In this company we can see progress of fluctuation in stock price of BNI within a year from January 2nd, 2010 up to October 29th, 2010 by seeing the average stock return with 0.00353 which means that at least the investor whom holds the stock of this company will gain 0.00353 or 0,353% profit per day. The Beta was calculated as 0.793645942. This beta means that the market will influence the stock return by 79.36%. We can take further explanation that every time the market return is increased or decreased for $1, then the stock return will have an increase or decrease in price for $ 0.7936 as a response to the beta relationship it holds.
There are some cases that we can see in the table of stock price showing that stock return has e opposite movement from the market return. When the market is increasing because special events that occurred that day, the stock return was increasing with the value greater than 1.5 and vice-versa.
PT Bank Negara Indonesia Announces Earnings Results for the First Nine Months. PT Bank Negara Indonesia reported a net profit of IDR 2.95 trillion in the first nine months of 2010, up 59.33% from the same period last year
So this company is quite the right place for risk seeker to invest their money in, since it could be classified as an aggressive stock company (Beta more than 1.0- average) but for those that does not enjoy risk or want to play it safe, it would be best not to put all of your money in this company, Although, a good investor would invest not only in one place but in several places. So in other words, do not put all your money in one basket since you might lose them and be left with nothing.
Again supported by the fact of the products which are categorized as the stars and cash cow such as: Individual, Credit Card, Corporate and BNI Syariah which will generate profit in the future, holding the investment in the Pt.Bank Nasional Indonesia.Tbk is a very compromising action that need to be taken by the investors whom are likely to receive benefits in term of monetary and also reputation.
Rabu, 24 November 2010
BCG Matrix and Analysis
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PT.Bank Nasional Indonesia is having 6 main products:
1. Individual:
BNI card
BNI Instant
Credit Card
BNI Griya
2. Corporate:
Cash Collateral Credit
Credit Card
Primary Cooperative Credit
3. Syariah:
BNI Hasanah Card
Personal Loan
Commercial Loan
4. Credit Card
5. Investor Relationship
6. CSR
For the Stars the products are:
1. Individual:
a. BNI card
b. BNI Instant
c. Credit Card
d. BNI Griya
The Individual product can be concluded as the stars product because most of the financial activities happen in the daily business run of this company use the individual products such as BNI card, BNI Instant, Credit Card which those products participated in giving high profit and income to the whole company.
2. Corporate:
a. Cash Collateral Credit
b. Credit Card
c. Primary Cooperative Credit
As mentioned in the official website of Bank Nasional Indonesia that its main objective is to help the small-middle business owner in increasing the value of their companies, the BNI product for corporate is working on giving the loan to the small-middle business owner with certain interest. This type of product is able gain high interest in the business doers and also the investors, local and foreign, and trust Bank Nasional Indonesia as their business partner.
3. Credit Card
The use of credit card increases from year to year in Indonesia. Because of that, this type of product is a very promising product which will generate cash-flow and also profit from its objection. Thus later on the supporting article will be explained further how much percentage that the credit card participates in the company as a business product.
The Cow Cash, the products are:
1. BNI Syariah
As mentioned in the website that the BNI Syariah is not much different with the BNI in giving the service and product. For instance, the different product it holds is about the profit share and also the selling and doing business using the Islamic rules. This type of product is concluded as the cash cow product because it’s market grow in a very slow movement but it generates quite much money since Indonesia has a majority of Moslem people whom may consider using the BNI Syariah product at the first hand. Further explanation about this product’s profitability will be explained later on the article below.
The Dog:
There is no such product that can be put in here since the BNI is still a growing company which has few products but most of them are the promising products that will generate some profits along the way.
The Question Mark:
1. CSR
2. Investor Relationship
These two products are put in the question mark because most of the time they don’t generate monetary profit while they need lots of cash in doing so. As the purpose of the products to maintain the public and investors relationship with the company, these two products are considered with high demands but low return. These two products will increase the market share of the company because it builds good image for the company so people will use company’s products.
PT.Bank Nasional Indonesia is having 6 main products:
1. Individual:
BNI card
BNI Instant
Credit Card
BNI Griya
2. Corporate:
Cash Collateral Credit
Credit Card
Primary Cooperative Credit
3. Syariah:
BNI Hasanah Card
Personal Loan
Commercial Loan
4. Credit Card
5. Investor Relationship
6. CSR
For the Stars the products are:
1. Individual:
a. BNI card
b. BNI Instant
c. Credit Card
d. BNI Griya
The Individual product can be concluded as the stars product because most of the financial activities happen in the daily business run of this company use the individual products such as BNI card, BNI Instant, Credit Card which those products participated in giving high profit and income to the whole company.
2. Corporate:
a. Cash Collateral Credit
b. Credit Card
c. Primary Cooperative Credit
As mentioned in the official website of Bank Nasional Indonesia that its main objective is to help the small-middle business owner in increasing the value of their companies, the BNI product for corporate is working on giving the loan to the small-middle business owner with certain interest. This type of product is able gain high interest in the business doers and also the investors, local and foreign, and trust Bank Nasional Indonesia as their business partner.
3. Credit Card
The use of credit card increases from year to year in Indonesia. Because of that, this type of product is a very promising product which will generate cash-flow and also profit from its objection. Thus later on the supporting article will be explained further how much percentage that the credit card participates in the company as a business product.
The Cow Cash, the products are:
1. BNI Syariah
As mentioned in the website that the BNI Syariah is not much different with the BNI in giving the service and product. For instance, the different product it holds is about the profit share and also the selling and doing business using the Islamic rules. This type of product is concluded as the cash cow product because it’s market grow in a very slow movement but it generates quite much money since Indonesia has a majority of Moslem people whom may consider using the BNI Syariah product at the first hand. Further explanation about this product’s profitability will be explained later on the article below.
The Dog:
There is no such product that can be put in here since the BNI is still a growing company which has few products but most of them are the promising products that will generate some profits along the way.
The Question Mark:
1. CSR
2. Investor Relationship
These two products are put in the question mark because most of the time they don’t generate monetary profit while they need lots of cash in doing so. As the purpose of the products to maintain the public and investors relationship with the company, these two products are considered with high demands but low return. These two products will increase the market share of the company because it builds good image for the company so people will use company’s products.
Factors that influence the Ri and Rm
Taken from the Bloomberg Business Week April edition, we can see that the IHSG is having the chance in getting better in the BEI for the following months.
From the INILAH.COM, Jakarta the movement of IHSG for the closing for Thursday (25/3/2010) the index is quite high with increase of 24, 3 point (0.88%) to the level 2.799,15
PT Bank Negara Indonesia Announces Earnings Results for the First Nine Months. PT Bank Negara Indonesia reported a net profit of IDR 2.95 trillion in the first nine months of 2010, up 59.33% from the same period last year
From the INILAH.COM, Jakarta the movement of IHSG for the closing for Thursday (25/3/2010) the index is quite high with increase of 24, 3 point (0.88%) to the level 2.799,15
PT Bank Negara Indonesia Announces Earnings Results for the First Nine Months. PT Bank Negara Indonesia reported a net profit of IDR 2.95 trillion in the first nine months of 2010, up 59.33% from the same period last year
Analysis of Beta
Beta is the sensitivity of the stock return to the return of the market portfolio. In another words, Beta is used to measure the change in stock return when there is a change in the market return. And in this company the Beta was calculated as 0.793645942. This beta means that the market will influence the stock return by 79.36%. We can take further explanation that every time the market return is increased or decreased for $1, then the stock return will have an increase or decrease in price for $ 0.7936 as a response to the beta relationship it holds.
There are some cases that we can see in the table of stock price showing that stock return has e opposite movement from the market return. When the market is increasing because special events that occurred that day, the stock return was increasing with the value greater than 1.5 and vice-versa.
So this company is quite the right place for risk seeker to invest their money in, since it could be classified as an aggressive stock company (Beta more than 1.0- average) but for those that does not enjoy risk or want to play it safe, it would be best not to put all of your money in this company, Although, a good investor would invest not only in one place but in several places. So in other words, do not put all your money in one basket since you might lose them and be left with nothing.
There are some cases that we can see in the table of stock price showing that stock return has e opposite movement from the market return. When the market is increasing because special events that occurred that day, the stock return was increasing with the value greater than 1.5 and vice-versa.
So this company is quite the right place for risk seeker to invest their money in, since it could be classified as an aggressive stock company (Beta more than 1.0- average) but for those that does not enjoy risk or want to play it safe, it would be best not to put all of your money in this company, Although, a good investor would invest not only in one place but in several places. So in other words, do not put all your money in one basket since you might lose them and be left with nothing.
Analysis of Average and Standard Deviation
An average is a single value that is meant to typify a list of values. If all the numbers in the list are the same, then this number should be used. If the numbers are not the same, an easy way to get a representative value from a list is to randomly pick any number from the list. (Taken from www.wikipedia.com ) We can see progress of fluctuation in stock price of BNI within a year from January 2nd, 2010 up to October 29th, 2010 by seeing the average stock return with 0.00353 which means that at least the investor whom holds the stock of this company will gain 0.00353 or 0,353% profit per day. Average in return investment of 0,003102 can also mean that the change of price from one day to the next day is only in a light change.
Even though that there are some special days where the change is happening in a very high portion or very low portion, but likely it happened because of special occasion by an event related to financial or economic life which will be explained later on the IHSG situations within a year.
In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. The standard deviation or return investment for the Bank Negara Indonesia, Tbk. as 0.020656 which means that the differences between the expected return and the actual return is 2% so that the investors whom are about to buy the stock of this company can predict at high percentage of correctness of the upcoming price in the coming days.
For the market return, average value of 0.001787 means that the investor whom is hoping to gain some profits from the market return will at least receive 0.1787% profit from the market price. Some major increase or decrease happened as the responses to the situational condition that was happening in the BEJ at the year of 2010. We can see the situation in the BEJ later on the IHSG situations within a year.
For the standard deviation of market return, the calculation result for 0.012901 or 1.2901%. So it means that the difference between the investors’ expected return and actual return from the market (IHSG) is quite small since it’s around than 1% but we have to note down that some fluctuations, that happened to make a highest price in the IHSG or the lowest price, were due to the occasional situations that happen within a year.
Some special events are influencing the fluctuation in the market and also stock price of the company. The upcoming discussion will be talking about what has been happening in the IHSG along the year of 2010.
Even though that there are some special days where the change is happening in a very high portion or very low portion, but likely it happened because of special occasion by an event related to financial or economic life which will be explained later on the IHSG situations within a year.
In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. The standard deviation or return investment for the Bank Negara Indonesia, Tbk. as 0.020656 which means that the differences between the expected return and the actual return is 2% so that the investors whom are about to buy the stock of this company can predict at high percentage of correctness of the upcoming price in the coming days.
For the market return, average value of 0.001787 means that the investor whom is hoping to gain some profits from the market return will at least receive 0.1787% profit from the market price. Some major increase or decrease happened as the responses to the situational condition that was happening in the BEJ at the year of 2010. We can see the situation in the BEJ later on the IHSG situations within a year.
For the standard deviation of market return, the calculation result for 0.012901 or 1.2901%. So it means that the difference between the investors’ expected return and actual return from the market (IHSG) is quite small since it’s around than 1% but we have to note down that some fluctuations, that happened to make a highest price in the IHSG or the lowest price, were due to the occasional situations that happen within a year.
Some special events are influencing the fluctuation in the market and also stock price of the company. The upcoming discussion will be talking about what has been happening in the IHSG along the year of 2010.
Company Profile
Initially referred to by its unabbreviated name of Bank Negara Indonesia when it was established in 1946, BNI is the first bank formed and owned by the Indonesian Government.
Historical records indicate that on the eve of the 30th of October 1946, or merely a few months after its formal establishment, the Bank distributed the first currency bills ever issued by Indonesia’s Government popularly known at the time as ORI, or ‘Oeang Republik Indonesia’ (Currency of the Republic of Indonesia).
In fact, this day is commemorated annually as the National Finance Day while the date of the Bank's establishment - the 5th of July - was designated as National Bank Day
BNI’s legal status was upgraded in 1992 to that of a state-owned limited corporation under the name of PT Bank Negara Indonesia (Persero) and the bank decided to become a public company through its initial public offering of its shares in 1996.
In keeping with the spirit of the heroic national struggle that is rooted in its history, BNI strives to provide the best services for the country and to ultimately become the Pride of the Nation, today and always.
Historical records indicate that on the eve of the 30th of October 1946, or merely a few months after its formal establishment, the Bank distributed the first currency bills ever issued by Indonesia’s Government popularly known at the time as ORI, or ‘Oeang Republik Indonesia’ (Currency of the Republic of Indonesia).
In fact, this day is commemorated annually as the National Finance Day while the date of the Bank's establishment - the 5th of July - was designated as National Bank Day
BNI’s legal status was upgraded in 1992 to that of a state-owned limited corporation under the name of PT Bank Negara Indonesia (Persero) and the bank decided to become a public company through its initial public offering of its shares in 1996.
In keeping with the spirit of the heroic national struggle that is rooted in its history, BNI strives to provide the best services for the country and to ultimately become the Pride of the Nation, today and always.
Rabu, 01 September 2010
Response to the risk
Responses to minimize the risk.
There are several ways to minimize the risk;
1. Risk avoidance.
Either by removing of a particular threat or eliminating the source of risk. For example in removing the source of risk for contaminated land, the company create a better managed system related to the wasted materials so it doesn’t corrupted the land and building. And also for human error, the company stressed out the point how to work there for the workers so the workers will work accordingly, without creating any problems due to the human errors.
2. Risk reduction
When the risk is already occured, risk reduction may involve either lowering its probability or lessening its impact. For example in the company is that when the workers is pouring the chemical liquids from the barrel to the plactic bag. To reduce the damage of chemical reaction that irritates the skin, the workers use plactic glove.
3. Risk transfer
Insurance is the most popular technique for risk transfer in which only the potential financial consequences of a risk are transferred and not the responsibility for managing the risk. So in another words, this risk transfer is sharing the impact of the risk that being taken by the company with the third party. Sometimes the shared risk is about the financial impact of the certain accident.
4. Risk retention
In the case of planned risk retention, this involves the complete or partially assumption of the potential impact of the risk. In final, this risk reduction may only be cost-effective up to a point, thereafter becoming more costly than beneficial.
There are several ways to minimize the risk;
1. Risk avoidance.
Either by removing of a particular threat or eliminating the source of risk. For example in removing the source of risk for contaminated land, the company create a better managed system related to the wasted materials so it doesn’t corrupted the land and building. And also for human error, the company stressed out the point how to work there for the workers so the workers will work accordingly, without creating any problems due to the human errors.
2. Risk reduction
When the risk is already occured, risk reduction may involve either lowering its probability or lessening its impact. For example in the company is that when the workers is pouring the chemical liquids from the barrel to the plactic bag. To reduce the damage of chemical reaction that irritates the skin, the workers use plactic glove.
3. Risk transfer
Insurance is the most popular technique for risk transfer in which only the potential financial consequences of a risk are transferred and not the responsibility for managing the risk. So in another words, this risk transfer is sharing the impact of the risk that being taken by the company with the third party. Sometimes the shared risk is about the financial impact of the certain accident.
4. Risk retention
In the case of planned risk retention, this involves the complete or partially assumption of the potential impact of the risk. In final, this risk reduction may only be cost-effective up to a point, thereafter becoming more costly than beneficial.
Type of Risk
Type of Risk and the Analysis
1. Dynamic risk
It is concerned with maximizing opportunities which also means that there will be potential gains as well as potential losses. Because the purpose of business is gaining the profits, the owner of the business is risking its money and capital assets in buying-selling the goods and assets. Thus the differences between the buying price and selling price will determine whether it creates profits or not. But it’s not the only determinant in deciding the business is creating profit. The time value of money is also important. If we can sell the goods is a very short time lag after we buy it, the profits are mentioned as higher and also better. Higher because it creates profits as soon as possible, better it term of the profit received can be used to buy another products or assets.
2. Contingent risk
This risk happens when the company is affected directly by an event in the area beyond its direct control but on which it has a dependency (I.e. weak suppliers). As a reseller company, this company relies on the distribution system which is taking the main issue. Because the fastest the delivery takes places, the better performance the company possess in fullfilling the demand from public.
3. Customer risk
. The dependency on one client creates vulnerability because that client can take its business away or be taken over by a rival. This risk can be managed by creating a larger customer base (having more than one customer). As a reseller company, this type of risk is having a very small chance to be happen because the customers vary in a widespread kind of handicraft makers.
4. Purchasing risk
many businesses are designing and implementing new performance measurement systems and finding a particular challenge in developing measures for some key elements of purchasing contribution which are now regarded as strategic but which have not been historically analyzed and measured in any serious way.
5. Reputation risk : this type of risk arise as a consequence of another risk, such as fraud, a building destroyed, failure to attend to complaints, lack of respect of others.
1. Dynamic risk
It is concerned with maximizing opportunities which also means that there will be potential gains as well as potential losses. Because the purpose of business is gaining the profits, the owner of the business is risking its money and capital assets in buying-selling the goods and assets. Thus the differences between the buying price and selling price will determine whether it creates profits or not. But it’s not the only determinant in deciding the business is creating profit. The time value of money is also important. If we can sell the goods is a very short time lag after we buy it, the profits are mentioned as higher and also better. Higher because it creates profits as soon as possible, better it term of the profit received can be used to buy another products or assets.
2. Contingent risk
This risk happens when the company is affected directly by an event in the area beyond its direct control but on which it has a dependency (I.e. weak suppliers). As a reseller company, this company relies on the distribution system which is taking the main issue. Because the fastest the delivery takes places, the better performance the company possess in fullfilling the demand from public.
3. Customer risk
. The dependency on one client creates vulnerability because that client can take its business away or be taken over by a rival. This risk can be managed by creating a larger customer base (having more than one customer). As a reseller company, this type of risk is having a very small chance to be happen because the customers vary in a widespread kind of handicraft makers.
4. Purchasing risk
many businesses are designing and implementing new performance measurement systems and finding a particular challenge in developing measures for some key elements of purchasing contribution which are now regarded as strategic but which have not been historically analyzed and measured in any serious way.
5. Reputation risk : this type of risk arise as a consequence of another risk, such as fraud, a building destroyed, failure to attend to complaints, lack of respect of others.
The Risk Identification
Before we discuss further about the risk management applied in the company, first we have to know the definition of the risk. Because without knowing what risk is, we cannot understand further and being lost in gaining deeper explanation.
The term risk is variously defined as:
• The chance of loss
• The possibility of loss
• Uncertainty
• The dispersion of actual from expected results
• The probability of any outcome different from the one expected
Clasification of risk:
• Financial and non-financial risks
• Static and dynamic risks
• Fundamental and particular risks
• Pure and speculative risk
According to Merna and Al-Thani in Corporate Risk Management (2005), the term Risk management can be defined as any set of actions taken by individuals or corporations in an effort to alter the risk arising from their business. And according Meulbroek (2002) the goal of this risk management is to maximize the shareholder value.
There are some steps in the Risk Management:
1. Identification of risks/uncertainties.
2. Analysis of implications.
3. Response to minimize risk
4. Allocation of appropriate contingencies.
Risk management is a continuous loop rather than a linear process so that, as an investment or project progresses, a cycle of identification, analysis, control and reporting of risk is continuously undertaken.
Risk identification
It consist of determining which risks are likely to affect the project and documenting the characteristics of each one. This risk identification should address both the internal and external risks. By applying this theory to the company, we can track down what are the sources of the risk for the reseller company. here are the list below.
There are several sources of risk relate to this certain type of business;
1. Political : change in government policy, public opinion, disorder
2. Environmental : contaminated land or pollution liability
3. Planning : permission requirements, policy and practice, land use
4. Market :demand, competition, customer satisfaction
5. Economic : taxation, interest rates, exchange rates
6. Financial : margins, insurance
7. Natural : weather, earthquake, fire or explosion
8. Technical : design adequacy, reliability, operational efficiency
9. Regulatory : changes by regulator
10. Human : error, incompetence, tiredness, communication ability, culture
11. Criminal : theft, fraud, corruption
12. Legal : changes is regulation
The term risk is variously defined as:
• The chance of loss
• The possibility of loss
• Uncertainty
• The dispersion of actual from expected results
• The probability of any outcome different from the one expected
Clasification of risk:
• Financial and non-financial risks
• Static and dynamic risks
• Fundamental and particular risks
• Pure and speculative risk
According to Merna and Al-Thani in Corporate Risk Management (2005), the term Risk management can be defined as any set of actions taken by individuals or corporations in an effort to alter the risk arising from their business. And according Meulbroek (2002) the goal of this risk management is to maximize the shareholder value.
There are some steps in the Risk Management:
1. Identification of risks/uncertainties.
2. Analysis of implications.
3. Response to minimize risk
4. Allocation of appropriate contingencies.
Risk management is a continuous loop rather than a linear process so that, as an investment or project progresses, a cycle of identification, analysis, control and reporting of risk is continuously undertaken.
Risk identification
It consist of determining which risks are likely to affect the project and documenting the characteristics of each one. This risk identification should address both the internal and external risks. By applying this theory to the company, we can track down what are the sources of the risk for the reseller company. here are the list below.
There are several sources of risk relate to this certain type of business;
1. Political : change in government policy, public opinion, disorder
2. Environmental : contaminated land or pollution liability
3. Planning : permission requirements, policy and practice, land use
4. Market :demand, competition, customer satisfaction
5. Economic : taxation, interest rates, exchange rates
6. Financial : margins, insurance
7. Natural : weather, earthquake, fire or explosion
8. Technical : design adequacy, reliability, operational efficiency
9. Regulatory : changes by regulator
10. Human : error, incompetence, tiredness, communication ability, culture
11. Criminal : theft, fraud, corruption
12. Legal : changes is regulation
The Company Profile
The Company Profile
Name : Aneka Kulit
Address : Parangtritis St #23 Yogyakarta, Indonesia
Phone number : 0274-371446, 379638
Owner’s name : Lim A Liang
Operation time : Open daily from 08.00 am till 16.00 pm.
Type of business : Reseller of raw material goods for handicraft.
Length of business : 1979 – present
Reseller market: buyers who purchase with the intent of selling those products to others. The reseller market includes wholesalers, retailers, and distributors. Resellers may restrict their purchases to one product or brand or offer a variety of products and brands.
This company is a family owned business which is still owned by its 1st owner, Lim A Liang. Aneka Kulit was created at 1979 with the hard work and goodwill of Mr.Lim and his wife. This company was selling the leather (cow, goat, and lamb) and the paint for leather at the first time. But as the leather industry keeps reducing its profitability and activity by years, this company nowadays is selling the paint for leather, vinyl, plastic, and accessories for leather bag or sandals.
Name : Aneka Kulit
Address : Parangtritis St #23 Yogyakarta, Indonesia
Phone number : 0274-371446, 379638
Owner’s name : Lim A Liang
Operation time : Open daily from 08.00 am till 16.00 pm.
Type of business : Reseller of raw material goods for handicraft.
Length of business : 1979 – present
Reseller market: buyers who purchase with the intent of selling those products to others. The reseller market includes wholesalers, retailers, and distributors. Resellers may restrict their purchases to one product or brand or offer a variety of products and brands.
This company is a family owned business which is still owned by its 1st owner, Lim A Liang. Aneka Kulit was created at 1979 with the hard work and goodwill of Mr.Lim and his wife. This company was selling the leather (cow, goat, and lamb) and the paint for leather at the first time. But as the leather industry keeps reducing its profitability and activity by years, this company nowadays is selling the paint for leather, vinyl, plastic, and accessories for leather bag or sandals.
Rabu, 25 Agustus 2010
A Fresh New Beginning
This blog was created due to the term of 1st assignment of Risk Management subject. And the purpose of this blog is to post out all the assignments that will be occur during the semester.
About the details introduction of the writer can be seen from the profile. The latest issue about the writer is that the writer is currently taking his 5th semester in International Business Management Program at Atma Jaya Yogyakarta and the course Risk Management is taken to accomplish the required subjects for Management Program.
About the details introduction of the writer can be seen from the profile. The latest issue about the writer is that the writer is currently taking his 5th semester in International Business Management Program at Atma Jaya Yogyakarta and the course Risk Management is taken to accomplish the required subjects for Management Program.