Business mean those human activities which envolve production or purchase of goods with the object of selling them at a profit.
Conditions –Regular dealing, sale/transfer, profit, risk.
Old concept –Profit maximisation
Modern Concept- human welfare & public good.
P.F.Ducker- to create a customer, 2 stages
1) Profit cum service-earn profit through best services
2) Profit through service-social responsibility gained importance.
Objective of business-Economic- profit, growth, innovation. Social –service to society, employee satisfaction & development, quality product & services, fair return to investors, good corporate citizens
Meaning of Business Environment-B.E. may be defined as the set of external factorssuch as economic, socio cultural, Govt. & legal, demographic, which are uncontrollable in nature & affect the business decisions of a firm or company.
1) Micro Environment 2) Macro Environment
Micro Environment-
1) Supplier
2) Customers-industrial, retailers, wholesellers, Govt., foreigners
3) Market intermediates- middlemen, physical distribution firms, marketting service agencies, and financial intermediaries
4) Competitors-
I. Desire competitions – limited disposable income many unsatisfied desires T.V./washing machine/ investment
II. Generic competition-among alternatives which satisfya particular category of desire- Investmentin U.T.I./P.O./Bank/Any other.
III. Product form competition- Washing machine, semi/ automative
IV. Brand competition- videocon/godrej
5) Public –
I. media publices
II. citizen action publices
III. local publices
Macro Environment-uncontrollable
1) Economic Environment
I. Eco. Conditions- business cycle, growt of economy, size of domestic Market & its dynamic effect
II. Eco. Policies- budgets, industrial regulations, eco planning, import & export regulations, business laws, , industrial policy, control on price & wages, trade & transport policy, size of national income, demand & supply of various goods...