Human Activities
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Transcript of Human Activities
Human Activities Economic1. Profession2. Employment 3. Business Non Economic
Characteristics of Business
Importance of Business Improves standard of living Provides opportunities to work and earn livelihood Improves national image by producing and
exporting quality goods of international standard Better return to investors on their capital
investment Promotes social interest by providing tourist
services, sponsoring cultural programme Facilitates exchange of culture among people of
different nations Help in development of science and technology
Types of Business Activities
Growth and Development of Indian Trade and Commerce
Ancient Period Medieval Period Modern Period
Contribution of India to the world of Business The Numerical and Decimal System Joint Hindu Family Business System Division of Labour Hundis Emphasis on quality
Objectives of Business Economic Objectives Social Objectives Human Objectives National Objectives Global Objectives
Economic Objectives Profit earningA business enterprise is established for earning some income. It is the hope
of earning profits that inspires people to start business. Profit is essential for the survival of every business unit. Profits enable a businessman to stay in business by main taining intact the wealth producing capacity of its resources.
Creation of customersA business man can earn profits only when there are enough customers to
buy and pay for his goods and services. No business can succeed without providing customers value for their money. Business exists to satisfy the wants, tastes and preferences of customers.
Regular innovations Business can be successful only when it creates new designs, better machines, improved techniques, new varieties, etc. Modern science and technology have created a great scope for innovation in the business world. Firms develop new technology, introduce new designs and new tools and processes to minimise costs and to satisfy ever increasing wants of customers. In order to create customers business has to explore new markets and attract more cus tomers. It has also to retain old customers by providing better services to them.
Social ObjectivesBusiness is a part of society. It cannot survive and grow without the support of
society. Business must therefore discharge social responsibilities in addi tion to earning profits.
Production and supply of goods and services Goods and services should be of good quality and these should be supplied at reasonable prices. It is also the social obligation of business to avoid malpractices like boarding, Black marketing and misleading advertising.
Fair Remuneration to employees - Employees must be given fair compensation for their work. In addition to wages and salary a reasonable part of profits should be distrib uted among employees in recognition of their contributions. Such sharing of profits will help to increase the motivation and efficiency of employees.
Contribution to the general welfare of the society Business should provide support to social, cultural and religious organisations. Business enterprises can build schools, colleges, libraries, dharam shalas, hospitals, sports bodies and research institutions. They can help non-government organisations (NGOs) like CRY, Help Age, and others which render services to weaker sections of society
Economic well being of the employees Social and psychological satisfaction of
employees Development of Human Resources Well being of socially and economically
backward people
Some More..
National Objectives Creation of employment Promotion of social justice Production according to national priority Contribution to the revenue of the
country Export promotion
Global Objectives Raise general standard of living Reduce disparities among nations Make available globally competitive
goods and services
Indian companies – Fortune 500 8 Indian companies have made it to Fortune
500 list in 2010. These are: Indian Oil Corporation Reliance Industries Tata Steel Tata MotorsBharat PetroleumHindustan PetroleumState Bank of IndiaONGC
Rank CompanyRevenues
($ millions)Profits
($ millions)
1 Wal-Mart Stores 408214 14335
2 Royal Dutch Shell 285129 12518
3 Exxon Mobil 284650 19280
4 BP 246138 16578
5 Toyota Motor 204106 2256
6Japan Post Holdings
202196 4849
7 Sinopec 187518 5756
8 State Grid 184496 -343
9 AXA 175257 5012
10China National
Petroleum (CNPC)
165496 10272
What do you mean by Business Environment???
The environment of any organization is “ the aggregate of all conditions, events and influences that surround and affect it.”Characteristics of Business Environment: Complex Dynamic Multi-faceted Far- reaching impact
Why Study Business Environment Development of broad strategies to ensure
sustainability
To foresee the impact of socio-economic changes at the national and international levels on firm’s ability
Analysis of competitor’s strategies and formulation of effective counter measures
To keep oneself dynamic
Significance of Business Environment Help to understand internal
environment Help to understand Economic System Help to understand economic policy Help to understand market conditions
Environment of Business
Internal Environment
Refers to all the factors that are within an
organization which impart strengths or cause
weaknesses of strategic nature.
Controllable factors. These include:
Value system
Mission and Objectives
Management Structure and Nature
Components of Internal Environment Human Resources
Company Image and Brand Equity
Other Factors
Physical Assets and Facilities
R & D and Technological Capabilities
Marketing Resources
Financial Resources
Types of External EnvironmentExternal Environment
Micro environmentMacro environment
Economic Non Economic
External Environment Includes all factors outside the organization
which provide opportunities or pose threats to the organization
Uncontrollable factors
Consists of Micro and Macro environment
Micro Environment
“It consists of the factors in the company’s immediate environment that affect the performance of the company”.
Micro Environment Factors
SuppliersCustomersMarketing IntermediariesCompetitors Workers and Unions Financers
Micro Environment of a typical car manufacturer
ComponentsSupplier
Customers
Car DealersCompetitors
Stakeholders
CarManufacturer
PotentialSupplier
PotentialCustomers
Customers
PressureGroups
ForSupplies
ForCustomers
PotentialDealers
Government
LocalCommunities
Macro EnvironmentIt comprises general trends and forces that may not immediately affect the organization but sooner or later will alter the way organization operates.
Macro Environment :- Economic Non Economic
Economic Environment Economic stages that exists at a given time in a
country Economic system that is adopted by a country for
example. Capitalistic, Socialistic or Mixed Economy Economic planning, such as five year plans, budgets,
etc. Economic policies for example, monetary, industrial
and fiscal policies Economic Indices such as National Income, Per Capita
Income, Disposable Income, Rate of growth of GNP, Distribution of Income, Rate of savings, Balance of Payments etc.
Economic Problems Functioning of economy
Non Economic Environment
Socio- Cultural Environment
Demographic Environment
Technological Environment
Political Environment
Non- Economic Environment Cultural Environment
Social Customs & Rituals and practices
Lifestyle patterns
Family structure
Role & position of men, women, children and aged in family & society
Non- Economic Environment Demographic Environment
Growth of population
Age Composition
Life Expectancy
Inter-state migration
Macro Environment
Technological Environment
Sources of technology
Technological development
Impact of technology Foreign technological collaboration are popular in India but
subject to strict commitment regarding impact on local technological development etc.
Political Environment
Political parties in power
Political Philosophy
Macro Environment Regulatory Environment
Constitutional framework
Policies relating to pricing and foreign investment
Policies related to the public sector, SSIs, development of backward areas and control of environmental pollution
International/Global Environment
Important factors that operate at global level which have an impact on organization are:
Growth of world economy
International institutions IMF,WTO ILO
Economic relations between nations
Global human resource-nature and quality of skills, mobility of labor
Global technology and quality standards
Global demographic patterns
Overview of Business Environment
MACRO ENVIRONMENT
ECONOMIC Environment
MICRO ENVIRONMENT
BUSINESS
Internal Environment
Values, Mission & Objectives.
Human Resources,Co. Image & Brand Equity
TECHNOLOGICAL FACTORS
MARKETING INTERMEDIARIES
DEMOGRAPHIC FACTORS
SOCIAL CULTURAL FACTORS
Non - Economic Environment
Thank You