📚 Case Study Assignment
Topic: Difference between Business, Commerce, and Trade
Case Study: The Journey of
Desi Grains Pvt. Ltd.
Background
In 2015, three entrepreneurs in Madhya Pradesh set up Desi Grains Pvt. Ltd., a company
dealing in organic wheat products. Their goal was to provide healthy, chemical-free flour and
related products to urban consumers across India.
This case explores their journey and highlights how business, commerce, and trade operate
differently but remain connected.
Stage 1: Business (The Big Umbrella)
The company began with:
Establishing a milling unit for wheat processing.
Developing gluten-free, multi-grain flours through R&D.
Marketing strategies to target health-conscious families.
Aiming at profitability through premium pricing.
Here, Desi Grains is engaged in business, as it covers all activities — production, marketing,
finance, and distribution — to earn profit.
Stage 2: Commerce (Moving Products to Consumers)
After production, the challenge was distribution. Desi Grains relied on:
Trade: Selling flour in bulk to wholesalers and later to retailers.
Banking: Taking short-term loans for working capital.
Transport: Using trucks and logistics firms to move goods.
Warehousing: Renting storage units to manage stock.
Insurance: Protecting goods in case of accidents.
Advertising: Promoting products via Instagram campaigns.
These distribution and supportive activities together make up commerce.
Stage 3: Trade (The Narrowest Concept)
At the ground level, trade occurred in two forms:
1. Wholesale trade – Selling 5,000 kg flour in bulk to “Healthy Harvest Distributors” in
Delhi.
2. Retail trade – Supermarkets like Big Bazaar and online retailers like Amazon Pantry
sold 5 kg packets to individual consumers.
Here, trade is just the buying and selling of goods.
Key Distinction
Aspect Business Commerce Trade
Broadest: production +
Distribution of goods and Narrowest: buying &
Scope distribution + profit-making
services selling
activities
Banking, insurance,
Industry, R&D, HR, finance, Wholesale & retail
Activities warehousing, transport,
marketing sales
ads
Example in Setting up milling plant, Logistics, bank loans, Wholesalers &
Case product innovation insurance, advertising retailers selling flour
Conclusion
The case of Desi Grains Pvt. Ltd. shows that:
Business = Complete journey of producing and delivering goods/services.
Commerce = The middle link that ensures smooth distribution.
Trade = Actual exchange (buying/selling) within commerce.
All three are interdependent and essential for an economy to function.
Assignment Questions
1. From the case study, identify two activities that belong to business but not to
commerce.
2. Why can we say that commerce is broader than trade but narrower than business?
3. Match the following activities with the correct category (Business, Commerce,
Trade):
o Running an Instagram ad campaign.
o Selling 10 kg flour to a family in Mumbai.
o Setting up a wheat flour processing plant.
o Taking a bank loan for working capital.
o A wholesaler buying goods in bulk.
4. In your own words, explain why all three (business, commerce, and trade) are
interdependent.
5. If Desi Grains wants to expand into exporting organic flour to the USA, under which
category (business, commerce, or trade) would this activity fall? Justify your answer.
