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The Purpose and Function of Business - PowerPoint Presentation Example

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Businesses are regarded as economic activities that are operating to cater the needs of individuals which in turn are of benefit to both the individual and the business. Human beings…
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The Purpose and Function of Business
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"The Purpose and Function of Business"

Download file to see previous pages The basic factors of running a business are land, labour, capital and enterprise (or expertise). Entrepreneurs are those who work upon developing and running a business. The entrepreneurs have to use the factors of production for starting a business. Opportunity cost refers to the alternatives that we leave while buying a certain product. We buy particular bread and leave the others; the left one is called the opportunity cost. Consumers have to undergo opportunity cost because they have to make choices while buying their products and services. Three examples of features of business are:
Each business has its own goals and objectives for becoming successful and profitable. To increase market share, earning higher revenues and building a large customer base, utilizing latest technology, reducing labour costs are some of the objectives of businesses. To achieve all these objectives and purpose of the business, the organizations have to plan in becoming an international business as well. Once they make an international presence, they knock on many opportunities, have the chance to invest in latest technology and ensure that business operations are running successfully with higher profit margins. Importing and exporting, licensing and franchising allow new business units to commence and also allow the products and services to reach a wide audience at the global level.
There are certain factors that are increasing the demand of globalization such as advanced technology, liberalisation of cross-border trade which allows the process of trading to easen, services that help international business in becoming successful, consumer demands, competition in the global business environment, the effect of political situations (favourable in many of the countries) and other such factors. These factors impede local organisations to have an international business expansion plan and deal with all rules and regulations of each country accordingly.
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