01 Taking Risks and Making Profits

01
Taking Risks and

Making Profits
Within The
Dynamic
Business
Environment
Manajemen Bisnis Ganjil 2020/2021 1
Learning Objective
Part 1. Describe the relationship between profit and risk and

show how businesses can raise the standard of living for all.
Part 2. Explain factors contribute to the creation of wealth
Part 3. Identify business environments
Manajemen Bisnis Ganjil 2020/2021

Basic Terminologies
Services
Business Entrepreneur Goods
• Intangible products
• Any activity that • A person who risks • Tangible products (that can’t be held
seeks to provide time and money such as in your hand) like
goods and to start and computers, food, education,
services to others manage a clothing, cars and healthcare,
while operating at business. appliances. insurance, recreation
a profit. and travel.
Revenue Profit Loss

• The total amount of • The amount of • Occurs when a
money a business money a business business’s
takes in during a earns above and expenses are
given period by beyond what it more than its
selling goods and spends for salaries revenues.
services. and other expenses
Risk and Profit
• Risk -- The chance an entrepreneur takes of losing time and money on a business that
may not prove profitable.
• Not all businesses make the same amount of profit.
• Businesses take risks, but with great risks could come great profit.
• For example:
• Digicel made billions of dollars selling phones in the poorest and most violent
countries in the world
• Tata motors from India selling cheap car
Standard Of Living & Quality Of Life
Business and Standard of Living

their employees
pay taxes to the • The amount of goods and
government services people can buy with
the money they have.
• Different countries have
different standards of
living
Taxes help
country to build • Workers in other
better education, countries may make
facilities, etc Quality of Life more money, but prices
• The general well-being of a for products are higher.
society in terms of its political
freedom, natural environment,
Thus, business education, healthcare, safety,
contributes to amount of leisure and rewards
the standard of that add to personal satisfaction.
living and
quality of life for
citizens
Stakeholders
“ All the people who stand to

gain or lose by the policies
and activities of a business
and whose concerns the
businesses need to address.”
Using Business Principles in
Nonprofit Organizations
• Nonprofit Organization -- An organization whose goals do not include
making a personal profit for its owners or organizers.
• Do we need to learn business administration to build a nonprofit

organization?
• YES!
• Social entrepreneurs are people who use business principles to start

and manage not-for-profits and help address social issues
• Example: Muhammad Yunus won the Nobel Prize for starting the Grameen
Bank, a microlending organization.
• In Indonesia? Kitabisa.com (crowdfunding), Klinik Asuransi Sampah, etc.
Who Takes The Entrepreneurial
Challenge?
In Indonesia:
• Only 3% Indonesia citizens are
entrepreneurs, whilst in the
developed countries at least
14% of their citizens are
entrepreneurs [1]
• 14,3 millions woman own
businesses in Indonesia [2]
Sources:
[1] Neraca. 2019. https://neraca.co.id/article/115493/syarat-negara-maju-punya-pengusaha-14-ri-baru-31
[2] Merdeka. 2017. https://www.merdeka.com/uang/jumlah-pengusaha-wanita-meningkat-jadi-143-juta-orang.html
[3] Katadata. 2019. https://databoks.katadata.co.id/datapublish/2019/10/15/kesetaraan-gender-dalam-wirausaha-indonesia-tertinggi-di-asia-pasifik
Factors Related to
The Creation Of Wealth
• Why some countries are relatively wealthy and others poor?
• For starter, it depends on the five factors of production
• What makes rich countries rich today is a combination of entrepreneurship and the
effective of knowledge. Also, the business environment either encourages or
discourages entrepreneurship
• Reflect on how Mexico and Indonesia has large numbers of land and labor, but still
not considered as rich countries
Business Environment
Five elements in the

business environment
Government’s Role In Business
Minimizing spending
and keeping taxes
Government can promote and regulations to a
minimum.
business by…
Allowing private
Minimizing ownership of
corruption. businesses.
Minimizing
Establishing a
interference with
currency that’s
the free exchange
tradable in world
of goods and
markets.
services.
Passing laws that
enable
businesspeople to
write enforceable
contracts.
The Technological Environment
• Technology -- Everything from phones to copiers and the

various software programs that make businesses more effective,
efficient and productive.
Effectiveness -- • Producing the desired result.
• Producing goods and services using the

Efficiency -- least amount of resources.
• The amount of output you generate

Productivity -- given the amount of input (example:
hours you work).
The Technological Environment
ECOMMERCE
• The buying and selling of goods online.
• B2C: Business to Consumer
• B2B: Business to Business
IDENTITY THEFT
• The obtaining of individuals’ personal information,
such as Social Security and credit card numbers, for
illegal purposes.
CYBER ATTACKS on BUSINESSES

• 29% of security breaches are hackers pretending to
be you and resetting your passwords.
The Competitive Environment
• Competing by Exceeding Customer Expectations

• Providing better goods and services with better values for money
• Competing by Restructuring and Empowerment

• Firms must give their frontline workers—for example, office clerks, front-
desk people at hotels, and salespeople—the responsibility, authority,
freedom, training, and equipment they need to respond quickly to
customer requests.
The Social Environment
• Demography -- The statistical study of the population in terms of

size, density and characteristics like, age, race, gender and
income.
• Diversity has grown from just recruiting minority and female
workers.
• Population shifts are creating opportunities for some and limiting

others.
• Growth of single-parent households have encouraged businesses

to implement programs such as family leave and flextime.
The Global Environment
Important changes on growth of global
competition
Increase of free Advances in

War and Climate
trade among communication
terrorism change
nations. systems.
Global Environment
Task 1: Stakeholders’ Point of Views
1. Find out what “outsourcing” and “insourcing” means in business.

Provide examples.
2. Read this following article “Pantaskah RI Marah Karena Gojek
Rekrut Insinyur dari India?” source:
https://www.cnbcindonesia.com/tech/20190411154115-37-
66084/pantaskah-ri-marah-karena-gojek-rekrut-insinyur-dari-india
3. Identify all GOJEK stakeholders. Choose 3 stakeholders and put
yourself in their shoes. What are your concerns regarding their
decision mentioned in the prior article?
Work in group of 3-4 students

Answer these following questions in SceLe Forum “Minggu 1”
Task 2: Business Environment in
Indonesia
1. Suppose your team want to open a business in Indonesia. Find out

how to get a business license to open a business in a city (you can
pick any city in Indonesia).
2. How Indonesia government support and encourage
entrepreneurship? Is there any laws or incentives that help
increasing the number of entrepreneur in Indonesia?
Work in group of 3-4 students

Answer these following questions in SceLe Forum “Minggu 1”
References
Farras, B. (2019, April 11). Pantaskah RI Marah Karena Gojek Rekrut

Insinyur dari India?. CNBC Indonesia. Retrieved from
https://www.cnbcindonesia.com/tech/20190411154115-37-
66084/pantaskah-ri-marah-karena-gojek-rekrut-insinyur-dari-india
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2005). Understanding

business. Taking Risks and Making Profits within the Dynamic Business
Environment (pp 2-20). Boston: McGraw-Hill/Irwin.

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01

Taking Risks and

Part 1. Describe the relationship between profit and risk and

Manajemen Bisnis Ganjil 2020/2021

Revenue Profit Loss

Business and Standard of Living

“ All the people who stand to

• Do we need to learn business administration to build a nonprofit

• Social entrepreneurs are people who use business principles to start

Five elements in the

• Technology -- Everything from phones to copiers and the

Effectiveness -- • Producing the desired result.

• Producing goods and services using the

• The amount of output you generate

CYBER ATTACKS on BUSINESSES

• Competing by Exceeding Customer Expectations

• Competing by Restructuring and Empowerment

• Demography -- The statistical study of the population in terms of

• Population shifts are creating opportunities for some and limiting

• Growth of single-parent households have encouraged businesses

Increase of free Advances in

1. Find out what “outsourcing” and “insourcing” means in business.

Work in group of 3-4 students

1. Suppose your team want to open a business in Indonesia. Find out

Work in group of 3-4 students

Farras, B. (2019, April 11). Pantaskah RI Marah Karena Gojek Rekrut

Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2005). Understanding

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