week-01-understanding-business-system-and-environment-1222582709674927-9

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Universitas Multimedia Nusantara (UMN) www.unimedia.ac.id

Understanding Business andEnvironment

Week1

Content :

Concept of business, ro t n ro uct on

Exclusively prepared & presented by: Anna Riana Putriya e-mail: [email protected]

Jakarta, September 2008Business environments

Economic systems


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The concept of business & the concept of profit

Business is an organization that provides goods or

services to earn profits

Profits represent the difference between a

Content :




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What are factors of production?

Content :Resources used in the production of goodsand serviceslabor, capital, entrepreneurs,physical resources and informationresourcesConcept of business,

ro t n ro uct on



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Factors of production

1. Labor / Human resources / Intelectual Capital

2. Capital

3. Entrepreneur

4. Physical resources

Content :



5. Information resources

Can you name any others ?


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Economic systems around the world

Content : An economic system is a nations system for allocatingits resources among its citizens.


Economic systems


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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


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2. Market Economy

Content :


Economic systems

Relies on individuals to control production and allocation decisionsthrough supply and demand


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Content :

Circular Flow in a Market Economy


Economic systems


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3. Mixed Market Economy

Content :Features characteristics of both planned and market economies

Privatization is the process of convertinggovernment enterprises into privatelyowned com anies


Economic systems

Socialism is a partially planned system inwhich the government owns and operatesselectedmajor industries


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The Laws of Supply and Demand

Content : The law of demand:Buyers will purchase (demand) more of a product asits 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.


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Evolution in Business

Content :

Production Era Marketing Era


Economic systems

IndustrialRevolution

a ssez- a re

Entrepreneurship EraGlobal Era

Information & InternetEra


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Organizational Boundaries

Content : That which separates the organization from

its environment


Business environments


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Dimensions of the External Environment

Content :



U i i M l i di N (UMN) i di id


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1. Economic environment

Content :

Economic Growth

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

Unemployment

Recessions and Depressions

Global economy in 21st century

U i it M lti di N t (UMN) i di id


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The global economy in the 21stcentury

Major forces driving the economy:

The information revolution will continue to enhance productivity

across all economic sectors.

New technological breakthroughs will create entirely new industries.

Content :


Increasing globalization will create much larger markets while

fostering tougher competition among global businesses.


Universitas Multimedia Nusantara (UMN) www unimedia ac id


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2. Socio cultural environment

Conditions including the customs, mores, values and demographic

characteristics of the society in which an organization functions

Content :



Universitas Multimedia Nusantara (UMN) www unimedia ac id


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Customer Preferences and Tastes

Customer preferences and tastes vary both across and within

national boundaries.

Consumer preferences can vary widely within the same country.

Content :


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3. Business environment

Core competencies

Outsourcing

Viral marketin

Content :


Business process management




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( )

thank ou

Content :




Economic systems

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