Introduction to BusinessLecture 01

Any activity to earn profit.The word “business” is derived from the term “busyness.”

An activity in which different persons exchange something of value whether goods or services for mutual gain or profit

ORBusiness is an enterprise engaged in the production

and distribution of goods for sale in the market

A phenomenon in which a person searches for an opportunity and try to avail it.

Industry Commerce

Conversion of raw material into finished goods.

Primary Industry◦ Extractive Industry _ Extraction of underground

resources.◦ An industry involved in the extraction

and collection of natural resources, such as copper and timber, as well as by activities such as farming and fishing. ◦ A company in a primary industry can also be involved in

turning natural resources into products.

Secondary IndustryThe industrial sector of an economy that is dominated

by the manufacture of finished products.◦ Construction _ Construction of buildings, roads,

bridges etc.◦ Manufacturing _ Conversion of raw material into final

goods.◦ Services _ Banking, consultancy, accountant, Lawyer,

Interior decorator, designer, music composer etc.

All those activities which start from the warehouse of the manufacturer to the buyer.

Trade◦ Trade means buying and selling

Aid to trade◦ Institutions that are meant and build to assist and support

the trading process.

Labor _ People working in an organization. Capital _ Amount invested by investor in the

business. Entrepreneurship _ Management ability of the

people who are running the business. Physical Resources _ Land, labor, building,

vehicles, machinery etc.

The Colonial Period  The Industrial Revolution  The Age of Industrial Entrepreneurs  The Production Era  The Marketing Era  The Relationship Era

The Colonial Period:Colonial society emphasized rural and agricultural

production.The economic focus of nation centred on rural areas

because prosperity depends on the output of farms plantations. The success or failure of crops and influenced every aspect of the economy.

Business operations moved from an emphasis on independent, skilled workers who specialized in building products one by one to a factory system that mass down produced items by bringing together large number of semiskilled workers. 

New innovations & creations

As Demand for manufactured goods continued to increase through 1920s, business focused even greater attention on the activities involved in producing those goods. 

Managers began to pay more attention to the markets for their goods and services and sales and advertising took on new importance

Businesses began to think of marketing as more than just selling; they envisioned a process of determining what consumers wanted and needed and then designing products to satisfy those needs. In short, they developed a consumer

The ways companies interact with customers Because it is much less expensive to serve

existing customers than to find new ones, businesses that develop long-term customer relationships can reduce their overall costs.

Long-term relationships with customers enable businesses to improve their understanding of what customers want and prefer from the company