Post liberalisation, the relevance of management education has become more imperative, this means a marked change in the way commerce and management education is perceived in India.
The period immediately following independence signaled the pressing need for developing vast management skills. Ever after that, we have travelled a long way and Indian economy is not just new but has become very mature and as of present has become an international player. This is because of liberalisation and globalisation policies and a shift from planned economy to market oriented economy etc.
The above calls for a professional approach, which can be brought about by professionally run Commerce and Management institutions offering commerce and management education.
1: The following reasons.
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They help to develop information management skills to execute
2 tasks.
3 skills to solve problems.
4 They help in decision making process in a dynamic environment.
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5 They help in development of human resource management skills.
6 They help in developing creativity / innovation.
7 become more professional in their business dealings.
8 They help in developing time management skills as ‘Time lost is
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9 money lost’.
11. ‘Customer is the king of the business’. Now the slogan is ‘Customer is God’. Commerce and Management education is aimed at this by developing customer services management skills.
Thus the main objective of Commerce and Management education is to provide an all round development of the personalities, so that they can manage the affairs of the organization more efficiently and effectively.
Thus its objective should not be just to churn out technocrats and managers for the industry but also to train the people to handle the problems with ease and comfort.
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Points to remember
Meaning:
All those human activities which are undertaken with the object of earning one’s living are called economic activities. Economic activities may be professions, employment and business.
Nature of Business:
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Business is an economic activity. Business may be defined as “the regular production or purchase and sale of goods undertaken with the object of earning profits. Business has the following characteristics:
Scope of Business:
a) Industry: Primary and Secondary Primary – Extractive and Genetic Secondary – Manufacturing and Construction.
b) Commerce: Trade and Aids to trade
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Trade:
Buying and selling of goods
Aids to trade: Banking Insurance
Transport Warehousing
Advertising Mercantile Agents
Meaning of evolution of business
Classification
a) Evolution of Commercial activities.
b) Evolution of Industrial activities.
Stages of Evolution of Commercial activities.
1. Family economy stage.
2. Hunting and Fishing stage.
3. Pastoral stage.
4. Agricultural stage.
5. Barter Economy stage.
6. Money Economy stage.
7. Town Economy stage
8. International Trade stage.
Evolution of Industrial activities.
1. Handicraft stage.
2. Guild system stage.
3. Domestic system stage.
4. Factory system stage.
5. Industrial revolution stage.
6. Automation stage.
Characteristics of contemporary business
Size of business. Diversification. Technological advancement. Globalisation.
Scientific revolution. Communication and information. Immediate returns. Competition.
Economic objectives of a business comprise of:
Satisfactory profit. Creation of customers Provision for future growth.
Social objectives include:
Supply of goods at reasonable price.
Fair deal to customers.
Fair return to investors.
Fair dealing with suppliers of materials.
Avoiding anti-social practices.
Importance of business study
Business has become indispensable in our lives. Business has the capacity to satisfy almost any ambition of an individual.
The improvement in the business is directly related to the urge in people to give the best to the world. Profit earning with consumer satisfaction are the true goals of business today. Importance of commerce and Management education.