MGT211

Introduction to Business
Lecture 01
DEFINITION

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