MGT211 Short Notes by VUBuddy

MGT 211 Short Notes · Lecture 01 ·  Business:

Any activity to earn profit. The word “business” is derived from the term “busyness.”

 Entrepreneurship

A phenomenon in which a person searches for an opportunity and try to avail it.

 Components of business

Industry Commerce

 Industry

Conversion of raw material into finished goods. This is a form utility.

 Types of Industry · Primary · Industry

Extractive Industry _ Extraction of underground resources. Genetics _ People doing business by changing genes.

 Types of industries · Secondary · Industry

Construction _ Construction of buildings, roads, bridges etc. Manufacturing _ Conversion of raw material into final goods. Services _ Banking, consultancy, accountant, Lawyer, Interior decorator, designer, music composer etc.

 Commerce

All those activities which start from the warehouse of the manufacturer to the buyer.

 Types of commerce

Trade

Trade means buying and selling

Aid to trade Institutions that are meant and build to assist and support the trading process.

 Factors of production

Labor _ People working in an organization. Capital _ Amount invested by investor in the business. Entrepreneurship _ Management ability of the people who are running the business. Physical Resources _ Land, labor, building, vehicles, machinery etc.

 Economic System

A system for allocation of resources.

 Types of Economic Systems

Planned Economy Free market Economy

 Types of environmental forces

External Forces

Factors found outside an organization. These factors are not controllable by the organization.

Types of environmental forces

Internal Forces

Factors within the organization. These are controllable by the organization.

 SWOT Analysis

Strengths Weaknesses Opportunities Threats

Lecture 02

 External Factors

Economy of the country Per capita income of the country General employment or unemployment Economic Growth Exchange rate Inflation rate

 Demographic factors

Demographic factor is a study of population Population brings customers. Population tells the size of market and nature of customers.

Total Population

Population Distribution

Distribution on the basis of gender In Pakistan female population is further divided into two categories: Household Women Working Women

Population growth rate

The rate at which population of an area increases/decreases.

 Political and Legal factors

Political Factors

Preference and priorities of the Government Attitude of the Government towards Exports Government taxation policy

Legal factors

Laws related to Health Laws related to Imports and Exports Laws related to Taxation Laws related to Packing Laws related to Child Labor Laws related to Labor Union

 Technological Factors

Business people have to pace with the technological advancements.

 Socio cultural Factors

Religion

Followers of one religion have influence over the buying behavior of the society.

 Natural Factors

Act of God Natural factors are out of our control Business people will develop product considering natural resources

Lecture 03

 Sole Proprietorship:

Sole Proprietorship is that type of business which is owned by one person.

 Advantages of Sole Proprietorship

Freedom in formation The easiest to establish Individuals are allowed to decide without interference of any other person. Easier to transfer the ownership of the business People wholly solely enjoy the ownership of the business and profits Individual has unlimited opportunity to expand the size of the business Individual can keep the secrets of the business intact