EDUCATION AND SOCIAL SCIENCES

BACHELOR OF TEACHING (PRIMARY EDUCATION) WITH HONOURS

MEI / 2017

MPU3223_V2
ENTREPRENEURSHIP 2

NO. MATRIKULASI : 860607386676001

NO. KAD PENGENALAN : 860607-38-6676

NO. TELEFON : 017-5454067

E-MEL : [email protected]

PUSAT PEMBELAJARAN : Seberang Jaya

The definition of Entrepreneurship is job scope that chooses by individual or company to bring
good wealth. It’s the career that some choose to take risk to have good wealth. It’s involving
goods or servicing the client. Entrepreneurship is defined as the initial emergence of new
opportunities being evaluated and utilized to create good wealth (SL Nielsen, 2017 ). And the
word entrepreneur is derived from the French ‘entreprende’, meaning “to undertake. Now adays,
many of them have used innovation and creativity to build multimillion-dollar enterprises
fledgling business (Norashidah Hashim, 2014). According to Scarborough Zimmerer (1998)
defined an entrepreneur as aperson who creates a new business in the face uncertainty for the
purpose of achieving profit ang growth by identifying opportunities and assembling the
necessary resources to capitalize on them. There are many companies from various sectors in
Malaysia. I choosed Maxis Broadband Berhad as a succeed entrepreneur corporate company
and try to find out how the elements of its micro environment and how these elements affect to
this organization.

Let’s see brief explanation about Maxis Broadband Berhad. They are leading
telecommunication service provider in Malaysia which provide superior Internet experience,
make voice calls and text, and immerse themselves in 3G and 4G LTE technologies. The
company was formerly known as Binariang Berhad and changed the name to Maxis
Communications Berhad in 1999. The company was founded in 1993 and is based in Kuala
Lumpur, Malaysia. Maxis Communications Berhad is a subsidiary of Binariang GSM Sdn. Bhd.
Majority shareholders are Tan Sri Ananda Krishnan 52% and Saudi Telecom Company 25%.
According to Maxis Annual Report 2016, it have about 12 million subscribers as of the fourth
quarter of 2016 with 2400 employee (Permanent and Contract Staff). Maxis providing a variety
of communication products, applications and value added services for consumers, large
enterprises and small & medium business owners. Please refer below for some sample of service
provide by Maxis such as postpaid, Prepaid, broadband and Fiber,Managed Machine-to-Machine
(M2M), Enterprise SMS/MMS, Unity Solutions, Sure Signal (Femtocell), BOARDPAC, Mdive,
MPOS and many more IT solutions for customer.
Micro elements

There are many elements effect a business and organization. I would like to explain the
main 6 elements that’s effect and determine success of organization. The first element that
majorly influence in the company is customer. Let’s look at the definition of customer?
Customers are known as client, buyer, and purchaser or obtained from seller. Customer is the
main elements that’s determine of how success of a business. Customers are called as king in
businesses because they are playing important part in business growing. Customer satisfaction is
the main elements that always related to how success is a business. Those businesses can’t
satisfy customer will lose market share to other whom giving maximum attention to customer
satisfaction.More broadly, customers are a key stakeholder group that affects the firm’s
legitimacy and long-term survival (Simonv, 2005). Let’s look at some example impact of
customer to a business. In 2015 Maxis has offered special rebate to selected customer to avoid
port out to other operator. The words from a selected customer make the rest of the customers
complaint and not happy about the issue. Due tho this dissatisfaction; Maxis loose about 500,000
customers port out to other operator. Then, Maxis has thake immediate action by adding more
data for their existing plan and inform customer on the new action taken. After that, the company
get back than 600,000 customers within 12 months from the incident date. This shows us how
the customer is important for a business growth.
The second element would be Suppliers. The definition of suppliers would be a person,
party or organizations that provide goods, services and required support to another organization
to grow the business together. Supplier play very important role to make an organization success
why because, if the goods can’t reach client or customer when they really needed, the whole
business if fail. This will lead to bad customer satisfaction and indirectly impact future business
transaction and business growth. Choosing a capable supplier also playing very important role
for a business grow. Normally and organization will start with small task or agreement to test the
capability of the supplier and work relationship for them to go for next level. Performance of the
supplier very critical because it’s leads to sustainability of performance big organizations that
recruit them for supply goods and services.
Next, the third element are non-governments organization (NGO) is a citizen-based
association that operates independently of government, usually to deliver resources or serve
some social or political purpose. Many organizations have committed themselves to corporate
social responsibility (CSR) as one of their important tasks. Many adopt this as part of their
organizational values while some others do it as part of their corporate branding exercise. This
task is usually undertaken and managed by the corporate affairs or HR. This NGO play very
important role for a success and growth of company. How does this effect and success of
company? Most of the big organization working together with NGO to bring those needed in
community. When they involve in NGO, they also get attention from community and
government which brings good impression towards that organization. More consumers and
organization like to work together this type of company.
The fourth element would be Competitors. The definition of competitors is the
emergence of supply site competition (Rev, 1984). Competitors are the suppliers of goods and
service in the same industries. This competition is very important in the same industry to make
sure price of goods and services are reasonable. They are still industry without competitors such
as Astroentertainment industry. Astro still monopolize because no competition on the same
industry which makes they decide the price for the services. Other example in Malaysian
telecommunication industry, Maxis, Digi, Celcom and other operator are very competitive and
the price war competition always happen make the price of goods and service reasonable.
The fifth element would be financial institution. Definition of financial institution would
be is a company engaged in the business of dealing with monetary transactions, such as deposits,
loans, investments and currency exchange. Virtually, everyone living in a developed economy
has an ongoing or at least periodic need for the services of financial institutions. Financial
institution will provide organization in many ways. A company will borrow from bank to
develop their business in terms of business expansion and development. Increased diversification
in Malaysia’s economic structure, where the manufacturing and services sectors will increasingly
advance up the value chain towards higher value-added activities. Economic growth will be
increasingly driven by knowledge-intensive and more innovative industries, and a larger pool of
more advanced SMEs, with improved processes, product innovation and market outreach. This
organization will support businesses grow to next level. This are reasons normally company need
financial organization support. You’re ready to expand your physical location, to building credit
for the future, need equipment for your business, want to purchase more inventories&found a
business opportunity that outweighs the potential debt. Example Employee provident fund EPF
has 680,011,159 units o share in Maxis. Maxis have used the fund to develop their business
expansion. (Kaur, 2016)
The last element would be Government agencies. Definition of Government agencies
public agencies are state-controlled organizations. They implement the policies, laws and
programmers of the government and advise Ministers. A government agency is established by
legislation or by executive powers. Public agencies are established by either a national or central
government or a state government. In other words, public agencies exist at the Federal, State and
Local Government levels in the machinery of government. Some examples of public agencies in
Malaysia are: The Ministry of Finance; the Ministry of Health; the Ministry of Education; the
Department of Agriculture; Malaysian industrial Development Authority; the Inland Revenue
Board; Bank Negara Malaysia; Malaysian Communications and Multimedia Commission
(MCMC); and Intellectual Property Corporation of Malaysia (johnson, 2011).

Elements that’s effect micro environment of Maxis

The first element that effect micro environment of Maxis would be customers. Maxis
always use this tag line “Putting Customers first”. In other words, they are giving top priority to
customer which is the main asset on the customer success and growth for about 21 years.
Therefore Maxis always focus on customer satisfaction which will bring positive results for
customer growth and success. Maxis focus on customer-centricity is being further enhanced with
ongoing business and IT transformation efforts throughout the organization. Improving the
customer journey and this is managed through customer experience insights from Voice of
Customer (VoC) exercises as well as performance metrics and indicators such as our Net
Promoter Score (NPS). Complaint has reduce 33% since 2014 and Net promoter score has
recorded all time high at 52% (kaur, 2016)
Table 1: Net Promoter score (NPS) and Voice of customers (VOC)

This result showing improvement in customer satisfaction with the goods and service provided
gain very strong response and support from customers. Maxis taking a lot of initiative to gain
customer satisfaction such as customer loyalty program, celebrate customers birthdays, rewards
for those customers joining maxis family as customer. Please refer below pictures for maxis
initiative.

Picture 1: Customer loyalty program which bring customer satisfaction highest

Picture 3: Maxis Rewards to those joining Maxis family as customer. This applies to existing and
new customers. Maxis have almost 1000 rewards for customer to enjoy anytime anywhere.

Not only above focus satisfy customers but off course main business focus in customer needs,
wants and providing best suggestion for their technology needs. It’s means Maxis 3G and 4G
network is the strongest among all the mobiletelecommunication companies. Maxis has covered
88% of Malaysia by 4G LTE coverage. (kaur, 2016)

Table 2:Network coverage comparison by indipendent party. (Signal, 2016)

All this factor makes Maxis leads the rest of the telecommunication industy in Malaysia. Please
refer below for market share standing by all the telco industry in Malaysia. Maxis holds 39.26%
market share in Malaysia

Table 3: Market share standing by all the telco industry in Malaysia (Eu, 2016)
All above focus by Maxis make the company competitive market leader and become customers
choice. Maxis has significantly has achieved below:

 Maxis as top 10 biggest companies in Malaysia. 8th rank according to free Malaysia today
(Ng, 2014),
 Maxis recorded 12 million customer for the financial ending 2016 (KAUR, 2016),
 Maxis recorded 8.5billion service revenue. (KAUR, 2016)
 Putra Brand Award 2016 (Gold)

Maxis also impacted by many other elements. Now let’s look at the second element
which is suppliers. Maxis have been very careful in choosing their supplier. They are choosing
supplier that can follow the speed of Maxis growing. Maxis will have open tender for any work
to be done and supplies. They will do filtering on the tender and shortlist 3 suppliers. They will
call and meet few shortlisted suppliers for product demo and discussion.They will look at few
criteria before choosing the suppliers and sign an agreement with suppliers. The criteria will be,
supplier must have at least 2 years related experience in supplying services and goods, the
suppliers are the manufacturer or main supplier of the product in Malaysia. They are 2 party
involve to confirm and choose the suppliers. First is the end user of the supplies and second
would be procumbent department which will negotiating the price and fees. The suppliers will do
demo during the meeting and the decision will happen after the meeting, Maxis will request for
free trial run for 1 months period on services to make sure all works fine after implantation and
useful. The final decision will be made after the free trial period to confirm the supplies. If the
end user and Maxis satisfy with service and goods provided then the follow up discussion on the
tender price, value and quantity discussion will be done procumbent department. Example:
Maxis need alarm system to display phones in Maxis center. Maxis do open tender for the
supplier for alarm system. Maxis have chosen 2 suppliers which are CRS solution and De tag for
meeting for them to do product demo. CRS is an existing suppliers and de tag is the new
suppliers. Retail team has request for demo the product for 1 month in one of the biggest flagship
store KLCC Maxis Centre. Maxis retain team feedback about the alarm supplies and the service
if they any issue. Maxis retail has choose to use De Tag alarm system because easy to use, more
secure and instant support when needed. The deal has been seal by procument department after
negotiating price and signs the contract. Now the alarm system used by all nationwide retail
store.

The third element that are impact Maxis business will be competitors. Competitors are
good to have to maintain healthy price for the goods and services provided by them. Maxis have
few competitors which is Celcom, Digi, Umobile and now the new one Webe. Maxis has own
team to observe their competitor movements and progress. The competitors mostly reduce price
on existing package to attract more customers from other operator and throwing more data to
customers while maxis maintain the price and think what can value add on existing package
which give more satisfaction. The impact of competition for other operator is revenue lost
because they cut price and most of the existing customer change to lower plan. Maxis have work
differently focus on customer satisfaction and value add in network capability and other benefit
to make sure existing customers are maintain and gain new subscriber for company growth. This
action from maxis makes the company remain the top in telecommunication industry in
Malaysia. Maxis will remain as market leader as long customer satisfaction maintain as high as
possible even customer paid premium price for superior service and network that’s proven in
today’s situation. Example, postpaid starter plan starts at RM98 for Maxis, RM80 and Digi and
Umobile at RM78 each. The premium service and superior network help Maxis to sustain in the
top of the telecommunication league in Malaysia.

Feasible recommendation to Maxis

I would like to recommend new idea for maxis to improve which will make their position
even more stable and obtain even better market share. The 1st idea will be customer service
segment especially face to face transaction in retail store. Maxis staff current greeting is “ Hi,
welcome to Maxis, my name is XXX, how can I assist you only”. I would like to recommends to
have welcoming body language like most of the hotels using in Malaysia. This will outshine
Maxis from the rest of the competitor and make another wow factor to customers feels more
pleasant and welcoming.
1. Welcoming hotel body language that can be used to welcome customers to Maxis retail
stores as below:
My second recommendation to Maxis would be in suppliers choosing process. I would like to
suggest Maxis to have open tender and give opportunities to new and young talents instead of
taking only Experience Company to deal with. This will create new opportunity to young blood
in business line to grow and at the same time Maxis can also save cost by getting good
negotiation with new talented suppliers.The third suggestion, Maxis should make tender
advertisement more visible to get new talent or company to participate. This will reach more new
company to participate. This will benefit both where the supplier will get new business
opportunity to grow and Maxis will get new talent to work with for future. The last and fourth
suggestion will be in terms of competitors. My suggestion is to have a small price cut on the
price that Maxis offering. Why this suggestion? Maxis already market leader in market share
with the starter plan RM98, if Maxis reduce the package price now maybe 5%, more customer
will come to Maxis from other competitors because quality of network and service provided by
Maxis way far better from other competitor. Those customers concern on the pricing will turn to
positive indirectly mobile number portability MNP will increase, Total subscribers will increase
and Maxis will monopolize market share far ahead of other competitors.

Summary

At last, as i understand about the micro elements are took main role in a business growth;
the entrepreneurs must give more attention on that. after know well I would like to summarized
main four key elements that gives most impact to Maxis. They are customer, suppliers,
competitors and financial institution play very important roles to determine the success of a
business. The key points for Maxis would be ‘Putting the customer first”. They are determining
success as long they are being our loyal as customers. The second key words will be “Providing
best solution for customers’ needs and demands”. Maxis will remain un-touch as market leader
when they focus to give the best solution to customers. Third one would be “identify new talent
for future business operation”. This key point is to explain on supplier portion where maxis
always needed new talented and futuristic growth. The last key points will be competitor’s part.
“Be the first to introduce new product or services and innovative”. These will make Maxis an
outstanding service provider compares to the rest of the competitors.

( 2887 words )
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