CHAPTER 2 - BUSS MANAGEMENT TECHNO.ppt

8/10/2019 CHAPTER 2 - BUSS MANAGEMENT TECHNO.ppt

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CHAPTER2

BUSINESS MANAGEMENT


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DEFINING

Small and Medium Enterprise (SME) plays a

major role in the Malaysian economy

The development received much attentionsince the implementation of the New

Economic Policy ( 1971-1990) and then

emphasized in the 2nd

Long Term MalaysianPlan (1991-2000)

DEFINING


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DEFINING

Survey done in 2010 found that there were

567,480 SMEs established in Malaysia

(19% total countrys export)The Government has setup an agency

dedicated to help and spur the development

and growth of SMEs by providing

infrastructure facilities, financial assistance,

advisory services, market access and other

support programmes in 1996


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In Malaysia, Proton Holdings Bhd has a total of 287

vendors and 3000 sub-vendors to assist the

company to produce 80% of the total of 20,000 to

30,000 parts and components that are required to make aProton car

Presently, in Malaysia, increasing numbers of SMEs are

selling their products to supermarket chains such as

Tesco, Mydin, Giant TMC, Carrefour, Pacific and the Store.For instance, Tesco Malaysia sources its products from

1,272 suppliers. Out of the total number of 1,272

suppliers, 60% are local SMEs


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DEFINING

Definitions of SMEs is based on two

criteria, namely:

Number of employees; or

Annual sales turnover.


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DEFINING

SMEs sectors

PrimaryAgriculture

Manufacturing( including

agro-based)

Manufacturing-Related Services

(MRS)

Services ( includingInformation &

CommunicationsTechnology)


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Micro

SmallMedium

These groupings are based on either number ofemployeesor total sales or revenue generated by

a business in a year


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CHAR

ACTE

RIST

ICS

1. Ownershipprivately owned by individual or

partners, typically registered as a sole

proprietorship, partnership or private limited

(Sdn. Bhd.) company.2. Managementthe business is managed and

operated by the owner(s).

3. Resourcesoften has limited resources.

4. Organizational structure

structure is oftenflat and informal.

5. Flexibility of Change- more flexibility toadept to changes and vulnerable to develop

in the business environment


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ADVANT

AGES

It can be started at a very low cost and on apart-time basis

It is typically easier to respond to the

marketplace quickly Freedom to operate independently Small business owners have the satisfaction

of making their own decisions

Motivated by personal and familyconsiderations

A desire for independence and a strongsense of initiative


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FUN

CTIONS

planning is selecting priorities andresults (goals, objectives, etc.) and

how those results will achieved.Planning

allocating resources and ensuring the

team have everything they need to do thework they have been asked to do.

Organizing

involves motivating staff, praising or

criticising, setting individuals' objectives

and ensuring these are being achievedLeading

Controlling monitoring & adjusting resources and

processes to achieve goals


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Some characteristics of the business entitiesSole Proprietor Partnership Private Limited

Company

Ownership Single, normallyowned by the

entrepreneur

Owned by up to 20partners (for

professional buss. up to 50 partners)

Separate legal entitymust have

members notexceeding 50members

Act Business RegistrationAct 1956 (amended1978) & Proceduresof Business

Registration 1957

Similar to soleproprietor plusPartnership Act 1961

Companies Act 1965

Income Tax Personal income tax Personal income tax Corporate tax

Cost of setting The lowest Second after soleproprietor

The highestcompared to all threeentities


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Company

Formalities (in termof setting up anddissolve business)

Minimum formalities Minimum with fewformalities. Need tohave Contract orPartnershipAgreement

Complex

Memorandum ofAssociation & Articlesof Association

Submission of yearlyfinancial statements

Yes, but withoutauditor validation

Yes, but withoutauditor validation

Audited accounts

Source of capital Limited Larger than soleproprietor

Largest compared toall three

Business liabilities Unlimited Unlimited Limited to the capitalmembers contributeto the company


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Company

Life span of businessentities

Depends on the ageof owner & business

itself

Depends on the agepartners & business

itself

Does not depend onage of members or

resignation ofmembers

Management Managed individuallyby owner

The responsibility canbe divided equallyamong partners

Handled by Board ofDirectors appointedby shareholders

Business decision

making process

Very flexible as owner

can react very quickly

Must get agreement

from all members

Under the preview of

the Board of Directors(as stated inCompanies Act 1965& Articles ofAssociation)

Profit (or Loss) All go to owner Shared amongpartners

Distribute asdividends, another

portion will go to thecompany


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Company

Registration ofbusiness

FORM A

(FORM A1 for annualrenewal)

FORM A

(FORM A1 for annualrenewal)

FORM 13A

Certificate ofapproved registration

FORM D FORM D FORM 9 (corporatedeclarationcertificate, businesslicense)

Notification of changeof business, partners,business address

FORM B FORM B FORM 44 (notice oflegal businessaddress)

FORM 24 (notice ofshares allotted)

Termination ofbusiness

FORM C FORM C

CHAPTER 2 - BUSS MANAGEMENT TECHNO.ppt

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