Introduction to Business

This document provides an introduction to business, covering topics such as make or buy decisions, key measures of international trade, classifying products, and promotion strategies. It includes examples from companies like Nestle, Amazon, Flipkart, and Britannica. Study material and solved assignments on these topics are available on Desklib.

Introduction to business

Business
Topic 1
Make or Buy decisions
It can be said that make or buy decisions are related with the issues that are encountered by the
company at the time of deciding that the product or the service will be purchased from the
outside sources or manufactured internally. There are different factors related with make and buy
decisions. The first factor is quantity of the items needs. In this the companies determine the
quantity of the products that are required and according to that the influence will be given
whether to purchase or buy it. The next factor is related with standard or non standard products.
In this the emphasis will be given on separating the products that are according to the set
standards and the products that are not.
The third factor is size of the components in which the ingredients will be taken into
consideration which will influence the decision process. Special design feature is also one of the
factor in which designing of the products will be determined. The product shape and features will
be one of the important factors that will be taken into consideration. The last is quality and
reliability of the suppliers in which it will be determined that the company will create a product
better than what is purchased from the vendor. Example: Nestle emphasizes on this concept in
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which products are determined in context to make or buy decisions. In relation to the Nestle Milk
the company emphasizes on buying part as making can be considered as the difficult process
(Nestle, 2019).
Topic 2
Key measures of international trade
1.) Exports
It is one of the functions that are related with the international trade where the products are
produced in one country and are transferred to the other country with the purpose of sale or trade.
It is one of the essential component of the economy as he overall sale of the products add the
national gross output.
2.) Imports
It can be said that the products that are produced in the foreign country and are mainly related
across a national border from the external source.
3.) Balance of trade
It can be stated as the difference that takes place between the value of the goods and services that
are exported and imported. It is known as the biggest element of the country’s balance of
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payment. It has been examined that BOT is taken into consideration by the economists as it helps
to evaluate the strength of the overall economy of the country.
4.) Balance of payment
In this the transactions are recorded related to imports and exports of the products and services. It
is also known as the balance of international payments and abbreviated BOP.
5.) Exchange rates
It is related with the financial transaction that determines the currency rate of a particular
currency in terms of the other country.
Example: Amazon is one of the largest companies that emphasizes on exporting, importing,
balance of trade, balance of payment and exchange rates. The global exports countries in which
Amazon export the products are Africa and Middle East, Europe and America (Amazon, 2019).
Topic 3
Classifying the products
Consumer products
 Convenience products
It is considered as the consumer product or the service that is purchased by the customers on the
routine basis. These products also do not cover the huge cost. The products such as fast food,
detergents are the convenience products. Shopping products
In this the customers compare one brand with the other brand. The products are compared in
context to the price, quality and suitability. The customer put more efforts at the time of
purchasing these items from the market. Specialty products
These products have unique features and also the brand is one of the essential aspects. The
specialty product needs a special purchase effort but it is only related wit certain customers. The
products that are covered under this segment are cars and designer clothes. Unsought Products
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These are those products that are popular among the customers or the customer is not aware
about it. In this life insurance, pre planned funeral services are taken into consideration. It needs
more advertising and marketing efforts.
For example: Flip-kart emphasizes on selling the products such as Convenience products,
shopping, specialty and unsought products. The products that are sold are Television, mobile
phones, soaps and detergents (Flipkart, 2019).
Business Products Raw materials
This can be considered as the material that is used to make the finished products. The raw
material is converted into finished goods to use. Component parts
This can be considered as the finished goods that require little efforts at the time of processing
before the overall process related with assembling. Installations
This is related with the machines that need large capital investment and also it can be used for
the long time. Accessory equipment
It is the important item of the auxiliary that can be attached or removed at the time of using the
products and it is removed without any damage. Supplies
These are related with the method of supply that is considered at the time of promoting the
products. Industrial services
The services are related with distribution and retailing services.
Topic 4
Promotion strategy
• Personal selling: The products and services are sold by face to face communication with
the customers.
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• Advertising: the products and services are promoted trough promotional messages and
advertisements on television.
• Public relations: it is one of the strategic processes of communication that is considered
by the companies to build the relation with the customers.
• Sales promotion: in this the customers are induced to purchase the products. It is also
known as pull marketing technique.
• Integrated marketing Communications: It focuses on promoting the brands in the
market through effective communication. It ensures that the messages are linked with the process
of communication.
Example: BRITANNICA uses sales promotion as one of the promotional strategy. In this the
company emphasizes on offering short term incentives to purchase and also they reduced the
prices to grab the market share (Marketing, 2019).
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References
Amazon. (2019). AmazonGlobal Export Countries. Retrieved from:
https://www.amazon.com/gp/help/customer/display.html?nodeId=201910800
Flipkart . (2019).About us. Retrieved from: https://www.flipkart.com/flipkart-smartbuy-store
Marketing . (2019). Sales promotion. Retrieved from:
https://www.britannica.com/topic/marketing/Sales-promotion
Nestle. (2019).Good food, good life. Retrieved from: https://www.nestle.in/csv/rural-
development/milk
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