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Class : 11
Unit : Business

What are the requisites of business success? Explain.

Ans : Literal meaning of business is state of being busy. It involves in the production, distribution and exchange of goods and services. The main aim of business is to earn profit by satisfying customer needs and wants. Some of the major requisites of business success are as follows: i) Establishment of objectives:- Objectives are the aims of the business. It determines the scope future work. Objectives must be clearly defined. It provides guideline for doing work. Objectives are defined for long term and short term. ii) Proper Planning:- Proper planning classifies the work to be done. It should be done in efficient way. There must be clear set of plans to complete the work. It helps in minimizing risk and minimizing profit. iii) Proper location and layout:- Business has to be located in a suitable place so that all kind of facilities are available for efficient and timely implementation of plan. It is essential to determine proper location of business and layout of organization resources like machine, manpower, furniture, equipment etc. in systematic way. iv) Adequate Capital:- Capital means finance. It is the life blood of organization. Business cannot be established without sufficient capital. The size of the business organization depends upon the amount of capital. Business organizations need two types of capital i.e. fixed capital and working capital. Land, buildings, machinery etc. comes under fixed capital whereas salary and wages, rent, taxes etc. comes under working capital. v) Effective management:- Successful business requires effective management to achieve it’s objectives. Management is the act of getting work done through others. Efficient management is necessary for proper mobilization of factors of production like men, money, material, machine, management and other resources. vi) Consumer Satisfaction:- The ultimate aim of business is to supply quality goods and services for the satisfaction of consumers. So, that the demand of his product is maintained. Profit is made by satisfying consumer needs. Satisfied consumers are the backbone of the business. vii) Sound Organization Structure:- Organization structure is concerned with the development of hierarchy of managerial position fro9m top level to lower level. It involves division of work, rules, regulation, procedures and system of completing work. It also defines authority and responsibility of each and every employees of the organization. An effective organization structure insures mutual and harmonious relationship between manager and employees. viii) Efficient Marketing System:- The efficient marketing system is essential to promote business and to satisfy customers. Marketing is the distribution system which tells business organization what, when and where the goods are to be distributed. Therefore, marketing is essential for survival, growth and expansion of volume of business. ix) Good Relation with employees:- Employees are the pillar of the business and must treated as valuable assets of the organization. They are directly involves in regular activities of a business enterprises. The success of business depends upon the co-operation and support of employees. So, the employee should be motivated by providing fair salary and wages, better working environment, prospects of promotion etc. x) Personality of Manager:- The manager represents the business organization. The personality of manager is responsible for the success and failure of the business. The implementation of all the plants and utilizes of resources of organization depends upon the capability and skills of the manager. So, the manager must possess better personality, intelligence, long term vision, morality, sincerity, courage and decision making capability. xi) Scope of research and development:- The progress of any field is the result of research and development. It is essential for every business organization to make itself up to date with the changing environment of market and society. It helps for innovation of new concept, model, size, design, structure and technology.
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