INTRODUCTION TO
BUSINESS
Subarjo Joyosumarto SE, MA, Ph.D
4 September 2017
Meeting 1: The Business System
www.ibs.ac.id
Pengumuman
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
REFERENCES
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,
PART I BUSINESS ENVIRONMENT
1. Introduction to Business class
Chapter 1, The Business System
2. Overview of meeting 1
Chapter 4, Entrepreneurship
3.
Overview of meeting 2
Business in ASEAN
4.
Overview of meeting 3
Banking Business
5.
Overview of meeting 4
Chapter 3, Business Ethically and
Responsibility
6.
Monsoon 1 “Sell & Buy” Product
(modul: Finance, Procurement,
Retail)
7.
Overview of meeting 1-5
PART II BUSINESS PROCESS
8. Chapter 6, Managing the Business
Enterprise
9. Overview of meeting 8
Chapter 10, Marketing Process
and Consumer Behavior
10. Overview of meeting 9
Chapter 14, Producing Goods and
Services
11. Overview of meeting 10
Chapter 8, Human Resources and
Labor Relations
12. Overview of meeting 11
Chapter 15, Managing for
Production and Quality
13. Monsoon 2 “Business Function”
Product (modul: Finance,
Procurement, Warehouse,
Marketing, HR)
14. Overview of meeting 8-12
Chapter 1. The Business
System
An economic system is a
nation’s system for
allocating its resources
among its citizens.
Circular Flow in a Market Economy
OUTPUT MARKETS
Goods Services
INPUT MARKETS
Labor
Capital
Entrepreneurs
Physical resources
Information resources
HOUSEHOLDS
•
Demand products in output markets
•
Supply resources in input markets
FIRMS
•
Supply products in output markets
•
Demand resources in input markets
Rp
Business income
Rp
Consumer Spending
Rp
Payment for Resource
Rp
DEMAND IN AN ECONOMY
•
Demand
is the willingness and ability of buyers
to purchase a good or service
SUPPLY IN AN ECONOMY
•
Supply
is the willingness and ability of
producers to offer a good or service for sale
Demand Curve
•
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
Demand Curve
Quantity (Kg)
Price/Rp
A
B
100
80
50
Supply Curve
•
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
Supply Curve
Quantity (Kg)
Price/Rp
A
B
100
80
The Laws of Supply and Demand
Supply Curve Quantity Price A B Demand Curve Quantity Price A BThe
law of demand
:
Buyers will purchase (demand)
more of a product as its price
drops and less as its price
increases.
The
law of supply
:
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
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
EXERCISES 2
Price of Shoes/pair/Rp
Quantity Supplied (pairs)
Quantity Demanded (Pairs)
75.000
30
90
100.000
40
75
125.000
45
60
150.000
50
50
175.000
60
45
200.000
75
40
225.000
90
35
250.000
100
25
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 :
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
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
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
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
Questions for discussions - Article
TEMPO.CO,Jakarta- Menteri Perdagangan Enggartiasto 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
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 ?
Activities - Optional
