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In Task 1 (Criteria 1.1), I had to identify and describe the purpose and
ownership of different types of organisation. Then, I will explain in more details
about the business ownership of Top Fruits Sdn. Bhd and the advantages for them in
applying that type of business ownership. I am also will identify and discuss in
details about the mission and vision of Top Fruits Sdn. Bhd.
The scenario given for this report is about Top Fruits Sdn Bhd. It had started
up as an agricultural paradise business located at Parit Sulong, Batu Pahat, Johor,
Malaysia since 1986. Eventually, it has continuously expand and acquired approx.
300 acres of land for the cultivation of Durian and other exotic fruits such as
Mangosteen, Rambutan & Honey Jackfruit. The Malaysia tropical fruits are well
accepted and in the rising demand by many consumer around the globe.
Their Durian farm has awarded by the SALM (Farm Accreditation Scheme of
Malaysia) certificate, a recognition for strict quality control in agricultural products.
They use only organic fertiliser and minimal amount of pesticides. Their primary
Durian trees are over 20 years old and produce durians of high grade quality
includes D-197 (Mao Shan Wang), D24, D13, D101, Kim Hong and Durian Mas. Top
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Fruits is a fast growing local exporter of various tropical fruits. They are one of the
pioneer exporters of Malaysia Durian and Honey Jackfruit in the region.
Top Fruits Sdn Bhd has the state-of-art factory facilities; which has achieved
the HACCP and GMP certified standard, this achievement propelled us to maintain
our high standards in quality. To ensure Top Fruits continuously deliver highest
quality fruits and downstream products, we strategically built our factory close to the
plantation. This is to ensure that fruits harvested can be efficiently & effectively
transported to the factory for further processing, cleaning and packing to ensure
freshness is preserved. Having our factory close to our plantations also helps reduce
operating costs which translate to lower prices to our consumer benefits.
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2.0 ORGANISATION
There are two types of organisation which are profit organisation and non-profit
organisation.
2.2.1 Profit
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owner. The start-up findings is from the sole proprietorship, partner or from their
shareholders and stockholders. The main source of this organization is revenue from
the sale of goods or services. The four main types of profit organisation are sole
trader, partnership, private limited company and public limited company.
2.2.2.2 Partnership
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proportion. The business is conducted by all the partners. The liability of this
business is unlimited. All the partners are legally liable for debts and can be sued.
The shareholders cannot sell or transfer their shares without first offering
them to other shareholders in the company. Shareholders must approve sale or
transfers of shares. This protection prevents any hostile takeover by a shareholder
or outside entity.
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http://www.smeinfo.com.my/index.php?option=com_content&view=article&id=892&Itemid=894
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Finally, the number of shareholders is restricted according to the company
bylaws. Typically, a private limited company has no more than fifty
shareholders. This is the balance to the hostile takeover and prevents dilution of the
company stock across too many portfolios. Limiting the shareholders keeps the
company manageable from a shareholder perspective making it easier to meet the
first two characteristics.
Unlike sole trader, the liabilities of its members are limited to the amount of
shares they hold in the company. There is separation between the owners and its
personal assets. If the companys failed to pay their debts, the creditors will not be
able to go after the personal assets.
The ability to sell shares to the public is very important to these companies
because it provides them with a source of capital to fund growth. The additional
revenue can be generated through additional offerings, which involve the creation
and sale of new shares within the marketplace.
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accountable. There are lot of legal formalities required for forming a public limited
company. It is costly and time consuming.
In order to protect the interest of the ordinary investor there are strict
controls and regulations to comply. These companies have to publish their accounts.
The original owners may lose control. Public Limited companies are huge in size and
may face management problems such as slow decision making and industrial
relations problems.
2.2.2.1 NGO
Top Fruits Sdn. Bhd. is more focusing on selling frozen and fresh fruits such
as durian, mangosteen, lime and jackfruits in the Malaysia and to the overseas. The
business ownership for Top Fruits Sdn. Bhd. is private limited company. The
meaning of private limited companies is that the liabilities of its members are limited
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to the amount of shares they hold in the company. For example, if Mr. Tans shares
in a Sdn Bhd amounted to RM10,000.00, and he has fully paid for the shares, in
general, he has no further liability with regards to the Sdn Bhd concerned.
There are many advantages for Top Fruits Sdn. Bhd. being a private limited
company. For example is limited liability. Top Fruits Sdn Bhd is treated as single
entity, making it responsible for all of the debts. If anything happens to Top Fruits
Sdn. Bhd., the members of Top Fruits are not personally affected because members
are only liable for unpaid shares.
Another advantage is tax advantage. Top Fruits Sdn. Bhd. enjoys tax
advantages in addition to limited liability. They pay corporation tax on their taxable
profits and tend to be exempt from higher personal income tax rates. Forming a
company instead of continuing as a sole trader or sole proprietor opens the door to
more tax-deductible costs and allowances redeemable against profits.
Next advantage is the finance and resources of Top Fruits Sdn. Bhd. When
more resources or large-scale production is necessary, forming a private limited
company protects the interests of lenders. With adequate funding, Top Fruits Sdn
Bhd can produce goods at a lower cost, thus increasing profits and customer
satisfaction. Furthermore, the future of the business becomes more secure.
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2.4 VISION AND MISSION
2.4.1 Vision
Based on my understanding, vision can be defined as the company set up the stage
for successful marketing strategies.
2.4.2 Mission
Based on my understanding, mission is the core purpose of the company why they
operate and usually the mission is related with their stakeholder. It outline the
specific role that the organisation plas to fulfil within society in the long time
duration.
Vision: To make Top Fruits the number one brand choice for every family
and to promote Top Fruits as good fruits, enriched life, an ideal brands
choice for every family.
Based on the vision of Top Fruits Sdn. Bhd on its website, their vision is
focused more to customers. To make Top Fruits the number one brand choice
for every family. They want to make their products which are mostly fruits and
frozen fruits as the most choices to every family. Top Fruits as good fruits,
enriched life, an ideal brands choice for every family. They also want to gain
trust from their customers that their fruits is good, fresh and healthy and also can
enriched their customers life. Besides, Top Fruits Sdn. Bhd. intentions is to make
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their products is the number one brand choices compared to other manufacturer of
fruits to the society.
Based on the mission of Top Fruits Sdn. Bhd., they focused more to
customers and their employees. Our aim is to offer products and service of
exceptional quality to our customers. This mission stated that their main
purpose in the long time duration is to offer the tip top products and services to
their customers. They also want to make sure they will have a good customer
relationship management between them and the customer. We strive to
continually improve in term of product development as well as customer
service to better assist our clients. They also work harder in improving their
product development of their product such as Research and Development (R&D) to
fulfil customers needs and wants and customers satisfactions. Their mission also
focused to their employees to provide a good customer services to their customers
in helping their customers.
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3.0 STAKEHOLDERS
People or small groups with the power to respond to, negotiate with, and
change the strategic future of the organization' (Eden and Ackermann 1998:
117)
There are two types of stakeholders which are internal stakeholders and external
stakeholders. Stakeholders include owners, managers, workers, customers,
suppliers, lenders, community, employees, competitors, government and etcetera.
Internal stakeholder can be defined as the individual and parties that are the
part of the organization. They are the primary stakeholders in a business. Internal
stakeholders include employees, owners, board of directors, managers, investors
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and etcetera. I will discuss two internal stakeholders who give influence on Top
Fruits Sdn. Bhd. and the demands that I think they make on Top Fruits Sdn. Bhd.
As example, the employees or the workers of Top Fruits Sdn Bhd. They also
give impacts or influences to the company. They can influence the success of an
organization by their productivity and their efficiency in the job, and their day-today
task. The demands they make on Top Fruits Sdn. Bhd. is about salary. Employees
are concerning about their salary. One of the reasons they are working at Top Fruits
is because they want to get money. Their demand is also to upgrade the quality of
themselves so that they can improve their quality of work in the company. They may
request for motivation, proper training or empowerment to help them deliver a
better customer experience. They also demand for bonus or reward if the company
gain high profit towards the sale.
External stakeholders refer to the parties or groups that are not part of the
organization but get affected by its activities. They are also highly affected by the
decision-making process that had been made by the organization. They are the
secondary stakeholders in a business. External stakeholders include suppliers,
customers, creditors, clients, intermediaries, competitors, society, government and
etcetera. I will discuss two external stakeholders who give influence on Top Fruits
Sdn. Bhd. and the demands that I think they make on Top Fruits Sdn. Bhd.
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As example, the customers of the fresh fruits and frozen fruits that had been
produced by Top Fruits Sdn Bhd. They give a very big influence to the company.
Customer is the king and customer is always right. If the customer is satisfied with
the product, they will recommend it to their associates or repeat purchases. In order
to fulfil customers satisfaction towards their product, they need to produce a high
quality product (fresh fruit and frozen fruit). The core to do a business is to gain
profit. So, Top Fruits should sell their products with reasonable price. Due to buyers
demand who want to get high quality product, Top Fruits should not sell their
product at higher price. If the price is too much higher, the number of customers will
reduced and this can give big influence to that company. Customers demand to the
company is they want to get the high quality product which is fresh fruit and frozen
fruit at reasonable price.
Next stakeholder is government. Top Fruit Sdn Bhd is guided and controlled
by government rules and regulations like the company has to pay taxes to the
government. Government can influence Top Fruits Sdn. Bhd. by introducing new
laws that can give affects to the operation of the business. Governments demands
to Top Fruit Sdn Bhd may be the tax such as tax revenue and etcetera. They also
demand for the job and employment that available for suitable employees. They
want to see Top Fruits Sdn Bhd become successful. It is because they want to
ensure that both jobs and tax revenue are maintained.
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4.0 CORPORATE SOCIAL RESPONSIBILITIES (CSR)
There are many importance to the organization when the organization applying
Corporate Social Responsibilities.
Firstly, they can improve their business reputation and standing and also give
positive image about their organization. Applying social responsibility will encourage
the organization to act ethically and consider about other stakeholders. Organisation
also will find ways and make improvement in their services and products that
actually can deliver benefits for the community.
Next benefit is the company can enhance their relationships with their
customers. A strong corporate social responsibility framework is essential to build
and maintain trust between the company and the customers. It can strength ties,
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build strong relationships both of them. For example, they can partner with no-profit
organization by supporting their public value outcomes because their funding is
limited because the organization is not for gain profit.
Another benefit is CSR can give the employees the feeling of happiness when
they are making CSR activity. CSR activities can strengthen the bond between the
employees who work together in the organization. This can make the bonding
between them become more stronger and they can be a good friend. When the
company start doing CSR activity, people will start believing in your brand and they
will start to trust your products created by you. The positive world of mouth can help
the company generate more revenues.
Starbucks is the example for the company who make CSR. Starbucks has
high corporate social responsibility performance in addressing the interests of
most of its stakeholders. The company satisfies most of the concerns of
stakeholder groups like customers, employees, suppliers, the environment,
and investors. (Andrew, 2017)
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through investing in the relationships and therefore developing an ethically
recognized brand. CAF Practices is a combination of goals and standards that
Starbucks and Conservationists International created to support sustainability and
improved growing practices for coffee farmers that supply Starbucks (Starbucks
Coffee, 2004, 2010).
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5.0 CONCLUSION
In a nutshell, business environment give big impact and influence to the Top
Fruits Sdn Bhd itself. It is very important for every organisation to understand their
business environment.
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6.0 REFERENCES
Allen, L. A. (1958). Management and organization: Louis A. Allen. New York: McGraw-Hill.
Dana Griffin, (n.d.) The Advantages of Private Limited Company. Retrieved from:
http://smallbusiness.chron.com/advantages-private-limited-company-5030.html
Andrew Thompson (2017, Jan 31) Starbucks Coffees Stakeholders: A CSR Analysis.
Retrieved From: http://panmore.com/starbucks-coffee-stakeholders-csr-analysis
Samantha Muir (2015, July 24) Top 5 benefits of Corporate Social Responsibility. Retrieved
from: http://cubegroup.com.au/top-5-benefits-of-corporate-social responsibility/
James Epstein (2012, Feb 21) Six Reasons Companies Should Embrace CSR. Retrieved
from: https://www.forbes.com/sites/csr/2012/02/21/six-reasons companies-should
embrace-csr/#3f36bc7d3495
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