UNIT – 5
ORGANIZATION OF TRADES
When the goods and services are purchased or sold within the country it is referred as Internal Trade e.g. Purchasing goods from the door salesmen, local shop, exhibition, regional markets, departmental store or a mall are the examples of internal trade.
When the buyers and sellers both are from the same country, it is known as internal trade. Trade between two states or cities of same country is also considered as internal trade.
As there is gap between production and consumption, there is a need to have proper channel of distribution. The channel of distribution is very important in the internal trade. Usually, producers are situated at one place whereas the consumers are scattered over a wide area. There is a big gap between producer and consumer. This gap can be shortened by channel of distribution. Channel of distribution helps to make products available at the right time, at the right place and in right quantity through different intermediaries.
When goods are purchased in large quantities from the manufacturer or producer for the purpose of resale to retailers, it is known as wholesale trade. The person who is engaged in wholesale trade is known as a wholesaler. Wholesaler buy goods from manufacturers and sell it to retailers so wholesaler is buyer as well as seller.
The wholesaler may perform different functions in the process of distribution of goods and services. It enables the producers to reach the consumers.
Definition
1.) According to Philip Kotler, “wholesaling includes all activities involved in selling goods or services to those who buy for resale or for business use”.
2.) According to Evelyn Thomas , “A true wholesaler is himself neither a manufacturer nor a retailer but act as a link between the two”.
Features of wholesaler :
1.) A wholesaler purchases goods from the producer in large quantities.
2.) Wholesaler has to take risk in the process of distribution.
3.) A wholesaler deals with one or few types of goods.
4.) A large amount of capital is required in this business.
5.) A wholesaler maintains price stability by balancing supply and demand factors.
6.) The manufacturers can get direct information about market through wholesalers.
7.) A wholesaler sells the goods to the retailers as per their requirements.
8.) A wholesaler performs the marketing functions like assembling, warehousing, transporting, grading, packing, advertising and financing.
When goods are sold relatively in small quantity to the ultimate consumer by wholesaler or distributor or dealer is known as Retail Trade. The person who is engaged in retail trade is known as retailer. In market there is an existence of some sellers who are doing business at local level or within limited area. Such sellers are providing goods directly to ultimate consumers at reasonable prices.
Definition:
“Retail is sale of goods to the public in relatively small quantities for use or consumption rather than for resale”.
Features of Retailers:
Retailer is the link between the wholesaler and consumers who operates in local markets. He deals in wide variety of goods by investing limited capital. He establishes good relations with consumers. He undertakes less risk than wholesaler. He tries to satisfy demand of different consumers but does not hold large quantity of goods at a time.
1.) Retailer is the link between the wholesaler and consumers.
2.) He operates in local markets.
3.) Retailer deal in wide variety of goods in small quantity.
4.) Investment requirement is limited.
5.) Less risk and low amount of profit as compared to wholesaler.
A departmental store is a large scale retail shop having different departmental (sections) under one roof. Each sections deals in a particular type of goods, all the departmental are organized and managed by one management. It sells a large variety of goods .i.e. foods, toys, dresses etc. e.g. Shoppers stop
“A big store engaged in the retail trade of variety of articles under the same roof”.
Features of Departmental stores
1.) Shopping convenience : Departmental stores provide a wider range of goods and services under one roof hence provide maximum shopping convenience. Customers can fulfill their wants of goods at different price levels.
2.) Centralized management : In departmental stores all the departments are independent but they are centrally owned, managed and controlled e.g. Advertising, accounting, recruitment of staff, etc. All activities of departmental stores are managed at central level.
3.) Wide variety of goods: Departmental stores provide a wide variety of goods of different brands, designs and colours.
4.) Specialization: Each departmental section deals in a separate line of product or goods with specialized services e.g. Electronics section, kitchen ware section etc.
5.) Central location: A departmental store prefers central place of the city. So the location becomes easy for customers to access.
6.) Huge capital : Departmental store requires large capital investment. This capital is required for spacious place, storing of variety goods, salary to staff, advertisement, electricity etc.
7.) No credit facility: Departmental stores work on cash basis or they accept credit cards but do not offer credit facility.
Chain stores are retail store owned by a single organization. Chain store is a network of a number of branches situated at different localities in the city or in different parts of the country\. They are owned, managed and controlled by its head office. The appearance is same in internal and external display e.g. The furniture, the name boards, the staffs uniform are same in colour and design.
Definition:
“Chain stores system consist of a number of retail store, which sell similar products are centrally owned and operated under one management”.
In India the retail shops like Bata Stores, Raymond Stores, Vijay Sales, Croma etc. are examples of chain stores.
Features of Chain Stores:
1.) Low and Uniform Price: Due to centralized buying from head office, prices are less. Low operational expenses and low cost of the cost of the goods leads to low price of commodities. There is uniformity in price in all chain stores.
2.) Uniformity: Every chain stores has the same style of external and internal layouts with same interiors, colours, display, etc. hence the customers can easily identify the chain store.
3.) Limited Range of Goods: Chain stores sell a limited range of goods produced by a particular manufacturer. Manufacturer open the chain stores by themselves or through distributors. E.g. Bata Shop sells footwear manufactured by Bata Shoes Company Ltd only.
4.) Large Investment: Chain store requires large financial investment. A large number of branches have to be managed in terms of salary of staff, advertisement, decoration, etc. So there is a need of large investment.
5.) Distribution through Branches: Chain store purchase in large scale from the producer and then distributes them through its branches.
6.) Cash Sales: Chain store sell their goods on cash basis only. Cash sales avoides the problem of bad-debits.
7.) Quality of Goods: The chain stores sell standardized and branded goods. The quality of goods is assured to customers in chain stores.
Meaning:
Import trade refers to the purchase of goods and services from foreign country. The procedure for import trade differs from country to country depending upon the import policy, statutory requirements and customs policies of different countries. In almost all countries of the world import trade is controlled by the government. The objectives of these controls are proper use of foreign exchange restrictions, protection of indigenous industries etc.
Import Procedure
A) Preliminary Stage
1) Registration
2) Negotiation
B) Pre-Import Stage
1) Quota Certificate
2) Foreign Exchange Clearance
3) Order Placement
4) Letter of Credit
5) C & F Agent
6) Shipment Advice
C) Import Stage
1) Receipt of Document
2) Bill of Entry
3) Delivery Order
4) Custom Clearance
D) Post-Import Stage
1) Port Trust Due
2) Custom Duty
3) Insurance Premium
4) Freight Payment
5) Follow-up
Export Procedure
A) Preliminary Stage
1) Registration
2) Appointment of Agent
B) Pre-shipment Stage
1) Receipt of order
2) Letter of credit
3) Pre-shipment Finance
4) Production
5) Packaging
6) ECGC cover
(Export Credit and Guarantee Corporation)
7) GST formalities (Goods and services Tax)
8) Marine Insurance
9) C & F agents (clearing and forwarding)
C) Shipment Stage
1) Processing
2) Examination of goods
3) Loading of goods
D) Post-shipment Stage
1) Shipment Advice
2) Presentation of document
3) Realization of incentives
4) Follow up
Introduction:
Risk of all kinds prevails in every walk of life, not only that, risks also endanger life itself. Thus one can say that all financial deals as well as possession of money and property, goods etc. are caught with an element of risk. The loss arising from any of these risks is heavy and at times can give a setback to business.
Therefore businessmen and owners of property concluded that if they get together and contributed a relatively small amount to a common pool, the total amount so contributed should be sufficient to compensate any loss. Thus it is a transfer of risk to another i.e. insurer.
Meaning:
Life is a full of risks and uncertainties. In business these risks are numerous and-diverse. For example there are risks of death, accident, fire, burglary, theft, sinking of a ship on voyage or damage to ship due to perils of sea. Risks cannot be avoided. A provision can be made to make good the monetary loss arising from such risks. Insurance is an arrangement by which risk of loss due to natural calamities or contingencies can be covered and the party suffering the loss can be indemnified. Insurance is a co-operative effort by which the total risk, calculated in advance is shouldered by all who are subject to risks. These persons contribute a small sum each to common pool from which the actual loss of the unfortunate ones who had to face these risks is made good. Insurance companies take over this work of spreading risks over all those who are subject to such risks. Insurance thus aims at reducing the intensity which human life and property are exposed, It does not eliminate risks nor does it avert fosses. It only provides monetary compensation against such losses.
Basic terms:
1) Insured: The person to whom a compensation is to be paid, in case of loss is called the insured.
2) Insurer: The Company that agrees to pay compensation on the happening of a specific event against the payment of regular premium is called the insurer.
3) Premium: Fixed amount to be paid to the insurer by insured.
4) Policy: The statement of contract between the insured and the insurer. It contains the terms and conditions of the insurance contract.
5) Subject matter of Insurance: It refers to the subject against which the policy is take
a) In life insurance, the life of the assured is a subject matter.
b) In fire insurance, the goods and assets or property of the insured is the subject matter.
c) In marine insurance, the cargo or ship is the subject matter.
6) Claim: It is the demand made by the insured on the insurer to compensate for loss on the happening of the event.
7) Proposal: It is a written request by the propose (insured) to the insurance company to issue an insurance policy.
Principles of Insurance:
Insurance is a contract between two parties. Hence, all the elements of a valid contract should be present in every insurance contract. Besides these elements, there are certain other principles also to be followed essentially at the time of entering into an insurance contract, which are as follows:
a) Utmost Good Faith: Insurance is based on the principle of utmost good faith. Utmost good faith means disclosure of complete material facts of the subject matter. Both the parties of insurance contract must disclose everything about the subject matter and about themselves. They should not hide anything which is important for the contract or which is very much related to the subject matter. In other words there should not be any mispresentation, concealment of fact or fraud. If any party does so, he will have to suffer for it. If there are certain weak points or defects in the subject matter, it must be brought to the knowledge of other party. This avoids legal complications at the later stage.
b) Insurable Interest: This is an important principle of insurance. Insurable interest means having interest in the subject matter The person who takes the insurance of his property (insured) must have some interest in that property (subject matter). This interest must not be only sentimental but pecuniary one. By the existence of such subject matter, the insured must gain and by damage or loss of it he must suffer some financial loss e.g. If the husband insures the life of his wife, he has insurable interest in the life of his wife. By her existence, he will be benefited. This benefit is not sentimental alone but pecuniary also. If a person ensures municipal building, he has no pecuniary gain in that building. Therefore, his interest in that building cannot be an insurable Interest. If it is not done before the Insurable interest, it must be proved at the time of loss paid. If the insured cannot prove insurable interest at the time of loss paid, he may deprive of the claim of loss. In fire insurance, the insurable interest must exist at the time of loss to the property insured (subject matter).
A contract of insurance without insurable interest is nothing but the wagering contract, which is void (not enforceable by law). Everyone has a insurable interest in his life. Creditor has an insurable interest in his debtor to the extent of the debt.
c) Indemnity: Indemnity is yet another important principle of the insurance contract. This principle is based on the principle that the insured will be placed in the same position as he was before the occurrence of loss. However, it should be noted that no profit is allowed to be made out of insurance. Insurance is to cover the loss and not to make profit. In other words, the amount of compensation shall not exceed in any case, the actual loss sustained by insured.
Suppose, Mr. A, has insured his office against fire for Rs.50, 000, whereas the cost of office is Rs. 1, 00,000. Further suppose, unfortunately the office catches fire and loss stained is Rs. 40,000. Mr. A will be compensated only Rs. 40,000 which is actual loss sustained.
This principle is applicable to fire insurance, marine and accident insurance contracts. It does not apply to Life Insurance contracts. Life insurance is an exception to this principle for the simple reason that the value of human life cannot be measured in terms of money. It is difficult to calculate the real loss, due to death of the person.
d) Subrogation: This principle means that once the full compensation is paid to the assured, the insurer (company) will possess all the rights upon the subject matter. In other words when the compensation is paid for the total loss, all rights of insured in respect of subject matter of insurance are transferred to the insurer. The assured will not be able to keep the damaged property with him for the simple reasons that he cannot release more than the actual loss sustained. This principle prevents the insurer from making profits out of loss. This principle does not allow the insured to get an amount of compensation more than the actual sustained.
e) Contribution: This refers to the double insurance. When two or more insurance companies take Insurance of the same subject matter each company will contribute that proportion of loss which the policy issued by ii bears to the total amount for which insurance has been effected with all the companies. The governing principle behind this is that the insured deserves to be indemnified only against the actual amount of loss. This loss is to be shared by all insurance companies in proportion, as per the terms of contract to this effect which is shown in the insurance policy.
Suppose, a house is insured with company X for Rs. 10,000 with company Y for Rs. 10,000 and with company Z for Rs. 5,000 and if losses by fire comes to Rs, 25,000, this loss will| be contributed by them in the proportion of 2/5, 2/5 and 1/5 respectively.
f) Mitigation of Loss: Mitigation means to minimize. When the mishap takes place, it is the duty of the insured to lake all necessary steps which will help to minimize the loss. This must be exercised as a owner of the property. He should not become careless and inactive simply because he is insured and going to be compensated. He must take all actions to save it as a prudent uninsured man. All reasonable effort must be taken to minimise the loss and save the property.
g) Causa Proxima: Causa proxima means direct Causa or nearest cause of loss to be taken into account for claims. Indirect or last cause is not to be taken into account.
Suppose, a ship carrying cargo of biscuits, gets damaged on the high seas, and anchored at a port of call or repairs. This requires part of cargo to be unloaded. In this process biscuits get damaged because of mishandling of cargo which is not covered by the terms of insurance policy. Therefore, claim of damage of cargo cannot be established because it is only remote cause of damage suffered by cargo. What is required under this principle is that the cause of damage must be incorporated in the policy itself.
LIFE INSURANCE:
Meaning:
Life Insurance is referred to as "life assurance", It is a contract between the insurance company (assurer) and the assured. This can fie defined as "A contract where an insurance company undertakes in consideration of regular payment of premium to pay a certain sum of money to the assured on maturity of policy or death, whichever is earlier." Obviously, if person dies, payment will be made to his representatives. If payments become due in his life time, he himself gets it.
The life insurance is based upon two principles (I) Utmost good faith and (II) Insurable interest. Life Insurance does not eliminate the risk of loss of life due to different useful information. Data is a valuable asset for an organization.
- Data can be used by the managers to perform effective and successful operations of management. It provides a view of past activities related to the rise and fall of an organization. It also enables the user to make better decision for future. Data is very useful for generating reports, graphs and statistics.
Example
Students fill an admission form when they get admission in college. The form consists of raw facts about the students. These raw facts are student’s name, father name, address etc. The purpose of collecting this data is to maintain the records of the students during their study period in the college.
Information
- The manipulated and processed form of data is called information. It is more meaningful than data. It is used for making decisions. Data is used s input for processing and information is used as output of this processing.
Example:
Data collected from census is used to generate different type of information. The government can use it to determine the literacy rate in the country. Government can use the information in important decision to improve literacy rate.
Characteristics of a Computer
- Now-a-days computer is playing a main role in everyday life it has become the need of people just like television, telephone or other electronic devices at home. It solves the human problems very quickly as well as accurately. The important characteristics of a computer are described below:
- The characteristics of a computer are:
- Speed: The computer is a very high speed electronic device. The operations on the data inside the computer are performed through electronic circuits according to the given instructions. The data and instructions flow along these circuits with high speed that is close to the speed of light. Computer can perform million of billion of operations on the data in one second.
- Spontaneous (Automatic): The computers are automatic. It may execute the process without any intervention of user once they are assigned to a work. Once the data or instruction are fetched from the secondary devices such as optical disks, hard disks etc. Immediately they get stored onto RAM (primary memory) and then sequentially they get executed.
- Storage: A computer has internal storage (memory) as well as external or secondary storage. In secondary storage, a large amount of data and programs (set of instructions) can be stored for future use. The stored data and programs are available any time for processing. Similarly information downloaded from the internet can be saved on the storage media.
- No Feelings: Computer is an electronic machine. It has no feelings. It detects objects on the objects on the basis of instructions given to it. Based on our feelings, taste, knowledge and experience: we can make certain decisions and judgments in our daily life. On theother hand, computer cn not make such judgments on their own. Their judgments are totally based on instructions given to them.
- Consistency : People often have difficulty to repeat their instructions again and again. For example, a lecturer feels difficulty to repeat a same lecture in aclass room again and again. Computer can repeat actions consistenly (again and again) without loosing its concentration
- Communications : Today computer is mostly used to exchange messages or data through computer networks all over the world. For example the information can be received or send through the internet with the help of computer. It is most important feature of the modern information technology.
- Diligence : A computer can continually work for hours without creating any error. It does not get tired while working after hours of work it performs the operations with the same accuracy as well as speed as the first one.
Generations of Computers
- The term generation indicates the type of technology used in he coputer construction. As new technology was emerging, it was being used in the making of computer. The new technology improved the speed, accuracy and storage capacity of the computers. Different technologies have been used for computers in different times.
Therefore, computers can be divided into five generations depending upon the technologies used. These are:
- First Generation (1942-1955)
- Second Generation(1955-1964)
- Third Generation (1964-1975)
- Fourth Generation(Since 1975)
- Fifth Generation (Since1980)
First Generation Computers(1942 – 1955)
- The vacuum tube technology was used in first-generation computers. Marks-1m, ENIAC, EDSAC, EDVAC, UNIVAC-1 etc. machine belong to the first generation of computers. The machine language only was used in first-generation computers.
Second Generation Computers (1995-1964)
- This generation using the transistor were cheaper, consumed less power, more compact in size, more reliable and faster than the first generation machines made of vaccum tubes.
Third Generation Computers (1964-1975)
- The third generation of computer is marked by the use of Integrated Circuits (IC’s) in place of transistors. A single I.C has many transistors, resistors and capacitors. This development made computers smaller in size, reliable and efficient.
Fourth Generation Computers – 1975 onwards
- The fourth generation of computers is marked by the use of Very Large Scale Integrated (VLSI) circuits. VLSI circuits having about 5000 transistors and other circuits elements and their associated circuits on a single chip made it possible to have microcomputers of fourth generation. Fourth Generation computers became more powerful, compact, reliable, and affordable. As a result, it gave rise to personal computer (PC) revolution.
Fifth Generation Computers (In process)
The main drawback of first to fourth generation computers is that the computers have not their own thinking power. These are totally depending upon the instructions given by the users.
Fifth generation computers are supposed to be the ideal computers, but do not exist. The scientists are working to design such computers that will have the following features.
- Having their own thinking power
- Making decisions themselves
- Having capabilities of reasoning
The main features of Fifth Generation are:
- ULSIC (Ultra Large Scale Integration Circuits) technology
- Development of true artificial intelligence
- Advancement in Parallel Processing
Advantages of Computer
- Easy processing of complex tasks.
- It saves time by quick manipulation of data as compared to when done manually.
- The errors in data processing are minimized when a computer is used.
- It has helped in making communication easier by using internet.
- It stops, retrieves, and processes a large amount of data.
- It helps in multitasking of various jobs.
Application of Computer
Computer is playing very important role in every field of life. Computers are everywhere such as at home, at school. In daily life a large number of activities are dependent on computers. The main fields where computer is playing very important role are in field of:
- Education
- Entertainment
- Science
- Publishing
- Agriculture
- Government
- Home
Multiple Shop System
The expression ‘multiple shops’ denote that similar shops are established in multiples by the sane organisation. In U.S.A., multiple shops are referred to as chain stores.
The multiple shop system is an extension of the simple retail business. The concept of multiple shop system originated in Europe. In order to draw a large number of customers, certain companies open a large number of shops at different places in different towns and cities.
According to S.E. Thomas, multiple shop system is one in which there is a large number of retail shops owned by the same proprietor which are scattered over the various places of particular city of a country and are engaged in the same line of activity.
In India, Bata Shoe Company and few other concerns have opened multiple shops.
Characteristics of Multiple Shop System:
The characteristics of multiple shop system are:
Each shop deals in the same line of products.
The products are meant for everyday use.
The declaration, setting and get-up of all shops are same.
The head office of the organisation controls and manages all shops through a uniform policy.
The policy is to have centralised buying with decentralised selling.
Organisation of Multiple Shop System:
Multiple shops are, by nature and activities, large- scale retail units. These are owned and operated by companies in most cases, e.g. Bata Shoe Co., Delhi Cloth Mills, etc. So, the board of directors of a company is the highest authority which controls the affairs of the multiple shops.
Advantages of Multiple Shop System:
The multiple shop system has the following advantages:
Rapidity in Turnover:
By being located in different places the system can know the customers closely, feel their habits, and stock such varieties which sell fast. The knowledge of the current market trends increases the rapidity in the sales turnover.
Stock Adjustments or Transfers:
The inter-unit transfer of products in the same area or locality, in case .of any shortage of a particular variety in a shop, affords flexibility in the operations and minimises the chance of dead stocks.
Common Advertising:
Common types of advertisements for all shops reduce the publicity expenditure to a great extent, which afford competitive advantage.
Elimination of Bad Debts:
The multiple shops effect sales on cash basis and thereby bad debts do not occur.
Operational Economy:
The factors like rapid turnover, bad debts elimination, common advertising, simplified accounting system with no credit sales, etc. attribute to the lower operational costs for the multiple shop system.
Low Prices:
Because of economical operations, the system is able to offer goods at cheaper prices which in turn increases the sales turnover.
Disadvantages of Multiple Shop System:
The multiple shop system, in spite of the above-stated advantages, suffers from the following short-comings or disadvantages:
Absence of Varieties:
An ordinary retail store or a departmental store can offer product varieties far the choice of the customers. This is totally absent as the multiple shops deal in a limited or standardised line of products. Moreover, the customers cannot compare the goods with those of competitors on the spot.
Rise in Operational Costs:
With the increase in the number of multiple shops, administrative and supervision problems crop up and their cost increase.
Poor Public Image:
The multiple shops do not provide personal services to the consumers like credit facilities, home delivery service, etc. The present day consumers prefer to have such services in addition to quality and low price. These have adverse effects on the public image.
Loss of Initiative on the Part of Shop Managers:
The orders, instructions, and policy decisions of the company with regard to multiple shops are rigid and the shop managers have no discretionary authorities. As a result, such managers loose interest and imitativeness in the sale of the goods in stock.
Effects on Middlemen in Multiple Shop System:
The multiple shops organised and operated by the companies are a type of manufacturers’ retail stores. They are virtually integrated with the companies as regards the marketing and selling functions. These companies do not engage either the wholesalers or the retailers as they themselves perform all these activities while dealing with the customers.
Kinds Of Computer
A computer is a machine that can be programmed to manipulate symbols. Its principal characteristics are:
- It responds to a specific set of instructions in a well-defined manner.
- It can execute a prerecorded list of instructions (a program).
- It can quickly store and retrieve large amounts of data.
Therefore computers can perform complex and repetitive procedures quickly, precisely and reliably. Modern computers are electronic and digital. The actual machinery (wires, transistors, and circuits) is called hardware; the instructions and data are called software. All general-purpose computers require the following hardware components:
- Central processing unit (CPU): The heart of the computer, this is the component that actually executes instructions organized in programs ("software") which tell the computer what to do.
- Memory (fast, expensive, short-term memory): Enables a computer to store, at least temporarily, data, programs, and intermediate results.
- Mass storage device (slower, cheaper, long-term memory): Allows a computer to permanently retain large amounts of data and programs between jobs. Common mass storage devices include disk drives and tape drives.
- Input device: Usually a keyboard and mouse, the input device is the conduit through which data and instructions enter a computer.
- Output device: A display screen, printer, or other device that lets you see what the computer has accomplished.
In addition to these components, many others make it possible for the basic components to work together efficiently. For example, every computer requires a bus that transmits data from one part of the computer to another.
II, Computer sizes and power
Computers can be generally classified by size and power as follows, though there is considerable overlap:
- Personal computer: A small, single-user computer based on a microprocessor.
- Workstation: A powerful, single-user computer. A workstation is like a personal computer, but it has a more powerful microprocessor and, in general, a higher-quality monitor.
- Minicomputer: A multi-user computer capable of supporting up to hundreds of users simultaneously.
- Mainframe: A powerful multi-user computer capable of supporting many hundreds or thousands of users simultaneously.
- Supercomputer: An extremely fast computer that can perform hundreds of millions of instructions per second.
Supercomputer and Mainframe
Supercomputer is a broad term for one of the fastest computers currently available. Supercomputers are very expensive and are employed for specialized applications that require immense amounts of mathematical calculations (number crunching). For example, weather forecasting requires a supercomputer. Other uses of supercomputers scientific simulations, (animated) graphics, fluid dynamic calculations, nuclear energy research, electronic design, and analysis of geological data (e.g. In petrochemical prospecting). Perhaps the best known supercomputer manufacturer is Cray Research.
Mainframe was a term originally referring to the cabinet containing the central processor unit or "main frame" of a room-filling Stone Age batch machine. After the emergence of smaller "minicomputer" designs in the early 1970s, the traditional big iron machines were described as "mainframe computers" and eventually just as mainframes. Nowadays a Mainframe is a very large and expensive computer capable of supporting hundreds, or even thousands, of users simultaneously. The chief difference between a supercomputer and a mainframe is that a supercomputer channels all its power into executing a few programs as fast as possible, whereas a mainframe uses its power to execute many programs concurrently. In some ways, mainframes are more powerful than supercomputers because they support more simultaneous programs. But supercomputers can execute a single program faster than a mainframe. The distinction between small mainframes and minicomputers is vague, depending really on how the manufacturer wants to market its machines.
Minicomputer
It is a midsize computer. In the past decade, the distinction between large minicomputers and small mainframes has blurred, however, as has the distinction between small minicomputers and workstations. But in general, a minicomputer is a multiprocessing system capable of supporting from up to 200 users simultaneously.
Workstation
It is a type of computer used for engineering applications (CAD/CAM), desktop publishing, software development, and other types of applications that require a moderate amount of computing power and relatively high quality graphics capabilities. Workstations generally come with a large, high-resolution graphics screen, at large amount of RAM, built-in network support, and a graphical user interface. Most workstations also have a mass storage device such as a disk drive, but a special type of workstation, called a diskless workstation, comes without a disk drive. The most common operating systems for workstations are UNIX and Windows NT. Like personal computers, most workstations are single-user computers. However, workstations are typically linked together to form a local-area network, although they can also be used as stand-alone systems.
N.B.: In networking, workstation refers to any computer connected to a local-area network. It could be a workstation or a personal computer.
Personal computer:
It can be defined as a small, relatively inexpensive computer designed for an individual user. In price, personal computers range anywhere from a few hundred pounds to over five thousand pounds. All are based on the microprocessor technology that enables manufacturers to put an entire CPU on one chip. Businesses use personal computers for word processing, accounting, desktop publishing, and for running spreadsheet and database management applications. At home, the most popular use for personal computers is for playing games and recently for surfing the Internet.
Personal computers first appeared in the late 1970s. One of the first and most popular personal computers was the Apple II, introduced in 1977 by Apple Computer. During the late 1970s and early 1980s, new models and competing operating systems seemed to appear daily. Then, in 1981, IBM entered the fray with its first personal computer, known as the IBM PC. The IBM PC quickly became the personal computer of choice, and most other personal computer manufacturers fell by the wayside. P.C. Is short for personal computer or IBM PC. One of the few companies to survive IBM's onslaught was Apple Computer, which remains a major player in the personal computer marketplace. Other companies adjusted to IBM's dominance by building IBM clones, computers that were internally almost the same as the IBM PC, but that cost less. Because IBM clones used the same microprocessors as IBM PCs, they were capable of running the same software. Over the years, IBM has lost much of its influence in directing the evolution of PCs. Therefore after the release of the first PC by IBM the term PC increasingly came to mean IBM or IBM-compatible personal computers, to the exclusion of other types of personal computers, such as Macintoshes. In recent years, the term PC has become more and more difficult to pin down. In general, though, it applies to any personal computer based on an Intel microprocessor, or on an Intel-compatible microprocessor. For nearly every other component, including the operating system, there are several options, all of which fall under the rubric of PC
Today, the world of personal computers is basically divided between Apple Macintoshes and PCs. The principal characteristics of personal computers are that they are single-user systems and are based on microprocessors. However, although personal computers are designed as single-user systems, it is common to link them together to form a network. In terms of power, there is great variety. At the high end, the distinction between personal computers and workstations has faded. High-end models of the Macintosh and PC offer the same computing power and graphics capability as low-end workstations by Sun Microsystems, Hewlett-Packard, and DEC.
III, Personal Computer Types
Actual personal computers can be generally classified by size and chassis / case. The chassis or case is the metal frame that serves as the structural support for electronic components. Every computer system requires at least one chassis to house the circuit boards and wiring. The chassis also contains slots for expansion boards. If you want to insert more boards than there are slots, you will need an expansion chassis, which provides additional slots. There are two basic flavors of chassis designs–desktop models and tower models–but there are many variations on these two basic types. Then come the portable computers that are computers small enough to carry. Portable computers include notebook and subnotebook computers, hand-held computers, palmtops, and PDAs.
Tower model
The term refers to a computer in which the power supply, motherboard, and mass storage devices are stacked on top of each other in a cabinet. This is in contrast to desktop models, in which these components are housed in a more compact box. The main advantage of tower models is that there are fewer space constraints, which makes installation of additional storage devices easier.
Desktop model
A computer designed to fit comfortably on top of a desk, typically with the monitor sitting on top of the computer. Desktop model computers are broad and low, whereas tower model computers are narrow and tall. Because of their shape, desktop model computers are generally limited to three internal mass storage devices. Desktop models designed to be very small are sometimes referred to as slimline models.
Notebook computer
An extremely lightweight personal computer. Notebook computers typically weigh less than 6 pounds and are small enough to fit easily in a briefcase. Aside from size, the principal difference between a notebook computer and a personal computer is the display screen. Notebook computers use a variety of techniques, known as flat-panel technologies, to produce a lightweight and non-bulky display screen. The quality of notebook display screens varies considerably. In terms of computing power, modern notebook computers are nearly equivalent to personal computers. They have the same CPUs, memory capacity, and disk drives. However, all this power in a small package is expensive. Notebook computers cost about twice as much as equivalent regular-sized computers. Notebook computers come with battery packs that enable you to run them without plugging them in. However, the batteries need to be recharged every few hours.
Laptop computer
A small, portable computer -- small enough that it can sit on your lap. Nowadays, laptop computers are more frequently called notebook computers.
Subnotebook computer
A portable computer that is slightly lighter and smaller than a full-sized notebook computer. Typically, subnotebook computers have a smaller keyboard and screen, but are otherwise equivalent to notebook computers.
Hand-held computer
A portable computer that is small enough to be held in one’s hand. Although extremely convenient to carry, handheld computers have not replaced notebook computers because of their small keyboards and screens. The most popular hand-held computers are those that are specifically designed to provide PIM (personal information manager) functions, such as a calendar and address book. Some manufacturers are trying to solve the small keyboard problem by replacing the keyboard with an electronic pen. However, these pen-based devices rely on handwriting recognition technologies, which are still in their infancy. Hand-held computers are also called PDAs, palmtops and pocket computers.
Palmtop
A small computer that literally fits in your palm. Compared to full-size computers, palmtops are severely limited, but they are practical for certain functions such as phone books and calendars. Palmtops that use a pen rather than a keyboard for input are often called hand-held computers or PDAs. Because of their small size, most palmtop computers do not include disk drives. However, many contain PCMCIA slots in which you can insert disk drives, modems, memory, and other devices. Palmtops are also called PDAs, hand-held computers and pocket computers.
PDA
Short for personal digital assistant, a handheld device that combines computing, telephone/fax, and networking features. A typical PDA can function as a cellular phone, fax sender, and personal organizer. Unlike portable computers, most PDAs are pen-based, using a stylus rather than a keyboard for input. This means that they also incorporate handwriting recognition features. Some PDAs can also react to voice input by using voice recognition technologies. The field of PDA was pioneered by Apple Computer, which introduced the Newton MessagePad in 1993. Shortly thereafter, several other manufacturers offered similar products. To date, PDAs have had only modest success in the marketplace, due to their high price tags and limited applications. However, many experts believe that PDAs will eventually become common gadgets.
PDAs are also called palmtops, hand-held computers and pocket computers.
