What is Contemporary Business

Business is the business of selling goods or services done by individuals, groups of people or organizations to consumers (the public) with the main purpose is to gain profit / profit (profit). Basically, we do business is to earn profit or profit (profit). Contemporary is a sense of the present, modern or more precisely is something similar to the conditions of the same time or today. In that sense can be concluded that contemporary business is a business selling goods or services made by individuals or groups of people to consumers to earn profits tailored to current developments or needs.

As a human being, we want to get a decent job, get satisfaction from work and want to get challenge and hope for the future. Such opportunities are provided by the business Without limit, reserved for energetic and courageous youngsters. Businesses provide jobs from various levels and fields. Want to be a worker, or a director, want in the field of engineering or trade and many other opportunities.

The business world is very responsive to the shortage of goods in the market to meet human needs throughout the ages and this activity will not stop, and challenge the flow. The business world is growing and growing rapidly, so now in the market are found millions of goods and services are generated and require tens of millions of young workers.

Right now the job field is no longer directed to the government, so the civil servants will but the youngsters begin to direct their eyes to the business world, because the field is in accordance with the spirit of youth, who always want to get a challenge, to try his ability. The characteristics of contemporary business / modern business are:

Specialization

business activities now tend to be specializing. There is a move in the field of production of certain goods, there is a move in the field of goods sales. Similarly, in the division of labor, specialization of office.

Interdependence

because a business is only engaged in a certain field, then a company’s activities depend on other companies. And vice versa, then there is interdependence with each other.

Mass production

the resulting goods tend to be large and continuous in various sizes, making it easy for consumers to choose. With the mass production, will bring benefits for the company, can expand its business, new energy can be recruited, wages can be increased, the selling price can be suppressed.

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Variable marketing strategy

In conducting marketing activities, the company must have a strategy before doing the marketing activities. Marketing strategy consists of a variety of strategies that may differ from one company to another. But the purpose of all the same is to increase sales and generate maximum profit. Variable marketing strategy

No market discrimination

This type of marketing strategy, the company does not discriminate consumers based on a specific criterion, so the company meets the needs of consumers in general without discriminating.

This marketing strategy aims to make the sale of products in bulk. The company focuses its attention on all the needs of its consumers. The advantage for companies in using this marketing strategy is the company can streamline costs and weaknesses is the company will experience fierce competition with from other companies that use marketing strategies like this also.

Differentiating markets or differentiated marketing

This marketing strategy, the company classifies consumers based on a certain criterion, so the company will produce and market different and differentiated products for each classified consumer group (market segment) based on the needs and wants of each consumer group.

This marketing strategy aims to increase the confidence of consumer groups that have been grouped on products that have been produced and marketed. With the use of this marketing strategy, the company hopes to be able to increase its sales in the form of consumer groups (market segments) and the weakness of this marketing strategy is that the company has the potential to incur higher costs due to producing varied products in different consumer groups.

Concentrated market or concentrated marketing

Marketing strategy like this, the company focuses its product marketing in several consumer groups by considering the limited resources of the company, so the company focuses its products specifically in accordance with the needs and wants of the focused consumer groups.

Marketing strategy such as this aims so that companies can focus on producing a product to consumers that have been focused so that companies can maximize the product. The advantage of using this marketing strategy is the possibility that the company can get a strong position on the consumer group that has been focused because the company has been focusing its products maximally and the weakness of this marketing strategy is that the company will be faced with great risks if it only depends on certain consumer groups. May be useful.

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Management Techniques in Contemporary Business

In the context of corporate business, the application of business ethics is confronted with issues that include; Processes, people and technology. At the level of the process, business ethics deals with classical issues such as cash flow, personal network, quality, competition, and endurance. In people, business ethics is faced with insufficient quality of human Resources entrepreneur motivation and willingness to succeed quickly.

Similarly in technology, business ethics is confronted with technology, which requires fast-paced and total efficiency in the work system to achieve a purpose in business. Managers use the following techniques to implement the company’s strategy for achieving success in the company in contemporary business. The techniques are:

Benchmarking

The process by which the company identifies critical success factors, learns about best practices undertaken by other companies to find these critical success factors and then makes improvements in the company’s process to achieve even better performance with its competitors .

Total Quality Management

Total Quality Management is a technique in which management develops policies and practices to ensure that the company’s products and services meet customer expectations. This approach involves enhancing product functionality, reliability, robustness, and improved product improvements.

Continous Improvement

Continuous Improvement is a management technique in which managers and workers are committed to continuous improvement programs in terms of quality and success factors.

Activity-Based Costing and Activity-Based Management

Many companies can improve the planning, product costing, operational controls and management controls by using activity analysis to develop a detailed picture of the specific activities undertaken in the company’s operations.

Reengineering

Reengineering is a process for creating a competitive advantage in which companies reorganize organizational and management functions, often resulting in modified, combined or eliminated orders or jobs.

  1. Theory of Constraints

The Theory of Constraint is a strategic technique to help companies to convert materials into products effectively improve facto success. The main concept in Theory of Constraint is throughput, which is the company’s ability to generate cash through sales or equal to sales minus the materials needed in a product sold . The through put can be fixed directly by increasing the speed of the processed product until it is sold.

Bulk Customization

Bulk customization is a management technique in which marketing and production processes are designed in such a way that it can handle the increasing variations that arise from delivering order and service products to customers.

Target Costing Calculation

Target Costing is a management technique that determines the expected cost for a product based on a competitive price, so that the product will be able to earn the expected profit. So the cost is determined by the price.

Life Cycle Costing Life Cycle Costing

Management techniques used to identify and monitor product costs during the product life cycle. The product life cycle includes stages: Research and development, Product design including prototype and testing, Production / manufacture, inspection, packing and warehousing, Marketing, promotion and distribution, and Sales and service.

Just In time system

Comprehensive Production and Supply Management systems where purchasing or processing of raw materials and other parts are only made when needed and appropriate at the time of use at every stage of the production process.

The Balanced Scorecard

To emphasize the importance of using information, both financial and non-financial, it is now often accounting to report company performance based on success factors in four dimensions:…