EduNexus...

Unit-1: Business and its forms

2012-12-02T22:00:00.002+05:30

BUSINESS

Literally, the word “business” means the state of being busy. Generally, the term business includes all human activities concerned with earning money. In other words, business is an activity in which various persons regularly produce or exchange goods and services for mutual gain or profit. The goods and services produced or purchased for personal use are not included in “business”.

Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants. It is any particular occupation or employment engaged in for livelihood or gain, as agriculture, trade, art, or a profession.

Definitions

Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."

According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."

Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."

Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.

Features of Business

1. Exchange of goods and services

All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.

2. Deals in numerous transactions

In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or two transactions.

3. Profit is the main Objective

The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman.

4. Business skills for economic success

Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business.

5. Risks and Uncertainties

Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. There are also uncertainties, such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman.

6. Buyer and Seller

Every business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller.

7. Connected with production

Business activity may be connected with production of goods or services. In this case, it is called as industrial activity. The industry may be primary or secondary.

8. Marketing and Distribution of goods

Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity.

9. Deals in goods and services

In business there has to be dealings in goods and service.

Goods may be divided into following two categories :-

Consumer goods: Goods which are used by final consumer for consumption are called consumer goods e.g. T.V., Soaps, etc.

Producer goods: Goods used by producer for further production are called producers goods e.g. Machinery, equipments, etc. Services are intangible but can be exchanged for value like providing transport, warehousing and insurance services, etc.

10. To Satisfy human wants

The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction.

11. Social obligations

Modern business is service oriented. Modern businessmen are conscious of their social responsibility. Today's business is service-oriented rather than profit-oriented.

BUSINESS AS A SYSTEM

A system denotes a group of interrelated components or sub-systems which functions in a co-ordinate way to attain some specific objectives. A system consists of a number of sub-systems and the functioning each sub-system depends on other sub-systems. Business is regarded as system because it consists of a number of sub-systems both within the business and its environment. The sub-systems are inter-related and operated in a co-ordinate manner to make the whole as a business system. The followings are some of the sub-systems of the business:

● Finance system concerned with finance functions of enterprise.

● Personnel system concerned with recruitment, selection and training of personnel.

● Production system engaged with production functions.

● marketing system engaged with marketing functions.

● R & D system concerned with research and development functions.

Inputs

Business system inputs involve ideas, time, funding materials, equipment, rules, data and information, concepts, beliefs and values (physical, human and conceptual). These contribute to the structuring of the business and are involved in movements across the business's boundary. Arrangements (people, structures and processes) must be created to receive and deal with such inputs, determining which are important and how they should be handled. Thus we can consider how "the receivers" regard such inputs, their urgency and significance.

The inputs can be represented by:

1. entrepreneurial ideas and decisions

2. finance

3. market and customer information

4. available technology (tools, machines, methods, forms of automation) to use

5. social and cultural values and attitudes

6. staff abilities and expectations

7. events from another system which the business must receive and respond to e.g. a budget statement, government pressure, a coup in a client country

Processes

Processes are system arrangements and mechanisms - human and technical - which are designed and implemented to organise and realise the business's purposes These may be

1. functional departments(production, marketing, finance, HR, etc)

2. transformational(machinery, etc)

3. information-based,

4. social and political

5. regulative and control-oriented.

Outputs

The outputs may be physical (goods and services) or conceptual (ideas, influences, information-based outputs) Imagine that outputs flow from the business into the external environment where they are received by "stakeholders". In addition when we consider the sub-systems of the business's internal environment, the outputs from one sub-system e.g. production become the inputs to another

In a public sector organisation - the outputs are socially and politically and socially defined. Yet value for money, cost efficiency and service delivery ratios are also used for performance measurement, evaluation and resource allocation. We can look at responsiveness to problems and the success of policies and practices which "the public" (if identifiable) find acceptable and worth paying for. Such outputs relate to social and community benefits and may be at odds with economic criteria

Business Environment

The term Business Environment is composed of two words ‘Business’ and ‘Environment’. In simple terms, the state in which a person remains busy is known as Business. The word Business in its economic sense means human activities like production, extraction or purchase or sales of goods that are performed for earning profits.

On the other hand, the word ‘Environment’ refers to the aspects of surroundings. Therefore,Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects the functioning of organization. Business Environment has two components:
1. Internal Environment
2. External Environment

Internal Environment: It includes 5 Ms i.e. man, material, money, machinery and management, usually within the control of business. Business can make changes in these factors according to the change in the functioning of enterprise.

External Environment: Those factors which are beyond the control of business enterprise are included in external environment. These factors are: Government and Legal factors, Geo-Physical Factors, Political Factors, Socio-Cultural Factors, Demo-Graphical factors etc. It is of two Types:
1. Micro/Operating Environment
2. Macro/General Environment

Micro/Operating Environment: The environment which is close to business and affects its capacity to work is known as Micro or Operating Environment. It consists of Suppliers, Customers, Market Intermediaries, Competitors and Public.

(1) Suppliers: – They are the persons who supply raw material and required components to the company. They must be reliable and business must have multiple suppliers i.e. they should not depend upon only one supplier.

(2) Customers: - Customers are regarded as the king of the market. Success of every business depends upon the level of their customer’s satisfaction. Types of Customers:
(i) Wholesalers
(ii) Retailers
(iii) Industries
(iv) Government and Other Institutions
(v) Foreigners

(3) Market Intermediaries: - They work as a link between business and final consumers. Types:-
(i) Middleman
(ii) Marketing Agencies
(iii) Financial Intermediaries
(iv) Physical Intermediaries

(4) Competitors: - Every move of the competitors affects the business. Business has to adjust itself according to the strategies of the Competitors.

(5) Public: - Any group who has actual interest in business enterprise is termed as public e.g. media and local public. They may be the users or non-users of the product.

Macro/General Environment: – It includes factors that create opportunities and threats to business units. Following are the elements of Macro Environment:

(1) Economic Environment: - It is very complex and dynamic in nature that keeps on changing with the change in policies or political situations. It has three elements:
(i) Economic Conditions of Public
(ii) Economic Policies of the country
(iii)Economic System
(iv) Other Economic Factors: – Infrastructural Facilities, Banking, Insurance companies, money markets, capital markets etc.

(2) Non-Economic Environment: - Following are included in non-economic environment:-
(i) Political Environment: - It affects different business units extensively. Components:
(a) Political Belief of Government
(b) Political Strength of the Country
(c) Relation with other countries
(d) Defense and Military Policies
(e) Centre State Relationship in the Country
(f) Thinking Opposition Parties towards Business Unit

(ii) Socio-Cultural Environment: - Influence exercised by social and cultural factors, not within the control of business, is known as Socio-Cultural Environment. These factors include: attitude of people to work, family system, caste system, religion, education, marriage etc.

(iii) Technological Environment: - A systematic application of scientific knowledge to practical task is known as technology. Everyday there has been vast changes in products, services, lifestyles and living conditions, these changes must be analysed by every business unit and should adapt these changes.

(iv) Natural Environment: - It includes natural resources, weather, climatic conditions, port facilities, topographical factors such as soil, sea, rivers, rainfall etc. Every business unit must look for these factors before choosing the location for their business.

(v) Demographic Environment :- It is a study of perspective of population i.e. its size, standard of living, growth rate, age-sex composition, family size, income level (upper level, middle level and lower level), education level etc. Every business unit must see these features of population and recongnise their various need and produce accordingly.

(vi) International Environment: - It is particularly important for industries directly depending on import or exports. The factors that affect the business are: Globalisation, Liberalisation, foreign business policies, cultural exchange.

Characteristics:-

1. Business environment is compound in nature.

2. Business environment is constantly changing process.

3. Business environment is different for different business units.

4. It has both long term and short term impact.

5. Unlimited influence of external environment factors.

6. It is very uncertain.

7. Inter-related components.

8. It includes both internal and external environment

BUSINESS OBJECTIVES

An objective denotes a goal for the achievement of which efforts are directed. Every business has its sets of objectives. The objectives of the business are covered under the following categories.

Organic objectives:

The Organic objectives relates to survival, growth and diversification of organization.

The followings are some of the organic objectives of the business:

I. The business should have the prime objective to survive. Steps will be taken in such a manner that the business should survive for the long period.

II. The business should experience growth in different stages of its operation. From the point of growth, the business has been compared to human anatomy. As human beings grow from infancy to childhood, adolescence, adult-hood and maturity, the business experience growth during the course of modernization and diversification.

III. The business enterprise always intends to get recognition and prestige. This can be attained when qualitative goods are supplied to the consumers at a reasonable price.

Economic objectives:

The Economic objectives aims at maximizing material wealth or financial resources of the organization.

The following are the economic objectives of a business:

● Every business is started for earning profit because profit is the acid test of every business.

● Earning of profit can be made when exchange of goods takes place. so every business has the objective of production of goods.

● The primary aim of business is to effect sale for the product produced. This can be made possible through creation of market. So every business has the objective of creating market for the products.

Human Objectives:

Human objectives require careful consideration and well-being of shareholders, consumers and employees. The following are the human objectives of the business:

● The business should render welfare to its employees.

● The consumer should be supplied with qualitative products so that they will feel satisfied.

● The business should have the objective of providing enough satisfaction to the shareholders. They should feel that their money is not misused by management.

● The business should have the objective of being helpful to the government. The business is the main contribution of funds to the government.

Social Objectives:

The business has certain social responsibilities and is required to undertake those activities which are essential for the betterment of the society.

The following are some social objectives of the business:

● To ensure continuous supply of goods to meet the requirement of the society.

● The business should help the government in formulating the policies of socialistic pattern of society.

● The business should create more employment opportunities.

● It should ensure effective utilization of natural resources.

National Objectives:

The business enterprise contributes substantially for the upliftment of the nation. The followings are the national objectives of the business:

● The business should help in the development of small scale industries.

● The business should aim at improving the economic position of the society.

● The business should help in providing skilled personnel for the country

STRUCTURE/COMPONENTS/SCOPE OF BUSINESS

Business structure consists of a number of components involving several activities. Business activities can be broadly classified into three categories: industry, commerce, and services.

I. Industry:

The production side of business activity is referred as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products.

The products are consumer goods as well as producer goods. Consumer goods are goods, which are used finally by consumers. E.g. Food grains, textiles, cosmetics, VCR, etc. Producer's goods are the goods used by manufacturers for producing some other goods. E.g. Machinery, tools, equipments, etc.Expansion of trade and commerce depends on industrial growth. It represents the supply side of market.

Classification / Types of Industries ↓

There are various types of industries. These are mentioned as follows :-

1. Primary Industry

Primary industry is concerned with production of goods with the help of nature. It is a nature-oriented industry, which requires very little human effort. E.g. Agriculture, farming, forestry, fishing, horticulture, etc. Primary industry can be basically classified into

● Genetic Industry

Genetic industries are engaged in reproduction and multiplication of certain species of plants and animals with the object of sale. The main aim is to earn profit from such sale. E.g. plant nurseries, cattle rearing, poultry, cattle breeding, etc.

● Extractive Industry

Extractive industry is concerned with extraction or drawing out goods from the soil, air or water. Generally products of extractive industries come in raw form and they are used by manufacturing and construction industries for producing finished products. E.g. mining industry, coal mineral, oil industry, iron ore, extraction of timber and rubber from forests, etc.

2. Secondary Industry:

Secondary industries are those industries, which are generally involved in transforming raw materials or semi processed materials into finished products. They are also concerned with the construction of building, roads and canals. It depends upon the output of the primary industry. The secondary industries are as follows

● Manufacturing Industry

Manufacturing industries are engaged in transforming raw material into finished product with the help of machines and manpower. The finished goods can be either consumer goods or producer goods. E.g. textiles, chemicals, sugar industry, paper industry, etc.

● Construction Industry

Construction industries take up the work of construction of buildings, bridges, roads, dams, canals, etc. This industry is different from all other types of industry because in case of other industries goods can be produced at one place and sold at another place. But goods produced and sold by constructive industry are erected at one place.

II. Commerce

Commerce is a branch of business. It is concerned with the exchange of goods and services. It includes all those activities, which directly or indirectly facilitate that exchange.

Commerce looks after the distribution aspect of the business. Whatever is produced it must be consumed, to facilitate this consumption there must be a proper distribution channel. Here comes the need for commerce which is concerned with the smooth buying and selling of goods and services.

Commerce can be classified into two broad categories namely trade and aids to trade

A. Trade:

Trade is the main part of commerce. It involves transfer or exchange of goods and services for money or money's worth. The manufacturers or producer produces the goods, then moves on to the wholesaler, then to retailer and finally to the ultimate consumer. Trade is essential for satisfaction of human wants, Trade is conducted not only for the sake of earning profit; it also provides service to the consumers. Trade is an important social activity because the society needs uninterrupted supply of goods forever increasing and ever changing but never ending human wants.

There are two types of trade namely; Internal (local/home) trade and International or foreign trade.

1. Internal Trade

Internal trade is also known as Home trade. It is conducted within the political and geographical boundaries of a country. It can be at local level, regional level or national level. Hence trade carried on among traders of Delhi, Mumbai, etc. is called home trade.

Internal trade can be further sub-divided into two groups, viz. retailing and wholesaling

Retailing is the buying and selling of goods and services in small quantities. The trader involved in this form of trade is called a Retailer.

Wholesaling is the buying and selling of goods and services in large quantities. The trader involved in this kind of trade is known as a Wholesaler.

2. External Trade

External trade also called as Foreign trade. It refers to buying and selling between two or more countries. For instance, If Mr.X who is a trader from Mumbai, sells his goods to Mr.Y another trader from New York then this is an example of foreign trade.

External trade can be further sub-divided into three groups, viz.,

1. Export Trade : When a trader from home country sells his goods to a trader located in another country, it is called export trade. For e.g. a trader from India sells his goods to a trader located in China.

2. Import Trade : When a trader in home country obtains or purchase goods from a trader located in another country, it is called import trade. For e.g. a trader from India purchase goods from a trader located in China.

3. Entrepot Trade : When goods are imported from one country and then re-exported after doing some processing, it is called entrepot trade. In brief, it can be also called as re-export of processed imported goods. For e.g. an indian trader (from India) purchase some raw material or spare parts from a japanese trader (from Japan), then assembles it i.e. converts into finished goods and then re-exports to an american trader (in U.S.A).

B. Aids To Trade

Aids to trade are commercial services or activities that assist trade to move on smoothly with less or no difficulties at all. There are six aids to trade namely;

Ø Advertising

Ø Banking

Ø Transport

Ø Insurance

Ø Communication

Ø Warehousing.

Advertising helps by

– informing the members of public on the availability of goods and services on the market.

– persuading potential customers to buy the goods and services available.

– informing the public on job vacancies with a view of recruiting new staff

– spreading awareness on matters of public interest.

Banking helps by

–Financing the traders by means of loans and overdrafts

–Safeguarding the trader’s money and other valuables.

–Facilitating the payment of huge sums through cheques

Transport helps by

–Delivering equipment and raw materials to industries.

–Delivering finished goods to local and international markets.

–Moving workers to and from their workplaces to enhance production

–Carrying company executives and agents to far places in order to meet their clients.

Insurance helps to

–Compensate/ restore/indemnify traders in case of a risk occurring.

–Protect traders against financial losses resulting from fire, theft, etc

–And also against claims from third parties.

–Provide confidence or encouragement to traders to go into huge businesses without fear of making a loss.

Communication helps to

–Inform the public on the availability of goods and services on the market

–Allow customers and suppliers to contact each other speedily by means of telephone, facsimile (fax), letters, electronic mail (e-mail), etc.

Warehousing helps by

–storing raw materials awaiting processing

–storing finished goods awaiting sale

–protecting goods against bad elements such as unfavourable weather, fire, theft, etc.

–storing goods, warehousing prevents shortages

III. Service Industry

Service is a type of economic activity that is intangible, is not stored and does not result in ownership. A service is consumed at the point of sale. Examples of services include the transfer of goods, such as the postal service delivering mail, and the use of expertise or experience, such as a person visiting a doctor.

In modern times service sector plays an important role in the development of the nation and therefore it is named as service industry. The main industries, which fall under this category, include hotel industry, tourism industry, entertainment industry, etc.

Forms of business organisation

Almost every country consists of two business sectors, the private sector and the public sector. Private sector businesses are operated and run by individuals, while public sector businesses are operated by the government. The types of businesses present in a sector can vary, so lets take a look at them.

PRIVATE SECTOR

Sole Traders

Sole traders are the most common form of business in the world, and take up as much as 90% of all businesses in a country. The business is owned and run by one person only. Even though he can employ people, he is still the sole proprietor of the business. These businesses are so common since there are so little legal requirements to set up:

● The owner must register with and send annual accounts to the government Tax Office.

● They must register their business names with the Registrar of Business Names.

● They must obey all basic laws for trading and commerce.

There are advantages and disadvantages to everything, and here are ones for sold traders:

Pros:

● There are so few legal formalities are required to operate the business.

● The owner is his own boss, and has total control over the business.

● The owner gets 100% of profits.

● Motivation because he gets all the profits.

● The owner has freedom to change working hours or whom to employ, etc.

● He has personal contact with customers.

● He does not have to share information with anyone but the tax office, thus he enjoys complete secrecy.

Cons:

● Nobody to discuss problems with.

● Unlimited liability.

● Limited finance/capital, business will remain small.

● The owner normally spends long hours working.

● Some parts of the business can be inefficient because of lack of specialists.

● Does not benefit from economies of scale.

● No continuity, no legal identity.

Sole traders are recommended for people who:

● Are setting up a new business.

● Do not require a lot of capital for their business.

● Require direct contact for customer service.

Partnership

A partnership is a group consisting of 2 to 20 people who run and own a business together. They require a Deed of Partnership or Partnership Agreement, which is a document that states that all partners agree to work with each other, and issues such as who put the most capital into the business or who is entitled to the most profit. Other legal regulations are similar to that of a sole trader.

Pros:

● More capital than a sole trader.

● Responsibilities are split.

● Any losses are shared between partners.

Cons:

● Unlimited liability.

● No continuity, no legal identity.

● Partners can disagree on decisions, slowing down decision making.

● If one partner is inefficient or dishonest, everybody loses.

● Limited capital, there is a limit of 20 people for any partnership.

Recommended to people who:

● Want to make a bigger business but does not want legal complications.

● Professionals, such as doctors or lawyers, cannot form a company, and can only form a partnership.

● Family, when they want a simple means of getting everybody into a business (Warning: Nepotism is usually not recommended).

Note: In some countries including the UK there can be Limited Partnerships. This business has limited liability but shares cannot be bought or sold. It is abbreviated as LLP.

Private Limited Companies

Private Limited Companies have separate legal identities to their owners, and thus their owners have limited liability. The company has continuity, and can sell shares to friends or family, although with the consent of all shareholders. This business can now make legal contracts. Abbreviated as Ltd, or Proprietary Limited, (Pty) Ltd.

Pros:

● The sale of shares make raising finance a lot easier.

● Shareholders have limited liability, therefore it is safer for people to invest but creditors must be cautious because if the business fails they will not get their money back.

● Original owners are still able to keep control of the business by restricting share distribution.

Cons:

● Owners need to deal with many legal formalities before forming a private limited company:

o The Articles of Association: This contains the rules on how the company will be managed. It states the rights and duties of directors, the rules on the election of directors and holding an official meeting, as well as the issuing of shares.

o The Memorandum of Association: This contains very important information about the company and directors. The official name and addresses of the registered offices of the company must be stated. The objectives of the company must be given and also the amount of share capital the owners intend to raise. The number of shares to be bought b each of the directors must also be made clear.

o Certificate of Incorporation: the document issued by the Registrar of Companies that will allow the Company to start trading.

● Shares cannot be freely sold without the consent of all shareholders.

● The accounts of the company are less secret than that of sole traders and partnerships. Public information must be provided to the Registrar of Companies.

● Capital is still limited as the company cannot sell shares to the public.

Public Limited Companies

Public limited companies are similar to private limited companies, but they are able to sell shares to the public. A private limited company can be converted into a public limited company by:

1 A statement in the Memorandum of Association must be made so that it says this company is a public limited company.

2 All accounts must be made public.

3 The company has to apply for a listing in the Stock Exchange.

A prospectus must be issued to advertise to customers to buy shares, and it has to state how the capital raised from shares will be spent.

Pros:

● Limited liability.

● Continuity.

● Potential to raise limitless capital.

● No restrictions on transfer of shares.

● High status will attract investors and customers.

Cons:

● Many legal formalities required to form the business.

● Many rules and regulations to protect shareholders, including the publishing of annual accounts.

● Selling shares is expensive, because of the commission paid to banks to aid in selling shares and costs of printing the prospectus.

● Difficult to control since it is so large.

● Owners lose control, when the original owners hold less than 51% of shares.

Control and ownership in a public limited company:

The Annual General Meeting (AGM) is held every year and all shareholders are invited to attend so that they can elect their Board of Directors. Normally, Director are majority shareholders who has the power to do whatever they want. However, this is not the case for public limited companies since there can be millions of shareholders. Anyway, when directors are elected, they have to power to make important decisions. However, they must hire managers to attend to day to day decisions. Therefore:

● Shareholders own the company

● Directors and managers control the company

This is called the divorce between ownership and control.

Because shareholders invested in the company, they expect dividends. The directors could do things other than give shareholders dividends, such as trying to expand the company. However, they might loose their status in the next AGM if shareholders are not happy with what they are doing. All in all, both directors and shareholders have their own objectives.

Co-operatives

Cooperatives are a group of people who agree to work together and pool their money together to buy "bulk". Their features are:

● All members have equal rights, no matter how much capital they invested.

● All workload and decision making is equally shared, a manager maybe appointed for bigger cooperatives

● Profits are shared equally.

The most common cooperatives are:

● producer co-operatives: just like any other business, but run by workers.

● retail co-operatives: provides members with high quality goods or services for a reasonable price.

Other notable business organizations:

Close Corporations:

This type of business is present in countries such as South Africa. It is like a private limited company but it is much quicker to set up:

● Maximum limit of 10 people.

● You only need a simple founding statement which is sent to the Registrar of Companies to start the business.

● All members are managers (no divorce of ownership and control).

● A separate legal unit, has both limited liability and continuity.

Cons:

● The size limit is not suitable for a large business.

● Members may disagree just like in a partnership.

Joint ventures

Two businesses agree to start a new project together, sharing capital, risks and profits.

Pros:

● Shared costs are good for tackling expensive projects. (e.g aircraft)

● Pooled knowledge. (e.g foreign and local business)

● Risks are shared.

Cons:

● Profits have to be shared.

● Disagreements might occur.

● The two partners might run the joint venture differently.

Franchising

The franchisor is a business with a successful brand name that recruits franchisees(individual businesses) to sell for them. (e.g. McDonald, Burger King)

Pros for the franchisor:

● The franchisee has to pay to use the brand name.

● Expansion is much faster because the franchisor does not have to finance all new outlets.

● The franchisee manages outlets

● All products sold must be bought from the franchisor.

Cons for the franchisor:

● The failure of one franchise could lead to a bad reputation of the whole business.

● The franchisee keeps the profits.

Pros for the franchisee:

● The chance of failure is much reduced due to the well know brand image.

● The franchisor pays for advertising.

● All supplies can be obtained from the franchisor.

● Many business decisions will be made by the franchisor (prices, store layout, products).

● Training for staff and management is provide by the franchisor.

● Banks are more willing to lend to franchisees because of lower risks.

Cons for the franchisee:

● Less independence

● May be unable to make decisions that would suit the local area.

● Licence fee must be paid annually and a percentage of the turnover must be paid.

PUBLIC SECTOR

Public corporations:

A business owned by the government and run by Directors appointed by the government. These businesses usually include the water supply, electricity supply, etc. The government give the directors a set of objectives that they will have to follow:

● to keep prices low so everybody can afford the service.

● to keep people employed.

● to offer a service to the public everywhere.

These objectives are expensive to follow, and are paid for by government subsidies. However, at one point the government would realise they cannot keep doing this, so they will set different objectives:

● to reduce costs, even if it means making a few people redundant.

● to increase efficiency like a private company.

● to close loss-making services, even if this mean some consumers are no longer provided with the service.

Pros:

● Some businesses are considered too important to be owned by an individual. (electricity, water, airline)

● Other businesses, considered natural monopolies, are controlled by the government. (electricity, water)

● Reduces waste in an industry. (e.g. two railway lines in one city)

● Rescue important businesses when they are failing.

● Provide essential services to the people (e.g. the BBC)

Cons:

● Motivation might not be as high because profit is not an objective.

● Subsidies lead to inefficiency. It is also considered unfair for private businesses.

● There is normally no competition to public corporations, so there is no incentive to improve.

● Businesses could be run for government popularity.

Municipal enterprises

These businesses are run by local government authorities which might be freeto the user and financed by local taxes. (e.g, street lighting, schools, local library, rubbish collection). If these businesses make a loss, usually a government subsidy is provided. However, to reduce the burden on taxpayers, many municipal enterprises are being privatised.

Unit-1: Business and its forms

2012-12-02T21:59:00.005+05:30

BUSINESS

Definitions

Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."

According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."

Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."

Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.

Features of Business

1. Exchange of goods and services

All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.

2. Deals in numerous transactions

In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or two transactions.

3. Profit is the main Objective

The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman.

4. Business skills for economic success

Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business.

5. Risks and Uncertainties

6. Buyer and Seller

Every business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller.

7. Connected with production

Business activity may be connected with production of goods or services. In this case, it is called as industrial activity. The industry may be primary or secondary.

8. Marketing and Distribution of goods

Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity.

9. Deals in goods and services

In business there has to be dealings in goods and service.

Goods may be divided into following two categories :-

Consumer goods: Goods which are used by final consumer for consumption are called consumer goods e.g. T.V., Soaps, etc.

10. To Satisfy human wants

The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction.

11. Social obligations

Modern business is service oriented. Modern businessmen are conscious of their social responsibility. Today's business is service-oriented rather than profit-oriented.

BUSINESS AS A SYSTEM

● Finance system concerned with finance functions of enterprise.

● Personnel system concerned with recruitment, selection and training of personnel.

● Production system engaged with production functions.

● marketing system engaged with marketing functions.

● R & D system concerned with research and development functions.

Inputs

The inputs can be represented by:

1. entrepreneurial ideas and decisions

2. finance

3. market and customer information

4. available technology (tools, machines, methods, forms of automation) to use

5. social and cultural values and attitudes

6. staff abilities and expectations

7. events from another system which the business must receive and respond to e.g. a budget statement, government pressure, a coup in a client country

Processes

Processes are system arrangements and mechanisms - human and technical - which are designed and implemented to organise and realise the business's purposes These may be

1. functional departments(production, marketing, finance, HR, etc)

2. transformational(machinery, etc)

3. information-based,

4. social and political

5. regulative and control-oriented.

Outputs

Business Environment

(4) Competitors: - Every move of the competitors affects the business. Business has to adjust itself according to the strategies of the Competitors.

(5) Public: - Any group who has actual interest in business enterprise is termed as public e.g. media and local public. They may be the users or non-users of the product.

Macro/General Environment: – It includes factors that create opportunities and threats to business units. Following are the elements of Macro Environment:

Characteristics:-

1. Business environment is compound in nature.

2. Business environment is constantly changing process.

3. Business environment is different for different business units.

4. It has both long term and short term impact.

5. Unlimited influence of external environment factors.

6. It is very uncertain.

7. Inter-related components.

8. It includes both internal and external environment

BUSINESS OBJECTIVES

An objective denotes a goal for the achievement of which efforts are directed. Every business has its sets of objectives. The objectives of the business are covered under the following categories.

Organic objectives:

The Organic objectives relates to survival, growth and diversification of organization.

The followings are some of the organic objectives of the business:

I. The business should have the prime objective to survive. Steps will be taken in such a manner that the business should survive for the long period.

III. The business enterprise always intends to get recognition and prestige. This can be attained when qualitative goods are supplied to the consumers at a reasonable price.

Economic objectives:

The Economic objectives aims at maximizing material wealth or financial resources of the organization.

The following are the economic objectives of a business:

● Every business is started for earning profit because profit is the acid test of every business.

● Earning of profit can be made when exchange of goods takes place. so every business has the objective of production of goods.

Human Objectives:

Human objectives require careful consideration and well-being of shareholders, consumers and employees. The following are the human objectives of the business:

● The business should render welfare to its employees.

● The consumer should be supplied with qualitative products so that they will feel satisfied.

● The business should have the objective of providing enough satisfaction to the shareholders. They should feel that their money is not misused by management.

● The business should have the objective of being helpful to the government. The business is the main contribution of funds to the government.

Social Objectives:

The business has certain social responsibilities and is required to undertake those activities which are essential for the betterment of the society.

The following are some social objectives of the business:

● To ensure continuous supply of goods to meet the requirement of the society.

● The business should help the government in formulating the policies of socialistic pattern of society.

● The business should create more employment opportunities.

● It should ensure effective utilization of natural resources.

National Objectives:

The business enterprise contributes substantially for the upliftment of the nation. The followings are the national objectives of the business:

● The business should help in the development of small scale industries.

● The business should aim at improving the economic position of the society.

● The business should help in providing skilled personnel for the country

STRUCTURE/COMPONENTS/SCOPE OF BUSINESS

Business structure consists of a number of components involving several activities. Business activities can be broadly classified into three categories: industry, commerce, and services.

I. Industry:

The production side of business activity is referred as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products.

Classification / Types of Industries ↓

There are various types of industries. These are mentioned as follows :-

1. Primary Industry

● Genetic Industry

● Extractive Industry

2. Secondary Industry:

● Manufacturing Industry

● Construction Industry

II. Commerce

Commerce is a branch of business. It is concerned with the exchange of goods and services. It includes all those activities, which directly or indirectly facilitate that exchange.

Commerce can be classified into two broad categories namely trade and aids to trade

A. Trade:

There are two types of trade namely; Internal (local/home) trade and International or foreign trade.

1. Internal Trade

Internal trade can be further sub-divided into two groups, viz. retailing and wholesaling

Retailing is the buying and selling of goods and services in small quantities. The trader involved in this form of trade is called a Retailer.

Wholesaling is the buying and selling of goods and services in large quantities. The trader involved in this kind of trade is known as a Wholesaler.

2. External Trade

External trade can be further sub-divided into three groups, viz.,

B. Aids To Trade

Aids to trade are commercial services or activities that assist trade to move on smoothly with less or no difficulties at all. There are six aids to trade namely;

Ø Advertising

Ø Banking

Ø Transport

Ø Insurance

Ø Communication

Ø Warehousing.

Advertising helps by

– informing the members of public on the availability of goods and services on the market.

– persuading potential customers to buy the goods and services available.

– informing the public on job vacancies with a view of recruiting new staff

– spreading awareness on matters of public interest.

Banking helps by

–Financing the traders by means of loans and overdrafts

–Safeguarding the trader’s money and other valuables.

–Facilitating the payment of huge sums through cheques

Transport helps by

–Delivering equipment and raw materials to industries.

–Delivering finished goods to local and international markets.

–Moving workers to and from their workplaces to enhance production

–Carrying company executives and agents to far places in order to meet their clients.

Insurance helps to

–Compensate/ restore/indemnify traders in case of a risk occurring.

–Protect traders against financial losses resulting from fire, theft, etc

–And also against claims from third parties.

–Provide confidence or encouragement to traders to go into huge businesses without fear of making a loss.

Communication helps to

–Inform the public on the availability of goods and services on the market

–Allow customers and suppliers to contact each other speedily by means of telephone, facsimile (fax), letters, electronic mail (e-mail), etc.

Warehousing helps by

–storing raw materials awaiting processing

–storing finished goods awaiting sale

–protecting goods against bad elements such as unfavourable weather, fire, theft, etc.

–storing goods, warehousing prevents shortages

III. Service Industry

Forms of business organisation

PRIVATE SECTOR

Sole Traders

● The owner must register with and send annual accounts to the government Tax Office.

● They must register their business names with the Registrar of Business Names.

● They must obey all basic laws for trading and commerce.

There are advantages and disadvantages to everything, and here are ones for sold traders:

Pros:

● There are so few legal formalities are required to operate the business.

● The owner is his own boss, and has total control over the business.

● The owner gets 100% of profits.

● Motivation because he gets all the profits.

● The owner has freedom to change working hours or whom to employ, etc.

● He has personal contact with customers.

● He does not have to share information with anyone but the tax office, thus he enjoys complete secrecy.

Cons:

● Nobody to discuss problems with.

● Unlimited liability.

● Limited finance/capital, business will remain small.

● The owner normally spends long hours working.

● Some parts of the business can be inefficient because of lack of specialists.

● Does not benefit from economies of scale.

● No continuity, no legal identity.

Sole traders are recommended for people who:

● Are setting up a new business.

● Do not require a lot of capital for their business.

● Require direct contact for customer service.

Partnership

Pros:

● More capital than a sole trader.

● Responsibilities are split.

● Any losses are shared between partners.

Cons:

● Unlimited liability.

● No continuity, no legal identity.

● Partners can disagree on decisions, slowing down decision making.

● If one partner is inefficient or dishonest, everybody loses.

● Limited capital, there is a limit of 20 people for any partnership.

Recommended to people who:

● Want to make a bigger business but does not want legal complications.

● Professionals, such as doctors or lawyers, cannot form a company, and can only form a partnership.

● Family, when they want a simple means of getting everybody into a business (Warning: Nepotism is usually not recommended).

Note: In some countries including the UK there can be Limited Partnerships. This business has limited liability but shares cannot be bought or sold. It is abbreviated as LLP.

Private Limited Companies

Pros:

● The sale of shares make raising finance a lot easier.

● Shareholders have limited liability, therefore it is safer for people to invest but creditors must be cautious because if the business fails they will not get their money back.

● Original owners are still able to keep control of the business by restricting share distribution.

Cons:

● Owners need to deal with many legal formalities before forming a private limited company:

o Certificate of Incorporation: the document issued by the Registrar of Companies that will allow the Company to start trading.

● Shares cannot be freely sold without the consent of all shareholders.

● The accounts of the company are less secret than that of sole traders and partnerships. Public information must be provided to the Registrar of Companies.

● Capital is still limited as the company cannot sell shares to the public.

Public Limited Companies

Public limited companies are similar to private limited companies, but they are able to sell shares to the public. A private limited company can be converted into a public limited company by:

1 A statement in the Memorandum of Association must be made so that it says this company is a public limited company.

2 All accounts must be made public.

3 The company has to apply for a listing in the Stock Exchange.

A prospectus must be issued to advertise to customers to buy shares, and it has to state how the capital raised from shares will be spent.

Pros:

● Limited liability.

● Continuity.

● Potential to raise limitless capital.

● No restrictions on transfer of shares.

● High status will attract investors and customers.

Cons:

● Many legal formalities required to form the business.

● Many rules and regulations to protect shareholders, including the publishing of annual accounts.

● Selling shares is expensive, because of the commission paid to banks to aid in selling shares and costs of printing the prospectus.

● Difficult to control since it is so large.

● Owners lose control, when the original owners hold less than 51% of shares.

Control and ownership in a public limited company:

● Shareholders own the company

● Directors and managers control the company

This is called the divorce between ownership and control.

Co-operatives

Cooperatives are a group of people who agree to work together and pool their money together to buy "bulk". Their features are:

● All members have equal rights, no matter how much capital they invested.

● All workload and decision making is equally shared, a manager maybe appointed for bigger cooperatives

● Profits are shared equally.

The most common cooperatives are:

● producer co-operatives: just like any other business, but run by workers.

● retail co-operatives: provides members with high quality goods or services for a reasonable price.

Other notable business organizations:

Close Corporations:

This type of business is present in countries such as South Africa. It is like a private limited company but it is much quicker to set up:

● Maximum limit of 10 people.

● You only need a simple founding statement which is sent to the Registrar of Companies to start the business.

● All members are managers (no divorce of ownership and control).

● A separate legal unit, has both limited liability and continuity.

Cons:

● The size limit is not suitable for a large business.

● Members may disagree just like in a partnership.

Joint ventures

Two businesses agree to start a new project together, sharing capital, risks and profits.

Pros:

● Shared costs are good for tackling expensive projects. (e.g aircraft)

● Pooled knowledge. (e.g foreign and local business)

● Risks are shared.

Cons:

● Profits have to be shared.

● Disagreements might occur.

● The two partners might run the joint venture differently.

Franchising

The franchisor is a business with a successful brand name that recruits franchisees(individual businesses) to sell for them. (e.g. McDonald, Burger King)

Pros for the franchisor:

● The franchisee has to pay to use the brand name.

● Expansion is much faster because the franchisor does not have to finance all new outlets.

● The franchisee manages outlets

● All products sold must be bought from the franchisor.

Cons for the franchisor:

● The failure of one franchise could lead to a bad reputation of the whole business.

● The franchisee keeps the profits.

Pros for the franchisee:

● The chance of failure is much reduced due to the well know brand image.

● The franchisor pays for advertising.

● All supplies can be obtained from the franchisor.

● Many business decisions will be made by the franchisor (prices, store layout, products).

● Training for staff and management is provide by the franchisor.

● Banks are more willing to lend to franchisees because of lower risks.

Cons for the franchisee:

● Less independence

● May be unable to make decisions that would suit the local area.

● Licence fee must be paid annually and a percentage of the turnover must be paid.

PUBLIC SECTOR

Public corporations:

● to keep prices low so everybody can afford the service.

● to keep people employed.

● to offer a service to the public everywhere.

● to reduce costs, even if it means making a few people redundant.

● to increase efficiency like a private company.

● to close loss-making services, even if this mean some consumers are no longer provided with the service.

Pros:

● Some businesses are considered too important to be owned by an individual. (electricity, water, airline)

● Other businesses, considered natural monopolies, are controlled by the government. (electricity, water)

● Reduces waste in an industry. (e.g. two railway lines in one city)

● Rescue important businesses when they are failing.

● Provide essential services to the people (e.g. the BBC)

Cons:

● Motivation might not be as high because profit is not an objective.

● Subsidies lead to inefficiency. It is also considered unfair for private businesses.

● There is normally no competition to public corporations, so there is no incentive to improve.

● Businesses could be run for government popularity.

Municipal enterprises

obesity and disease

2011-09-11T18:34:00.000+05:30

What Is Obesity?

An obese person has accumulated so much body fat that it might have a negative effect on their health. If a person's bodyweight is at least 20% higher than it should be, he or she is considered obese. If your Body Mass Index (BMI) is between 25 and 29.9 you are considered overweight. If your BMI is 30 or over you are considered obese.

What is Body Mass Index (BMI)?

The BMI is a statistical measurement derived from your height and weight. Although it is considered to be a useful way to estimate healthy body weight, it does not measure the percentage of body fat. The BMI measurement can sometimes be misleading - a muscleman may have a high BMI but have much less fat than an unfit person whose BMI is lower. However, in general, the BMI measurement can be a useful indicator for the 'average person'.

To calculate your BMI, use our BMI Calculator

Why do people become obese?

People become obese for several reasons, including:

1. Consuming too many calories.
People are eating much more than they used to. This used to be the case just in developed nations - however, the trend has spread worldwide. Despite billions of dollars being spent on public awareness campaigns that attempt to encourage people to eat healthily, the majority of us continue to overeat. In 1980 14% of the adult population of the USA was obese; by 2000 the figure reached 31% (The Obesity Society).

In the USA, the consumption of calories increased from 1,542 per day for women in 1971 to 1,877 per day in 2004. The figures for men were 2,450 in 1971 and 2,618 in 2004. Most people would expect this increase in calories to consist of fat - not so! Most of the increased food consumption has consisted of carbohydrates (sugars). Increased consumption of sweetened drinks has contributed significantly to the raised carbohydrate intake of most young American adults over the last three decades. The consumption of fast-foods has tripled over the same period.

Various other factors also may have contributed to America's increased calorie and carbohydrate intake:

o In 1984 the Reagan administration freed up advertising on sweets and fast foods for children - regulations had previously set limits.

o Agricultural policies in most of the developed world have led to much cheaper foods.

o The US Farm Bill meant that the source of processed foods came from subsidized wheat, corn and rice. Corn, wheat and rice became much cheaper than fruit and vegetables.

2. Leading a sedentary lifestyle.
With the arrival of televisions, computers, video games, remote controls, washing machines, dish washers and other modern convenience devices, the majority of people are leading a much more sedentary lifestyle compared to their parents and grandparents. Some decades ago shopping consisted of walking down the road to the high street where one could find the grocers, bakers, banks, etc. As large out-of-town supermarkets and shopping malls started to appear, people moved from using their feet to driving their cars to get their provisions. In some countries, such as the USA, dependence on the car has become so strong that many people will drive even if their destination is only half-a-mile away.

The less you move around the fewer calories you burn. However, this is not only a question of calories. Physical activity has an effect on how your hormones work, and hormones have an effect on how your body deals with food. Several studies have shown that physical activity has a beneficial effect on your insulin levels - keeping them stable. Unstable insulin levels are closely associated with weight gain.

3. Not sleeping enough.
If you do not sleep enough your risk of becoming obese doubles, according to research carried out at Warwick Medical School at the University of Warwick. The risk applies to both adults and children. Professor Francesco Cappuccio and team reviewed evidence in over 28,000 children and 15,000 adults. Their evidence clearly showed that sleep deprivation significantly increased obesity risk in both groups.

Professor Cappuccio said, "The 'epidemic' of obesity is paralleled by a 'silent epidemic' of reduced sleep duration with short sleep duration linked to increased risk of obesity both in adults and in children. These trends are detectable in adults as well as in children as young as 5 years."
Professor Cappuccio explains that sleep deprivation may lead to obesity through increased appetite as a result of hormonal changes. If you do not sleep enough you produce Ghrelin, a hormone that stimulates appetite. Lack of sleep also results in your body producing less Leptin, a hormone that suppresses appetite.

4. Endocrine disruptors, such as some foods that interfere with lipid metabolism.
A team from the University of Barcelona (UB) led by Dr Juan Carlos Laguna published a study in the journal Hepatology that provides clues to the molecular mechanism through which fructose (a type of sugar) in beverages may alter lipid energy metabolism and cause fatty liver and metabolic syndrome.

Fructose is mainly metabolized in the liver, the target organ of the metabolic alterations caused by the consumption of this sugar. In this study, rats receiving fructose-containing beverages presented a pathology similar to metabolic syndrome, which in the short term causes lipid accumulation (hypertriglyceridemia) and fatty liver, and eventually leads to hypertension, resistance to insulin, diabetes and obesity.

Poorly balanced diets and the lack of physical exercise are key factors in the increase of obesity and other metabolic diseases in modern societies. In epidemiological studies in humans, the effect of the intake of fructose-sweetened beverages also seems to be more intense in women. (From - "New Data On Fructose-Sweetened Beverages And Hepatic Metabolism").

Although there appears to be a consensus on the negative effects of fructose-sweetened beverages there is still some debate over the effects of fructose versus high fructose corn syrup - two studies of note are:
"AMA Finds High Fructose Syrup Unlikely To Be More Harmful To Health Than Other Caloric Sweeteners" and "Fructose Sweetened Drinks Increase Nonfasting Triglycerides In Obese Adults".

5. Lower rates of smoking (smoking suppresses appetite).
According to the National Institutes of Health (NIH) "Not everyone gains weight when they stop smoking. Among people who do, the average weight gain is between 6 and 8 pounds. Roughly 10 percent of people who stop smoking gain a large amount of weight - 30 pounds or more."

6. Medications that make patients put on weight.
According to an article in Annals of Pharmacotherapy, some medications cause weight gain. "Clinically significant weight gain is associated with some commonly prescribed medicines. There is wide interindividual variation in response and variation of the degree of weight gain within drug classes. Where possible, alternative therapy should be selected, especially for individuals predisposed to overweight and obesity." (The Annals of Pharmacotherapy: Vol. 39, No. 12, pp. 2046-2054. DOI 10.1345/aph.1G33)

Treatments for obesity (source: The Mayo Clinic)

Obesity treatments have two objectives:

1. To achieve a healthy weight.

2. To maintain that healthy weight.

People who are obese are often discouraged because they think they have to lose a lot of weight before any benefits are experienced. This is not true. Any obese person who loses just five to ten per cent of their body weight will have significant improvement in health - this would mean between 12-25 pounds for an obese person who weighs 250 pounds.

It is important for patients to realize that a small drop in weight is a good start and a great achievement. Experts have found that obese people who lose weight slowly and constantly, say one or two pounds each week, are more successful in keeping their weight down when they have reached their target weight.

According to the Mayo Clinic, successful and permanent weight loss is best achieved as a result of increased physical activity, changing how and when you eat, and modifying your behavior. Some patients may be prescribed medication, while others might undergo weight-loss surgery.

Dietary changes

The Mayo Clinic advises obese people to reduce their total daily calorie intake and to consume more fruits, vegetables and whole grains. It is important that your diet is varied - you still need to feed yourself, and should continue to enjoy the tastes of different foods. The consumption of sugar, certain refined carbohydrates and some fats should be reduced significantly.

Ideally, you should work with your doctor, a dietician, and/or a well-known weight-loss program.

Trying to lose weight quickly by crash-dieting carries the following risks:

· You may develop health problems

· You will probably experience vitamin deficiencies

· You chances of failure are significantly higher

People who are seriously obese may be prescribed a very low calorie liquid diet. These must be done with a health care professional.

Physical activity

The more you move your body the more calories you burn. To lose a kilogram of fat you need to burn 8,000 calories (1 pound of fat = 3,500 calories). Walking briskly is a good way to start increasing your physical activity if you are obese. Combining increased physical activity with a good diet will significantly increase your chances of losing weight successfully and permanently!

Try to find activities which you can fit into your daily routine. Anything that becomes part of your daily life, weaved into your existing lifestyle, is more likely to become a long-term habit. If you use an elevator, try getting off one or two floors before your destination and walking the rest. You could try the same when driving your car or taking any form of public transport - get off earlier and walk that bit more.

If any of your regular shops are within walking distance, try leaving your car at home. Several surveys indicated that the majority of urban car trips outside the rush hours are less than a mile long - we can all walk a mile, and should!

If you are very obese, are unfit, or have some health problems, make sure you check with a health care professional before increasing your physical activity.

Prescription medications for losing weight

Prescription medications should really only be considered as a last resort. If the patient finds it extremely hard to shed the pounds, or if his obesity has reached such a point as to significantly undermine his health, then prescription drugs may become an option.

According to the Mayo Clinic prescription medications should only be considered if:

· Other strategies to lose weight have failed

· The patient's BMI is over 27 and he also has diabetes, hypertension, or sleep apnea.

· The patient's BMI is over 30

There are two approved drugs a physician may consider, Sibutramine (Meridia in USA/Canada, Reductil in Europe and much of the world) or Orlistat (Xenical). Bear in mind that as soon as you stop taking these drugs the overweight problem generally comes back - they have to be taken indefinitely. Some patients may not respond to these drugs, while others may find their beneficial effects may lessen somewhat after a few months.

Weight loss surgery (bariatric surgery)

Weight loss surgery (WLS) is also known as Bariatric Surgery. It comes from the Greek work baros, which means weight.

WLS is a development of cancer/ulcer operations that consisted of removing part of a patient's stomach or small intestine. Those cancer/ulcer patients subsequently lost weight after surgery. Doctors decided the procedure might be beneficial for morbidly obese patients.

In 2008 about 220,000 bariatric operations were carried out in the USA (American Society for Bariatric Surgery). As obesity levels in America and many other parts of the world grow, so does the number of bariatric procedures. About 15 million people in the U.S. have morbid obesity; only 1% of the clinically eligible population is being treated for morbid obesity through bariatric surgery. According to the American Society for Bariatric Surgery, the average female surgery patient weighs about 300 pounds.

The American Society for Bariatric and Metabolic Surgery says that Bariatric surgery can improve or resolve more than 30 obesity-related conditions, including type 2 diabetes, heart disease, sleep apnea, hypertension and high cholesterol .

Basically, bariatric surgery alters your stomach or small intestine so that you are unable to consume much food in one sitting. This reduces the total number of calories you consume each day, thus helping to lose weight.

There are two types of bariatric surgeries:

· Restrictive procedures - These make your stomach smaller. The surgeon may use a gastric band, staples, or both. After the operation the patient cannot consume more than about one cup of food during each sitting, significantly reducing his food intake. Over time, some patients' stomachs may stretch and they are gradually able to consumer larger quantities.

· Malabsorptive procedures - Parts of the digestive system, especially the first part of the small intestine (duodenum) or the mid-section (jejunum), are bypassed. Doctors may also reduce the size of the stomach. This procedure is generally more effective than restrictive procedures. However, the patient has a higher risk of experiencing vitamin/mineral deficiencies because overall absorption is reduced.

Health risks associated with obesity

· Bone and cartilage degeneration (Osteoarthritis)
Obesity is an important risk factor for osteoarthritis in most joints, especially at the knee joint (the most important site for osteoarthritis). Obesity confers a nine times increased risk in knee joint osteoarthritis in women. Osteoarthritis risk is also linked to obesity for other joints. A recent study indicated that obesity is a strong determinant of thumb base osteoarthritis in both sexes. Data suggest that metabolic and mechanical factors mediate the effects of obesity on joints (University of Bristol).

· Coronary heart disease
Obesity carries a penalty of an associated adverse cardiovascular risk profile. Largely as a consequence of this, it is associated with an excess occurrence of cardiovascular disease morbidity and mortality. (Department of Preventive Medicine, University of Tennessee)

· Gallbladder disease
Being overweight is a significant risk factor for gallstones. In such cases, the liver over-produces cholesterol, which is then delivered into the bile causing it to become supersaturated. Some evidence suggests that specific dietary factors (saturated fats and refined sugars) are the primary culprit in these cases (University of Maryland Medical Center)

· High blood pressure (Hypertension)
There are multiple reasons why obesity causes hypertension, but it seems that excess adipose (fat) tissue secretes substances that are acted on by the kidneys, resulting in hypertension. Moreover, with obesity there are generally higher amounts of insulin produced. Excess insulin elevates blood pressure. (Weight.com)

· High total cholesterol, high levels of triglycerides (Dyslipidemia)
The primary dyslipidemia related to obesity is characterized by increased triglycerides, decreased HDL levels, and abnormal LDL composition. (Howard BV, Ruotolo G, Robbins DC.)

· Respiratory problems
Obesity can also cause respiratory problems. Breathing is difficult as the lungs are decreased in size and the chest wall becomes very heavy and difficult to lift. (Medical College of Wisconsin)

· Several cancers
In 2002, approximately 41,000 new cases of cancer in the USA were thought to be due to obesity. In other words, about 3.2% of all new cancers are linked to obesity (Polednak AP. Trends in incidence rates for obesity-associated cancers in the U.S. Cancer Detection and Prevention 2003; 27(6):415-421)

· Sleep apnea
Obesity has been found to be linked to sleep apnea. Also, weight reduction has been associated with comparable reductions in the severity of sleep apnea. (NHLBI)

· Stroke
Rising obesity rates have been linked to more strokes among women aged 35 to 54. (Medical News Today - "Stroke Increase And Obesity Linked Among Middle-Aged Women")

· Type 2 diabetes
One of the strongest risk factors for type 2 diabetes is obesity, and this is also one of the most modifiable as it can be partially controlled through diet and exercise. (Medical News Today - "Researchers Verify Link Between Type 2 Diabetes And Diet" )

Everything about obesity

2011-09-11T18:08:00.000+05:30

Obesity

What is obesity?

Obesity is more than just a few extra pounds.

Obesity is the heavy accumulation of fat in your body to such a degree that it rapidly increases your risk of diseases that can damage your health and knock years off your life, such as heart disease and diabetes.

The fat may be equally distributed around the body or concentrated on the stomach (apple-shaped) or the hips and thighs (pear-shaped).

For medical purposes, the body mass index (BMI) is used to determine if your weight is in the healthy range.

Doctors use BMI because it compares your weight against your height.

Test yourself

Are you apple or pear shaped? Use our test to find out.

You are in the normal range if your BMI is between 18.5 and 25 (kg/m²).
You are overweight if your BMI is between 25 and 30.
You are obese if your BMI is 30 or higher.
You are morbidly obese if your BMI is 40 or higher.

Work out your BMI

Use our BMI calculator.

Otherwise, take your weight (kg) and divide it by the square of your height (m).

For example, if you weigh 80kg and are 1.7m:

1. Multiply your height by itself 1.7x1.7=2.89

2. Divide your weight by this figure.

3. 80 ÷ 2.89= 27.7kg/m².

27.7 is the BMI.

How common is obesity?

Around one in four men and one in three women in the UK are overweight, according to government statistics.

While slightly more women than men are obese (24 per cent versus 23 per cent), in the last ten years there has been a greater increase in the number of men who are obese.

The Department of Health predicts that if this trend continues, by 2010 around 6.6 million men will be obese compared to 6 million women.

Stomach obesity, where weight is concentrated on the tummy, is the most common type of obesity and affects 30 per cent of adult men.

Obesity and stomach obesity are rapidly increasing, especially in young people.

Around one in three children between the ages of 2 and 15 are overweight. While in total more girls than boys are overweight, a greater number of boys are obese.

Children and BMI

The BMI figures used in this article apply to adults only.

Doctors use special charts to work out BMI for children to take account of differing rates of growth and development.

14 per cent of boys are overweight.
17 per cent of girls are overweight.
19 per cent of boys are obese.
18 per cent of girls are obese.

Government statistics also show that children are more likely to have a weight problem if one parent is overweight, and this risk is increased if both parents are overweight or obese.

What problems can obesity cause?

Psychologically, being overweight can affect your body image and damage self-esteem. In some cases this can cause social anxiety and depression.

Common physical problems include:

difficulties breathing
difficulties walking or running
increased sweating
pain in the knees and back
skin conditions such as acne
gallstones.

The following medical conditions are also more common in obese people than in those of normal weight:

high blood pressure
high cholesterol
diseases related to hardening of the arteries such as heart attack and stroke(cardiovascular disease).
type 2 diabetes
some types of cancer.

These conditions are often known as obesity-related diseases and are some of the most common causes of death before the age of 75. This is why obesity increases your risk of mortality.

What causes obesity?

Obesity can be hereditary, so some people are at increased risk.

Genetic factors can affect appetite, the rate at which you burn energy (metabolic rate) and how the body stores fat. Examples of genetic diseases are polycystic ovary syndrome (PCOS) and hypothyroidism.

But even if your genes make weight gain more likely, it is not inevitable that you will be overweight.

Obesity develops from:

overeating
irregular meals
lack of daily physical activity.

This is why obesity has trebled since 1980, when only 6 per cent of men and 8 per cent of women were obese. In this time our lifestyles have changed rapidly, with the ready availability of convenience foods and car journeys replacing walks to work and school.

It is lifestyle that determines how the genes develop.

Medicines such as antidepressants, corticosteroids and oral contraceptives can also cause weight gain.

When is obesity dangerous?

UK clothes size

For women, the waistline target of 80cm means you should comfortably fit into a size 16.

Dress size 14 16 18 20

Waist (cm) 79 84 89 95

Dress size 22 24 26

Waist (cm) 101 107 113

If you have a BMI of more than 25, you should lose weight. The same is true if you carry too much fat around the middle because this increases your risk of heart disease and diabetes.

Your waist should be no more than 102cm/40" (men) or 88cm/35" (women), with stricter targets for Asians of less than 90cm/35" (men) and 80cm/32" (women).

To reduce your risk of cardiovascular disease further, you should watch your waistline and make sure it's no more than 94cm/37" (men) and 80cm/32" (women).

How is obesity treated?

Initially, your doctor will suggest you lose weight through a change in diet and an increase in physical exercise.

Clinical guidelines are to aim for a weight loss of between 5kg and 10kg (11-22lb) over three months. This equals about 0.5kg or 1lb per week.

If you are obese, losing this amount will have a positive effect on your risk of cardiovascular disease and diabetes by reducing blood pressure, blood sugar (glucose) and cholesterol levels.

A dietitian can help you lose weight by giving nutritional advice on buying and preparing foods and designing a weight-loss plan.

Weight-loss plans are usually based on a low-fat diet of between 1500 and 2000 calories a day, which will result in a weight loss of 5 to 10kg in more than 90 per cent of obese people.

How do diet and exercise help?

Your body needs a certain amount of energy (calories) each day. Excess energy is stored as fat. The more active you are, the more calories your body needs.

By eating less than your body needs and exercising more, you force your body to use its existing fat stores for energy.

By burning excess fat, you lose weight.

When is medical treatment necessary?

Your doctor will usually only consider medicines for weight-loss if changes to diet and exercise are not effective.

Medicine for weight-loss is available on the NHS: orlistat (Xenical).

You will still need to follow a calorie-controlled diet and start an exercise plan while taking this drug.

Treatment with Xenical will only be continued after three months if you have lost 5 per cent of your body weight in that time.

While this medicine can help you to lose weight, there may be a gradual reversal of any weight loss after you stop treatment. To help avoid this, you will need to continue with changes to your diet and exercise levels.

Medicines for obesity are not yet recommended for young people under the age of 18 because we have no knowledge of possible negative effects on puberty and later eating behaviour.

Orlistat (Xenical)

Xenical reduces the amount of fat that is absorbed from the bowels.

Your doctor can prescribe this drug if you are obese, or if your BMI is higher than 28 and you have a related risk factor such as high blood pressure, high cholesterol or diabetes.

Common side-effects include headache, urgent or increased need to open the bowels, flatulence (wind) with discharge, and oily or fatty stools.

What about weight reduction surgery?

You can be considered for weight-loss surgery if you are morbidly obese, or if you have a BMI between 35 and 40 and have a risk factor for an obesity-related disease.

This type of surgery is known as bariatric surgery.

Gastric banding

Gastric banding or 'lap banding' limits the capacity of the stomach so you feel full after eating a small amount of food.

Keyhole surgery is used to tie an inflatable band around the top part of the stomach, creating a small pouch at the top. This limits the amount of food your stomach can hold.

Food then slowly passes from the pouch into the lower part of your stomach and on into your digestive system.

The operation is reversible.

Gastric bypass

Gastric bypass is permanent surgery on the stomach to reduce the length of the digestive tract and stop food being absorbed.

A small pouch is created at the top of the stomach.

Part of the intestine is then grafted to the top of this pouch so food bypasses the stomach and much of the intestine, meaning it can't be digested.

Gastric balloon insertion

Gastric balloon insertion is a less permanent type of surgery. It is not widely available on the NHS.

A balloon is placed on the end of a thin, flexible tube called an endoscope. It is inserted into your stomach via your mouth.

Liquid or air is then pumped into the balloon so it partially fills the stomach. This creates a feeling of fullness.

The balloon is usually removed after six months.

Complications of weight-loss surgery include the usual risks of surgery and long-term digestive problems such as nausea, heartburn, vomiting and diarrhoea.

After surgery your body absorbs less food, but it will also absorb less vitamins and nutrients. This means you are at greater risk of diseases caused by vitamin and mineral deficiency such as anaemia and osteoporosis.

In the long term

While plenty of diets and slimming products claim to offer quick fixes, obesity is not something that can be cured or brought under clinical control within a few weeks or months.

Treatment such as diet and exercise may need to continue for years.

Weight-loss plans from a GP or dietician are an effective way to lose weight, but a greater challenge is to achieve a way of life that maintains weight and reduces the chances of putting it back on.

This can only be achieved by permanently changing your eating and exercise habits.

Obesity

2011-09-11T18:05:00.000+05:30

Obesity

"Obesity" is a condition of excess body fat, which puts a person at increased risk for developing heart disease, Type II diabetes, osteoarthritis, high blood pressure and asthma.
Obesity is the result of the body's inability to balance calorie intake and energy expenditure.
55% of all adult Americans - 100 million people - are overweight.
One out of three adult Americans is obese.
In the next 10 years, 70 to 80 percent of all heart disease deaths will occur in people with Type II diabetes, a condition I call "diabesity" since Type II diabetes is so frequently associated with obesity. In fact, obesity is the number one cause of Type II diabetes.
Half of all cases of hypertension are attributed to obesity.
Obesity can be evaluated several ways:

1. A measurement called body mass index (BMI). BMI is a simple calculation based on height and weight. A person is considered overweight if their BMI > 25 and obese if their BMI > 30. To calculate your BMI, multiply weight in pounds by 704.5 and divide this number by height in inches squared or click here www.4Meridia.com for an easy-to-use BMI calculator.

2. Measuring total waist circumference. A waist circumference more than 40 inches in men and more than 35 inches in women signifies increased risk in those with a BMI of greater than 25.

3. Consideration of other disease risk factors associated with obesity (e.g., diabetes and hypertension).

An estimated 97 million Americans (55 percent of the U.S. population) are overweight or obese -- 59 million are overweight and 38 million are obese.
Over the past 20 years, the number of children who are overweight has increased by more than 50 percent. The number of obese children has nearly doubled.
Forty percent of non-Hispanic Blacks and nearly one quarter of Mexican Americans are obese.
Obesity rates among African-American girls are the fastest growing among any demographic group in the country.
Obesity-related costs in the US add up to nearly $100 billion annually in costs for weight-loss treatment and the treatment of many serious health problems caused or worsened by obesity, such as diabetes and cardiovascular disease.
Americans spend an estimated $33 billion each year on reduced-fat foods, diet aids and weight-loss programs.
Each year, an estimated 300,000 US adults die of causes attributable to obesity.
Type II diabetes is nearly 3-4 times more prevalent in overweight adults than in lean adults.
The number of deaths from cardiovascular disease is 50 percent higher in obese people (and 90 percent higher in the severely obese) than in the non-obese.
Men who are more than 20 percent overweight have a 20-30 percent increase in death from prostate cancer.
A recent study in Diabetes Care noted that for every kilogram of increase in measured weight, the risk of diabetes increased by 4.5 percent.
A recent study in the New England Journal of Medicine stated that the women in the study who were non-smokers, not overweight, ate properly and exercised had an 83 percent less chance of developing coronary heart disease than those who did not adhere to a low-risk lifestyle.
The heaviest adults are 80 percent more likely to have asthma than the thinnest ones.
A weight loss of five to 10 percent in excess body weight, followed by maintenance of that loss, can reduce risk factors and provide health benefits.

obesity in teens

2011-09-11T17:53:00.000+05:30

Obesity In Children And Teens

The problem of childhood obesity in the United States has grown considerably in recent years. Between 16 and 33 percent of children and adolescents are obese. Obesity is among the easiest medical conditions to recognize but most difficult to treat. Unhealthy weight gain due to poor diet and lack of exercise is responsible for over 300,000 deaths each year. The annual cost to society for obesity is estimated at nearly $100 billion. Overweight children are much more likely to become overweight adults unless they adopt and maintain healthier patterns of eating and exercise.

What is obesity?
A few extra pounds do not suggest obesity. However they may indicate a tendency to gain weight easily and a need for changes in diet and/or exercise. Generally, a child is not considered obese until the weight is at least 10 percent higher than what is recommended for the height and body type. Obesity most commonly begins in childhood between the ages of 5 and 6, and during adolescence. Studies have shown that a child who is obese between the ages of 10 and 13 has an 80 percent chance of becoming an obese adult.

What causes obesity?
The causes of obesity are complex and include genetic, biological, behavioral and cultural factors. Basically, obesity occurs when a person eats more calories than the body burns up. If one parent is obese, there is a 50 percent chance that the children will also be obese. However, when both parents are obese, the children have an 80 percent chance of being obese. Although certain medical disorders can cause obesity, less than 1 percent of all obesity is caused by physical problems. Obesity in childhood and adolescence can be related to:

poor eating habits
overeating or binging
lack of exercise (i.e., couch potato kids)
family history of obesity
medical illnesses (endocrine, neurological problems)
medications (steroids, some psychiatric medications)
stressful life events or changes (separations, divorce, moves, deaths, abuse)
family and peer problems
low self-esteem
depression or other emotional problems

What are risks and complications of obesity?
There are many risks and complications with obesity. Physical consequences include:

increased risk of heart disease
high blood pressure
diabetes
breathing problems
trouble sleeping

Child and adolescent obesity is also associated with increased risk of emotional problems. Teens with weight problems tend to have much lower self-esteem and be less popular with their peers. Depression, anxiety, and obsessive compulsive disordercan also occur.

How can obesity be managed and treated?
Obese children need a thorough medical evaluation by a pediatrician or family physician to consider the possibility of a physical cause. In the absence of a physical disorder, the only way to lose weight is to reduce the number of calories being eaten and to increase the child's or adolescent's level of physical activity. Lasting weight loss can only occur when there is self-motivation. Since obesity often affects more than one family member, making healthy eating and regular exercise a family activity can improve the chances of successful weight control for the child or adolescent.

Ways to manage obesity in children and adolescents include:

start a weight-management program
change eating habits (eat slowly, develop a routine)
plan meals and make better food selections (eat less fatty foods, avoid junk and fast foods)
control portions and consume less calories
increase physical activity (especially walking) and have a more active lifestyle
know what your child eats at school
eat meals as a family instead of while watching television or at the computer
do not use food as a reward
limit snacking
attend a support group (e.g., Overeaters Anonymous)

Obesity frequently becomes a lifelong issue. The reason most obese adolescents gain back their lost pounds is that after they have reached their goal, they go back to their old habits of eating and exercising. An obese adolescent must therefore learn to eat and enjoy healthy foods in moderate amounts and to exercise regularly to maintain the desired weight. Parents of an obese child can improve their child's self esteem by emphasizing the child's strengths and positive qualities rather than just focusing on their weight problem.

When a child or adolescent with obesity also has emotional problems, a child and adolescent psychiatrist can work with the child's family physician to develop acomprehensive treatment plan. Such a plan would include reasonable weight loss goals, dietary and physical activity management, behavior modification, and family involvement.

2011-09-11T17:50:00.000+05:30

You will not believe infacts about obesityaround us. The purpose of this article is to remind those who already know all the facts and to inform those who don’t. It is never a bad idea to remind ourselves of why we continue with the weight loss struggle. Why do we persevere with something which is often seen as unpleasant?

At this point let me just add that it doesn’t have to be an up hill struggle provided you have the right information to guide you to a healthy and enjoyable lifestyle. That is where the secret to weight loss lies, in your lifestyle. Naturally everyone has their own story and one size certainly does not fit all. If your weight gain was a result of a temporary lifestyle change like injury, pregnancy or illness you should be able to regain your balance provided you can return to your normal eating and exercise routines. On the other hand if you have been struggling with your weight for a long time then you need to look at your lifestyle.

Most people want a quick, easy solution for weight loss which is possible provided they only want to lose a few pounds/kilos. For anyone with more to lose the solution requires a bit more thinking. While “going on a diet” can work in the short term, the real secret to weight loss and maintenance can be found in your motivation and mind set.

14 facts about Obesity.

1. Obesity is a chronic condition like diabetes or heart disease.
2. Obesity won’t go away by it’s self and can’t be treated quickly.
3. You are defined as obese if you are 20% above normal body weight due to fat.
4. You may not look obese but if you fall in this category you run the health risks.
5. Your genes may explain some of your excess weight but not all.
6. There is a healthy weight range for everyone, find out what yours is.
7. Your basic body shape is inherited; but your lifestyle determines your health.
8. Even small amounts of weight loss result in big health improvements.
9. The only way to attain a healthy weight is to find a plan and stick to it for life.
10. You must develop your own plan that is flexible and keeps you happy.
11. Three to 5 percent of U.S. medical spending goes to prevention; the rest, to treatment. The public health community wants more for prevention.
12. A Canadian study found that 83 percent of doctors are less likely to perform exams on obese patients, according to University of Alberta researcher Tim Caulfield, research director in public health sciences.
13. Only 36 percent of parents with heavy children say their doctor suggested their child lose weight, a Consumer Reports poll found; 64 percent say the doctor didn’t mention it.
14. Liposuction among teens has tripled, to 5,000 last year, according to U.S. News and World Report.

Facts on Obesity

2011-09-11T17:45:00.000+05:30

Obesity

What Is Obesity?

Obesity is an excess proportion of total body fat. A person is considered obese when his or her weight is 20% or more above normal weight. The most common measure of obesity is the body mass index or BMI. A person is considered overweight if his or her BMI is between 25 and 29.9; a person is considered obese if his or her BMI is over 30.

"Morbid obesity" means that a person is either 50%-100% over normal weight, more than 100 pounds over normal weight, has a BMI of 40 or higher, or is sufficiently overweight to severely interfere with health or normal function.

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What Causes Obesity?

Obesity occurs when a person consumes more calories than he or she burns. For many people this boils down to eating too much and exercising too little. But there are other factors that also play a role in obesity. These may include:

Age. As you get older, your body's ability to metabolize food slows down and you do not require as many calories to maintain your weight. This is why people note that they eat the same and do the same activities as they did when they were 20 years old, but at age 40, gain weight.
Gender. Women tend to be more overweight than men. Men have a higher resting metabolic rate (meaning they burn more energy at rest) than women, so men require more calories to maintain their body weight. Additionally, when women become postmenopausal, their metabolic rate decreases. That is partly why many women gain weight after menopause.
Genetics. Obesity (and thinness) tends to run in families. In a study of adults who were adopted as children, researchers found that participating adult weights were closer to their biological parents' weights than their adoptive parents'. The environment provided by the adoptive family apparently had less influence on the development of obesity than the person's genetic makeup. In fact, if your biological mother is heavy as an adult, there is approximately a 75% chance that you will be heavy. If your biological mother is thin, there is also a 75% chance that you will be thin. Nevertheless, people who feel that their genes have doomed them to a lifetime of obesity should take heart. Many people genetically predisposed to obesity do not become obese or are able to lose weight and keep it off.
Environmental factors. Although genes are an important factor in many cases of obesity, a person's environment also plays a significant role. Environmental factors include lifestyle behaviors such as what a person eats and how active he or she is.
Physical activity. Active individuals require more calories than less active ones to maintain their weight. Additionally, physical activity tends to decrease appetite in obese individuals while increasing the body's ability to preferentially metabolize fat as an energy source. Much of the increase in obesity in the last 20 years is thought to have resulted from the decreased level of daily physical activity.
Psychological factors. Psychological factors also influence eating habits and obesity. Many people eat in response to negative emotions such as boredom, sadness, or anger. People who have difficulty with weight management may be facing more emotional and psychological issues; about 30% of people who seek treatment for serious weight problems have difficulties with binge eating. During a binge-eating episode, people eat large amounts of food while feeling they can't control how much they are eating.
Illness. Although not as common as many believe, there are some illnesses that can cause obesity. These include hormone problems such as hypothyroidism (poorly acting thyroid slows metabolism), depression, and some rare diseases of the brain that can lead to overeating.
Medication. Certain drugs, such as steroids and some antidepressants, may cause excessive weight gain.

Emotional Aspects of Obesity

One of the most painful aspects of obesity may be the emotional suffering it causes. American society places great emphasis on physical appearance, often equating attractiveness with slimness or muscularity. In addition, many people wrongly stereotype obese people as gluttonous, lazy, or both. However, more and more evidence contradicts this assumption. Obese people often face prejudice or discrimination at work, at school, while looking for a job, and in social situations. Feelings of rejection, shame, or depression are common.

When to Seek Help for Obesity

You should call your doctor if you are having emotional or psychological issues related to your obesity, need help losing weight, or if you fall into either of the following categories.

If your BMI is 30 or greater, you're considered obese. You should talk to your doctor about losing weight since you are at high risk of having health problems.
If you have an "apple shape" -- a so-called, "potbelly" or "spare tire" -- you carry more fat in and around your abdominal organs. Fat deposited primarily around your middle increases your risk of many of the serious conditions associated with obesity. Women's waist measurement should fall below 35 inches. Men's should be less than 40 inches. If you have a large waist circumference, talk to your doctor about how you can lose weight.

Facts of Obesity

2011-09-11T17:43:00.000+05:30

Facts About Obesity in the United States
Fact: Obesity rates are soaring in the U.S.
• Between 1980 and 2000, obesity rates doubled among adults. About 60
million adults, or 30% of the adult population, are now obese.
• Similarly since 1980, overweight rates have doubled among children and
tripled among adolescents – increasing the number of years they are
exposed to the health risks of obesity.
Fact: Obesity is already having an adverse impact on young people
• Type 2 diabetes – once believed to affect only adults – is now being
diagnosed among young people.
• In some communities almost half of the pediatric diabetes cases are type 2,
when in the past the total was close to zero. Although childhood-onset
Type 2 diabetes is still a rare condition, overweight children with this
disease are at risk of suffering the serious complications of diabetes as
adults, such as kidney disease, blindness, and amputations.
• Sixty-one percent of overweight 5- to10-year-olds already have at least
one risk factor for heart disease, and 26% have two or more risk factors.
Fact: Most people still do not practice healthy behaviors that can prevent obesity
The primary behaviors causing the obesity epidemic are well known and
preventable: physical inactivity and unhealthy diet. Despite this knowledge:
• Only about 25% of U.S. adults eat the recommended five or more servings
of fruits and vegetables each day.
• Less than 25% of adolescents eat the recommended five or more servings
of fruits and vegetables each day.
• More than 50% of American adults do not get the recommended amount
of physical activity to provide health benefits.
• More than a third of young people in grades 9–12 do not regularly engage
in vigorous physical activity.
Fact: Obesity-related costs place a huge burden on the U.S. economy
Direct health costs attributable to obesity have been estimated at $52 billion in
1995 and $75 billion in 2003.
Among children and adolescents, annual hospital costs related to overweight and
obesity more than tripled over the past two decades – rising to $127 million
during 1997–1999 (in 2001 constant U.S. dollars), up from $35 million during
1979–1981. Among adults in 1996, one study found that $31 billion of the treatment costs (in
year 2000 dollars) for cardiovascular disease – 17% of direct medical costs – were
related to overweight and obesity.

Unit - 1

2011-07-22T12:57:00.000+05:30

Concept of Management:

Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.

Because organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others.

Management as a Process

As a process, management refers to a series of inter - related functions. It is the process by which management creates, operates and directs purposive organization through systematic, coordinated and co-operated human efforts, according to George R. Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources”. As a process, management consists of three aspects:

Management is a social process - Since human factor is most important among the other factors, therefore management is concerned with developing relationship among people. It is the duty of management to make interaction between people - productive and useful for obtaining organizational goals.
Management is an integrating process - Management undertakes the job of bringing together human physical and financial resources so as to achieve organizational purpose. Therefore, is an important function to bring harmony between various factors.
Management is a continuous process - It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

Management as an Activity

Like various other activities performed by human beings such as writing, playing, eating, cooking etc, management is also an activity because a manager is one who accomplishes the objectives by directing the efforts of others. According to Koontz, “Management is what a manager does”. Management as an activity includes -

Informational activities - In the functioning of business enterprise, the manager constantly has to receive and give information orally or in written. A communication link has to be maintained with subordinates as well as superiors for effective functioning of an enterprise.
Decisional activities - Practically all types of managerial activities are based on one or the other types of decisions. Therefore, managers are continuously involved in decisions of different kinds since the decision made by one manager becomes the basis of action to be taken by other managers. (E.g. Sales Manager is deciding the media & content of advertising).
Inter-personal activities - Management involves achieving goals through people. Therefore, managers have to interact with superiors as well as the sub-ordinates. They must maintain good relations with them. The inter-personal activities include with the sub-ordinates and taking care of the problem. (E.g. Bonuses to be given to the sub-ordinates).

Management as a Discipline

Management as a discipline refers to that branch of knowledge which is connected to study of principles & practices of basic administration. It specifies certain code of conduct to be followed by the manager & also various methods for managing resources efficiently.

Management as a discipline specifies certain code of conduct for managers & indicates various methods of managing an enterprise. Management is a course of study which is now formally being taught in the institutes and universities after completing a prescribed course or by obtaining degree or diploma in management, a person can get employment as a manager.

Any branch of knowledge that fulfils following two requirements is known as discipline:

There must be scholars & thinkers who communicate relevant knowledge through research and publications.
The knowledge should be formally imparted by education and training programmes.

Since management satisfies both these problems, therefore it qualifies to be a discipline. Though it is comparatively a new discipline but it is growing at a faster pace.

Management as a Group

Management as a group refers to all those persons who perform the task of managing an enterprise. When we say that management of ABC & Co. is good, we are referring to a group of people those who are managing. Thus as a group technically speaking, management will include all managers from chief executive to the first - line managers (lower-level managers). But in common practice management includes only top management i.e. Chief Executive, Chairman, General Manager, Board of Directors etc. In other words, those who are concerned with making important decisions, these persons enjoy the authorities to use resources to accomplish organizational objectives & also responsibility to for their efficient utilization

Management as a group may be looked upon in 2 different ways:

All managers taken together.
Only the top management

The interpretation depends upon the context in which these terms are used. Broadly speaking, there are 3 types of managers -

Patrimonial / Family Manager: Those who have become managers by virtue of their being owners or relatives of the owners of company.
Professional Managers: Those who have been appointed on account of their specialized knowledge and degree.
Political Managers / Civil Servants: Those who manage public sector undertakings.

Managers have become a part of elite group of society as they enjoy higher standard of living in the society.

Management as a Science

Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explains a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. These principles are developed through scientific method of observation and verification through testing.

Science is characterized by following main features:

Universally acceptance principles - Scientific principles represents basic truth about a particular field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. - law of gravitation which can be applied in all countries irrespective of the time.

Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization - business or non business.

Experimentation & Observation - Scientific principles are derived through scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round the sun has been scientifically proved.

Management principles are also based on scientific enquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.

Cause & Effect Relationship - Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion.

The same is true for management, therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces productivity of organization.

Test of Validity & Predictability - Validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give same result. Moreover future events can be predicted with reasonable accuracy by using scientific principles. E.g. H₂ & O₂ will always give H₂O. Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

It cannot be denied that management is a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science. Ernest Dale has called it as a Soft Science.

Management as an Art

Art implies application of knowledge & skill to trying about desired results. An art may be defined as personalized application of general theoretical principles for achieving best possible results. Art has the following characters -

Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient. It is very important to know practical application of theoretical principles. E.g. to become a good painter, the person may not only be knowing different colour and brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also know how to apply various principles in real situations by functioning in capacity of manager.
Personal Skill: Although theoretical base may be same for every artist, but each one has his own style and approach towards his job. That is why the level of success and quality of performance differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.
Creativity: Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner.
Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing.
Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery & methods to promote growth of an organization.

Thus, we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with moulding the attitude and behavior of people at work towards desired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveals that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills.

A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ’know’ and art teaches to ’do’. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.).

The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit.

Management as a Profession

Over a large few decades, factors such as growing size of business unit, separation of ownership from management, growing competition etc have led to an increased demand for professionally qualified managers. The task of manager has been quite specialized. As a result of these developments the management has reached a stage where everything is to be managed professionally.

A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body. The essentials of a profession are:

Specialized Knowledge - A profession must have a systematic body of knowledge that can be used for development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly a manager must have devotion and involvement to acquire expertise in the science of management.
Formal Education & Training - There are no. of institutes and universities to impart education & training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary.
Social Obligations - Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. Their actions are influenced by social norms and values. Similarly a manager is responsible not only to its owners but also to the society and therefore he is expected to provide quality goods at reasonable prices to the society.
Code of Conduct - Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure self discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.
Representative Association - For the regulation of profession, existance of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA however does not have any statuary powers to regulate the activities of managers.

From above discussion, it is quite clear that management fulfills several essentials of a profession, even then it is not a full fledged profession because: -

It does not restrict the entry in managerial jobs for account of one standard or other.
No minimum qualifications have been prescribed for managers.
No management association has the authority to grant a certificate of practice to various managers.
All managers are supposed to abide by the code formulated by AIMA,
Competent education and training facilities do not exist. .
Managers are responsible to many groups such as shareholders, employees and society. A regulatory code may curtail their freedom.
Managers are known by their performance and not mere degrees.
The ultimate goal of business is to maximize profit and not social welfare. That is why Haymes has rightly remarked, “The slogan for management is becoming - ’He who serves best, also profits most’.

Features of Management

Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Nature of management can be highlighted as: -

1. Management is a continuous & never ending process

Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and Controlling. The manager has to Plan and Organise all the activities. He had to give proper Directions to his subordinates. He also has to Control all the activities. The manager has to perform these functions continuously. Therefore, management is a continuous and never ending process.

2. Management is Goal-Oriented: The success of any management activity is accessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human & physical resources to fulfill the pre-determined goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable prices. This can be achieved by employing efficient persons and making better use of scarce resources

3. Management is getting things done through people

The managers do not do the work themselves. They get the work done through the workers. The workers should not be treated like slaves. They should not be tricked, threatened or forced to do the work. A favourable work environment should be created and maintained.

4. Management is a result oriented science and art

Management is result oriented because it gives a lot of importance to "Results". Examples of Results like, increase in market share, increase in profits, etc. Management always wants to get the best results at all times.

5. Management is multidisciplinary in nature

Management has to get the work done through people. It has to manage people. This is a very difficult job because different people have different emotions, feelings, aspirations, etc. Similarly, the same person may have different emotions at different times. So, management is a very complex job. Therefore, management uses knowledge from many different subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature.

6. Management is a group and not an individual activity

Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Nowadays, importance is given to the team (group) and not to individuals.

7. Management follows established principles or rules

Management follows established principles, such as division of work, discipline, unity of command, etc. These principles help to prevent and solve the problems in the organisation.

8. Management is aided but not replaced by computers

Nowadays, all managers use computers. Computers help the managers to take accurate decisions. However, computers can only help management. Computers cannot replace management. This is because management takes the final responsibility. Thus Management is aided (i.e. helped) but not replaced by computers.

9. Management is situational in nature

Management makes plans, policies and decisions according to the situation. It changes its style according to the situation. It uses different plans, policies, decisions and styles for different situations.

The manager first studies the full present situation. Then he draws conclusions about the situation. Then he makes plans, decisions, etc., which are best for the present situation. This is called Situational Management.

10. Management need not be an ownership

In small organisations, management and ownership are one and the same. However, in large organisations, management is separate from ownership. The managers are highly qualified professionals who are hired from outside. The owners are the shareholders of the company.

11. Management is both an art and science

Management is result-oriented. Therefore, it is an Art. Management conducts continuous research. Thus, it is also a Science.

12. Management is all pervasive

Management is necessary for running a business. It is also essential for running business, educational, charitable and religious institutions. Management is a must for all activities, and therefore, it is all pervasive.

13. Management is intangible i.e. not seen but realised

Management is intangible, i.e. it cannot be seen and touched, but it can be felt and realised by its results. The success or failure of management can be judged only by its results. If there is good discipline, good productivity, good profits, etc., then the management is successful and vice-versa.

14. Management use a professional approach in work

Managers use a professional approach for getting the work done from their subordinates. They delegate (i.e. give) authority to their subordinates. They ask their subordinates to give suggestions for improving their work. They also encourage subordinates to take the initiative. Initiative means to do the right thing at the right time without being guided or helped by the superior.

15. Management is also dynamic in nature

Management is dynamic in nature. That is, management is creative and innovative. An organisation will survive and succeed only if it is dynamic. It must continuously bring in new and creative ideas, new products, new product features, new ads, new marketing techniques, etc.

Management Concepts – The Four Functions of Management

For any kind of organization to run smoothly in achieving their set goals and objectives they need to implement management concepts. To plan for it, there are four basic management concepts that allow any organization to handle planned, tactical and set decisions. What are those plans? The answer lies here…

Any organization, whether new or old, whether small or big need to run smoothly and achieve the goals and objectives which it has set forth. For this they had developed and implemented their own management concepts. There are basically four management concepts that allow any organization to handle the tactical, planned and set decisions. The four basic functions of the management are just to have a controlled plan over the preventive measure.

The four functions of management are:

The base function is to: Plan
It is the foundation area of management. It is the base upon which the all the areas of management should be built. Planning requires administration to assess; where the company is presently set, and where it would be in the upcoming. From there an appropriate course of action is determined and implemented to attain the company’s goals and objectives

Planning is unending course of action. There may be sudden strategies where companies have to face. Sometimes they are uncontrollable. You can say that they are external factors that constantly affect a company both optimistically and pessimistically. Depending on the conditions, a company may have to alter its course of action in accomplishing certain goals. This kind of preparation, arrangement is known as strategic planning. In strategic planning, management analyzes inside and outside factors that may affect the company and so objectives and goals. Here they should have a study of strengths and weaknesses, opportunities and threats. For management to do this efficiently, it has to be very practical and ample.

The subsequent function is to: Organize
The second function of the management is getting prepared, getting organized. Management must organize all its resources well before in hand to put into practice the course of action to decide that has been planned in the base function. Through this process, management will now determine the inside directorial configuration; establish and maintain relationships, and also assign required resources.

While determining the inside directorial configuration, management ought to look at the different divisions or departments. They also see to the harmonization of staff, and try to find out the best way to handle the important tasks and expenditure of information within the company. Management determines the division of work according to its need. It also has to decide for suitable departments to hand over authority and responsibilities.

The third function is to: Direct
Directing is the third function of the management. Working under this function helps the management to control and supervise the actions of the staff. This helps them to assist the staff in achieving the company’s goals and also accomplishing their personal or career goals which can be powered by motivation, communication, department dynamics, and department leadership.

Employees those which are highly provoked generally surpass in their job performance and also play important role in achieving the company’s goal. And here lies the reason why managers focus on motivating their employees. They come about with prize and incentive programs based on job performance and geared in the direction of the employees requirements.

It is very important to maintain a productive working environment, building positive interpersonal relationships, and problem solving. And this can be done only with Effective communication. Understanding the communication process and working on area that need improvement, help managers to become more effective communicators. The finest technique of finding the areas that requires improvement is to ask themselves and others at regular intervals, how well they are doing. This leads to better relationship and helps the managers for better directing plans.

The final function is to: Control
Control, the last of four functions of management, includes establishing performance standards which are of course based on the company’s objectives. It also involves evaluating and reporting of actual job performance. When these points are studied by the management then it is necessary to compare both the things. This study on comparision of both decides further corrective and preventive actions.

In an effort of solving performance problems, management should higher standards. They should straightforwardly speak to the employee or department having problem. On the contrary, if there are inadequate resources or disallow other external factors standards from being attained, management had to lower their standards as per requirement. The controlling processes as in comparison with other three, is unending process or say continuous process. With this management can make out any probable problems. It helps them in taking necessary preventive measures against the consequences. Management can also recognize any further developing problems that need corrective actions.

Effective and efficient management leads to success, the success where it attains the objectives and goals of the organizations. Of course for achieving the ultimate goal and aim management need to work creatively in problem solving in all the four functions. Management not only has to see the needs of accomplishing the goals but also has to look in to the process that their way is feasible for the company.

Levels of Management

The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: -

1. Top level / Administrative level

2. Middle level / Executory

3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:

LEVELS OF MANAGEMENT

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the enterprise.

b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.

c. It prepares strategic plans & policies for the enterprise.

d. It appoints the executive for middle level i.e. departmental managers.

e. It controls & coordinates the activities of all the departments.

f. It is also responsible for maintaining a contact with the outside world.

g. It provides guidance and direction.

h. The top management is also responsible towards the shareholders for the performance of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as -

a. They execute the plans of the organization in accordance with the policies and directives of the top management.

b. They make plans for the sub-units of the organization.

c. They participate in employment & training of lower level management.

d. They interpret and explain policies from top level management to lower level.

e. They are responsible for coordinating the activities within the division or department.

f. It also sends important reports and other important data to top level management.

g. They evaluate performance of junior managers.

h. They are also responsible for inspiring lower level managers towards better performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include -

a. Assigning of jobs and tasks to various workers.

b. They guide and instruct workers for day to day activities.

c. They are responsible for the quality as well as quantity of production.

d. They are also entrusted with the responsibility of maintaining good relation in the organization.

e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.

f. They help to solve the grievances of the workers.

g. They supervise & guide the sub-ordinates.

h. They are responsible for providing training to the workers.

i. They arrange necessary materials, machines, tools etc for getting the things done.

j. They prepare periodical reports about the performance of the workers.

k. They ensure discipline in the enterprise.

l. They motivate workers.

m. They are the image builders of the enterprise because they are in direct contact with the workers.

Business Studies II, unit - 1

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Business case studies

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Human Resource and Organization Behavior Case Studies

1.Employee Motivation and Retention Strategies at Microsoft Corporation

The case examines the employee motivation and retention strategies of the US based Microsoft Corporation (Microsoft). Since its inception, Microsoft was appreciated for its employee-friendly HR practices. However, during the late 1990s, as the company was growing rapidly in size, it lost the popular elements of its work culture. Moreover, several racial discrimination lawsuits and antitrust proceedings affected the company's corporate image and financial performance adversely. In the early 2000s, in order to improve its profit margins, Microsoft started cutting several employee benefits, which demotivated its employees. To boost the employee morale, in 2006, Steve Ballmer, the then CEO of Microsoft, appointed Lisa Brummel as the Senior Vice-president of HR.

After taking charge, Brummel announced a plan to significantly revamp some of the existing HR management practices at the company. She announced a plan named 'myMicrosoft,' which included developing appropriate systems to enhance communication between the employees and the HR department, making changes in the company's performance review system, introducing several new employee benefits, and designing new workplaces in an effort to attract and retain employees. The case analyzes in detail the HR initiatives taken by Brummel. It ends with a discussion on the benefits realized from the initiatives implemented by her.

Issues:

» Study the corporate culture and HR practices at Microsoft.

» Analyze the problems faced by Microsoft on HR front during the late 1990s and early 2000s.

» Evaluate the measures taken by Brummel to motivate employees.

» Discuss the benefits of the strategies implemented by Brummel.

» Appreciate the importance of recruiting the right people for a particular job.

Key Words:

Microsoft Corporation, Employee Value Proposition, myMicrosoft Program, Work Culture, Performance Review System, Racial Discrimination, Class Action Lawsuit, Antitrust Trial, Stock Option Program, Employee Benefits, One Microsoft Way, Employee Communication, Career Development, Management Training, Compensation System, Forced Curve System, Commitment Rating, Workplace Advantage Strategy, Workplace Design Lab

2.Success at What Cost? - A Case Study in Managerial Ethics & Compliance

Abstract:

This case study is about SuperDrugz, a mid-sized pharmaceutical company in India. Initially starting off as an entrepreneurial venture, the company had been put in the hands of a professional management group. The new team strove to cultivate a performance culture through strong results-based controls and weeding out non-performers.

However, a whistle-blower brought out into the open serious ethical lapses in the company. Shortly after joining as an Area Manager in the country's North Eastern Region, the person found that the team (including his seniors) was adopting unethical/illegal means to meet the high sales targets.

Faced with the dilemma of whether to conform to the team or comply with law, he chose the later. Now the founder of the company had to put in place mechanisms to ensure that everyone in the company complied with the company's code of ethics and the law of the land.

Issues:

» Understand the issue in managerial ethics and challenges in ensuring compliance.

» Understand the factors that influence ethical behavior.

» Understand the mechanisms for ethical control and compliance.

Keywords:

Training & Development, Sales training, Coaching, Return on investment (ROI), Line and Staff conflict, On-the-job training (OJT), Classroom training, Implementation, Transfer of learning, Individual development plans

3.Improve Performance through Change Management

Abstract:

These caselets deal with the issue of change management.

Caselet 1 discusses how the implementation of change management in an organization can bring about dramatic improvement in profits and help it become a market leader. It also highlights the role played by management and employees of an organization in implementing planned change.

Caselet 2 discusses the importance of changing employee behavior and managerial practices for change programs to be successful in organizations.

Caselet 3 examines the difficulties encountered by management in merging two unequal

organizations and the steps to be taken to overcome employee resistance to change.

Issues:

» How managerial practices and employee behavior can affect the organizational performance, the role of management and employees of an organization in facilitating planned change, significance and advantages of implementation of change program in organizations

Keywords:

Change management, implementation, dramatic improvement, profits, market leader, planned change, employee behavior, managerial practices, unequal organizations, employee resistance

4.Parquesoft - A Unique Social Entrepreneurship Initiative

Abstract:

Colombia based ParqueSoft is a social entrepreneurship initiative by Orlando Rincón Bonilla (Orlando). ParqueSoft is a network of science and technology parks. It acts as incubators for young entrepreneurs from marginalized communities of Colombia. ParqueSoft's incubation business model is unique as it required an entrepreneur to have an innovative product or solution to be eligible for availing its services. Entrepreneurs are provided with basic infrastructure and seed capital to start their organization within ParqueSoft. An informal work environment was maintained and organizations within ParqueSoft interacted with each other to solve their problems. Organizations are provided with services like marketing, legal, finance management, market research etc. which are non-core activities for a technology company.

All the products developed in the company are branded as ParqueSoft's products to cut costs of branding individual organizations. The company operated on a ‘pay-it-forward' model where the major part of profits earned by the organizations in ParqueSoft is used to support new entrepreneurs and incubate more companies.

Issues:

» Get insights on a low cost model of incubating companies.
» Study an innovative social entrepreneurship initiative.
» Appreciate the importance of a sustainable business model for social entrepreneurs.
» Examine the benefits of collaborative approach in IT ventures.

Keywords:

ParqueSoft, Social Entrepreneurship, Sustainable Business Model, Orlando Rincón Bonilla, Schwab Foundation, Marginalized Communities, Business Incubator, Social Inclusion, Very Small Enterprises, OpenManga, Pay-it-Forward Model, Business Philosophy, Strategic Alliances, Enterprise Development, E-Learning, Software Quality Assurance, Financial Strength, Venture Capital, Strategic Marketing Plan, Conceptualization of Opportunities, Colombian IT Sector, Colombian Economy

ParqueSoft is a social initiative that happens to use science and technology as a vehicle. Its objective is to stimulate democracy and social justice through the inclusion of previously marginalized young people living in low-income communities, transforming them into protagonists of their own enterprises, not employees." ¹

- Orlando Rincón Bonilla, Founder, ParqueSoft, in March 2008.

"I saw more creativity in Colombia than I've seen in India. ParqueSoft is a national asset. They are leading a revolution." ²

- William Musgrave Jr., President and CEO, The Enterprise Network ³, in April 2006.

Introduction

In November 2008, Colombia-based non-profit organization ParqueSoft, a network of science and technology parks, announced that it aimed to incubate a total of 1000 micro-enterprises by 2012.

With the number of companies incubated since its inception in December 1999 till November 2008 standing at 270, industry observers wondered whether ParqueSoft's aim was a little too ambitious. ParqueSoft was recognized as one of the most innovative business models in the field of IT in Colombia and had received several awards at national and international forums.

Economics Case Studies

The Economic Consequences of Population Aging

Population aging is an unintended outcome of human development and with more countries showing economic progress, the phenomenon is expected to become more widespread. The case discusses the impact of aging populations on the economies of some developed countries.

It examines the reasons for the phenomenon of aging populations and describes some of the measures that can be taken to counter its effects. The case also discusses some of the initiatives taken by governments to increase birth rates, and expand the workforce, and ends with a discussion on the future challenges facing countries with aging populations.

Issues:

The case has the following objectives

» Understand the phenomenon of an aging population.

» Learn more about the reasons for an aging population.

» Analyze the possible economic effects of aging populations.

» Evaluate policy measures to tackle the economic consequences of population aging.

This case is meant for MBA/PGDBM students and is designed to be a part of their Economics or Business Environment curriculum.

Keywords:

Aging Population, Age Structure, Low Birth Rate, High Life Expectancy, Economic Effects of Aging Population, Pension Reforms, Change in Consumption Patterns, Dependency Ratio, Saving and Investment, Female participation in workforce

The Economic Consequences of Population Aging

A substantial degree of population aging is expected over the next few decades in all regions of the world. Ideally, policy responses should be put in place ahead of time to ease adaptation to these long-term demographic changes." ¹

- An excerpt from the World Economic and Social Survey 2007, United Nations Department of Economic and Social Affairs, released in June 2007.

"People are living longer and, in some parts of the world, healthier lives…. Societal aging may affect economic growth and many other issues, including the sustainability of families, [and] the ability of states and communities to provide resources for older citizens." ²

- An excerpt from a report presented at the Summit on Global Aging ³ in March 2007.

Introduction

In July 2007, Japan's Ministry of Internal Affairs and Communications published a report on the changing demographics in the country. According to the report, the proportion of people aged 65 or over had grown to around 21 percent in 2007, from 17.3 percent in April 2000.⁴ With this, Japan displaced Italy to become the country with the highest percent of aged people ⁵. The report added that if current trends continued, the population of elderly people in Japan would account for 40.5 percent of the total population by 2055 - and there would only be 1.3 people of working age (15-64 years) to support each person over the age of 65 years in 2055 (down from more than 3 people of working age ⁶ in 2007).

The report predicted average life span of 90.34 years for women and 83.67 years for men ⁷ by 2055 (Refer Exhibit I for the projected life expectancy of the Japanese). In recent times, aging populations – characterized by an increase in the mean or the median age of the population, and a decline in the proportion of those aged 15 or lower and a rise in the proportion of those aged 65 or over in the total population – and their consequences have become an area of focus for economists, marketers, sociologists, and policy makers.

The phenomenon was expected to affect almost all countries, whether developed or developing. However, developed countries would experience it sooner than others or were already experiencing it.

Countries with large and growing young populations - referred to as the 'youth bulge' - could, for the present, enjoy the benefits of a young population; but, with time, these countries too would have aging populations.

The aging of populations occurred primarily for two reasons – declines in the birth rate and increases in life expectancy

- An excerpt from the World Economic and Social Survey 2007, United Nations Department of Economic and Social Affairs, released in June 2007.

- An excerpt from a report presented at the Summit on Global Aging³ in March 2007.

Introduction

In July 2007, Japan's Ministry of Internal Affairs and Communications published a report on the changing demographics in the country. According to the report, the proportion of people aged 65 or over had grown to around 21 percent in 2007, from 17.3 percent in April 2000.⁴ With this, Japan displaced Italy to become the country with the highest percent of aged people⁵. The report added that if current trends continued, the population of elderly people in Japan would account for 40.5 percent of the total population by 2055 - and there would only be 1.3 people of working age (15-64 years) to support each person over the age of 65 years in 2055 (down from more than 3 people of working age⁶ in 2007).

The report predicted average life span of 90.34 years for women and 83.67 years for men⁷ by 2055 (Refer Exhibit I for the projected life expectancy of the Japanese). In recent times, aging populations – characterized by an increase in the mean or the median age of the population, and a decline in the proportion of those aged 15 or lower and a rise in the proportion of those aged 65 or over in the total population – and their consequences have become an area of focus for economists, marketers, sociologists, and policy makers.

The Nordic Economic Model

The Nordic economic model, characterized by market-based economies and generous welfare systems, seemed to be working well, with the countries in the region figuring at the top of various lists that ranked countries on the basis of human development, per capita income, economic freedom, etc.

The case discusses the history of the Nordic economies over the years. It then explains the main features of the Nordic economic model and goes on to examine some of the reasons behind the global competitiveness of the Nordic economies.

The case also recounts some challenges that these countries face as well as the criticisms of the welfare model adopted by these countries. The case ends with a brief discussion on the outlook for these countries.

Issues:

» Understand the evolution of Nordic economies.

» Analyze the reasons behind the competitiveness of the Nordic economies.

» Evaluate the sustainability of the welfare policies adopted by Nordic economies.

» Analyze the future of the Nordic region in the light of challenges such as aging populations, globalization, etc.

Keywords:

Nordic economic model, Welfare state, Competitiveness of Nations, Government policy, High tax rates and economic growth, Pension reforms, Aging population, Denmark, Norway, Sweden, Finland, Iceland

Introduction :---

The September 2007 issue of Reader's Digest, a general interest magazine, ranked 141 countries on the basis of quality of life. The Nordic countries topped the list, with Finland taking the first place followed by Iceland, Norway, and Sweden. Denmark was placed tenth. The ranking was based on statistics derived from the Human Development Index ⁵ and the Environmental Sustainability Index ⁶.

The Nordic countries had consistently figured at the top of such lists during the previous decade. Economists credited these countries' economic model for their success as measured by important social and economic indicators such as per capita GDP, employment levels, etc.

The Nordic economic model was characterized by high taxes, a large public sector, and moderate market regulation. These countries were welfare states, with healthcare, education, and other social services provided free for all citizens.

Negating the commonly held belief that high tax rates curtailed growth, the Nordic countries showed growth despite high taxes mainly because they were able to achieve efficiency and bring about innovation in the public sector. Besides, with the Nordic economies being only slightly less liberal than Anglo-Saxon economies such as the UK and Ireland, foreign investment was high in these countries.

Also, these economies had benefited from the absence of corruption and red tape.

However, there were challenges. With globalization, immigration, and aging populations, there was increasing pressure on the welfare model.

The Nordic countries had responded by introducing reforms in pension and healthcare in the early 2000s.

As of 2007, though the Nordic economies were among the best performers globally, reforms to sustain growth and support government expenditure were still being conceptualized and implemented.

Volkswagen's Marketing Strategy in India

Abstract:

The case examines the marketing strategies of Volkswagen Group India, the Indian subsidiary of German automobile manufacturer, Volkswagen AG (Volkswagen). Volkswagen entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India. Volkswagen Group India emphasized on all aspects of marketing mix including product, price, place and promotion. The company offered three brands including Audi, Skoda and Volkswagen that together comprised of 15 different models as of late 2009. Volkswagen Group India mainly catered to the luxury segment of the Indian car market. The company had established presence in India through separate distribution channels for each of its brands.

In its initial years, Volkswagen Group India primarily used the print media to promote its products. However, considering the growth potential of India's automobile market, the company started using electronic, digital and out of home media along with print media. In November 2009, the company launched an integrated marketing campaign to strengthen its brand image. The case describes the marketing campaign and ends with a discussion on the growth prospects of the company in future.

Issues:

» Understand the dynamics of the Indian passenger car market.

» Examine the growth strategies of Volkswagen Group India over the years.

» Analyze the marketing strategies of Volkswagen Group India.

» Study the future prospects of Volkswagen Group India.

Keywords:

Volkswagen Group India, Volkswagen India Private Limited, Indian Passenger Car Industry, Marketing Mix, Brand Awareness, Beetle, Skoda, Audi, Product Positioning, Promotional Campaigns, Volkswagen Group Sales India Private Limited, Skoda Auto India Private Limited, Pricing, Print Ad Campaign, Television Commercials, Corporate Branding Strategy, Integrated Marketing Campaign, Roadblock, Iconic Brand Campaigns, Out Of the Home Campaign, Curves are Back

Introduction Contd...

Raj Sawant, Business Head of Automark Motors, a Volkswagen dealer in Ahmedabad, Gujarat, India, said, "There are already over 170 advance bookings across India, and we have started delivering the cars as well. Going by the initial euphoria, we expect to sell around 300 Beetles in 2010."³

Volkswagen Group India, the Indian subsidiary of leading automobile manufacturer, Volkswagen AG (Volkswagen), based in Wolfsburg, Germany, had entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India.

Over the years, Volkswagen Group India not only launched several products, but also ensured that its brands were well known among the Indian consumers. Although, the company had had a presence in the Indian car market since 2001 and the Skoda and Audi branded cars were well known among consumers, the Volkswagen brand was not well recognized in the country.

Therefore, in November 2009, the company launched an integrated marketing campaign to build its brand image. It also launched a marketing campaign for its iconic model, the Beetle. Volkswagen India expected that with its brand building exercise, it would be able to increase its sales and capture a significant market share in the Indian car market...

Kraft Foods' Mobile Marketing Strategy

Abstract:

This case is about US-based Consumer Packaged Goods (CPG) Company Kraft Foods' (Kraft) mobile marketing strategy. Due to a reduction in consumer spending on packaged goods, Kraft decided to tap the mobile channel to promote its products as this channel had the capacity to enable value-added marketing. The company's mobile marketing campaigns were designed to meet the needs of customers and to help them integrate the company's brands into their everyday lives.

The case discusses the mobile marketing campaigns launched by Kraft Foods and their objectives. In 2008, Kraft launched a mobile campaign in Germany to promote the launch of its new instant coffee brand called Jacobs 2in1.

It was the first large-scale European product launch which used a mobile sampling campaign to enhance brand awareness. The campaign was integrated with traditional media and allowed customers to request samples and order products from their mobile phones. This was followed by the launch of a mobile cooking application for iPhone users called the iFood Assistant in December 2008. The application allowed customers to search for and download recipes, manage their shopping lists, and locate local stores thereby delivering value to the customer while at the same time promoting the company's products. The case also talks about the mobile website created by Kraft to facilitate consumer engagement on mobile devices, and how Kraft was taking its mobile marketing initiative further in countries such as Germany and the UK.

The case discusses whether the campaigns were successful in enhancing brand awareness and consumer involvement. It concludes by providing the reactions of analysts to Kraft Foods' mobile marketing campaigns. Analysts were of the view that the mobile marketing initiatives adopted by Kraft would serve the purpose of establishing a direct dialogue with customers as the mobile phone was a powerful communications device with respect to mobility, reach, and immediacy. Marketers should take advantage of the mobile medium and adopt it as part of their channel mix to gain a competitive edge, they said.

Issues:

» Study the mobile marketing strategy of Kraft Foods
» Understand the issues and challenges in creating and rolling out a mobile advertising campaign.
» Analyze the mobile marketing campaigns launched by Kraft Foods.
» Discuss and debate whether the mobile marketing campaigns of Kraft Foods would be able to achieve their objectives.
» Explore ways in which the company could make its mobile marketing campaigns more effective.

Introduction Contd...

Based in Northfield, Illinois, Kraft is the largest food company in North America with sales in more than 150 countries worldwide.

Some of its well-known brands are Kraft cheeses and dressings, Maxwell House coffees, Oscar Mayer meats, Philadelphia cream cheeses, Nabisco cookies and crackers, Toblerone and Milka chocolates, and Tang powdered beverages.

For the year 2008, the company reported US$ 42 billion in annual revenues. Since the early 2000s, marketing through mobile phones had gained in popularity because of the value it delivered to the end consumers.

CPG companies embraced mobile marketing and employed elements such as SMS alerts, mobile banner ads on targeted sites, mobile coupons, and mobile loyalty programs to promote their products.

At Kraft, the strategy was to demonstrate the values and attributes of Kraft's brands in an interactive way and provide consumers with relevant information such as recipes and nutrition information. The motive behind mobile marketing was to involve consumers and help them integrate the company's brands into their everyday lives.

In 2008, to respond to a reduction in consumer spending on packaged goods, Kraft adopted interactive marketing and decided to get onto the mobile Web by launching a mobile campaign in Germany in January 2008, to promote the launch of its new instant coffee brand called Jacobs 2in1. This was the first large-scale European product launch to use a mobile sampling campaign. The campaign was integrated with traditional media and allowed customers to request for samples and order products through their mobile phones...

Tourism Kamloops

Abstract:

The case discusses the promotion of Kamloops city as a vacation destination and the initiatives taken by Tourism Kamloops to transform the city into a favorable tourist destination. Over the years, the tourism industry in Kamloops had been growing steadily and had played a major role in contributing to the local economy. The case discusses the growth of Kamloops as the 'Tournament capital of Canada'. Sport tourism is one of the fastest growing segments of the tourism sector in Kamloops and the city has actively developed and promoted sports facilities for tournaments and hosted some major sporting events. The case also discusses the marketing campaign with TV personality and meteorologist Mark Madryga as brand ambassador to promote Kamloops as a vacation destination. The case talks about some of the challenges faced by Tourism Kamloops and how they might affect the tourism sector in Kamloops in the future.

Issues:

» Analyze the tourism industry in Kamloops and study the factors which contributed to the growth of the tourism industry in the region.

» Understand the role played by marketing, particularly the promotional campaigns, in developing the tourism industry of a country.

» Analyze the initiatives taken by Tourism Kamloops to promote the city of Kamloops as a vacation destination.

» Explore the strategies that Tourism Kamloops could adopt to develop the tourist sector in the region.

Introduction

In November 2009, Tourism Kamloops' 'Hometown Boy' advertising campaign won the Innovative Marketing Campaign Award at the first-ever tourism summit organized by the Canada-based Thompson Okanagan Tourism Association¹ (TOTA). The campaign was given the award for successfully using various advertising mediums such as TV, print, direct mail, and online advertising to attract tourists to the city of Kamloops. Talking about the campaign, TOTA chairman, Michael Ballingall (Ballingall), said, "This campaign has been a huge success on many levels. It matches a likeable personality with the Tourism Kamloops brand, which presents Kamloops as a place that blends energizing recreational opportunities with a culture of warm, welcoming people, allowing visitors to let loose and just play."²

Kamloops, a city in south central British Columbia³, Canada, is considered as British Columbia's Friendliest City. It is famous for its spectacular landscapes, fresh water lakes, abundant wildlife, and pleasant climate.

The region draws visitors from around the world because of its established reputation for water sports and fishing. Golf, mountain biking, and hiking are other popular outdoor activities for tourists in Kamloops. To promote the tourism sector in the region, the tourism association of British Columbia started Tourism Kamloops in 2005. Tourism Kamloops is one of the largest destination marketing organizations of British Columbia and has as its objective the marketing of Kamloops as a major tourist destination.

Over the years, the tourism industry in Kamloops had been growing steadily and had played a major role in contributing to the local economy.

In 2008, about 5 million tourists visited Kamloops from all over the world. In order to develop Kamloops as the preferred tourist destination in British Columbia, Tourism Kamloops planned to come out with more innovative advertising strategies in the future.

However, analysts expected the provincial government's move to dissolve Tourism British Columbia ⁴ and integrate it with the Ministry of Tourism, Culture, and the Arts to have a profound affect on the functioning and investments of the Tourism Kamloops...

Scorpio - Marketing an Automobile Brand

Abstract:

The case examines the marketing strategies adopted by Mahindra & Mahindra (M&M), leading Indian automobile manufacturer, for its newly launched sports utility vehicle 'Scorpio' in the early 21st century. It traces M&M's evolution from being just another Mahindra Group company into a major Indian business conglomerate. The reasons for the decision to develop the Scorpio are explained and details on the efforts that went into the creation of the vehicle are provided. Thereafter, the case discusses the marketing strategies (positioning, advertising, pricing and promotion) adopted by M&M for Scorpio. The case not only examines M&M's strategies for popularizing Scorpio, it also explores the increasing competition in the Indian SUV market.

Issues:

• Understand how changing market dynamics can force an industry leader to restructure its strategies (in terms of modifying the product mix and entering new segments)

Scorpio - Charging Ahead

In June 2003, 'Scorpio,' a sports utility vehicle (SUV³) from Mahindra and Mahindra Ltd. (M&M), a leading Indian automobile company, celebrated the first anniversary of its launch.

This one year journey had been quite fruitful for Scorpio, which had impressed many industry observers and customers.

A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000 customers to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order bookings. According to company sources, by the time it completed its first birthday, Scorpio had sold 15,000 units across India.

Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely positive reports. With demand for the vehicle growing steadily, M&M even had to increase its production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and 2,500 per month by late 2003.

Thanks to the high decibel advertising support, Scorpio had acquired high brand recall among consumers. In fact, it was said to be one of the very few automobile brands in India that successfully boosted the image of their parent companies (in this case M&M) as well.

Since its launch, Scorpio had won many prestigious awards, such as 'Car of the Year 2003' from Business Standard Motoring, BBC World Wheels and CNBC Autocar.
Besides improving M&M's image as an automobile company, Scorpio was reported to have played a major part in increasing the company's revenues for the financial year 2002-03.

The company's automotive segment witnessed a 37% increase in revenues, up from Rs 18.28 billion in 2001-2002 to Rs 25.11 billion in 2002-2003.

Also, M&M's automobile sales increased by 16% in 2002-2003 (68,852 units) over the previous year's sales (55,920 units).

The most important aspect of Scorpio's growing popularity was the impact it seemed to be having on the country's automobile market.

Scorpio had made other automotive manufacturers look afresh at the utility vehicles segment, which till now was believed to have little scope for growth in India.

Voice

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VOICE:

In traditional grammar, voice refers to the quality of a verb that indicates whether its subject acts (active voice) or is acted upon (passive voice). The distinction between active and passive voice applies only to transitive verbs.

Ø Objective is changed into subject; modal auxiliary if any is kept the same and appropriate form of ‘be’ (i.e. is, am, are, was, were, been, being) + V₃ is used.

Ø Subject is changed into object if it is not vague, otherwise omitted.

Ø If a sentence starts with primary auxiliary ‘do’ (do/does/did) then passive voice starts with appropriate form of be (i.e. is, am, are, was, were)

Ø ‘Who’ changes into ‘by whom’ in passive voice?

Ø Why, when, how, used in the beginning of active voice does not change its form in the passive voice.

Ø Passive of imperative sentence begins with ‘let’.

Conditionals

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CONDITIONALS:

Conditionals are verb tenses that are used to indicate that an action or state of being is dependent on the occurrence of a condition. The conditionals are used to talk about real or unreal situations; they are sometimes called if-clauses. Real Conditional describes real-life situations. Unreal Conditional describes unreal, imaginary situations.

Condition If Clause Main Clause

1. First conditional (possible action) If + V₁/V₅ Simple future

2. Second conditional (hypothetical action) If + V₂/were would + V₁

3. Third conditional (Impossible) If + had + V₃ would have + V₃

4. Zero conditional (cause and effect) If + V₁/V₅ present/imperative

Causatives

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CAUSITIVES: (have, get, make)

_{A causative form is, in linguistics, an expression of an agent causing or forcing a patient to perform an action or to be in a certain condition.}

1. Subject + have/get + object (thing) + V₃

2. Subject + have + object (person) + V₁

3. Subject + get + object (person) + to + V₁

4. Subject + make + object (person) + V₁

Important points

1. Get is possible instead of have, usually in informal spoken English.

I'm going to get my car fixed tomorrow.

2. We can also use to have someone do something to talk about giving instructions or orders -- more common in American English.

I had my assistant type the report.
I'll have my lawyer look into it.

Connectives

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A connective, or a conjunction as it is more formally known, is a part of speech that connects two words, phrases, or clauses together.

1.      Reason connectives (because/as, because of, since)
a.   statement + as/because + reason.    (because is used for more important reason).
b.   statement + because of + reason(noun phrase).
c.   statement + since +reason(negative).

2.      Purpose connectives (to/in order to, so that, for)
a.   action + to/in order to + purpose (command sentence)
b.   action + so that + purpose (complete sentence)
c.   action + for + object(sub. Purpose) + to + V₁                 (second sentence – purpose sentence)

3.      Unexpected results connectives (although/though/even though, despite/in spite of )
a.   though/although/even though +situation + unexpected results.
b.   despite/in spite of + situation(noun phrase) + unexpected results.

4.      Defining relative clause
a.   which/that for things (subject).
b.   who for person.
c.   what/that for things(object).
d.   where for time.
e.   when for time.
f.   whose for possessive.

Question Tag

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QUESTION TAG:

A question tag or tag question is a grammatical structure in which a declarative statement or an imperative is turned into a question by adding an interrogative fragment (the "tag"). The term "question tag" is generally preferred by British grammarians, while their American counterparts prefer "tag question".

Ø Question tag is made with auxiliary and pronoun of the subject.

Ø Negative auxiliary verb is changed into positive and vice versa.

Ø If there is no auxiliary in the sentence then appropriate forms of auxiliary ‘do’ is used i.e. ‘does’ for the singular in present tense, ‘do’ for the plural in present tense and ‘did’ for both singular and plural in past tense.

Ø Plural auxiliary and pronoun is used for the sentence beginning with someone, everyone and no one.

Ø ‘will you?’ is used for imperative sentences and ‘shall we?’ is used for the sentences beginning with ‘’Let’s’’.

Ø   Others:-
Sentence beginning with                                              Question Tag
I am   aren’t I?
I am not                                                                                am I?

Articles

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ARTICLES:

An article (abbreviated art) is a word that combines with a noun to indicate the type of reference being made by the noun. Articles specify the grammatical definiteness of the noun, in some languages extending to volume or numerical scope. The articles in the English language are the, a, and an. (Some can in certain circumstances function as a plural of a/an.)

Ø ‘A’ is used before a singular common noun or collective noun beginning with a consonant sound.

Ø ‘An’ is used before a singular common noun or collective noun beginning with a vowel sound.

Ø ‘The’ is used before a definite countable noun and before those things or group of things which are unique or unique of its kind such as the sun, the earth, The Alps, The Taj Mahal, etc. It is also used before the things of invention, musical instruments, superlatives, parts of body, ordinals, newspapers, date, title/post, seasons, religious books. It is basically used to particularize a common noun.

Ø ‘the’ is also used before the proper names which give a particular meaning(e.g., the Punjab, the Saptakoshi) or before country names composed of either more than one common nouns(e.g. The USA, The UK) or if they seem plural i.e. end with ‘s’ ( e.g. The Netherlands)

Ø In general, article is not used before proper noun, abstract noun and material noun. If ‘the’ is used before proper noun, it becomes common noun.

Ø ‘The’ article is omitted before a common noun used in its widest sense (e.g. man is mortal), before languages and before school, college, church, bed, table, hospital, market, prison, etc when these places are visited or used for their primary purpose unless they are particularized.

Agreement of the verb with the subject and The Articles

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# AGREEMENT OF THE VERB WITH THE SUBJECT

Ø Two subjects joined by ‘and’ denoting two different subjects (i.e. each subject beginning with an article) take plural verb but two subjects joined by ‘and’ denoting the same person (i.e. having only one article in the sentence) take singular verb.

Ø Subject preceded by each, every, either, neither, apiece of, the quality of takes a singular verb.

Ø Verb agrees with the subject after ‘or’ or ‘nor’, if any. And if two subjects of different number (i.e. singular or plural) have to be joined by ‘or’ or ‘nor’ then plural subject must be placed after ‘or’ or ‘nor’.

Ø Number of subject is not affected by the words: with, together with, in addition to, as well as, and the verb agrees according to the no of subject (i.e. singular or plural) mentioned.

ARTICLES:

Ø ‘A’ is used before a singular common noun or collective noun beginning with a consonant sound.

Ø ‘An’ is used before a singular common noun or collective noun beginning with a vowel sound.

Ø In general, article is not used before proper noun, abstract noun and material noun. If ‘the’ is used before proper noun, it becomes common noun.

Concept: Verb

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1.   Verb:
       A verb says what a person or thing does, and can describe. E.g.
       an action – run, hit,                                  a state – be, have, seem, appear,
       an event – rain, happen,                         a change – become, grow

1.1. Transitive and intransitive verb:
        That verb which takes (an) objective(s) is transitive verb and that which does not take any object is
         intransitive verb. E.g. –
        * Transitive verb – play, read, write, drive,
        * Intransitive – weep, cry, sleep, laugh,

1.2. Auxiliary (verb):
An auxiliary is a verb, used to form the tenses, moods, voices, etc of other verbs. There are two
types of auxiliaries which are as follows:

a) Primary Auxiliary –
               That auxiliary which can be used as full verb or main verb is primary auxiliary. Primary auxiliary
               are as follows :
                i. Do – do, did, done, doing ,does
                ii. Have – have, had, having, has
                iii. Be – is, am, are, was, were, been, being, be

b) Modal Auxiliary –
                Modal auxiliary also known as helping verb helps the main verb in forming the moods and
               tenses, Except for dare and need, Modal auxiliary can not be used independently in a sentence.
                The following are the modal auxiliaries with functions mentioned –

                # Ability/possibility/permission – can, could, may, might
                # Obligation – Have(got) to, must, need (in negative and question)
                # Assumptions and deductions – will, should, can must
                # Future tense, and offers & suggestions – shall, will
                # Moral Obligation, desirability, advice and criticism – ought to, should
                # Requests – can, could, will, would

Dare (be brave enough to) is mainly used in negative and question.

1.3. Verbs: Forms and number

V₁ (infinitive) is used to form present tense in plural number, and used in future tense in both singular and plural number. E.g.-eat, read
V₂ (past tense) is used as simple past tense in all numbers. E.g.-ate, read
V₃ (past participle) is used as perfect tense in all numbers. E.g.-eaten, read
V₄(present participle) is used as gerund or progressive/continuous tenses in all number. E.g.-eating, reading
V₅(present singular) is used as simple present in singular form. E.g.-eats, reads

# AUXILIARY AND NUMBER:

Singular Plural

Present is/has/does are/have/do

Past was/had/did were/had/did

Future be/been/do/have be/been/do/have

# TENSES & ASPECTS

Simple present is used with habitual fact, profession, universal truth and scientific experiments.
Always, never, usually, generally, normally, as a rule, everyday, sometimes, from, time to time, now and again always takes simple present.
Present perfect tense is always used with since, for, already, yet, just.
Intention, programme, and agreement takes present continuous.
Future tense is used with next, coming, the following, I think.
Two sentences having simple in one and perfect tense in other; simple tense is always used with following activity and perfect tense with the preceding activities.

4.4. TENSE

	Present	Past	Future
Simple(no primary auxiliaries)	V₁/V₅	V₂	Shall/will + V₁
Continuous( be + ing)	Is/am/are + V₄	Was/were + V₄	Shall/will + be +V₄
Perfect (has/have/had + V₃)	Has/have + V₃	Had + V₃	Shall/will + have + V₃
Perfect continuous [has/have/had +V₃(been)+ing]	Has/have + been + V₄	Had + been + V₄	Shall/will + have +been +V₄

Note:

· do/does/did in any form (affirmative or negative) takes V₁with it

· has/have/had in any form (affirmative or negative) is always immediately followed by V₃ (i.e. has/have/had + V₃)

· ‘You’ is always used with plural verb

· ‘am’ auxiliary is used only in present tense and only with the subject ‘I’.

4.5. Mood:

Mood is mode or manner in which the action denoted by the verb is represented. There are
there are three different types of moods in English. They are

i.                     Indicative mood – used to
a.   make a statement of fact. E.g. he writes legibly
b.   ask a question. E.g. are you well ?

ii.                   Imperative mood – which is used to express
a.   A command. E.g. come here.
b.   an exhortation. E.g. take care of your health
c.   an entreaty or prayer. E.g. have mercy upon us.

iii.                  Subjunctive mood – which expresses
a.   a wish or hope. E.g. heaven help us!
b.   desire, intention, resolution, etc. E.g. as it is suggested that.

The Basics of Grammar(Parts of speech)

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1. Parts of Speech

A. Noun

B. Pronoun

C. Adjective

D. Verb

E. Adverb

F. Preposition

G. Conjunction

H. Interjection

A) Noun:
A noun Is the name of anything in particular or in general. Different kinds of nouns with e.g. are as
follows –

I. Proper noun – Ganesh, New York, Egypt, Titanic

II. Common Noun – police, cat, pen, house

III. Abstract Noun – kindness, truth, sleep, death

IV. Collective Noun – crowd, army jury, fleet

V. Material Noun – gold, oil, water, milk

B) Pronoun:
A pronoun is a word used instead of a noun or a noun phrase. Different kinds of pronoun with
examples are as follows –

I. Personal pronoun – I, me, he she it they

II. Reflexing or emphasizing pronoun – myself, yourself, herself, itself

III. Relative pronoun – who, which, that, as

IV. Demonstrative pronoun – this, that, so, such, the former, the latter

V. Interrogative pronoun – who, which, what

VI. Indefinite pronoun – some, any one, they all, whole, something

VII. Distributive pronoun – each, either, every, neither

VIII. Reciprocal pronoun – each other, one another

C) Adjective:
An adjective is a word that describes a noun or pronoun. Different kinds of adjectives with examples
are as follows –

I. Descriptive adjective or adjective of quality – large, honest, foolish, English (language), French (wine), Turkish (Tobacco)

II. Adjectives of quantity – some, much, little, enough, all, any, sufficient

III. Adjective of number – thirteen, few, no, many, first, several, all

IV. Demonstrative adjective – this, that, these, those, such

V. Interrogative adjective – what, which, whose

VI. Possessive adjective – my, your, his, her, their

D) Verb:
       A verb says what a person or thing does, and can describe. E.g.
       an action – run, hit,                                  a state – be, have, seem, appear,
       an event – rain, happen,                       a change – become, grow

E) Adverb:
An adverb is a word which modifies the meaning of a verb, an adjective or another adverb. Following
are the kinds of adverbs with examples

Adverbs of time (when) – now, before, late(ly), daily, already, yesterday
Adverbs of frequency (how often) – twice, often, again, frequently, seldom, always
Adverbs of place (where) – here, there, up, in, within, away, out, backward
Adverbs of manner (how/in what manner) – well, hard, thus, clearly, ………..ly,
Adverbs of degree/quantity (what degree/extent) – too, almost, fully, very, enough, rather, partly
Adverbs of affirmation or negation – surely, certainly, yes, no, not
Adverbs of reason – hence, therefore, why(for what reason)

F) Preposition:
A preposition is a word that shows position and direction of a noun or pronoun. Simple prepositions
are as follows -

A	At	By	Off	Throughout
About	Before	Despite	Over	Under
Above	Behind	Down	Round	Until
After	Beneath	For	Since	Up
Against	Beside	From	Past	Upon
Along	Besides	In(to)	Than	Unto
Amid(st)	Between	Inside	Till	With
Around	Beyond	On(to)	Toward(s)	within
Among(st)	But	Of	Through	without

G) Conjunction:
A conjunction is a word which joins words or sentences. E.g. – and, but, for, or, nor, either……or,
neither…….nor, otherwise.

Conjunction of time – come when you like.
Conjunction of cause – Tell me why you are late.
Conjunction of manner – Tell me how you did it.
Conjunction of place – We found him where we had left him.

H) Interjection:
An Interjection is a word which shows exclamation (feelings and emotions). E.g. – Hurrah!, Oh!, Ah!,
Alas!, Ho!, Hello!, Bravo!, Welcome!

education and career

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This blog is intended to connect all students and help them with their queries regarding career planning, career guidance, course problems, how to make use of net and everything which is related to education. Here you can ask a question or if you know the answer of question of others, you can help them with that. You can ask for any information within the domain of education. You can even ask our help to search relevant sites for your requirement or help others for the same...

	Page No.
Introduction	1
About Volkswagen	2
Marketing Strategy in India	3
Promotion	5
The Road Ahead	9
Exhibits	11

EduNexus...

Unit-1: Business and its forms

Definitions

Features of Business

Inputs

Processes

Outputs

Forms of business organisation

Unit-1: Business and its forms

Definitions

Features of Business

Inputs

Processes

Outputs

Forms of business organisation

obesity and disease

What Is Obesity?

What is Body Mass Index (BMI)?

Why do people become obese?

Treatments for obesity (source: The Mayo Clinic)

Dietary changes

Physical activity

Prescription medications for losing weight

Weight loss surgery (bariatric surgery)

Health risks associated with obesity

Everything about obesity

Obesity

obesity in teens

Facts on Obesity

Facts of Obesity

Unit - 1

Management as a Process

Management as an Activity

Management as a Discipline

Management as a Group

Management as a Science

Management as an Art

Management as both Science and Art

Management as a Profession

Features of Management

Levels of Management

1. Top level / Administrative level

2. Middle level / Executory

3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:

1. Top Level of Management

2. Middle Level of Management

3. Lower Level of Management

Business Studies II, unit - 1

Business case studies

1.Employee Motivation and Retention Strategies at Microsoft Corporation

Issues:

Key Words:

2.Success at What Cost? - A Case Study in Managerial Ethics & Compliance

Abstract:

Issues:

Keywords:

Abstract:

Issues:

Keywords:

4.Parquesoft - A Unique Social Entrepreneurship Initiative

Abstract:

Issues:

Keywords:

Introduction

The Economic Consequences of Population Aging

Issues:

Keywords:

Introduction

Introduction

The Nordic Economic Model

Issues:

Contents:

Keywords:

Volkswagen's Marketing Strategy in India

Abstract:

Issues:

Contents:

Keywords:

Introduction Contd...