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Business Environment 
group no-1 
Introduction to Business and its Environment
Introducti 
on
Introduction to Business and its Environment
Explanation 
In simple terms business is 
organised activity which supplies 
goods and services to the society 
for a profit.
Need of Business 
1) Regular supply of goods and services 
2) Optimum and meaningful use of resources 
3) Generating employment opportunities 
4) Revenue to the government 
5) Social welfare 
6) Facilitates economic growth and helps in creation of 
rich and developed countries 
7) Capital formation
Introduction to Business and its Environment
Introduction to Business and its Environment
Scope of Business 
Industr 
y 
Commerc 
e
Industr 
y 
1) Primary 
2) Extractive 
3) Genetic 
4) Manufacturing 
(a) Basic 
(b) Intermediate goods 
(c) Consumer goods 
(i) Consumer durables 
(ii) Consumer non-durables 
5) Construction 
6) Service 
7) IT
Commerc 
e 
Tra 
de 
Aids 
to 
Trad 
e 
Inter 
nal 
Extern 
al 
1) Retail 
2) Wholesale 
1) Import 
2) Export 
3) Entreport 
1) Transport 
2) Warehousing 
3) Advertising and 
Salesmanship 
4) Insurance 
5) Mercantile Agents and 
traders 
6) Banking and Finance
Role of Business 
To Business 
firms 
To 
Consumers 
To 
Society
To Business 
firms 
1)Achievement of 
Objectives 
2)Increasing knowledge 
and skills 
3)Product development 
4)Development of good 
relations 
5)Good Corporate 
Image 
6)Optimum utilisation 
of resources
To 
Consumers 
1) Provides quality goods 
and services 
2) Provides goods at good 
price 
3) Higher standard of living 
4) Customer satisfaction 
5) Better facilities and 
services 
To 
Society 
1) Economic Growth 
2)Regional 
development 
3)Social welfare 
4)Employment 
opportunities 
5)Revenue to the 
government
Definition 
According to Dalton 
E. Mcfarland 
“Objectives are the 
goals, aims or 
purposes that 
organisations wish 
to achieve over 
varying period of 
time”.
Classification of Business Objectives 
Organic Objectives 
Economic Objectives 
Social 
Objectives 
Human Objectives 
National 
Objectives
Organic Objectives 
(a) Survival 
(b)Growth 
(c) Recognition and Prestige
Economic Objectives 
(a) Profit 
(b)Creation of customers 
(c) Creation of wealth 
(d)Innovation 
(e) Optimum utilisation of resources 
(f) Increase in market share 
(g)Expansion of markets 
(h)Product introduction
Social Objectives 
(a) Towards employees 
(b)Customers 
(c) Towards dealers 
(d)Shareholders 
(e) Government 
(f) Suppliers 
(g)Media 
(h)Competitors
Human Objectives 
(a) Fair wages 
(b)Better working conditions 
(c) Job satisfaction 
(d)HRD 
(e)Welfare facilities
National Objectives 
(a) Social Justice 
(b)Regional Development 
(c) Development of small scale industry 
(d)Self Sufficiency 
(e) Social Welfare 
(f) Creation of Employment
Role of profit in business 
Profit is very important for survival and 
growth of business 
Profit is the soul of the business 
Ro“Nleo: profit, no survival” 
1) Indicates Efficiency 
2) Reward for risks and uncertainties 
3) Industrial growth 
4) Return on Investment 
5) Means of control 
6) Helps in survival of business 
7) Helps in providing facilities to the employees
Definition 
According to k. Aswathappa 
“Environment refers to all those 
external forces which have a bearing 
on the functioning of business”. 
Features of Business Environment 
1) Environment is the surrounding 
situation of Business 
2)Environment is dynamic 
3)Business to a greater extent cannot 
control the environment 
4)Environment controls the scope (limit) 
of the business
6) Environmental is inseparable part of 
business 
7) Business environment is complex 
8) Environment is multi-faceted 
9) Environment, Planning and Business 
Management are related 
10) Environment creates opportunities 
and threats 
11) Business Environment is a challenge 
12) Environment requires adaptability 
13) Environment needs minute study by 
businessmen
Thank 
you

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Introduction to Business and its Environment

  • 1. Business Environment group no-1 Introduction to Business and its Environment
  • 4. Explanation In simple terms business is organised activity which supplies goods and services to the society for a profit.
  • 5. Need of Business 1) Regular supply of goods and services 2) Optimum and meaningful use of resources 3) Generating employment opportunities 4) Revenue to the government 5) Social welfare 6) Facilitates economic growth and helps in creation of rich and developed countries 7) Capital formation
  • 8. Scope of Business Industr y Commerc e
  • 9. Industr y 1) Primary 2) Extractive 3) Genetic 4) Manufacturing (a) Basic (b) Intermediate goods (c) Consumer goods (i) Consumer durables (ii) Consumer non-durables 5) Construction 6) Service 7) IT
  • 10. Commerc e Tra de Aids to Trad e Inter nal Extern al 1) Retail 2) Wholesale 1) Import 2) Export 3) Entreport 1) Transport 2) Warehousing 3) Advertising and Salesmanship 4) Insurance 5) Mercantile Agents and traders 6) Banking and Finance
  • 11. Role of Business To Business firms To Consumers To Society
  • 12. To Business firms 1)Achievement of Objectives 2)Increasing knowledge and skills 3)Product development 4)Development of good relations 5)Good Corporate Image 6)Optimum utilisation of resources
  • 13. To Consumers 1) Provides quality goods and services 2) Provides goods at good price 3) Higher standard of living 4) Customer satisfaction 5) Better facilities and services To Society 1) Economic Growth 2)Regional development 3)Social welfare 4)Employment opportunities 5)Revenue to the government
  • 14. Definition According to Dalton E. Mcfarland “Objectives are the goals, aims or purposes that organisations wish to achieve over varying period of time”.
  • 15. Classification of Business Objectives Organic Objectives Economic Objectives Social Objectives Human Objectives National Objectives
  • 16. Organic Objectives (a) Survival (b)Growth (c) Recognition and Prestige
  • 17. Economic Objectives (a) Profit (b)Creation of customers (c) Creation of wealth (d)Innovation (e) Optimum utilisation of resources (f) Increase in market share (g)Expansion of markets (h)Product introduction
  • 18. Social Objectives (a) Towards employees (b)Customers (c) Towards dealers (d)Shareholders (e) Government (f) Suppliers (g)Media (h)Competitors
  • 19. Human Objectives (a) Fair wages (b)Better working conditions (c) Job satisfaction (d)HRD (e)Welfare facilities
  • 20. National Objectives (a) Social Justice (b)Regional Development (c) Development of small scale industry (d)Self Sufficiency (e) Social Welfare (f) Creation of Employment
  • 21. Role of profit in business Profit is very important for survival and growth of business Profit is the soul of the business Ro“Nleo: profit, no survival” 1) Indicates Efficiency 2) Reward for risks and uncertainties 3) Industrial growth 4) Return on Investment 5) Means of control 6) Helps in survival of business 7) Helps in providing facilities to the employees
  • 22. Definition According to k. Aswathappa “Environment refers to all those external forces which have a bearing on the functioning of business”. Features of Business Environment 1) Environment is the surrounding situation of Business 2)Environment is dynamic 3)Business to a greater extent cannot control the environment 4)Environment controls the scope (limit) of the business
  • 23. 6) Environmental is inseparable part of business 7) Business environment is complex 8) Environment is multi-faceted 9) Environment, Planning and Business Management are related 10) Environment creates opportunities and threats 11) Business Environment is a challenge 12) Environment requires adaptability 13) Environment needs minute study by businessmen