Awang was a real craftsman when it came to being a machinist. Awang had learned almost all that he knew from Daud, his f
Posted: Sun Jul 03, 2022 5:23 pm
Awang was a real craftsman when it came to being a machinist.Awang had learned almost all that he knew from Daud, his first andonly employer. Awang was married and had three young children. Hewas 33 years old and had worked for Daud ever since he finished histour in the Army. In 12 years, Awang had polished his skills underthe watchful and critical eye of Daud. Daud was quick to recognizeAwang's talent for the trade. Awang had a positive attitudeabout
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 thathad been established over its 42 years in operation. Daud had cometo this country with his new wife, Salmah, when he was in his latetwenties. Now the business was a success, but Daud remembered theearly years when he and Salmah had to struggle. Daud wanted thebusiness to continue to produce the highest quality craftsmanproducts possible. On a Friday evening, he called Awang into hisoffice at closing time, poured him a cup of half-day-old coffee,and began to talk with him about the future.
"Awang, Salmah and I are getting old and I want to retire. Ithas 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 thatyour heart is in this craft and that you would always retain thequality that we have stood for." Awang was taken back by the offer.He, of course, knew Daud was getting older, but had no idea Daudwould retire. Awang and his wife, Timah, had only RM4,200 in thebank. Most of Awang's salary went for the normal costs of rearingthree children. Daud knew Awang did not have the money to buy thebusiness in cash, but he was willing to take a portion of theprofits for the next 15 years and a modest initial investment fromAwang.
Awang had, for the past four years, made most of the technicaldecisions in the shop. Awang knew the customers and was wellrespected by the employees. He had never been involved in thebusiness side of the operation. He was a high school graduate buthad never taken business courses. Awang was told by Daud that evenafter deducting the percentage of the profits he would owe underthe sales agreement, he would be able to almost double his annualearnings. Awang would have to take on all the business functionshimself because Timah had no business training either.
Explain the five (5) process on home Awang and Daud goes throughthe process in entrepreneurship to make Daud Machine Shop keepgoing successful. (10 marks)
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 thathad been established over its 42 years in operation. Daud had cometo this country with his new wife, Salmah, when he was in his latetwenties. Now the business was a success, but Daud remembered theearly years when he and Salmah had to struggle. Daud wanted thebusiness to continue to produce the highest quality craftsmanproducts possible. On a Friday evening, he called Awang into hisoffice at closing time, poured him a cup of half-day-old coffee,and began to talk with him about the future.
"Awang, Salmah and I are getting old and I want to retire. Ithas 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 thatyour heart is in this craft and that you would always retain thequality that we have stood for." Awang was taken back by the offer.He, of course, knew Daud was getting older, but had no idea Daudwould retire. Awang and his wife, Timah, had only RM4,200 in thebank. Most of Awang's salary went for the normal costs of rearingthree children. Daud knew Awang did not have the money to buy thebusiness in cash, but he was willing to take a portion of theprofits for the next 15 years and a modest initial investment fromAwang.
Awang had, for the past four years, made most of the technicaldecisions in the shop. Awang knew the customers and was wellrespected by the employees. He had never been involved in thebusiness side of the operation. He was a high school graduate buthad never taken business courses. Awang was told by Daud that evenafter deducting the percentage of the profits he would owe underthe sales agreement, he would be able to almost double his annualearnings. Awang would have to take on all the business functionshimself because Timah had no business training either.
Explain the five (5) process on home Awang and Daud goes throughthe process in entrepreneurship to make Daud Machine Shop keepgoing successful. (10 marks)