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Scopes Of Business BUSINESS ENVIRONMENT PRESENTATION
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Page 1: Scopes of businuess

Scopes Of BusinessBUSINESS ENVIRONMENT

PRESENTATION

Page 2: Scopes of businuess

Business

Industry

Manufacturing

Process

Assembly

ConstructionGenetic ServiceExtractive

Commerce

Aids To Trade

Warehousing

Transport

Salesmanship

Advertising

Tele-Communication

Insurance

Banking

Trade

Foreign/External/International/

Trade

Re-export/Entreport

Export

Import

Domestic/Home/Inland/National

Trade

WholesaleTrade

RetailTrade

Page 3: Scopes of businuess

Business Business is a combination of industry and commerce Industry concentrates on the manufacturing aspects

whereas commerce focuses on the trading aspect.

“Business is a human activity directed towards producing or acquiring wealth through buying and

selling activities.” -L. H. Haney

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Industry Industry is a collection of firms engaged in

the same product line. Industry focuses on the manufacturing

aspect. Industry is classified into five sub-types.

Page 5: Scopes of businuess

1. Manufacturing Industry:

The manufacturing industry is involved in manufacturing activities. It is engaged in converting taw materials, which are mainly products of extractive industry, into finished goods.

The output of manufacturing industry may be consumer goods or producer goods.

Consumer goods can be directly consumed by the end users (E.g. Biscuits, Bread, etc.) whereas producer goods (E.g. Cement, Steel, etc.) are used by the industries and not directly by end users.

Manufacturing activities may be undertaken using different forms depending upon the nature of the product.

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a)Process Type:In a process type of manufacturing activity the raw materials are introduced initially in the first process. The output of the firs process becomes the input for the second process and so on. This goes process goes on until the finished product is produced as an output in the last process. E.g.: Manufacturing of oil from oil seeds, textile from cotton, sugar from sugarcane, etc.

b)Assembly Type:In a assembly type of manufacturing activity various parts are assembled (joined) together in order to create a new product. E.g.: Computer, Automobile, etc.

Page 7: Scopes of businuess

2. Extractive Industry:

The extractive industry is engaged in extracting natural resources which is freely available in the nature.

E.g.: Agriculture, Fishing, Mining, Quarrying, etc.

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3. Genetic Industry:

The genetic industry deals with multiplication of plants, animals, livestock and birds for the purpose of business activities.

E.g.: Poultry farming, goat rearing, pig rearing, nurseries of plants, etc.

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4. Service Industry:

The service industry is engaged in providing services.

The output of service industry is intangible. It cannot be seen but it can be experienced. All aids to trade can be classified under service

industry. E.g.: Banking, Insurance, Warehousing, Transport, etc.

Page 10: Scopes of businuess

5. Construction Industry:

The construction industry is engaged in construction business.

The output of construction industry is tangible, fixed, erected at one place and it is immovable.

E.g.: Construction projects such as dams, buildings, bridges, skywalk, sub-way, metro railway, laying of railway lines, etc.

Page 11: Scopes of businuess

Commerce Commerce is that

component of business which is concerned with trade and aids to trade.

Commerce can be further classified into groups.

Page 12: Scopes of businuess

1.Trade: Trade is the exchange of the products from the seller to the

buyer. A minimum of two parties are required in order to trade to

take place. Trade can be within the local areas, within the national

boundaries or beyond the national boundaries.

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a) Domestic/National/Home/Inland Trade:

The trade that takes place within the national boundaries of a country is termed as domestic

trade.

i. Wholesale Trade:

The trade that involves dealing in large quantities of goods it is termed as wholesale trade.

ii. Retail Trade:

The trade that involves dealing in small quantity of goods it is termed as retail trade.

Page 14: Scopes of businuess

b)Foreign/External/International Trade:

The trade that takes place beyond the national boundaries of a country is termed as foreign trade.

i. Export trade:

• In export trade a seller from one nation sells goods to a buyer in another nation.

ii. Import trade:

• In import trade goods are being bought by a buyer in one nation from a seller in another nation.

iii. Re-export or Entrepot Trade:

• In re-export trade ,the goods which are imported from one country is exported in the same form to another country.

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2. Aids To Trade:

Aids to trade are the help and ancillary services provided to trade.

Aids to trade are the services provided for the smooth functioning of the trade as well as industrial activities.

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a) Banking:• A bank is an institution which borrows money from the

depositors at a lower rate of interest with an objective to lend it at a higher rate of interest.

b) Insurance:• Business activity comprises of risks and uncertainties.• All insurable risks can be insured by the business firms with

the insurance companies.• In the event of that event occurring the business firm will

be compensated for their claims.

c) Tele-communication:• For the success of any business activity timely

communication is most vital.• Modern tele-communication devices facilitates

communication without any barriers of time or distance.

Page 17: Scopes of businuess

d) Transport:• Transport creates place utility.• Transport moves the goods from the place of surplus to the place of scarcity.

d) Warehousing:• Warehousing creates time utility.• Warehousing stores the goods and preserves its quality till it is actually delivered to the customers.

e) Advertising:• Advertising is any paid form of non-personal presentation and

promotion of ideas, goods and services by the identified sponsor.• Advertising helps in creating and building powerful brand images

in the minds of targeted audience.

f) Salesmanship:• Salesmanship involves personal, one-to-one sales conversation

which aims at including the prospect to purchase the product.

Page 18: Scopes of businuess

Made By:Ashjad Musliyar - 16Rahul Bhanushali - 4

Aasma Ansari - 2Usha Vanapally - 31Lomesh Patel - 18Khan Salman - 12

Page 19: Scopes of businuess

Thank You!