BBA(Online Programme) SDE, Bharathiar University, Coimbatore
BBA (Online Programme)
Core II –BASICS OF BUSINESS AND BUSINESS ENVIRONMENT
MODULE 1
BASICS OF BUSINESS
1.1 INTRODUCTION TO BUSINESS
A company or firm that participates in commercial, industrial, or professional activity is
referred to as a business. A business's main objective is to coordinate economic operations like
the production of goods and services. Different types of enterprises, whether for profit or not,
might exist depending on a number of different criteria. The kind of ownership—sole
proprietorship, partnership, corporation, etc.—also affects disparities. The primary goal of the
company is to make money off of the products or services it offers.
1.2 NATURE OF BUSINESS
The character of A firm can be structurally described using the word "business." The idea
is a combination of various business models. The purpose of a business, its legal form, its
offerings, etc. The nature of the business has an impact on a company's vision and mission
statement. The vision outlines the goals to be attained in the future, while the mission outlines the
general purpose of an organization. the elements that affect how a firm is structured.
1. Regular process
The business's operations should be ongoing or consistent. Consequently, a profit can be
made. It is not a business activity if the activity is not ongoing.
2. Economic Activity
Producing, manufacturing, purchasing, or selling goods or services in order to meet
consumer demands. To increase profit is the goal.
3. Creates Utility
The degree of satisfaction felt by the customer after using the product or service. It has four
different utility categories. They consist of:
Dr.A.Mahalakshmi,Assistant Professor of Management,
Basics of Business and Business Environment
, BBA(Online Programme) SDE, Bharathiar University, Coimbatore
i)Form Utility: It is the amount of value that a customer obtains from a specific good or
service in the way that they need. It includes providing a greater variety, a lower price, etc. for a
good or service.
ii)Time Utility: This kind of utility happens when a business offers products and services
in response to customer requests or needs. Organizations conduct analyses to increase the time
usefulness of their products and modify their production methods in order to increase profits.
iii)Place Utility: This is the act of making products or services accessible in places where
customers can do so quickly and easily. Increasing customer convenience when purchasing a
product is a crucial component in luring customers.Possession utility is the perceived worth or
usefulness a consumer derives from using a certain good or service. The idea is that consumers
should be able to use a particular commodity or service right away after making a purchase.
iv) Possession utility: It is the perceived worth or usefulness a consumer derives from using
a certain good or service. The idea is that consumers should be able to use a particular commodity
or service right away after making a purchase.
4. Capital Requirement
The first requirement of the firm is capital. The capital investment varies depending on the
nature and size of the business.
5. Deals in Goods and Services
It has to do with producing and providing products or services for sale. Every business, no
matter how big or little, sells products or services. Consumer products like bread, butter, pens,
etc., or capital commodities like machinery, a building, a plant, etc., can be included.
6. Risk
In business, uncertainty and risk are common. Risk is the likelihood that a commercial
enterprise would experience insufficient financial success as a result of market uncertainty.
7. Profit earning motive
Making money from a business is a businessman's primary goal. The main objectives of
all businesses are to maximize profit through commercial processes.
8. Satisfaction of consumer's Need
Every successful business is built on satisfying the needs and expectations of its customers.
Every company has a justification for why clients should choose to do business with them rather
than one of their rivals.
Dr.A.Mahalakshmi,Assistant Professor of Management,
Basics of Business and Business Environment
BBA (Online Programme)
Core II –BASICS OF BUSINESS AND BUSINESS ENVIRONMENT
MODULE 1
BASICS OF BUSINESS
1.1 INTRODUCTION TO BUSINESS
A company or firm that participates in commercial, industrial, or professional activity is
referred to as a business. A business's main objective is to coordinate economic operations like
the production of goods and services. Different types of enterprises, whether for profit or not,
might exist depending on a number of different criteria. The kind of ownership—sole
proprietorship, partnership, corporation, etc.—also affects disparities. The primary goal of the
company is to make money off of the products or services it offers.
1.2 NATURE OF BUSINESS
The character of A firm can be structurally described using the word "business." The idea
is a combination of various business models. The purpose of a business, its legal form, its
offerings, etc. The nature of the business has an impact on a company's vision and mission
statement. The vision outlines the goals to be attained in the future, while the mission outlines the
general purpose of an organization. the elements that affect how a firm is structured.
1. Regular process
The business's operations should be ongoing or consistent. Consequently, a profit can be
made. It is not a business activity if the activity is not ongoing.
2. Economic Activity
Producing, manufacturing, purchasing, or selling goods or services in order to meet
consumer demands. To increase profit is the goal.
3. Creates Utility
The degree of satisfaction felt by the customer after using the product or service. It has four
different utility categories. They consist of:
Dr.A.Mahalakshmi,Assistant Professor of Management,
Basics of Business and Business Environment
, BBA(Online Programme) SDE, Bharathiar University, Coimbatore
i)Form Utility: It is the amount of value that a customer obtains from a specific good or
service in the way that they need. It includes providing a greater variety, a lower price, etc. for a
good or service.
ii)Time Utility: This kind of utility happens when a business offers products and services
in response to customer requests or needs. Organizations conduct analyses to increase the time
usefulness of their products and modify their production methods in order to increase profits.
iii)Place Utility: This is the act of making products or services accessible in places where
customers can do so quickly and easily. Increasing customer convenience when purchasing a
product is a crucial component in luring customers.Possession utility is the perceived worth or
usefulness a consumer derives from using a certain good or service. The idea is that consumers
should be able to use a particular commodity or service right away after making a purchase.
iv) Possession utility: It is the perceived worth or usefulness a consumer derives from using
a certain good or service. The idea is that consumers should be able to use a particular commodity
or service right away after making a purchase.
4. Capital Requirement
The first requirement of the firm is capital. The capital investment varies depending on the
nature and size of the business.
5. Deals in Goods and Services
It has to do with producing and providing products or services for sale. Every business, no
matter how big or little, sells products or services. Consumer products like bread, butter, pens,
etc., or capital commodities like machinery, a building, a plant, etc., can be included.
6. Risk
In business, uncertainty and risk are common. Risk is the likelihood that a commercial
enterprise would experience insufficient financial success as a result of market uncertainty.
7. Profit earning motive
Making money from a business is a businessman's primary goal. The main objectives of
all businesses are to maximize profit through commercial processes.
8. Satisfaction of consumer's Need
Every successful business is built on satisfying the needs and expectations of its customers.
Every company has a justification for why clients should choose to do business with them rather
than one of their rivals.
Dr.A.Mahalakshmi,Assistant Professor of Management,
Basics of Business and Business Environment
