My favourite topic of the Business subject is topic 2: Starting a Small Business. The whole topic basically is talking about the types of business that people would choose to start, either to start from scratch, buying an exisiting business or to go for a franchise. This depends a lot on the an individual him/ herself as different people has different way of thinking; someone might love to try the hard way of starting a brand new business as a type of challenge to him in his life but some people might just as well love to live a normal life operating small existing businesses. Besides, the topic also include the basic characteristics or qualities that an business owner needs to possess such as confident, high disciplined, communicates well, etc. This is relatively important to an individual as it would be rather helpful when someone is going to start a business in the future.
The topic that i found it most useful is topic 4: Managing a Business. This topic had taught me about the few types of organizational structure that normally involved in a company/ corporation. It descries how a particular organization would work by gathering all the strength of the workers form different department in a company to make the company stronger. However, each of this type of structure has its own benefits and consequences that an owner need to face; thus, a committee would sometimes form in a company to solve all the problems that resolved between different parties (departments) such as hatred to workers from different department.
Lastly, the few assignments that I am required to participate in such as the business presentation project is quite useful and made me learned a lot of things. For instance, the presentation project makes me felt the importance of both verbal and non verbal communication skills when presenting something to another person or a group of people. In order to do this, I would have to learn to being able to express my idea's in the public.
Exercise Topic 1
1. Big corporations (e.g. Taylor’s College, Coca Cola and Maybank) are the only true businesses. True or false? Why?
False, there are also many businesses besides than the above.
2. All businesses share something in common. What do you call an organization that does not have that purpose (assume such organization is not government–related)? Provide 2 examples of such organizations.
Non-profit organization, World Wildlife Fund and Community Recycle For Charity
3. Haziq and C.J. have recently obtained a license to set up business. They are free to set up any business of their choice. In the end, they have decided to target a large retiree community and open a music store selling Rap CDs. Comment on their decision.
Their decision is wrong because retiree wont want to listen to rap songs. They targeted the wrong customers.
4. Businesses are good for the society. Discuss how they can contribute. Provide specific examples for each type of contribution.
Businesses provides people with employment, you need workers to work for your business. It also pay tax for the government so that it could be used for public goods, every company needs to pay a certain percentage of their profit to the government. It also creates innovation to enhance our standard of living, smartphones are now common and very useful.
5. Define the term “barrier to entry”. Which type of business (goods-producing or service) has bigger barriers to entry? Why?
Barrier to entry means the obstacle for new business to get started or enter a new market. Good-producing business has bigger barriers to entry because it require a lot of capital assets.
6. List 2 (other) types of barriers to entry and give one example for each type.
Intellectual property, example: Microsoft vista and Economies of scale, example: Nokia.
7. Why are service businesses becoming more dominant in many countries? Research and discuss (any) 3 reasons.
The reasons are service business rely more on human resources than capital assets. Besides that, technology advancement has reduced the needs of labour and capital assets required. Lastly, good-producing business focusing on serving and supporting their customers, it hard to classify purely as either a good-producing or a service one.
8. In which economic condition should a business lower the price of its product and services? Why?
A business should lower the price of its product and services if the economy is in a recession. Many people will be unemployed and cannot afford to consume product and services.
9. Explain what a free market or capitalistic economy means? And a planned economy?
Free market means that businesses are free to set up, grown, sold or shut down. While planned economy relies on the government to produce the goods and services for its citizens.
Intro to Business Exercise 3.0
1. Define the term “ethics”. Does everyone view ethics or morality in the same way? Why or why not? Can you give an example to illustrate this?
Ethics are beliefs about things that are right or wrong. People do not view ethics or morality in the same way. This is because what is considered ethical in one society maybe considered unethical in another. For example, it is alright to practice gift giving in Asian countries but in most countries it is considered as bribing.
2. What is the difference between doing something “illegal” and something “unethical”? What (example of) behaviour is considered both illegal and unethical? Legal but unethical? Illegal but ethical?
When you do something illegal, it is against the law but when you do something unethical it is considered morally wrong. When the government allows a company to raise its price of its good just so the company is at an advantage. This is an example of legal but unethical. An example of something being illegal but unethical is when the company use their profit to help the homeless without anyone knowing.
3. What is global warming? What are its effects? If you are a business owner, what are some of the measures you can take to counter it? Suggest 2 strategies. (Note: you need to conduct research for this question)
Global warming occurs when the Earth’s temperature rises. This causes the melting of the polar ice caps that will lead to a drastic climatic change. If I was a business owner, I would reduce the number of machines that emit CFC gases. I would also install filters in the chimneys of my factories to prevent hazardous gases from being released into the air.
4. What is greenwashing? Explain and provide one example (other than the BP case).
Greenwashing is when a company projects a green image without being truly environmentally friendly. For example, Exxon Mobil has a reputation for environmental offenses but they pretend to be eco friendly.
5. Aman, Christian and Alice are the only sellers of architectural drawing materials in the market, and they recently agreed to raise the price of their products together by 25%. Describe the behaviour they are engaging in. Also, why is it illegal and unethical for them to do so?
They are engaging in pricing collusion. This is both illegal and unethical because it forces the customers to pay more for the same product.
6. What is dead peasant insurance? How does it work? Is it legal and ethical?
Peasant insurance is when a business buys insurance on employees and then gain profit when the employee dies. It is both illegal and unethical.
7. Explain the term “insider trading”. Also, in one short paragraph, describe the Martha Stewart insider trading case in your own words.
Insider trading is an act of buying and selling company shares by employees and managers to gain profit because they are aware of certain confidential information about the company. Her friend Sam Waksal told Martha Stewart that his company’s cancer drug had been rejected before it was made public. She was unaffected by this as she had her broker to sell her shares.
8. Sabrina has recently written a set of employee code of conduct for her business. Is the code alone sufficient to ensure ethical behaviours of her employees? Why or why not? If not, what can her do about it?
No, it is not. This is because the codes will not be followed unless she enforces it. This means that everyone, including herself, will have to abide by the code of ethics.
9. If you are running a business, which social responsibility approach would you adopt (obstructionist, proactive, etc.)? Why?
I would run an accommodative business. This is because I will exceed my legal and ethical requirements according to the situation. This means that I will have a balance in supporting nature and my business.
Business Presentation
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