ANALYSIS OF RISK INFLUENCE TO BUSINESS DEVELOPMENT Case Study : Cellular Phone and Accessory Retail Business in Bandung

• Main Author: Nurjaman (NIM 234 03 047), Risris
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/9106
• Institution: Institut Teknologi Bandung

Abstract : <br /> <br /> <br /> A business cannot be free of business risks. Just like other businesses, cellular phone and accessory retail business has business risks too. A risk is a condition that can cause losses to companies. As long as this risk isnt managed well, it can continuingly burden the company. Risk management is needed in order to avoid companies from losses. Of course, this kind of management can be done if the business risk can be identified first and the description of the many kinds of risks that can influence business development can be got. This research is done in order to find out what risks which influence the development of cellular phone and accessory business development most. <br /> <br /> <br /> Business risks consist of three kinds which are social risks, physical risks, and economic risks. The types of the risks are many. Those kinds of risks can be evaluated one by one so as to determine the same understanding in description and kinds of risks which are often faced. Business risk elements which are most often faced by retail cellular phone and accessories companies are consumer satisfaction risk, buying decision, companies warranties, sociopolitical environments, demographic and cultural environments, suppliers, competitors, public relations, employees welfare, working relations, work methods, companies financial resources, financial planning, financial transactions, technology choices, information systems, physical dangers, moral dangers, marketing mixes, product qualities, prices, and inflation. <br /> <br /> <br /> Those business risks that often happen can influence business development. Successful business developments that can be successfully identified are progressive, stagnant, or retrogressive conditions. Businessmen can determine that risk influences which occur in the last six months. The magnitude of the risk which occurs is not necessarily the same among the companies. The rate of risk influence can be used to compare whether one company is in a progressive, stagnant, or retrogressive condition. The comparisons are done with discriminant analyses. Discriminant analyses are multivariate statistical analyses which are done in order to differentiate respondents into categories (groups). <br /> <br /> <br /> Risks which are identified as business risks often happening consists of 60 items. After reliability and validity tests are done, only 34 of them are deemed valid and reliable. The discriminant analyses are done with the method of multiple discriminant. This method is used because groups which are going to be differentiated consist of 3 groups, which are companies in progressive, stagnant, or retrogressive conditions. After the discriminant analysis is done, the constants of the discriminant functions are got. Discrimininant function would be used of 2 functions, because both functions could be grouping the object very strong. <br /> <br /> <br /> The business risk that influences the downturn of business development most is the risk which has negative values for the two functions. The risk is that goods which are sold cannot be easily operated, political situations which are not stable, national currency depreciation against foreign ones, buying decisions based on kinds of goods, building conditions which are not well maintained, the inharmonic relation with the society, the system used in salary giving which are not clear, unavailability of product information, and hostility in serving customers. <br />