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Requisites of Success In Business

Business has become a very complex activity in the modern era of change. A business does not operate in vacuum ; it is constantly under the pressure of a large number of enviournmental forces. These forces create difficulties for any business enterprise. A successful business enterprise is one which has appropriate inter-action with the environmental forces and which is able to manage the achievement of its objectives effectively and efficiently. Such an enterprise not only survives in the Market. But is also the proceed towards growth and prosperity.

Growth is an import objective of business enterprises. They seek to become bigger each year in earnings, assets, market size or influence. The growth objective can be achieved if a business enterprise takes care of the following requisites:

(i)    Clear-cut Objectives. The objectives of a business enterprise must be well-defined. The primary as well as the secondary objectives should be laid down separately. Objectives should also be laid down in various areas of business on the its survival and growth depends. These areas include production, marketing, financing, purchasing, research and development, etc. The objectives in these areas should be in harmony with the overall business objectives. The objectives should be capable of being achieved during a specified period.

(ii)    Location, Layout and Size. These factors also influence the success of a business enterprise to a great extent. Proper location will reduce the cost of operation. Proper layout will increase efficiency and avoid wastage of various kinds. Optimum size will lead to lowest average cost of production. Any mistake committed in regard these factors may prove to be fatal for the survival of the enterprise.

(iii)    Effective Business Planning.
Efficient business planning is based on sales forecasting. The entrepreneur must make an accurate forecast of sales in the forthcoming year if he wants to make sound plans. Separate plans should be prepared for every department of the enterprise. The departmental plans should be coordinated with the master plans of the enterprise. Sound planning aims at running the business enterprise smoothly and dealing with the future contingences efficiently and effectively.

(iv)    Sound Organization.
Sound organization is necessary for the accomplishment of business objectives. Organization deals with division of work among the personnel of the enterprise in such a way that proper coordination of organizational structure should be laid down to show authority and responsibility an the limits of his authority and should also known relevance of his job for the achievement of the business objectives. The management of the business should also make available machines and equipment, tools, raw materials, etc. of proper type of the workers.

(v)    Financial Planning. Finance is the life-blood of a modern business. The finance function of the business should be efficiently managed. business required funds for long-term use. Efficient financial management deals with arranging sufficient long-term and short-term capital. It is also the responsibility of financial management to see that funds are invested in worth-while projects and ventures. The capital structure should also be a balanced one. It should contain various types of securities, namely, equity shares, preferential shres and debentures in a proper proportion.

(vi)    Efficient Marketing. The survival of a business depends upon the acceptability of its goods and services by the customers. Therefore, approach to marketing should be customer oriented. The marketing department should conduct market survey to understand then needs of the customers and convey them to the production department so that goods and services of right specifications and quality are produced. It should be endeavor of every business to product and sell those goods and services which will satisfy the needs of the customers.

(vii)    Dynamic Management. The management is an agency which can help a business enterprise to achieve its objectives or goals. It is of utmost importance that the business is managed by competent managers who are efficient and have dynamic outlook. Good management will get the desired result form the people working in the enterprise and will coordinate the working of various segments of the enterprise.

(viii)    Human Relations.
There should always be good relations in the enterprise. An effective two-way communications system between the management and the workers should be installed so that reactions, suggestions and evinces of the workers are known immediately. Management should treat the workers as human beings and should take steps for their welfare. It should motivate the employees by providing them financial as well as non-financial incentives. These steps would lead to building a work-force which will co-operate with the management for the realization of business objectives.

(ix)    Research and Innovation.
Every business must spend a part of its earnings on research and innovation activates so that it may offer better products to the customers at reasonable prices. This will rise the standard of living of the society. It is also essential for the business to engage in research and development activities. This will lead to finding of new production processes which are cheaper than the existing ones.

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