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it gives a breif introduction to the business for the new comers in the commerce and business field hope they like it and help them .
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INTRODUCTION TO BUSINESS
Anum Shah Roll No#3367
WHAT IS BUSINESS?
WHAT IS BUSINESS
“An institution organized and operated to provide goods and services to the society under the incentive of private gain” (Wheeler)
WHAT IS BUSINESS
“A business embraces all those functions involved in the making, buying and transportation of goods” (Thomas Evelyn)
PROCESS OF ANY BUSINESS INPUT PROCESS OUTPUT
Factors Of Production
Land
Labor
Capital
Entrepreneurship
Information Resources
Distribution
Production
Inventory
Purchasing
Finance - Accounting
Marketing - Sales
Realization of Profits
Demand Satisfaction
Need Fulfillment
INPUT
All the factors of productions are the input of any business
Land Labor Capital Entrepreneurship
LAND:
“Stands for all natural resources which yield an income or which has exchange value .It represents those natural resources which are useful and scarce, actually or potentially”.
LABOR:
“Any exertion of mind or body undergone partly or wholly with a view to some good other than the
pleasure derived directly from the word is called labor”
:
DIVISION OF LABOR
Simple division of labor: division of society into major occupations e.g. carpenters, blacksmith, weavers, etc .it may be also called functional divisional of labor
Complex Division of Labor: split up into a number of processes and sub-processes and is carried out by a separate group of people
Territorial Division Of Labor
Kinds Of Labor
Physical Labor: Intellectual Labor: Presentation:
CAPITAL
“Capital refers to that part of a man’s wealth which is used in producing further
wealth or which yields an income”
CAPITAL
It is raised from the sole proprietor, partners or shareholders.
Shapes of Capital: plant , machinery ,tools , and accessories , stocks of raw material ,goods in process and fuel
ENTREPRENEURS
Entrepreneur is the innovator An entrepreneur is an individual who accepts
financial risks and undertakes new financial ventures.
INFORMATION
Information resource plays a vital role
ECONOMIC SYSTEM
ECONOMIC SYSTEM
All businesses work under certain economic system . The basic element s around which the business revolves is capital which is the pivotal factor in determining the type of economic system. every system is basically meant to provide, goods and services to the people at the right price. It allows to establish business organizations so that they produce goods and services demanded and needed by the consumers.
KINDS OF ECONOMIC SYSTEM
Capitalism Socialism Islamic Mixed economy
CAPITALISM
“The economic system allowing private ownership of all or most of the means of
productions and distribution(land, industrial, railways) with the main motivation of profit”
CAPITALISM
The economic system in which capital flows freely in the society and finds its way to production and distribution in the private sector with the minimum interference of the government
SOCIALISM
“socialism is an economic organization of society in which the material means of production are
owned by the whole community and operated by the organs representatives of, and responsible to, the community according to a general plan, all members of the community being entitled to
benefits from the results of such socialized planned production on the basis of equal rights”
(Dickenson)
MIXED ECONOMIC SYSTEM
“Mixed economic system is a system comprising of both capitalism and socialism
pattern” “In other words an economic system in which
few characteristics of capitalism and few of socialism are found is called mixed economy”
ISLAMIC ECONOMIC SYSTEM
“It is the system free from exploitation . It allows every person to earn his or her livelihood from legitimate sources and
discourages concentration of wealth and extravagance”
MARKET BASED ECONOMY
MARKET“Originally”, Says Jevons, “a market was a public place
in a town where provisions and other objects were exposed to sales”
“Economists understand by the term market not any
particular market place in which things are bought and sold but the whole of any region in which buyers
and sellers are in such free intercourse with one another that the price of the same goods tends to
equality easily and quickly”(Cournat French economist)
ESSENTIALS OF MARKET
A commodity which is dealt with The existence of buyer and seller A place, may be a certain region, a country Such intercourse between buyers and sellers
that one price should prevail for the same commodity at the same time
WHAT IS DEMAND?
“The various quantities of a given commodity or service which consumers would buy in one
market in a given period of time at various places, or at various incomes, or at various
prices of related goods”(Bober)
QUANTITY DEMANDEDPrice(thousand)
Quantity Demanded (kg)
10 5000
20 4000
30 3000
40 2000
50 1000
QUANTITY SUPPLIEDPrice(thousand)
Quantity supplied KG
10 1000
20 2000
30 3000
40 4000
50 5000
0
1000
2000
3000
4000
5000
6000
1 2 3 4 5
price
quantity demanded
PRICE DETERMINEDPrice(thousand)Quantity Demanded (kg)
Quantity supplied KG
10 5000 100020 4000 200030 3000 300040 2000 400050 1000 5000
0
1000
2000
3000
4000
5000
6000
1 2 3 4 5
Price(thousand)
QuantityDemanded (kg)
Quantitysupplied KG
MARKET BASED ECONOMY HISTORY
HISTORY
The Industrial Revolution Laissez-Faire and the Entrepreneurial Era The Production Era The Marketing Era The Global Era The Internet Era
THE FACTORY SYSTEM AND THE INDUSTRIAL REVOLUTION
The result of many fundamental, interrelated changes that transformed agricultural economies into industrial onesWidespread replacement of manual laborProductivity and technical efficiency grew dramaticallyEfficiency was also enhanced
LAISSEZ-FAIRE AND THE ENTREPRENEURIAL ERA
the government should not interfere in the economy business function without regulation according to its own “natural” laws
THE PRODUCTION ERA
Productivity emphasisMass productionCar manufaturing
THE MARKETING ERA
business must focus on identifying satisfying consumer wants in order to be profitable
THE GLOBAL ERA
Technological growth Global market Globally consumption Global production
THE INTERNET ERAHow does the growth of the Internet affect business?
1. The Internet will give a dramatic boost to trade in all sectors of the economy, especially services.
2. The Internet will serve to level the playing field, at least to some extent, between larger and smaller enterprises regardless of what products or services they sell.
3. The Internet also holds considerable potential as an effective and efficient networking mechanism among businesses.
INFLATION
INFLATION
“inflation is the pervasive and sustained rise in the aggregate level of prices measured by an index of the cost of various goods and services. Repetitive price increases erode the purchasing power of money and other financial assets with fixed values, creating serious economic distortions and uncertainty. ”
INFLATION
“The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling” “Inflation is a key indicator of a country and provides important insight on the state of the
economy and the sound macroeconomic policies that govern it”
A Bundle of MarksAfter World War I (1914-
1918), inflation in Germany was so high that millions of marks were required to buy even the most basic item. As a result, German money frequently had more value as kindling than as legal tender. Shown here, a German woman prepares to light her stove with a bundle of paper currency.
CAUSES OF INFLATION
Demand-pull inflation when aggregate demand exceeds existing
supplies forcing price increases and pulling up
wages, materials, and operating and financing costs
CAUSES OF INFLATION
Cost-push inflation when prices rise to cover total expenses
and preserve profit margins
EVALUATING ECONOMIES
EVALUATING ECONOMIES
Economic growth“Economic growth occurs whenever people take resources and rearrange them in ways
that make them more valuable. “
EVALUATING ECONOMIES
Full Employmentthe economic condition when everyone who wishes to work at the going wage-rate for their type of labor is employed
UNEMPLOYMENT“AN ECONOMIC CONDITION MARKED BY THE FACT THAT INDIVIDUALS ACTIVELY SEEKING JOBS REMAIN UN HIRED”
GROSS DOMESTIC PRODUCT
“The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and
government spending, plus the value of exports, minus the value
of imports”
GDP PER CAPITA An approximation of the value of goods produced per person in
the country, equal to the country's GDP divided by the total number of people in the country.
GDP of a country to which income from abroad remittances of nationals living outside and income
from foreign subsidiaries of local firms has
been added.
EVALUATING ECONOMIES
budget deficit occurs when an entity spends more money than it takes in.
The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period of time.
TYPES OF BUSINESS ORGANIZATION
TYPES OF BUSINESS ORGANIZATIONS
SoleProprietorship
SoleProprietorship
PartnershipPartnershipCorporationCorporation
SOLE PROPRIETORSHIP
SOLE PROPRIETORSHIP
“It is the business which is owned by a single owner who
is referred to as sole proprietor and enjoys benefits which other ownership cannot”
SOLE PROPRIETORSHIPAdvantages:› Freedom
› Privacy
› Succeed or fail alone
› Simple to form
› Low start-up costs
Disadvantages:› Unlimited liability
› Dissolves when owner dies
› Depends on resources of single individual
Unlimited LiabilityLegal principle holding owners responsible for paying off all debts of a business
PARTNERSHIPPARTNERSHIP
A General Partnership is constituted between individuals if they agree to enter into a general or particular business, to share the profits and losses together without fixing any limitations or conditions.
.
A Special or Limited Partnership is an agreement entered into to allow a special partner, whose name does not appear in that of the firm, to put in a limited amount of capital and to receive a corresponding share of the profits, and be held correspondingly responsible for the contracts of the firm, but only to the extent of the capital contributed by him, and no special partner can interfere in or transact firm business
PARTNERSHIPAdvantages:› New talent & money
stimulate growth
› Easier to borrow money
› Resources of more than one individual
› Relatively easy to form
› Partners are taxed as individuals
Disadvantages:› Partners share
unlimited liability
› Must file specific info about business & partners
› Dissolves when partner leaves or dies
› Difficult to transfer ownership
› Internal conflict
ALTERNATIVES TO GENERAL PARTNERSHIP
Limited Partnership
Type of partnership consisting of limited partners and an active or managing partner
Limited PartnerPartner who does not share in a firm’s management and is liable for its debts only to the limit of his or her investment
General Partner(Active Partner)
Partner who actively manages a firm and who has unlimited liability for its debts
“PARTNERSHIP LIABILITY”GENERAL PARTNERSHIPGENERAL PARTNERSHIP
Claims of CreditorsClaims of Creditors
General Partner’s General Partner’s Personal AssetsPersonal Assets
General Partner’s General Partner’s Personal AssetsPersonal Assets
Partnership’s AssetsPartnership’s Assets
“PARTNERSHIP LIABILITY”LIMITED PARTNERSHIPLIMITED PARTNERSHIP
Claims of CreditorsClaims of Creditors
General Partner’s General Partner’s Personal AssetsPersonal Assets
Partnership’s AssetsPartnership’s Assets Limited Partner’s Limited Partner’s Personal AssetsPersonal Assets
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CORPORATIONCORPORATION
Business that is legally considered an entity separate from its owners and is liable for its own debts; owners’ liability extends to the limits of their investments
CORPORATION
Corporations may: Sue & be sued Buy, hold, & sell property Make & sell products to customers Commit crimes & be tried & punished for them
CORPORATION
Advantages: Limited liability Continuity Easy to transfer
ownership Easy to raise
money
Disadvantages: Tender offer High start-up costs Charter required Double-taxation
TYPES OF CORPORATIONSClosely Held (Private) Corporation
Corporation whose stock is held by only a few people and is not available for sale to the general public
Publicly Held (Public) Corporation
Corporation whose stock is widely held and available for sale to the general public
S Corporation
Hybrid of a closely held corporation and a partnership; organized and operated like a corporation, but treated as a partnership for tax purposes
TYPES OF CORPORATIONSLimited Liability Corporation (LLC)
Hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability
Professional Corporation
Form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liability
Multinational or Transnational Corporation
Form of corporation spanning national boundaries
CREATING AND MANAGING A CORPORATION
Creating a Corporation
Corporate Governance
Special Issues in Corporate Ownership
CREATING A CORPORATION
Three basic steps: Consult an attorney Select a state in which to incorporate. File articles of incorporation and corporate
bylaws
CREATING A CORPORATIONArticles of Incorporation
Document detailing the corporate governance of a company, including its name and address, its purpose, and the amount of stock it intends to issue
Bylaws
Document detailing corporate rules and regulations, including election and responsibilities of directors and procedures for issuing new stock
CORPORATE GOVERNANCECorporate Governance
Roles of shareholders, directors, and other managers in corporate decision making
Stockholder (or Shareholder)
Owner of shares of stock in a corporation
Stock
Share of ownership in a corporation
STOCK OWNERSHIP & STOCKHOLDERS’ RIGHTS
Initial Public Offering ( IPO)First offer of shares in a closely held corporation to outside investors
Preferred StockGuarantees holders fixed dividends and priority claims over assets but no corporate voting rights
Common StockPays dividends and guarantees corporate voting rights, but offers last claims over assets
ProxyAuthorization granted by a shareholder for someone else to vote his or her shares
“CORPORATE GOVERNANCE HIERARCHY”
OfficersOfficers
Board of DirectorsBoard of Directors
StockholdersStockholders
Responsible for corporation’s overall performance
Set major policies, report to shareholders, legally responsible for corporate actions
Purchase ownership shares, and own the corporation
1-742-74
STRATEGIC ALLIANCE
An agreement between two or more individuals or entities stating that the involved parties will act in a certain way in order to achieve a common goal. Strategic alliances usually make sense when the parties involved have complementary strengths.
JOINT VENTUREJOINT VENTURE
A contractual agreement joining together two or more parties for the purpose
of executing a particular business undertaking. All parties agree
to share in the profits and losses of the enterprise.
SPECIAL ISSUES IN CORPORATE GOVERNANCE
Employee Stock Ownership Plan (ESOP)Arrangement in which a corporation holds its own stock in trust for its employees, who gradually receive ownership of the stock and control its voting rights
Institutional InvestorsLarge investors, such as mutual funds and pension funds, that purchase large blocks of corporate stock
CORPORATE OWNERSHIP
MERGERSMergers are business combination transactions
involving the combination of two or more companies into a single entity. Most state
laws require that mergers be approved by at least a majority of a company's shareholders if the merger will have a significant impact on either the acquiring or target company.
MERGERSHorizontal Merger
Merger involving firms in the same industryVertical Merger
Merger between firms that are customers and/or suppliers to one another
Conglomerate Merger Merger between firms in unrelated businesses
Takeover TacticsA takeover is considered friendly when the acquired company
DIVESTITURES & SPIN-OFFSDivestiture
Strategy whereby a firm sells one or more of its business units
Spin-OffStrategy of setting up one or more corporate units as new, independent corporations
SMALL BUSINESS AND ENTREPRENEURSHIP
Advantages of new ventures New blood New ideas Flexibility in the tenure
ENTREPRENEUR AND ITS CHARACTERISTICS
An entrepreneur is an individual who accepts financial risks and undertakes new financial
ventures.
CHARACTERISTICS:
Spontaneous creativity The ability and willingness to make decisions A generally risk-taking personality Courageous Hardworking Strong leadership
THREATS TO NEW SMALL BUSINESS
No expertise Lack of experience Lack of financial resources Less tenure of operating the business
LAUNCHING OPTIONS
Start up Buying an existing business franchising
START UP
Advantages: You are the boss You are not answerable to others
START UP
Disadvantages: Burden of work Less resources of credit Difficult to create an image
BUYING AN EXISTING BUSINESS
Buying a business that is currently running Steps and processes Personal priority Business opportunity Reviewing potential target Arrangement of financing Conduct due diligence
FRANCHISING
“Any arrangement in which the owner of trademark, trade name or copyright has licensed others to
use it and sell its goods or services “
ADVANTAGES OF FRANCHISING
Training and guidance Brand name appeal Proven track record Financial assistance
DISADVANTAGES OF FRANCHISING
Franchise fee Franchisor control Unfulfilled promise
IMPACT OF NEW BUSINESS ON THE ECONOMY
New employment opportunities New ideas New innovations
INTRAPRENEURS
“Individual within an organization who is allowed to operate as an entrepreneur.
Intrapreneurs can be senior managers in companies that have decided to introduce
internal competition where areas of the business are run as profit centers”
MINIPRENEURS
Are the individuals launching super small scale enterprises. Include micro business
HUMAN RESOURCE MANAGEMENT
“Set of organizational activities directed at attracting, developing, and maintaining an
effective workforce”
“Activities undertaken to attract ,develop and maintain an effective workforce within an
organization”
HRM CHALLENGES: MAJOR HURDLES Age factors
Environment factors Cultural factors
HUMAN RESOURCE PLANNING
assess future recruitment needs anticipate and possibly avoid redundancies formulate training programmes develop a promotion and career development
policy including succession planning keep staff costs to a minimum while
permitting salaries to be competitive assess future premises requirements.
HUMAN RESOURCE PLANNING
“The forecasting of human resources needs and thr projected matching of individuals with the expected job vacancies”
HUMAN RESOURCE PLANNING
JOB ANALYSISJob analysis may be defined as a methodical
process of collecting information on the functionally relevant aspects of a job. Job analysis tells the human resources personnel the time it
takes to complete relevant tasks
JOB ANALYSIS the tasks that are grouped together under a
single job position the ways to design or structure a job for
maximizing employee performance
the employee behavioral pattern associated with performance of the job
the traits and attributes of a proper candidate for the job
the ways the data can be used to develop human resource management
JOB DESCRIPTION
Job description: A job description gives an account of the work and duties associated with a particular job. It describes the way the job is performed currently. Most job descriptions contain the following information:the job name
summary description of the job a list of duties for the job a list of organizational responsibilities related
to the job
JOB SPECIFICATIONS
Job specifications define the characteristics of the activities associated with the job and
given in the job description. They describe the skill sets and qualifications that a candidate for the job should possess.
INTERNAL RECRUITING
Advantages of internal recruiting: Recruiting costs Motivation Familiarity
INTERNAL RECRUITING
Disadvantages of internal recruiting: Inbreeding EEO Criteria More training
INTERNAL RECRUITING
Potential Advantages easier to assess candidates since more
information is available less costly and quicker than an external
search promoted employee is already familiar with
organization policies, culture, etc.
signals to employees that career opportunities exist in organization
improve employee morale and organization loyalty
INTERNAL RECRUITING
Potential Disadvantages narrowing of thinking and stale ideas
(inbreeding) possible discontent of rejected applicants boss / subordinate relations can be
problematic
ripple effect difficult to do with rapid growth affirmative action goals may be more
difficult to achieve
EXTERNAL RECRUITING
Potential Advantages provides new ideas / fresh perspectives initiate a turnaround reduce expensive training by hiring
experienced employee
may be less upsetting to present organizational hierarchy
allows rapid growth increase diversity
RESOURCES OF EXTERNAL RECRUITMENT
Employment websites Govt and federal agencies Personal references Job fairs Trade associations
EXTERNAL RECRUITING
Potential Disadvantages takes longer and costs more little information about candidate’s ability to
fit with rest of organization destroys incentive of present employees to
strive for promotion
outsider takes time to become familiar with current systems
current organization members may fight new ideas
SELECTION: MAKING THE RIGHT CHOICE
APPLICATION
An application form is an effective method of gathering info about the applicant
INTERVIEW
Serves as a two way communication process that allows both the organization and
applicant to collect info that would otherwise be difficult to obtain
TYPES OF INTERVIEW
Structured interviewQuestions are written in advance UnstructuredNo prior questions are made
TESTS
“A written test desired to measure a particular attribute such as intelligence”
REFERENCES AND BACKGROUND
Reference and background are checked
ORIENTATION
orientation course: a course introducing a new situation or environment
Introduction to the employee is given
TRAINING
It is a learning process that involves the acquisition of knowledge, sharpening of
skills, concepts, rules, or changing of attitudes and behaviors to enhance the
performance of employees.
ON-THE-JOB TRAINING
On-the-job training (OJT) is one of the best training methods because it is planned,
organized, and conducted at the employee's worksite.
OFF-THE-JOB TRAINING
Employee training at a site away from the actual work environment. It often utilizes
lectures, case studies, role playing, simulation, etc. See also on the job
training.
COMPENSATION
something (such as money) given or received as payment or reparation (as for a service or
loss or injury)
SEPARATION: BREAKING UP IS HARD TO DO As termination or retirement of the emplyees
take place
MARKETING
“The process of planning and executing the conception, pricing, promotion and
distribution of ideas ,goods, services to create exchanges that satisfy individual and
organizational objective”
MARKETING OBJECTIVE
Marketing objectives are set out for the organization’s marketing program.
MARKETING MIX
The major marketing management decisions can be classified in one of the following four categories:
Product Price Place (distribution) Promotion
SUMMARY OF MARKETING MIX DECISIONS
Product Price Place Promotion
FunctionalityAppearanceQualityPackagingBrandWarrantyService/Support
List priceDiscountsAllowancesFinancingLeasing options
Channel membersChannel motivationMarket coverageLocationsLogisticsService levels
AdvertisingPersonal sellingPublic relationsMessageMediaBudget
PRODUCT LIFE CYCLE
A new product progresses through a sequence of stages from introduction to growth,
maturity, and decline. This sequence is known as the product life cycle and is
associated with changes in the marketing situation, thus impacting the marketing
strategy and the marketing mix.
PRODUCT LIFE CYCLE DIAGRAM
PRODUCT
Consumer goods Industry goods
CONSUMER GOODS
Convenience goods Shopping Specialty unsought
INDUSTRY GOODS
Purchase of merchandise Fixed asset purchase
PRICING
Through this a company receives reward against its product
More than the cost price Maximizing profit Minimizing loss
PROMOTION
“Communication techniques aimed at informing, persuading a customer to buy a particular product”
DISTRIBUTION
After promotion distribution of that product takes place proper channels are used for example wholesaler or retailer
MARKETING ENVIRONMENT
Cultural Social Legal political
MARKET SEGMENTATION
The division of a market into different homogeneous groups of consumers is known as market segmentation
Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate.
Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status.
Psychographic segmentation is based on variables such as values, attitudes, and lifestyle.
Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.
TARGET MARKET
A certain group of people who have a same taste of products and services
FACTORS INVOLVES IN TARGETING MARKET
Social Cultural Political Environmental
MARKETING RESEARCH
Managers need information in order to introduce products and services that create value in the mind of the customer. But the perception of value is a subjective one, and what customers value this year may be quite different from what they value next year. As such, the attributes that create value cannot simply be deduced from common knowledge.
Marketing Research vs. Market Research These terms often are used interchangeably,
but technically there is a difference.Market research deals specifically with the
gathering of information about a market's size and trends. Marketing research covers a wider range of activities. While it may involve market research, marketing research is a more general systematic process that can be applied to a variety of marketing problems
MARKETING PLAN OUTLINE
I. Executive Summary A high-level summary of the marketing plan. II. The Challenge Brief description of product to be marketed
and associated goals, such as sales figures and strategic goals.
III. Situation Analysis Company Analysis Goals Focus Culture Strengths Weaknesses Market share
Customer Analysis Number Type Value drivers Decision process Concentration of customer base for particular products Competitor Analysis Market position Strengths Weaknesses Market shares
Collaborators Subsidiaries, joint ventures, and distributors, etc. Climate Macro-environmental PEST analysis : Political and legal environment Economic environment Social and cultural environment Technological environment
IV. Market Segmentation Present a description of the market
segmentatiOnV. Alternative Marketing Strategies List and discuss the alternatives that were
considered before arriving at the recommended strategy. Alternatives might include discontinuing a product, re-branding, positioning as a premium or value product, etc
VI. Selected Marketing Strategy Discuss why the strategy was selected, then
the marketing mix decisions (4 P's) of product, price, place (distribution), and promotion
VII. Short & Long-Term Projections The selected strategy's immediate effects,
expected long-term results, and any special actions required to achieve them. This section may include forecasts of revenues and expenses as well as the results of a break-even analysis
VIII. Conclusion Summarize all of the above
CONSUMER BEHAVIOR
The action that a person takes in Purchasing and using product and services The mental and social processes that
proceed and follow these actions
INFLUENCES ON CONSUMER BEHAVIOR
Social Personal Psychological
MOTIVATIONMotivation is a desire to achieve a goal,
combined with the energy to work towards that goal. Students who are motivated have a desire to undertake their study and complete the requirements of their course.
THEORY X AND THEORY Y
Theory X Assumptions: People inherently dislike work People must be coerced or controlled to
do work to achieve objectives People prefer to be directed
Theory Y Assumptions: People view work as being as natural as
play and rest People will exercise self-direction and -
control towards achieving objectives they are committed to
People learn to accept and seek responsibility
TWO FACTOR THEORYMotivator factors increase job satisfaction: Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
Hygiene factors are those whose absence can create job dissatisfaction:
Supervision
Company policy
Working conditions
Salary
Peer relationship
Security
EQUITY THEORY Specific goals increase performance, and
difficult goals, when accepted, result in higher performance than easy goals.
An employee compares her/his job's inputs-outcomes ratio with that of referents.
If the employee perceives inequity, she/he will act to correct the inequity:
Lower productivity Reduced quality Increased absenteeism Voluntary resignation.
LEADERSHIP
Leadership is one of the most salient aspects of the organizational context.“The ability to influence people towards the
attainment of organizational goals”“Leadership is the ability to secure desirable actions from a group of followers voluntarily ,
with out use of coercion””
THEORIES
Trait thoery“Traits are the distinguished personal
characteristics of a leader , such as intelligence, value and appearance”
Behavioural theory
Situational Theories:• Focus on leadership in situations:different situations need differentkinds of leadership.• Leaders direct and a support.• Group competence and commitmentdetermines necessary skill mix.
Contingency Theories• Right leader’s style needs to be
matchedto the right setting.• Two major styles – Task motivated andrelationship motivated.• Three situation variables:– Leader-member relations– Task structure– Position power
Great Man Theories Based on the belief that leaders are exceptional people, born with innate qualities, destined to lead. The use of the term 'man' was intentional since until the latter part of the twentieth century leadership was thought of as a concept which is primarily male, military and Western. This led to the next school of Trait Theories
Situational Leadership This approach sees leadership as specific to the situation in which it is being exercised. For example, whilst some situations may require an autocratic style, others may need a more participative approach. It also proposes that there may be differences in required leadership styles at different levels in the same organisation
Transformational Theory The central concept here is change and the role of leadership in envisioning and implementing the transformation of organisational performance
Transactional Theory This approach emphasises the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of 'contract' through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers
Contingency Theory This is a refinement of the situational viewpoint and focuses on identifying the situational variables which best predict the most appropriate or effective leadership style to fit the particular circumstances
GLOBALIZATION
Name for the process of increasing the connectivity and interdependence of the
world's markets and businesses.
TRADING BLOCKS AND COUNTRY GROUPS
EUROPEAN UNIONAustria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdomhttp://www.europa.eu.int/index_en.htm
TRADING BLOCKS AND COUNTRY GROUPS
OPEC MEMBER COUNTRIESAustria, Australia, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, New Zealand, Netherlands, Norway, Poland, Portugal, Republic of Korea, Slovak Republic, Sweden, Switzerland, Turkey, United Kingdom, United States of Americahttp://www.opec.org/
TRADING BLOCKS AND COUNTRY GROUPS
SAARC MEMBER COUNTRIESBhutan, India, Maldives, Nepal, Pakistan, Sri Lanka http://www.saarc-sec.org/
TRADING BLOCKS AND COUNTRY GROUPS
NATO MEMBER COUNTRIESBelgium, Bulgaria, Czech Republic, Canada, Denmark, Estonia, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, uxembourg, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Turkey, United Kingdom, United States of America http://www.nato.int/
TRADING BLOCKS AND COUNTRY GROUPS
NAFTA MEMBER COUNTRIESCanada, Mexico, United States of Americahttp://www-tech.mit.edu/Bulletins/nafta.html
TRADING BLOCKS AND COUNTRY GROUPS
COMMONWEALTH OF INDEPENDENT STATES Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan http://www.cisstat.com/eng/index.htm
TRADING BLOCKS AND COUNTRY GROUPS
APEC MEMBER COUNTRIESAustralia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States of America, Vietnamhttp://www.apecsec.org.sg/
FDI
Foreign direct investment (FDI) in its classic form is defined as a company from one country making a physical investment into building a factory in another country. It is the establishment of an enterprise by a foreigner..Its definition can be extended to include investments made to acquire lasting interest in enterprises operating outside of the economy of the investor.
BARRIERS TO INTERNATIONAL TRADE
A trade barrier is a general term that describes any government policy or regulation that restricts international trade. The barriers can take many forms, including the following terms that include many restrictions in international trade within multiple countries that import and export any items of trade.
BARRIERS TO INTERNATIONAL TRADE
Import duty Import licenses Export licenses Import quotas Tariffs Subsidies Non-tariff barriers to trade Voluntary Export Restraints Local Content Requirements Embargo
EMBARGO
In international commerce and politics, an embargo is the prohibition of commerce (division of trade) and trade with a certain country, in order to isolate it and to put its government into a difficult internal situation, given that the effects of the embargo are often able to make its economy suffer from the initiative.
TAX, TARIFF AND TRADE
The tax, tariff and trade laws of a political region, state or trade bloc determine which form of consumption and production tend to be encouraged or discouraged. All three are often changed by a trade pact.
SUBSIDY
Financial aid given by the government to individuals or groups.
CARTEL
A cartel is a counterfeit agreement among industries. It is an informal organization of producers that agree to coordinate prices and production. Cartels usually occur in
an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products.