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Basic Differences between Traders vs Businesspeople


06 January 2022
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In the business world, you will be familiar with the terms trader and businessman. Judging from the ultimate goal, these two professions actually both sell goods. However, there are fundamental differences between traders and business people.

However, that doesn't mean one is better than the other. On the other hand, each profession has its own role. Traders may turn into business people. Likewise, business people seem to have to hone themselves to become traders.

So, where exactly is the difference between business people and traders? Find out more below!

Difference between Traders and Businesspeople

Many people say, "Be a businessman, don't just be a trader." Even though it is a good quote, the opinion is not 100 percent correct. There are times when traders cannot get multiple profits like business people. Businesspeople still have the possibility of not being able to sell more than traders.

Here are other differences that can be seen between traders and business people:

1.  Marketing planning

Business people need planning to get results. They are required to make short, medium and long term plans for business continuity. This planning must also involve many aspects, including capital and implementation time period.

Traders also need a plan. However, the strategy used is simpler. They will just buy things from other people, then sell them.

2. How to build relationships with consumers

Traders will satisfy buyers with a price bargaining approach. In other words, traders will make prices higher so they can bargain. That way, customers will be happier when shopping.

This is different from business people who will provide special prices or bundling to attract consumers. This special price will also attract more customers to buy the product. The good thing is, these business people can sometimes influence market prices.

3. Work system

Business people have a complicated work system from upstream to downstream. Therefore, business people cannot work alone. They have to work together with other people. Businesspeople need people who work on finance, marketing, and other parts of the business.

On the other hand, the business chain carried out by traders is very short. Therefore, traders can do everything alone. Even though the profits obtained are sometimes limited, traders can enjoy them without needing to share them with other parties.

4. Products being marketed

Traders will sell products directly to consumers. An apple seller will sell apples by weight to the seller. Then, they will immediately benefit from the sales results.

However, business people may not only sell apples as a product. Business people will change the apple to have added value. For example, apples are made into juice or added to food. This will also cause the price of apples to increase many times over.

Adding value to the product can also be done by providing other elements of the product. When fruit juice traders only set a price of IDR 15 thousand per glass. Business people who have fruit juice products can charge IDR 50 thousand. The reason is, he offers fruit juice in a restaurant with air conditioning and friendly service.

5. Long term vision

Trading and doing business are also related to long-term vision. Traders can survive for a long time when they successfully sell their merchandise and make a profit. They will compete with other traders in product variety and availability of goods.

When the goods being marketed are no longer sought after, traders will replace them with new goods. This aims to keep buyers coming to them to make transactions.

This is different from business people who are required to always innovate in all aspects. It could be that business people continue to sell the same item from year to year. They will only change their marketing methods or packaging to maintain their appeal.

Both businessmen and traders still have good attraction in business. Mastering these two skills will give you more value. To gain more knowledge about the business world, you can take part in the Strategic Business Analysis program from prasmul-eli. You can be given the knowledge to analyze appropriate business strategies to apply immediately.

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Definition of GMS, Functions and Types that You Should Know
10 July 2024

The GMS is a crucial forum where share owners gather to make important decisions that will affect the future of the company.

In it, there are intense discussions about company policies, performance evaluations of leaders, and vital decisions such as structural changes.

In this article, let's discuss GMS in more depth, starting from its meaning, function, to types.

What is GMS?

A General Meeting of Shareholders (GMS) is an official meeting regularly held by a company and attended by the board of commissioners, directors and shareholders.

The GMS has special authority that is not owned by the board of commissioners or directors.

This is regulated in Law Number 40 of 2007 concerning Limited Liability Companies.

To hold a GMS, the company must fulfill the following requirements:

  • The GMS must be invited by the Board of Directors or Board of Commissioners.
  • Notification to shareholders must be made no later than 30 days before the date of the GMS.
  • The GMS is only attended by legal shareholders.
  • Decisions are taken through deliberation to reach consensus. If this is not achieved, a decision is taken based on the majority vote.

GMS function

The GMS is a forum where shareholders have the opportunity to be directly involved in making important company decisions. GMS has a very important function for the company, namely:

1. Establish Company Policy

This meeting is a forum for shareholders to jointly formulate and review company policies for both the short and long term.

For example, whether the company will expand its business to new areas or whether it will launch new products.

These decisions are very important because they will affect the company's future growth and success.

2. Check the Company's Financial Health

One of the main agendas at the GMS is examining the company's financial reports.

Shareholders will look at whether the company made a profit, how much debt it has, and how money was used over the last year.

This is important to ensure that the company is well managed financially.

If there is a problem, shareholders can ask for an explanation and solution from company management.

3. Assess the performance of the Board of Commissioners and Directors

The GMS is also an opportunity for shareholders to evaluate the performance of company executives such as the board of commissioners and directors.

They will see whether the leaders have carried out their duties well and achieved the targets they have set or not.

If their performance is less than satisfactory, shareholders can decide to replace them with other people who are more competent.

4. Establish Dividend and Profit Sharing Policies

When a company makes profits, shareholders need to decide how those profits will be used.

At the GMS, they will discuss whether profits will be distributed to shareholders in the form of dividends or reinvested into the company for business development.

This decision must consider the company's short-term and long-term needs.

5. Amend the Company's Articles of Association

The GMS can change the basic rules that govern the company. These changes could be:

  • Merging a company with another company.
  • Separating a department from the company.
  • Disband the company.

This decision must be approved by the majority of shareholders.

The aim is to ensure that this major change is carried out with the support of many parties so that the company remains stable and has a clear direction.

6. Deciding on the Dissolution of the Company

The GMS can also decide on the dissolution of the company if the company experiences serious financial problems or cannot continue its operations.

This decision is usually taken if the company experiences serious financial problems or cannot continue operations.

Dissolution of the company is the final step and requires approval from shareholders.

Types of General Meeting of Shareholders (GMS)

The GMS is an important forum where shareholders gather to make important decisions about the company's direction and policies.

Based on the time it is held, the GMS is divided into two types, namely the Annual General Meeting of Shareholders (AGMS) and the Extraordinary General Meeting of Shareholders (EGMS).

Annual General Meeting of Shareholders (AGMS)

The AGMS is held at least once a year, no later than six months after the company's financial year ends.

The following are several important agenda items that are usually discussed at the AGMS:

  • Company annual report.
  • Company financial reports.
  • Dividend distribution.
  • Appointment and dismissal of members of the board of commissioners and directors.
  • Changes to the articles of association.
  • Merger, consolidation or separation of companies.

Extraordinary General Meeting of Shareholders (EGMS)

The EGMS is held to discuss and decide on extraordinary or urgent matters that cannot be postponed until the next AGMS.

The following are some of the agendas that are usually discussed at the EGMS:

  • Changes to the articles of association.
  • Merger, consolidation or separation of companies.
  • Appointment or replacement of curator.
  • Postponement of debt payment obligations.
  • Filing a bankruptcy petition.
  • Termination of business activities.

General Meeting of Shareholders Mechanism

A GMS is an important meeting that is strictly regulated in accordance with the applicable regulations in the company's articles of association.

The following are the main stages in the mechanism for holding a GMS:

1. Summons to the GMS

The summons for the GMS must be made by notifying all shareholders no later than 30 days before the implementation date.

The invitation must state the time, place and agenda that will be discussed at the meeting.

This is done to ensure that all company stakeholders can manage their schedules and participate in important discussions.

2. Validity of the GMS

To be considered valid, the GMS must be attended by shareholders representing more than half of the total shares with voting rights of the company.

If the number of members is not met on the first day, the GMS can be continued on the next working day provided it is attended by shareholders representing more than 1/3 of the total number of shares with voting rights.

This is important to ensure that the decisions taken at the GMS reflect the will of the majority of shareholders.

3. Discussion of the GMS Agenda

The GMS agenda includes various strategic matters that influence the company's direction and policies.

Shareholders have the opportunity to discuss and decide on the company's annual report, financial reports, dividend distribution, appointment or dismissal of members of the board of commissioners and directors, as well as changes to the company's articles of association.

Decisions at the GMS are reached through deliberation to reach consensus. If there is no agreement, the final decision is taken by majority vote.

4. GMS Report

After the GMS is held, an official report will be prepared by the notary who was present at the meeting.

This report records the results of discussions, decisions taken, as well as voting results on each agenda item discussed.

The GMS report must be submitted to all shareholders no later than 30 days after the GMS is held. The aim is to ensure transparency and accountability of the company's decision-making process.

As explained above, the GMS is an important forum for shareholders to participate in monitoring and making strategic decisions for the company.

By following this clear and orderly mechanism, the GMS ensures that every decision taken is the result of a transparent and fair discussion in accordance with the interests of all shareholders.

Want to expand your knowledge in the business world? Register yourself in the corporate valuation program from prasmul-eli.

In this program, you will gain an in-depth understanding of company valuation and improve your strategic decisions in the financial sector.

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Careers and Women in Indonesia: Challenges and Progress
03 July 2024

David Altman, PhD, Chief Research and Innovation Officer at the Center for Creative Leadership (CCL), has noted, “The journey to elevate women is not just a moral imperative; it is a strategic necessity.”

The World Economic Forum reports that closing the gender gap will take 149 years in South Asia and 189 years in East Asia and the Pacific. Women remain underrepresented in top positions across both the private and public sectors. According to Fortune, women accounted for only 10.4% of Fortune 500 CEOs in 2023. It is clear that the lack of progress is not due to a lack of ambition among women.

Despite advancements in education and employment opportunities, women in Indonesia still face significant challenges in career development. The female labor force participation rate was around 53% in 2021, a figure that has seen little change over the past two decades. Many women are stuck in low-productivity and low-paying jobs, and the gender gap in labor force participation remains one of the largest in the country.

A significant number of women leave the workforce after marriage and childbirth. The difficulty of balancing childcare responsibilities with work obligations is a major obstacle to their productivity. The shortage of quality childcare services, lack of family support, and cultural values that prioritize women as primary caregivers force many women to leave their jobs.

Research conducted by CCL, in collaboration with Prasmul-eli, underscores the issue of women's leadership in the Asia Pacific region. The study, titled “Elevate The System: We do not need to change women — we need to change systems,” reveals that Indonesian women with families often handle most domestic responsibilities, leading to burnout and fatigue. The prioritization of family remains a significant barrier to women's career advancement.

For a detailed analysis, download the full report for free at the following link.

Gardhika Waskita Pakqi
Resident Assessor prasmul-eli

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Managerial Skills as the Foundation of Leadership Success
28 June 2024

Aspiring to get a promotion as a manager in the company or just got the promotion? When occupying a leadership position in a company, there are skills required, one of which is managerial skills.

In the complex and competitive world of business, the success of an organization often depends on its leaders' ability to manage teams, projects and resources efficiently.

A skilled manager must not only understand the technical aspects of their job, but must also have a variety of other skills that enable them to lead effectively.

So, if you want to have good managerial skills to boost your career, read this article to the end, okay?

Definition of Managerial Skills

Managerial skills are the ability to organize employees so they can do their jobs better. Not only must a leader have it, but managerial skills need to be learned by everyone for career success.

Basically, someone who has good managerial skills can be more adaptive to various decisions or business directions from the company. Not only useful for yourself, managerial skills will also help the company develop further.

By continuing to sharpen managerial skills, a work team will be created that is more able to collaborate to complete work. Of course, this will be profitable so that the company can continue to run and innovate with the support of its employees.

Types of Managerial Skills

Here are three types of managerial skills that you need to understand and apply:

Technical Skills

This type involves knowledge for a specific field. With extensive knowledge, a manager will use special techniques that he learns to achieve his goals within the company.

Some examples that need to be understood regarding technical skills for managerial skills are work planning, increasing sales, and so on.

Conceptual Skills

Types of conceptual skills include understanding, how to think, and how to formulate ideas. With this concept, a manager can see an idea in outline, analyze it, and find out what action plan is needed.

Managers with good conceptual skills will usually better understand the advantages and disadvantages of choosing a work plan and can overcome them by making additional plans.

Interpersonal Skills

This type of interpersonal skill refers to how managers interact, work, and relate effectively with coworkers. This skill allows a manager to utilize human resources in the company and also motivates them.

Of course, the hope for the future is that the team can work better and produce something the company needs to develop.

Examples of Managerial Skills

To understand better, here are six examples of managerial skills that you need to pay attention to and learn!

Communication

Communication is the key to success. In managerial skills, a manager with good communication skills will tend to be more successful.

The reason is, by having good communication skills, a manager can convey information clearly and be understood by various parties. Apart from that, the better a manager's way of communicating also influences the quality of his team's work.

Planning

A manager must be able to plan or plan. This type of managerial skill is really needed because it will have an impact on the way you work in a team.

The planning skills possessed by a manager help him to create something that is visionary and still pay attention to obstacles and goals. Apart from that, in planning a manager must be able to do the following things:

  • Critical thinking
  • Think logically
  • Think strategically
  • Analyze the problem
  • Program management

Decision Making

Decision making is another example of managerial skill. The success of a company or organization depends on the decisions taken by superiors within it.

In order for a plan to run smoothly, it is necessary to make the right decision in every situation. A manager who is able to make effective decisions in every situation will help the company develop further.

Problem Solving

A good manager can solve problems in an effective way and prioritize common interests. Problem solving in a company also involves identifying problems and then reaching conclusions about how to solve them.

This managerial skill does not only apply to the interests of the company, miscommunication and other things can occur within the team while working.

Delegation of Tasks

A manager who has this ability is certainly able to reassign tasks or divide tasks within the team. With this managerial skill, a manager will better understand who is suitable to carry out the task and can do it more efficiently.

Delegation helps managers optimize their productivity and helps teams gain new learning or skills.

Motivation

Another example of a managerial skill that needs to be learned is how to motivate. A manager who can motivate his team is a valuable asset for the company.

Motivation triggers desired behavior or responses from employees. There are two types of motivation used by managers, namely intrinsic motivation and extrinsic motivation.

If a manager has mastered managerial skills, of course this will have a good impact on himself and the team. It doesn't stop there, having good managerial skills can also motivate other employees to learn more and have an impact on the company's success.

The company's success in question is synergy within the team to achieve company goals and continue to grow.

Want to learn more about managerial skills? prasmul-eli has a special short leadership program that you can follow. The program is held for two days with various materials that help you to sharpen your managerial and leadership skills in the team.

Not only the leadership program, Prasmul-eli provides other short programs for you professionals who want to increase their knowledge. The program is designed to be short but still provides the essence and employs facilitators who are experienced in their fields.


Find further information on various short programs at Prasmul-Eli now by clicking this link!