CONCEPT OF BUSINESS BUSNINESS GOALDIRECTED BEHAVIOR AIMED AT

CONCEPT OF BUSINESS

BUSNINESS § GOAL-DIRECTED BEHAVIOR AIMED AT GETTING AND USING PRODUCTIVE RESOURCES TO BUY, MAKE, TRADE, AND SELL GOODS AND SERVICES THAT CAN BE SOLD AT A PROFIT

PRODUCTIVE RESOURCES CAPITAL LAND OPERATING COSTS LABOR ENTREPR ISES

THREE MEANINGS OF BUSINESS § BUSINESS AS COMMERCE: PROSES THROUGH WHICH PEOPLE PRODUCE , EXCHANGE, AND TRADE GOODS AND SERVICES § BUSINESS AS OCCUPATION: THE ACQUIRED SET OF SPECIALIZED SKILLS AND ABILITIES THAT’S ALLOWS PEOPLE TO CREATE VALUABLE GOODS AND SERVICES.

§ BUSINESS AS AN ORGANIZATION: THE SYSTEM OF TASK AND AUTHORITY RELATIONSHIP WHICH COORDINATES AND CONTROLS THE INTERACTIONS BETWEEN PEOPLE SO THAT THEY WORK TOWARD A COMMON GOAL.

BUSINESS SYSTEM § THE COMBINATION OF COMMERCE, OCCUPATIONS, AND ORGANIZATIONS THAT RESULT IN THE PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES PEOPLE VALUE (WANTS).

BUSINESS SYSTEM BUSINESS COMMERCE BUSINESS SYSTEM BUSINESS OCCUPATION BUSINESS ORGANIZATION

BUSINESS AS A COMMERCE § THE PROCESS BY WHICH PEOPLE PRODUCE AND EXCHANGE VALUABLE GOODS AND SERVICES THAT FULFILL THEIR WANTS AND NEEDS.

DEMAND, SUPPLY, AND MARKET PRICE § MARKET: BUYERS AND SELLERS A PRTICULAR PRODUCT OR SERVICE. § LAW OF DEMAND: THE PRINCIPLE THAT STATES AS THE PRICE OF A PRODUCT RISES, CONSUMERS WILL BUY LESS OF IT, AND AS THE PRICE OF IT FALLS, CONSUMERS WILL BUY MORE OF IT.

§ LAW OF SUPPLY: THE PRINCIPLE THAT STATES THAT AS THE PRICE OF PRODUCT RISES, THE PRODUCRS WILL SUPPLY MORE OF IT, AND THAT AS THE PRICE OF IT FALLS THE PRODUCERS WILL SUPPLY LESS OF IT.

BUSINESS MODEL § A PLAN A COMPANY HAS FOR USING ITS RESOURCES TO CREATE VALUABLE PRODUCTS AND SERVICES THAT WILL GIVE IT A COMPETITIVE ADVANTAGE § BUSINESS MODEL SPECIFIES HOW A COMPANY IS GOING TO CREATE VALUE FOR CUSTOMERS. § COMPETIVE BUSINESS MODEL, COMPANY GENERATES MONEY, OR INCOME, FROM THE SALE OF THE PRODUCT.

INDUSTRY § A GROUP OF COMPANIES THAT MAKE SIMILAR PRODUCTS AND SERVICES AND COMPETE FOR THE SAME CUSTOMERS.

BUSINESS OCCUPATION § THE ACQUIRED SET OF SPECIALIZED SKILLS THAT ENABLE A PERSON TO CREATE VALUABLE GOODS AND SERVICE THAT CAN BE TRADED AT A PROFIT. § SHOWS INDIVIDUALS’ EXPERTISES DETERMINING FUNCTION AND RESPONSIBILTY THE COMPANY GIVE TO HIM OR HER.

SPECIALIZATION, DIVISION OF LABOR AND PEOPLE’S WELL BEING LEADS TO INCREASED PRODUCTIO N AND INCOME DIVISION OF LABOR LEADS TO INCREASED DEMAND QUALITY SPECIALIZATI ON LEADS TO

HUMAN CAPITAL § KNOWLEDGE, SKILLS, EXPERIENCES, IDEAS, PERSONALITY, AND ABILITY OF THE ORGANIZATION’S MEMBERS.

TRANSACTION COST (BIAYA TRANSAKSI) § COSTS OF BARGAINING, NEGOTIATING, MONITORING, AND REGULATING EXCHANGES BETWEEN PEOPLE IN BUSINESS. § TRANSACTION COSTS INCREASE: § WHEN EACH PEOPLE MAKES BUSINESS BECAUSE IT NEEDS LONG TIME TO BARGAIN AND NEGOTIATE RESOURCES AND PRODUCTS THE COMPANY HAVE. § WHEN PEOPLE DO BUSINESS UNETHICALLY. § WHEN PEOPLE DO A COMPLEX ACTIVITIES BY THEMSELVES. SOLUTION: CREATE TEAM.

BUSINESS ORGANIZATION DECREASE TRANSACTION COST § BUSINESS ORGANIZATION: INSTRUMENT CREATED TO PROVIDE PEOPLE (OWNERS AND MANAGERS) RIGHT (POWER) TO CONTROL EMPLOYEES’ WORK RELATED BEHAVIORS.

ORGANISATION STRUCTURE § FRAMEWORK OF TASK AND AUTHORITY RELATIONSHIPS THAT COORDINATES PEOPLE SO THEY WORK TOWARDS A COMMON GOAL. § GOOD ORGANIZATION STRUCTURE REDUCES TRANSACTION COST § BARGAINING AND NEGOTIATING COSTS ARE ELIMINATED § MANAGERS CAN POOL AND COMBINE EMPLOYEES’ SKILLS FOR GAINING SYNERGY § ORGANIZATION FORCES THE PEOPLE (EMPLOYEES) TO COOPERATE § BUSINESS ORGANIZATION CAN PURSUE NEW OPPORTUNITIES AND TAKE MORE RISKS TO CREATE PROFITABLE GOODS AND SERVICES.