Business is a process of exchange of goods and products or otherwise to selling of product or service. It is a common term that represents each and every entity that is formed for a purpose of selling goods or providing services. Whichever the kind of business, it is necessary to follow the strategies and plan to run a triumphant organization. The management skill is very important for a business people who need to achieve their target and aim. It is a key to run a smart business rather than doing hard works.
Business strategies includes the process of formulating or structuring, implementing and cross functional decisions and also includes vision, mission, setting of objectives , plans , policies and many more to attain the long time objective of the organization. It is important to manage and integrate the activities of the different functional areas of a business in order to achieve long term organizational objectives. To attain these targeted objectives each business has to cover 4 key areas such as marketing, HR, accounts. Marketing enables the business entities to promote their business products to reach the people effectively. HR enables to manage and also helps to direct their employees. Accounts relate the profit and loss status of the organization. All these areas are to be maintained with respect to the type and structure of a business. There are 5 types of business going on around the world.
Structure of a business
The structure of a business is of 5 types; they are Sole proprietorship is a form of business run by single person which are sometime named as sole trader or family business. It produces unlimited liability and sometime it becomes risk if any uncertainty happens. This form of business is simple and easy to run because there is no distinction formed between personal and business assets. The second one is the partnership organization. It explains the business is formed in a joint venture. The partnership formed between single and group of people to achieve the group objectives. The third one is the company based business. It may be of two types such as public companies or private companies. Public companies are undertaken by the governments to serve the other company or to the people. Private company is just work to earn profits. These companies are otherwise known as profitable company. He fourth one is trust. Trust is a non profitable company which works for social cause. It is formed to serve the society for its benefits. It is like charity. They are otherwise known as service based companies. Franchise is another type of business where the rights of other company products are undertaken to run the business.
The important things to be noted to run a successful business are 7p’s. They are product, place, price, promotion, people, process and physical evidence. These are to be kept in mind in starting a new business or to enhance the existing business. Whatever the business is SME or MSME, they should follow the above said plan and policies and thus they are capable conducting a winning business.
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