Case 1 TYPE OF BUSINESS

Based on AMI’s annual survey of small businesses in Indonesia this study tracks a
broad spectrum of issues pertaining to the adoption and used of information technology
and communications (ICT) solutions. AMI-Partners defines small businesses (SBS) as
companies that have up t 99 employees, are non residential and non-government
organizations, and are not a franchise of a larger corporation.

Products and service covered in this study include established and emerging hardware
,software, and applications and business process solutions. Also include are such, issues
as budgets, behaviors, decision influencers, channel preferences, outsourcing, and
service/support. Further, the study encompasses detailed firmographics, critically
important technology attitudes, and strategic planning priorities.

This is one of a continuing series of reports drawn from AMI’s proprietary surveys of
small and medium businesses worldwide.

A business (also know as enterprise or firm) in an organization designed to provide

goods services, or both to consumers.[1]Businesses are predominant in capitalist
economies, in which most of them are privately owned and formed to earn profit to
increase the wealth of their owners. Businesses may also form not-for-profit or be state-
owned. A business owned by multiple individuals may be referred to as a company,
although that term also has a more precise meaning.

Classifications

There are many types of businesses, and because of this, businesses are classified in
many ways. One of the common focuses on the primary profit-generating activities of a
business: Agriculture, Financial, Manufactures, Real estate, Service businesses,
Transportation, utilities.

Discussion :
What is a business?
Are there any differences between a business and an industry?
How many types of business do you now?
CASE 2 RETAIL DISPLAY

Definition: the display of products which makes them appealing, attractive, accessible,
engaging, and enticing to shoppers in a retail store. Visual merchandising utilizes
displays, color, lighting, smells, sound, digital technology and interactive element to
catch customers’ attention and persuade them to make purchases. Visual merchandising
helps convey the image the brand and reflects the personality of the target markets that
the retail store wants to attract. Also know as: product merchandising, retail display,
merchandising design.

Win customers by using retail display systems that are customer friendly: in other
words, harness the powerful psychology of shopping. People love to shop . in fact, a
great number of people consider shopping a relaxing leisure activity or event their
hobby, with Business Network (BNET) stating that 39 percent people in the United
Stated “love to shop”. So, retailers in general have an eager audience that is ready and
willing to buy it’s products-but, they also have significant competition and so they
must woo and win the attention of their potential customers. One key way to attract and
keep the attention of shoppers is to create an environment that is conducive to shopping-
and one key way to do that is to use compelling, interchangeable store fixtures and retail
display systems to keep your store fresh. Interesting and appealing.

Here are several more important tips ;

1) You can’t use yesterday’s store fixture to capture the attention of today’s shoppers.
An educational site the United Kingdom-BizEd-published an article titled “The
Psychology Of Shopping.” This article reported that retail giants of the 1970s relied
heavily upon the philosophy of “pile it high, sell it cheap” and they found success with
that philosophy. Since then, though, retailers are using increasingly sophisticated ways
to capture the attention of shoppers-which means that you, as a retailer, also need to use
contemporary strategies, which include attractive retail fixture, to keep customers
satisfied.

2) Choose retail displays and fixture that are uniquely suited to your target market.
Here’s a great example of how not to structure your retail space. A blogger at a site for
petite female shoppers was complaining that retailers-meaning those who cater to the
petite-use retail displays that are not within comfortable reach of its customers. Now,
does that make any sense? Of course no. Take a detailed look at your own store. In what
ways are the store fixture retail displays that you’re using not compatible with your
customers needs?

3) Design your space using retail display systems that make it easy for your customers
to keep shopping. The BizEd article also pointed out how successfully some retailers
lay out their stores using retail displays that allow and even encourage a customers to
keep browsing. Nothing blocks the customers from this path. So, again, take a look at
your own store. What store fixture or other items make it difficult for your customers to
continue to navigate through all of your products? Remember, too, that an average
person’s field of vision tends to be around 170 degrees. Keep that in mind as you design
your retail space.

Finally, here is a fun quote from a 1924 publication about the psychology of clothes-
and, really it also relates to the way you lay out your retail displays! According to this
publication, “dress has a tremendous influence upon individuals, upon both the wearer
and the beholder. The consciousness of being becomingly and fittingly dressed for the
occasion, whatever that occasion may be, strengthens and insures one’s self- confidence
tremendously, give poise and self-command, encourages the brain to forget forward,
emboldens the timid tongue, and quickens one’s wits along the avenue of
resourcefulness, inventiveness, graceful speech, and tact. In fact all one’s faculties and
inspired by theconsciouness of being properly attired

Yes, dress does have a tremendous psychological impact on the people wearing them –
and the way in which you arrange your retail fixtures have a tremendous psychological
impact upon the customers who walk inside your front door. Make your retail space a
friendly welcoming place through the strategic use of contemporary compelling store
fixtures today

Discussion:
What is retail display?
Are there any tips that can implemented in making a good restil display?
Does dres have psychological impact on the people wearing wearing them in Minishop?
CASE 3 COUNTER SERVICE

Regulating UK Supermarkets: an Oral-History Perspective

Counter service, where goods are out of reach of buyers and must be obtained from the
seller. This type of retail is common for small expensive items (e.g. jewelery) and
controlled items like medicine and liquor. It was common before the 1900s in the
United States and is more common in certain countries.

Counters should be constructed so that everyone visiting a building can use them. Good
design can achieve a functional result and be pleasing to look at in an architectural
context. Good design means the provisions for people with disabilities do not appear to
have been added on as an afterthought. This is a standard of employed for counter
service:

1. Courtesy, respect, honesty and professionalism.

2. That the staff person will listen to their request/question. Ask for clarification if
necessary, inquiry.
3. The staff person will make a reasonable effort to provide information about the
city and, as appropriate, other outside agencies related to their
departement’s/division’s function. Policy makers and interest groups
considering the issue of regulation of supermarkets could benefit from
exploring the history of the coming of self service and the supermarkets post-
war Britain.

The early findings of the AHRC Reconstructing Consumer Landscape Project show
costumers’ reactions to change in the nature of food shopping in this period. Retail
change in late-twentieth-century Britain was complex: high streets in 1955 offered a
varied mix of independent shops, multiple retailersan co-operative stores. It included
counter-service shops, fully self-service stores and hybrid formats. The supermarket and
superstore formats we know today and self sevice became gradually established over a
long period of time. Some may matter less than has been previously assumed. Shoppers
remembered experiencing of the benefits of counter service and not only in independent
stores, but in multiples such ad Lipton’s and the co-operative stores. Historically ,
costumers from different class, gender and, it would seem housewives, for example,
might favor the speed and convenience of the supermarkets. There was then, as now,
the need for a range of goods and services responding to the diversity of the community
itself. Past shopping was viewed by some as a social occasion, and is testament to the
long history of the small shop’s important role in the community. But some consumers
remembered that multiple shops could also be pivotal. Multple shops may therefore
have the potential to play a greater role in local communities through the careful of
management of service within the shop.

Discussion:

What are the standards of a good counter?

What are the qualifications of a good employee for counter service?
What are the psycological impacts of counter service?
Case 4 CASH REGISTER
Cash registers have come a long way since James Ritty built the first one in 187. His
invention was simply a register and nothing else the keys moved hands on a clocklike
dial to indicate the amount of sale. Now the modern machines do practically everything
but tie up the package.

Some of the bigger models used in departement stores have six cash drawers, a separate
one for each of six clerks. Dials tell the manager how much cach clerk has sold and how
many sales he has made. Other dials keep track of payments made on credit accounts
and petty cash paid out. The National Cash Register Co.’s model shown inthe
potograph’s, a standard one used in many kinds of businesses has one cash drawer and
dials that count sales and total amounts. It prints a sales record, gives a receipt, and
stamps the sales slip.

A cash register is like a big gigantic calculator, it either has big button push in buttons
or it has touch buttons, you touch or push in the right numbers and there is big button
usually on the right where yo add the numbers together, like a total, you have to
totalevery number. The cash drawer pops out of bottom this where the cash anf cheeks
go.

Electronic Cash Register

An electronic cash register operates i a simple and straight forward manner. An
employee will scan an item with a bar cone scanner, which will enable the register to
display the current price of item. The cashier will then input the payment method and
payment amount that the customer has provided, and do the apropriate calculation to
determine how much, if any, change is necessary. A reccipt is then printed for the
customer, and when the transaction is officially complete, the item or items purchased
are keyed out of the store’s inventory records simultancously, enabling the store to keep
its inventory counts accurate.

A record of every transaction on any particular register is kept by the machine and
printed out at the end of every business day, si cash drawers can be counted to ensure
the appropriated amount of money is included.
Mechanical Cash Register
A mechanical cash register operates in much the same ways as an electronic cash
register, with a few differences. A sales clerk rings u the item as normal. Only now he
must physically key in the price by hand, as well as the amount of money the customer
is paying with. The register then does the calculation and the cash drawers is opened for
the giving of change. The register not, however, connected to a store’s inventory. This
means that when a sale takes place, at some point a store worker is going to have to
physically key item out of inventory or else the store counts will be incorrect.
Mechanical cash registers also do not allow you to do things like check current prices or
sales.

Discussion:
What is cash register?
How do you operate a cash register?
What are the functions of cash register in a retail business?
CASE: 5 STOCKTAKING

Stocktaking is required so as to get an accurate valuation of stock in your business at a

particular time of the month or year. This valuation is then used to generate gross profit
reports for your business. You will then be able to see if your business is performing to
expected profit margins. Stocktaking.ie is a company based in Galway and have a
Dublin team who can conduct stocktakers for all sizes of shops, supermarkets and all
retail premises.

Stocktaking is a fundamental partof running a succsessful business. By accurately

stocktaking you are monitoring your: Profit margins, Waste, Piferage. By not
stocktaking, you will be ignoring potential losses that can be occuring every day in your
business. Stocktaking highlights individual individual beverage stocktakes, wastage and
stock losses in the kitchen and stock stock loss values in retail outlets. If you have never
had an independent stocktake in your business, we recommend you commission a
number of stocktakes over a three month period to understand if there are problem in
your business. If the results yield no disrepancies you will have a peace of mind,
however if disrepancies are identified, then Stocktaking.ie will de able to reccomend a
suitable course of action to eiminate stock loss.

For retail business we provide a stock counting service. This reduces the need to
conduct the stocktake in-house. While stocktaking constitutes the bulk of our business,
we regularly provide ancillary services as a result of the findings of stocktake. There are
mailnly geared hospitality business and focus on: Loss preverention, Gross profit
analysis, Menu Engineering, Cost control audits. We conduct stocktakes in-house and
are happy with the results.

There are 3 reason why you should consider an external company. Any person who has
a hand in ordering or serving the stock should not be involved in a stocktake as there is
always the risk that stock quantities could be incread or manipulated on paper to
account for breakages or theft that may occur during the period. An independent
stocktaking business will report the findings “as is”. It saves you time and money.
Organising staff, additional scanner, changing rotas, training staff how to use scanners,
management and staf overtime, rechecking reports, collacting the stocktake results.
Since launcing in 2004, Stocktaking.ie has built a solid reputation as a discreet,
professional provider of stocktaking services and accurate reports. Your confidential
business information will always remain exacly that. Confidential. All out data and
customer data is backed up on an off-site server which is operated by
ProtectYourData.com where all data is encrypted and is only retrieved by
Stocktaking.ie management team.

Retail Business’s four times per year Hospitality businesses, once a week for four
weeks and then once per month thereafter. Several business do not want a stocktake on
a regular basis. The main reason for this is mainly due to the cost of the stocktakes.
Compare the cost of not having a stocktake with the cost of a drop of a few percentage
points in your profit margin over the course of the year. By knowing what your profit
margin is on a regular basis you have the information to know of you are performing in
accordance with your expetations. For expample, if you are expecting a retail gross
profit margin of 28% ant at the end of the year it comes in at 27% due to excessive
wastage, pilferage and loss making product lines. Knowing this at the end of the year is
too late to make adjustment to rectify ant changes required. With regular stocktakes,
you can monitor your margins and assess performance. On a turnover of €3milion that’s
a loss of €30k. Think of the wages that could be paid with that!

Discussion:
What is stocktaking?
Who are stocktaking.ie?
Why do i need to stocktake?
Do you only provide stocktaking services?
Why would we need to use an external company?
How can i be assured that my sensitive business information will remain confidential?
What do stocktaking.ie charge for their services?
How often should i have a stocktake?
CASE 6 Marketing

Never Forget That You Are Your Brand

Marketing is the process by which companies create interest in products or services. It

generates the strategy that underlies sales techniques, business communication, and
business development. It is an integrated process through which companies build strong
customer relationships and create value for their customers and for themselves.

Marketing is used to identify the customer,to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be conclude that
marketing management is one of the major components of business management.

The marketing mix principles (also know as the 4p) are used by business as tools to
assist them in pursuing their objectives. The marketing mix principles are controllable
variables, which have to be carefully managed and must meet the needs if the defined
target groups. The marketing mix is apart of the organiztions planning process and
consist of analyzing the defined:

1. How will you design, package and add value to the product? Product strategies.
2. What pricing strategies is appropriate to use? Price strategies.
3. Where will the firm locate? Place strategies.
4. How will the firm promote its product? Promotion strategies.

D’alessandro first experienced the power of brand as a child in utica, New York, when
he helped protect the family delicatesen’s reputation with a rather unusual skill: licking
meat. When he was six, his family discovered that he had inherited his grandmother’s
ability to determine if meat was going bad by licking it. “My tongue tingled,” he says.
So, much to the chagrin of the owners, his dad would bring him and his tingling tongue
to the slaughterhouse when it was time to buy meat. “The owners hated me. They didn’t
want to give bad meat to a supermarket because they were afraid thet they’d lose those
huge orders. But they didn’t care about us,” he says.

Once he’d given the goods thumbs-up, his dad would stamp the D’Alessandro name
onto the flank to make sure that the meat David had approved was what the delicatessen
actually got – and that the meat sold under the D’Alessandro name was of good quality.
If you manage to create a great brand, says D’Alessandro, the last thing to do is relax.
The pressure to sell a product that protects and enhances brand reputation has only
begun. The worst thing is to become arrogant and removed from your customers.

One of the most biting stories in the book concerns D’Alessandro’s experiences
working at Citibank, where people started pushing products because those products
were from Citibank, not because customers needed or wanted them

Discussion :
1. What are functions of marketing mix?
2. How to keep good relationship with the customer?
3. How to create great brand in customer seen?
CASE 7 BUSINESS TRANSACTION

A Business Transaction is realized as Business Document Flows between Requesting

and Responding parties performing roles. A Business Transaction is a spesialized
protocol used to achieve and support enforceable transaction sematics and state
alignment between collaborating parties. The patterns listed in the technical
spesification provide sematic guidance, and options for Business Transaction. One or
more Business Signals can be exchanged as part of Business Transaction to ensure state
alignment of the respective parties.

A good recordkeeping system includes a summary of your business transactions.

Business transaction are ordinarily summarized in books called journals and ledgers.
You can buy them at your local stationery or office supply store.

A journal is a book where you record cach business transaction shown on your
supporting documents. You may have to keep separate journals for transactions that
occur frequently.a ledger is a book that contains the totals from all of your journals. It is
organized in to different accounts.

The health of every business depends on a series of transactions. These business

transactions, such as processing an order, booking a hotel reservation, or deliering
content to online subscribers, usually directly an indirectly invlove customers or
partners and flow throughout organization in a complex dance of aplication and human
interaction. Making matters more complicated, business-critical transactions typically
rely on distributed, inteconnected applications that can span systems, databases and
middleware from multiple vendors: often reside in different locations: and may be
owned by deifferent groups An issue with a single stepin such a progress-such as a
delayed or dropped order-means a revenue opportunity is lost, productivity decreases,
or a customer commitment, such as a service-level agreement (SI,A), isn’t met.

Simple visibility is not enough to guarantee business transaction run smoothly and
efficiently as they interact with system distributed across your IT environment. I low do
you ensure the success of every business transaction?

Progress® Actional® is a proven business transaction assurance solution that will

quickly identify, resolve, and even prevent lost, stalled, or invalid transaction from
occuring. Actional will also pinpont the exact business process step, system, servce, or
operation taht is causing a particular issue so that immediate action can be taken. In
addition. Actional has a low total cost of ownership (TCO), and won’t impose high cost
or a heavy resource burden on the IT infrastructure.

Discussion :
1. What is business transaction?
2. How do you record the proof/evident of business transactions?
3. Explain the steps of business transaction!
CASE 8 FINANCIAL REPORT
A financial statement (or financial report) is a formal record of the financial activities of
a business, person, or other entity. In British English including United Kingdom
company law- a financial statement is often referred to as an account, although the term
financial statement is also used, perticularly by accountants.

“The objective of financial statement is to provide information about the financial

position, performance and changes in financial position of an enterprise that is useful to
a wide range of users in making economic decisions.” Financial statements should be
understandable, relevant, reliable and comparable. Reported assests, liabilities, equity,
income and expenses are directly related to an organiation’s financial position.

Financial statements are intended to be understandable by readers who have “a

reasonable knowledge of business and economic activities and accounting and whi are
willing to study the information diligently.” Financial statements may be used by users
for defferent purposes:
1. Owners and managers require financial statements to make important business
decisions that affect its continued operations. Financial analysis is then
performed on these statements to provide management with a more detailed
understanding of figures. These statements are also used as part of
management’s annual report to th stockholders.
2. Employees also need these reports in makinf collective bargaining agreements
(CBA) with the management, in the case of labor unions or for individuals in
discussing their compensation, promotion and rankings.
3. Prospective investors make use of financial statements to asses the viability of
investing in a business. Financial analyses are often used by investors and are
prepared by professionals (financial analysis), thus providing them with the
basis for making investment decisions.
4. Financial institutions (banks and other lending companies) use them to decide
whether to grant a company with fresh working capital or extend debt securities
(such as a long-term bank loan or debentures) to finance expansion and other
significant expenditures.
 5. Government entities (tax authorities) need financial statements to ascertain the
propriety and accuracy of taxes and other duties declared and paid by a
company.
6. Vendors who exted credit to a business require financial statements to asses the
creditwortiness of the business.
7. Media and the general public are also interested in financial statements for a
variety of reasons.

Although inventory report and cash flow report are seen independent reports to some
extent, they are however interwoven. The perception of mosy SAP Business One users
is that the cash flow report is a product of just “current cash transactions”. Yea, to some
extent this assertion is true; however, there is another leg to it.

The cash flow report gives the balances of cash accounts and accounts that are subject
to cash flow in the future. Inventory (Stock) itself can be perceived as money that is tied
down because asset increases when stock os procured. The purchased stock can be raw
materials for a finished good(s) that will yield revenue in the future. At production
stage, it is classified as work-in-progress (WIP). A number of journal entries are created
during the production process in SAP Business One. When component are issued for
production, the WIP account is debited and the from production is created. The stock
account of the product is debited by the actual value of the finished product and the
WIP account is credited. In case variance occurs, the system debits the WIP account
with negative value and credits the WIP variance account.

From the foregoing, it can be deduced that the stock value increases by the cost of
production tied to the production process. On receipt from production, it becomes a
sales item that is expected to generate revenue. Inventory is also update accordingly.
However, the costs incurred during production represnt payables. These payables need
to be settled somehow, hence the need for cash flow report. Which is a critical analysis
of”money – in and money – out”.

The Chief Financial Officer (CFO) is not interested in high inventory (over stocking)
based on the premise that it is “money tied down”. Keeping high inventory is not cost
effective. This is because additional cost (such as carrying costs) are incurred especially
while these stocks lastin the warehouse. This is not to say that inventory should be kept
so low as not to meet demands or orders.
Altough, teh amountof inventory to be kept at any point in time is ambigous, the
inventory turn ratio is a metric for determining inventory usage. Inventory usage is
calculated as a roatio of the annual cost of goods sold to te average inventory.

Actual or potential joint venture partners, franchisors or franchees, and other business
interest who need to know about the company and its financial situation. This brief list
shows how many people and institutions use financial statement for a large variety of
business purposes and suggest how essential the ability to understand and analyze
financial statements is to success in the business world.

Discussions:
What is financial report?
What is the financial report for?
What is Balance Sheet?
What is Income Statement?
What is Capital Statement?