Business and commerce have become such important aspects of our lives that they directly or indirectly play a large role in all of our daily activities. Every small or big transaction we undertake involves some form of commercial activity. A study of these diverse facets of business has been explained in this chapter on domains and scope of business and commercial knowledge.
Domains of Business
Domain, in very simple words, means a specific field of knowledge. It describes activities of a particular industry, group or subject. Thus, domains of the business study describe different facets of business activities that are unique and important to understand business.
For example, in order to understand a particular business, we need to know things like its scale, ownership, market, stakeholders, activities, etc. It is only after knowing all these things that we can truly understand a business. These are called domains of business.
The Scope of Business Domains
The scope of business domains is so vast that we deal with its aspects every day without even realizing it. We can study and understand any business based on so many parameters. Consider some of them given in the list below.
- Activities: Whether the business engages in manufacturing, trade or provision of services?
- Ownership: Who owns the business? A sole proprietor, partnership firm or company?
- Geographical limits: Is it functional on a local, national or international level?
- Mode: Does it operate online or offers its goods and services from a store?
These kinds of questions give us an idea as to what are the various domains of business that influence its functioning and nature. There are several other domains as well.
Business Commercial Knowledge
An understanding of various domains of business and their application in commercial activities is the main purpose of business commercial knowledge (BCK). It helps us maintain a steady grasp over common terms and concepts peculiar to businesses that are important to know.
Each business has peculiar components that its stakeholders must always be aware of. A good understanding of these components and domains ensures profitable results for the business, which is possible only with business commercial knowledge.
Features of Business Domains and Commercial Knowledge
Domains of business and components of commercial knowledge comprise of the following three important features.
Business commercial knowledge is vast in the sense that it covers an uncountable number of components. Refer again to that list shown above in the section of the scope of business domains. It shows just how many things we have to consider while understanding a business.
Business commercial knowledge is based on several diverse disciplines like law, economics, finance, accounting, marketing, psychology, sociology, etc. Further, all these disciplines of academics collectively influence businesses and commercial activities in many ways. Thus, it is impossible to understand a business without approaching these subjects.
Business commercial knowledge is always expanding and changing because the factors that influence it are never stagnant. We have to understand and adopt these new practices if we want to remain profitable in a competitive economy.
For example, technological advancements have completely revolutionized business practices. So many forms of business today run completely online using the internet.
Hence, it is crucial to stay updated with these dynamic and ever-changing advancements if we want to compete with business rivals.
Solved Example on Scope of Business
Question: Point out the domains and aspects of commercial knowledge that are involved in the computer you are using to read this article.
Answer: Such computers are usually manufactured by large multi-national companies that make these kinds of electronic devices. The software involved in them may be made by other foreign or domestic companies.
After their import into India, a wholesaler would have bought these computers, indicating the mode of transportation.
A retail shop or an online website would finally sell these computers to us, i.e. consumers. The following components of the business domain exist in this example of computers:
- Firstly, it involves diverse activities like manufacturing and final sale
- Manufacture, import, wholesale, trade and final sale to consumers show the large scale of this business
- Sale of computers can happen by various modes, like the physical sale in shops or delivery after online purchase
- A comparative study of all such manufacturers, wholesalers, retailers, and consumers will provide valuable information on all stakeholders of this entire industry
Hence, this concludes our discussion on domains and scope of business and commercial knowledge.