What is the Objectives of Business?

Answer:Objectives of Business – Meaning:

An objective is something you want to achieve. As a learner of NIOS, you may have many

Objectives in mind; one could be to perform well in the examination. Similarly,business objectives are something which a business organization wants to achieve or accomplish over a specified period of time. These may be to earn profit for its growth and development, to provide quality goods to its customers, to protect the environment etc.

These are the objectives of business. In the following section let us classify the objectives of business.

Classification of Objectives of Business:

It is generally believed that a business has a single objective, that is, to make profit. But it cannot be the only objective of business. However, any business unit cannot ignore the interests of its employees, customers, the community, as well as the interests of society as a whole.For instance, no business can prosper in the long run unless fair wages are paid to the employees and customer satisfaction is given due importance. Again a business unit can prosper only if it enjoys the support and goodwill of people in general. Business objectives also need to be aimed at contributing to national goals and aspirations as well as towards international well-being. Thus, the objectives of business may be classified as –

What are The Determining Factors the Size of a Business Unit ?

Answer:

“Whether the scale of production is small, medium or large, the size of a business unit depends mostly on the availability of finances, managerial ability, marketing possibilities and efficiency expectancy.”

It is never easy as to decide about the size of an upcoming unit. One has to see the relation of the size of a particular business with efficiency as well as see whether that particular size fits well in that particular social structure or not. All these questions need to be studied before deciding about the size of a business unit. The size of the business unit refers to the scale of its operations.

Whether the scale of production is small, medium or large, it depends mostly upon the availability of finances, managerial ability, marketing possibilities and efficiency expectancy. A concern may be started at the moderate scale in the beginning and it may be expanded later on.

What is the Optimum Size of a Business?

Answer:

“Technical factors operate in favor of an increasing size. In order to realize full advantage of technology, improvements in the scale of operations should be large. ”

The size of a business unit is primarily dependent on the technique of production employed in any business. Technical factors operate in favor of an increasing size. In order to realize full advantage of technology, improvements in the scale of operations should be large.

If you want to reduce the production costs, you must opt for the full functional capacity of a business unit. The increase in the production spreads the overhead expenses over large units resulting in lower cost per unit.

The optimum use of technical factors can be achieved through two processes namely by division of labor and by integration of processes. The small firms cannot afford to invest huge sums in sophisticated machines.

Scale of business.

Answer:

The size of a business unit is a relative term. Very often it seems to be a great problem in deciding which is the optimum size of a particular type of business. It is not very easy to select a suitable standard and standards to measure the size of any units. Sometimes, the nature of output or the nature of the industry is taken to measure the size of a unit. Volume of output is however also used as the indication of the size when the product is homogenous .But there emerges a number of problem in industries like cotton textile, Jute etc. Which produce a wide verity of products? Here volume of output fails to reflect the differences in the size of the industrial units. Although there are different yardsticks in view of a number of products, there are some common factors which deserve consideration these maybe stated as follows:

01. Volume of Output:

An industrial unit maybe termed as big or small considering the volume of outputs per day. But this is the point which is applicable only when products are homogeneous.

02. Capital Investment:

This is the most important point which may be taken into consideration for measuring Size of the business unit .the more the capital investment .the bigger is the size of the business unit.

03. Number of wage earners employed :

The number of wage earners employed is taken as the yardstick of measuring the size of some business unit.

04. Use and consumption of power :

Lick number of workers employed in a business enterprise. The use of power is another factor that deserves discussion. One can also compare the size of the competing units by way comparing the amount of power consumption.

05. Value of product:

The value of product is sometimes taken as the measuring rod of a business unit. Although the factors as discussed earlier are not less important in this connection.

Why we study business

Answer:

A Business School degree gives you skills that will enable you to succeed in any situation in any area of your life is an investment in your future, and the journey really is a lot of fun!

To get a top job at a great company or workplace, chances are you are going to need a university degree. It proves you know a bit in your chosen field, that you can commit yourself, can manage your time and are qualified to do the job.

Find out more about studying business in an undergraduate degree at the Business School including career opportunities, skills and our programs.

Business and commerce relates to the buying and selling of goods, services and information - important exchanges in almost any area of life! As the world becomes more dependent on globalized trade and investment, though, the demand for well-trained businesspeople grows stronger.

Business is not all business though – at The University of Auckland Business School you can choose to study the business elements in a wide range of fields, from finance to marketing to information systems and you can combine your business studies with other areas of interest to you, such as engineering, law, arts and psychology.

What skills will I learn?

What are The Features of Business ?

Answer:

Features of Business:

The Features of Business are given below.

1. Exchange of goods and services:

All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.

2. Deals in numerous transactions:

 In business, the exchange of goods and services is a regular feature. A businessman regularly deals in   a number of transactions and not just one or two transactions.

3. Profit is the main Objective:

The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman.

4. Business skills for economic success:

Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business

How an Organization adopted to its environment?

Answer:

The organisms do not adopt do their environment. The environment select which is adoptable do their conditions though natural selection .Some organizations have some characters better than others, this gave to this organisms advantage to get food or to reproduction So this organisms increase their number in population. The better characters so passes to next generation and now the organisms to live in the environment.

Acclimation is an adaption that allows efficient use of a habitat those changes. Moving to different attitudes brings about alternations in oxygen carrying capacity. This ability to new circumstances by shifting physical limits always organisms to survive in a range of situations in their habitat. There are genes that are only activated by extremes. Human and organisms have neat shock that are only Expressed or expressed differently during times of heat stress .Heat shock proteins bind to other proteins so they do they not denature and stop functioning .under normal temperature these heat shock proteins would not be useful but in rare cases help the organisms survive .however the family of heat shock proteins also includes these that works and normal temperature as well as those that are induced by temperature changes.

   Over many generations  organisms as part of a population adapted by acquiring genetic urinations pools of alleles  for many traits .allele pools or allele  urinations means there are  multiple slightly different  versions of the genes in a population .this way some part of the population is suited to the current habitat .this is how populations having different pools of alleles .

Cold acclimatization can be animal hibernation or plant dormancy .The plants have adapted to seasons by evolving distinct traits to handle winter differently from summer.

ENVIRONMENTOF BUSINESS .

Answer:

Introduction to Business Environment:

The formula for business success requires two elements - the individual and the environment. Remove either value and success becomes impossible. Business environment consist of all those factors that have a bearing on the business. The term business environment implies those external forces, factors and institutions that are beyond the control of individual business organizations and their management and affect the business enterprise.  Business environment influence the functioning of the business system. Thus, business environment may be defined as all those conditions and forces which are external to the business and are beyond the individual business unit, but it operates within it. These forces are customer, creditors, competitors, government, sociology-cultural organizations, political parties national and international organizations etc. some of those forces affect the business directly which some others have indirect effect on the business.

TYPES OF ENVIRONMENT:

On the basis of the extent of intimacy with the firm , the environmental factors may be classified into different types-internal and external.

                                                                i.                        INTERNAL ENVIRONMENT:

The internal environment is the environment that has a direct impact on the business.Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment.

The important internal factors which have a bearing on the strategy and other decisions of internal organization are discussed below.

01. Value system:

The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organization, business policies and practices.

02.Mission and vision and objectives:

Vision means the ability to think about the future with imagination and wisdom. Vision is an important factor in achieving the objectives of the organization. The mission is the medium through which the objectives are achieved.

 

03. Management structure and nature:

The structure of the organization also influences the business decisions. The organizational structure like the composition of board of directors, in fluencesthe decisions of business as they are internal factors. The structure and style of the organization may delay a decision making or some other helps in making quick decisions.

04. Internal power relationships:

The relationship among the three levels of the organization also influences on the business. The mutual co-ordination among those three is an important need for a business.

05. Human resource:

The human resource is the important factor for any organization as it contributes to the strength and weakness of any organization. The involvement and initiative of the people in an organization at different levels may vary from organization to organization. The organizational culture and overall environment have bearing on them.

06. Company image and brand equity:

The image of the company in the outside market has the impact on the internal environment of the company. It helps in raising the finance, making joint ventures, other alliances, expansions and acquisitions, entering sale and purchase contracts, launching new products, etc. Brand equity also helps the company in some way.

 

07. Miscellaneous factors:

The other factors that contribute to the business success or failure are as follows:

•Marketing resources: - Resources like the organization for marketing, quality of the marketing men, brand equity and distribution network have direct bearing on marketing efficiency of the company.

•Financial factors:- factors like financial policies . financial positions and capital structure are also important internal environment affecting business performances ,strategies and decisions.

                                                            ii.                        EXTERNAL ENVIRONMENT:

The factors are uncontrollable by the business. There are two types of external environment.

01. Micro Environment:

The micro environment is also known as the task environment and operating environment because the micro environmental forces have a direct bearing on the operations of the firm.

 

“The micro environment consists of the actors in the company’s immediate environments that affect the performance of the company. These include the suppliers, marketing intermediaries, competitors, customers and the public”.

02. Suppliers:

An important force in the micro environment of a company is the suppliers, i.e., those who supply the inputs like raw materials and components to the company.

03. Customer:

The major task of a business is to create and sustain customers. A business exists only because of its customers. The choice of customer segments should be made by considering a number of factors including the relative profitability, dependability, and stability of demand, growth prospects and the extent of competition.

04. Marketing Intermediaries:

The marketing intermediaries include middlemen such as agents and merchants that help the company find customers or close sales with them. The marketing intermediaries are vital links between the company and the final consumers.

05. Financiers:

The financiers are also important factors of internal environment. Along with financing capabilities of the company their policies and strategies, attitudes towards risk , ability to provide non-financial assistance etc. are very important.

06. Public:

Public can be said as any group that has an actual or potential interest in or on an organization’s ability to achieve its interest. Public include media and citizens. Growth of consumer public is an important development affecting business.

07. Macro Environment:

Macro environment is also known as General environment and remote environment. Macro factors are generally more uncontrollable than micro environment factors. Some of the macro environment factors are discussed below:

A) Economic Environment:

Economic environment refers to the aggregate of the nature of economic system of the country, business cycles, the socio-economic infrastructure etc.

B) Social Environment:

The social dimension or environment of a nation determines the value system of the society which, in turn affects the functioning of the business. Sociological factors such as costs structure, customs and conventions, mobility of labor etc. have far-reaching impact on the business. These factors determine the work culture and mobility oflabor, work groups etc.

C) Political Environment:

The political environment of a country is influenced by the political organizations such as philosophy of political parties, ideology of government or party in power, nature and extent of bureaucracy influence of primary groups etc. The political environment of the country influences the business to a great extent.

D) Legal Environment:

Legal environment includes flexibility and adaptability of law and other legal rules governing the business. It may include the exact rulings and decision of the courts. These affect the business and its managers to a great extent.

E) Technical Environment:

 The business in a country is greatly influenced by the technological development. The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. Technological environment influences the business in terms of investment in technology, consistent application of technology and the effects of technology on markets.