Essential Functions of a Business


Business is an economic activity related to the production and distribution of products or services. Its structure varies widely from a single-ownership sole proprietorship to large corporations that provide shareholder equity to their owners. It can also include non-profit organizations such as charitable societies and educational institutions.

Regardless of the size and type of business, it is considered to be in the “business of selling”. To succeed in this field, the company needs to develop a unique offering that is attractive to potential buyers, and this requires the help of knowledgeable sales and marketing professionals. A good understanding of the current market conditions and customer requirements is also necessary to ensure that the right strategies are implemented.

The primary social objective of any business is to make products and services that satisfy the needs of the customers in a cost-effective manner. In order to achieve this goal, businesses should create quality products and deliver them on time. It is also important for the business to be able to keep up with the ever-changing technological trends and customer demands. This is possible only if the business invests in R&D activities.

Another essential function of a business is to provide jobs to people. This is especially vital in a country like India, where unemployment is a major concern. It is important for businesses to offer job opportunities to educated and skilled individuals. This will enable them to contribute to the development of society in a positive way. This is why many businesses have been involved in building libraries, dispensaries, hospitals and sports bodies, etc.

One of the biggest problems facing business today is the fact that people have lost trust in the industry. In the past, business was seen as a force for good in society, but now it is perceived as being driven by greed and selfishness. People believe that executives are only in it for their own financial gain.

It is imperative that business starts to rebuild this trust, and it begins with addressing the issue of pay. It is essential that the compensation of top managers be linked to the performance of the company, and not to the individual’s share price. It is also critical that companies stop treating employees as costs, and start viewing them as assets.

In addition to improving the compensation of senior management, it is also important that business takes a proactive approach to environmental and social issues. This will require a cultural change within the industry. Instead of simply passing laws and imposing regulations, business must show leadership in these areas. If it does not, the future of business may be at risk. This is because the world cannot sustain a business that treats people as disposable commodities. This article was written by Divya Kumar.