BUSINESS

MANAGEMENT
Part 2:
• Intellectual Property
• Online Business Ethic
• Business Cost

@rabi’ahseman
INTELLECTUAL What is Intellectual Property?

PROPERTY
Intellectual property (IP) refers to creations of the mind, such as inventions;
literary and artistic works; designs; and symbols, names and images
used in commerce. –
- WIPO-World Intellectual Property Organization

Types of Intellectual Property

Copyright Trademark Patents

Copyright is a legal term used to
describe the rights that creators
have over their literary and
artistic works. Works covered by
copyright range from books,
music, paintings, sculpture and
films, to computer programs,
databases, advertisements,
maps and technical drawings.
A trademark is a sign capable of
distinguishing the goods or services of
one enterprise from those of other
enterprises. Trademarks date back to
ancient times when artisans used to
put their signature or "mark" on their
products. Includes words, logos,
pictures, names, numbers or
combination of these.
A patent is an exclusive right granted
for an invention. A patent provides the
patent owner with the right to decide
how - or whether - the invention can
be used by others. In exchange for this
right, the patent owner makes
technical information about the
invention publicly available in the
published patent document..
http://www.myipo.gov.my/en/home/

@rabi’ahseman
 Ethical Issues in Online Business
ONLINE
https://smallbusiness.chron.com/ethical-problems-ebusiness-62037.html
Business
Representation
BUSINESS • Avoid using stock
photographs of large
office buildings,
• Avoid;
ETHICS
professional
conference rooms or
employees at work on
business websites
• Avoid paying for
social media “likes”
or followers
Intellectual Information
Property Violation Security
i. Unoriginal logo
ii. Image theft
• Companies that sell
products and services
online typically collect
iii. Content theft sensitive information
iv. Selling from customers that
counterfeit includes credit card or
items bank account
v. Unauthorized information, along
use of video with the customer's
and audio files name, address, and
phone number.
 Ethical Issues in Online Business

ONLINE
https://smallbusiness.chron.com/ethical-problems-ebusiness-62037.html

Product Quality Vendor Compliance Customer Service

BUSINESS
• Customer has to trust • Obtaining permission • Many retailers are
the merchant to sell her to sell the product as an committed to
an item that matches authorized retailer. providing quality
the photographs and • Using approved customer service and

ETHICS
descriptions posted on content, such as
the retailer's website photographs, company
• Unfortunately, some logos and descriptive
companies take copy in sales efforts.
advantage of the • Respecting price points
distance between established by the
consumer and product vendor.
to sell inferior goods • Some e-retailers fail to
honor these
requirements
offer online chat,
phone-based customer
service as well as email
assistance
• Unethical e-commerce
companies can make
it very difficult to get
help
 Online Business Regulation

ONLINE
In order to build customer’s trust and
confidence, entrepreneurs should;
Provide appropriate platform
• Seller must provide appropriate
platform / method to enable

BUSINESS
Disclose these information in website customers to rectify any errors /
default prior to confirming orders
• Online trader’s name

ETHICS
• Business registration number
• Email address, telephone number,
address
• Description of products Acknowledge payment receipts
• Full price of products
• Seller must acknowledge payment
• Methods of payment
receipts to the customers without
• Terms & condition
delay
• Estimated delivery time

@rabi’ahseman
 Capital Expenditure Operation Expenditure Cost of Good Sold
- CAPEX - - OPEX - - COGS -
• Consist of the funds that companies • The ordinary and necessary expenses • Direct costs of producing the goods
use to purchase major physical goods (O&NE) that a company spends to sold by a company.
or services that the company will use operate its business each day • This amount includes the cost of the
for more than one year materials and labor directly used to
• Operating expenditures can include: create the good.
• Capital expenditures can include: •Rent • It excludes indirect expenses, such as
i. Plant and equipment purchases •Utilities distribution costs
ii. Building expansion and •Salaries and pension plan
improvements contributions FORMULA
iii. Hardware purchases, such as •Any expense that falls under selling,
computers general, and administrative expense Beginning Ending
iv. Vehicles to transport goods (SG&A) on the income statement COGS =
Inventory + P - Inventory
•Marketing
•Research and development (R&D)
•Property taxes P = Purchase during the period
•Business travel

BUSINESS cost @rabi’ahseman

 How to Calculate Profit & Loss
Retail Price Sales 1000
- COGS (200)
Gross Profit 800

- OPEX (300)
COGS OPEX COMMISSION MARGIN Net Profit 500
Regulate, manage Regulate, manage Commission scheme Portion of margin
& assess & assess must not negatively to be used for
impact business reinvestment
margin

Commission Types
Raw Materials • Sold units
• Individual bonus
• Group bonus

BUSINESS MARGIN @rabi’ahseman

• Sales Forecasting is the process of estimating what your
business’s sales are going to be in the future. A sales forecast
period can be monthly, quarterly, half-annually, or annually.
• The process of preparing a sales forecast for a new business
involves; x
i. researching your target market,
ii. your trading area and your competition and
iii. analyzing your research to guesstimate your future sales.
=
Sample
How to Create a Sales Forecast 6 Month Sales
• Making a list of the goods and services to be sold Forecast
• Estimating of the number of each to be sold
• Multiplying the unit price by the estimated number of goods or
services to be sold
• Determining the cost of each good or service
• Multiplying the cost of each good or service by the estimated
number to be sold
• Subtracting total cost from the total sales

Sales forecast
• Return on Investment (ROI) is a performance
measure used to evaluate the efficiency
or profitability of an investment or compare 01
the efficiency of a number of different
investments.
How to Calculate ROI
Example ;
Suppose Azlan invested RM1,000 in McDonald
Corp. in 2019 and sold the shares for a total of
RM1,200 one year later. Calculate ROI for Azlan;
ROI = RM1,200 – RM1,000 = RM200 / RM1,000
RM1,000
= 20%

_ Cost of
02 Suppose Azlan invested RM2,000 in KFC Corp. in
Current Value of 2019 and sold the shares for a total of RM2,800 in
ROI = Investment Investment 2020. Calculate ROI for Azlan;

Cost of ROI = RM2,800 – RM2,000 = RM800 / RM2,000

Investment RM1,000
= 40%
Which investment gave a higher return to Azlan?

Return on investment @rabi’ahseman

THANK YOU
- Business Management -

@rabi’ahseman
rabiahseman@gmail.com