Chapter No.

01
Overview of Business

Business:An organization or enterprising entity engaged in commercial, industrial or professional

activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a nonprofit organization engaged in business activities, such as an agricultural cooperative. Any
commercial, industrial or professional activity undertaken by an individual or a group.
A business, also known as an enterprise or a firm, is an organization involved in
the trade of goods, services,
or
both
to consumers.
Businesses
are
prevalent
in capitalist economies, where most of them are privately owned and provide goods and services
to customers for profit. Businesses may also be not-for-profit or state-owned. A business owned
by multiple individuals may be referred to as a company.
Businesses include everything from a small owner-operated company such as a family
restaurant, to a multinational conglomerate such as General Electric. To "do business" with
another company, a business must engage in some kind of transaction or exchange of value with
that company. In this sense, the word "business" can be used to refer to a specific industry or
activity, such as the "real estate business" or the "advertising business".

Types of Business:Business is mainly classified as,

Service type of Business
Manufacturing type of Business
Trade type of Business

Service type of Business:-

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A service business provides customers a service rather then a product for a set price. A
service business can include beauty shops and car body shops. These businesses charge for their
services rather than a physical item. A service business is a business enterprise which derives the
majority of its income from the delivery of services, as opposed to the sale of a particular
product.

Manufacturing type of Business:Manufacturing business is a business venture, which deals with the process of
converting raw materials in to finished products through the manufacturing process. Managing a
manufacturing business includes predicting the demand, supply of raw materials and ensuring
quality of products.

Trade type of Business:Trading companies are businesses working with different kinds of products which
are sold for consumer, business or government purposes. Trading companies buy a specialized
range of products, maintain a stock or a shop, and deliver products to customers.
Different kinds of practical conditions make for many kinds of business. Usually two
kinds of businesses are defined in trading. Importers or wholesalers maintain a stock and deliver
products to shops or large end customers. They work in a large geographical area, while their
customers, the shops, work in smaller areas and often in just a small neighbourhood.

Industrial Sectors:The industrial sector is any and all companies, corporations, and organizations that work
with the extraction, refining, and production or creation, of any product. For instance, if a
company works with factories and farmers, they are part of the industrial sector. The goods
producing sector of the economy. They use raw material to produce goods and sell them to the
consumers at a profit. Example of the industrial sectors includes the manufacturing sector,
agricultural sector, and the construction sector.
An energy-consuming sector that consists of all facilities and equipment used for
producing, processing, or assembling goods. The industrial sector encompasses the following
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types of activity: manufacturing; agriculture, forestry, fishing and hunting; mining, including oil
and gas extraction; and construction. Overall energy use in this sector is largely for process heat
and cooling and powering machinery, with lesser amounts used for facility heating, air
conditioning, and lighting. Fossil fuels are also used as raw material inputs to manufactured
products.

Engineering Industry:Industrial engineering is a branch of engineering that concerns with the

development, improvement, implementation and evaluation of integrated systems. Some of these
systems are people, knowledge, money, information and energy.
In general, industrial engineering is concerned with the design of production and
service systems. The industrial engineer analyzes and specifies integrated components of people,
machines, materials, and facilities to create efficient and effective systems that produce goods
and services beneficial to mankind. Industrial engineers are the bridge between management
goals and operational performance. They are expected to exert leadership in workplace education
as well as analysis, design and implementation of systems and plans for operating those systems
that bring value to the organization. Industrial engineers identify opportunities for improvement
with equipment, materials, methods, layouts, and they develop plans.

Process Industry:The process industries are those industries where the primary production
processes are either continuous, or occur on a batch of materials that is indistinguishable. Process
manufacturing is the branch of manufacturing that is associated with formulas and manufacturing
recipes, and can be contrasted with discrete manufacturing, which is concerned with bills of
material and routing.
Examples of the process industries include food, beverages, chemicals, pharmaceuticals,
petroleum, ceramics, base metals, coal, plastics, rubber, textiles, tobacco, wood and wood
products, paper and paper products, etc.
The simplest and easiest way to grasp the definition of process manufacturing is to
recognize that, once an output is produced by this process, it cannot be distilled back to its basic
components. In other words, "once you put it together, you cannot take it apart". A can of soda
cannot be returned to its basic components such as carbonated water, citric acid, potassium
benzoate, aspartame, and other ingredients. Juice cannot be put back into an orange. A plastic
card manufactured cannot be returned to its basic components like PVR sheets, transparent
sheets. A car or computer, on the other hand, can be disassembled and its components, to a large
extent, returned to stock.
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 Textile Industry:The textile industry includes every business involved in growing or producing fibres,
such as sheep farmers and cotton growers, those who make the fibre into thread; those who make
the thread into cloth; and those who dye, bleach and finish the cloth. The textile industry also
includes chemical companies that make synthetic fibres and all the resultant products. Then there
are the wholesalers and retailers of all these textiles, and the products that are made from them.
The textile industry or apparel industry is primarily concerned with the
production of yarn, and cloth and the subsequent design or manufacture of clothing and their
distribution. The raw material may be natural, or synthetic using products of the chemical
industry.

Chemical Industry:The chemical industry comprises the companies that produce industrial chemicals. The
chemical industry is a central part of modern business and manufacturing. It produces a massive
range of different substances that are used in almost all fields, from commercial sales to
medicine. Chemical companies use raw materials such as oil, water, metals, and natural gases to
produce thousands of different chemicals that are used all across the globe. Rubber and plastic
make up a huge part of the chemical industry, which actually consumes a significant part of its
own output.
There are many different processes and technologies involved in the chemical industry, as
companies must take many steps to convert raw materials into usable chemicals. They often must
process and refine the raw materials to get them into a pure form. Great precision is needed; if
even a small amount of the material is not entirely pure, the final product could be ruined.
Measurement, then, is an extraordinarily important aspect of the industry. Finally, different
substances and materials are usually put through chemical reactions that yield the desired end
results.

Agro Industry:Industry dealing with the supply, processing and distribution of farm products. Agrobased industries are those industries which depend on agricultural products as raw materials. Ex:
cotton textile industries use cotton as raw material and then process them. The Agriculture
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Industry encircles a variety of procedures wherein natural resources give rise to a number of
products.

Globalization:Globalization means the integration of national economies into the international economy
through trade, foreign direct investment, capital flows, migration, and the spread of technology.
Globalization is the "process of enabling financial investment markets to operate internationally,
largely as a result of deregulation and improved communications".

Benefits of Globalization: By buying products from other nations customers are offered a much wider choice
of goods and services.
Creates competition for local firms and thus keeps costs down.
Globalization promotes specialization. Countries can begin to specialize in those
products they are best at making.
Economic Interdependence among different nations can build improved political
and social links.

Drawbacks of Globalization: Cheap imports from developing nations could lead to unemployment in developed
countries where the cost of production is high.
Choosing to specialize in certain products may lead to unemployment in other
sectors which are not prioritized.
Increased competition for infant industry.
Dumping of goods by certain countries at below cost price may harm industries
in order countries.

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 Intellectual property Rights (IPR):Intellectual Property (IP) refers to the creations of the human minds for which exclusive
rights are recognized. Innovators, artistes and business owners are granted certain exclusive
rights to a variety of intangible assets for a specified duration. Intellectual property (IP) is a legal
concept which refers to creations of the mind for which exclusive rights are recognized. Under
intellectual property law, owners are granted certain exclusive rights to a variety of intangible
assets, such as musical, literary, and artistic works; discoveries and inventions; and words,
phrases, symbols, and designs. Although many of the legal principles governing intellectual
property rights have evolved over centuries, it was not until the 19th century that the term
intellectual property began to be used, and not until the late 20th century that it became
commonplace in the majority of the world.

Types of IPR:Common types of intellectual property rights include,

Patents
Copyright
Industrial design rights
Trademarks
Trade dress
Trade secrets

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