CODE:BBA 1004

SMALL BUSINESS MANAGEMENT

ASSIGNMENT

NAME : CHOOI WAI KUAN

NRIC : 910227-14-5486

STUDENT ID : 201126

H/P NUMBER : +60176568281

EMAIL ADD. : yenny_j@kimo.com

NAME OF LECTURER: MR CHONG KAR YUN

ZONE NO : A 074

NOVEMBER SEMESTER 2011

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TABLE OF CONTENT

NO TITLE PAGE NUMBER

1.0 INTRODUCTION 3-8

2.0Advantages and Disadvantages of

Business Entity Types Sole Proprietorship Partnership Public Company

9-22

3.0Case Study of Optimax Malaysia 23-26

4.0 Competitive Edge of Optimax Malaysia

27-28

5.0 Conclusion 29-31

6.0 References 32

7.0 Coursework 33-36

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1.0 INTRODUCTION

There are many types of business entity defined in the legal systems of various

countries. These include corporations, cooperatives, partnerships, sole traders, limited

liability company and other specialized types of organization. 

The basics of setting up a business entity in Malaysia isn’t so difficult to

understand. There are three different types of business entities are Sole Proprietorship 

which is also known as Sole Trader, Partnership business entity and Limited

Company (SDN. BHD. or Sendirian Berhad or BHD. or Berhad)

A company is a legal entity that is separate and distinct from its members and

shareholders. When a company is formed, it is said to have become "incorporated". A

company is capable of owning property, making contracts, employing people and being

sued or of suing.

What is a Sole Proprietorship? 

A sole proprietorship, also known as the sole trader or simply a proprietorship, is

a type of business entity that is owned and run by one individual and in which there is no

legal distinction between the owner and the business. The owner receives all profits

(subject to taxation specific to the business) and has unlimited responsibility for all losses

and debts. Every asset of the business is owned by the proprietor and all debts of the

business are the proprietor's. This means that the owner has no less liability than if they

were acting as an individual instead of as a business. It is a "sole" proprietorship in

contrast with partnerships.

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Like many other countries out there, the Sole Proprietorship business entity in

Malaysia is owned solely by one individual, as his/her liability is unlimited.

What unlimited liability means is: If a business fails or is declared bankrupt, creditors can

sue the sole proprietory’s owner for all debts owed to respective merchants. This means

personal assets, personal income and employment income are all liable.

A sole proprietor may use a trade name or business name other than his or her

legal name. In many jurisdictions there are rules to enable the true owner of a business

name to be ascertained. In the United States there is generally a requirement to file

a doing business as statement with the local authorities.[1]In the United Kingdom the

proprietor's name must be displayed on business stationery, in business emails and at

business premises, and there are other requirements.

A sole proprietorship can hire any number of employees. Because the law makes

no distinction between you, the sole proprietor, and the business, you are not considered

an employee. Sole proprietorships may also hire any number of independent contractors.

What is Partnership?

A partnership is commonly formed where two or more people wish to come to

together to form a business. The “Partnership” business entity is a joint-entity holder with

two or more persons to carry out a legal business in Malaysia. . The Companies

Commission of Malaysia requires that partnership entities must comprise of at least two

members and a maximum twenty members.Perhaps they have a common business idea

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that they wish to put to the test or have realised that their skills and talents compliment

each others in such a way that they might make a good business team

Forming a partnership seems like the most logical option and, in some cases, it is.

Running a small business with a reasonably low turnover, a partnership is quite often a

good choice of legal structure for a new business. The way a partnership is set up and run

as well as the way it is governed and taxed often make it the most appealing form of

business.

Partnerships, unlike sole proprietorships, are entities legally separate from the

partners themselves. In a general partnership, however, profits and losses flow through to

the partners’ tax returns.

Each general partner has equal responsibility and authority to run the business.

Each partner should be involved in day-to-day operations of the business, and should

make management decisions. Any partner may represent the business without the

knowledge of the other partners—the actions of one partner can bind the entire

partnership. If one partner signs a contract on behalf of the partnership, the general

partnership and each partner are responsible for that contract. The shared ownership

concept that characterizes a business partnership gives it certain distinct advantages and

disadvantages.

Partnerships are relatively easy to establish; however time should be invested in

developing the partnership agreement. In a partnership agreement, the following

arrangements, among others, should be spelled out how the business will be financed,

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who will do what work ,what happens if a partner dies and what happens if one or both

partners want to dissolve the partnership.

It is strongly recommended that an impartial attorney be contacted to write the

partnership agreement. Here's how to find the right attorney.

What is a Public Company?

A public company or publicly traded company is a limited liability company that

offers its securities (stock/shares, bonds/loans, etc.) for sale to the general public,

typically through a stock exchange, or through market makers operating in over the

counter markets. A Limited Liability Company (LLC), quite simply is a company whose

liability is limited. a limited company is a type of company which when set-up allows an

entrepreneur to keep their own assets and finances separate from the business itself. This

means that people who have invested in the business (the shareholders) are only

responsible for any company debts up-to the amount that they have invested and no more.

It is therefore a good way for a business to get investment and run without risk to a

personal wealth. This is separate and distinct from a Government-owned corporation

which might be described as a publicly-owned company. A company that has issued

securities through an initial public offering (IPO) and is traded on at least one stock

exchange or in the over the counter market. Although a small percentage of shares may

be initially "floated" to the public, the act of becoming a public company allows the

market to determine the value of the entire company through daily trading.  

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There are three types of companies - A company limited by shares where the

members personal liabilities are limited to the par value of their shares, a company

limited by guarantee where the liabilities of the members will be restricted to the amount

each agrees to contribute to the assets of the company in the event of dissolution or

liquidation and an unlimited company where there is no limit to the members liabilities.

Company limited by shares is the most common type of company structure in

Malaysia. Companies limited by shares falls into two categories - Public limited

companies and Private limited companies.

A Private limited company cannot sell shares to the general public. The name of

private limited company ends with the word "Sendirian Berhad" or abbreviation "Sdn.

Bhd.".

Public limited companies raise capital by selling shares and are run by a board of

directors elected by shareholders. They show their status by using the abbreviation

"Bhd." or the word "Berhad" after their name.

Public limited companies can only offer shares to the public if a prospectus which

complies with the requirements of the Companies Act 1965 has been registered with the

Registrar of Companies. Before a prospectus can be accepted for registration, the

proposal for the issue or offer of shares to the public have to be submitted to the

Securities Commission for approval.

Subject to the requirements laid down by the Kuala Lumpur Stock Exchange or

KLSE, public limited companies have to apply to the KLSE for permission to have its

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shares quoted on the Exchange. Even after a public listed company has its prospectus

issued and registered, it is not allowed to commence business if it fails to obtain

permission from the KLSE.

Public listed companies are listed either on the Main Board or the Second Board

of the KLSE. Any subsequent issue of securities such as the issue by way of a rights or

bonus requires the approval of the Securities Commission.

It can be either an unlisted or listed company on the stock exchanges. a public

limited company usually must include the words "public limited company" or its

abbreviation "plc" at the end and as part of its legal company name. However, certain

public limited companies ,mostly nationalised concerns incorporated under special

legislation are exempted from bearing any of the identifying suffixes.

. The longer version is Essentially a Limited Company is seen as an entity in its

own right, which can be subject to legal action. As a separate body, a limited company

can even be the director of another company.

Forming an LLC is about as complicated as forming a corporation. The LLC

comes into existence when the Articles of Organization are submitted to the state (and the

appropriate fee is paid.) The LLC members must also have an Operating Agreement, but

it is not necessary to file it with the state. In fact, in most states, it can be verbal.

Whereas,unlimited companies are no different from sole proprietorship and

partnership business entities. One of the only difference is that they have a special articles

of association and are free to return capital to its members’.

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2.0 Advantages and Disadvantages of Business Entity Types

Today, there are several business entity options available for entrepreneurs. Like

anything else, each of them has advantages and drawbacks.

SOLE PROPRIETORSHIP

The sole proprietorship is perhaps the most common form of business ownership.

Conducting business as a sole proprietor has distinct advantages and disadvantages.

Advantages

A sole proprietorship is an unincorporated business owned by one person. The

owner of a sole proprietorship is known as a sole proprietor. If you conduct your business

through a corporation, your business will not be a sole proprietorship. If you share

ownership of your business with someone else, including your spouse, your business will

not be a sole proprietorship.

The most important feature of a sole proprietorship is that the law makes no

distinction between you, the sole proprietor, and your business. Virtually all the legal and

tax consequences associated with sole proprietorships flow from this essential element.

The first advantage is avoidance of double tax. Basically, double tax can occur if

you conduct your business through a corporation rather than through a sole

proprietorship. Corporations pay income tax separately from their owners. Double tax

can occur when you and your business must both pay taxes on the same dollar of

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income. We will examine the double tax problem more closely in the next issue of

the Home and Small Business Reporter. For now, you simply need to know that as a sole

proprietor, you will not pay double tax on your business income because the law make no

distinction between you, the sole proprietor, and your sole proprietorship. All your

business income is treated as your personal income.

The second advantage of sole proprietorships is that you can deduct your

business losses to the extent of your total income that you may have from all sources,

including interest, dividends, and gains from the sale of non-business property.

Furthermore, if you are married and file a joint tax return, your business losses will also

offset your spouse's income. Your ability to deduct losses as a sole proprietor may reduce

your family's total income tax burden and may be particularly useful during a startup or

downturn phase of your business.

Besides that ,a sole proprietorship is a business entity that is virtually

indistinguishable from its owner. The cost to create it is frequently only a small one-time

fee to the state or county officials to register a fictitious business name and the cost of

placing an ad in your local paper to notify the public that you are doing business under

that name .You may also need a state, county, or city business license, so check with your

local authorities to ensure compliance.

Another advantage of doing business as a sole proprietor is that you don't have to

prepare financial statements for anyone. Since you own 100% of the business, then you

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are not accountable to anyone. There will be no external auditing of your business

account and you are under no obligation to report your business earnings or financial

position.A sole proprietorship has few recurring costs. Since the business and the

individual are identical, there is no special maintenance required to keep the business

alive, so there should be few recurring costs beyond any state business license fees and

fees to maintain your fictitious business name. As long as you continue to call yourself a

business, you are one.

Most entrepreneurs love the sole proprietorship type of business entity because it

allows them to freely express themselves. They can showcase their talent, skill, expertise

and still get acknowledgement for it. Entrepreneurs under this category are usually called

the “do it yourself-ers” because they love doing things their own way. Under this

umbrella, you will find entrepreneurs who are barbers, hair dressers, painters, etc. In

fact, they are the self employed of the society.

  Often a small business, sole traders can offer a more personal service with

local roots and ties. This can be more appealing to potential customers in the local

community. As there is no need to confer with other decision makers, sole traders can

make decisions quickly and act on them swiftly, providing for the needs of their

customers.

           When you are a sole proprietor, you have the ability to quickly make and

implement decisions. Flexibility is the name of the game in a sole proprietorship kind of

business.

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    When you are doing business as a sole proprietor, you have almost none or less

paper work and legal restrictions.

      If you choose to run your business under the sole proprietorship for of entity,

then you can cease to operate or close down the business without any legal formalities.

Disadvantages

The principle disadvantage of conducting business as a sole proprietorship is that

you may pay higher income taxes. As a sole proprietor you report your business income

on your personal tax return . While you do avoid double tax this way, if as a single person

your total adjusted gross income exceeds $115,000, or as a married person filing jointly

your adjusted gross income exceeds $140,000 , you may pay income tax at the highest

rate. By incorporating your business, you may be able to reduce your tax rate.

As a sole proprietor, you face additional disadvantages. Starting in 1994, you

cannot take any tax deduction for your health or life insurance. There is no good reason

for this; the Internal Revenue Code just does not allow sole proprietors to take the

deductions. A full deduction for your health insurance and a deduction for a $50,000 life

insurance policy is available to corporations, so long as all employees of the corporation

are offered the insurance. If these deductions will save you enough money, you may want

to incorporate your business.

Every business is different. What may be advantageous to you may be

disadvantageous to someone else. However, because significant tax and legal

repercussions flow from your decision to conduct your business as a sole proprietor, you

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should be aware of them. By being aware, you can best avoid unexpected and unintended

consequences.

Furthermore, reverse economies of scale is one of the disadvantages of sole

proprietorship .A sole trader will be unable to take advantage of economies of scale in

the same way as limited companies and larger corporations, who can afford to buy in

bulk. This might mean that they have to charge higher prices for their products or

services in order to cover the costs.

Sole traders are not seen as a separate entity by the law. Therefore, they are

subject to unlimited liability. This means if the business gets into debt, the business

owner is liable. In the worst case, this may mean a person risks their home, personal

savings and any other assets they have both in and outside of the business.

All decisions must be made by the sole trader. There is no room for help by

others. So the success or failure of the business rests on one person.

PARTNERSHIP

There are some advantages and disadvantages of running a Partnership type of business.

Advantages

A partnership is generally easier to form, manage and run. They are less strictly

regulated than companies, in terms of the laws governing the formation and because the

partners have the only say in the way the business is run (without interference by

shareholders) they are far more flexible in terms of management, as long as all the

partners can agree.

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For tax purposes, all partners are considered self-employed and claim their share

of the partnership’s income on their individual tax returns .General partnerships are

relatively easy and inexpensive to create and maintain, although the state where the

partnership is established usually requires annual renewal filings and fees. A partnership

agreement usually accompanies the formation of a general partnership, though it is not

legally required. Partnership agreements generally cover topics like transferability,

duration, and management control.

Furthermore, due to the nature of the business, the partners will fund the business

with start up capital. A partnership occurs when you decide to pool capital and work

together with at least one more person. This means that the more partners there are, the

more money they can put into the business, which will allow better flexibility and more

potential for growth. It also means more potential profit, which will be equally shared

between the partners. . In this form of business, you and your partners are joint-owners of

the business and therefore will share the business profits and risks.

Being a partnership, the business owners necessarily share the profits, the

liabilities and the decision making. This is one of the advantages of partnership,

especially where the partners have different skills and can work well together.

Partners can share the responsibility of the running of the business. All partners

carry the same responsibilities. This means that you are liable for risks and debts of the

business even if it is caused by the actions of your partners. Rather than splitting the

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management and taking an equal share of each business task, they might well split the

work according to their skills. So if one partner is good with figures, they might deal with

the book keeping and accounts, while the other partner might have a flare for sales and

therefore be the main sales person for the business. With unlimited liability, each

partner is also liable to use their private resources to meet the partnership's debts.

Disadvantages

However, it can obviously present some problems. Over the years, many

partnerships have turned sour. Family and friends go into business together and end up

falling out on a personal or business level and it all ends badly. This is one of the major

disadvantages of partnerships over other business models, but it’s important to be able to

balance the advantages and disadvantages. Disagreements and disputes may occur among

partners and this may disrupt business plans or operational efficiency.

One of the most obvious disadvantages of partnership is the danger of

disagreements between the partners. . Since decisions are shared, disagreements can

occur. Obviously people are likely to have different ideas on how the business should

be run, who should be doing what and what the best interests of the business areThis

can lead to disagreements and disputes which might not only harm the business, but

also the relationship of those involved. A partnership is for the long term, and

expectations and situations can change, which can lead to dramatic and traumatic split

ups.This is why it is always advisable to draft a deed of partnership during the

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formation period to ensure that everyone is aware of what procedures will be in place

in case of disagreement and what will happen if the partnership is dissolved.

Furthermore, a major disadvantage of a partnership is unlimited liability. General

partners are liable without limit for all debts contracted and errors made by the

partnership. For example, if you own only 1 percent of the partnership and the business

fails, you will be called upon to pay 1 percent of the bills and the other partners will be

assessed their 99 percent. However, if your partners cannot pay, you may be called upon

to pay all the debts even if you must sell off all your possessions to do so. This makes

partnerships too risky for most situations.

One of the major disadvantages of partnership, taxation laws mean that partners

must pay tax in the same way as sole traders, each submitting a Self Assessment   tax

return each year. They are also required to register as self employed with HM Revenue &

Customs. The current laws mean that if the partnership (and the partners) bring in more

than a certain level, then they are subject to greater levels of personal taxation than they

would be in a limited company. This means that in most cases setting up a limited

company would be more beneficial as the taxation laws are more favourable .

Moreover, partners share the profits equally. You have to decide on how you

value each other’s time and skills.This can lead to inconsistency where one or more

partners aren’t putting a fair share of effort into the running or management of the

business, but still reaping the rewards. What happens if one partner can put in less time

due to personal circumstances?

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In additional, partnerships are formed by two or more legal entities , and each of

those entities are individually responsible for the partnership. This means that each

partner is personally liable for the partnership’s debts and legal liabilities. If one rogue

partner makes an enemy of a third party, all partners will come under fire.

LIMITED LIABILITY COMPANY

A limited liability company (LLC) is essentially a hybrid of a corporation and a

partnership. An LLC provides the same kind of tax and liability benefits as a corporation,

but has the same management structure as a partnership. In the past, LLCs have had more

restrictions on them than corporations. For example, at least two people were needed to

form an LLC and an LLC’s duration was specifically limited. However, in the last few

years, states have started loosening these restrictions.

Advantages

Publicly traded companies are able to raise funds and capital through the sale of

its securities. This is the reason publicly traded corporations are important: prior to their

existence, it was very difficult to obtain large amounts of capital for private enterprises.

Moreover, the issue, transfer or sale of shares is a relatively straightforward

process - although existing shareholders are protected via their "preemption" rights and

by company legislation that seeks to protect the interests of minority investors.

The process of lending to a company is also easier than with other business forms. The

lending bank may be able to secure its loan against certain assets of the business (a

"floating charge") or against the business as a whole ("fixed charge".

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The financial media and city analysts will be able to access additional information

about the businessThe obvious advantage of a Limited Liability Company is the financial

security that comes with business. As already mentioned, the Company’s shareholders

will only be liable for any debt the company accrues according to the levels of their own

investment and no more. This can provide a comfortable feeling of security for investors

in the Company.

Due to its very nature, a limited company is deemed to be a separate legal entity

from its owners. This has several advantages, including the fact that the company will

exist beyond the life of its members. If they retire or die, the company will continue to

exist and operate. This ensures security for employees and other members and also is an

advantage which other legal forms of business are not subject to.

Besides, the advantage of paying yourself in dividends instead of in the form of a

pay packet (in the normal sense), especially when you consider that tax on dividends is

only 10% and there are no NI (national insurance) charges on them! There are

complexities involved where you wish to pay a pension for your retirement, but if you

consider that dividends can be paid at any time during the company’s financial year

actually makes this method of paying yourself and other members more preferable. It also

gives you further incentive to work hard to make a profit with the company, as dividends

payments are made up of distribution of the company’s profit.

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Disadvantages

While a limited liability company (LLC) offers many advantages over other forms

of business entity, there are also some disadvantages.

First and foremost, there are more complex and restrictive rules governing the

accounts and bookkeeping of Limited Companies than sole traders (for example). The

Company is expected to produce years accounts incorporating a double entry format,

balance sheets and other notes. With the (generally) larger nature of a Limited Companies

business this can be a time consuming and costly undertaking.

For Private Limited Companies, there is a restriction on the raising of capital via

sale of shares. As mentioned, PLC’s can gain further funding by the sale of shares, but thi

ability is lost to Private Limited Companies whose shares are restricted.

Furthermore, due to the nature of Public Limited Companies, sometimes disputes

will arise between Directors and Shareholders as their ideas of what is best for the

company vary. Sale of shares to increase company funds will further dilute the

management, as more and more people have a say in how the company is run. There is

also a risk (since Companies can buy shares) that a takeover might occur this way.

Earnings of most members of an LLC are generally subject to self-employment tax. By

contrast, earnings of an S corporation, after paying a reasonable salary to the shareholders

working in the business, can be passed through as distributions of profits and are not

subject to self-employment taxes.

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Since an LLC is considered a partnership for Federal income tax purposes, if 50%

or more of the capital and profit interests are sold or exchanged within a 12-month

period, the LLC will terminate for federal tax purposes.

A limited liability company which is treated as a partnership cannot take

advantage of incentive stock options, engage in tax-free reorganizations, or issue Section

1244 stock.

In additional,there is a lack of uniformity among limited liability company

statutes. Businesses that operate in more than one state may not receive consistent

treatment.

In order to be treated as a partnership, an LLC must have at least two members.

An S corporation can have one shareholder. Although all states allow single member

LLCs, the business is not permitted to elect partnership classification for federal tax

purposes. The business files Schedule C as a sole proprietor unless it elects to file as a

corporation.

Moreover, some states do not tax partnerships but do tax limited liability

companies.

Minority discounts for estate planning purposes may be lower in a limited liability

company than a corporation. Since LLCs are easier to dissolve, there is greater access to

the business assets. Some experts believe that limited liability company discounts may

only be 15% compared to 25% to 40% for a closely-held corporation.

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Conversion of an existing business to limited liability company status could result in

tax recognition on appreciated assets.

Privately held companies have several advantages over publicly traded companies. A

privately held company has no requirement to publicly disclose much, if any financial

information; such information could be useful to competitors. For example, publicly

traded companies in the United States are required by the SEC to submit an annual Form

10-K containing a comprehensive detail of a company's performance. Privately held

companies do not file form 10-Ks; they leak less information to competitors, and they

tend to be under less pressure to meet quarterly projections for sales and profits.

Publicly traded companies are also required to spend more for certified public

accountants and other bureaucratic paperwork required of all publicly traded companies

under government regulations. For example, the Sarbanes-Oxley Act in the United

States does not apply to privately held companies. The money and income of the owners

remains relatively unknown by the public.

Public companies must meet stringent reporting requirements set out by the

Securities and Exchange Commission (SEC), including the public disclosure of financial

statements and annual 10-k reports discussing the state of the company. Each stock

exchange also has specific financial and reporting guidelines that govern whether a stock

is allowed to be listed for trading.

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Furthermore, unlike sole proprietorships or partnerships, companies have

continuity of succession, as it is unaffected by the death or incapacity of one or more of

its members.

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3.0 Case Study of Optimax Malaysia

The acquisition of Optimax, a franchise from United Kingdom, represents a

strategic move by the Group to diversify into the fast developing Malaysian health

sector. It was established in Kuala Lumpur in 1995, offering one of the most advanced

laser treatments for permanently correcting the need for glasses and contact lenses. 

Optimax Malaysia was started with technical and medical expertise from Optimax UK -

United Kingdom's Largest Provider of Laser Eye Treatment.

OPTIMAX  Eye Specialist is Malaysia’s recognized pioneer in the eye care

industry in laser refractive surgery. Optimax is also the first eye specialist centre and the

only one in Malaysia to establish strategic alliance with Hospital Universiti Kebangsaan

Malaysia (HUKM). They are offering refractive surgery helping people reduce their

dependency on corrective lenses. OPTIMAX became the first and only Eye Specialist

Centre to be awarded the prestigious ISO 9001:2000 Certificate for Refractive Surgery in

July 2001. To date, OPTIMAX is still the only Eye Specialist Centre to carry this

certification, further reinforcing our commitment to provide only the highest quality

service for all.

Optimax has invested over RM21 million in equipments and technology to date. It

will continue to upgrade its technology offering and has put a lot of focus in Research &

Development to offer the latest eye treatment technology to its patients. Beginning with

only 1 doctor, it has now expanded with 10 panel doctors in listing, more than 20

optometrists and a team of extensively trained laser engineers and technicians. Today,

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they have one of the largest networks in the region with 12 OPTIMAX branches in

Malaysia and 1 in Singapore. They continue to produce excellent result, and manage a

portfolio of 80,000 and growing satisfied customers with latest technology.

“We have been serving the Shah Alam, Subang and Klang communities for many years

and felt it was the right time to move to a bigger facility to serve the growing

population,” said Optimax Eye Specialist Centre managing director Datuk Tan Boon

Hock when he gave his speech in the opening ceremony of a new center at Dataran

Otomobil in Seksyen 15, Shah Alam recently.

“We feel that our new facility, which is equipped with a more comprehensive range of

equipment andtreatments – benefits that our customers will welcome,” he said.

“When it comes to vision care, people expect the best. Over the years, we

have invested close to RM22 million in the latest ophthalmic equipment and facility to

help customers improve their vision and quality of life,” he said adding that the centre has

over 80,000 satisfied patients.

“Maintaining good vision is important these days especially since we are in the digital

age where a lot of reading is done from a screen – mobile, smart phone or computer.

“The added environmental stresses such as pollution, the drying air-conditioning and heat

can make our eyes very tired,” said Tan.

In the year of 2007, Optimax Eye Specialist Centre has been recognized in the

"Grammy Awards" for branding -The BrandLaurette Award for best brands in Health

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Care – Eye Care .

The Asia Pacific Brands Foundation (APBF), which initiated 'The BrandLaureate

Awards program implemented 'The BrandLaureate - SMEs Chapter Award. Taking

cognizance of the important role that SMEs (Small and Medium Enterprises) contribute

to the development of the nation and that of brand building, the Award recognizes the

best brands in the SMEs industry in Malaysia.

Optimax is proud that they have been honoured with The BrandLaurette Chapter

Awards as the best in Health Care – Eye Care 2007. They are humbled by the recognition

that the SME community has bestowed and endeavour to continue with our achievements

in eye care.

Acknowledged as the most prestigious annual business award, the Golden Bull

Award honours the best of SMEs in Malaysia by giving them recognition for their

successes and achievements. Presented by Nanyang Siang Pau, the award aims to provide

an effective platform to benchmark successful SMEs and to encourage more SMEs to

strive for excellence in today's ever-changing competitive globalised marketplace.

Optimax is proud to announce that they have been awarded the Golden Bull

Award for the second year since 2003. From, inspirational flashes of brilliance to the

relentless day-to-day pursuit of operational excellence, Optimax has excelled in its field

with exemplary creativity and are rightly acclaimed as one of Malaysia's top achieving

SMEs. With competition at maximum, Optimax has shown it continues to pioneer the eye

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refractive industry, as it has been chosen from the 92% of all business establishments in

Malaysia.

Optimax leverages its optics manufacturing technology for programs that benefit

mankind. They have created innovative manufacturing methods and corporate culture

that enable faster production of precision optics. Even with many years of experience

providing production optics, Optimax remains dedicated to small volume, high quality,

quick delivery.

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4.0 Competitive Edge of Optimax

Optimax Malaysia  is a quality laser surgery specialist. It is Malaysia’s pioneer

eye care specialist since 1995. Over 80,000 satisfied patients .It provides wide treatment

variety ,such as Lasik, All-Laser-Lasik, Epi-Lasik & Lasek. Optimax Malaysia also is a

complete eye clinic equipped with advanced facilities, offering superior ophthalmology

solutions for patients with eye or vision problems.

OPTIMAX Eye Specialist Centre is the only first eye lasik centre in the country

and the only eye specialist center awarded the ISO 9001-2000 certificate on refractive

surgery in Malaysia. The renowned advanced eye laser treatments at Optimax has

improved visions for thousands of Malaysians and enabled them to eliminate dependency

on glasses and contact lenses. To date, Optimax has successfully conducted corrective

procedures on more than 70,000 patients in line with its vision “World without glasses

and contact lenses” .

Optimax Eye Specialist Centre has the largest network and currently operates 14

branches throughout Malaysia, Singapore and Brunei with nine resident consultant

ophthalmologists and more than 20 optometrists. Besides Malaysia, Optimax has

expanded its outlets to Singapore (2 outlets) & Brunei (1 outlet). 

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They provide comprehensive eye care services and utilize the latest technology to

achieve the best possible results for their patients. Ophthalmologists , optometrists and

Laser Engineers in Optimax have been providing top-quality care for Malaysia and

Singapore country for more than 5 years. Compared with their competitors, Optimax is

better because for the same surgery, their price is cheaper by few thousand and their toll

free number receptionist is patience and professional.

Moreover, Optimax has initiated The Optimax Foundation which undertakes the

Charity Eye Screening project for the underprivileged where a team of consultant

opthalmologists will provide free eye screening and consultation for common eye

diseases. On top of that, Optimax also works with NGOs like the Taiwan Buddhist Tzu

Chi Foundation Malaysia, Ti-Ratana, Jabatan Kebajikan Masyarakat Malaysia and

Cempaka Buddhist Logde to provide the same free services.

Furthermore , it’s easier for everyone to enjoy the freedom of clear vision with

hassle-free 0% Easy Payment installment up to 24 months from OPTIMAX. While

Optimax offers  these conveniences to their customers, they have many advantages for 

the customers too.

For examples, a  laser consultation is free of charge, however a small refundable

deposit is required to secure the appointment. The cost of treatment

includes Astigmatism and Lifetime Aftercare.Caring for the customers' needs is part of

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Optimax’s commitment. With 24 hours careline, each customer has access to assistance

with a range of issues. Things like room comfort, personal items, and help with medical

issues are only a phone call away.

5.0 Conclusion

Small businesses that are growing successfully are innovating, changing and

evolving continuously through innovation processes that are essentially communication

activities. Their owners require the ability to think on their feet and communicate change

in a meaningful way.

Micro and small or medium-sized enterprises (SMEs) make important

contributions to development. The growth of a healthy, competitive SME sector will be

maximised when there is a strong enterprise culture in the society at all levels; a

continuous growth in the quality stock of independent business; maximum potential for

growth of existing small businesses: and a highly supportive economic, social and

stakeholder environment.

Micro, small and medium-scale enterprises (SMEs) make important contributions

to economic and social development. In all economies they constitute the vast majority of

business establishments, are usually responsible for the majority of jobs created and

account for one third to two thirds of the turnover of the private sector. In many countries

they have been the major engine of growth in employment and output over the last two

decades. In developing countries they are seen as a major ‘self-help’ instrument for

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poverty eradication. In transition economies, the main target countries of this publication,

they provide the best illustration of the changes in ownership structures, business culture

and entrepreneurial behaviour over the past decade.

In all economies, many micro businesses and self-employed persons operate

outside the ‘formal’ sector. One of the major challenges to governments in designing

institutional, organisational and regulatory frameworks is therefore to encourage

entrepreneurs to engage in legitimate activity. In pursuing this goal, governments have

moved away from earlier, rather simplistic, approaches, recognising that SMEs not only

create jobs but play a wider role in social, economic and political development. They are

increasingly seen as central to creating a democratic society and developing an

‘enterprise culture’.

Moreover, small businesses created the most new jobs in communities, Small

firms created the most new jobs and perhaps the greatest generator of interest in

entrepreneurship and small business is the widely held belief that small businesses in the

United States create most new jobs. Small businesses indeed create a substantial majority

of net new jobs in an average year. Local businesses provide competition to each other

and also challenge corporate giants.

Governments alone cannot create that ‘enterprise culture’, but their actions can

destroy or facilitate it.A major difficulty is that the SME sector is always highly

differentiated and that its power base, if any, is essentially local. This makes a coherent

public policy approach to SME needs difficult. The aim must be to empower ‘bottom up’

approaches to development within a national framework in a way that rewards and

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enhances enterprise culture, because in all societies the independent owner managed

small business is the organisational norm for economic activity.\

A small business can be started at a very low cost and on a part-time basis. Small

business is also well suited to internet marketing because it can easily serve specialized

niches, something that would have been more difficult prior to the internet revolution

which began in the late 1990s. Adapting to change is crucial in business and particularly

small business; it is typically easier to respond to the marketplace quickly. Small business

proprietors tend to be intimate with their customers and clients which results in greater

accountability and maturity.

Independence is another advantage of owning a small business. One survey of

small business owners showed that 38% of those who left their jobs at other companies

said their main reason for leaving was that they wanted to be their own bosses. Freedom

to operate independently is a reward for small business owners. In addition, many people

desire to make their own decisions, take their own risks, and reap the rewards of their

efforts. Small business owners have the satisfaction of making their own decisions within

the constraints imposed by economic and other environmental factors.  However,

entrepreneurs have to work very long hours and understand that ultimately their

customers are their bosses.

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6.0 REFERENCES

1. Burnett, H 2003, The influence of communication on the success of micro and small

business: a case study, AGSE, Swinburne University of Technology, Hawthorn

Victoria,

Australia.

2. Churchill, NC and Lewis, VL 1983, ‘The five stages of small business growth’,

Harvard Business Review, vol. 61, no. 3, pp. 30-50.

3. Zellner, W 2000, 'The 21st century corporation: the creative economy', Business Week,

21-28 August, pp. 72-74.

4. Australian Bureau of Statistics 2001, Characteristics of Small Business, Cat. no.

8127.0, ABS, Canberra, Australia.

5.” Optimax Eye Specialist | Eye Specialist - Malaysia Cataract Lasik” [online

database] ,http://www.optimax2u.com

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6. “Your Laser Eye Surgery Patient Results Forecast” [online database],

http://www.optimax.co.uk/your_results_forecast.aspx

CODE:BBA 1004

SMALL BUSINESS MANAGEMENT

COURSEWORK

NAME : CHOOI WAI KUAN

NRIC : 910227-14-5486

STUDENT ID : 201126

H/P NUMBER : +60176568281

EMAIL ADD. : yenny_j@kimo.com

NAME OF LECTURER: MR CHONG KAR YUN

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ZONE NO : A 074

NOVEMBER SEMESTER 2011

1. What does IPO list for which a patent cannot be granted?

a) A scientific or mathematical discovery ,theory or method

b) A literary ,dramatic ,musical or artistic work

c) A way of performing a mental act ,playing a game or doing business

d) The presentation of information ,or some computer programs

e) An animal or plant variety

f) A method of medical treatment or diagnosis

g) Anything that is against public policy or morality

2. Please list out ten barriers to creativity.

a) The fallacy that there is only one correct solution to a problem

b) The fallacy that logic is important in creativity.

c) The tendency to be practical

d) The tendency to follow established rules unquestioningly

e) The tendency to avoid ambiguity in viewing a situation

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f) The tendency to assign blame for failure

g) The unwillingness to recognise the creative power of play

h) The tendency to think too narrowly and with too much focus

i) The unwillingness to think unconventionally because of the fear of appearing

foolish

j) The lack of belief that you can be creative

3. Burke and Logsdon argue that there are sound business reasons for following a

strong CSR policy and organizations can expect six strategic outcomes. Please

describe those six strategic outcomes.

a) Enhanced customer loyalty:Certainly a strong CSR profile can reinforce

and enhance brand image .Customers are increasingly drawn to brands

with a strong CSR profile and CSR has become an element in the

continuous process of trying to differentiate one company from another.

b) Increased future purchases: Whilst any productmust first satisfy the

customer’s key buying criteria-quality, price etc.A strong CSR brand can

incease sales and can damage sales quite severely.

c) Reduced operating costs:Manay environmental initiatives can reduce

costs e.g. reducing waste and recycling ,having better control of building

temperatures or reducing use of agrochemicals.Many social initiatives

can increase employee motivation and cut absenteeism and staff

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turnover,and an increasing number of graduate take CSR issues into

consideration when making employment decisions.

d) Improved new product development :Focus on CSR issues can lead to

new product opportunities .Innovation linked to sustainability often has

major systems-level implications ,demanding a holistic and integrated

approach to innovation management.

e) Access to new markets:A strong CSR brand can create its own market

niche for an organization.

f) Productivity gains :Actions to improve working conditions ,lessen

environmental impact or increase employee involvement in decision-

making can improve productivity.

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