ORGANISATION – You have learnt what is a business activity and various types of business activities like industry, trade, transportation, banking; etc. Whatever business activity you may take tip, you have to bring together various resources like capital, machinery; raw-materials, labour, technicians, etc. Mere presence or availability of these resources is not enough. Such resources are.to be put in action in a systematic way to achieve its objective.
For example, take the case of textile production. First you get some la”d and construct buildings, buy machinery and instal them in the buildings, employ labour and tezhnicians to work on the machinery, buy raw-materials (cotton, dyes, etc.), and process the raw-materials in the factory and produce the cloth. Once cloth is produced it is to be sold to consumers through wholesale and retail dealers. Thus, to produce cloth you have to assemble resources such as factory, cotton, dyes; labour, wholesalers, retailers, etc. But simple presence of these resources may not achieve the purpose. We have to put these resources together in action very systematically and coordinate their activities. Then only it is possible to produce the cloth, distribute it to consumers, and get profits. This is true with any business activity.