eMBA Nov12 Session 9

7/28/2019 eMBA Nov12 Session 9

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Entrepreneurship

Course

EMBA Batch

April 2013

Session 9


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The ProgramSession Topic Curriculum Date

1 Introduction

Welcome the students Explain course and schedule The Contract Students expectation of the course InteractionI the Business Case Study #1 InteractionThe Name Ball Interaction-I the Investor Part 1 Discussion Singapore Incorporated and Entrepreneurship

9th April7.00 pm to 8.15pm

2 Entrepreneurship

Presentation Entrepreneurship Process Presentation Leadership and Entrepreneurship explained InteractionI the Business Case Study #2 Discussion Doing Business in India and China

9th April9.00 pm to 10.15 pm

3 The Entrepreneur

Interaction Jockey Quiz Presentation Myths about entrepreneurship Presentation The ten mistakes a new entrepreneur make InteractionI the Business Case Study #3 Self Assessment - Are you the entrepreneurial type? Discussion Challenges of an Entrepreneur Discussion Guan Xi and networking

Discussion Business entertainment


4 Business Planning

Presentation Generating ideas and opportunities Presentation Types of Business Plan Presentation Making assumptions and identifying constraints InteractionI the Business Case Study #4 Interaction Briefing on The Coffee Stall Business Discussion Business Entertainment


5 Site Visit at DignityKitchen

Understanding of social entrepreneurship Learning the value of business (The Coffee Stall Business)

11th April6.00 pm to 8.30 pm6


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The ProgramSession Topic Curriculum Date

7 Getting Started in Business

Presentation Understanding and evaluating business risks Presentation Taking Risk Presentation Funding Types and Process Presentation Closing the Deal Interaction - I the Investor Part 2 InteractionI the Business Case Study #5 Discussion - My Business Values

13th April2.00 pm to 3.15pm

8 Doing Business

Presentation Business structures & its incorporation Presentation Processes and System Presentation Maintaining a business Presentation Growth of a Business InteractionI the Business Case Study #6 Discussion Learning from the $100 Experience


9 Success in Business

PresentationDeath of a business Presentation Why business failed Presentation Element of Success in Business

Discussion Bad Business Practice


10 Assessment I the Business Individual Assessment14th April

10.00 am to 11.15 am

11 Assessment The $100 Experience Business Plan Presentation 14th April

12.00 pm to 1.15 pm

12 Conclusion

Course Review Result of your Assessment Review of The Contract



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Session 9Success in Business

Christopher Benjamin Consultancy Services 4

PresentationDeath of a BusinessWhy business failed

Element of Success in Business

Discussion Bad Business Practice

Background Reading

Questions and Answers


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Death of a Business

Presentation



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The TS Story


Manufacture and distribute kuehBrandedHusband and wife dispute

Too much education and mans egoNo proper financial controlLiving off other shareholders investmentBusiness wind down


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Proposal to wind up company

Declaration of solvency

general meeting held liquidator appointed

Liquidator has

favourable opinion Liquidator hasunfavourableopinions

Members VoluntaryWinding Up

No declaration of solvency

Creditors meetingcalled General

meeting held

nomination of liquidatorcreditors choice prevails

Creditors VoluntaryWinding Up

Voluntary Winding Up



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The Process of Winding Up

Compulsory winding up

Petition filed

Petitiondismissed

Petitiongranted

Companycontinues to

exist

Liquidationofficial

appointed

Voluntary winding up

Resolutionto wind up

passed

Liquidatorappointed

Ascertain realisesassets

Ascertainpays off

debts

Pays balance toshareholders

Dissolution ofcompany



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Winding Up



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Secured creditors

Preferred unsecuredcreditors

Other unsecured creditors

shareholders

Hierarchy of Payments



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Scheme of Arrangement: Procedure

Proposal for compromise

Application to court

Court orders creditors meeting Court rejects application

Approval of 75% majority

Court approvesarrangement

Arrangement implemented

Court rejectsarrangement

Company or creditor may beginwinding up proceedings



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Judicial Management Process

Application for judicial management

Notice of application published

Court makes judicial managementorder ; judicial manager appointed

Order published and notice given tocreditors

Statement of affairs of company givento judicial manager

Statement of proposals laid beforecreditors meeting

yes

Proposal rejected

Judicial manager implementsproposals

Judicial management

successful

Judicial managementfails

Orderdischarge

d

Company orcreditor petitions

for winding up

Court rejectsapplication

Petitiondismissed

Opposition toapplication

Opposition

fails

Opposition

succeed

No

Application to discharge order



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Judicial Management and Winding up

DETAIL JUDICIAL MANAGEMENT COMPULSORY LIQUIDATION

Aim Preservation of insolvent companiesDissolution of companies; collection anddistribution of company assets.

OfficialI. Functionsii. Powers

Judicial manageri.To achieve purposes on which ordergranted.ii. General powers to do such thingsare as necessary for themanagement of the affairs, businessand property of the management.

Liquidatori.To protect companys assets, realisethem and apply proceeds amongstcreditors and contributories.ii.Exercise of powers subject to courtcontrol; given powers to do such things asare necessary for the winding up of thecompany and the distribution of thecompanys property. Includes power toavoid certain antecedent transactions.

How commenced By petition By petition

Who may petition The company; Its directors; A creditor or creditors

The company; Any creditor; A contributory; The judicial manager



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DETAIL JUDICIAL MANAGEMENT COMPULSORY LIQUIDATION

Grounds for makingorder

The company is or will be unableto pay its debts; and

The making of the order is likelyto achieve specified purposesincluding the survival of the

company or its undertaking as agoing concern

The grounds include The companys business is suspended

for a year; The company is unable to pay its

debts;

The court is of the opinion that it is justequitable for the company to be woundup

Effect of order oni. Board of Directorsii. Businessiii. Property

i. Management powers vest injudicial manager.

ii. Continues in accordance withjudicial managers proposals

iii. No security may be enforcedagainst no legal process may becommenced or continued againstcompanys property withoutconsent of judicial manager orcourt.

i. Directors positions terminated, powerstransferred to liquidator.

ii. Carried on by liquidator only ifnecessary for the beneficial winding up

of the companys business and not forits continuance.

iii. Any disposition of company propertyvoid, unless court otherwise orders; noaction or proceeding may becommenced or continued without courtapproval; and any execution against

company property void.Christopher Benjamin Consultancy Services 14


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Why Business failed?

Presentation



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Ten Reasons Why Businesses Fail

10. owners concentrating on the technical

rather than the strategic work at hand

6. lack of

management systems

8. lack of vision and

purpose by principles

2. lack of financial

planning and review

7. lack of knowledge about

the market and competition

3. over dependence on specific

individuals in the business

4. poor market

segmentation and strategy

9. failure to establish or

communicate company goals

1. inadequate capitalization

or lack of funds

5. absence of standardized

quality program



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Element of Success

In Business

Presentation



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Define Success

Success is different meaning to different people

Success is define as a satisfying state of the

mind



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Business is like a Car

Find the Driver?Roadmap = Business Plan

Store

DriverCo-driver

Fuel = money

Passenger=worker

Engine= Production



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Element of LOVE

{



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Element of LOVE

AA

Richard

BB

Ken

CC

Dan

DD

Chen

Love

No Love

Founder Inheritor



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Element of LOVE -

Finding your passion

Time Happenings People Memories

(Product / Service)

Birth

Childhood

School Outing

Holiday

Work Exposure

Etc Etc Etc..



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Element of TIME

{



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Element of TIME

Living-10

Working-8

Spiritual-

Physical-Social-

Family-

6

= 24 hrs



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Element of TIME

Do It Now Do It Next

Do It Later Do you need to

do it at all?

Yes

No

Important

Urgent

Yes No

Important = Situation

Urgency = Time



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Element of KNOWLEDGE

{



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Practice Knowledge

Experience

Core Knowledge

Learned



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Industry

Function

Application

Geography

Educational

Background



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Element of MONEY

{ $



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Element of MONEY

Money is needed Set-up the business

Maintain the business Grow the business

Money is needed People

Machine & equipment Material



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Element of MONEY

$

Who do I know

(directly)

What do I have

(tangible)

Who do I know

(indirectly)

What do I have

(intangible)



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Element of HEALTH

{ $ }



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Element of HEALTH

Physical

&Mental

state of health



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Element of HEALTH

Physical health

You need your kidneys



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Element of HEALTH

Mental Health

Staying Power

Risk

Pick-Me-up



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OPPORTUNITY

{ $ }Opportunity



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OPPORTUNITY

Dreamers

DOER

Opportunity



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Success =

InBusiness

{ $ }

Element of Success



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About the Book

The Characters Tom

The Case Subjects

The Old Regular

The Story Approach

The Element ofSuccess



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Failure is

Failure is when you stoptrying

Success is defined as a

satisfying state of the mindand



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Bad Business Practice

Discussion



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City Harvest:

Background


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City Harvest:

Background


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China Aviation Oil:

Background

Jet fuel procurement, international oiltrading and oil-related investment

Handled virtually 100% of China's totaljet fuel imports

Began derivative speculation in 2003

In late 2003, bet oil price would fall

Oil prices rose from US$35 to US$55 by Nov2004



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China Aviation Oil:

Background General failure in corporate

governance

CEO and Head of Finance jailed 4years 3 months and 2 yearsrespectively and fined

Other directors fined for makingfalse and misleading statement



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China Aviation Oil:

Singapores Legal System

Common Law System

Law based on decisions made in earlier cases

Statutes introduced to codify some of these laws

Singapore Penal Code

Other specific acts

Companies Act (CA)

Securities and Futures Act (SFA) Prevention of Corruption Act (PCA)


C O


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China Aviation Oil:

Regulatory Bodies

Singapore Exchange (SGX) Manages day-to-day regulation of listed companies

Commercial Affairs Department (CAD)

Investigates white collar crime Monetary Authority of Singapore (MAS)

Regulates and supervises financial market

Corrupt Practices Investigation Bureau (CPIB)

Investigates corruption in private and public sectors Attorney-Generals Chambers (AGC)

Deputy Public Prosecutors conduct prosecutions and guideinvestigations


China Aviation Oil:


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China Aviation Oil:

Fraud Detection

Board of Directors

Chief Executive Officer

Risk Management

Committee

Audit Committee

Internal Audit

Department Heads

Traders

Delegated Daily

Risk Management

Managed Internal Controls

and Business Risk

Failed to detect

losses

Received reports of

risk exposure


Chi A i ti Oil


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China Aviation Oil:

Duty of Director (CA S157)

Made mandatory duties of director

Act honestly and use reasonable diligence in duties

Expected standard depends on position,company, business

No breach if decision made losses

If made honestly and with reasonable belief it was

in the best interest of the company


Chi A i ti Oil


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China Aviation Oil:

Possible Breach of Duty

Directors aware CAO was speculatingin options

No effective risk managementguidelines in practice on options trading

Board of Directors allegedly not awareof losses incurred

Audit Committee and internal audit didnot detect losses



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Chai Pani ka Kayal

Discussion



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Chai pani ka Kayal

What is your definition ofCORRUPTION ?

Does every person has a price?

By bribing, do you support corruption?

Can corruption be eradicated?????



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Chai pani ka Kayal



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China

In the 80s

Cigarette and panty hoseIn the 90s

White goods & FECThree joss sticks and liqueursIn the 00s

Shares and options

Indian

Delhitraffic fines = Rs 100 to Rs 500

Mumbai

Rail Security = Rs 200

ChennaiLand OfficePeon = Rs 50

Administrator = Rs 500

Manager = Rs 2000

Indonesia

Traffic fines = 100,000 RupiahSchool application form = 500,000 Rupiah

Malaysia

Traffic fines = 50 RinggitLicense application = 200 Ringgit

Changing Phases of Bribery


B d B i P ti


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Bad Business Practice:

CorruptionCORRUPTION DEFINED

Corruption is operationally defined as the misuse of entrusted power for privategain

"according to rule" corruptionfacilitation payments, where a bribe is paid to receive preferentialtreatment for something that the bribe receiver is required to do by law

"against the rule" corruption.is a bribe paid to obtain services the bribe receiver is prohibited fromproviding.

Transparency International


Bad B siness Practice


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Corruption


Corrupt ion is the lack of integrity or honesty, often associated with bribery, throughthe use of a position of trust for dishonest gain.

Bribery and corruption are globalised ethical issues which have a massive impacton both developing and developed countries. The globalisation of business has leadto many multinational and international organisations investing in some of the most

corrupt countries in the world (according to Transparency Internationals index)therefore making it a worldwide issue that has serious implications for individuals,business and government relations.

Additionally, corruption remains a serious problem for companies operating in partsof the world where corruption is a day-to-day factor; it is incorporated into business

activities across regions, sectors and industries.

The Governance Director from the World Bank Institute, David Kaufman, identifiedthat bribery has become a $1 trillion industry

Source: www.unglobalcompact.org

http://www.article13.com/csr/definitions-1.asphttp://www.unglobalcompact.org/http://www.unglobalcompact.org/http://www.article13.com/csr/definitions-1.asp


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BriberyBribe Payers Index

Rank Country Score1 Belgium 8.81 Canada 8.83 The Netherlands 8.73 Switzerland 8.75 Germany 8.65 Britain 8.65 Japan 8.68 Australia 8.59 France 8.19 Singapore 8.19 The United State 8.112 Spain 7.913 Hong Kong 7.614 South Korea 7.514 Taiwan 7.519 India 6.821 China 6.522 Russia 5.9

Source: Transparency International 2006Christopher Benjamin Consultancy Services 59



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Corruption




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Corruption




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Corruption

Project ? Tenure ?

Relative ? Associate ?

One Off ? Retainer ?

Prize

ApproachQuantum Money ? Kind ?

Is it worth it ?

Gift ? Lost ?


B d B i P ti


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CorruptionCORRUPTION ERADICATED?

is only possible if representatives from government, business and civil

society work together and agree on a set of standards and procedures they all

support

COST OF CORRUPTION?

The cost of corruption is four-fold: political, economic, social, andenvironmental.

Political - a major obstacle to democracy and the rule of law

Economic - the depletion of national wealth Social - undermines people's trust in the political system, in its institutions andits leadership.

Environmental - careless exploitation of limited natural resources



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Non Governmental

Organization

Local Company X

Provincial

Government

and a group

of Officers

Mr. FixerIndia Bank

VillageDevelopment

Project 2006

TenderAward

Introduction

CommissionConsultancy

FeeFund

Fund

Implementation

Benefits

Project 2006


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Project 2006Project 2006 was put on holdbecause of the financial crisisSingapore company sued Indianpartner for non-performance

Lesson Learnt

Money is never enough Legal approach is complicated Allocation 3% to 15% of project(depending on project size) andalways factor in

Payment is in stages on gettingpaid Solution Mr. BIG mediates


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Project Cost $12 m

Less cost of

design & development ($4.6 m)

implementation ($3.6 m)expenses ($0.7 m)

Introduction Commission ($1.8 m)

CollaborationExpenses ($0.4 m)

Final profit recognized to Company X $0.9m

DO YOUR SUM..

Project 2006


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The creative approach to corruption

. The scholarship story

happens in the 1980s multi million infrastructure project three eventual tenders chief negotiator an incorruptible governmentofficer project award hinges on his evaluation

award of a UK scholarship for a young lady.

20 years later.



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ScamsScams Target How it is Done?Lottery Prize Scam Punters SMSes or overseas calls are made to victims mobile phone, telling

them they have won cash prizes in lucky draws held by foreign

companies. The tricksters then ask for money upfront to pay for

administrative or processing fees via remittances companies

account in China, before they can claim their money

Kidnap Call Scam Parents A kidnapper calls the victims on his mobile phone, claiming a relative

has been kidnapped and demands a ransom. The caller says the

relative will be harmed if the money is not handled over. Over the

phone, a person posing as the relative implores the victim to save him.

But no one has been kidnapped. The victim is also kept on the line,

probably so he cannot call the relative to check until the money has

been transferred.

Apple Scam

Middle-aged & Elderlywomen A woman approaches a victim, asking if he knows of an old man livingnearby who can cure illness. Shortly after, accomplices join them,

predicting the victims will fall sick soon. The victim is then asked to

place cash and jewellery in a plastic bag for prayers to be perform by

the healer. The women and her accomplices then instructed their

victim to open the plastic bag a few days later. But when she does, the

cash and jewellery have been swopped with apples and other items.




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ScamsScams Target How it is Done?Nigerian Scam Netizens An e-mail from a supposed African official that offers a big cut if you

help unfreeze millions in a late bureaucrats bank account. The

catch is that the victims have to transfer money first to cover the

transaction costs. More funds may be requested before snags

occur and the official disappear, with the moneyIt drop off the van Scam General Public A van will drive up to an unsuspecting victim and offers to sell him

high end home theatre at very low price. Payment is cash.

Job Offer Scam Job-seekers It can be the form of a mass e-mail or e-mail response to job-seekers ads, offering highly paid job such as investment consultants

in Canada or operation managers position in Europe. But the victim

has to wire money over first.Safe Supermart Scam General Public Man wants to buy a consumer electrical item, he goes to see a

fixer. The fixer will arrange for a victim who is desperate for cash.

He asked the victim to purchase the item on hire purchase. The

fixer takes the purchased item to the man and sells him at a

discount. Take the cash from the sale and after deducting his fee

give the rest to the victim and the victim has to service the hire

purchase.Ponzi Scheme Investors Based on "rob-Peter-to-pay-Paul" principle, as money from new

investors is used to pay off earlier investors until the whole scheme

collapses.Source: Commercial Affair Department, Singapore Police Force




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Scams



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Questions & AnswersMy email address: [email protected]

eMBA Nov12 Session 9

Documents

Transcript of eMBA Nov12 Session 9