Introduction to Business

A)    Reflective essay

Through Business subject, I have had an overall understanding on the concept of what is business, in what forms does it exist and its functions and contributions towards the society and the country’s economy.

Then I learnt about the qualities that an entrepreneur should have and I realized one of the qualities I lack the most is high discipline. Therefore I am determined to change and improve myself to be better. Besides, learning ways to start a business is also included in our syllabus. I have had learnt on the ethics and social responsibility a business should have and I found out not everything that is right will be ethical. One important lesson I learnt from here is choose who you will be cooperating with wisely to ensure everything will go smoothly.

So, my favorite topic of all is the management process that has four main components, plan, organize, lead and control. Here, I learnt the ways and importance of these components and the quote, “If you fail to plan, you are planning to fail.” In this topic I have also knew the skills needed to make a business successful and the importance of setting a goal.

Moreover, I did learnt a little on the basic accounting and the profit loss statement which I think is important in the survival of the business as it involves money. Last but not least, know who are my customers and coordinate with the suppliers. As a conclusion, I applied what I learned in this subject on the Business charity drive and realized the dos and don’ts while running a business and how to make my business even better.

B)    Tutorial exercises

Intro to Business Exercise 1.0

1.      Big corporations (e.g. Taylor’s College, Coca Cola and Maybank) are the only true businesses. True or false? Why?

False. Small business is legal and makes profits too.

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 Red Cross.

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.

I do not think they have made a wise decision because retiree are usually the elder generation that might not be so fond of  the rap songs the younger generation listens to.

4.      Businesses are good for the society. Discuss how they can contribute. Provide specific examples for each type of contribution.

Business provides services to the society. Besides business trains the employees with entrepreneurship, leadership and teamwork values. Business also provides employment opportunities. Next, business creates innovation in order to compete and thus increases our standard of living.

5.      Define the term “barrier to entry”. Which type of business (goods-producing or service) has bigger barriers to entry? Why?

Barrier to entry is the obstacles faced by new businesses to get started and enter a new market. Goods-producing business has bigger barrier to entry because it requires more assets.

6.      List 2 (other) types of barriers to entry and give one example for each type.

Customer loyalty, such as people prefer Nike rather than a new brand that they are not familiar with. Besides, limited license given by the government, such as, Genting Casino.

7.      Why are service businesses becoming more dominant in many countries? Research and discuss (any) 3 reasons.

First, service businesses are generally more labor intensive hence more people can be employed. Secondly the barrier to entry is lower than goods-producing businesses therefore more business owners choose to start out with service businesses. Thirdly, as the standard of living increases, people will have more desires and that is when service businesses are needed.

8.      In which economic condition should a business lower the price of its product and services? Why?

 In a economy recession period a business should lower their prices because during this time a lot of people will be unemployed and it will be hard for the business to sell their products.

9.      Explain what a free market or capitalistic economy means? And a planned economy?

A free market is a system which the business decides the goods and services to sell while the consumers are free to decide what to buy and at what price. A planned economy is an economic system which the government controls all factors of production and produces 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 is a concept about what is right and wrong which can be very subjective. No, everyone doesn’t view ethics in the same way because different people have different ideas and cultures. As an example, it is very rude to spit everywhere in public but it is very common in China.

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?

The difference is sometimes something unethical is legal as long it is allowed by the law and authority. Raping someone is considered both illegal and unethical. Increasing the price of electrical bill a few times higher than it should cost which is approved by the government is legal but unethical. Hit the bullies who tries to bully a small boy is illegal but ethical.

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 is the rise in temperature of Earth due to the emission of greenhouse gases. It causes the melting of artic ice, unstable climate changes, extinction of some species and the rising of sea levels. We should reduce the usage of air conditioner and car pool.

4. What is greenwashing? Explain and provide one example (other than the BP case).

Greenwashing means a business projects a green image without being truly environmental friendly. As an example the General Electric company in the United States.

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?

The behavior they are engaging in is known as pricing collusion and it is unethical and illegal because their actions forced the customers to pay more than the supposed value for the same product since every seller raised their prices.

6. What is dead peasant insurance? How does it work? Is it legal and ethical?

Dead peasant insurance is an insurance where the business profits when the employee died. It is legal but 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 to make gain because they are aware of certain confidential information of the company.Martha Stewart was not financially hurt when the company shares dropped drastically because her friend, Sam Waskal told her a confidential information before it is made public. 

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?

The code alone is insufficient if the business does not enforce it or the top management employees do not follow it. Sabrina can set up ethics program for her managers and employees.

9. If you are running a business, which social responsibility approach would you adopt (obstructionist, proactive, etc.)? Why?

I will adopt proactive social responsibility because without this society I would not be here running a business. Besides I wish for the welfare of the society since it includes the young, the poor and the elders that should be protected.

A)    Assignments

i)                    Assignment 1 presentation: What is Animal Cruelty

http://www.slideshare.net/XingYue0907/what-is-animal-cruelty-2

ii)                  Assignment 2 Business charity drive