As
student in the Faculty of Business Management or science, business represents a
distinct and responsive kind of undertaking that has economic implication and
rewards. Iyanda (1988) defined business in a general sense as the word “used to
mean trade or commerce- the art of “buying and selling”, but was quick to add
student in the Faculty of Business Management or science, business represents a
distinct and responsive kind of undertaking that has economic implication and
rewards. Iyanda (1988) defined business in a general sense as the word “used to
mean trade or commerce- the art of “buying and selling”, but was quick to add
that with technological innovations and the consequent emergence of big
industrial firms, the impact of business transcend the economic.
For Illesanmi
(2002), the word business describes “the social institutions by which economic
efforts are organized”. He says these institutions represents “arrangements devised
to carry on the production, marketing, financing and other activities that
provide goods and services to people”.
(2002), the word business describes “the social institutions by which economic
efforts are organized”. He says these institutions represents “arrangements devised
to carry on the production, marketing, financing and other activities that
provide goods and services to people”.
Hooper
(1961) in his contribution says business represents the “the whole complex
field of commerce and industry, the basic network of ancillary services –
distribution, banking, insurance, transport and so on, which serve and
inter-penetrate the world of business as a whole”.
(1961) in his contribution says business represents the “the whole complex
field of commerce and industry, the basic network of ancillary services –
distribution, banking, insurance, transport and so on, which serve and
inter-penetrate the world of business as a whole”.
Weimer
(1965) sees business “as the exchange of good, money or services for manual
benefits”
(1965) sees business “as the exchange of good, money or services for manual
benefits”
The
last three definitions can be seen to have a great deal of edge over that of
Iyanda’s 19th century conception. Thus over the years, one can
notice that the frontiers of business are expanding on account of two variables
to wit: innovation and technology – which constantly change the face of
business.
last three definitions can be seen to have a great deal of edge over that of
Iyanda’s 19th century conception. Thus over the years, one can
notice that the frontiers of business are expanding on account of two variables
to wit: innovation and technology – which constantly change the face of
business.
Whereas,
Illesanmi and Hooper’s view offers a broader and more in-depth definition of
the concept of business, that of Weimer (1965) is the only one that talked
about “Mutual Benefits”. This exposes the shortcomings of the above two. This
perhaps brings anchorage on the actual conception of what and how business
should be conceived, the limitation of the “the exchange of goods and services”
not withstanding in the early part of Weimer’s definition.
Illesanmi and Hooper’s view offers a broader and more in-depth definition of
the concept of business, that of Weimer (1965) is the only one that talked
about “Mutual Benefits”. This exposes the shortcomings of the above two. This
perhaps brings anchorage on the actual conception of what and how business
should be conceived, the limitation of the “the exchange of goods and services”
not withstanding in the early part of Weimer’s definition.
For
us students and practitioners of business, there is need for a change of
orientation. Business should transcend just the “buying and selling” and
“profit-making” philosophy. Business should focus on wealth maximization
through the process of deliberate and planned creation of value and the impact
of such value on society and the process of deliberate and planned creation of
value and the impact of such value on the society and the economic system. We
must focus on purpose and value accentuation, which connotes satisfaction to
people and society.
us students and practitioners of business, there is need for a change of
orientation. Business should transcend just the “buying and selling” and
“profit-making” philosophy. Business should focus on wealth maximization
through the process of deliberate and planned creation of value and the impact
of such value on society and the process of deliberate and planned creation of
value and the impact of such value on the society and the economic system. We
must focus on purpose and value accentuation, which connotes satisfaction to
people and society.
This
should be so if Peter Druckers’s contribution and rationalization should
continue to have a meaning and retain releverance. Drucker’s (1973) says that
the “reason or purpose for the existence of any organization is the society”.
Thus, whether they are manufacturing organizations, service organizations, or
simply providers of goods put forward for patronage, the basic fundamental that
warrant their existence is the society’s needs and problems. Thus society is
the reason/purpose why any economic activity can and should exist. This
position of business is apt.
should be so if Peter Druckers’s contribution and rationalization should
continue to have a meaning and retain releverance. Drucker’s (1973) says that
the “reason or purpose for the existence of any organization is the society”.
Thus, whether they are manufacturing organizations, service organizations, or
simply providers of goods put forward for patronage, the basic fundamental that
warrant their existence is the society’s needs and problems. Thus society is
the reason/purpose why any economic activity can and should exist. This
position of business is apt.
Therefore
business in the light of the above can be defined as a “set of purposeful
economic activities designed to create value in a society and impact on the
economic system with profit as necessary fallout and reward for factors
(resources) sacrificed.”
business in the light of the above can be defined as a “set of purposeful
economic activities designed to create value in a society and impact on the
economic system with profit as necessary fallout and reward for factors
(resources) sacrificed.”
A
breakdown of the definition will reveal the following:
breakdown of the definition will reveal the following:
1.
A set of purpose economic activities:
A set of purpose economic activities:
v That business should exist for a reason, objective
or purpose
or purpose
v That there are functions to be discharged for the
reason of the objectives set i.e. the activities
reason of the objectives set i.e. the activities
v That the activities should transcend buying and
selling in addition to the organic functions of marketing, production, finance,
personnel and should accommodate:
selling in addition to the organic functions of marketing, production, finance,
personnel and should accommodate:
v Manufacturing and service activities/industries
v Wholesaling and service activities/industries
v Retailing and service activities/industries
v Non-profit public and private
activities/organization like NGO’s churches and mosque and other philanthropic
endeavours
activities/organization like NGO’s churches and mosque and other philanthropic
endeavours
v Intangible services: banking, insurance, medical,
legal service etc
legal service etc
v But extension of illegal’s: prostitution, armed
robbery, 419 etc
robbery, 419 etc
2.
Value Creation/ Delivery
Value Creation/ Delivery
The definition recognizes that:
v The creation of value is a worthwhile purpose for
existence but non profit making
existence but non profit making
v The creating and delivering of satisfaction through
goods/services will ensure continuity in business and avoid illiquidity and
bankruptcy
goods/services will ensure continuity in business and avoid illiquidity and
bankruptcy
v That value creation will ensure a high standard of
living to society
living to society
v That delivering satisfaction will oil the wheel of
the economic system and thus ensure economic growth
the economic system and thus ensure economic growth
v That high standard
of value delivery will avoid among others; inferior goods/services,
inflation, stagflation, depression and general endemic poverty in society
of value delivery will avoid among others; inferior goods/services,
inflation, stagflation, depression and general endemic poverty in society
3.
Wealth & Profit Creation
Wealth & Profit Creation
This definition recognizes that:
v It is better to maximize wealth instead of profit
v Profit is not the reason/purpose of the activities
we engage in
we engage in
v Profit serve as an incentive to continue in
business
business
v Resource must be sacrificed and allocated
efficiently in pursuit of economic activities and revenue must be marginally
greater than cost
efficiently in pursuit of economic activities and revenue must be marginally
greater than cost