Overvie

Chapter 2
w of
Business
 Index
• Definition of Business
• Types of Business
• Industrial Sector
• Globalization
• Intellectual Property Rights (IPR)
 Definition of Business
• “is legally recognized organization which provides
goods, and/or services to customer in exchange f
or money”.
• “ is commercial, industrial or professional activity
undertaken by an individual or group in an attemp
t to make profit”.

• Main objective of business is to generate financial return i

n exchange of expending time, effort & capital-Privately o
wned Business
• Main objective is to serve customer- Govt. Org.
Types of Business

Business

Manufacturin
Service Trade
g
 Service
• This business offers services and make profit by char
ging for labour and services provided to customers.

• This business produces intangible product.

• The output of service sector may be information, serv

ices, attention, advice, experiences, discussion and th
e like.

• E.g: News media, hospitality, consulting etc…

 Manufacturing
• This business make products, from raw material or co
mponent parts which they then sell at a profit.

• This business produces tangible product.

• The output of this sector must be any physical good

s.
 Trade
• It act as middle men in getting goods produced by ma
nufacturer to the consumer.

• Difference between Customer & Consumer?

• Traders make profit on the form of commission.

• E.g: Retailers, Distributor, Dealer, Mall etc….

 Industrial Sector
Engineering Process Textile Chemical
Industry Industry Industry Industry

Agro IT Banking, Retail

Industry Industry Insurance Industry

Health Care Hospitality Tourism

 Engineering Industry
• It deals with the design, manufacture and operation of
structures, machines or devices.
• It contains sector like
– Civil
– Electrical
– Electronics
– Mechanical
–
Company of
Computer
–
Each??????
Chemical
– Metalurgy
– Aeronautical
– Marine
 Process Industry
• It refers to manufacturing that is associated with form
ulas and manufacturing process.

• In process manufacturing once an output is produced

it can’t be rolled back to its basic components.

• E.g: food, beverages, pharmaceutical, paints & coating, w

ood and its product, paper & its product, plastic, rubber, pe
troleum and biotechnology industries.

• Company like Cadbury, Amul, Ranbaxy, Cipla, Asian Paint

s, Johnson Ceramics etc…..
 Textile Industry
• In this industry fibre is converted into yarn, then fabri
c, the textiles. These are then fabricated into clothes
and other products.
• It contains segments like:
– Cotton
– Silk
– Woolen
– Jute & Coir
– Hand Crafted
– Readymade
• Company like Century Textile, Bombay Dying, Arvind, Ray
monds, S Kumar etc…..
 Chemical Industry
• This industry produces industrial chemicals.

Specialty Consumer
Basic Chemical Life Sciences
Chemicals Products
• Polymers • Electronic • Pharmaceuticals • Soaps
• Plastics chemical • Animal health • Detergent
• Industrial gases products • Cosmetics
• Petrochemical
• Adhesive • Vitamins &
• Fertilizers
• Catalyst pesticides
• Industrial
• Cleaning • Diagnostics
chemical
chemical
• Coatings

• Company like Reliance, Pedilite, RCF, HUL (HLL),

Nirma, Colgate, P&G, Gellite India etc…
 Agro Industry
• This industry uses plant and animal products as their
raw material.
• It comprises processing & preserving of agriculture pr
oducts for consumption.
Village Industry Small Scale Industry Large Scale Industry

• Owned & run by rural • Having medium • Large investment and

households. investment & semi high level of automation.
• Very little capital automation
investment & high labour • E.g: Sugar, Cotton, jute
• Eg. Pickle, papad, basket • E.g: honey, jam, edible oil, etc…
etc rice mills etc…

• Company like ITC, HLL, Nestle, Gini Mills, Mapro

industries Lajjat Papad, Pravin Pickle etc…
 IT Industry
• IT is application of computers and telecommunication
equipment to store, retrieve, transmit & manipulate da
ta.

• Several industries are associated wit IT like Computer

H/w, S/w, internet, e-commerce & computer services.

• IT & ITeS become key forces fuelling India’s economi

c growth.
• Company like ?????
• Infosys, TCS, Wipro, L&T, Tech M, Mphasis, Oracle, Polaris, Mindtree
etc….
 Banking Industry
• Banking is acvtivity of accepting & safeguarding mon
ey owned by other individual and entities and then len
ding money in order to earn profit.
• Regulated by Central Bank called ??????

• Two types of Bank:

– Commercial Bank
– Investment Bank

• It offers different channel to access banking & its servi

ces
– ATM, Mobile Banking, Internet Banking & Retail Branch.
 Contd…
Nationalised / • BOM, BOI, BOB, Dena Bank, Andhra Bank
• SBI & its Associate, PNB, UBI,CBI
Public Bank
• AXIS Bank
Private Bank • HDFC Bank
• ICICI Bank

• Cosmos Bank
Co-operative • Saraswat Bank
Bank • All Co-operative Bank

• HSBC, Deutsche Bank, Bank of America

Foreign Bank • BNP Paribas, Citibank, DBS Bank, SWISS Bank
 Insurance Industry
• Insurance is a promise of compensation of specific po
tential future losses in exchange of periodic payment
(Premium).

• In exchange of premium, insurer agrees to pay the po

licy holder a sum of money upon the occurrence of a
specific event (death, accident, fire & like).

• Principle of insurance involves collecting funds from

many insured entities to pay for the losses that some
may incur.
 Contd…
• Types of Insurance

• Life Insurance
Life Insurance • Health Insurance

General • Vehicle, Home, Property

Insurance • Natural Calamity Insurance

• Company like LIC, SBI Life Insurance, Iffco Tokio,

Reliance etc…
 Retail Industry
• Retail is the sale of goods and services to the end-us
er.

• They purchase goods in large quantities directly from

manufacturer or through a wholesale and then sells s
maller quantities to the consumer.

• It can be either fixed location like stores or markets or

mall, door to door or by delivery.

• Top Indian retailers are Shoppers Stop, Reliance Mall, More, Prozone,
Central Mall, Next, D-mart, Big Bazar, Best Price etc….
 Hospitality Industry
• It is relationship between guest and the host, or the a
ct or practice of being hospitable includes reception, e
ntertainment.

• Follow principle of “Atithi Devo Bhava”.

• It includes lodging, event planning, theme park, trans

portation, cruise line….
 Health Care Industry
• It means maintaining & restoration of health by the tre
atment and prevention of disease by professional.

• It include following services like: hospital, medical & o

ther human activities (nurses, laboratories, patholog
y, residential health facility, Yoga, music therapy, acup
uncture, massage etc).

• Company like Ruby Hospital, Birla Hospital, JJ Hospit

al, KEM Hospital etc….
 Tourism Industry
• This industry provides facility of planning and managi
ng tour, making customize package for an individual,
group and a family.

• It includes transportation, hotel booking, cab facility,

& other services.

• Company like Kesari, Cox & King, Bharat Booking Ho

liday etc…
 Globalization
• “It is the process of transformation of regional pheno
menon into a global one”.
• “It is process of integrating national economies into int
ernational economies through trade, foreign investme
nt, migration and spread of technology”.

• Barriers to international trade have been lowered thro

ugh GATT & WTO.

• This term have been started, when LPG started in Ind

ia 1991.
 Advantage
• Huge amount of foreign investment.

• Increase Indian Economy

• Increase Employment

• Advanced Technology

• Better Quality Product

• Increase Foreign Currency

 Disadvantage
• Increase Competition to indian market and business.

• Consumer prefer to buy foreign product over indian produ

ct

• Due to advanced technology no. of labour required decrea

sed.

• Environmental Problem

• Imported culture may be danger to indian culture

 IPR
• Intellectual property refers to creations of the mind: in
ventions; literary and artistic works; and symbols, na
mes and images used in commerce.
• Intellectual property is divided into two categories:
– Industrial Property includes: patents for inventions,
trademarks, industrial designs and geographical indi
cations.
– Copyright covers literary: works (such as novel, poe
ms and plays), films, music, artistic works (e.g., dra
wings, paintings, photographs and sculptures) and a
rchitectural design.
 IPR
Intellectual Property (IP) is any creations of human mind.
Like tangible property, their creation has a value and, as with
all property, it needs to be protected.

Intellectual Property Rights (IPR) gives them this protection,

as well as helping them exploit and control their IP.
“The exclusive right granted by State, to prevent others from
using, manufacturing, distributing - inventions, processes,
applications, new and original designs, trademarks, new plant
varieties, data bases and artistic and literary works”. Such a
person is known as ‘rights owner’ or ‘rights holder’.
 IPR
• The importance of intellectual property was first recog
nized in the Paris Convention for the Protection of Ind
ustrial Property (1883) and the Berne convention for t
he Protection of Literary and Artistic Works (1886). Bo
th treaties are administered by the World Intellectual
Property Organization (WIPO).
 Intellectual Property

Industrial Property Copyrights and related rights

Industrial Patents Trademarks Trade Secrets Geographical Layout Designs of Plant varieties &
Designs Service marks Indications Semi Conductor ICs Farmer’s rights

® ©
 IPR
• Industrial Designs: Design deals with features, shapes, patterns, etc., applied to an article by an
industrial process, manual or mechanical. Eg., chair is a utility item. However, chair itself does not
qualify for IPR, but its special carvings, embossing etc., is done which increases the value of chair
though it’s utility remains same, it becomes eligible for IPR under Designs Act. Designs can be
registered based on its originality, henceforth they can use ® or registered, with registration
number.

• Patents: Is a monopoly right granted to a person, who invented a new product or process of
making an article, for 20years under the Indian Patens Act, 1970, and can be renewed after
expiration of period. The inventor has to file for patent first, and then make his/ her invention to
public. A patent has to be applied in each country by the inventor, to claim his rights in that
country. Eg: A group of scientists working on new drug development in Himalaya Drugs for some
salary. The patent of the drug developed is given to Himalaya Drugs, but not to the scientists. The
drug may have many patents like composition, process, and product etc.

• Trademarks: Trademark can be a word, name, brand, symbol, label etc., used by a company to
create a unique identity for their product. Trademark can be registered, and then use ™ ®. The
registration validity is for 7 years and renewable after expiry. In India, it is governed by the Trade
and Merchandise Marks Act, 1958, which came into force on 25th Nov., 1959.
 IPR
• Trade Secrets: Trade secret is any intellectual work or product used for a business
purpose that can be classified as belonging to that business provided it is not based on
information in public domain.
 
• Geographical Indication: This is an indication, that originates from a definite
geographical area, which is used to identify natural or manufactured product. For eg.,
Gadwal/ Pochampally Sarees, Nirmal paintings, Kolhapuri Chappals, Solapur Chaddar
etc., qualify for registration under this category. It is valid for 10 years. The application for
registration can be an association of persons, organization or by producers.
 
• Copyright: It is a negative right which prevents the appropriation of the fruits of man’s
work, labour or skill by another person. Copyright is an exclusive legal right to reproduce
an original work of authorship fixed in any tangible medium of expression, to prepare
derivative works based on original work, and to perform or display the work in the case of
dramatic, music, choreographic and sculptural works. Copyright prevents copying of only
the expression. Eg: Bhagwat Geeta, Pathanjali Yoga sutras, Narada Neeti, Vatsayana
Kamasutras etc.,
Thank You
 Thank You

Kingsoft Office
Make Presentation much more fun