The nature and goa of Business

[Tariq Shehzad]

A business tries to earn a profit by producing or providing products. The profit is the difference between the costs to make and sell a product and sale value of the product. if a company spends 2 USD to make product and sell it for 2.75 USD, the business earns a profit of 0.75 USD. The profit is the reward for the risks a business take in providing products. The products satisfy people's needs and requirements. The result of business efforts and operations are products. The products have tangible and intangible characteristics. The characteristic of the product satisfy people's needs and requirements. We purchase a product for its benefits and satisfaction. A KFC burger may be purchased to satisfy hunger. A *Gull Ahmad cloth is purchased to satisfy clothing needs. In essence all businesses revolve around some need of its products for satisfaction of people.

A product can be

1. Tangible like a car etc.
2. Intangible
a. A service like a checkup by a doctor etc.
b. An Idea like given to a company by its consultants to solve a problem etc.

we therefore define a product as.

Keep in mind that all the organizations are not businesses. Non- profit organizations, Such as *Edhi Trust and Ambulance services do not have the primary purpose of earning profits. They may provide goods or services but not for profit.


NOTE:

* Gull Ahamad is the brand of clothes in Pakistan.
*Edhi is the Pakistani ambulance services and it is the largest non- profit ambulance service in the world

 

[Seyesystem]

Setting goals for a new business it is very important to sets up goals of the business and the goals must be monitored. The business owner must ensure that who runs the business effectively and efficiently in order to achieve the overall goals of the business. Any business that doesn't have goals may I likely close down because there is no goals that they are working towards.purpose of establishing a business is to make profit and it's expected to be in continuity, so if my business make a huge impact on the people in it business environment I will be very happy and be proud of my business. Profit and impact goes together when there is an impact in the business environment there will be also increase in profit to the business. Every business owner will always happy seeing his business performing well in it business environment and this will make the business owner to put more efforts and resources in the business. So the reason to establish a business to to generate profit and have impact in the business environment.