MGT211 Highlighted Handouts Set 2

INTRODUCTION TO BUSINESS (MGT211)

Table of Content

Lesson No.

Title / Topic

Page No.

Organizational Boundaries and Environments ...…………………………...... Business Organization & Sole Proprietorship …………………..…………... Partnership ……………………..………………………………………….. Joint Stock Company ……………………………..……………………….... Joint Stock Company (Continued) …………………………………………. What is Meeting? ..........................................................…………………………. Cooperative Society ……………………………………………………. …. Concept of Entrepreneurship ……………………………………………… Franchising …………..…………………..………………………… ……… Success and Failure of Business …………..………………………………… Foreign Trade and Foreign Business ………………………………………. Barriers to International Trade ……….………………. …………………… Stakeholder …………………………………..…………………………….. Setting goals and Formulating Strategy ……………………………………... Human Resource Planning …………...………………. …………………… Infrastructure for Test ……………………….……………………………... Compensation and Benefits ………………………………………………… Contemporary Motivational Theories ………………………………………. Two Factor Theory …………………………………………………………. Strategies for enhancing job satisfaction and morale …...……………………. Marketing ………...………………………………………………………… The Marketing Environment …..…………………………………………… The Marketing Mix ………………………………………………………… The Marketing Research …………………………………………………… Consumer Behavior and Marketing Research ……………………………… Product, Product types & step for product development …….…………….. Product Life Cycle, Branding, Packaging and Labeling …………………..… Pricing and Distribution Mix …………………………………….…………. Wholesaling, retailing & physical distribution............………………………... Promotion and advertisement..........………………………………………... Personal Selling………...…………………………………………………... Personal Selling (Continued).....……………………………………………. Sales Promotion ………….……………………………………………….. The Productivity ……………………….…… ……………………………. . Tools for Production Planning…..…………………………………………. Total Quality Management..…………………………………………………. Total Quality Management (Continued)…………………………………….. Benchmarking ……………...……………………………………………….. Communication …………………………………………………………….. Non-Verbal Communication Modes ……………………………………….. Application of Information System in the Organizations ………….……….. Accounting ………………..……………………………………………….. Tools of the Accounting Trade …………………………………………….. Financial Management ………………..……………………………………..

Lecture 1

CONCEPT OF BUSINESS

Literally, the word “business” means the state of being busy. Generally, the term business includes all human activities concerned with earning money. In other words, business is an activity in which various persons regularly produce or exchange goods and services for mutual gain or profit. The goods and services produced or purchased for personal use are not included in “business”.

DEFINITION

1.

According to L. H. Haney

“Business may be defined as human activities directed toward providing or acquiring wealth through buying and selling of goods.”

2. James Stephenson says that: “Every human activity which is engaged in for the sake of earning profit may be called business.”

3.

In the words of B. W. Wheeler

“An institution organized and operated to provide goods and services to the society, under the incentive of private gain” is business.

Structural Diagram · Business · Buying and · Selling · Buying and · Selling · Wealth · CHARACTERISTICS

Following are the essential characteristics of a good business:

1.

Capital

Capital is the lifeblood of every business. It is the most essential and important element of business. In case of deficiency, loans can be taken from various financial institutions.

2.

Creation of Utility

Utility is an economic term referring to that characteristic of a certain commodity, which can satisfy any human need. Business creates utility, which gives benefit to the entire society as well as the businessmen.

3.

Dealing in Goods and Services

Every business deals with sale, purchase, production and exchange of goods and services for some consideration.

4.

Employment

Business is a good source of employment for its owners as well as for other people, for example, employees, agents, transporters etc.

5.

Islamic Process

Business is an Islamic way of earning living. Income from business is known as profit, which is Rizq-e-Halal. The Holy Prophet Muhammad himself did prosperous business.

6.

Motive

The motive of business is to earn profit. Otherwise it will not be termed as business.

7.

Organization

Every business needs an organization for its successful working. A proper organization is helpful in the smooth running of business and achieving the objectives.

8.

Productions or Purchase of Goods

A businessman deals in production or purchase of goods. These goods are supplied to the people. So, it is necessary that more goods should be produced so that demand of people may be fulfilled.