Universitas Multimedia Nusantara (UMN) www.unimedia.ac.id
Week 1
Content :
Understanding Business and
Concept of business,
profit, and production
Environment
Economic systems
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 : • Business is an organization that provides goods or
services to earn profits
Concept of business, • Profits represent the difference between a
profit, and production business’s 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 : Resources used in the production of goods
and services—labor, capital, entrepreneurs,
physical resources and information
Concept of business, resources
profit, and production
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 : 2. Capital
3. Entrepreneur
Concept of business, 4. Physical resources
profit, and production
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 nation’s 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
Economic systems • Socialism is a partially planned system in
which the government owns and operates
selected major industries
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 & Global Era
Entrepreneurship Era
Economic systems
Information & Internet
Industrial Era
Revolution
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
Business environments
– Unemployment
• Recessions and Depressions
• 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
Major forces driving the economy:
Content :
– 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
Conditions including the customs, mores, values and demographic
Content :
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
• Customer preferences and tastes vary both across and within
Content :
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 thank you
Economic systems
Business environments
Exclusively prepared & presented by: Anna Riana Putriya e-mail: anna@unimedia.ac.id