Scribd
Upload
360 views3 pages

Asian Entrepreneurship and Innovation: Class Activity

Awang, a skilled machinist, is offered the opportunity to buy his employer Daud's machine shop after working there for 12 years. While Awang has strong technical skills and is respected by employees, he lacks business experience. To succeed, Awang will need to leverage his creative, leadership and passionate qualities while avoiding self-doubt. He should seek business education and guidance from Daud to overcome his lack of experience managing the financial side. Taking strategic, focused steps around planning, education and advice will help Awang avoid common small business pitfalls and maximize his chances of continuing the shop's success.

Uploaded by

Banana Q
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
360 views3 pages

Asian Entrepreneurship and Innovation: Class Activity

Awang, a skilled machinist, is offered the opportunity to buy his employer Daud's machine shop after working there for 12 years. While Awang has strong technical skills and is respected by employees, he lacks business experience. To succeed, Awang will need to leverage his creative, leadership and passionate qualities while avoiding self-doubt. He should seek business education and guidance from Daud to overcome his lack of experience managing the financial side. Taking strategic, focused steps around planning, education and advice will help Awang avoid common small business pitfalls and maximize his chances of continuing the shop's success.

Uploaded by

Banana Q
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Asian Entrepreneurship and Innovation

CBP 100

Class Activity

Awang's Dilemma

Awang was a real craftsman when it came to being a machinist. Awang had learned almost all
that he knew from Daud, his first and only employer. Awang was married and had three young
children. He was 33 years old and had worked for Daud ever since he finished his tour in the
Army. In 12 years, Awang had polished his skills under the watchful and critical eye of Daud.
Daud was quick to recognize Awang's talent for the trade. Awang had a positive attitude about
learning and displayed a drive for perfection that Daud admired.

Daud's Machine Shop was a successful small business. Its success was based mostly on the
reputation for quality that had been established over its 42 years in operation. Daud had come to
this country with his new wife, Salmah, when he was in his late twenties. Now the business was
a success, but Daud remembered the early years when he and Salmah had to struggle. Daud
wanted the business to continue to produce the highest quality craftsman products possible. On a
Friday evening, he called Awang into his office at closing time, poured him a cup of half-day-old
coffee, and began to talk with him about the future.

"Salmah and I are getting old, and I want to retire. It has been 42 years of fun, but these old
hands need a rest. In short, Salmah and I would like you to buy the business. We both feel that
your heart is in this craft and that you would always retain the quality that we have stood for."
Awang was taken back by the offer. He, of course, knew Daud was getting older, but had no idea
Daud would retire. Awang and his wife, Timah, had only RM4,200 in the bank. Most of Awang's
salary went for the normal costs of taking care of his three children. Daud knew Awang did not
have the money to buy the business in cash, but he was willing to take a portion of the profits for
the next 15 years and a modest initial investment from Awang.

Awang had, for the past four years, made most of the technical decisions in the shop. Awang
knew the customers and was well respected by the employees. He had never been involved in the
business side of the operation. He was a high school graduate but had never taken business
courses. Awang was told by Daud that even after deducting the percentage of the profits he
would owe under the sales agreement; he would be able to almost double his annual earnings.
Awang would have to take on all the business functions himself because Timah had no business
training either.

1
Read the mini case above and answer all the questions.

Question 1

Which entrepreneurial characteristics does Awang have that may be important to his success?
(10 marks)

Creative and innovative characteristic


“Awang had, for the past four years, made most of the technical decisions in the shop” that
means Awang have creative and Innovative characteristic, and that characteristic will be
important to Awang success because he will know how to make a technical decision and
value for his product and that make his business better than the competitor.
Leadership characteristic
“Awang knew the customers and was well respected by the employees”. That means
awang have Leadership characteristic that can make his employees respect to him
and have a good relation with the customer.
Passionate and focused characteristic
Awang have Passionate & Focused characteristic that will be important to his success. We
can see from that case, that Awang had a positive attitude about learning and displayed a drive
for perfection that Daud admired and always retain the quality that Awang and Daud have
stood for. Passionate & Focused is really important for be an Entrepreneur because when we
s tarting to plan our bus ines s, if we don’t passionate and focus ed that Business
Planning it just a plan.

Question 2

Which characteristics could lead to Awang’s failure and why?


(10 marks)
1. The self-doubt and afraid to take a risk characteristic could lead Awang's failure. Because
Awang already have a good characteristic like passionate & focused, creative, and
leadership, but if he has a doubt for himself and afraid to take a risk.
2. Lack of experience/ relevant knowledge - He had never been involved in the business
side of the operation. He was a high school graduate but had never taken business
courses.
3. Too perfect - This can cause delays and costs in the business as he will always never
satisfy on the work and repeated doing all over again.

2
Question 3
What steps should Awang take to avoid the pitfalls common to a small business?
(10 marks)
1. Manage time to focus on the areas that will move your business forward. It can refer to
strategic plan with weekly, monthly, quarterly, and annual goals. When a situation arises,
ask yourself if it will contribute to your bigger plan. If not, leave it until you have more
time to think strategically or be prepared to let it go.
2. Taking a business course to enhance his knowledge
3. Awang should ask Daud for business advice or guidance

(Total 30 marks)

You might also like