THE BUSINESS SECRET, It's not just a secret!

is CFAR-Community media for Corporate & Individual Member, this book contain the following:

• *Introduction & Approach
• *General Economic Information
• *Company-Specific Information
• *Financial Information
  
• *Diversification of Operating Activities
• *Diversification of Capital
• *Shareholders' Information
• *Management Information
• *Business Analysis
  

Editor by Mr.OEY, an advisor in the financial analysis of business more than 15 years in Indonesia.
NOW!! Available in Book+CD Tutorial (English & Indonesian). So sign to CFAR GuestBook and joint as member, it's "free" Some day you know...
It's not just a secret!!

CFAR INDONESIA, Profile Indonesian Business Center

Center for Financial Analysis & Research (CFAR) in Indonesia is an independent, non-profit organization focusing on financial analysis studies on domestic and international issues. It was established in 1 July 2004. As management business advice and financial analysis center, CFAR have approach known "BIZ" Business Intelligence Zone is a proven approaches to improve the efficiency and effectiveness of the business performance management. We provides the quantitative program control service required to Plan and Acquire, Manage and Control, Evaluate and Report across the program life cycle including: Business decision & cases analysis, Economic and financial cost / benefit analysis, Cost modelling and analysis, Strategy and implementation, Financial analysis and management, Financial desktop systems applications development and Staff supplementation.

Mission: to help the business owner and investor to reach the big profit

Vision: assist the business owners and investor stay competitive in the new millenium

Core value: Our fingers are on the pulse of service integration, Our eyes are on the business
Motto: ...ketika Bisnis bukan hanya sekedar rahasia... IT'S NOT JUST A SECRET!

OEY..About the Editor

an autodidacticism person, generally regarded as the inventor of "BIZ" an unique business analysis zone to improve the efficiency and effectiveness of the business performance management for all business classifications : Industrial, Banking, Insurance and Financial Services/Holding. Mr.OEY contributed substantially to the development of "BIZQZ" BizQuickCount-SiteBuilder is business measurement applications to quickly calculate the result of business performance. Until now Mr.OEY created to several CFAR INDONESIA publications, application/software, seminars including:

• Seminars: FROM BLACK-WHITE TO TECHNICOLOR and IT'S NOT JUST A SECRET!
• Software: EBAPM and IBATR (BIZ-M)
• Application: BIZ-QuickCount-SiteBuilder:BIZ-S, BIZ-R and BIZ-A
• Books: THE BUSINESS SECRET and 4STEP-Survival Guide and 80 @nalyzing your Busines$
• Biography: The Secret of OEY...Just the way I am
  

BIZ, An approach that always fits.

In today's economy, business are revised constantly from old categories and approaches are left behind. Even if your business has moved from black and white to technicolor, what about all of the hues of possibility in between? Don't fit your future into a spectrum of solution when we can help you mix your own shade.

Our's service integration approach enables us to comprehensively leverage our resources to create hybrid solutions for our members. We also understand that how these solutions are delivered is of equal importance, so our engagement style allows for variable deployment of our associates.Our associates of experienced professionals enables our to support our members with a broad range of emerging business services

INTRODUCTION & APPROACH, Making investment decisions

It's difficult to provide advice on how to make sound investment decisions. Ironically, one of the obstacles to making investment decisions is the flood of financial information regularly released to the public by companies reporting the results of their operation. Although we live in a time of instant communication, when the touch of a finger flashes a message around the globe, the world of financial analysis and investment has not kept pace with the electronic age. The speed and reach of an investor's decision-making powers have dramatically increase in recent years, thank to new technologies and information delivery systems. Yet the supply of meaningful corporate financial information, on which investors every-where rely, remains relatively backward, Internationally, information is slow in transmittal, lacks uniformity in presentation, and is subject to varying, some-times conflicting, accounting standards.
There are basically two approaches to predicting the future intrinsic value of a corporation and its securities: the Fundamental and Technical Approach. Both approach investigate past performance and seek to predict future events.

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GENERAL ECONOMIC INFORMATION, An economic forecasting & factors.

Local, national and global economies today are solidly integrated. No company performs its business in isolation. Securities analysis therefore involves monitoring changes in the economic policies of local authorities and national governments.

Establishing the intrinsic value of a company's stock, an investor's primary goal, depends on the company's performance, but performance cannot be assessed without analyzing the economy in which it operates. Thus, fundamental analysis should begin with economic analysis. The intrinsic value of a security is based on a company's future earnings. Logically, economic analysis should focus not on the current economic situation but on possible future economic developments. This process is called Economic forecasting.

More precisely, the outlook for corporate earnings is affected by economic factors determining how much the company sells and how much it costs to produce the products for sale. These are call Supply and Expenditure factors.

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COMPANY-SPECIFIC INFORMATION, Identify the companies to be analyzed..

The first task is to identify the companies to be analyzed. This may appear uncomplicated in dealing with a small population of companies, but it is one of the most important!. At least three items are required for the identification of a company. These are :

Company's name

The names of companies can often be confusing. To simplify operation of a database, a company identification number is needed in addition to names and descriptions. Each company identification number should be unique and the identification of securities issued by the company should be related to that number or codes.

Industry classification

A company's industry classification should be based on the major product or services it provides. Many other classification systems, established by various organizations, are used in other countries.

History & background.

Identification of a company must also include its history and background. The following items constitute this component: Site of incorporation, Location of home office and major operating activities, Initial Public Offering (IPO) date, Major merger and acquisition activities.

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FINANCIAL INFORMATION, The sources of the various pieces of information

Most of the information provided by companies to the public consists of detailed financial data. It related to three categories :

Market Data

Market Information is continuously provided by companies, stock exchanges, various electronic data delivery systems and the media. Trading information is provided constantly while stock exchanges are open. Some trading systems allow transactions beyond specific trading hours.

Financial Reporting & Accounting Principles

The most comprehensive sources of company-specific information is the annual report and any interim reports the company may issue. There are some differences in the methods of financial reporting, depending on the purpose, but the underlying theme is that companies should openly disclose their activities. The format of financial reports varies by country and company. Financial analysts bear the burden of this accounting diversity. There is no perfect set of accounting standards for analysts. For one thing, ”no one is trained” to deal with the existing multitude of accounting standards. Accounting may not be a science, but a scientific analysis of each issue will help to construct a coherent set of accounting standards for global financial analysis.

Financial Statement Items

Corporate financial information is routinely made public through annual and interim reports. Most of it is summarized in an Income Statement, Balance Sheet and Cash Flow Statement. A database format for financial statements can be customized for each industry. However, it is clear that a balance must be maintained between the desire to establish a flexible database to optimized analysis and the cost involved.

The rules for preparing and understanding financial statement:

• *General Accounting Procedures

• *Accounting Principles

• *Application of Accounting Principles

• *Specific Accounting Policies

• *Disclosure and presentation of “insider information”

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DIVERSIFICATION OF OPERATING ACTIVITIES, a further segregation.

A further segregation of operating activities is almost always useful in an analysis of diversification. In addition to diversifying their products, companies can also diversify geographically, maintaining operations in many countries or region.

Product Segmentation

Product may be segregated in many ways. To be effective, the segregation should reduce a company's exposure to economic fluctuations. These are, however, no two companies that provide precisely the same product.

Geographic Segmentation

The diversification of sales and/or production facilities in different countries does help some companies overcome regional or national economic fluctuations. Geographic diversification is classified by two different criteria : the destination of sales and the origin of production.

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DIVERSIFICATION OF CAPITAL, changed over the decades

The capital structure of corporations has changed over the decades, as have capital markets, yet it remains unclear which is the cause of the change and which is the effect. Estimates of profitability and liquidity are also related to capital structures. It is essential to understand the capital structures of companies to be able to analyze and helps in estimating the cost of capital to a company.

The major capital resources can be segregated into: common equity, preferred equity and bonds.

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SHAREHOLDERS INFORMATION, key players in a company's decision-making process.

The identification of major shareholders is important, If a view shareholders own majority voting rights in a company, the direction of its operating activities will be decided by its relationship to these shareholders.

Shareholder information should be compiled in three categories: major shareholders, types of shareholders and a breakdown of all shareholders by size of ownership.

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MANAGEMENT INFORMATION, key element in corporate policy decisions

Stockholders are a central factor in corporate decision making through their power to elect company officers and their right to vote on company matters at annual shareholder meetings. The other key element in corporate policy decisions is a company's management, the people who direct daily operations, including members of the board of directors.

Another crucial aspect of management is the role of outside influences. Different laws and customs also affect management style.

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BUSINESS ANALYSIS, forecast the company's future earnings.

HAPPY NEW YEAR !!

The goal of business analysis is to forecast each company's future earnings. No matter how much historical information is gathered, estimating future earnings is a difficult task. Historical information can, however, serve as a basis for an estimation of future earnings.

The following seven procedures should be followed in business analysis:

• *Primary data collection

• *Ratio Computation

• *Time series ratio analysis

• *Ratio analysis by sector

• *Company analysis by sector and by country

• *Earnings Forecast

• *Timing of final actions

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