“We don`t promise miracles, we work hard by focusing on why we`re in business – to increase shareholder value.” – Zenith Electronics A company also faces the most amazing and difficult task of dealing with so many laws and regulations enacted by the government. Consumers, employees and various other stakeholders also influence the company. The two terms are “different.” They should not be used interchangeably. E-business is a broader term and includes e-commerce. E-business is a more detailed term. It covers all business transactions processed electronically, including those related to production, product development, finance and human resource management. (it) Customer satisfaction – The survival of the company depends on customer satisfaction. Therefore, the company must aim to attract and satisfy customers. Peter F. Drucker rightly said, “There is only one valid definition of business purpose, which is to create a customer.” Customers are created by advertising and sales promotion and give them “satisfaction”. The business plan should also include the owners` plans for the future growth of the business. As a business grows, it needs more space to allow for more production or accommodate more customers. Its size must be sufficient to achieve its production objectives or to accommodate all its customers.
Even if the owners initially run the business, they must develop plans for the future organizational structure. A job description for each employee should be included with the estimated salary to be paid to each employee. The lending institution evaluates the business plan to determine if the business is likely to succeed and therefore deserves a loan. A company may consider issuing shares only after achieving a reasonable performance for several years. The usefulness of the business plan is not limited to helping entrepreneurs raise funds to support the opening of the business. The plan is used as a guide for business decisions throughout the life of the company. Very often, the organic form of growth is painfully slow. Organizations try to achieve rapid growth by bringing mass to themselves by taking other organizations into similar companies or companies that potentially interest them. Mergers, acquisitions, mergers, corporate restructurings, acquisitions and corporate restructurings are some of the terms used to refer to this method of growth. While this has proven to be a method that allows an organization to grow faster, it must be ensured that it is done in a healthy way to ensure sustainable and profitable growth. Those who know how to motivate a diverse workforce.
Management across cultures, the emphasis on learning foreign languages are other characteristics of today`s company. The transition from tolerance to appreciation and the treatment of women and their strengths are the other challenges facing the company today. This scenario brought the company into different dimensions. 77. Put yourself in your competitor`s shoes. If you had to compete with your business, what would you do? Plan a counter-strategy based on your considerations. You need to get to know different cultures and traditions to succeed in the global market. Therefore, we can say that today`s business is completely different from the previous one and offers entrepreneurs many opportunities and challenges. 22. Be persistent, but not stupid – if what you`re trying doesn`t work; Get feedback and ideas from others. 1. Natural causes – These are beyond the control of humans.
Natural disasters such as floods, earthquakes, heavy rains, etc. can lead to significant losses. They result in serious losses of life, property and income in the economy. A recent survey by the Center for Entrepreneurial Leadership found that 69% of high school students were interested in starting their own business. Nevertheless, about 86% of the students felt that their business knowledge was very poor to fair. People need to learn how a business works before embarking on starting a business. The financial plan determines the means by which the business is financed. It also tries to show that starting the business is feasible. A major cause of the company`s expansion is the explosion of information provided by the various disciplines. Scientists from various fields such as psychology, sociology, cultural anthropology, mathematics, philosophy, statistics, political science, economics, logistics, computer science and various fields of engineering have taken an interest in the field of business and its various management theories at one time or another.
Over time, the SBA has added many programs, including one that provides management support to small businesses owned by women, minorities, and veterans of the armed forces. (vi) Prestige or reputation – If a company makes good profits, its reputation in the market will increase. Profitability is considered the performance index of those who run the company. Making reasonable profits year after year would improve the reputation of the company and its management. Does this person`s word coincide with his actions? This is something that needs to be carefully reviewed and monitored, especially if it affects your own livelihood and reputation. A dishonest business partner can cause you a lot of harm personally and professionally. Unfortunately, many family businesses learn this lesson in a very painful way. 1. Business risks arise from uncertainty – uncertainties mean a lack of knowledge about what will happen in the future. For example, changes in government policy, fluctuations in the demand and supply of products, etc.
create a risk to the economy because their outcome is not known in advance. (i) Incentive for entrepreneurs – Profit is an excellent incentive for an entrepreneur to start a business. It motivates entrepreneurs to effectively manage their business units. By making sufficient profits, they can maintain a decent standard of living by satisfying various needs. A company must perform many activities such as procurement, manufacturing, marketing, research and development, accounting, finance, human resource management. It is good to focus on a few key areas where it has strong skills and competencies, and outsource the rest of the non-core activities to the outsourcing company. This will help run the business more efficiently and effectively. Therefore, the business plan must be clear and convince others that the business will be profitable. If investors do not believe in the business plan, they will not be willing to invest funds in the company. If creditors do not believe in the plan, they will not make loans.
In this case, entrepreneurs only have to rely on their own resources, which may not be enough to support the business. Business is all around us and it is the driving force of modern life. But very few people understand its true nature and role in society. Studying business administration is essential to qualify for a career. .