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‡ A commercial activity engaged in as a

means of livelihood or profit, or an entity
which engages in such activities.

‡ Business relates to the state of being

busy either as an individual or society as a
whole, doing commercially viable and
profitable work
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‡



  A sole proprietorship is a business

owned by one person. The owner may operate on his or
her own or may employ others. The owner of the
business has total and unlimited personal liability of the
debts incurred by the business.

‡ 


  A partnership is a form of business in

which two or more people operate for the common goal
of making profit. Each partner has total and unlimited
personal liability of the debts incurred by the partnership.
There are three typical classifications of partnerships:
general partnerships, limited partnerships, and limited
liability partnerships.
‡ v


  A business corporation is a for-profit,
limited liability entity that has a separate legal personality
from its members. A corporation is owned by multiple
shareholders and is overseen by a board of directors,
which hires the business's managerial staff. In addition
to privately-owned corporate models, there are state-
owned corporate models.

‡ v 

 Often referred to as a "co-op business" or

"co-op", a cooperative is a for-profit, limited liability entity
that differs from a corporation in that it has members, as
opposed to shareholders, who share decision-making
authority. Cooperatives are typically classified as either
consumer cooperatives or worker cooperatives.
Cooperatives are fundamental to the ideology of
economic democracy.



‡ No business runs in a vacuum.

‡ It needs to interact with the conditions /

aspects affecting and influencing the
same.

‡ The environment can be of two types ±

Internal and external
The internal environment comprises of

‡ culture
‡ Mission and objectives
‡ Top management structure
‡ The power structure
‡ Company¶s image / brand value
‡ Human resources
The external environment can be ±local / national
or international.

The immediate affecting environment is the micro

environment which is formed by

‡ companies suppliers
‡ customers
‡ competitors
‡ workforce
‡ working climate
‡ Financiers
‡ regulatory agencies.
But any business is affected by many other
environmental factors which are known as the
macro components ; these are ±
‡ economic environment
‡ political environment
‡ Natural environment
‡ Demographic environment
‡ International environment
‡ Legal environment
‡ Social and cultural environment
‡ Financial environment
‡ Technological environment
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‡ E-business
‡ The world is getting inter connected.
‡ Global market is the new local market; throwing
in a lot of more avenues.
‡ It is creating a change in the approach / strategy
as firms can do away with sales departments
etc.
‡ E commerce is a very interesting concept
because no actual / physical money transfer
happens.
‡ The back bone of e commerce is a very
sophisticated technology.
Types
± Business to consumer ²direct sales between
company and customer using technology
such as internet.
± Business to business ± between business to
business patners.
Objectives
‡ Getting more customers
‡ Better customer services
‡ Business development
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‡ Broadening of reach ( more customer base)
‡ No geographical boundaries
‡ Can operate 24 hours ; 365 days a year
‡ money
‡ Better management controls
‡ Better responsive system
‡ Centrally maintained date / info accessible to
any person seeking an answer to any thing
regarding the product or the organization.
‡ Customers can trace goods on line
‡ Companies can do customer profiling
‡ Data analysis becomes very easy.
‡ Removal of middlemen.





‡ To run a business a manager /
organization should be able and capable
of analyzing the environmental variables .
‡ The eye to identify interaction results
among environmental factors is very
crucial.
‡ Environmental Scanning forms basis of
the corporate planning .
 Environmental
Supports a turn Supports an aggressive
Opportunities
around strategy
Strategy

Internal Business Internal

Weakness Analysis Strengths

Supports a diversification
Supports defensive strategy strategy

Environmental
Threats

  





‡
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of an organization in context to its
environment.
‡ 
 ( Environment / Threat and opportunities)
‡  

( Quick / Environmental Scanning
techniques)
‡ 

( Politics / Economic / Social /
Technological)

‡ These help an organization to make Strategic

decisions