What is a business? A business is basically an institution where people work together. In a business, individuals work either to create and sell goods or services. Others also purchase the goods and services created by the firm. The firm owner is generally the individual who owns the company. There are different types of businesses.
One is called the businessman. A businessman creates new products or develops new methods for doing business. He advertises his products through advertisements in newspapers or through other written materials. Advertising helps promote the sale of developed products. Businessmen use money and financial resources to build a firm.
Another type of business is the manager. The manager develops, implements, and promotes an economic operation. His business objectives are related to the size of the firm and the profits it earns. He ensures that the objectives are properly achieved. His activities include buying materials, planting trees, or using capital to purchase tools and implements used in production.
Another type of business unit is the retailer. The retailer’s trade in the products and raw materials produced by other firms. They do not distribute the finished products. They advertise the price and quantity of the goods sold.
All these business units need to have a firm to operate. The firm needs capital to earn profit. The capital is required to build and employ workers to carry on the firm’s business activities. The owner of such a business unit can buy or hire property. He can also advertise the cost of the goods sold at reasonable prices in newspapers and other print media.
Advertising plays a major role in earning profit. The owner of the business unit can employ employees to post advertisements in newspapers. He can also purchase advertisements in magazines and online. When the advertisement content is favorable and convincing, the readers will come to the site. They may buy the goods advertised there.
Advertising plays a great role in social well-being. The owners of business units who use fair trade practices ensure that their employees and consumers alike enjoy good psychological satisfaction. They also promote the well-being of their communities through fair advertisements. Fairtrade practices ensure the acceptance of cultural differences and promote social harmony.
A firm’s success is based on its global objectives. Its global objectives are its profit-making capacity. If it is earning good profit but producing goods that do not meet the requirements of human beings, then its business activities are not achieving its global objectives. If it produces goods that meet the needs and requirements of human beings, then it is meeting its social and psychological objectives. If it sells products that are in high demand worldwide and gets customers to buy those goods, then it is achieving success.
A firm that is earning good profit and successfully implementing its business activities towards its global objectives is called successful. A business unit that is producing goods and satisfying human objectives is called successful when profits are exceeding the costs of production. A business unit that is creating goods that satisfy human objectives and creating a community that enjoys good living standards is called successful when it enjoys well-being. In other words, it should be able to create satisfaction in the customers and employees. A business unit should be able to satisfy the general welfare of society.
Satisfaction of the people or the community is another important factor for a business to achieve its objectives. Every businessman aims at satisfying the customer by producing quality goods. However, satisfying the customers may not be a universal criterion. It depends on the profitability of every business to determine the satisfaction level of the customers. If a businessman succeeds in achieving a profitable business objective, then he will have succeeded in fulfilling one of the most important factors for the existence of every successful business.
The social objectives of businessmen are also part of their general objectives. Every successful businessman has the goal of social welfare. The products that are produced by a businessman contribute to the happiness of society as a whole. Therefore, every businessman must consider social welfare as an important part of his overall business objectives.
A businessman cannot succeed unless both the social and economic objectives of the business are achieved. Therefore, it is important for a businessman to consider his overall profit objective before focusing on his production process. Both the economic and social objectives of a business can be attained through a well-planned production process and a focused marketing effort.