Thursday, March 25, 2010

D. REQUISTES OF BUSINESS SUCCESS

In the modern complicated world, it is not easy to operate business successfully. Prof. Diksee has put special emphasis on three qualities for the success of a business: (a) skill and energy, (b) sufficient capital, and (c) business relation and goodwill.

On the basis of study of successful business and businessmen a list of some factors for the success of a business. There are many uncontrolled factors affecting the prospects of any business. Hence to run business successfully, these factors must be considered. These factors are known as requisites of business success. They are discussed below.

(1) Personality of Businessman or Manager : An ideal businessman must develop himself physically, mentally as well as morally. Physical fitness or the maintenance of health is the primary necessity. Mental efficiency is the next essential requirement. The way in which one uses brains will naturally determine how far one can go in the business world. Moral efficiency is also essential for business career. Hence physically, mentally, and morally soundman is bound to succeed in business world.

(2) Well –defined Objectives : It is necessary for every business to have clear and definite objectives to be achieved during the forthcoming periods. When objectives are clearly set, then only objectives it will be difficult to conduct its operation effectively. The main and subsidiary objectives as well as the short-term and long-term objectives must be determined beforehand.

(3) Proper Planning and Policy : After the determination of the objectives proper planning should be made with a view to achieve those objectives. Planning is decided in advance what is to be done. It is the conscious process of selecting and developing the best course of action to accomplish an objective. Planning helps in removing the possible losses and minimizes risks and uncertainty. The guidelines for implementing plan are known as policy. Therefore, in business making programs for what, where and how is to be done and implementing is known as planning and policy.

(4) Adequate Finance : Finance is the life-blood of modern business. Without adequate finance, the business cannot achieve its objectives. Funds are needed for short-term and long-term purposes. Working as well as fixed capital requirements must be met. Adequate funds should be available for expansion purposes also. Hence, for success in business the businessman must correctly estimate the financial requirements for securing the necessary finance when required.

(5) Proper Location, Layout and size : Proper location, layout and size of business is highly essential and vital to the progress of business. If an error is committed in solving this is not located at a suitable place, it may fail to attract large number of customers. Hence location should be favorable, plant layout should be proper and size of the business should be appropriate.

(6) Sound Organization : Organization is defined as the division of work among people whose efforts must be coordinated to achieve desired specific objectives. It ensures teamwork and provides best communication channels for proper decisions making. Hence sound organization is an answer to various business problems.

(7) Efficient Management : Management plays a pivotal role in a business. An efficient management may turn a failing business into a successful one. Through the process to management we can accomplish (a) the right work, (b) at the right time, (c) at the right place, (d) at the right cost, and (e) with the right method. Hence, in business efficient management is necessary for coordination and controlling all the factors of production i.e. man, money, materials, machinery, etc.

(8) Employee Morale : High degree of morale among the employees keep a business away from any kind of inefficiency and uncertainty. They should be encouraged and provided with amenities so that they could work whole-heartedly. It is the responsibility of management to device ways and means to achieve employee cooperation.

(9) Modern technology : A business must be equipped with proper machines and other necessary implements for better results. Productivity depends upon the best technology. There should be proper man-machine adjustment.

(10) Research : In the competitive business world, it is essential to use latest devices for production and marketing of goods. Market research, product research, research in the methods and techniques of production, etc, must be carried on continuously so that it may adapt itself to the changes in the business world. Innovation in every possible field is needed to attain the maximum success by a business. Hence research and development should given due place in the business.

If business wants to survive as a profit earning concern in this competitive age, no business can afford to under-estimate the value of above mentioned requirements. The above points must be kept in mind for its successful operation.

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