CRITICAL BOOK REVIEW

COURSE – ENGLISH BUSINESS

SUPPORTING LECTURER :

CHOMS GARY GANDA TUA, SE., M.Si., Ak., CA

CREATED BY :

RIADUL ZANNAH SITUMORANG

(7211220012)

S1 ACCOUNTING STUDY PROGRAM

FACULTY OF ECONOMICS

STATE UNIVERSITY OF MEDAN

2021

1
 PREFACE

Praise be to the presence of God Almighty for all the abundance of His
Blessings and Gifts to the author, so that the author can complete this Critical Book
Study paper. The author has tried his best and of course with the help of various
parties, so as to facilitate the making of this paper. For this reason, the author does not
forget to say many thanks to all those who have helped the author in making this
paper.

However, it cannot be separated from all of that, the author is fully aware that
there are deficiencies both in terms of language preparation and other aspects.
Therefore, with open chest and open arms, the author is open as wide as possible for
readers who want to provide suggestions and criticism to the author so that the
author can improve this Critical Book Review paper.

Finally, the author hopes that the readers of this paper can take lessons and benefits
from this paper so that it can provide inspiration to readers.

Medan, 03 September 2021

Riadul Zannah Situmorang

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 TABLE OF CONTENT

COVER.............................................................................................................................1

PREFACE........................................................................................................................2

TABLE OF CONTENT..................................................................................................3

CHAPTER I : INTRODUCTION.................................................................................4

1.1 Rationalization of the Importance of CBR.............................................................4

1.2 Purpose of CBR......................................................................................................4

1.3 Benefits of CBR.....................................................................................................4

1.4 Book Identity.........................................................................................................5

CHAPTER II : BOOK SUMMARY OF EACH CHAPTER .....................................6

2.1 Book Summary......................................................................................................6

CHAPTER III : DISCUSSION.......................................................................................27

3.2 Strengths and Weaknesses of Books...................................................................27

CHAPTER IV: CLOSING.............................................................................................28

4.1 Conclussion..........................................................................................................28

4.2 Suggest.................................................................................................................28

REFERENCES.................................................................................................................29

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 CHAPTER I

INTRODUCTION

NO 1.1 Rationalization of the 1.2 Purpose of CBR 1.3 Benefits of

. Importance of CBR CBR

1. - Task - Can fulfill

completion: important
critical book Book
review Review
comparing Tasks
several books
which we will
read.

2. - Add: - Can increase

knowledge and knowledge
insight about about
the book to be business
criticized. english

3. - Improve: the - Know how

accuracy and to
comprehension communicat
of the books we e well in
critize with business
how to examine - To
the contents of understand
the book and the contents
then summarize of the book
the discussion that is
of the book. criticized.

4
4. - Strengthen: - To
potential or understand
expertise in the contents
critizing the of the book
contents of a that is
book we read criticized.
and compare it
with other
books.

1.4 Book Identity

- Book title : Business Studies

- Author : Medi Houghton
- Publisher : Replika Press
- Publication year : 2013
- Publishing city : India
- Book thickness : 295
- ISBN : 978-1-107-66162-2

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 CHAPTER II

BOOK SUMMARY OF EACH CHAPTER

2.1 Book Summary

SECTION 1: BUSINESS AND THE ENVIRONMENT IN WHICH IT OPERATES

DESCRIPTI 1.1 business 1.2 the 1.3 1.4 economic

ON activity organisation changing environment
business
environmen
t

CONTENTS A business Most businesses Government The main

produces goods and have the same main s have a differences
services because objectives. range of between a
everyone has needs 1. Making a ways to mixed and
and wants that they profit influance market
would like to 2. Survival/ business economy
satisfy. break even decisions  An
Needs are things 3. Increasing locally, economy
that we must have sales natonally is a
in order to survive revenue and collection
such as shelter, 4. Increasing international of people
clothing and food. market share ly. Measures and
Wants are things 5. Growth include: organisati
that we would like - Laws and ons that
to have to make our regulation work
lives more s together
enjoyable. Business activity to produce
- Financial
The difference is – can have a impact support goods and
we cannot live on a lot of people such as services to
without meeting both inside and grants meet
our needs, where as outside the business. and people’s
A stakeholder is any

6
we can live whitout group of individuals subsidies needs.
our wants. who have an interest - Training  All
A business is any in the activities of a and economic
organisation (or business. education systems
group of people) Different schemes try to
that makes goods or stakeholders will try - Tariffs solve
provides services. to influance what a and three
They exist to business does, based quotas basic
provide the goods on their own questions
and services that interests and The impact – what to
people need or objectives. of produce,
want. technologic how to
The main reason al change produce
why people start a on business and for
business is to make Technology whom to
a profit by can have an produce.
providing the goods impact on all  Each main
and services people areas of difference
are willing to pay abusiness. between
for. But this is not You need to the
the only reason to be able to different
start a business. explain types of
possible system is
The four factors of effects of the
production: new amount of
 Land – technology governme
includes all in terms of nt (state)
resources that cost, control.
occour naturally workers, the  Other
; example, oil, method of economic
fish, minerals as production system
well as the used as well also exist
space used for as based on

7
 production. marketing. sustainabi
Note this also lity.
covers the sea. Below are
 Labour – this just some of The
is the physical the issues to problems of
effort of the think about. entering new
workers and the markets
manpower used. Production abroad
 Capital – refers Break down Trading

to all items used in overseas is

in the technology not the same
production of has an as trading in

goods and adverse domestic

services; impact on (home)

example, business. markets.

buildings, There is a There are
machinery as need to other issues
well as money continually that a
to buy them. update and business

 Enterprise – maintain it. needs to

refers to the Distribution consider such

people who Just-in-time as the

organise the techniques following.
other factors of are possible - Lack of
production. reducing the knowled
They are the levels of ge of
risk takers who stock local
inverst their necessary. markets
time, skill and But the – cutoms,
money to suppliers traditions
ensure hat the will have to , different
goods and adjust to the laws and
services are system. trading

8
 available for practices.
people. Finance - Lack of
Possible cost contacts
savings from – where
better are best
productivity locations
and lower which
Business are
unit costs products
grouped into 3
can lead to to sell,
main types of
lower costs how to
activity (sectors):
and possible market
(i) Primary
rise in the
sector: the
profits in the product.
sector of the
long term. - National
economy
cultures
which Human and
extracts or resources tastes
produces Electronic differ –
raw clocking on other
materials systems countries
out of which allow for may not
finished easier like your
products are monitoring products.
made. of workers’ - Addition
(i) Secondary hours so al costs
sector: the more of
sector accurate trading
which takes payment is overseas
raw possible. –
materials
transport,
and turns Marketing
labelling,
them into Increased
promotio
finished competition

9
 goods. as more nal costs.
(ii) Tertiary businesses - Languag
sector: the can sell to e
sector of the problem
industry that customers. s – is
provides their a
services to Administrat common
businesses ion language
and Use of new or does
individuals. methods of the
communicati business
The main reasons on helps to have
why business want improve people
to grow are as accuracy and who can
following: speed of translate
- Economies of communicati for them.
scale ons both - Govern
- Diversification/ inside and ment
spread risk outside the rules and
- Financial reason company. regulatio
- Personal ns
objectives The impact - Reaction
of internet
- Market of
and e-
domination competit
commerce
- Acces new ors in
on business
markets overseas
E – markets
When business commerce is – other
activity has an the buying businesse
impact on others and selling s are
outside the of goods an likely to
business, the effects services on- react to
are called line. threat of

10
 externalities. The E – competiti
effect can be good commerce is on to try
(social benefit) or growing to protect
bad (social cost). which their
When a business creates sales
makes a decision, a opportunities
business will focus and threats
on the costs and for both
benefits to itself businesses
(internal costs). The and
monetary value of consumers.
these costs is called
financial costs. Any
money gained from
the decision fr the
business is called a
financial benefit.

SECTION 2: BUSINESS STRUCTURE, ORGANISATION AND CONTROL

DESCRIPTION 2.1 ownership and internal organisation 2.2 financing bisiness

activity

CONTENTS The role of an enterpreneur The reasons why

An enterpreneur is someone who has the businesses need finance
skill and risk taking ability to bring  New business needs
together the four factors of production to finance to pay the
make goods or services. start-ip costs.
Enterpreneurs:  New business also
- Combine resources needs finance to
- Identify business opportunities operate i.e., to buy

11
- Take risks materials before it
- Make decisions receives any money
from customers for
A sole trader is the most common from of sales.
business. Most small businesses are sole  All businesses need
traders. money to cover day-
One person owns and controls the businness. to-day running costs
They can employ others, but the owner has which is called
sole responsibility for the business. working capital.
For example, carpenter, hairdresser, local  Some customers will
stall owner etc. not pay for goods
immediately and this
A partnership occurs when two or more can lead to cash flow
people decide to run a business together. problems for the
Partners will have an equal say in how the business as other
business is run in return for an equal (or costs still need to be.
agreed) share of the profits.  Businesses could
For example, dovtors, accountants etc. need finance to
expand or replace old
A private limited company is a limited capital. This is called
business whose shares cannot be sold to the capital expenditure.
general public.
- Private refers to the fact that shares can The sources of internal
only be sold if all shareholders agree. and external finance
- Shares tend to be owned by family and Internal sources of
friends. finance
It refers to the money
from whitin the business
itself.
- Retained
profits/reserves.
- Sell fixed assets.
The main futures of franchises
- Owners capital.

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Franchise is an agreement that allows one - Manage working
business (franchisee) to trade under the capital.
name of another business (franchisor) to sell
the other company products or services.

Choosing a suitable from of business External sources of

organisation finance
 Ownership It refers to money from
 Control sources outside the
 Sources of funds business.
 Size - Borrow from
 Objectives friends/family.
 Size of market - Bank overdraft.
- Bank
For businesses it means the following: loans/mortgage.
1. Increasing sales
2. Maximise profits
3. Improve customer services
4. Cost cutting
5. Increase efficiency
6. Appeal to global market

The main features of an organisation

chart
An organisational chart simply shows the
internal structure of a company and how
authority and management roles are shared
out.

By function
Possibility of conflict as departements do
not always wor together.

13
By product
Can be expensive as each division has many
similar functions.

By region
Common way for for multinational to be
organised.

The importance of communication in

business
Communication is simply a method of
sending message from one person (sender)
to another person or group (receiver).
Purposes of communication are:
1. To pass and receive messages
2. Give instructions
3. Check and receive feedback
4. Method to discuss issues

Types of communication
1. Vertical
2. Downwards
3. Upwards
4. Formal
5. Informal

Internal communication refres to all

communications that take place whotin an
organisation.
External communication refres to all
communication that takes place whit people
outside the organisation.

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Communication has four parts
- Message
- Sender
- Receiver
- Feedback

For communication to be effective, the

receiver has to receive and understand the
message sent.
If any part of the process breaks down, this
barrier will stoop the message from getting
through as intended. The communication
will be ineffective.

Problems can arise at any of the

communication process.
- Sender : wrong message sent,
speaking too quickly
- The message itself : too much
information, inappropriate language
used
- The method of communication
used : technical problems
- The receiver : not listening or
receives unclear message

Communication can be either one way or

two way.
One way: person receiving message
cannot reply to it.

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SECTION 3: BUSINESS ACTIVITY TO ACHIEVE OBJECTIVES

DESCRIPTI 3.1 marketing 3.2 production 3.3 financial

ON (operations information and
management) decision making

CONTENTS Marketing is all about Production is the The importance of

‘anticipating, process of converting cash
identifying and raw materials into Cash is a liquid asset.
satisfying costumer finished goods. This is It can be ussed
needs – at a profit’. It done by combining straightaway to buy
is more than just together the four factors stock or to pay debts.
advertising and of production – land, Cash flow is the flow
promotion. labour, capital and of all money in and
enterpise. out the business.
It involves the
following. Product can be either
- Market of the below Problems caused by
research Capital Labour poor cash flow
- Product intensive intensive Poor cash flow

- Pricing means there is not

When When enough cash to pay
- Place
productio productio day to day expenses.
- Promotion
n uses n uses a - Suppliers
If a business gets all
high high could stop
these elements right,
proportion proportio supplying
they should sell their
of capital n of materials to
products and
(machiner labour to make goods
hopefully make a
y) to make or discounts.
profit.
makes goods. - Unpaid
goods. workers could
Market research
involves finding out become de-
The different motivated.
the needs of

16
customers before classification of costs - Lenders
developing a product. - All resources might want
Benefits of market cost money, higher interest
research includes the from rent and rates on loans
following. materials to as business is
 Ability to obtain printing posters seen as more
detailed - Businesses need risky.
information about to work out how
a market. much it costs to The reason why
 Ability to identify produce all their profit matters to
needs of current goods. This is businesses
and potential called the cost of Profit is simply what
customers. production is left over from
 By identifying - Cost are usually revenue after all costs
customer needs to shown in have been paid. It can
make products financial be written as total
which would sell. statements as revenue minus total
 Identifiying either: cost. It is a key
market trends so a) Cash objective, as it’s a:
as to respond to outflows in - Reward for
changing cash flow enterpise
demands in order forecast - Reward for
to remain b) Cost of risk taking by
competitive. goods sold investors
 Helping with the or expenses - Source of
planning of in profit and internal funds
marketing loss account for
campaigns. emergency
 Providding - Source of
information to internal funds
help solve for
business problems reinvestment
such as reasons

17
 for falling sales. The main ratios
The factors affecting used to interpret
location decisions for a accounts
business Ratios are used to:
 Raw materials  Help judge
 Tradition business results
 Customers  Allow
 Environment comparisons with
The different ways
 Infrastructure previous years
of presenting data
 Availability of  Identify trends in
How data is presented
workers performance
is important. Many
 Location of  Allows
people will be
competitors comparisons with
intereseted in the
 Government similar
results of market
 Cost companies.
research or want to
 Personal reasons
see the business
accounts.
The concept of
There are many
productivity
different ways to
Productivity is one
present data. The
measure of efficiency. It
main ones are tables,
measures the amount of
graphs and charts.
output produced against
1. Table
inputs used to make it.
It is a simple
A business uses
record of facts
productivity information
and figurees
to compare performance
presented in
over time or against
rows and
similar businesses. This
columns. It is
shows if (or where)
useful if you
changes need to be
want to show
made.
a lot of
detailed
18
 information. Productivity is affected
2. Charts by many factors
If you do not including the
simply want to following.
list numbers in - Sickness
a table, charts - Machine
are useful as breakdown
they have - Industrial action
more visual - Skill level of
impact. A workers
chart is a - Level of worker
group of motivation
related facts - Capital or labour
presented in intensive
some from of business
diagram. The
type of chart
used will
depend on
what
information
needs to be
shown. The
three main
types are bar
charts, pie
charts and line
charts.

The four parts of the

marketing mix
1. Product –
what to sell

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 2. Price – what
price to sell
the product at
3. Place
(distribution)
– where it is
sold
4. Promotion –
making people
know about it

The product life

cycle
The product life cycle
refers to the stages a
product will pass
through from its
introduction to
growth to the end of
the products time in
the market.
a) All products
go through
the same
stages. It is
only how
long each
stage lasts
that is
different.
b) A business
with many
products will

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 have many
diffrent
product life
cycles to
manage.

The main methods

of pricing
- Cost plus
- Competitive
pricing
- Penetration
pricing
- Price
skimming
- Psychological
pricing
How do producers
get their products to
the consumer?
Method 1: producer
to consumer
Method 2: producer
to wholesaler to
consumer
Method 3: producer
to wholesaler to
retailer to consumer
Method 4: producer
to retailer to
consumer

The different

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methods of
promotion
 Advertising
Advertising
Informative
advertising giving
people
information about
the product.
Main the methods
of advertising
1. Television
2. Cinema
3. Radio
4. Newspapers/
magazines
5. Leaflets
6. Posters and
billboards
7. Internet
 Sales promotion
Tries to increase
sales from
existing
customers and
encourages others
to switch from
rival products.
1. Price
reductions
2. Special offers
3. Free samples
4. Point of sale

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 5. Free gifts
6. After sales
 Directing
marketing
Includes any
activity that
involves direct
approaches to the
customer.
1. Mail order
2. Email
3. Direct email

 Other froms of
promotion
1. Public
relations
2. Sponsorship
3. Celebrity
endorsements

A marketing plan is a
statement of actions a
business will take to
achieve ist marketing
objectives. These
objectives are based
on the business
objectives.

SECTION 4: PEOPLE IN BUSINESS

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DESCRIPTION 4.1 human needs and rewards 4.2 manpower

CONTENTS People work for many reasons. Internal and external

a) Money – people need money to recruitment
pay for their needs and wants. Internal recruitment
b) Security – having a job that will Looks to recruit new
be there for many years. person from existing
c) Job satisfaction – enjoying what employees.
they do. Methods include the
d) Self-esteem – feeling important as following.
have something to contribute to - Newsletters
society. - Notice boards
e) Social – to feel part of a group - Emails
- Word of mouth
The methods of financial rewards
other employees
- Payment methods External recruitment
- Performance related pay Where business looks
The method of non-financial rewards outside the organisation to
- Job enrichment attract workers.
- Job rotation Methods include the
- Job enargement following.
- Team working - Local newspapers
- National
The role of management in motivating newspapers
workers - Specialist
Managers have many responsibilities. magazine
They have to plan, make decisions, Solve - Recruitment
problems as well as deal with people. agencies
- Government run
Choosing the right incentive depends
centres
on the following.
 Cost – the business needs to be able to The different methods of

24
 afford to give bonuses or pay rises. training
 Type of business – piece rate might Training is important as it:
not be suitable for all businesses.  Increases workers
 Employees – everyone is an skills in current job to
individual. What works for one person increase productivity.
might not work for all.  Develops skills for
 Manager – their skills and choices future jobs.
will affect the success of any method.  Can motivate workers
who feel valued.
Motivation refers to how people approach  Makes business more
their work. If workers are motivated, they flexible if workers can
will be anthusiastic and interested in their do more than one job.
work and are likely to work harder. This  Can reduce mistakes to
should lead to less mistakes, better improve profitably.
performances and hopefully higher There are three types of
productivity for the business. training.
1. induction training
The different styles of management 2. on the job
There are three main styles – autocratic, 3. off the job
democratic and laissez faire. Most
managers will use only one approach.
Some will change their style to suit
different situations.

SECTION 5: REGULATING AND CONTROLLING BUSINESS ACTIVITY

The reasons for government intervention

Remember that most countries are mixed economies. This means that the government will
try to influence business activity in the interests of the people, the economy and the
environment.
Government have many objectives and uses four main tools to help them achieve their
aims.

25
1. Monetary policy
2. Legislation
3. Fiscal policy
4. Competition and trade policies

The role of trade unions

A trade is a group thst tries to protect the interest of workers.
- Employees eho belong to a union are called members.
- Two main functions of a trade union are to represent their members and to
negotiate with employeers.
- Collective bergaining – the union represents all mebers in negotiations, rather than
individual workers asking employers. This should give the union more influence
and help members get a better deal.

If unions and employers cannot agree, workers might threaten wmployers with industrial
action. Unions might organise industrial action t put pressure on employers if negotiation
ddos not work.

The succes of a business is influenced by many external factors.

 A business needs to take account of these influences or they risk losing business
 Taking account of environmental issues can even help give businessses a competitive
advantage. Green issues are popular. If a business is seen as ‘green’ they could attract
more customers and increase sales.
 But change costs money. If sales do not cover the additional expense, the business will
make less profit or even a loss.
The different stages of the business cycle
Government tries to manage the economy to provide stable conditions for business to
operate in.
- Business cycle refers to changes in the level of economic growth over time.
- It records the ups and downs in Gross Domestic Product (value of goods and
services produced) pf the country.
- It is also know as the trade cycle.
- The business cycle affects all businesses in an economy.

26
 CHAPTER III
DISCUSSION

3.2 Strengths and Weaknesses of Books

The advantages of this book are more about how to do business in English :
1. in terms of book appearance, the book reviewed is an interesting book because it’s
attractive cover makes readers interested in reading it.

2. from the layout and writting aspects, including the font size, are:
- The layout aspect of the margins is suitable for this book.
- The layout aspect of the writting is right in the middle.

3. from the aspect of this business study book, a lot is taught about how to do
business and how to market.
4. in terms of language, everything is in English so it is difficult for those who don’t speak
english to understand it.
5. the discussion in the book is very structured, so that the mindset of the reader becomes
the focus.

27
 CHAPTER IV
CLOSING
4.1 Conclussion
So this book discusses business, how to communicate with business relatives, how to
promote a product, explain marketing and explain business classifications. Very detailed
about the marketing techniques written in this book, with discusses prices, products,
places, and how to promote them and explains marketing strategies.

4.2 Suggest
From some of the weaknesses of the book described above, it can be concluded in the form
of suggestions including:
1. in the discussion of the book, it should be equipped with a translation in
Indonesian or using everyday english so that readers can more easily understand
the contents of the book.
2. it should explain the starting point of how to start a business for beginners.

REFERENCES

28
MEDI HOUGHTON. 2013. BUSINESS STUDIES. INDIA: REPLIKA PRESS

29