BUSINESS

Business under  sec 2(13) of income tax act, includes any trade i.e. buying and selling of goods, any commerce providing services, any manufacture or production or selling of goods, or any adventure in the nature  of trade/ commerce/ manufacturing. With an intension to earn profit.                                                               

Business is not only profit, business is something which is:

• Managed by people.

• For long term growth & wealth maximisation & societal developments.

• Business has 3 views:                                                                                                                                                               

1.  Entity View: Any Entity, Company, Corporation which is created & managed by people.

2. Work View: State of being busy i.e. One’s regular occupation or profession.

3. Process View: An activity consisting of purchase, sale, manufacture & processing, marketing of goods & services.

BUSINESS ENVIRONMENT:-

Business environment conducts set of activities to achieve profit & growth by working & interacting with surrounding elements or environment.

Objectives of business:

1. Survival:  It is an obvious objective. An organisation adopts survival objective during initial stage of establishment or during facing general economic adversity. It represents the will and anxiety to remain in the business as long as possible.

2. Stability: Every business wants to be steady & firm long lasting. It means continuity of business. An organisation should achieve stability in terms of customer’s satisfaction. Stable3 organisations can easily handle changing dynamic of market.

3. Growth: Another important objective of business is to achieve growth. The growth should be in terms of increase in profit , revenue, capacity, number of employees & employee’s prosperity.

4. Efficiency: Business is often expresse3d in terms of percentage of profit to sales of volume, to capital employed, to market values of corporate shares and so on. Outside investors also equate profit with the degree of business efficiency and managerial competence and commit their funds in light of such equation and other related assessments.

5. Profitability:  This is a most important objective of a business. A businessman starts business to earn profit but by working under rules and regulations or by ethical practices. 

Business environment & its influences:-

Every business is surrounded by an environment such as technology, competition, economic conditions, supply & demand, laws, etc. Environment is a combination of various factors which are largely not under control of business. Business interact with these factors understand the threats & explore the opportunities from these surrounding factors. In general, We can say business take3 some inputs from environment and after the processing of these inputs, provides the outputs to environment.

BUSINESS PROCESSES:-

Business processes are simply set of activities that transform a set of inputs into set of outputs (goods or services). In todays competitive market place, the business processes needs to be improved to stay in the market. Now, customers have command over the market, and they are insisting on better quality products and services and companies are to improve their business processes in order to satisfy the customer need. Business process reengineering (BPR) is fundamental rethinking and radical redesigning of business processes to achieve dramatic changes in the processes. In terms of costs, time, performance, etc.

CONCLUSION-

Here, I conclude that company needs competence of managment to achieve specified goals and the key-points to justify the successful business or the successful business plan. The relantionship is to give and take relantionship between the two parties for eg- if organization receives something from environment it has to be payed back.