PRESENTATION 1

What Is Business?

Business may be defined as an enterprise engaged in the production and distributi on of goods for sale in the market or rendering service at a price. Chief characteristics of the business

Creation of utilities: Business denotes creation of utility and service for satis faction of human wants. Business helps in the creation, distribution and product ion of utilities.

Recurring activities: Business activities are recurring in nature. Recurring purc hase and sales are regarded as identifying marks of the business.

Transfer of title: The goods produced or purchased by the business are made with the intention of sale or transfer of title from the seller to the buyer. Because of this reason goods acquired for the sake of personal consumption are excluded from business. Mutual benefit: Business activities are not one sided affairs because both the p arties are benefited. The buyer gets the benefit of having the goods and the sel ler gets the benefit of having money. Expectation of earning: Business provides a way of living to the businessman beca use he intends to earn profit. Objectives of Business

Business Objectives Business objectives are the stated, measurable targets of how to achieve business aims. For instance, we want to achieve sales of 10 million in European markets in 2012. A mission statement sets out the business vision and values that enables employee s, managers, customers and even suppliers to understand the underlying basis for the actions of the business. Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It also enables the busi

ness to measure the progress towards its stated aims.

The most effective business objectives meet the following criteria:

S Specific objectives are aimed at what the business does M - Measurable the business can put a value to the objective, e.g. 10,000 sales i n the next half year of trading. A - Agreed by all those concerned in trying to achieve the objective. R - Realistic the objective should be challenging, but it should also be able to be achieved by the resources available. T- Time specific they have a time limit of when the objective should be achieved, e.g. by the end of the year. A CASE FOR INDIA The genius Tata, on the findings of iron mines by P.N Bose in the Sakchi area, co uld conceive of establishing an iron and steel industry at the site which was no thing but a hilly forest. Jamshedpur is considered to be one of the finest sites for iron and steel industry in the world and is comparable only with Pittsburg of USA. Jamshedpur has all the necessary raw materials like iron ore, dolomite , limestone, manganese etc. as well as coal within one hundred miles and it is li nked with Calcutta(now Kolkata) port by railways with a distance of hardly 150 m iles. From the point of view of natural advantages, Bengal and Bihar are the sui table areas for iron and steel industry and so ,before Independence The Tata and iron steel industry was established in Bihar, and the Indian iron and steel com pany was established in Burnpur and Kulti in Bengal. These areas had the opportu nity of economic development with urbanization because of the steel plants. After independence, the govt. took, under its Industrial Policy, the responsibili ty of developing the basic industry of iron and steel. A policy for decentraliza tion of the industry was adopted and the remote areas of Bhillai in Madhya Prade sh and Rourkela in Orissa were selected. Apparently the choice was uneconomic be cause both the sites were away from coal mining areas, coal being the most impor tant material for the industry. However, the diseconomy was counteracted by sele cting Durgapur, once a waste land in Burdwan district of West Bengal as the thir d site, situated near the Ranigunj coal belt. Because of such selection of sites , we find today big industrial complex growing up in each of the three steel tow ns , Bhilai , Rourkela and Durgapur. Once Industry is set up, centers for other business activities like trade and transport automatically develop and that too at a faster rate. I. Economic Objectives

Business, as we know. is primarily an economic activity. (i) Profit earning The primary objective of business is to produce and sell goods for profit, of cou rse, through the satisfaction of human wants. A business which does not earn profit cannot stay in the market for a longer per iod. The income of enterprise, therefore, must exceed expenditure over a period of tim e. Profit is necessary for the enterprise to. insure its own survival, growth and e xpansion. A business enterprise should work for reasonable profit which should cover its ow n future risk. If the profit is made by over-charging customers, indulging in ma lpractices such as hoarding, black-marketing, smuggling, etc, it will be against the ethics of business. It will be regarded robbery and not a business activity .

(ii) Creating Markets Every business tries to create customers for its products and services. The more the customers are treated, the wider will be the market for the goods and large r the profit.

(iii) Technological Improvements The business, if it is to stay in, the market, must offset stagnation by using e fficient methods of production. The creation of new products, new designs and ap plication of new techniques of production contributes to growth, change and expa nsion in the economy. II. Social Objectives The social objectives of business are gaining more and more recognition with eac h passing year. The main social objectives of business are as follows:-

(i) Supply of standard quality of goods One of the social responsibilities of business is to produce goods of standard q uality. If the enterprise is producing inferior, substandard and adulterated goo ds, it will be doing disservice to the society.

(ii) Avoidance of anti-social practices It is not fair on the part of a business to indulge in anti-social practices suc h as hoarding, black marketing, smuggling, over charginq etc., to earn profit. A reasonable profit on a legitimate business is regarded a healthy sign

(iii) Provision of more employment. Business provides employment to the people. It thus helps in increasing the stan dard of living of the members of the society.

(iv) Cooperation with the government The business community should adopt a positive approach towards the policies of the government of the country. They should pay all taxes and dues in time to the gqvernment. All business activity should be carried within the legal frame work of the country.

(v) Use of national resources The business should use the national resources in the best interest of the count ry. Wastage should be reduced to the maximum. The motto should be more and more goods for more and more people at lower and lower prices. Ill. Human Objectives The business activity is carried on by the people (entrepreneurs) through the pe ople (employees) and for the people (customers). Human factor is thus an importa nt element in business. A business which overlooks the human factor cannot prosp er and ultimately suffers losses. The human objectives of business are that (1) the employees working in a business should be fairly rewarded (2) A healthy climate is created by providing opportunities to the employers for new skills and abilities (3) The employees should have say in the affairs which directly affect them.

(4) thinking of modern business must go well beyond material benefits of its empl oyees. It must reduce unpleasantness of work and plan for job satisfaction to th e workers IV. National Objectives

 Every business whether operating on small or large scale must have an obligation towards nation also. It should help in achieving national goals such as promoting social justice, increasing valued added goods for exports, finding out better and cheaper substitutes for imports and helping in increasing exports for building the foreign exchange reserves to meet the import bills

Business Environment Changing Intermediaries

Entrepreneurship vs.

Employment Opportunities For Entrepreneurs Matching Risk With Profit Revenue - Expense = Profit(Loss) Risk Factors of Production

Government Affects Business By Being: G A Customer GAn Overseer and Regulator G G A Tax Collector

Environments of Business Economic Technological Social Competitive Global Economic Environment $Freedom of ownership $Contract laws $Elimination of corruption $Tradable currency $Minimum taxes & regulation Technological Environment Internet E-commerce Role of Intermediaries ? Responsiveness to Customer Information Management

A Business and Its Stakeholders (Figure 1.4 ) Internet Impact Communications Access No Borders E-commerce Explosion Transaction costs Size of purchase per transaction

Integration Flexibility Catalog size Customer Interaction Competitive Environment Customer Service Customer Demands Speed Community/Stakeholder Needs Natural/Ecological Concern Social Environment Diversity/Multicultural Aging/Graying Two Income Families Single Parent Families Global Environment Quality Productivity Changes

PRESENTATION 2

What is Change?

Make or become different To alter Change is something that presses us out of our comfort zone. It is uncomfortable, bcoz changing from one state to the next upsets our control over outcomes.

No matter how adaptable you think you are, you must have seen at a least a few s ituations in your life where change scared you. Maybe it was changing homes. Maybe it was the change of school. No matter what changes youve undergone , we all know that dealing with them can b e frightening. Your business is no different

Abraham Lincoln Failed twice in business and was defeated in six state and national elections be fore being elected president of the United States. Theodor S. Geisel Was rejected by 23 publishers.

The 24th sold six million copies of the first Dr. Seuss book. One we hear a lot Its always been that way around here. Its tradition Why Change Fail? 1.Allow too much complacency 2.Unable to build a team 3.Underestimate the power of vision 4.Under communicate the vision 5.Permit obstacles to stand in the way 6.Fail to create short-term wins

7.Declare victory too soon 8.Fail to anchor new approaches

8 Steps to Major Change* Establish urgency Create a coalition Develop a vision & strategy Communicate the vision Empower broad-based action Generate short-term wins Consolidate gains & produce more Anchor new approaches #1 Establish Urgency What is our current reality? Got SWOT? Why is it important?

#2 Build a team focused on the vision Put together a group able to lead change effort Get the group to work like a team #3 Develop a Vision & Strategy Vision directs the effort Strategies are how youll get there Vision should Guide decision-making Prioritize action

#4 Communicate Change Vision Communicate constantly Your team must model the behavior #5 Empower action Get rid of obstacles Encourage risk-taking and creative ideas, activities & actions #6 Generate short-term wins Plan for visible improvements in performance, or wins Create those wins Visibly recognize & reward people who made wins possible #7 Consolidate Gains & Produce More Change Use small wins to go farther Recruitments impact #8 Anchor New Approaches Reinforce steps taken Articulate connections between new behaviors and success People know theyre appreciated Reality: They usually dont. Take a minute and say thank you. Provide an award Send flowers Make it personal Encourage, encourage, encourage Changing Intermediaries