Quadrant II – Transcript and Related Materials
Programme: Bachelor of Commerce (Second Year)
Subject: Commerce
Paper Code: COG 121
Paper Title: Business Environment
Unit: I
Module Name: Contemporary characteristics of Modern business and
meaning of Business Environment.
Module No: 02
Name of the Presenter: Ms. Kalashri Shripad Lotlikar
Transcript of video:
CONTEMPORARY CHARACTERISTICS OF MODERN BUSINESS
[Link] of the Business
Size of the business is one of the most important characteristics of modern business.
Bulk production and marketing plays important role in business.
Bulk production is possible only by producing more goods with the existing
infrastructure available to us.
Machines have replaced the manual labour thereby adding to the speed in
production activity.
A distribution channel sees that the commodity reaches ultimate consumer quickly.
2. Diversification
Diversification is needed everywhere.
No businessman would like to stick to one field of activity.
Eg. Godrej Company has units producing soaps and detergents, furniture, etc.
Similarly now days we find introduction of different brands of goods in the same
product line is seen. Philips Company is one example where they have introduced
various types of bulbs, tube lights, etc., into the market.
3. Technological advancement
Business is characterized by increasing use of technology.
Technological advancement has resulted into change in fashion and taste of
consumers.
Few examples that explain how things have changed over years have taken place
can be like we find a ballpoint pens have been replaced by ink pens, typewriters have
taken over laptops, we find more of Self-service stores in place of small retailer
outlets.
In order to survive in this competitive world It is the responsibility of modern
business has to see that they equip themselves with the changes taking place in the
market .
4. Liberalisation
Liberalisation has led towards advancement in the field of transportation,
warehousing, communication, and marketing techniques etc.
This makes the flow of goods from one place to other place anywhere in the world
more easily and quickly.
We find that Modern economies are open economies.
That why we have Import and export of goods, foreign collaborations and flow of
foreign finance into the country.
5. Revolution in the field of science
Improvement in science and technology has brought in tremendous impact on
business.
Examples which show how there has been Revolution in the field of science May be
Launching of satellites, fast moving trains and planes ,fuel economic vehicles, ,
decision making by using mathematics and data bank, with the help of a computer
have made business more complicated and competitive.
The businessman has to take care of the latest know how to survive in the market for
longer a period of time.
6. Competition
In this competitive world individuals are not only competing among themselves but
also large establishments are competing with one another to capture the market.
This competition in business offers various advantages to the consumer, because as
a result of such competition among trading concerns, consumers get a better deal
with regard to superior commodities at a reasonably competitive price.
Business Environment
Meaning of Business Environment
Business Environment is sum or collection of all internal and external factors that
affect the functioning of the company.
Sum of these factors influences the companies or business organisations
environment and situation.
A business environment is divided into macro and micro-environment based on the
perspective.
A macro-environment is associated with elements that affect all businesses
regardless of their industry or size, as is the case for political or macroeconomic
influences.
The micro environment is known as the business competitive atmosphere, which
includes the following competitors, customers and suppliers.