MAF 640

a)      Discuss the impact of 2 relevant general environment segments on the newspaper industry.

·         Declined in sales- changes in reader  behaviors and  growth rate of internet use, e-commerce and online publishing has exceeded all expectations, were caused more people attractive to use online system to read newspaper and these will give the impact of demand for newsprint and printing.

·         Customer Preference – now days all, people more easier to get information via internet. More people are comfortable to use online to get information. By using the online newspaper, the users can access yesterday, last two day newspaper rather than physical newspaper not is sell after the day.

 

b)     Would the industrial organization (I/O) model or Resources Based Model be suitable for Daily Newspaper in formulating its strategies to achieve above- average returns? Support your answer with 2 reasons.

  I think Daily newspaper should use Resource Based Model. Daily Newspaper should review the resources allocation in the business. They should review “what can the firm do best”. In this situation Daily Newspaper should think the best business strategy how the scare resources to be used for maximum their sales target.

 

Daily Newspaper should identify the asset used in production to maximize the opportunities given by expanding their sales. By the opportunity that they have, Daily Newspaper should identify the firm resources, strength and weaknesses compared with competitors. Maybe the resources are Land, Labor, Capital and the Entrepreneur join together to run the business. The strength of DN might be can attract the reader with the hot news, up to date information and also should implement the new strategy by add some more contents in their newspaper like recipes section, hobbies section, learning progress,so by the way add some more content in the newspaper  will attract all the reader all age to buy a print news.

 

Daily Newspaper should determine the firm’s capabilities in producing the best news to attract the reader. Daily Newspaper should think what it can do better than its competitor. Daily Newspaper Capability which is capacity of an integrated set of resources to integrative performs task or activity.

 Daily Newspaper also should identify 4 attributable of resources and the capabilities of the competitive advantage:-

 

1.      Valuable – where as Daily Newspaper (DN) should exploit the opportunities or neutralized threats in its external environment.

2.      Rare – possessed by few , if any ,current and potential competitor

3.      Costly to imitate- when other firms can’t obtain them or must obtain them at a much higher cost.

4.      No substitutable-DN should organize appropriately to obtain the full benefit of the resources in order to realize a competitive advantage.

 

 

DN should locate an attractive industry. An attractive industry where as industry with opportunities that can be exploited by the firm resources and capabilities. Maybe DN should increase their market strategy to increasing their sales.

 

Select a strategy that the best allow the firm to utilized its resources and capabilities relative to opportunities in the external environment. The strategy formulation and implementation, where as the strategy action taken to earn above average return.

 

C) Explain 2 actions that Daily Berita should take to increase sales of its printed newspaper.

 

• Membership Card

By produce the membership card and give a point to the reader and the point collected by the reader, the can redeem their point into prizes. By this way will attract the reader loyalty. At the same will increase DN sales.

 

• Contest

 

Print the form contest in the print news will attract the reader to buy print news paper to participate the contest by the publisher.

MAF 640

1)      Discuss in details the impact of the technological segment in the general environment on the computer industry.

 

Technology Competitive Crush

Rapid changes in the technological in hardware, software and the equipment in the wide market were caused many variations of brand of personal computer in the market. This will lead supply exceed the demand and at the same time it will affect the price of the personal computers. These leads the competitor compete among themselves by producing more up to date product in order to gain the market.

 

Company Innovation Focus on Technology

Due to the changes of global technology, the company should established Research and Development Department to produce the product that can compete globally and produce up to date products with the competitive price.

 

 

 

 

 

2)      Do you think it was wise of Wizard Bhd to dispose its core business and acquire the retailers and manufacturer of pharmaceutical products? Discuss with 3 reasons.

 

No need to dispose their core business acquires the retailers and manufacturer of pharmaceutical products. The reason:-

·         Wizard Bhd established for 20^th years, where as they are capable and having an experience for the competition among the competitor. The solution of this problem, Wizard should take the initiative the review the business strategy that concerned the corporate level strategy in which is involves the decision about the business to grow, resources allocation among the business amount, Wizard also need to take advantage of synergies among the business and diversified the products of firms.

·         Wizard has a potential successful business strategy and became innovative fast mover in the business. The best step should be taken, Wizard Bhd should drawback top down approach whereby Wizard Bhd more responsive for rapidly changing competitive environment. Wizard also should take initiative drawback strategy planning on accurate forecasting and does not take its as unexpected events.

·         Wizard also successful acquired more than 50% of share in The Computer Mart. It shown that Wizard having a power on the company that they invested. From the share acquired, Wizard becomes a subsidiary of that company. In order to compete with the clone computer, Wizard should take initiatives to implement the high level of conceptual term and priority. To produce the effectiveness implementation, Wizard should understand functional level of the organization. The strategy should be translated into specific policies for functional areas such as Marketing, Human Resources, Research and Development, Procurement, Information Systems. By developing functional strategy help Wizard to identify the required resources and made a necessary changes.

 

 

3)      Which type of the multidivisional structure would be suitable for Wizard Bhd increasing the diversification: Mobile Communication, Real Estate Development and Pharmaceutical products? Explain 3 reason to support your choice.

 

I think, Wizard should choose Mobile Communication in the diversified business.

The reasons are:-

• To grap market opportunity, due to rapid changes in the technologies, Wizard should the opportunity to participate unified communication where as the system allow the users to access the communication from any phone @ PC .So the impact of this, will increase sales of phone and at the same time also increase sales of computer.
• To improve communication and business strategy, when diversified the products from the computer to mobile communication, allow Wizard to produce more innovative product to enhancement of IT rapid changes. A mobile communication product becomes a complement product.
• No need to set up new strategy for the company. It is because Mobile Communication business has a same line business that focusing on the up to date hi tech equipment.  

 

 

 

 

 

 

 

 

 

 

 

PBL 2 - Part 1

PBL 2-Part 1

 a)      Disbursement Voucher

-is a document available in the financial information system that is utilized to     disburse fund to the outside.

-the disbursement voucher prepare once receiving of goods and approving the invoice together with related document that received earlier by the account payable.

-Disbursement voucher is for Internal Source

-Number of copies needed: - 1 copy only

-Purpose for issued the Disbursement Voucher is for authorizes payment of invoices before payment is made.

 

 

b)     Packing Slip

-Packing slip / customer receipts is a shipping document that a company’s delivery packages usually inside attached shipping pouch @ inside the package itself.

-Packing Slip is for Internal and External Sources

-Number of copies needed: - 2 Copy (one for Customer and One copy for Internal Control).

     

c)      Invoices

-is the commercial document issued by the seller to the buyer indicating the products and services. Also indicate that payment is due from the buyer to the seller according to the payment term.

-Packing Slip is for Internal and External Sources.

- Number of copies needed: - 2 copies (original keep by Accounts Dept and One copy for customer).

 

d)     Receiving Report

-the receiving report is the documentation by the department of what good and services have actually been received on the particular PO. This documentation serves as the authorization for payment good and services.

-this report to check the validity checks on vendor, items and employee number and the completeness check.

-Receiving Report is for Internal Source

- Number of copies needed:-3 (One for Accounts Payable, One copy for Purchasing Dept and Keep in File for internal control.

 

e)      Purchase Order

-commercial document issued by a buyer to the seller, indicating the type, quantities and agreed price for product and services that seller will provide to the buyer.

-this document to check the validity item number and vendor number, limit for amount credit and completeness checks.

 - Number of copies needed:-5copies

Ø      One copy for vendor

Ø      One copy for accounts payables

Ø      One copy for receiving dept

Ø      One copy for Requesting Department

Ø      One copy for Purchasing Dept.

COMPENSATION AND BENEFIT

COMPENSATION AND BENEFIT

 Compensation- literally means payment for work done such as earnings, emolument, fee, hire, pay, remuneration, salary, stipend, wage. It can also be defined as something given in exchange for goods or services rendered: consideration, payment, recompense, remuneration.

Benefit literally means a payment made or an entitlement available in accordance with a wage agreement, an insurance policy, or a public assistance program. It also carries the definition of something that contributes to or increases one's well-being: advantage, good, interest (often used in plural), profit.

Nature of Compensation

 It can be divided by 2 types:

1)      INTRINSIC- include praise completing a project or meeting performance      objectives Other physiological and social effects of compensation reflect the intrinsic type of rewards.

 

2)      EXTRINSIC-rewards are tangible and take both monetary and non    monetary forms. It can be direct and indirect .The direct compensation, the employer exchanges monetary rewards for work done. Example of  Direct compensation  includes Base Pay (Wages and Salary) ,Variable Pay (Bonuses, Incentives , Stock Options) and Indirect  includes Benefits (Medical ,Insurance, Paid Off Time, Retirements/Pensions, Workers Compensation ).

 

Compensation Philosophies

 2 Basic compensation –

Ø      Entitlement Philosophy -by giving automatic increases to their employees every year practice the entitlement philosophy.

Ø      Same percentage increase every year.

Ø      Employees and the manager who subscribe this entitlement philosophy believe that individuals who have worked another year are entitled to a raise in base pay.

Ø      And also they believe all incentives and benefit programs should continue and be increase.

Ø      Pay increase are referred to as cost of living raised.

Ø      Performance Orientation – the situation  where the organization do not guarantee additional or increased compensation simply completing another year of organization service.

Ø      Employee who perform well receive larger compensation and who do not perform satisfactorily see  little or no increase in compensation.

Ø      From this method, will motivate the employee to perform at satisfactory or better maintain or advance in relation to market compensation level.

LAW 495 - Consider to what extent a 3rd party dealing with a company is protected by Section 20 of the Companies Act.

Consider to what extent a 3^rd party dealing with a company is protected by Section 20 of the Companies Act.

 

Before company incorporated Section 16(1) Company Act require 2 documents, the Memorandum of Association (MOA) and Articles of Association (AOA), for the proposed company must lodged with the Registrar of Companies with the other documents. The MOA and AOA are considered as the constitution of the companies. The memorandum is the important document to set out the provision mainly concerned with the relationship between the company and the outsider, the extent of the member’s liability and also the objects and power of the company. These matters are of the interest not only to the present and the future members, but also for those who are interested to do the business with the company. In the other hand, the articles refer to the internal regulations of the company with  concern the company and dealing with the members. If a company limited by share does not lodge its own articles then it may adopt Table A of the Fourth Schedule.

One of the requirements of MOA under Section 18(1) is the object clause of the company. The object clause tells us the extent of the power and legal capacity of the company. A company is a legal creation, has the capacity to act according to what is set out by the objects clause. When a company acts beyond what that objects clause have allowed, their acts are considered as ultra vires and therefore considered void. To allow a company to undertake other activities in future and avoid the activities from being ultra vires , normally a memorandum should have some objective . If there are more objectives it means that a company can be involved in a wider range of the activities. To prevent abuse by allowing multiple objectives, the court has classified the objects clause into 3 main classifications:

      The main objects clause or Independent Objects Clause

      The Incidental objects or Dependent Objects Clause

      Power-consequential to the stated objects.

 

It is important for the company to enter into transaction that is within it object clause. This is because the company cant do anything that is not authorized by the object clause in MOA  or else that act is ultra vires the company and one that entered into in breach of directors duties. A company cannot ratify an ultra vires but can approve of an act that was unauthorized or irregular. As a 3^rd party deal with the company him/her should know at what extent law will protect him/her with the company and also should know the legal effect of ultra vires to him/her as 3^rd party.

 

The legal effect of ultra vires contract can be divided into 2 parts which is under Common Law and Companies Act. Under Common Law , an act or transaction is ultra vires is done outside the object clause , such transaction was void and did not bind the company and also did not have any legal effect . Even though all the members approve the contract, but are still cant make an ultra vires contract or act is valid and make it binding on the company.

The application of ultra vires  in  Common Law  , we can refer to case of Ashbury  Railway Carriage & Iron V Riche (1875). In this case, the company object clause to sell or lend on hire, railway carriages and wagons and all kinds of railway plant, fittings, machinery and rolling stock and to carry on the business as mechanical engineers. The company bought concession to build a railway in Belgium, subcontracting work to the defendant. Later the company refused to carry out the contract. The court held that constructing a railway was not within the company’s object and so the company did not have the capacity to enter into the concession contract or sub contractor. Therefore, the contract was void for ultra vires and the defendant had no rights to damages for breach. The member also can’t ratify it and the company could neither enforce nor forced into performing its obligations. The strict application of the doctrine often create problems because it became a convenient excuse for the company to avoid legal obligations and were caused frustrating 3^rd parties from obtaining legal right under a contact.

In this case, it shows that ultra vires doctrine give protection more to shareholders and creditors. The shareholder is the one who provide the capital by the way of investment. Therefore, it is important for them that company did not do activities or businesses that are outside from its object clause specified in the MOA. Creditors also are protected because an ultra vires doctrine ensured the funds of the company were applied only to the stated objects of which creditors were aware. But, how about other party such 3^rd party who deals with the company? Are they being protected such protections given to shareholders and creditors?

Under common law, 3rd party who deal with the company is not protected. This will create an injustice business scenario. Because of this, Section 20 of the Companies Act is introduction in Malaysia and eliminates the used of Common Law. Before Section 20 of Companies Act is used, which is under common law, 3^rd party interest is not protected. How all parties want to know whether the company they dealing with is doing business within company object clause? It is not realistic to expect all parties dealing with the company to examine the company memorandum. It would impose a great inconvenience and hinder normal business practice. This is giving a party to responsible to the contract and avoid legal obligation or to prevented the enforcement of legal right under a contract. A simple word can say that a common law is not providing justice to 3^rd party dealing with the company. So, changes in Section 20 of Companies Act are giving more protection to 3^rd party.

Section 20(1) specifies company relationship with 3^rd party. It states that ‘no act or purported act of a company (including the enter into the agreement by the company under purported authority, whether express or implied, of the company) and no conveyance of transfer of property, whether real or personal, to or by a company shall be invalid by reason only of the fact that the company was without capacity or power to do the action   or to execute or to take conveyance or transfer. This means even though the company enters to the contact is not within its object clause contract is still binding upon a company. Therefore, a company cannot refuse to perform a contract or transaction just because of no capacity. The other party also cannot get of out a transaction by showing that transaction is ultra vires the company. Form the situation of 3^rd party will protected in Section 20(1) of the Companies Act  if his / her intend to deal with the company even though the transaction is ultra vires and also his/her cant get out of that transaction just because it is an ultra vires contract.

Under Section 20(2) (a) a member or debenture can restrain the company carrying out the ultra vires contract before it is fully performed. If the company is restrained from acting upon the contract, it will be in breach of the contract. In this section provide that proceeding against the company by any member of the company or where the company has issued debentures secured by floating charge over all or any of the company property, by the holder of any those debentures or the trustee for the holder of those debentures to restrain to doing any act or acts or the conveyance or transfer of any property to or by the company. This is where any shareholder or debenture holder whether secured by floating charge or trustee can apply to the court to stop a company to performing and fully performing an ultra vires contract. This is due to they are who one to provide the capital or fund to the company and surely include in the MOA. But, where an ultra vires transaction is sought to be restrained under Section 20(2)(a) by the court, it has to satisfied two conditions which is under Section 20(3).

First condition that must be satisfied is all parties to the contract must be parties to action court. For example : If En Azmizi  is one of the shareholder of PCR Bhd apply to court to stop the company from performing the ultra vires . When he apply to court, all parties to such contract with PCR Bhd and A (3^rd party) must be a parties to court action. And second condition is court must find just and fair to make such order. When a court make the order , court  may allow compensation to be paid either party for losses from the contract being stop. But ,court cant order for loss of profit to be paid.

Whereas Section 20(2) (b) give members, on behalf of company to sue the current and past director of the company responsible o the ultra vires act. This an exception rules of Foss V Harbottle. If the 3^rd party has been fully performed, members cant sue the directors. Member is allow to sue the contract if not perform yet or partly perform.

As a 3^rd party ,his / her deal with the company , his/her legal right will be protected by Section 20(1) of the Companies Act where the company cant escape the contract even though the ultra vires contract. Mean while, Section 20(2) (a) and Section 20(2)(b) will protects member interest in the company. Section 20(2)(a) allow member to apply to court to stop the company from performing and full performing the ultra vires contract. In Section 20(2)(b) , it said that member on behalf of the company can sue current and past director responsible to ultra vires contract. So, as 3^rd party there is fully protected.