Business System

What is Business? 

Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.

Examples: All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives.

What is Business System? 

• Systems and processes are the essential building blocks of any company, whether you realize it or not. 
• Every facet of your business in the store, the workshop, or the office is part of a system that can be managed or improved by applying correct principles.

EXAMPLES OF BUSINESS SYSTEMS
Lead Generation	Customer Service	Purchasing
Sales Conversion	Hiring	Inventory Management
Website	Training	Shipping
Pricing	Accounting	Information Systems
Operations	Payroll	Safety
Order Fulfillment	Collections	Custodial

It is Classified into 3 Types:

Manufacturer:

• One who is engaged in the business of working raw materials into wares suitable for use.

Examples : 1. Mineral ores to Metals

                    2. Wood pulp to paper

                    3. Natural herbs to medicines

Fabricator / Installer:

• Fabrication is the act of taking raw stock material and turning it into a part for use in an assembly process.
• The items that are assembled this way can range from televisions to cars, though the methods used to create items varies from factory to factory.

Examples:  1. Cutting

                    2. Folding

                    3. Machining

                    4. Punching

                    5. Welding

Distributor:

• A distributor is an intermediary entity between a the producer of a product and another entity in the distribution channel or supply chain, such as a retailer, a value-added re-seller or directly to customer .

Examples:  Franchise

Business Structure:

                    

Who Will Involves in Business Structure at Different Stages
Stage	Who Will be Present	Example	Supplier
Business	Managements / Companies / Industries	Tata Steel, Hindustan Unilever,Etc	Raw material resource dealer
Raw Material	Resource landlords or Material Distributors	Crop fields, Quarries,Etc	Natural Resources
Manufacturer	Managements / Companies / Industries	Tata Motors, Coca-cola,Etc	Raw Material Supplier
Fabricator	Managements / Companies / Industries	Design based companies	Manufacturers
Distributor	Local agents & Local dealers	Will be supplier for wholesale shops	Manufacturers & Fabricators
Consumer	Purchaser, Buyer, Customer, Shopper,etc.	Household requirements	Manufacturers, Fabricators & Distributors