BUSINESSENVIRONMENT                              IISEMB.COM
                           BUSINESSENVIRONMENT
                                  NewCBCSsyllabus
                                          2019
              UNIT1:BUSINESSENVIRONMENT
              Meaningofbusiness,scopeandobjectivesBusiness,businessenvironment,
              MicroandMacroenvironmentofbusiness(social,cultural,economic,political,
              legaltechnologicalandnatural)Impactofthesefactorsondecisionmakingin
              organization.
              UNIT2:NATURALENVIRONMENT
              Meaning,componentofnaturalenvironment,impactofnaturalenvironmenton
              businessdecision.
              UNIT3:ECONOMICENVIRONMENT
              CharacteristicsofIndianeconomy,factorsaffectingeconomy,economic
              resources,impactofliberalization,privatizationandglobalizationonIndian
              business.
              UNIT4:LEGALENVIRONMENT
              Meaningimpactoffiscalmonetarypolicy,Eximpolicyandindustrialpolicyon
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           UCATUMKUR
           TUMKURUNIVERSITY
           BUSINESSENVIRONMENT                             IISEMB.COM
              business,industrialpolicyof1991.
              UNIT5:TECHNOLOGICALENVIRONMENT
              Meaning,features,impactoftechnology on business,managementof
              technology
              UNIT6:GLOBALENVIRONMENT
              Natureofglobalization,challengesofinternationalbusiness,strategiesforgoing
              global,WTO,Tradingblocksinbrief.
              UNIT:1                BUSINESSENVIRONMENT
              INTRODUCTION
              Theconceptofbusinesshasemerged,eversincetheexchangeactivitytook
              placeorfrom thestageofbartereconomyintheeconomicprocess.The
              businessisanactivitywhichisprimarypursuedwiththeobjectofearningprofit.
              Abusinessactivityinvolvesproduction,exchangeofgoodsandservicestoearn
              profitorearnaliving.
              Theword‘business’literallymeansastateofbeingbusy.Everypersonis
              engagedinsomekindofoccupation,afarmerworksinthefield,aworkerworks
              inthefactory,aclerkdoeshisjobintheoffice.Theearntheirlivelihood.While
              doing some work.Business comprises allprofit-seeking activities and
              enterprisesthatprovidegoodsandservicesnecessarytoaneconomicsystem.
              Meaning
              Ingeneraltermsbusinessisnothingbutbuyingandsellingofgoodsinthe
              marketatareasonableprice.
              Businessisaneconomicactivity,whichisrelatedwithcontinuousandregular
           ASHOKAHL
           UCATUMKUR
           TUMKURUNIVERSITY
           BUSINESSENVIRONMENT                              IISEMB.COM
              productionanddistributionofgoodsandservicesforsatisfyinghumanwants.
              Itisaprocesswherethegoodsandservicesareexchangeamongbuyersand
              sellersformoneyorprofit.
              Definition
              AccordingtoStephensondefinesbusinessas”theregularproductionor
              purchaseandsaleofgoodsundertakenwithanobjectiveofearningprofitand
              acquiringwealththroughthesatisfactionofhumanwants.”
              “Businessisthatcomplexfieldofacommerceandindustryinwhichgoodsand
              servicesarecreatedanddistributedforthesakeofearningprofitwithinaframe
              workoflawsandregulation”.
              Scope
              Businessisanintegralpartofmodernsociety.Itisanorganiziedand
              systematizedactivityforprofit.
            1.Improvementinstandardofliving:-Businesshelpspeopleingeneraltoimprove
              theirstandardofliving.
            2.Properutilizationofresources:-itleadstoeffectiveutilizationofthescarce
              resourcesofsociety.Itprovidesfacilityofmassproduction.
            3.Betterqualityandlargevarietyofgoodsandservices:-itinvolvesproduction,
              purchaseandsaleofgoodsandservicesforprice.Customersatisfactionisthe
              backboneofmodernbusiness.Servicessuchassupplyofwater,electricityetc.
            4.Createsutilities:-businessmakesgoodsmoreusefultosatisfyhumanwants.It
              addstoproductstheutilitiesofperson,time,place,knowledgeetc.thus,people
              areabletosatisfytheirwantseffectivelyandeconomically.
            5.Employmentopportunities:-Itprovidesemploymentopportunitiestolarge
              numberofpeopleinsociety.
            6.Workerswelfare:-businessorganizationsthesedaystakecareofvarious
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           UCATUMKUR
           TUMKURUNIVERSITY
           BUSINESSENVIRONMENT                              IISEMB.COM
              welfareactivitiesforworkers.Theyprovidesaferandhealthierworkenvironment
              foremployees.
              Objectivesofbusiness
                           1.Profitmaking
                           2.Growth
                           3.Power
                           4.Employeesatisfactionanddevelopment
                           5.Qualityofproductandservices
                           6.Marketleadership
                           7.Challenging
                           8.Servicetosociety
                           9.Goodcorporatecitizenship
            1.Profitmaking:profitisthebackboneofanybusiness.Withoutwhichno
              businesscansurviveinacompetitivemarket.Profitisthemainmotivator,
              strongsustainerandjudiciousallocatorofresources.ithelpstothebusiness
              mennotonlytoearntheirlivingbutalsotoexpandtheirbusinessactivitiesby
              reinvestingapartoftheprofit.
            2.Growth:growthisanotherprimaryobjectiveofbusiness.Itshouldgrowinall
              directionsoveraperiodoftime.Someofthestrategiesadoptedtoachieve
              growth.Theyare:
            i.Addmoreandmoreproducts.
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           UCATUMKUR
           TUMKURUNIVERSITY