This is necessary because an organization cannot operate in the entire segments of a chosen industry. Business boundaries keep changing and defining Business is a dynamic situation and becomes an exacting exercise and it needs to be re-casted over time again and again. In his 1932 text, “An Essay on the Nature and Significance of Economic Science,” Robbins said the following about the subject: “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.”, The modern definition, attributed to the 20th-century economist, Paul Samuelson, builds upon the definitions of the past and defines the subject as a social science. Understanding business is vital to answering the questions, “What is our Business? For authors whose first paper is less than 10 years old, having 25% of the papers announced in NEP be announced in this report is sufficient. Characteristics of Business Economics 3. Only wants change—and they are limitless. Abell suggests that a business may be defined along three dimensions- customer groups, customer functions, and alternative technologies. It refers to a political ideology that rejects the practice of government intervention in an economy. – Boono & Krutz. Since an organization cannot compete along all these dimensions, it is better to define its business in such a way that it derives competitive advantage out of this definition. It must go beyond the immediate product, beyond the immediate competitors, beyond the immediate market boundaries. Intel – We are in the business of computing technology and to consistently develop the artifice/building blocks of computing technology for the entire computer industry of the world is our business. Managers integrates the economic theories with the business practises and takes decisions as well as plans the activities of business. A person may be busy in playing computer games or watching TV. What was the study of household management to Greek philosophers like Aristotle (384-322 BC) was the “study of wealth” to the mercantilists in Europe between the sixteenth and eighteenth centuries. Facilitates functional policy implementation. Business economics applies these tools to the management of business. Lionel Robbin, another British economist, defined economics as the subject that studies the allocation of scarce resources with countless possible uses. Customer focus- Office Communication with high priced and low priced equipments, marketing services of maintenance and per copy price. v. Finally, Marshall’s definition ignores the fundamental problem of scarcity of any economy. For example, Hero Cycles has defined its customer segment in terms of people in lower-income group located in semi-urban and rural areas. It is thus clear that the subject economics was first studied in ancient Greece. In his bid to raise economics to the status of a positive science, Robbins deliberately downplayed the importance of economics as a social science. At the product group level, the business has been defined in terms of market segment and how a particular segment may be served, while at the corporate level, it has defined its business as engineering, as contrast to its earlier definition of manufacturing, to focus more sharply on the marketing of the products rather manufacturing custom-built products. Thus, scarcity of resources is the fundamental economic problem to any society. Abell suggests defining business along three dimensions: Customer groups refer to ‘who’ is being satisfied.
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