MIDTERM EXAMINATION

MM5006 – BUSINESS ECONOMICS

24 June 2019.
TAKE HOME EXAM

Softcopy submission
Due: 3 July 2019 not more than 11:59 AM
Send to: Pak Yudo Anggoro yudo.anggoro@sbm-itb.ac.id
Cc to: Kinanti Utami kinanti.utami@sbm-itb.ac.id

Use real and up-to-date data to answer the questions. Elaborate the data, to support and
strengthen you analysis (from internet, etc)

5 QUESTIONS (20 POINTS EACH).

1. Tourism has potential business success in Indonesia, especially in the era of globalization.
Based on your understanding about the consumer behavior, the producer behavior and the
market structure of Travel industry, answer the following questions :
a. Analyze the demand facing “Travel Industry” in Indonesia, and also the supply side.
b. Analyze the cost structure of “Big and Small Travel” Companies (Indonesia), and after
predicting the volatility of oil price and other components of transportation costs,
then explain the prediction of their demand for the next five years.
c. Explain the market structure of Big Travel Companies (Indonesia). And then compare
with Small Companies.
d. Explain how Big and Smalll Travel Companies (Indonesia) will maximize profit ?
Provide graphical illustration.

2. Hospital Business has potential business success in Indonesia, especially in the era of BPJS.
Based on your understanding about the consumer behavior, the producer behavior and the
market structure of hospital business, answer the following questions :
a. Analyze the demand facing Private Hospitals and Goverment-Hospitals.
b. Analyze the cost structure of those hospitals (Indonesia), and after predicting the
volatility of their related economic variables, then explain the prediction of their
demand for the next five years.
c. Explain the market structure of Big Hospitals (Indonesia) and Small Hospitals (incl.
Clinics).
d. Explain how Hospitals (Indonesia) will maximize its profit ? Extend your opinion by
including BPJS and Non-BPJS patients.

3. Motorcycle Industry has potential business success in Indonesia, especially in the era of
globalization. Based on your understanding about the consumer behavior, the producer
behavior and the market structure of this industry, answer the following questions :
 a. Analyze the demand facing Honda (Indonesia), produced by Astra Group, in Indonesia
and for export.
b. Analyze the cost structure and after predicting the volatility of oil price, then explain
the prediction of their demand for the next five years.
c. Explain, in which market structure of Yamaha (Indonesia) is in ? And then compare
with Suzuki (Indonesia).
d. Explain how the 3 companies will maximize profit ? Do they need to have “cartel” ?

4. Based on your understanding about the consumer behavior, the producer behavior and the
market structure of the “insurance industry” (Indonesia), answer the following questions :
a. Analyze the demand and supply of the “Big Insurance Companies” (Indonesia), for :
asuransi kerugian and asuransi jiwa.
b. Analyze the cost structure and revenues of the “Big Insurance Companies”.
c. Explain, in which market structure that the BPJS is in ? Explain with other insurance
companies offering the “same products”
d. Explain how an insurance company and BPJS will maximize their profit ? Provide
graphical illustration.
e. What is you opinion about an insurance company offering “lower price” than BPJS ?
Explain your opinion according to economic theory

5. Use the methodology from Chapter 15 from Keat and Young (Seventh Edition, page 582)
to analyze one of the company below (choose only one company) :
(a) Telkomsel, (b) Shell (Indonesia), (c) Freeport (Indonesia), (d) Grab (Indonesia), (e) Blue
Bird Group.
You have to analyze using the “up-to-date / latest data” of the company.

a. Analyze the "real-product" of the company.

b. Follow the methodology from Chapter 15 and then analyze the business future of the
company.
c. What is the major competitive strategy of the company related to Indonesian
market. Why it is important (for the company).

d. What are the economic variables and management (operations, finance, human
resources, marketing, etc.) that need to be taken into the competitive strategy, to
gain its competitive advantages in Indonesia.
e. For the company, what are the Key Success Factors, and what do you think they have
to do, to maintain their competitive position, especially as its industry changes ? Then
explain the Managerial Implications.