BCOC-132 BUSINESS ORGANISATION AND MANAGEMENT UNIT-1 INTRODUCTION TO BUSINESS IMPORTANT NOTES

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BCOC-132 BUSINESS ORGANISATION AND MANAGEMENT UNIT-1 INTRODUCTION TO BUSINESS IMPORTANT NOTES

HUMAN ACTIVITY:-all activities in which we participate from morning till night are called human activities

Human activities are two categories 1. Economic activity 2.Non-economic activity

  1. Economic activity:-it refers to the production distribution, and consumption of goods

    and services within economy. It includes all the actions and transactions that

    contribute to the overall economic output of a region or a country

  2. Non-economic activity:-those activities that do not involve the production,

    distribution, or consumption of goods and services for monetary gain, these activity

    do not contribute directly to the economy

Eg:-charitable activity, household activity, voluntary skilling

SECTORS OF ECONOMIC ACTIVITY:-

  • Primary:-it involves the extraction of raw materials from the earth, such as

    agriculture, forestry, fishing, mining

  • Secondary sector :- it involves the process of raw materials into finished goods. This

    sector includes manufacturing and construction

  • Tertiary sector:- also known as service sector, it in volves providing services to

    consumers and business, examples include retail, education, healthcare, entertainment

    .WE CAN FURTHER CLASSIFY THESE ECONOMIC ACTIVITIES INTO THREE GROUPS 1. Business2.Profession3.Employment

    1. Business:-it refers to organization or individuals engaged in commercial ,industrial or professional activities with the aim of earning profit, it typically involves the production, purchase or sale of goods and services in order to meet the needs of customer.

    The essential features of business:-
    ▪ Profit motive:- the primary goal of most business is earn a profit

  • ▪  Risk and uncertainty:- business activities involve risk, as outcomes are uncertain and

    influenced by various factor such as market changes and competition.

  • ▪  Exchange of goods and services:- business engage in the production, sale or exchange

    of goods and services to meet the needs and wants of consumers

  • ▪  Continuity and regularity:- business are typically ongoing and operate with a degree

    of continuity and regularity over time.

    OBJECTIVES OF BUSINESS:- the primary objective of business is to generate profit by meeting the needs and wants of costumers through the production, sale or provision of goods and services . it categorised as economic, human, social

    1. Economic objective:- ▪ Profitability

    ▪ Revenue growth ▪ Cost efficiency
    ▪ Market share

2.Human objective
▪ Employee satisfaction
▪ Employee development
▪ Workplace diversity and inclusion ▪ Health and safety

3. Social objective
▪ Corporate Social Responsibility (CRS) ▪ Ethical business practices
▪ Sustainable practices

EMPLOYMENT:-It refers to the state of being engaged in paid work or holding a job in which an individual performs tasks , services or duties for an employer. It is a mutual agreement between employer and employee, where the employee provides labor or services in exchange for compensation , which may include wages, salary, or other benefits. Employment can takes various forms, including full-time part- time, temporary or contract position.

Types of employment:-
a) Full time employment b) Part-time employment c) Casual employment
d) Contract employment e) Seasonal employment f) Internship


PROFESSION:- A profession is a vocation or occupation that involves specialized education, training, and expertise in a particular field. It often requires formal qualifications such as degrees or certification and practitioners are expected to apply their specialised knowledge to serve the needs of client, customer or public. Examples medicine, law, engineering , teaching, accounting etc.


INDUSTRY:-
It is a category of business or economic activities that share common characteristics in terms of the products or serviced they produce. Industries are typically defined by the type of goods or services they provide and the activities involved in their production. Examples manufacturing, finance, technology, healthcare, agriculture,
CLASSIFICATION OF INDUSTRY:

1. On the basis of nature of activity

  • ▪  Extractive industry:- it involves extraction or removal of natural resources from

    the earth. Eg: mining, quarrying etc.

  • ▪  Genetic industry:- it concerned with reproducing and multiplying plants and

    animals with objective of earn profit. Eg: nurseries , poultry farm etc.

  • ▪  Manufacturing industry:-it involves the production of tangible goods on a large

    scale through the use of machines, labor, chemical or biological processing. Eg:-

    cement industry, sugar industry, cotton textile industry etc.

  • ▪  Construction industry:-these industry are engaged in the construction activities

like the construction of building, bridge, dams etc.

COMMERCE:-it refers to the exchange of goods and services, typically on large scale, between business or entities. It related to various activities buying and selling of goods and services.
Commerce activities into two categories

1. Trade. 2. Aids to trade

  1. Trade :- the buying and selling of goods and services either domestically or internationally

    1) Internal trade:-it refers buying and selling of goods ad services within the borders of the country

    a) Wholesale trade:-buying and selling relatively large quantity

    b) Retail trade:-buying and selling relatively smaller quantity

  2. External trade:-(foreign trade)buying and selling of goods and services across the

    boundaries of the country
    a) Import trade:- when a country buying goods from another country
    b) Export trade:- when country sells goods to another country
    c) Re-export trade:-when goods imported from one country and the same are

    exported to another country


AIDS TO TRADE:-It refers to various services, facilities, and resources the facilitate and support the smooth conduct of trade activities , it helps to overcome obstacles such as hindrance of time, place, knowledge, etc.

1) Transportation :- facilitate movement of goods from producers to customer , road, rail, ports, airports etc.

2) Warehousing:-storage facilities and warehousing services help to good efficiently

3) Advertising:-promotion activities, advertising, and marketing strategies help business to reach their target audience.

4) Banking:- access to financial services, credit and banking facilities support the financial aspects of trade

5) Insurance:- trade involves risk, and insurance services provide coverage for potential losses due to factors like theft, damage etc.

MICRO, SMALL AND MEDIUM ENTERPRISES:-
MSNEs are categories of business based on their size. Often defined by factors such as the number of employees, annual turnover or total assets.

  1. 1)  Micro enterprises:- typically smallest category , it has very small number of employees and their financial metrics, turnover or asset are the lowest scale, in many cases it operated by single individual or few people

  2. 2)  Small enterprise:-it larger than micro enterprises. But relatively small number of employees and turnover or asset compared to large business

  3. 3)  Medium sized enterprises:- it between small and large enterprises in terms of number of employees and turnover ,and assets


Benefits of MSME:-
▪ Easily available of loan
▪ Law interest overdraft
▪ Concession electricity
▪ Rebate in taxes (under the MSMED Act , 2006)

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