Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Week 1

Content :
Concept of business, profit, and production Economic systems

Understanding Business and Environment

Business environments

Jakarta, September 2008

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

The concept of business & the concept of profit

Content :
Concept of business, profit, and production

Business is an organization that provides goods or

services to earn profits

Profits represent the difference between a

businesss revenues and its expenses

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

What are factors of production?

Content :
Concept of business, profit, and production

Resources used in the production of goods and serviceslabor, capital, entrepreneurs, physical resources and information resources

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Factors of production
1. Labor / Human resources / Intelectual Capital

Content :
Concept of business, profit, and production

2. Capital 3. Entrepreneur 4. Physical resources 5. Information resources

Can you name any others ?

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Economic systems around the world

Content :

An economic system is a nations system for allocating its resources among its citizens.

Economic systems

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

1. Planned Economy

Content :

Relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions. The Kremlin is shown above.

Economic systems What is Communism? Planned economy in which the government owns and operates all factors of production

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

2. Market Economy

Content :

Economic systems

Relies on individuals to control production and allocation decisions through supply and demand

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Circular Flow in a Market Economy

Content :

Economic systems

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

3. Mixed Market Economy

Content :

Features characteristics of both planned and market economies Privatization is the process of converting government enterprises into privately owned companies Socialism is a partially planned system in which the government owns and operates selected major industries

Economic systems

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

The Laws of Supply and Demand

Content :

The law of demand: Buyers will purchase (demand) more of a product as its price drops and less as its price increases.

Economic systems

The law of supply: Producers will offer (supply) more of a product for sale as its price rises and less as its price drops.

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Evolution in Business

Production Era

Marketing Era

Content :

Laissez-Faire & Entrepreneurship Era

Global Era

Economic systems

Industrial Revolution

Information & Internet Era

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Organizational Boundaries

Content :

That which separates the organization from its environment

Business environments

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Dimensions of the External Environment

Content :

Business environments

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

1. Economic environment
Economic Growth

Content :

Aggregate Output and Standard of Living Gross Domestic Product (GDP) & Gross National Product (GNP) Purchasing Power Parity

Productivity Balance of Trade National Debt

Economic Stability
Inflation Unemployment Recessions and Depressions

Business environments

Global economy in 21st century

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

The global economy in the 21st century

Content :

Major forces driving the economy: The information revolution will continue to enhance productivity across all economic sectors. New technological breakthroughs will create entirely new industries. Increasing globalization will create much larger markets while fostering tougher competition among global businesses.

Business environments

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

2. Socio cultural environment

Content :

Conditions including the customs, mores, values and demographic characteristics of the society in which an organization functions

Business environments

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Customer Preferences and Tastes

Content :

Customer preferences and tastes vary both across and within national boundaries.

Consumer preferences can vary widely within the same country. Consumer preferences and tastes change over time.

Business environments

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

3. Business environment

Core competencies

Content :
Outsourcing Viral marketing

Business process management Business environments

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id

Universitas Multimedia Nusantara (UMN)

www.unimedia.ac.id

Content :
Concept of business, profit, and production Economic systems

thank you

Business environments

Exclusively prepared & presented by: Anna Riana Putriya

e-mail: anna@unimedia.ac.id