BeSmart is a non-profit organization in Malaysia that trains and supports youth and young adults who want to start businesses. It aims to help students establish and grow their enterprises. BeSmart's strategy is to train at least 5 students in its first 6-month program, increase student enrollment by 100% annually for 5 years, and have 40% of students start businesses within a year. It faces threats such as low youth interest in entrepreneurship, but seeks opportunities like government scholarships for entrepreneurs. BeSmart will use marketing, partnerships, and promoting benefits of entrepreneurship to address threats and pursue opportunities. It implements a vertical functional structure and decentralized decision-making to support its goals.

1. SWINBURNE UNIVERSITY OF TECHNOLOGY SARAWAK
Group report
Written by
Abdullah Alesry (4312309)
JakobLyholm Andersen (100060172)
Aldridge Prometheous Rebeiro (4237721)
Lee Shaw Hieng (100062440)
Mikhail Stefantsov (100062026)

2. Organisation and Management
Contents
Introduction and selection of business...............................................................................................2
Strategy..............................................................................................................................................................2
External Environment ................................................................................................................................2
Socio cultural/customers (Threat)...................................................................................................2
Political/legal.............................................................................................................................................2
Economical.................................................................................................................................................3
Structure............................................................................................................................................................3
Culture................................................................................................................................................................4
Control ...............................................................................................................................................................4
Leadership........................................................................................................................................................5
Motivation........................................................................................................................................................6
Appendix...........................................................................................................................................................7
References........................................................................................................................................................9

3. Organisation and Management
Introduction and selection of business
BeSmart is a non-profit organization, specializes in training, motivating and supporting the youth and
young adults who wish to start their businesses in Malaysia. We helpour students and support them to start
and run their businesses as time goes on. We started BeSmart Company because we saw an opportunity,
whereas the government is ready to help these types of organizations. Despite this we as students we’ve
seen many of our friends who got stuck and couldn’t continue their businesses as soon they started
because they didn’t know the basic foundation of how to control their businesses, so we decided to help
them to improve and maximize their knowledge and gain their business into the next level.
Strategy
Our mission in BeSmart is to establish youth and young adults and make them know how to control their
businesses. Our service is to train, motivate and consult them to help them through their journey as a start-
up business where we show them what they’ll go through and how to cope with competition, and to make
them a better entrepreneur in the future. Finally our three main goals are as follows: Firstly to start our
first training program over a duration of 6 months with at least five students and one trainer and as we
progress we will increase the number of students and trainers in our organization. For our second goal we
decided to get a minimum increase of students of 100% per year for the first five years. Finally at least
40% of our students can proceed into businesses within one year,as they can start their own businesses.
External Environment
Socio cultural/customers (Threat)
The youth and young adults are currently not willing to take the risk in becoming an entrepreneur. This is
a great risk of our organization because without costumers, BeSmart will not have a subsistence for their
business. However, this is also one of the reasons why Malaysia is in need of a corporation like BeSmart.
People do simply not have enough knowledge regarding entrepreneurship.
To eliminate this threat BeSmart will have to promote the benefits of becoming an entrepreneur. This
should be done through marketing in early stages (high school and university), as it is easier to affect
younger humans. BeSmart will furthermore establish corporation with the Malaysian government and
other businesses to increase awareness of benefits of becoming an entrepreneur. BeSmart will make use of
some of the opportunities in the external environment to pursue potential consumers to become
entrepreneurs.
Political/legal
In connection to the socio cultural threat of low willingness to become entrepreneur in Malaysia, the
Scholarship from government to entrepreneurs between 20,000RM and 100,000RM is considered as an
essential opportunity. First and foremost it is an important factor to attract and motivate entrepreneurs in

4. Organisation and Management
Malaysia. To meet this opportunity, BeSmart will spread the news of assistance from the government via
marketing, to attract new students/entrepreneurs. Secondly, as BeSmart is also considered a new company,
it will also be applying for the initial capital.
In Malaysia the government spending on education corresponds to 19% of the total government spending.
This indicates a government which are willing to invest in the future, and which strive to promote the
national productivity. To exploit this opportunity BeSmart will have to become accepted as an educational
institution to receive funds from the government. This acceptance will be crucial for BeSmart, as an
unprofitable organization, to survive.
Economical
(Unemployment rate of 2.7%, Interest rate 2.25%, GDP 6.4%)
A healthy economy is almost always preferred by companies, and especially newly started companies. It is
known that upturns in an economy, is affecting that even ineffective companies can establish and survive.
However it is often seen that these companies goes bankrupt in downturns.
A healthy economy is from a macroeconomic point of view associated with relatively low unemployment,
low interest rate and stabile growth. These factors are fulfilled in Malaysia.
This is considered as a huge opportunity for BeSmart, both as a newly started company, but also as creator
of entrepreneurship. The benefits are that low unemployment leads to increased disposable income of the
Malaysian population. When people have more money in their pocket, they tend to spend it. This causes
consumption to increase. As it is of very well known, consumption is somewhat equal to the turnover of
companies. It shows that it is easier to sell your products when unemployment is low, and therefore more
ineffective companies can survive.
A low interest rate leads to cheaper opportunities to borrow capital. This is important when to start up a
new business as this need an initial capital to start up. GDP is what drives low unemployment. GDP is the
measure of the productivity in a country. If a country is productive, this creates jobs which have a direct
influence on the unemployment rate to decrease.
This opportunity should be used to eliminate the socio cultural threat. In corporation with the Malaysian
government and other business´s should be emphasized that it currently is the time for entrepreneurship
due to healthy macro economy.
Structure
For the structure of our company we chose the vertical functional approach (Samson, D. & Daft, R. 2009,
p. 336) whereby the management has three different departments under it (see attached structure in the
appendix). On top of our company stands the Chief Executive Officer (CEO), who leads BeSmart. To
support the CEO we will have a corporate staff, the Vice President, who represents the CEO in absence.

5. Organisation and Management
Follows by the last three departments marketing with 2 employees, finance with one employee and
Human Resource Department (HDP) with 2 employees. Further the company will be decentralised
structured. The reason for that is that the employees (our trainers) are encouraged to participate and to
contribute their ideas. Despite this our customers (students) could also have suggestions, which our
trainers will include in their program and focus more on it. So the decision authority is located near lower
organisation levels. To control our trainers and their success we will use the principle of formalisation by
composing an abstract after each meeting between the trainers and the students.
Culture
The culture of a company can be described as the set of values and beliefs shared by the members in an
organisation (Samson, D. & Daft, R. 2009, p. 111). BeSmart will try to engage high performers (trainers)
to create an environment with a unique personality, soul and with a passion for performance.
The background of our logo is that Be Smart stands for creativity, intelligence and individuality. We
deliberately chose the brain as a symbol for this. Furthermore stands the left brain for the logic, structure
and organization of our company. Compared to this stands the right brain for creativity and individuality
of our work. With respect to the latter, we have deliberately chosen the fingerprint, because BeSmart want
that our employees identify with us and they should be proud of their results. With the blue color is often
associated the sea and that is what we want to achieve. Our mission is to make our students great
entepreneurs in the future. Metaphorically expressed: Our small fish in shoals (students) become greater
independent fish (entrepreneurs) in the big blue ocean (world of work). Our slogan is already included in
our logo and company name because we wanted to use the word game with the “Be”. “Be smart, be an
entrepreneur” is short, concise and has a recall value.
Control
Regulating organizational activities so that it can be made consistent with expectations established in
plans, object and standard of execution is known as control. No organization can establish itself as a good
entity without a good knowledge over “Control” and its aspects. So for our organization we have divided
our goals to be achieved according to the three control patterns, such as- Feed-forward, Concurrent and
Feedback control.
As mentioned previously, our goals for BeSmart are very precise. In order to control the goals and to
ensure it’s achieved we have come to a conclusion that, the goals can be handled and controlled in the
below ways:

6. Organisation and Management
 Start with five students and one trainer: This is mainly an operational goal for the first six months.
To achieve this goal
 Expert Human-Resource officers need to be employed. This is the Feed-Forward control
of the above goal.
 The concurrent control would be for the Human Resource Division to set up campaigns
to rally students whom are interested to become entrepreneurs.
 The Feed-back Control would be done by getting five of the shortlisted students to fill up
necessary forms and documents that would build a bond of trust and belief as they would
be under proper guidance and cooperate in the training sessions.
 Minimum increase of 100% students: A tactical goal set for the first two years to maintain
organizations good-will and also bring an increase number of trainees. This goal can be controlled
as the above method given. But as this goal is set for two years, it must be mentioned that, the
increase of students is only possible if the students who has already received training are good in
their business. This would relate to the achievement that BeSmart would achieve when every
student would be able to run their organizations properly.
 40% students setting up their own enterprise: In order to ensure that our organization is
successful in its main purpose of serving students to develop as entrepreneurs, we need to keep
track of the trainees after they are done with their whole training course. This is mostly of getting
a feedback from them whether thetraining they received was a success or not. This would also
ensure that our organization has managed to achieve its purpose and rendering good service for
the novices. In any case, if the numbers aren’t satisfactory, than our organization would have to
come up with more innovative methods of training to control the situation and achieve success. So
it is very important to get proper feedback from students by any means.
Leadership
According to David Mielach (2012), there are more than 10 ways to put up the definition of leadership and
one of them defined that leadership is the skill to put motivation in others to achieve desire goals; while
management is focused on work or task, leadership in the other way round focused on the person. Our
company BeSmart applies democratic in our leadership role. With democratic as our behavioral
approaches,our employees will be more participative in final decision-making; they will not feel shy to
share their opinions and thoughts to the leader. This will eventually lead to a more efficient and high
productivity among employees.
BeSmart also applies Ohio State University Studies into our leadership role. The leader is always sensitive
and respects whatever opinions and ideas provide by the employees. This is because, our employees is the

7. Organisation and Management
one who deal with the trainees and because of that they know the trainees situation well, they know which
way that suites and help the trainees best, so if the leader does not take the employee’s ideas into thoughts,
there will be no improvement. Mutual trust is build and establish in here. For the initiating structure, we
have defined that we will use the principal of decentralization. This means that we are sensitive leaders
and influenced by our students. If some of our students have wishes regarding special topics etc. our
trainers will focus more on this.
We also applied two theories which are Fiedler’s contingency Theory and Path Goal Theory. For Fiedler’s
contingency Theory, our leadership is based on relationship-oriented and task oriented. Our leader will
perform better when one is good in leader-member relationship, unstructured task and weak leadership
power. For Path Goal Theory, we applied all the leader behavior which contains supportive leadership,
directive leadership, participative leadership and achievement-oriented leadership.
Motivation
BeSmart will apply Expectancy Theory into our motivation role. Vroom defines Expectancy theory as a
process controlling by the employees that make choices based on their estimation of the performance or
their desires outcomes. Expectancy Theorycontains three main elements which are Effort (E),
Performance (P) and Outcomes (O). If our employees produce a large effort but not performing well, we
will offer them training program. We will make their work more flexible if they are putting a great effort
and performing well. The productivity of the company will skyrocket if these three elements are
performing high. We also apply Equity theory into our business model. The whole idea of John Stacey
Adams’s equity theory states that equity and fairness are key components for employees to get motivated.
This theory focuses more on how the employees feel how fairy they are treated relative to others. If two
departments have been evaluated for their work quality, we will reward for those who perform better. For
example, if human resource department and marketing department are evaluated in the same time, if one
of them does better than the other, we will change the outcomes reward them by reduce their work load
and giving year-end bonus. Employees will be more motivated when an individual’s perception of equity
is high.

8. Organisation and Management
Appendix
External environment
Opportunities Threats How to respond
Political-
legal
Scholarship from
government to
entrepreneur (Min.
20,000RM - max
100,000RM)
Use it to encourage/attract students via promotion and PR to become
entrepreneurs
Government spending
on education (19%
relativeto 15% in
Denmark)
BeSmart will make an request to become accepted as an
educational institution to receivefunds from the government
Economic Unemployment rate of
2.7%
BeSmart will encouragestudents to startup while
consumption is high
Interest rate 2.25% BeSmart will encouragestudents to startup whileinterest
rate is low(easier to startup BeSmart)
GDP (annual growth rate
of 6.4%)
BeSmart will encouragestudents to startup while
consumption is high/stabile
Socio cultural The youth and young
adults willingnessto
become entrepreneur
(5%) (might be due to
poor knowledge on
how to startup)
To increasethe number of people we will haveto promote
the benefits of becoming an entrepreneur. This should be
done through marketing in early stages (high school and
university).BeSmart will furthermore establish corporation
with the government and other businesses to increase
awareness of benefits being an entrepreneur.
Technological Can lead to new
products and services (e-
learning)
BeSmart will haveto adaptthe fastmoving technology, to
optimize costs,processes,and learningtowards the students.
Suppliers Companies send guest
trainers for
ideas/skills/training(CSR
is athigh level in
Malaysia)
BeSmart will ask and motivate companies and universities to
send staff with different specialties to teach and supervises
the students and BeSmart as a company
Funds from other
companies
BeSmart will promote their business idea to potential partners
via HR department.
Many suppliers of IT
equipment, and
interior(e.g. Office
equipment) (low
bargainingpower)
BeSmart will make sureto use the best priceto performance
supplier to be costeffective
Customers Students (They are
not willingenough to
take the risk)
BeSmart will haveto equip the students properly to be
entrepreneurs.
Competitors Could be used as
sparringpartners
MET 1 and startup
Malaysia(Notreal
competitors)
To make this a opportunityBeSmartwill be surgustingto
corporate with ideas and knowledge
Labor market Malaysiahas a stabile
percentage of highly
educated people
(PROVE)
BeSmart will make use of (HRM planning,job analysis,
forecasting,recruitingand selectingmethods to attract an
effective workforce)

9. Organisation and Management
Logo
Structure

10. Organisation and Management
References
David Mielach 2012, ‘How to Become a Great Leader: 15 Entrepreneurs Weigh In’, viewed 17
November 2014, <http://www.businessnewsdaily.com/3269-how-to-be-a-leader.html>.
Scholarships from government
http://www.smebank.com.my/sme-financing/programmes/young-entrepreneur-fund-yef/
Government spending in Malaysia vs Denmark
http://www.tradingeconomics.com/malaysia/public-spending-on-education-total-percent-of-government-
expenditure-wb-data.html
Unemploment rate
http://www.tradingeconomics.com/malaysia/unemployment-rate
GDP
http://www.tradingeconomics.com/malaysia/gdp-growth-annual
Corporate willingnes to sponsor educational institutions
http://www.momumomu.org/sponsors.html
The youth and young adults willingnes to become entrepreneur is low
http://www.researchgate.net/profile/Amran_Awang/publication
Present the maslowshierachy
Campanies send geust trainers for ideas/skills/training (CSR is at high level)
http://www.tnb.com.my/corporate-social-responsibility.html
Partners which funds our company
http://www.startupmalaysia.org/partners/
Businessballs.com, (2014). leadership/management - management and leadership theories,
maslow's hierarchy of needs, change management, kotter's change stages, kolb's learning styles,
honey and mumford learning styles. [online] Available at:
http://www.businessballs.com/leadership-management.htm [Accessed 26 Nov. 2014]
Education Portal, (2014). What Is Motivation In Management? - Definition, Process & Types -
Video & Lesson Transcript | Education Portal. [online] Available at: http://education-
portal.com/academy/lesson/what-is-motivation-in-management-definition-process-
types.html#lesson [Accessed 26 Nov. 2014]
Fleishman, E. (1953). The description of supervisory behavior. Journal of Applied Psychology,
37(1), pp.1-6.Leadership-Central.com, (2014). Fiedler's contingency theory. [online] Available
at: http://www.leadership-central.com/fiedler%27s-contingency-theory.html#axzz3K9K4qlHz
[Accessed 26 Nov. 2014]