Introduction to Business

REFLECTIVE ESSAY

A module with eighteen weeks of fun where most of us enjoyed it and contain different topics such as "Starting a small business", "Managing a business", and "Managing employee" makes me realized that successful businesses like Apple, Facebook, Microsoft we heard all the time was not as easy as I thought. 

Topic that I found no difficulties for me to understand when it was been exposed to me is "The production process". It is about steps of a product being produce in a fastest way with lower costs and good quality. Besides that, indirectly I learned that businesses can be producing physical goods or provide services.

Thus, with all of these I can rely on them in future. 

The most useful topic in this module is "Developing Marketing Strategies" as how we introduce our product or even design to other people by communicating because a product or design does not talk by itself. I found this is helpful to me because it taught me how I need to present my design to other people convincingly with right attitude and information. 

Last but not least, every business has tough time, sweat, tears and depressing moment before they got into a better situation. On top of everything else, we must have a good time management and good planning in everything we are going to do in order to achieve a good result so that our business can get more profit by serving our customer right.

[243 words]

PHOTOS

An image of our class activities work on how we manage our business by organizing people with different types of organizational structure.

TUTORIAL EXERCISES

Intro to Business Exercise 2.0

1. What is a niche market? Can you give 2 examples (other than from the notes) of a niche market? Why would a business want to target a niche market?

          Niche market refers to very specific or unique segment of a market. Examples of     
          niche market are online clothes businesses and burger stall. The world would want to   
          target a niche market because they are more informal, need less cost capital and 
          reduce market because there are not a lot of competition.

2. What are some of the reasons that motivate people to start their own business? If you were to start a business, what would be your main reason? Discuss.

         People start their own business because they have their dream, do not want to to an    
        employee. If I were to start a business, my main reason is I do not want to be an  
       employee nor self-employed. I would want to be an business owner which contribute to     
       the society. Why would I want to work so hard to chase people dream. I want to build my  
       own business and I know one day I will be an successful entrepreneur.

3. What is limited liability? Is this an advantage or a disadvantage to the business owner? How (i.e. illustrate with an example)?

          Limited liability means an owner do not personally responsible for the debts of the   
         company. This could be an advantage to business owner. For example, Mr Lim is a  
        shareholder of Star company. One day, the company went bankrupt, and Mr Lim does  
         not need to pay for the lost of the company.

4. What is a franchise? Why would the parent company of a franchise choose to sell licenses to franchisees instead of expanding their own chain of stores? Also, provide 2 examples of a franchise.

          Is business operating under licenses issued by parents companies. They choose to  
         sell licenses because they do not have to worry much. Example of companies are 
          KFC and MCDonald.

5. Your family has owned a business as a private company for the last 20 years. Recently your father, the CEO and chairman, is rushing to take the company public, but you sensed that he has not thought through this decision properly. As his adviser, what reasons would you give to persuade to stay as a private company?

          The company will have higher risk of bankruptcy. Because if the company change it 
          to public, then everyone is the owner and at the same time they cannot do inside 
          trading.

6. How can internet help a recently-started small business?

         Do not need capital or low cost capital. Business news were spread easily, its free to 
         advertise and can do it at home.

7. If you are a banker and, Gabriel, a potential business owner wants to apply for a loan for starting a business, under which circumstances would you be more likely to lend – a) he wants to buy an existing business or b) he wants to start a brand new business? Why?

          a)  More safe, less risky, stable income flow. 

          b)  More risky.

8. Discuss (any) 2 pros and 2 cons of a partnership.

          Pros : More people thus more capital.

          Cons : Unlimited liabilities and more conflicts.

9. What are shares? Where are shares traded in Malaysia? How is the price of a company’s share determined in a share market?

          Company's value divided into few owner. A single unit of ownership of a particular  
          company. Shares are traded in BURSA Malaysia. The price of a company's share is  
         determine by how well the company does - economics. And how strong demand of 
         their share. If its high then it will be expensive.

Intro to Business Exercise 7.0

1. What is accounting? Explain.

          Accounting is an communicating tool used in a business to help its reader to make  

         business decisions and discharge the accountabilities of workers.

2. Lejun is the owner of an architectural firm but he has no rudimentary knowledge in accounting (he has an accountant who looks after everything for him). Is this acceptable? Why or why not?

          No, because he will be cheated.

3. What information can you obtain from a Profit and Loss Statement? How can you use this report to assist you in making business decisions (use an example)? What is the other name of P&L statement?

          From Profit and Loss statement (P&L) we can obtained reports of revenues, expenses 

          and profit or loss of a business. This statement assist the business owner whether    

         he/she should introduce new products to boost its profit. Another name for it is 

        'statement of income'.

4. What is a Balance Sheet? Also explain the 3 main items reported in it (with suitable examples). What is the other name of balance sheet?

          Balance sheet is a report that records what a business owns and owes in a particular 

          day. It contains asset, which used to generate revenues or sales. Liabilities, borrowings 

          from the bank (loans) and owner's equity which is the owner's own money or known as 

          capital. The other name of balance sheet is 'statement of financial position'.

5. What is the accounting equation (formula)? Shi Yi started her business on 1^st January 2011 with $1.5m of her own money and $0.8m of bank loan. Write out the equation for her business.

          Asset = Liabilities + Owner's Equity

          $2.3m = $0.8m + $1.5m

6. Continuing from question 5, what if Shi Yi repaid half of the bank loan 2 months later? How will her business’ accounting equation look like? Lastly, at the end of 2011, her business makes 0.4m of profit. Again, how will her accounting equation look like?

          $ 2.3m = $0.4m + $1.9m

7. Yin Jou wants to borrow $150,000 from Public Bank. She currently has $250,000 of assets (car, shares and cash) and liabilities (e.g. personal loans) of $226,500.  Based on this information, would you (as a loan officer) approve the loan? Why or why not?

          No, because the asset she has is not enough to pay off all her loans.

8. Herman runs a roti canai stall in Subang. His monthly rent and utility expenses are $2700. He sells each roti canai for $1.50 and it costs him $0.65 to make each. Calculate his break-even point. Why is this information important to him?

          $2700 / ($1.50- $0.65) per unit = 3177 roti canai's. He has to sell 3177 roti canai's in 

          order to avoid any losses. This is information is important to him because it helps him  

          to make decision whether he should continue selling it, or increase the price.

ORAL PRESENTATION SLIDE

Presentation Slide on Social Issue