Business Overview

INDEXTypes Of Business

− Service

− Manufacturing

− Trade

Industrial Sectors− Engineering Industry

− Process Industry

− Textile Industry

− Chemical Industry

− It Industry

− Agro Industry

Globalization

Business

Definition:

Business is an economic activity involving the regular production or distribution of goods and services with the objective of earning profits through the satisfaction of human wants.

Types of business:1. Service

2. Manufacturing

3. Trade

Service

Service industry is the major type of business running in India.

Examples – entertainment, consultancy, banking, telecommunication, call centres, KPO, etc.

Service is different from manufacturing and trading of goods.

Manufacturing

In manufacturing, the items are produced using raw materials with the help of different engineering process and technologies.

Other business depend on manufacturing. Hence it is very important.

Example- machines, automobiles, stationary, etc.

Trade

These enterprises are concerned with the distribution of products i.e. sale of products , distribution, transfer, exchange of goods to business houses as well as consumers.

Trading enterprises may be found operating in form of a) Wholesale

b) Retail

c) Import and export

d) Investment trusts, etc.

INDUSTRIAL SECTORS

Types Of Industrial Sector

1. Trade

2. Automobile

3. Cement

4. Chemicals

5. Pharmaceuticals

6. Engineering goods

7. Jute

8. Iron and steel

9. Village industries

10. Petrochemical

11. Rubber & leather products

12. Small scale industries

13. Sugar

14. Tea

15. Textile

16. Agro based

17. Food based

18. Handicrafts, etc.

Engineering Industry

Engineering industry mainly deals with:a) Design

b) Manufacture

c) Operations of structures, machines, or devices.

This industry primarily includes sectors like:1. Civil

2. Computer and IT

3. Industrial

4. Electrical

5. Mechanical

6. Chemical

Process Industry

The process industries do different processes on the raw material to produce the final product.

The process could be either continuous or occur on a batch of materials.

Examples:1. Wood and wooden products

2. Chemicals

3. Paper

4. Textile

5. Coal

6. Rubber

7. Plastics, etc.

Textile Industry

Textile industry deals with design and manufacturing of clothing products.

Indian textile industries are one of the leading in the world.

It includes following sectors:1. Cotton

2. Jute

3. Sericulture

4. Wool and woollen

5. Man made fibre/ filament yarn

Textile Industry

Advantages:

1. Great capacity of production

2. Availability of cheap and skilled labour

3. Because of large production there is great demand in domestic market

4. Massive capacity to export textile products

Disadvantages:

1. Increase in global competition

2. Poor supply

3. Sector is unorganized

Chemical Industry

This industry includes wholesale distributors of chemicals and allied products.

Chemical industry products include acids, industrial and heavy chemicals, dyestuffs, industrial salts, rosin and turpentine.

Examples- TATA chemicals, Reliance Chemicals, Cipla, Pidilite, etc.

Agro Industry

It deals with supply, processing and distribution of farm products.

It also includes post harvest activities like large-scale production, processing and packaging of food etc.

Top agro industries are ABT industries, Rassi seeds, National Agro Industry etc.

IT Industry

Information technology (IT) industry in India has played a key role in putting India on the global map. IT industry in India has been one of the most significant growth contributors for the Indian economy.

Major IT companies are:1. Infosys

2. Accenture

3. Cognizant

4. CMC

5. Wipro

6. Oracle, etc.

GLOBALIZATION

Introduction

• Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture.

• Globalization has allowed companies to increase their base of operations.

• It has supported companies to expand their workspace with relatively small investments and provide novel services to a wide range of consumers.

Impact of GlobalizationPositive Impact

• A better economy – it introduces rapid development of the capital market

• The new scientific research patterns are all results of globalization.

• Living standards are risen.

• Globalization introduces better trade. This is because more people are employed. This increases productivity.

• Apart from economical aspect, globalization has also brought an impact on political and cultural domain.

• Culturally speaking, globalization has brought in different ideologies, and thought process amongst people.

• Politically speaking, onset of western democratic system has an impact on politics.

Negative Impact

• Along with positive impact, there is negative too. Globalization brings fear as well. Because of too much flow of capital amongst countries, it introduces unfair and immoral distribution of income.

• Another fear is loosing national integrity. Because of too much exchange of trade, money etc independent domestic policies are lost.

• Mental pressure on companies that causes many people to loose their jobs.

Advantages of Globalization:

• Resources of different countries are used for producing goods and services they are able to do most efficiently.

• Consumers to get much wider variety of products to choose from.

• Consumers get the product they want at more competitive prices.

• Companies are able to procure input goods and services required at most competitive prices.

• Companies get get access to much wider markets

• It promotes understanding and goodwill among different countries.

• Businesses and investors get much wider opportunities for investment.

• Adverse impact of fluctuations in agricultural productions in one area can be reduced by pooling of production of different areas.

Disadvantages of Globalization:

• Developed countries can stifle development of undeveloped and under-developed countries.

• Economic depression in one country can trigger adverse reaction across the globe.

• It can increase spread of communicable diseases.

• Companies face much greater competition. This can put smaller companies, at a disadvantage as they do not have resources to compete at global scale.