependence on communication media.

5. Globalization may cause the loss of culture because of cosmopolitan atmosphere.

6. It causes unemployment in one country because of stop of business which cannot compete

with international companies

 E-COMMERCE
• E – Commerce is the electronic buying and selling of goods and
services, usually via the internet. Businesses can build their own
ecommerce website, set up an ecommerce storefront on an
established selling site like Amazon, or do it all for a multi-channel
approach.

• These e-commerce goods transactions typically fall within four types :

[Link]-to-business (B2B)
[Link]-to-consumer (B2C)
[Link]-to-consumer
[Link]-to-business
 MERITS OF E-COMMERCE

1. Convenience : E-commerce allows customers to shope 24/7 from anywhere.

2. Wide Selection : Online stores often have a broader range of products compared to physical stores.
3. Cost Efficiency : Lower operational costs for businesses can translate to lower prices for consumers.
4. Personalization : Advanced algorithms can recommend products based on user behaviour/Preferences.
5. Global Reach : E-commerce enables businesses to reach customers worldwide without the need for a physical presence.
6. Customer Reviews : Customers can read reviews and rating before making a purchase.
7. Efficient Marketing : Targeted marketing campaigns can be more effective and less expensive online.
8. Faster Buying Process : Customers can quickly search for and purchase products without lengthy in-store visits.
DEMERITS OF E-COMMERCE
1. Lack of Physical Examination : Customers cannot physically inspect products before purchasing, which may
lead to dissatisfaction.
2. Security Concerns : Risks of data breaches and online fraud can deter customers from shopping online.
3. Delivery Issues : Shopping can be delayed or goods can be damaged during delivery.
4. Limited Customer Service : Immediate assistance may not be available, unlike in physical stores.
5. Returns and Refunds : The process for returns and refunds can be cumbersome and time-consuming.
6. Dependency on Technology : Technical issues like website downtime or payment gateway failures can affect
sales.