WEALTH

CREATION
MODULE ONE
PRESENTED BY
Dr. Urvashi Anand Ohri
 ACTIVITY

ECONOMIC NON-ECONOMIC
ACTIVITY ACTIVITY
TYPES OF ECONOMIC ACTIVITY

PROFESSION EMPLOYMENT BUSINESS

[EMPLOYER-EMPLOYEE
RELATIONSHIP]
(WAGES OR SALARIES)
(WORK FOR (PROFITS)
REMUNERATION)

3
BUSINESS
KEY TAKEAWAYS:

• A business is defined as an economic

activity that involves sale, trade,
production and exchange of goods
and services with the objective of
earning profits.

• Apple and Walmart are two examples

of well-known, successful businesses.

4
 PROCESS IN BUSINESS
CADBURY’S DAIRY MILK
CHOCOLATE

PRODUCERS WHOLESALERS RETAILERS

(CP=4 AND SP =6, HENCE (CP=6 AND SP =8, (CP=8 AND SP =10, CUSTOMERS
PROFIT=2 INR) HENCE PROFIT=2 HENCE PROFIT=2 (MRP=10 INR)
INR) INR)

5
 Payments
Factors of Production
to factors
of Production

Land Labor Capital Enterprise

Rent Wages Interest Profit

INCOME
 DIFFERENT
DEPARTMENTS
WHERE
MANAGEMENT IS
REQUIRED

MARKETING FINANCE HUMAN RESOURCE OPERATIONS

DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

8
Government’s Role in different
Economic System

 Socialist/Planned Economy
 Capitalist Economy
 Mixed Economy
GOVERNMENT: POLITICAL ENVIRONMENT

Political environment affects different business units significantly. A stable and dynamic political environment is
essential for business growth. Whenever there is a change in the Government in a democratic country, it is a sign
of change in economic policies. The Political environment of business depends on:

1.Ideology of the Government

2.Political Establishment
3.Political Stability in the country
4.Relations with other countries
5.Defence and Military Policy
6.Centre State Relationship
7.Approach of Opposition parties towards business
Society
Society, in its broadest sense, refers to human beings and to the social
structures they collectively create. In a more specific sense, the term is
used to refer to segments of humankind, such as members of a particular
community, nation, or interest group. As a set of organizations created by
humans, business is clearly a part of society.
Interaction of Business, Government
and the Society

Government-Business relationship -
• Government influences business through regulation,
taxation, and more.
• Business influences government by lobbying, and more

Public-Government relationship -
• Public influences government through voting and forming
special interest groups.
• Government influences the public with politicking, public
policy formation, and other political influences.

12
Interaction of Business, Government
and the Society

Business-Society relationship -
• Business influences the public through advertising, public
relations, and other forms of communication
• The public influences business through the marketplace,
or by forming special interest groups.

13
Interaction Among Business, Government,
and the Society
Lobbying

Regulations and Other

Forms of Persuasion
Business Government

• Political Process
• Interest • Advertising • Voting Political
groups • Public Relations • influence
• Not buying
Interest Groups
products
• Contributions
• Protests

Society

14