BUSINESS ENVIRONMENT

Chapter 2
NATURE, SCOPE AND OBJECTIVES OF BUSINESS

Chapter 2 Nature, Scope and Objectives of Business

Business System

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Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

Business System/Process

The model represented here is an aggregation of macro business system which may encompass numerous business activities of varying nature and dimensions. Each of some of these activities may constitute a business. For example, the marketing stage may involve different businesses like sole distribution, wholesaling, retailing, transportation, warehousing, financing etc.

Himalaya Publishing House

Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

Classification of Business
1.
2. 3. 4. 5.

Business which produce Goods Business which Produce Service Business which Distribute Goods Business which Facilitate Distribution of Goods Business which Deal in Finance and Financial Services

Himalaya Publishing House

Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

Classification of Industries

Classification Based on the Nature of Activity Classification Based on Competitive Structure Size-Based Classification Use-Based Classification

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Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

The following table shows important industries that come under the different categories.
I. Basic Industries Mining and quarrying Fertilizers Heavy inorganic chemicals Cement Iron and steel basic industries Non-ferrous basic metals Electricity II. Capital Goods Industries Hand tools and small tools Specialised equipment Machine tools Agricultural machinery (tractors) Heavy electrical equipment Electric cables and wires Rail road equipment Heavy vehicles

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Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

III. Intermediate Goods Industries Cotton Spinning Jute textiles Tyres and tubes Synthetic resins .and plastics Man-made fibres Dye-stuffs Products of petroleum and coal (petroleum refinery products) Bolts, nuts, nails, screws, springs, chains, etc. Manufacture of metal Dry cells

IV. Consumer Goods Industries A. Consumer Durable Goods Electric fans Telecommunication equipment Motor cycles and bicycles B. Consumer Non-durable Goods Food manufacturing Tobacco manufactures Cotton weaving Paper and paper product Rubber foot-wear Drugs and pharmaceuticals Soaps and glycerine Electric lamps
Business Environment Francis Cherunilam

Himalaya Publishing House

Chapter 2 Nature, Scope and Objectives of Business

Business Process

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Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

Mission, Objectives, Goals and Targets - Sequence of Formulation and Achievement.

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Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

Hierarchy of Objectives

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Business Environment Francis Cherunilam

Chapter 2 Nature, Scope and Objectives of Business

Table: Comparison Between Economic and Social Objectives

Himalaya Publishing House

Business Environment Francis Cherunilam