SUBJECT COMMERCE-I

PROF. RUPALI JAIN 30th July 09’

BUSINESS

DEFINATION

Urwick and Hunt: "Business is any

enterprise which makes, distributes or provides

any article or service which other members of

the community need and are able and willing to

pay for.“

FEATURES

o Economic activityo Profit makingo Satisfaction of wantso Risk takingo Dealing in goods and serviceso Continuous activityo Innovative and dynamic in natureo Subsystem of the societyo Occupationo Legal control

BUSINESS OBJECTIVES

INTRODUCTION Every business unit is established in

order to attain certain well-defined objectives. Attainment of these objectives is the only way an organization can justify its setting-up and existence. It is very important that every business unit decides and pursues a set of well-defined business objectives.

DEFINATION McFarland: "Objectives are the

goals, aims or purposes that organization wish to achieve over varying period of time".

FEATURES

Multiplicity of objectives

Hierarchy of Objectives

Measurable

Different types

Flexible

WHY ARE BUSINESS OBJECTIVES NEEDED?

Flexible

Understandable

Realistic

Quantitative

Time-frame specific

IMPORTANCE OF BUSINESS OBJECTIVES

Framing rules,policies and procedures.

Helps in ascertaining the resource requirement.

Provides direction to the activities.

A set of well defined objectives enable a firm to assign duties to the employees

Provides the basic for measuring and evaluating employee performance

Help the managers in taking rational decisions.

Universal application. Justifies the very existence of a company.

ECONOMIC & SOCIAL OBJECTIVES

ECONOMIC OBJECTIVE Profit earning Creation of customers Regular innovations Best possible use of resources

SOCIAL OBJECTIVES Production and supply of quality goods

and services Adoption of fair trade practices Contribution to the general welfare of

the society

HUMAN & NATIONAL OBJECTIVEHUMAN OBJECTIVE

Economic well being of the employees

Social and psychological satisfaction of employees

Development of human resources

Well being of socially and economically backward

people

NATIONAL OBJECTIVE

Creation of employment

Promotion of social justice

Production according to national priority

Contribute to the revenue of the country

Self-sufficiency and Export Promotion

GLOBAL OBJECTIVES

Raise general standard of living Reduce disparities among nations

Make available globally competitive goods and services

Here are some examples of objectives of MNC’s

To establish, maintain, conduct, provide services of every kind including commercial,statistical, financial, legal, management, data processing

. To carry on the business

in all types of electronic components and equipment from every aspects.

To deal in any type of articles & things which may seem capable of being profitably.

To provide for the welfare of employees or ex-employees of the Company.

To carry on all kinds of promotion business. To construct and develop residential or

industrial colonies for advancement of members & employees