Basic Understanding of Business
Business is an activity to produce something, both goods and services or services.
Business can be carried out by corporate organizations that have legal entities, companies that have
business entities, or individuals who do not have business entities such as street vendors.
An entrepreneur is a person who spends his time and money by taking risks in carrying out business
activities.
Products are goods or services with certain characteristics that provide satisfaction and benefits.
Businesses can be owned by the government or private.
A government-owned business is a business that handles goods or services that are used to meet the
needs of the people or society in a country and for the prosperity of that country. The profits obtained
from this business are used for the progress of the country concerned.
A privately owned business is a type of business entity whose capital is mostly owned by the private
sector. In general, it is done to gain profit and increase the prosperity of the owner.
The important thing in business is the existence of individual, group, or organizational activities.
Business activities that must be carried out in developing products according to Brown and Clow (2008)
1. Identify opportunities for products or services.
2. Evaluate demand for products and services
3. Get funds or working capital.
4. Manage the production of goods or services.
5. Marketing of goods or services.
6. Generate reports to satisfy government requests and improve processes.
A successful business or a healthy business is a business activity that is able to generate profits, both in
the short and long term.
There are 5 indicators of business success.
1. Financial performance includes the profit or profit achieved and the productivity of the business.
2. Customer needs which are indicated by customer awareness of their needs and desires as well
as timeliness.
3. Product and service quality
4. Innovation and activity, in other words, activity can encourage innovation in companies that
carry out these activities.
5. Employee commitment.
The main goal of a business is to serve customer needs and earn profits.
Business is an activity to produce something, both goods and services or services.
Business can be carried out by corporate organizations that have legal entities, companies that have
business entities, or individuals who do not have business entities such as street vendors.
An entrepreneur is a person who spends his time and money by taking risks in carrying out business
activities.
Products are goods or services with certain characteristics that provide satisfaction and benefits.
Businesses can be owned by the government or private.
A government-owned business is a business that handles goods or services that are used to meet the
needs of the people or society in a country and for the prosperity of that country. The profits obtained
from this business are used for the progress of the country concerned.
A privately owned business is a type of business entity whose capital is mostly owned by the private
sector. In general, it is done to gain profit and increase the prosperity of the owner.
The important thing in business is the existence of individual, group, or organizational activities.
Business activities that must be carried out in developing products according to Brown and Clow (2008)
1. Identify opportunities for products or services.
2. Evaluate demand for products and services
3. Get funds or working capital.
4. Manage the production of goods or services.
5. Marketing of goods or services.
6. Generate reports to satisfy government requests and improve processes.
A successful business or a healthy business is a business activity that is able to generate profits, both in
the short and long term.
There are 5 indicators of business success.
1. Financial performance includes the profit or profit achieved and the productivity of the business.
2. Customer needs which are indicated by customer awareness of their needs and desires as well
as timeliness.
3. Product and service quality
4. Innovation and activity, in other words, activity can encourage innovation in companies that
carry out these activities.
5. Employee commitment.
The main goal of a business is to serve customer needs and earn profits.
