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Charity in Business is termed as Philanthropy and the person who is doing the charity work is known as Philanthropist. Now in this modern world there are there has been a great rise in the field for philanthropy. Some of the world s leading billionaires such as Bill Gates, Warren Buffet, Azim Premji and the list are so long that it would take a whole page just to describe the names.
Today s generation of the philanthropist s has taken philanthropy to the next level. They are not just donating by their own but also now they have started to campaign for encouraging more and more potential businessmen to get into the field of philanthropy.
The recent example of this can be looked upon as Gates and Buffet visited china to encourage a large group of potential Chinese businessmen consisting of top 50 who are billionaires and wanted to help in a closed door charity banquet on 30th September, 2010.
Bill Gates and Warren Buffett are one of the most experienced philanthropists. These two have donated a huge fortune towards empowering the lot of people who are either under potentials. They shared their experiences and enthusiasm for charity with the most brilliant minds in china.
40 of the most wealthy business houses of the United States have agreed to pledge in participating with charity organizations. They have made a commitment to give out their good portion of wealth to the under deprived part of the population so that they can grow and develop in their process of philanthropy.
In the event Gate and Buffett said that china should have a different angel towards approach of their goal and it should be a unique way in which the Chinese Businessmen should go on for charity. They also said of pledging more wealth in Beijing.
Types of Businesses
A business can refer to anything which is done on regular basis and in which money is involved with the terms like profit and loss like from a small barber shop to a big industry all fall in same category and are called businesses. Business is classified into 4 categories.
First form of business is Sole Proprietorship. In this form, businesses have only one owner this is mostly referring to small shops, and some cottage industries, which are managed by owner or sometimes he can hire employees to work for him. These types of business have most liability for the owner as he is the only one who has to bear all profits and losses.
Second form of business is Partnership. In this form, business is owned by 2 or more persons who in turn share all the profits and losses of the business. This type of business is also have unlimited liability but lesser then Sole Proprietorship as profits and losses are shared among the partners in the decided ratio, which means no one alone have to bear all losses.
Third form of business is Corporation. In this form, business has entirely different and individual entity and can be owned by government sector or private sector, which can work for profit or no profit as well that means for social cause. For the Corporation which work for profit is managed by board of directors which are elected by shareholders which in turn hire employees to manage the business.
Fourth form of business is Cooperative. In this form, business has different entity and work mostly same as Corporation but in this form of business shareholders are replaced by members, which work and manage Cooperative business and also have decision making powers. They are divided into consumer cooperative and workers cooperatives.
Classification Of Businesses
Now a days, there are many type of business which are working for society. This is the main reason businesses are classified in many categories and serve different sectors of society. But the main reason is still profit making.
First category is agriculture and mining, these businesses are concerned with the production of raw materials which can be in a form of plants or crops to serve society hunger needs or it can be in form of minerals and other raw materials for big industries.
Second category is financing, these business includes all the banks which invest capital in different sectors and earn their profits through them only. Third category is information technology and entertainment sector, these businesses include resale of intellectual properties like movies, soft ware s and other things.
Fourth category is manufacturers, these businesses manufactures the fine goods for the society from the raw materials which are provided by the agriculture and mining industries. Fifth category includes wholesalers and retailers, these business resale the goods which are manufactured by the manufacturers.
Next comes the Services businesses, which are mostly, make their profits by charging of labor and things. They do not sell anything just provide help to other businesses or to each individual. Examples of these type businesses are consulting firms and restaurants.
Seventh category refers to the transportation business, these business serve to all type of sectors ranging from big industries to small cottage industries, and to all individuals as well. These businesses generate profits by charging cost for transportation. Examples of these businesses are railways, taxi s etc.
Last category consists of all Utility things that are the main reason because of which it is called Utility industries. These types of business serve to everyone and mostly refer to public sector organizations. Most common example of this category is electricity.
Need of Marketing
The Marketing is the backbone of any business. So you will need to be careful while launching any of the business into the market. To develop and explore your business, you will need to make the strategy for your business that can ensure the success of your business. So until you have the perfect marketing plan you cannot ensure the sure success of your business.
The marketing has the capability to fulfill every vital function. The owner of any business needs to get familiar about the basics of the business which he is involved into, the basics of the business means every small or big thing which can play any sort of role in it.
This is strongly required to check about the strength and weaknesses of the business s opponents as well. Combining all these small and big factors we will need to maintain the marketing plan for any business which can ensure the proper success of the business.
The necessity of a good plan is how one can attract and let their customers to be with them for a long time, it also checks the ways to fight back with its competitors and you can never leave behind the budget of the business untouched during the marketing.
To check the marketing requirements it is very much important to check about the researches in the market, the suitable location for the business, the group of customers which need the product, advertisement, promotion of the business, this should be made into consideration that product that we are selling should be in budget as well.
So this can be seen every now and then to check the business requirements and needs of the product in the market. This is very much required to maintain equilibrium among the needs and product available in market. One needs to be very conscious in maintaining and selecting the ways to market the product.
Business and Society
Businesses are serving Society in many ways and helping in many ways to complete the requirements and the demands of the each and every individual in the best way possible. Now business touched every field from electricity which is a very utility item to the medical field by making new innovated medicines which cure persons in fast manner.
Now days, it is so easy to travel from one place to other destinations due to the growth of transport industry, now our railways are connected to each and every place, our airways are connected to each and every country by which people can travel easily, which is like a dream come true. Now we just get down from our house and sit in our car to drive safely and conveniently.
Due to rise in businesses there is a huge growth in employment as well. There is a huge demand of people as employees in business to work which is making job for everyone and in turn increasing purchasing power of society. Growth in per capita income is the main reason of country growth as well.
Businesses are also changing the lifestyle of society there is now fashion world which suit each and every ones clothing, there are restaurants and big hotels which are increasing variety of tasty food, Automobiles industry is designing cars which is increasing comfort.
Manufacturers are doing ongoing innovations which can be seen by present air conditioners, televisions, micro wave, refrigerators etc. These innovations are helping all people to live their life with ease and innovations in medical field which are operations theatre, new medicines etc. These innovations are helping to improve the life and to safe guard from health problems and hazards.
These businesses are innovating technology and through which is making life of each individual a worth of living.
E-business refers to electronic business which means any business which is done on internet or through internet. This type of business are rising very rapidly in today s world the new generation look for mostly go for something which is very convenient and can be reached by comfort. E-business enables them to shop, watch movies, talk, and play games etc. just from their computers or phones.
Now days, people prefer to email more than mail to someone by postal departments because through email their messages can be conveyed very fast, this also help for many other businesses as well. People do enjoy the e-business procedure and things as well.
Now mostly every big business is opening their e-stores where people can visit from their computers sitting in their bed with ease and can see the things which are available, latest trends and also if they like to buy they can place order from that website only.
To surprise banking industry also jumped into e-business terms which enabled banking from anywhere and matter of few clicks only. By e-banking customers can transfer funds, view balance sheets, and trace out the pending payments right from their home. There is no need now days to go to bank and stand in long queues to get a small piece of information.
Telecommunication industry also joined electronic business category which enable persons to talk to their beloved ones through chat or by voice over internet. Best examples are Skype and yahoo messenger.
Rising of e business have loop holes as well there is a huge need to safe guard individual securities, as online trading of money is involved. There is also threat of hacking into their bank accounts or their credit card accounts. All businesses that are becoming electronic businesses also need to focus on their customer s privacy and security.
Organizational Philanthropy can be explained as a large number of small capital donations brought under one single organization to make that money count as a huge amount which can be beneficial to the society. With this type of collection s feature is to allow limited liability on a particular person and also can be counted to be a huge capital involved in charity with limited risk.
This type of organizational philanthropy has brought very small amounts of the charity work to be changed into a huge amount of donation which is helpful with broad social consequences by distributing the way of ownership and control of the huge amount indulged.
Organizational Philanthropy is a depersonalization of the capital amount with significance. Sometimes there is an abuse of the agency involved in the organization by the management. It is not sure that this type of charitable donations is in lieu with the strict economic principles, as this type on charity donations are also used as benefits in the reputation of the firm.
It has been investigated by various scholars that there is a good way of re-integration of the organization with social life broadly. Most of the organizations are norm less in the manner they need to work on this type of charitable doings. They also proposed various ways to reform that could enable the organizations to take a good notice on their social responsibility.
Most of the research in field of philanthropy have been more focused on has the organization made a huge donation and how much have they done , it is very less focused on the various ways I which this huge amount of money is transferred to the receptors who are in real need of this type of charity. Mostly they have suggested to take care of the money and spending it in correct ways so that it is more useful for the whom it is done.
Organizations Involved in Marketing
The base role of marketing can be viewed from the perspective of different sectors and organizations. Now there have been certain organizations which have been into to the market to help the people expand their business and to help them check the needs and requirements available in the market. There are certain fields where business societies cannot get them involved to check the small issues.
The Business associates may not find it important to check all the things and to wait for the response. So here arises the role and key factor different sets of organizations who are there to make up their business by involving themselves into it and to share the views from public and to get it to the big business groups who need to check the issues on it.
The new organizations need to check the market reviews about the product and this can be conducted through various organizations by making calls and by arranging the focus groups. These organizations have different projects assigned by the business associates at a different assigned time interval.
So an organization needs to be watchful about the certain projects assigned by the business associates and make a fresh start for every new projects assigned to them as well. These organizations can be of any forms this can be focus group or a BPO involved in making and collecting the surveys as well.
The BPO groups are now being assigned to call the different set of people to manage their responses and to pull up the relevant data from them. The BPO persons need to call them personally or send them forms of surveys to check the individuals response on a certain issues involved into it.
The management of focus group is also almost the same but the basic issue for the organizing is to collect the set of people for it.
Role of Market Research in Marketing
A marketing plan needs to be effective enough to attract the market and consumers towards it. So to achieve this goal you will need to maintain a very healthy market research. This could provide you with the exact and appropriate data which can help you resolve any issues that may arise once you are executing the product into the market.
You will always need to be watchful about the certain problems related to the potential marketing issues as well. There can be seen three most effective ways to manage the research into the market. This has been seen that the market research is usually done by the direct mail surveys or you can choose the telephonic surveys as well or conducting the focus group for it.
If you need to use the direct mail surveys then you will need to be so sure of the various short questions available on it as well which should be more than two pages. A consumer is never interested in the long and irritating surveys being provided to them by the marketing agencies. The direct surveys are the most expensive ways used for it as well.
Phone surveys can though be used as it is the less costly way to conduct a survey on a larger field. You do not require to make a print out for it on a larger scale. You always get a better response while conducting a phone surveys. The main things which are required in it are interviewer s fee, the phone charges and to prepare the questions related to the relevant topics involved.
The Focus groups are the main source to gather the specific data that can be targeted on a very relevant set of people. Here the main cost implies on the interviewer s fee, the charges involved in collecting the people and assigning the groups.
Need of Technology in Marketing
The technology has played its crucial role in each and every sector of the today s world. So when it comes to marketing the technology has still played its vital role in checking and understanding the market. The marketing technology has played several efforts in placing the business of an organization to new heights as well.
The basics of the today s technology are the computers, based on the information system it can be taken on a large number of people in a wider range of area. Using it you do not require to worry about the storage and to check the relevance of the data.
The researchers in the market are using this system to check and to convert data into information in a very small time span and to create a large data in collection methodology. Information technology has been using certain software and hardware components to enhance and to improve the decision making of a company into the market.
In past few years, it has been seen that the laptops is being used as a source. And among which the Net book has been used and made a vital place among all, this is usually all because of the shape and size and portability of the product. Information Technology is making a great progress at a very fast rate which is leading the marketing managers to check for latest technology available in market.
This is seen that the launch of the Smart phones in field of Cell phones into the market has shown various changes into the marketing. And this is all because of the technology which is driving the market to the discovery and production of latest technology.
The advancement in the fields of technology can be viewed and used to lessen the distances in between the different countries and regions.
Impact Of Business On The World
Business world refers to that world where only dealings of the business are done. Business is simply referred to that work of life where one starts to work in and for his own company. These businesses are always carried out by the personal that have the knowledge of products and services.
Business is where one looks after a whole company or institutions. The person who looks after the company will be associated with the other people who are experienced in different fields. The person will be assisted from the co-workers in every business. Business is always carried out from a group of people. The people at the particular group are well experienced in different fields than the other one of the same group. Business always requires man power from the various different fields.
One person looks after the finance, one looks after the shares, one maintains the feedback etc. like this the group shares those works among themselves in which they are known to and altogether starts to work from various fields of the same business.
The group which decide to start their own business will usually be either friends or the relatives or colleagues and etc. the group that decide to work on maintaining business need not to be from the same fields. Ideas that emerge from the group always succeed rather than what arises from the single person.
The business idea always emerges from a small thinking and leads to the best business of the world. One mind thinks about the ideas that could be used and the other mind works to get that idea into action. The other mind thinks for the required strategy to work on the idea and finally the idea comes to being with the work of all the minds that works hard to bring about their best work.
The legal representation of a business is as important as the direct representation of a human being himself. The representing organizations always work on the common basis of the best way to represent one self for the sake of a whole business.
The representing organizations are common as that of the other institutions. These institutions are made to stand exactly for the terms and conditions of the companies or organizations which they represent. The representing organizations will also be made to abide by the conditions.
The representing organizations will be legally bound to the terms and the conditions of the various organizations in the world. They may be either of profit or loss. The companies that are bound to the legal contracts always share the profit and the loss equally.
The representing organizations are always expected to be affirming on the terms. Each and every move of both the companies is informed to all the organizations which are in the contract. In simple words the companies cannot take a decision without consulting the partner organization.
The deal represented by both the companies is shared among both the companies. This includes even the give and take of the experienced workers. The workers of one company are exchanged with the other company under certain terms and the conditions.
The legal dealings should always be done in the authority of the law and no steps must be taken to go against the rules and the regulations. This includes both the companies that are in the legal contract. Any changes in the contracts must be done in the presence of the owners of all the companies.
The one who goes against the law may end up in losing his organization or will be forced to give up his own possess on the organization.
Being A Successful Businessman
There are hundreds of self help books available in the market which supposedly teaches you how to be better at your job or how to be better at doing business and the like. But the only business these books help to run successfully is that of the printing house that publishes these books.
There are probably very few people who read a how to book on business and became a successful one overnight. For that matter there are very few people, if any who read any such book about any profession and became successful at it. The truth is that there are no shortcuts to these things. There is no shortcut to success or greatness. Does this mean that it is pointless to give or ask for advice about doing business well? No.
There are always some basic principles to be followed in any field when you try for success. These are not guaranteed shortcuts of any kind. You can t simply tick them off a list and sit back and expect success to come to you. But they are things that are unavoidable if you attempt to reach great heights. So what are the things that are necessary for building a successful business? The first and foremost is initiative. You need to have that burning desire, that drive to go for it and start something by yourself.
You need to have the courage to take the road not often tread and back yourself- your judgment and your choices. The second important quality is the ability to take failure in your stride and still keep trying. Success won t come overnight when you run your own business. There is no manual to follow when you are the one doing what you are doing for the first time. So you have to be willing to retrace your own steps and correct it when necessary.
The Importance Of Delegation In Business
There are lots of entrepreneurs and businessmen in the world but not many of them build great business empires. Why is this? Of course, one would think that talent plays a major role. Not everyone in the world can excel at whatever they do. Every field of human endeavor has some who excel while most people remain mediocre. But I am not talking about businessmen who were mediocre to begin with. I m talking about men who are exceptionally good at running their small businesses but yet fail to take it to the next level.
What are the reasons for this? I do not presume to say that there is only one real reason for this. Of course there may be a hundred reasons. Maybe their business idea itself is not scalable, maybe they are not that ambitious, there are a hundred such maybes. But what I ve noticed is that there is one factor which cripples businesses run by people who meet all the other criteria for being successful businessmen- that is the ability or wisdom to delegate responsibility.
This is not something to do with talent, but more with personal character. Most of these small businessmen can manage their businesses exceptionally well, perhaps better than big corporations. But they are cripples by their reluctance to delegate responsibility for something they used to handle personally to someone else and take a more supervisory role. This is essential for growth. No matter how good a person is, he or she has limitations.
What if you want to start multiple plants or branches? Maybe they can manage a few themselves but at what point does it become too much for one person? In their reluctance to let go and trust other people, they spoil their own chances of building a business empire. So if you want to go big, learn to delegate first and not try to do it all yourself.
The Importance Of Risk Taking In Business
What is it that makes some men quite their jobs and starts their own business? Why is that many who wants to do exactly this still choose to stay in their jobs and receive monthly pay checks? Of course there are a lot of factors in whether you go start a business or not. You need an idea to start with. And you need the financial freedom to do it. If you are neck high in debt already, no matter how much you want to be an entrepreneur; you may have to stay in your steady job instead. But even when all these conditions are met, some who can potentially make it big on their own choose not to take that step.
This is the final hurdle one has to cross before one becomes one s own boss. That is, you need to have that ability to take a risk, make a gamble and bet on yourself and your own judgement. Only those who have this ability take the final leap and go their own way. Nobody can teach you how to get that ability. You have to inculcate it yourself.
First of all you need to find the courage to back yourself. You need to back your decisions even when the going is rough. Sometimes your decisions will be wrong, but you have to learn to look ahead and say, I made the best decision I could make at that point. If it didn t work out, there s no point in looking back and crying.
You have to move on and try to make your next decision better, instead of keeping on crying about spilled milk. Because every successful entrepreneur in the world has made mistakes before becoming successful, and even after that. But when you are running your own show, you make even your mistakes on your own terms.
In what all ways can you make a loss in your business? If you do not complete an order from the customer on time, if you do not price your products or services in a way as to cover your expenses, if you take unexpected losses, is that all? Have you ever considered the loss you incur when you let an opportunity slip by?
The concept of opportunity cost is an important one in business. The problem is that it often can t be assigned a dollar value. You often can t know the potential of a business you chose not to do. But even though it is intangible it is still a loss because that is money you could have made if you had made the right choice. The loss won t show on you balance sheet as it is money you never held in your own hand but it is money that you could have held if you had the initiative to seize the opportunity when it presented itself. A businessman cannot afford to let such opportunities pass by.
When you have your head in the sand, a competitor could be utilizing the opportunity that you did not recognize. It is not enough that you do what you are doing right now well and ignore everything else happening in the world. The only thing that is constant is change. If you do not adapt to the changing world, you will be left behind while others who were perceptive enough and quick enough takes all the spoils.
A good businessman should thus always be on the lookout for doing things in a better way and for new chances. The window will be small and available only to those who are quick on their feet. If you want to stay ahead you have to keep looking ahead.
Adapting To Change
There are very few businesses in the world that has lasted for centuries. Many successful business enterprises decline over a period of time, no matter how good they used to be. The reason for this is failure to adapt to change. The word is ever changing. New technologies revolutionize life on earth from time to time. When revolutionary changes occur, they change the entire way businesses are done. For example the invention of the internal combustion engine made all businesses related to the production and use of steam engines obsolete.
The businessman is faced with a difficult choice in such an instance. He may have worked for years on his way of doing thing and invested a lot in it, both in terms of money and emotionally. It is often difficult to accept that the old ways have become redundant and step out into the brave new world and start again. But this is exactly what one must do to stay competitive.
If your definition of your business is a narrow one, concerned with one particular kind of product or technology, you are likely to suffer in future. The pager may have been an excellent invention but the invention of the cell phone made it obsolete. But smart companies let go of the redundant product and go for the new one. In order to do this, one must take care not to get too attached to the products or processes one has been using for long.
Some amount of attachment is understandable but you need to have a sort of detached attachment so that you can recognize when change is absolutely necessary and act in time to move with the world. It is often said that the only thing constant in the world is change. This is especially true for business.
The Role Of Business In Society
For a long time there was always an unfair perception of business as something greedy and money grubbing and a sort of necessary evil. Philosophies such as socialism and communism especially made people tend to hold such views about business. Other aspects of life in a society such as art and education were held in high esteem while businesses and businessmen were looked down upon. However this was a completely unfair way of looking at things and one that has mostly changed over the years.
Nowadays people have come to realize that business is the motor running the world, whether it is glorified or not. Ultimately business is what puts food on the table and allows all these other subtler expressions of human nature to flourish. How many artists or authors would be able to continue with their work if they could not sell their work? How many musicians would continue to compose music that touches our soul if it was impossible to make a profit out of music?
Some people dislike thinking of things in terms of profit and loss; however there is no real contradiction. If you think about it even when you are enjoying the music of Mozart you are making a profit in a way. You paid a certain amount of money for the record or CD and you are being rewarded with more than the value of that money. Otherwise why would you buy it at all? Out of your generosity to the company that makes the records?
Simply put, business is the practical aspect of everyday life. Account books and ledgers may not seem glamorous but they are required for society to keep functioning the way it is functioning and improve if possible. Business is an undeniable part of society and is the engine running it along the tracks of time.
Marketing For A Social Cause
Marketing is one of the cornerstones of modern business. It is what connects businesses to the end users who buy products or subscribe to services. Without proper marketing, no business would succeed no matter how great the idea behind it or the quality of the products or services offered. Hence it is logical that the same should follow for charities and social causes. No matter how great the sentiment behind it or the need for the charity, nobody would contribute to any cause unless it is marketed properly. What all does marketing for a social cause entail?
First of all people should be made aware of the cause. About the ground realities and how their help is needed to fix it. Nobody would contribute to a charity that aims to help children in Africa if the potential contributors do not know anything about the plight of those children. So the first aim is to build awareness. The second aim is to market the organization working for this cause. Once people are aware of the need, they should be made aware of how they can contribute through this organization. In short they should be provided with a way to help out.
The third thing the marketing campaign should do is to convince people to extend a helping hand. Not everyone will immediately contribute just because they hear people need help. For this proper marketing is needed. Many non profit organizations have ad campaigns with touching advertisements designed to make people feel the pain of those who can be served by the organization.
Such campaigns can loosen people s purse strings and drive them to contribute. Hence anyone running a charity or trying to campaign for a social cause would do well to learn how to market their organization properly. That is the only way they can do what they want to do.
Corporate Social Responsibility
Corporate Social Responsibility or CSR in short is one of the most talked about changes in the way business is done now. Many countries now require by law companies above a certain size to account for CSR. It is supposed to inculcate a culture of giving back to society. However it is an initiative that is fiercely debated.
Companies often argue that what is the need for them undertaking socially useful initiatives when they are already supposed to pay taxes to the government for all this. Isn t it the responsibility of the government to do such things? Shouldn t the government improve their efficiency instead of forcibly outsourcing social work to private companies by way of legislation? These are the arguments given against CSR.
But whether companies like it or not, CSR is here to stay. What companies should realize is that there are many ways they can utilise their CSR activities to improve their image and brand recognition among the people. Many companies campaign for social causes through advertisements and promotional programmes. Not only does the cause get the needed publicity, the company also benefits from the campaign.
People tend to trust companies that actively engage in social causes and this trust shows in the bottom-line of the companies accounts when people choose their products or services when faced with a choice. People seldom have time to undertake extensive research before buying a product. They mostly go by the brand name.
If a company has a good reputation in society, they choose that company without asking too many questions. Companies regularly invest huge amounts for this kind of trust building. Haven t we all seen advertisements by companies claiming to be the most reliable or trustworthy one out there? However when a company actively campaigns for a social cause, people tend to trust the company. Hence CSR can be a boon if used properly by companies.