BUSINESS TERMS & GREAT QUALITIES OF A GOOD BUSINESSMAN
BUSINESS FACTORS & QUALITIES INTRODUCTION TO BUSINESS
PEST analysis stands for “Political, Economic, Social and Technological analysis” and is used for business and strategic planning, marketing planning, organizational change, business and product development and research reports.
A political factor relates to the pressures and opportunities brought by political institutions and to what degree the government policies impact the business. Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided and those that the government does not want to be provided (demerit goods or merit bad). Furthermore, governments have great influence on the infrastructure, health and education of a nation.
• Government policies
• Government term and change
• Trading policies
• Funding, grants and initiatives
• Wars, terrorism and conflicts
• Elections and political trends
• Internal political issues etc.
Economic factors relates to economic policies, economic structures and to what degree the economy impacts the business. Economic factors are basically economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm’s cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy
• Local economy
• Economy trends
• Industry growth
• Import/export ratios
• International trade etc.
Social factors relates to the cultural aspects, attitudes, beliefs, that will affect the demand for a company’s products and how the business operates. Social factors are basically the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company’s products and how that company operates. Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).
• Advertising and publicity
• Media views of the industry
• Work ethic
• Brand, company, technology image
• Lifestyle trends
• Cultural Taboos
• Consumer attitudes and opinions
• Consumer buying patterns
• Consumer role models etc.
Technological factors relates to the technological aspects, innovations, barriers and incentives, and to what degree these impact the business. Technological factors are basically technological aspects such as R&D (Research & Development) activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.
• Competitor technology development
• Emerging technologies
• Maturity of technology
• Technology legislation
• Research and Innovation
• Information and communications
• Intellectual property issues
GREAT QUALITIES OF A GOOD BUSINESSMAN
In the modern age we can see the various changes in the business field. Due to technological advancement it is necessary that a good businessman should possess the basic skill and knowledge about his business. Following are the important qualities of a good businessman:
Honest: – It is the first quality of a good businessman that he should honest and sincere in public dealing. There should be no fraud and commercial bribery in business. If he fails to perform his moral and religious responsibility then he can’t become a good businessman.
Efficient and Hard Worker: – A good businessman must be hard worker and capable of working for long hours. A lazy and inefficient businessman can’t compete the market. Without have working no business can be successful. If the owner is not hard working then other workers of the business can’t be hardworking.
Ability of Planning: – It is a basic quality of a businessman that he should possess the ability to plan his business. For example there are various decisions like what to produce? Where to produce? Which are made by the businessman? A good planner can only make the best decision.
Careful about Future: – A businessman should be careful about the future expectations. If he fails to estimate the future demand for his product then he will suffer a loss. If he has a foresight about the future then he can earn profit.
Ability of Financial Management: – A good businessman tries to meet the financial needs from internal and external sources. He uses the finance in such a way in his business that it gives him maximum profit. A successful business has a quality that he can manage the finance easily.
Ability of Innovation: – In the modern age new product attracts the customer easily. So a good businessman should have an ability to produce new goods and services according to his new ideas.
Research on Business: – A good businessman always pays proper attention to the research work. He also uses his experiences to minimize the cost of production.
Technical Skill: – A businessman should have specialized knowledge and technical skill for understanding and completing the process of production. If he has no technical skill about his business, he can’t become a good businessman.
Sympathetic Attitude: – A good businessman always loves his workers. He should be aware of the temperament, feelings and limitations of his workers. He should always take interest in the problems of his workers and try to solve them. They will also reply positively. It will increase the profit of the business.
Good Reputation: – In business dealings good reputation is assets for the businessman. A good businessman always improves his goodwill and expands the business.
Foresighted: – It is the most important quality for the successful businessman. A businessman must keep an eye on the future. He may be able to predict for future.
Cool Minded: – In competitive market for the success of business it is necessary that businessman should be cool minded and a man of balanced personality.
Dependability: – The successful businessman should have the capacity of dependability. He should use every effort to hold it constant and dependable, so that those who work under it know what to expect as it remains unfluctuating from day today. It keeps him much to win the heart of both customers and workers.
Responsibility: – A successful businessman should have to realize his responsibilities. If he doesn’t do his duty then his business can’t go well.