Definition of Business, and business objectives, Main Stakeholders in Business
Definition of Business
There are several definitions of business according to experts, namely
- According to Kasmir and Jakfar, business is a business that is carried out whose main objective is profit.
- According to Raymond E Glos quoted by Umar in his book entitled "Business: its nature and environment: An Introduction" quoted by Umar, business is all activities organized by people involved in commerce and industry that provide goods and services for the need to maintain and improve their standards and quality of life
- According to Grififin and Ebert, business is an organization that provides goods or services with the intention of making a profit
- From the above understanding, the authors conclude that business is the activity of an organization in meeting the needs of society by creating goods or services to benefit in improving the quality of life.
Business activity is a process of activity by individuals or groups through the process of creation, exchange of needs with the aim of obtaining financial benefits, especially. Business organization is a system consisting of various subsystems consisting of input, process, and output. Business organizations are also inseparable from a larger system in the form of a developing economic system which directly or indirectly affects business organizations.
In business organizations, there are stakeholders, namely parties who are directly or indirectly related to an organization. Primary stakeholders are parties who are directly influenced by policies or organizational activities. Meanwhile, secondary stakeholders are parties that are not directly affected by organizational activities.
Main Stakeholders In Business
There are several parties who hold an interest in business activities, namely:
1. Owner
- Entrepreneur (entrepreneur) is a person who organizes,manage, and assume the risks faced in starting a business.
- Shareholders (shareholder / stockholder). Share is a certificate of ownership of a company, a shareholder is someone who legally owns one or more shares in the company.
- Parties who provide funds so that operational activities and organizational activities can run smoothly.
2. Manager
People who have the responsibility to run and manage a business organization so that it will achieve the goals planned by the owner of the capital.
3.
Labor
Is the manager of the company's production process to
meet the needs and desires of consumers for quality products.
Suppliers
Providers of raw
materials and deliver them on time for the continuity of the production process
in business activities
Customer
Consumers are users of products produced by business organizations. Consumers are a potential group who will use the products or services offered by business organizations.
Business Purpose
There are several goals
that a business organization usually wants to achieve, namely:
·
Fulfilling the needs and desires of consumers
For example, motorcycle
products for easy and flexible transportation
·
Business profit
All business
organizations want a financial return for the work they do.
·
Continuous growth and development
An example of a business
organization with this goal is PT Perhutani which carries out reforestation and
afforestation for the sustainability of future businesses.
·
Overcoming various risks
Examples of this
business are security services bureaus, insurance agencies
·
Social responsibility
Many businesses are
starting to care about the social environment in addition to pursuing profits.
For example environmentally friendly car products, recycled plastic products.
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