FACULTY OF EDUCATION AND LANGUAGE

MAY 2012

OUMM 2103

ENTREPRENEURSHIP

STUDENT ID ID NUMBER PHONE NUMBER E-MAIL

: : : :

830323146024001 830323 14 - 6024 012 - 3602653 ( norsyakinah_sya@oum.com.my ) ( syaami_bachelor@hotmail.com )

LEARNING CENTER

JOHOR LEARNING CENTER, JOHOR

ENTREPRENEURSHIP

1.

INTRODUCTION

Macro Marine Sdn. Bhd. with the company registration number 503269-T is a company based at 39-01, Jalan Sri Perkasa 2/1, Taman Tampoi Utama, 81200 Johor Bahru, Johor. The Macro Marine Sdn. Bhd. with a paid-up capital of RM100 000.00, has started the operations since 2001. With the vision; 'To be the biggest port services provider in the country', this company provides port-related services. The services provided by this company at the port are mooring (hitch and towing the ship into port) and unmooring, stevedoring (load and unload cargos from the cargo ships using the cranes) and also lashing (tie the cargos with each other to the body of the ship to ensure the cargos are stable in the ship) and unlashing. All these are the process and procedures that should be done at the port. This company provides their services at Port of Tanjung Pelepas (PTP) in Gelang Patah, Asean Tanker Terminal Tanjung Bin (ATB) in Tanjung Piai, Pontian and at the West Port and Nort Port in Klang, Selangor. The Macro Marine Sdn. Bhd. is a private limited company by shares with three major shareholders who are acted as the Board Directors of the company. One of the Board Directors is Tuan Haji Suhaimi bin. Salleh. For our information, private limited company by shares is a company formed on the principle of having the liability of its members limited by the memorandum to the amount (if any) unpaid on the shares respectively held by them and most company in Malaysia are private limited company by shares. According to Tuan Haji Suhaimi, this company which has started its operations since 2001 has been registered with the Registrar of Companies (ROC) under the Companies Act 1965 (Act 125). He also explained that Macro Marine Sdn. Bhd. has nearly 200 permanent workers with the expertise and skilled in their respective fields (refer Diagram 1). This company also estimated that nearly 2000 contract workers have been employed since 2001 with 60% of them were locals and 40% are workers from Nepal. The Macro Marine Sdn. Bhd. has begun its operations at the Port of Tanjung Pelepas (PTP) (refer Diagram 2). Through the various subsidiaries, this company also provides the port terminal operation services, transportation services and storage services (the logistics services). The two subsidiaries of the Macro Marine Sdn. Bhd. are the Gerbang Resources Sdn. Bhd. and the Makro Cipta Services Sdn. Bhd. Tuan Haji Suhaimi has explained that the Gerbang Resources Sdn. Bhd. where is also operating at the Port of Tanjung Pelepas (PTP), providing
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prime mover operation services. Meanwhile, the Makro Cipta Services Sdn. Bhd. which is operated at Senai International Airport (Air Cargo Terminal) provides the ground cargo handling services. In addition, Makro Cipta Sdn. Bhd. also offering the cargos storage at the warehouse where located at Johor Port in Pasir Gudang.

Diagram 1 :Macro Marine Sdn. Bhd. organization chart.

Diagram 2: Port of Tanjung Pelepas (PTP) terminal layout.

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2. 2.1

BODY OF CONTENT Innovation In the entrepreneurship, we need to think of ways to increase profits in accordance

with customer needs and based on the latest marketing trend. The entrepreneurs out there often discuss and address matters relating to creativity and innovation which are alleged can help a company or business to be developed. Thus, what is meant by innovation? How an innovation can give a good impact in the field of entrepreneurship? First, let all of us see the meaning of the innovations: The process by which an idea or invention is translated into a good or services for which people will pay, or something that results from this process. To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need. Innovation involves deliberate application of information, imagination, and initiative in deriving greater or different value from resources and encompasses all processes by which new ideas are generated and converted into useful products. In business, innovation often results from the application of scientific or technical idea in decreasing the gap between the needs or expectations of the customers and the performance of a companys products. In a social context, innovation is equally important in devising new collaborative methods such as alliance creation, joint venturing, a flexible working hours and in creating buyers purchasing power through methods such as layaway plans. Source: Business Dictionary.com. (n.d.). Definition: Innovation. [Online]. Available: http://www.businessdictionary.com/definition/innovation.html. [2012, June 2nd]. Four Types of Innovation Invention, Extension, Duplication and Synthesis According to Entrepreneurship Module (OUMM2103), Faculty of Business and Management, Open University Malaysia (OUM) stated that Kuratko and Hodgetts (2004) had mentioned that there are four basic types of innovation; invention, extension, duplication and synthesis. Reference from Entrepreneurship Module (OUMM2103), Faculty of Business and Management, Open University Malaysia (OUM) stated that invention is the act of creating a new product, service or process that is totally novel or untried. Moreover, invention is; New scientific or technical idea and the means of its embodiment or accomplishment. To be
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2.2

patentable, an invention must be novel, have utility and be non-obvious. To be called an invention, an idea only needs to be proven as workable. But to be called an innovation, it must be replicable at an economical cost, and must satisfy a specific need; the Business Dictionary.com. (n.d.) Definition: Invention. An example for invention is the radio which has been found by Guglielmo Marconi an Italian inventor in 1895 (About.Com. (2012), The Invention of Radio). According to Entrepreneurship Module (OUMM2103), Faculty of Business and Management, Open University Malaysia (OUM) describe the extension as the expansion or addition to existing product lines, services or process with example the company of Samsung which is well known for electric and electronic products, extending its business to automobiles. Refers to Entrepreneurship Module (OUMM2103), Faculty of Business and Management, Open University Malaysia (OUM), the next one we have duplication which is meant the process of replication of existing product, services or process. Duplication does not mean simply copying, but adding new features or improving competitiveness of the product, services or process. For example, the function of camera is to snap the photos but now we also can record the videos and voices or even edit the photos just using the camera. The last type of innovation is synthesis. Synthesis is a systematic combination of otherwise different elements to form a coherent whole. It is also a process in which substances combine to form completely new substances or duplicated natural products (the Business Dictionary.com. (n.d.) Definition: Synthesis). For an example the hybrid electrical vehicles are the combination between an internal combustion engine and one or more electric motors.

2.3

Innovation Adopted by Macro Marine Sdn. Bhd. Through the four types of innovation described earlier, Macro Marine Sdn. Bhd. has

adopted a number of innovations to improve profitability and enhance the quality of services offered to their customers. In the early stages before establishing Macro Marine Sdn. Bhd., Tuan Haji Suhaimi together with his two partners have been doing research and study for a month on the operating of lashing and unlashing (refer Photo 1 and Photo 2) at Johor Port, Pasir Gudang. Then, they learnt and developed plans to identify the needs and the costs of the operations. By duplicating the operation concepts, next Tuan Haji Suhaimi and his partners set up and registered the Macro Marine Sdn. Bhd. and start their port-related services.

Photo 1: The lashing operation system.

Photo 2: The equipments use to do the lashing operation. In the a few months of operation, Tuan Haji Suhaimi and his partners increased the services to the company's operations for mooring and unmooring services (refer Photo 3 and Photo 4) and stevedoring. To run the mooring and unmooring services, Macro Marine Sdn. Bhd. has invested in three mooring boats in accordance with standards and specifications set by the port. However, Macro Marine Sdn. Bhd. had made modifications to the mooring-boats by changing the material used for making the mooring-boats floor. A standard material used to make the floor of mooring-boats is fiberglass (including the body parts of mooring-boats), but then it was changed by using stainless steel. Modifications to the floor of mooring-boats
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which can be regarded as an innovation has resulted in a lower floor of mooring-boat (for stainless steel is heavier than fiberglass) and it allows to be in a stable position at on the sea upon received the effects of wave caused by the movement of cargo ships. The stability of the mooring-boats (refer Photo 5) on towing the cargo ships, indirectly ensuring the safety of the crews who worked on it and according to Tuan Haji Suhaimi, this concept is the first kind in Malaysia. For our knowledge, Macro Marine Sdn. Bhd. operates these services for the cargo ships where are coming from all over the world.

Photo 3: The mooring-boat is on operation.

Photo 4: The mooring-boat is unmooring the cargo ship to the sea.

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Photo 5: The mooring-boat is nearing the cargo ship.

As the port operation services run smoothly and is doing very well, the Macro Marine Sdn. Bhd. has developed two of its subsidiaries. As have been explained in the introduction, two subsidiaries of the Macro Marine Sdn. Bhd. are the Gerbang Resources Sdn. Bhd. and Makro Cipta Services Sdn. Bhd. As explained by Tuan Haji Suhaimi the Gerbang Resources Sdn. Bhd. where is operating at the Port of Tanjung Pelepas (PTP), providing the prime mover operation services (refer Photo 6). To ensure the operation on smooth, Gerbang Resources Sdn. Bhd. and the PTP has been using information technology to connect all port users with one another. This system has helped importers and exporters, shipping agents and the port to communicate or convey information more efficiently and quickly without using large quantities of paper. Furthermore, the information technology system had shorten the time taken to load or unload cargos from a mother vessel (a big cargo ship which can upload with 8000 TEU Twenty Equivalent Units) within 24 hours compared before almost 48 hours. In supplemented with dock management, planning areas and planning board had been determined by a computerized system to improve the productivity.

Photo 6: There are 44 quay-side crane uses for the stevedoring operation (load or unload cargoes). The Makro Cipta Services Sdn. Bhd. where is operated at Senai International Airport (Air Cargo Terminal) provides the ground cargo handling services. If we noted, the original establishment of the Macro Marine Sdn. Bhd. is providing the operating services at the port. But when the subsidiary of Makro Cipta Services Sdn. Bhd. established, it has shifted slightly from the original concept by providing management services for air cargo operations. This indicates that the Macro Marine Sdn. Bhd. has expanded his legacy in providing multiple services. With the sea and air cargo operations services, it paved the way for these companies to provide cargoes storage services in warehouses owned by this company based in Johor Port, Pasir Gudang. Macro Marine Sdn. Bhd. also was started its operations at Asean Tanker Terminal Tanjung Bin (ATB) in Tanjung Piai with mooring and unmooring services. The ATB's strategic position (1 20 52.02 N, 103 32 03.80 E) and proximity to the Port of Tanjung Pelepas (PTP - 1.3663 N, 103.5484 E) facilitating the smooth running of operations (refer Diagram 3). ATB (VTTI is owned 50% by the Vitol Group, the international energy trading group, and 50% by MISC Berhad of Malaysia), which began its operations in early 2012 ago has opened up opportunities to Macro Marine Sdn. Bhd. to expand his legacy and currently, Macro Marine Sdn. Bhd. is bidding for a project for the coal power handling.

Diagram 3: The location of the Asean Tanker Terminal Tanjung Bin (ATB) (A) between the Port of Tanjung Pelepas (B).

2.4

Sources of Innovation Based on the Entrepreneurship Module (OUMM2103), Faculty of Business and

Management, Open University Malaysia (OUM) stated that there are four sources for entrepreneurs (Drucker, 1985; Kuratko and Hodgetts, 2004) that are from the unexpected events, new-knowledge concept, changes of demographics and process needs. The unexpected events are when things go unnoticed or unplanned. In year 2008, around the world were shocked by the United States economic crisis which that country is a world superpower. That unexpected economic crisis has resulted in commercial activities, particularly imports and exports which have declined sharply. As the United States is one of the main countries of export and import activities to the Port of Tanjun Pelepas (PTP), has resulted in the activities of the country is reduced. As a result of that, the management of Macro Marine Sdn. Bhd. with other companies has taken immediate action to change the operating strategy in the port. Among of the strategy is to accept incoming cargo ships from West Asia, East Asia and Europe which mostly landing at Port Klang before. This strategy

changes has forced each board of directors of Macro Marine Sdn. Bhd. and several other companies to improve their operation for 24 hours (by shifts). Stabilizing the mooring-boats by changing the material used to make the floor of mooring-boats has caused a good impact. The floor of mooring-boat that was originally made of fiberglass has been replaced with a floor made of stainless steel. This innovation was derived from the sharing of knowledge from business partners, reading books related to the shipping and several other sources, which eventually merged into one thread of innovation. In addition to the production of this innovation, the Macro Marine Sdn. Bhd. do not neglect on the safety of boats and crews that will operate it. This company always alert to these modifications where it do not violate the standard specification of the mooring-boats requirements. As a result, the three mooring-boats owned by Macro Marine Sdn. Bhd. that has been modified are still operating at the Port of Tanjung Pelepas. The existence of Air Cargo Terminal at Senai International Airport has made it possible for Macro Marine Sdn. Bhd. through the Makro Cipta Services Sdn. Bhd. to begin their operation of air cargo services. The trend of delivering cargoes through the air services which is faster than through the sea transportations, becoming the choice of exporters and importers to make delivery. This situation provides more opportunities for Tuan Haji Suhaimi with his partners who also owned the Makro Cipta Services Sdn. Bhd. to diversify the types of services for their company. This opportunity also allows this company to hire and increase the number of employees. The increasing of cargo delivery services by sea and air, gave an idea to the partners of the Makro Cipta Services Sdn. Bhd. to provide storage of cargoes in warehouses based in Johor Port, Pasir Gudang. The cargoes are stored in the warehouse while waiting to be distributed according to the delivery locations. The need to provide warehouse storage services is due to popular demand by importers and exporters who make the cargo shipments either by sea or air routes. With the increase in services offered by Macro Marine Sdn. Bhd. and through its subsidiary of Gerbang Resources Sdn. Bhd. and Makro Cipta Services Sdn. Bhd. have been spreading their services in several major ports in Johor (sea and air ports).

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3.

CONCLUSION

Overall, from the description and presentation above, let me conclude here that the production of an innovation for an entrepreneurial company is required from time to time depending on the clients' needs as well as changes in the global economy of the big countries. Production of innovation through four types of invention, extension, duplication and synthesis is needed to increase profitability and improve the quality of products or services produced by the company as have been done by Tuan Haji Suhaimi and his partners through the Macro Marine Sdn. Bhd. and the other two subsidiaries; Gerbang Resources Sdn. Bhd. and Makro Cipta Services Sdn. Bhd. These companies use almost all the four types of innovations. Although these companies do not produce products for consumers, but the cargoes operating services provided is valid and in accordance with customer requirements and operating standards set by Malaysia Shipping. Ideas and innovation resources also inspired and used by Macro Marine Sdn. Bhd. and its subsidiaries through the unexpected events, new-knowledge concepts, changes of demographics and the process needs is a platform or engine for companies owned by Tuan Haji Suhaimi and his partners to propel their companies to a higher level and wide. May the mission of these companies to be the biggest port services provider in the country will be comes true.

(2711 words)

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4. 4.1

APPENDIX About.Com. (2012). The Invention of Radio. [Online]. Available:

http://inventors.about.com/od/rstartinventions/a/radio.htm. [2012, June 4th].

4.2

Ancillary Services. (n.d.). Lashing & Unlashing: List of Company. [Online]. Available: http://www.pka.gov.my/ancillary/paparcom.php?idanc=5. [2012, June 4th].

4.3

Business Dictionary.com. (n.d.). Definition: Innovation. [Online]. Available: http://www.businessdictionary.com/definition/innovation.html. [2012, June 2nd].

4.4

Business Dictionary.com. (n.d.). Definition: Invention. [Online]. Available: http://www.businessdictionary.com/definition/invention.html. [2012, June 2nd].

4.5

Business

Dictionary.com.

(n.d.).

Definition: Synthesis.

[Online]. Available:

http://www.businessdictionary.com/definition/synthesis.html. [2012, June 2nd]. 4.6 Iskandar Malaysia. (2009). Human Capital (HC) Network: Employer Details. [Online]. Available:

http://www.imhcnetwork.com.my/hrp/employmentOpportunity/companyDetail?comp anyId=503269T81200. [2012, June 5th]. 4.7 Norashidah Hashim. et. al. (2011). Faculty of Business and Management:

Entrepreneurship Module (OUMM2103) (14th printing). Selangor: Open University Malaysia (OUM). 4.8 PTP (Port of Tanjung Pelepas). (2008). Gallery: Photo Gallery. [Online]. Available: http://www.ptp.com.my/gallery.aspx. [2012, June 5th]. 4.9 The Commissioner of Law Revision, Malaysia. (2006). Laws of Malaysia (Reprint): Act 125 Companies Act 1965. [Online]. Available:

http://jpt.mohe.gov.my/RUJUKAN/akta/akta%20syarikat.pdf. [2012, June 4th].

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4.10

The Commissioner of Law Revision, Malaysia. (2006). Laws of Malaysia (Reprint): Act 614 Companies Commission of Malaysia Act 2001. [Online]. Available http://www.agc.gov.my/Akta/Vol.%2013/Act%20614.pdf. [2012, June 4th].

4.11

VTTI.

(2012).

About

Us:

Overview.

[Online].

Available:

http://www.vtti.com/aboutus_01.php. [2012, June 6th].

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