INTRODUCTION TO BUSINESS Meeting 1 040917
INTRODUCTION TO BUSINESS Subarjo Joyosumarto SE, MA, Ph.D
4 September 2017 Meeting 1: The Business System
Pengumuman Intro. Business 2017 Meeting 1 Introduction to Business Class
REFERENCES- The list of books are stated at page 4 CLASS PROGRAM
- There will be 14 meeting and each meeting constitute 150 minutes length
- List of the class program are written at page 5 and 6
STUDENT PARTICIPATION
- Students are expected to actively participate in the class discussions
- They will learn both Business and English at the same time
LANGUAGE
- Bi-lingual, English and Bahasa Indonesia are used in the class
- Question for exams are in English. Students may choose to answer in English (will be given extra point) or in Bahasa Indonesia
1. Business By Ricky W. Griffin and Ronald J. Ebeil Pearson Prentice Hall, 2006
2. Think New ASEAN By Philip Kotler, Hermawan Kartajaya, Hooi Der Huar, Mc Graw Hill, 2015
3. Money, Banking and the Economy By Thomas Mayer, James S. Dussenberry, Robert Z.
Aliber, ww Nator & Compas, New York, 1981
4. A Smart and Good Entrepreneur, By Ir. Hendro, M.M., Media Perinda 2011 PART I BUSINESS ENVIRONMENT
1. Introduction to Business class
5. Overview of meeting 4
Chapter 1, The Business System Chapter 3, Business Ethically and Responsibility
2. Overview of meeting 1
Chapter 4, Entrepreneurship
6. Monsoon 1 “Sell & Buy” Product (modul: Finance, Procurement,
3. Overview of meeting 2 Retail) Business in ASEAN
7. Overview of meeting 1-5
4. Overview of meeting 3 Banking Business Midterm Exam
PART II BUSINESS PROCESS
12. Overview of meeting 11
8. Chapter 6, Managing the Business
Chapter 15, Managing for Enterprise Production and Quality
9. Overview of meeting 8
13. Monsoon 2 “Business Function”
Chapter 10, Marketing Process Product (modul: Finance, and Consumer Behavior Procurement, Warehouse, Marketing, HR)
10. Overview of meeting 9
Chapter 14, Producing Goods and Services
14. Overview of meeting 8-12
11. Overview of meeting 10 Final Exam
Chapter 8, Human Resources and Labor Relations
Chapter 1. The Business System PART I BUSINESS ENVIRONMENT
An economic system is a nation’s system for allocating its resources among its citizens. Citizens Resources
Circular Flow in a Market Economy
Rp
OUTPUT MARKETS
Rp Business income
Goods Services
Consumer Spending
FIRMS
- Supply products in output markets
HOUSEHOLDS
- Demand resources in input markets
- Demand products in output markets
- Supply resources in input markets
INPUT MARKETS Labor Capital Entrepreneurs
Rp Rp
Physical resources Information resources Income for Resource
Payment for Resource
DEMAND IN AN ECONOMY
- Demand is the willingness and ability of buyers to purchase a good or service
Traditional market: customers come to buy raw foods
SUPPLY IN AN ECONOMY
- Supply is the willingness and ability of producers to offer a good or service for sale
Factory : workers are working to make products to be sold
Demand Curve
Price/Rp A
100 B
80
50 Demand Curve Quantity (Kg)
30
25
- A demand curve is a graph showing how many units of a product will be demanded (bought) at different prices: at price Rp. 100, quantity demanded is 25 Kg
Supply Curve
Supply Curve Price/Rp
100 B
80 A Quantity (Kg)
20
25
- A supply curve is a graph showing how many units of a product will be supplied (offered for sale) at different prices: at prices Rp. 100, quantity supplied is 25 Kg at price Rp. 80, quantity supplied is 20 Kg
The Laws of Supply and Demand Price A B The law of demand: Demand Curve Buyers will purchase (demand) more of a product as its price Quantity drops and less as its price increases. Price Supply Curve The law of supply: B Producers will offer (supply) more A of a product for sale as its price rises and less as its price drops. Quantity
Surpluses and Shortages
Supply Curve Quantity
Price/Rp Demand Curve
Surplus Shortage
A B C D
Surplus is a situation in which quantity supplied exceeds quantity demanded
Shortage is a situation in which quantity demanded exceeds quantity supplied
100
75
50 20 25
50
55 EXERCISES 1 Prices of Rice /Kg/Rp Quantity Supplied /Kg Quantity Demanded/Kg
4.000
10
70 6.000
20
60 8.000
30
50 10.000
40
40 12.000
50
30 14.000
60
20
1. Draw a supply and demand curves, and show the point of equilibrium
2. When the price is Rp. 6.000/Kg, show the shortage of rice in the market
3. When the price is Rp 12.000/Kg, show the surplus of rice in the market
EXERCISES 2 Price of Shoes/pair/Rp Quantity Supplied (pairs) Quantity Demanded (Pairs)
45 200.000
2. When the price is Rp. 200.000/pair, show the surplus of shoes in the market
1. Draw the supply and demand curves, and show the point of equilibrium
25
35 250.000 100
90
40 225.000
75
60
75.000
50 175.000
50
60 150.000
45
75 125.000
40
90 100.000
30
3. When the price is Rp 125.000/pair, show the shortage of shoes in the market
Private Enterprise and Competition Competition occurs when two or more businesses vie for the same resources or customers.
Four degrees of competition:
- Perfect Competition : a lot numbers of supplies and buyers
- Monopolistic Competition: a few supplies and many buyers
- Oligopoly : a single buyer and a lot of supplies
- Monopoly : a single supply and a lot of buyers
Degrees of Competition Characteristic Perfect Competition Monopolistic Competition Oligopoly Monopoly Example Local farmer Stationary store Steel industry Public utility Number of competitors Many Many, but fewer than in pure competition
Few None Easy of entry into industry Easy Fairly easy Difficult Regulated by government Similarity of goods or services offered by competing firms Identical Similar Can be similar or different No directly competing goods or services
Level of control over price by individual firms None Some Some Considerable
The Concept Of Business and The Concept Of Profit Business is an organization that provides goods or services to earn profits
Profits represent the difference between a business’s revenues and its expenses
Profit = Business’s Revenue – Business’s Expenses
Factors of Production Labor (or Human resources) are the physical and mental capabilities of people as they contribute to economic production
Capital are the funds needed to create and operate a business enterprise
Factors of Production Entrepreneur is an individual who accepts the risks and opportunities involved in creating and operating a new business venture
Physical resources are tangible things organizations use in the conduct of their business
TEMPO.CO, Jakarta - Menteri Perdagangan Enggartiasto Questions for discussions - Article
Lukita optimistis harga daging sapi akan turun sesuai dengan target yang diharapkan masyarakat, yakni di bawah Rp 100 ribu per kilogram. Namun, menurut Enggar, penurunan harga daging sapi tersebut harus terjadi secara bertahap. "Kalau itu langsung turun (harganya), ada kecenderungan langsung naik (permintaannya). Jadi, pasti ada penahapan. Saya juga akan minta jaminan berapa lama mereka akan turun. Tapi tentu tidak bisa dalam 2-3 bulan," kata Enggar di Pasar Modern BSD, Serpong, Tangerang, Ahad, 7 Agustus 2016.
Agar target penurunan harga itu dapat dilakukan, Enggar berjanji akan memperhatikan suplai daging sapi bagi masyarakat. Baik suplai daging sapi impor maupun lokal harus seimbang. "Kami menyadari masih ada defisit. Ketersediaan dalam negeri belum mampu memenuhi kebutuhan pasar," ucapnya.
Enggar menilai, apabila masyarakat mengetahui bahwa suplai daging sapi tercukupi dan tidak ada kelangkaan, akan terdapat koreksi harga daging sapi di pasar. "Itu akan kami jamin," ujar Enggar yang pernah menjadi anggota Dewan Perwakilan Rakyat dari Partai Golkar tersebut. Enggar menegaskan, walaupun diperlukan impor daging sapi untuk memenuhi kebutuhan permintaan dalam negeri, peternak daging sapi lokal tetap akan diprioritaskan. "Kita harus adaroadmap agar bisa mandiri pangan. Daging, beras, semua produksinya harus mandiri. Tapi saya tidak anti-asing. Kalau mereka mau, silakan investasi di sini." Questions for discussions Questions Related to Previous Article
1. What are the basic factor of production in the industry ?
2. Explain the Demand and Supply interactions in shaping the market price of the
industry !3. Referring to the article, why should the supply of the beef need attention ?
4. What is the government’s role which affect the supply and demand of this industry ?
5. What are the environmental factors that affects the demand of this industry ?
Activities - Optional Roleplay of Buyer and Seller in the class reflecting Demand and Supply.
Thank You