Eight important Characteristics of Present Day Business

1. Size of the Business

Bulk production and marketing have become integral parts business. Economies of bulk production is an objective. This has been made possible by producing more goods with the existing infrastructure. Bulk production is possible only when machines can replace the manual labour. Sophisticated machines have replaced the labour force considerably, thereby adding to the speed in production activity.

Distribution channels have also got narrowed down so that the ultimate consumer is in a position to get the required commodity quickly. Turnover has enormously increased due to the establishment of departmental stores, super markets, chain stores, mail order houses etc.

Thus the bulk production is considerably taken care of by the distribution channels.

2. Diversified field of activity

Any businessman would not like to stick to one field of activity. Diversification is the order of the day. Godrej group, a reputed business organisation, has units producing soaps and detergents, furniture, etc. Birlas have units manufacturing vehicles, optic fibers, jute, aluminium etc.

Even the introduction of different brands of goods in the same product line is seen now a days. For eg., Philips has introduced various types of bulbs, tube lights, etc., into the market.

3. Change in fashion and tastes due to technological advancement

There is a famous saying that “You better pay attention to your future because you are going to spend a lot of time there”.

Self service stores in place of small retailer outlets, motor vehicles in place of cycles and bullock carts, ballpoint pens in place of ink pens, tube railway system in place of conventional railway system, polythene covers in place of ordinary covers are only few examples.

The present day businessman has to equip himself for the changes lest he may not survive in this competitive world.

4. Liberalisation and Globalisation

Modern business units have become a global entity. Thanks to liberalisation in the early 90s. This gave way to curtailment of restriction on economic activities. The impact of the same was felt all over the world. Liberalisation led to advancement in the field of transportation, communication, warehousing and marketing techniques etc. This helped in the movement of goods from one place to other place throughout the world easily and quickly.

Modern economies are open economies. Import and export of goods is the common feature. There are foreign collaborations and flow of foreign financial aid and loans. Every country has got its economic interest in other countries. Modern big industries have assumed global status. The impact of globalisation is visible from the following:

1) Formation of International Monetary Fund (IMF)

2) Foreign collaborations and Joint Ventures, financial aid and assistance

3) Permission to start foreign companies and banks in our country.

4) Globalisation of marketing through cable TV network and satellite links.

5) Introduction of internet facilities – e-mail and e-commerce services.

The effects of globalisation are :

1. Development of social consciousness. Because of globalisation, there is a change in the style of living and standard of living. People expect the businessmen to supply useful and good quality goods. Business should fulfil social obligations.

2. Technological Revolution. New and novel products are available in the market. Manufacturing takes place in large quantities. Advertisement has become integral part of business. Use of computers, internet, e-mail, net phone, teleconferencing etc. has become the order of the day. Market is flourishing with foreign engineering and electronic goods.

3. Global form of modern business. Modern business has now become global. International trade has become very common. This has led to decrease in the balance of payments position and increase in the Forex reserves, which has crossed the $100 billion limit. .Many multinational companies have entered our market. Our industries have also been entering the foreign market. AH these changes force the business to become a dynamic global entity.

All the above effects of globalisation have led to sustained development in the growth rate of our country.

5. Revolution in the field of science

Improvement in science and technology has brought tremendous impact on business. Launching of satellites and fuel economic vehicles, fast moving trains and planes, decision making by using mathematics and data bank, diagnosis of disease with the help of a computer, compact disks in place of tapes etc., have made business more complicated and competitive.

The businessman has to take care of the latest know how to survive in the market for long.

6. Communication and information

Now-a-days the businessman would like to communicate the information to his customer at the earliest. There is a continuous flow of information which has to be taken note of. In the earlier days information was sent by post, telephone, telegraph, hand mail, etc. At present the information transfer is done at a very great speed with the help of computers, for eg. LAN (Local Area Network) where information can be accessed with the help of computers by every person and department, within an organisation continuously; WAN (Wider Area Network), where information can be sent from one place to another, one country to another country in less than a fraction of second with the help of computers; and satellite, electronic mailing, courier service, speed post, transfer of software from one country to another through satellites, etc.

7. Expectation of immediate returns

The present day businessman aims at getting faster result thereby to earn back the investment as early as possible. In the earlier days the businessman used to aim at a marginal return, but the times have changed and everyone expects windfall profit. Customer interests, environmental protection, social well being, business ethics are not given due importance. Businessmen take all short cut methods like supplying inferior quality goods, tax evasion, customs and excise evasion and selling goods at inflated prices to fulfil his greed.

8. Competition

We should not forget that we are living in a competitive world where not only individuals but also large establishments are competing with one another to capture the market. This kind of competition in business is in a way advantageous to consumer, because as a result of this competition among trading concerns, consumers in general can get a better deal with regard to superior commodities at a reasonably competitive price.