INTRODUCTION TO

BUSINESS
Anum Shah
Roll No#3367
WHAT IS BUSINESS?
 WHAT IS BUSINESS
“An institution organized and operated to
provide goods and services to the society
under the incentive of private gain” (Wheeler)
WHAT IS BUSINESS
 “A business embraces all those functions
involved in the making, buying and
transportation of goods” (Thomas Evelyn)
PROCESS OF ANY BUSINESS
INPUT PROCESS OUTPUT
Factors Of Production Purchasing Realization of Profits

Land Inventory Demand Satisfaction

Labor Need Fulfillment
Production
Capital
Distribution
Entrepreneurship
Marketing - Sales
Information Resources
Finance - Accounting
 INPUT
All the factors of productions are the input
of any business
 Land
 Labor
 Capital
 Entrepreneurship
 LAND:
“Stands for all natural resources which yield
an income or which has exchange value .It
represents those natural resources which are
useful and scarce, actually or potentially”.
 LABOR:

“Any exertion of mind or body undergone partly or

wholly with a view to some good other than the
pleasure derived directly from the word is called
labor”
:
DIVISION OF LABOR

 Simple division of labor: division of society

into major occupations e.g. carpenters,
blacksmith, weavers, etc .it may be also
called functional divisional of labor
 Complex Division of Labor: split up into a
number of processes and sub-processes
and is carried out by a separate group of
people
 Territorial Division Of Labor
Kinds Of Labor

 Physical Labor:
 Intellectual Labor:

 Presentation:
CAPITAL
“Capital refers to that part of a man’s
wealth which is used in producing further
wealth or which yields an income”
CAPITAL
It is raised from the sole proprietor, partners or
shareholders.
Shapes of Capital: plant , machinery ,tools ,
and accessories , stocks of raw material
,goods in process and fuel
 ENTREPRENEURS
 Entrepreneur is the innovator
 An entrepreneur is an individual who accepts
financial risks and undertakes new financial
ventures.
 INFORMATION
 Information resource plays a vital role
ECONOMIC SYSTEM
 ECONOMIC SYSTEM
All businesses work under certain economic
system . The basic element s around which the
business revolves is capital which is the pivotal
factor in determining the type of economic system.
every system is basically meant to provide, goods
and services to the people at the right price. It
allows to establish business organizations so that
they produce goods and services demanded and
needed by the consumers.
 KINDS OF ECONOMIC SYSTEM
 Capitalism
 Socialism

 Islamic

 Mixed economy
CAPITALISM
“The economic system allowing private
ownership of all or most of the means of
productions and distribution(land, industrial,
railways) with the main motivation of profit”
 CAPITALISM
The economic system in which capital flows
freely in the society and finds its way to
production and distribution in the private
sector with the minimum interference of the
government
 SOCIALISM
“socialism is an economic organization of society in
which the material means of production are
owned by the whole community and operated by
the organs representatives of, and responsible
to, the community according to a general plan,
all members of the community being entitled to
benefits from the results of such socialized
planned production on the basis of equal rights”
(Dickenson)
 MIXED ECONOMIC SYSTEM
“Mixed economic system is a system
comprising of both capitalism and socialism
pattern”
“In other words an economic system in which
few characteristics of capitalism and few of
socialism are found is called mixed economy”
ISLAMIC ECONOMIC SYSTEM
“It is the system free from exploitation . It
allows every person to earn his or her
livelihood from legitimate sources and
discourages concentration of wealth and
extravagance”
 MARKET BASED ECONOMY

MARKET
“Originally”, Says Jevons, “a market was a public place
in a town where provisions and other objects were
exposed to sales”

“Economists understand by the term market not any

particular market place in which things are bought
and sold but the whole of any region in which buyers
and sellers are in such free intercourse with one
another that the price of the same goods tends to
equality easily and quickly”
(Cournat French economist)
ESSENTIALS OF MARKET
 A commodity which is dealt with
 The existence of buyer and seller

 A place, may be a certain region, a country

 Such intercourse between buyers and sellers

that one price should prevail for the same
commodity at the same time
WHAT IS DEMAND?
“The various quantities of a given commodity
or service which consumers would buy in one
market in a given period of time at various
places, or at various incomes, or at various
prices of related goods”
(Bober)
 QUANTITYQuantity
DEMANDED
Price(thousan Demanded
d)
10 (kg)
5000
20 4000
30 3000
40 2000
50 1000
 QUANTITY SUPPLIED
Price(thousand Quantity supplied KG
)10 1000
20 2000
30 3000
40 4000
50 5000

6000

5000

4000
price
3000
quantity demanded
2000

1000

0
1 2 3 4 5
PRICE DETERMINED
Price(thousand)Quantity Quantity supplied
Demanded KG
(kg)
10 5000 1000
20 4000 2000
30 3000 3000
40 2000 4000
50 1000 5000

6000

5000 Price(thousand
)
4000
Quantity
3000 Demanded (kg)

2000 Quantity
supplied KG
1000

0
1 2 3 4 5
MARKET BASED ECONOMY HISTORY
 HISTORY
 The Industrial Revolution
 Laissez-Faire and the Entrepreneurial Era

 The Production Era

 The Marketing Era

 The Global Era

 The Internet Era

 THE FACTORY SYSTEM AND THE
INDUSTRIAL REVOLUTION

The result of many fundamental,

interrelated changes that
transformed agricultural
economies into industrial ones
Widespread replacement of
manual labor
Productivity and technical
efficiency grew dramatically
Efficiency was also enhanced
 LAISSEZ-FAIRE AND THE
ENTREPRENEURIAL ERA

the government should not

interfere in the economy
business function without
regulation
according to its own “natural”
laws
 THE PRODUCTION ERA
Productivity
emphasis
Mass production
Car manufaturing
 THE MARKETING ERA
business must focus on
identifying
satisfying consumer wants in
order to be profitable
 THE GLOBAL ERA
 Technological growth
 Global market

 Globally consumption

 Global production
 THE INTERNET ERA
How does the growth of the Internet affect
business?
1. The Internet will give a dramatic boost to trade in
all sectors of the economy, especially services.

2. The Internet will serve to level the playing field,

at least to some extent, between larger and
smaller enterprises regardless of what products
or services they sell.

3. The Internet also holds considerable potential as

an effective and efficient networking mechanism
among businesses.
INFLATION
INFLATION
“inflation is the pervasive and sustained rise in
the aggregate level of prices measured by an
index of the cost of various goods and
services. Repetitive price increases erode the
purchasing power of money and other
financial assets with fixed values, creating
serious economic distortions and
uncertainty. ”
INFLATION
“The rate at which the general level of prices
for goods and services is rising, and,
subsequently, purchasing power is falling”
“Inflation is a key indicator of a country and
provides important insight on the state of the
economy and the sound macroeconomic
policies that govern it”
A Bundle of Marks
After World War I (1914-
1918), inflation in
Germany was so high that
millions of marks were
required to buy even the
most basic item. As a
result, German money
frequently had more value
as kindling than as legal
tender. Shown here, a
German woman prepares
to light her stove with a
bundle of paper currency.
CAUSES OF INFLATION
Demand-pull inflation
when aggregate demand exceeds existing
supplies
forcing price increases and pulling up
wages, materials, and operating and
financing costs
CAUSES OF INFLATION
Cost-push inflation
 when prices rise to cover total expenses
and preserve profit margins
EVALUATING ECONOMIES
EVALUATING ECONOMIES
 Economic growth
“Economic growth occurs whenever people
take resources and rearrange them in ways
that make them more valuable. “
EVALUATING ECONOMIES
 Full Employment
the economic condition when everyone
who wishes to work at the going wage-
rate for their type of labor is employed
UNEMPLOYMENT
“AN ECONOMIC CONDITION MARKED
BY THE FACT THAT
INDIVIDUALS ACTIVELY
SEEKING JOBS REMAIN UN HIRED” 
GROSS DOMESTIC PRODUCT
“The total market value of all
final goods and services produced in
a country in a given year, equal to
total consumer, investment and
government spending, plus
the value of exports, minus the value
of imports”
GDP PER CAPITA
An approximation of
the value of goods produced per person in
the country, equal to the country's GDP divided by
the total number of people in the country.
 GDP of a country to
which income from abroad remittances 
of nationals living outside and income
from
foreign subsidiaries of local firms has
been added.
EVALUATING ECONOMIES
 budget deficit occurs when
an entity spends more money than it takes
in.
 The balance of trade  is the difference
between the monetary value
of exports and imports in an economy over a
certain period of time.
TYPES OF BUSINESS ORGANIZATION
TYPES OF BUSINESS ORGANIZATIONS

Sole
Proprietorship

Partnership
Corporation
 SOLE
PROPRIETORSHI
P

“It is the business which is

owned by a single owner who
is referred to as sole proprietor
and enjoys benefits which
other ownership cannot”
SOLE PROPRIETORSHIP
Advantages: Disadvantages:
› Freedom › Unlimited liability
› Privacy › Dissolves when
owner dies
› Succeed or fail
alone › Depends on
› Simple to form resources of single
individual
› Low start-up costs
Unlimited Liability
Legal principle holding owners responsible for paying
off all debts of a business
 PARTNERSHIP

A General Partnership is constituted between

individuals if they agree to enter into a general or
particular business, to share the profits and losses
together without fixing any limitations or
conditions.
.
 A Special or Limited Partnership is an
agreement entered into to allow a special
partner, whose name does not appear in that
of the firm, to put in a limited amount of
capital and to receive a corresponding share
of the profits, and be held correspondingly
responsible for the contracts of the firm, but
only to the extent of the capital contributed
by him, and no special partner can interfere
in or transact firm business
PARTNERSHIP
Advantages: Disadvantages:
› New talent & › Partners share
money stimulate unlimited liability
growth › Must file specific
› Easier to borrow info about business
money & partners
› Resources of more › Dissolves when
than one individual partner leaves or
› Relatively easy to dies
form › Difficult to transfer
ownership
› Partners are taxed
as individuals › Internal conflict
 ALTERNATIVES TO GENERAL
PARTNERSHIP

Limited Partnership
Type of partnership consisting of limited partners
and an active or managing partner

Limited Partner General Partner

Partner who does not
share in a firm’s
management and is liable
for its debts only to the limit
of his or her investment
(Active Partner)
Partner who actively
manages a firm and
who has unlimited
liability for its debts
“PARTNERSHIP LIABILITY”
GENERAL PARTNERSHIP

Claims of Creditors

General Partner’s Partnership’s Assets General Partner’s

Personal Assets Personal Assets
“PARTNERSHIP LIABILITY”
LIMITED PARTNERSHIP

Claims of Creditors

General Partner’s Partnership’s Assets Limited Partner’s

Personal Assets Personal Assets

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 CORPORATI
ON

Business that is legally

considered an entity separate
from its owners and is liable for
its own debts; owners’ liability
extends to the limits of their
investments
CORPORATION

Corporations may:
 Sue & be sued

 Buy, hold, & sell property

 Make & sell products to customers

 Commit crimes & be tried & punished for

them
CORPORATION
Advantages: Disadvantages:
 Limited liability  Tender offer
 Continuity  High start-up costs
 Easy to transfer  Charter required
ownership  Double-taxation
 Easy to raise
money
 TYPES OF CORPORATIONS
Closely Held (Private) Corporation
Corporation whose stock is held by only a few
people and is not available for sale to the general
public

Publicly Held (Public) Corporation

Corporation whose stock is widely held and
available for sale to the general public
S Corporation
Hybrid of a closely held corporation and a
partnership; organized and operated like a
corporation, but treated as a partnership for tax
purposes
TYPES OF CORPORATIONS
Limited Liability Corporation (LLC)
Hybrid of a publicly held corporation and a
partnership in which owners are taxed as partners
but enjoy the benefits of limited liability
Professional Corporation
Form of ownership allowing professionals to take
advantage of corporate benefits while granting
them limited business liability and unlimited
professional liability

Multinational or Transnational
Corporation
Form of corporation spanning national boundaries
 CREATING AND MANAGING A
CORPORATION

 Creating a Corporation

 Corporate Governance

 Special Issues in Corporate Ownership

 CREATING A CORPORATION
Three basic steps:
 Consult an attorney

 Select a state in which to incorporate.

 File articles of incorporation and corporate

bylaws
CREATING A CORPORATION
Articles of Incorporation
Document detailing the corporate governance of a
company, including its name and address, its
purpose, and the amount of stock it intends to issue
Bylaws
Document detailing corporate rules and regulations,
including election and responsibilities of directors and
procedures for issuing new stock
CORPORATE GOVERNANCE
Corporate Governance
Roles of shareholders, directors, and other
managers in corporate decision making
Stockholder (or Shareholder)
Owner of shares of stock in a corporation
Stock
Share of ownership in a corporation
STOCKHOLDERS’ RIGHTS
Initial Public Offering ( IPO)
First offer of shares in a closely held corporation to
outside investors
Preferred Stock
Guarantees holders fixed dividends and priority claims
over assets but no corporate voting rights
Common Stock
Pays dividends and guarantees corporate voting rights,
but offers last claims over assets
Proxy
Authorization granted by a shareholder for someone
else to vote his or her shares
“CORPORATE GOVERNANCE
HIERARCHY”
Stockholders Purchase
ownership
shares, and own
the corporation

Board of Directors

Set major policies, report to

shareholders, legally responsible for
corporate actions
Officers Responsible for
corporation’s
overall
performance

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STRATEGIC ALLIANCE

An agreement between two or
more individuals or entities stating that the
involved parties will act in a certain way
in order to achieve a common goal. Strategic
alliances usually make sense when the parties
involved have complementary strengths.
JOINT VENTURE
A contractual agreement joining together two
or more parties for the purpose
of executing a particular
business undertaking. All parties agree
to share in the profits and losses of
the enterprise.
 SPECIAL ISSUES IN CORPORATE
GOVERNANCE
Employee Stock Ownership Plan (ESOP)
Arrangement in which a corporation holds its own
stock in trust for its employees, who gradually
receive ownership of the stock and control its
voting rights

Institutional Investors
Large investors, such as mutual funds and pension
funds, that purchase large blocks of corporate
stock
CORPORATE OWNERSHIP
MERGERS
Mergers are business combination transactions
involving the combination of two or more
companies into a single entity. Most state
laws require that mergers be approved by at
least a majority of a company's shareholders
if the merger will have a significant impact
on either the acquiring or target company.
 MERGERS
Horizontal Merger 
Merger involving firms in the same industry
Vertical Merger 
Merger between firms that are customers and/or suppliers
to one another
Conglomerate Merger 
Merger between firms in unrelated businesses

Takeover Tactics
A takeover is considered friendly when the acquired
company
 DIVESTITURES & SPIN-OFFS
Divestiture
Strategy whereby a firm sells one or more of its
business units
Spin-Off
Strategy of setting up one or more corporate units
as new, independent corporations
SMALL BUSINESS AND
ENTREPRENEURSHIP
Advantages of new ventures
New blood
New ideas
Flexibility in the tenure
ENTREPRENEUR AND ITS
CHARACTERISTICS
An entrepreneur is an individual who accepts
financial risks and undertakes new financial
ventures.
CHARACTERISTICS:
 Spontaneous creativity
 The ability and willingness to make decisions

 A generally risk-taking personality

 Courageous

 Hardworking

 Strong leadership 
THREATS TO NEW SMALL BUSINESS
 No expertise
 Lack of experience

 Lack of financial resources

 Less tenure of operating the business

LAUNCHING OPTIONS
 Start up
 Buying an existing business

 franchising
START UP
Advantages:
 You are the boss

 You are not answerable to others

START UP
Disadvantages:
 Burden of work

 Less resources of credit

 Difficult to create an image

BUYING AN EXISTING BUSINESS

 Buying a business that is currently running

Steps and processes
  Personal priority 

 Business opportunity

 Reviewing potential target

 Arrangement of financing

 Conduct due diligence 

 FRANCHISING 
“Any arrangement in which the owner of trademark,
trade name or copyright has licensed others to
use it and sell its goods or services “
ADVANTAGES OF  FRANCHISING
 Training and guidance
 Brand name appeal

 Proven track record

 Financial assistance
DISADVANTAGES OF  FRANCHISING
  Franchise fee
 Franchisor control

 Unfulfilled promise
IMPACT OF NEW BUSINESS ON THE
ECONOMY
 New employment opportunities
 New ideas

 New innovations
INTRAPRENEURS

“Individual within an organization who is

allowed to operate as an entrepreneur.
Intrapreneurs can be senior managers in
companies that have decided to introduce
internal competition where areas of the
business are run as profit centers”
MINIPRENEURS
Are the individuals launching super small scale
enterprises. Include micro business
HUMAN RESOURCE MANAGEMENT
“Set of organizational activities directed at
attracting, developing, and maintaining an
effective workforce”

“Activities undertaken to attract ,develop and

maintain an effective workforce within an
organization”
 HRM CHALLENGES: MAJOR
HURDLES
 Age factors

 Environment factors
 Cultural factors
HUMAN RESOURCE PLANNING
 assess future recruitment needs
 anticipate and possibly avoid redundancies

 formulate training programmes

 develop a promotion and career development

policy including succession planning
 keep staff costs to a minimum while
permitting salaries to be competitive
 assess future premises requirements.
HUMAN RESOURCE PLANNING
“The forecasting of human resources needs
and thr projected matching of individuals
with the expected job vacancies”
HUMAN RESOURCE PLANNING
JOB ANALYSIS
Job analysis may be defined as a methodical
process of collecting information on the
functionally relevant aspects of a job. Job analysis
tells the human resources personnel the time it
takes to complete relevant tasks
JOB ANALYSIS
 the tasks that are grouped together under a
single job position
 the ways to design or structure a job for
maximizing employee performance
 the employee behavioral pattern associated
with performance of the job
 the traits and attributes of a proper
candidate for the job
 the ways the data can be used to develop
human resource management
JOB DESCRIPTION

 Job description: A job description gives an

account of the work and duties associated
with a particular job. It describes the way the
job is performed currently. Most job
descriptions contain the following
information:
the job name
 summary description of the job
 a list of duties for the job

 a list of organizational responsibilities related

to the job
JOB SPECIFICATIONS
 Job specifications define the characteristics of
the activities associated with the job and
given in the job description. They describe
the skill sets and qualifications that a
candidate for the job should possess.
 INTERNAL RECRUITING
Advantages of internal recruiting:
 Recruiting costs

 Motivation

 Familiarity
INTERNAL RECRUITING
Disadvantages of internal recruiting:
 Inbreeding

 EEO Criteria

 More training
INTERNAL RECRUITING
Potential Advantages
 easier to assess candidates since more
information is available
 less costly and quicker than an external
search
 promoted employee is already familiar with
organization policies, culture, etc.
 signals to employees that career
opportunities exist in organization
  improve employee morale and organization
loyalty
INTERNAL RECRUITING
Potential Disadvantages
  narrowing of thinking and stale ideas
(inbreeding)
 possible discontent of rejected applicants

  boss / subordinate relations can be

problematic
 ripple effect
  difficult to do with rapid growth

  affirmative action goals may be more

difficult to achieve 
EXTERNAL RECRUITING
Potential Advantages
 provides new ideas / fresh perspectives

  initiate a turnaround

  reduce expensive training by hiring

experienced employee
  may be less upsetting to present
organizational hierarchy
  allows rapid growth

 increase diversity 
RESOURCES OF EXTERNAL RECRUITMENT
 Employment websites
 Govt and federal agencies

 Personal references

 Job fairs

 Trade associations
EXTERNAL RECRUITING
Potential Disadvantages
 takes longer and costs more

  little information about candidate’s ability to

fit with rest of organization
  destroys incentive of present employees to
strive for promotion
  outsider takes time to become familiar with
current systems
  current organization members may fight
new ideas
SELECTION: MAKING THE RIGHT CHOICE
APPLICATION
An application form is an effective method of
gathering info about the applicant
INTERVIEW
Serves as a two way communication process
that allows both the organization and
applicant to collect info that would otherwise
be difficult to obtain
TYPES OF INTERVIEW
 Structured interview
Questions are written in advance
 Unstructured

No prior questions are made

TESTS
“A written test desired to measure a particular
attribute such as intelligence”
REFERENCES AND BACKGROUND
 Reference and background are checked
ORIENTATION
 orientation course: a course introducing a
new situation or environment 
 Introduction to the employee is given
TRAINING
It is a learning process that involves the
acquisition of knowledge, sharpening of
skills, concepts, rules, or changing of
attitudes and behaviors to enhance the
performance of employees. 
ON-THE-JOB TRAINING
On-the-job training (OJT) is one of the best
training methods because it is planned,
organized, and conducted at the employee's
worksite.
OFF-THE-JOB TRAINING
Employee training at a site away from the
actual work environment. It often utilizes
lectures, case studies, role
playing, simulation, etc. See also on the job
training.
COMPENSATION
something (such as money) given or received
as payment or reparation (as for a service or
loss or injury)
SEPARATION: BREAKING UP IS
HARD TO DO
 As termination or retirement of the emplyees
take place
MARKETING

“The process of planning and executing the

conception, pricing, promotion and
distribution of ideas ,goods, services to
create exchanges that satisfy individual and
organizational objective”
MARKETING OBJECTIVE
Marketing objectives are set out for the
organization’s marketing program.
MARKETING MIX
The major marketing management decisions
can be classified in one of the following four
categories:
 Product

 Price

 Place (distribution)

 Promotion
SUMMARY OF MARKETING MIX DECISIONS

Product Price Place Promotion

Functionality List price Channel Advertising

Appearance Discounts members Personal
Quality Allowances Channel selling
Packaging Financing motivation Public
Brand Leasing Market relations
Warranty options coverage Message
Service/Supp Locations Media
ort Logistics Budget
Service
levels
PRODUCT LIFE CYCLE
A new product progresses through a sequence
of stages from introduction to growth,
maturity, and decline. This sequence is
known as the product life cycle and is
associated with changes in the marketing
situation, thus impacting the marketing
strategy and the marketing mix.
PRODUCT LIFE CYCLE DIAGRAM
         
PRODUCT
 Consumer goods
 Industry goods
CONSUMER GOODS
 Convenience goods
 Shopping

 Specialty

 unsought
INDUSTRY GOODS
 Purchase of merchandise
 Fixed asset purchase
PRICING
Through this a company receives reward
against its product
 More than the cost price

 Maximizing profit

 Minimizing loss
PROMOTION
“Communication techniques aimed at
informing, persuading a customer to buy a
particular product”
DISTRIBUTION
 After promotion distribution of that product
takes place proper channels are used for
example wholesaler or retailer
MARKETING ENVIRONMENT
 Cultural
 Social

 Legal

 political
MARKET SEGMENTATION
 The division of a market into different
homogeneous groups of consumers is known
as market segmentation
 Geographic segmentation is based on regional
variables such as region, climate, population
density, and population growth rate.
 Demographic segmentation is based on
variables such as age, gender, ethnicity,
education, occupation, income, and family status.
 Psychographic segmentation is based on
variables such as values, attitudes, and
lifestyle.
 Behavioral segmentation is based on
variables such as usage rate and patterns,
price sensitivity, brand loyalty, and benefits
sought.
TARGET MARKET
A certain group of people who have a same
taste of products and services
FACTORS INVOLVES IN TARGETING
MARKET
 Social
 Cultural

 Political

 Environmental
 MARKETING RESEARCH

 Managers need information in order to

introduce products and services that create
value in the mind of the customer. But the
perception of value is a subjective one, and
what customers value this year may be quite
different from what they value next year. As
such, the attributes that create value cannot
simply be deduced from common knowledge.
Marketing Research vs. Market Research
These terms often are used interchangeably,
but technically there is a difference.
Market research deals specifically with the
gathering of information about a market's
size and trends. Marketing research covers a
wider range of activities. While it may involve
market research, marketing research is a
more general systematic process that can be
applied to a variety of marketing problems
MARKETING PLAN OUTLINE
I.   Executive Summary
 A high-level summary of the marketing plan. 

II.   The Challenge
 Brief description of product to be marketed
and associated goals, such as sales figures
and strategic goals. 
III.   Situation Analysis
 Company Analysis

 Goals

 Focus

 Culture

 Strengths

 Weaknesses

 Market share
Customer Analysis
 Number

 Type

 Value drivers

 Decision process

 Concentration of customer base for particular

products
Competitor Analysis
 Market position

 Strengths

 Weaknesses

 Market shares
Collaborators
 Subsidiaries, joint ventures, and distributors, etc.

Climate
 Macro-environmental PEST analysis :

 Political and legal environment

 Economic environment

 Social and cultural environment

 Technological environment
IV.   Market Segmentation
 Present a description of the market
segmentati
On
V.   Alternative Marketing Strategies
 List and discuss the alternatives that were
considered before arriving at the
recommended strategy. Alternatives might
include discontinuing a product, re-branding,
positioning as a premium or value product,
etc
VI.   Selected Marketing Strategy
 Discuss why the strategy was selected, then
the marketing mix decisions (4 P's) of
product, price, place (distribution), and
promotion
VII.   Short & Long-Term Projections
 The selected strategy's immediate effects,
expected long-term results, and any special
actions required to achieve them. This
section may include forecasts of revenues
and expenses as well as the results of a
break-even analysis
VIII.   Conclusion
 Summarize all of the above
 CONSUMER BEHAVIOR

 The action that a person takes in

 Purchasing and using product and services

 The mental and social processes that

proceed and follow these actions
INFLUENCES ON CONSUMER BEHAVIOR
 Social
 Personal

 Psychological
MOTIVATION
Motivation is a desire to achieve a goal,
combined with the energy to work
towards that goal. Students who are
motivated have a desire to undertake
their study and complete the
requirements of their course.
THEORY X AND THEORY Y
Theory X Assumptions:
 People inherently dislike work

 People must be coerced or controlled to

do
 work to achieve objectives

 People prefer to be directed

Theory Y Assumptions:
 People view work as being as natural as
play and rest
 People will exercise self-direction and
-control towards achieving objectives
they are committed to
 People learn to accept and seek
responsibility
TWO FACTOR THEORY
Motivator factors increase job satisfaction:
 Achievement

 Recognition

 Work itself

 Responsibility

 Advancement

 Growth
Hygiene factors are those whose absence
can create job dissatisfaction:
 Supervision

 Company policy

 Working conditions

 Salary

 Peer relationship

 Security
EQUITY THEORY
 Specific goals increase performance, and
difficult goals, when accepted, result in
higher performance than easy goals.
 An employee compares her/his job's inputs-
outcomes ratio with that of referents.
If the employee perceives inequity, she/he will
act to correct the inequity:
 Lower productivity

 Reduced quality

 Increased absenteeism

 Voluntary resignation.
LEADERSHIP
Leadership is one of the most salient aspects
of the organizational context.
“The ability to influence people towards the
attainment of organizational goals”
“Leadership is the ability to secure desirable
actions from a group of followers voluntarily ,
with out use of coercion””
THEORIES
 Trait thoery
“Traits are the distinguished personal
characteristics of a leader , such as
intelligence, value and appearance”
 Behavioural theory
 Situational Theories:
• Focus on leadership in situations:
different situations need different
kinds of leadership.
• Leaders direct and a support.
• Group competence and commitment
determines necessary skill mix.
 Contingency Theories
• Right leader’s style needs to be
matched
to the right setting.
• Two major styles – Task motivated and
relationship motivated.
• Three situation variables:
– Leader-member relations
– Task structure
– Position power
 Great Man Theories Based on the
belief that leaders are exceptional
people, born with innate qualities,
destined to lead. The use of the term
'man' was intentional since until the
latter part of the twentieth century
leadership was thought of as a concept
which is primarily male, military and
Western. This led to the next school of
Trait Theories
 Situational Leadership This approach
sees leadership as specific to the
situation in which it is being exercised.
For example, whilst some situations
may require an autocratic style, others
may need a more participative
approach. It also proposes that there
may be differences in required
leadership styles at different levels in
the same organisation
 Transformational Theory The
central concept here is change and the
role of leadership in envisioning and
implementing the transformation of
organisational performance
 Transactional Theory This approach
emphasises the importance of the
relationship between leader and
followers, focusing on the mutual
benefits derived from a form of
'contract' through which the leader
delivers such things as rewards or
recognition in return for the
commitment or loyalty of the followers
 Contingency Theory This is a
refinement of the situational viewpoint
and focuses on identifying the
situational variables which best predict
the most appropriate or effective
leadership style to fit the particular
circumstances
GLOBALIZATION
Name for the process of increasing
the connectivity and interdependence of the
world's markets and businesses. 
TRADING BLOCKS AND COUNTRY GROUPS

 EUROPEAN UNION
Austria, Belgium, Cyprus, Czech Republic,
Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia,
Lithuania, Luxembourg, Malta, Netherlands,
Poland, Portugal, Slovakia, Slovenia, Spain,
Sweden, United Kingdom
http://www.europa.eu.int/index_en.htm 
TRADING BLOCKS AND COUNTRY GROUPS
 OPEC MEMBER COUNTRIES
Austria, Australia, Belgium, Canada, Czech
Republic, Denmark, Finland, France,
Germany, Greece, Iceland, Ireland, Italy,
Japan, Luxembourg, Mexico, New Zealand,
Netherlands, Norway, Poland, Portugal,
Republic of Korea, Slovak Republic, Sweden,
Switzerland, Turkey, United Kingdom, United
States of America
http://www.opec.org/ 
TRADING BLOCKS AND COUNTRY GROUPS
SAARC MEMBER COUNTRIES
Bhutan, India, Maldives, Nepal, Pakistan, Sri
Lanka 
http://www.saarc-sec.org/ 
TRADING BLOCKS AND COUNTRY GROUPS
NATO MEMBER COUNTRIES
Belgium, Bulgaria, Czech Republic, Canada,
Denmark, Estonia, France, Germany, Greece,
Hungary, Iceland, Italy, Latvia, Lithuania,
uxembourg, Netherlands, Poland, Portugal,
Romania, Slovakia, Slovenia, Spain, Turkey,
United Kingdom, United States of America 
http://www.nato.int/ 
TRADING BLOCKS AND COUNTRY GROUPS
 NAFTA MEMBER COUNTRIES
Canada, Mexico, United States of America
http://www-tech.mit.edu/Bulletins/nafta.html 
TRADING BLOCKS AND COUNTRY GROUPS
 COMMONWEALTH OF INDEPENDENT
STATES 
Armenia, Azerbaijan, Belarus, Georgia,
Kazakhstan, Kyrgyzstan, Moldova, Russia,
Tajikistan, Turkmenistan, Ukraine,
Uzbekistan 
http://www.cisstat.com/eng/index.htm 
TRADING BLOCKS AND COUNTRY GROUPS
 APEC MEMBER COUNTRIES
Australia, Brunei Darussalam, Canada, Chile,
People's Republic of China, Hong Kong,
China, Indonesia, Japan, Republic of Korea,
Malaysia, Mexico, New Zealand, Papua New
Guinea, Peru, Philippines, Russia, Singapore,
Chinese Taipei, Thailand, United States of
America, Vietnam
http://www.apecsec.org.sg/ 
FDI
 Foreign direct investment (FDI) in its
classic form is defined as a company from
one country making a physical investment
into building a factory in another country. It is
the establishment of an enterprise by a
foreigner..Its definition can be extended to
include investments made to acquire lasting
interest in enterprises operating outside of
the economy of the investor.
BARRIERS TO INTERNATIONAL TRADE
 A trade barrier is a general term that
describes any government policy or
regulation that restricts international trade.
The barriers can take many forms, including
the following terms that include many
restrictions in international trade within
multiple countries that import and export any
items of trade.
BARRIERS TO INTERNATIONAL TRADE
 Import duty
 Import licenses

 Export licenses

 Import quotas

 Tariffs

 Subsidies

 Non-tariff barriers to trade

 Voluntary Export Restraints

 Local Content Requirements

 Embargo
EMBARGO
 In international commerce and politics,
an embargo is the prohibition of commerce
(division of trade) and trade with a certain
country, in order to isolate it and to put its
government into a difficult internal situation,
given that the effects of the embargo are
often able to make its economy suffer from
the initiative.
TAX, TARIFF AND TRADE
The tax, tariff and trade laws of a political
region, state or trade bloc determine which
form of consumption and production tend to
be encouraged or discouraged. All three are
often changed by a trade pact.
SUBSIDY
Financial aid given by
the government to individuals or groups.
CARTEL
A cartel is a counterfeit agreement among
industries. It is an informal organization of
producers that agree to coordinate prices
and production. Cartels usually occur in
an oligopolistic industry, where there is a
small number of sellers and usually
involve homogeneous products.