ENTREPRENEURSHIP

By
First Admiral Adjunct Prof
Dato’ Ir Hj Ahmad Murad B Hj Omar (Rtd)
BE (Mech) MSc EBM (Warwick)
FIEM FIMarEST MSNAME (US)
PEng CEng CMarEng ASEAN Eng

17th Nov 2015

Entrepreneurship UTM Nov 2015 1

 First Admiral Dato’ Ir Ahmad Murad B Omar (Rtd)
Position: Executive Chairman
Omahams Corp Sdn bhd/Leadership
Coach
Education
1982 - BE (Mechanical) UTM
2003 - MSc Business Engineering Management
Warwick UK
Key Strengths
• Development of Engineering Management
Skills (Hard & Soft Skills)
• Project Management (Marine Projects)
• Extensive knowledge in ship repair &
shipbuilding.
• Strong relationship with international
professional body – Institute of Marine
Engineering Science & Technology
(IMarEST) UK (Position held: Vice
President).
• Professional Engineer registered with
Board of Engineers Malaysia (BEM).
Languages
• Bahasa Malaysia
• English
Office: Kuala Lumpur Nationality: Malaysian
Working experience Key
1999projects
- 2000
Projects managed through-out career:
Joined the Royal Malaysian Navy 1974 .
- 1984 KD MARIKH Offshore Patrol Vessel
Served :
- 1990 (KD JEBAT) design machinery space
- 1982 Fleet Maintenance Engineer.
in Bae Shipyard Scotland.
- 1984 to 1990 Project Engineer KD
- 1994 Refit KD LEKIR
MARIKH
- 2001 Fast troop Vessel Conversion
- 1990 UK exchange engineer at Bae
- 2002 KD Sri INDERAPURA Refurbishment
Shipyard Scotland
- 2004 KLD TUNAS SAMUDERA
- 1991 to 1994 Marine Engineer of KD
- 2007 Remanufacturing Mercedes Benz
LEKIR (Corvette)
Trucks for Malaysian Army
- 1995 to 1999 Fleet Operations
- 2008 Restructuring of Motor Teknologi
Command as Staff Marine
Industri Sdn Bhd as a Remanufacturing
Engineering Officer
hub for MTU engines.
- 2000 Director Engineering Ministry of
- 2009 Six Sigma project for Boustead
Defence
Naval Shipyard
- 2001 to 2004 Director General
- 2010 Committee for development of
Engineering Ministry of Defence
National Oceanography Blueprint with
- 2004 2007 Fleet Systems Commander
MOSTI.
(First Admiral)
- 2011 Committee for national Maritime
- 2007 – Retired
Shipbuilding & Ship Repair Industry with
Joined MTI Sdn Bhd as CEO 2007 to 2009
MiGHT
Joined Genaixis Sdn Bhd as Chairman
- 2013 Process Improvement & Production
2009 to 2010
Capacity Integration Project for Boustead
2010 – current OMAHAMS Corp Sdn Bhd
Naval Shipyard.
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 Syed Mokhtar
• Tan Sri Syed Mokhtar Shah bin
Syed Nor Al-Bukhary merupakan
seorang ahli perniagaan dan
usahawan Melayu yang terkaya di
Malaysia.
• Beliau mempunyai harta bernilai
RM2.93 billion pada 2005
seterusnya menjadi orang ketujuh
terkaya di Malaysia pada 2005.
• Dilahirkan di Alor Setar pada
1951.
• Mula sebagai usahawan 1970.

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 Tony Fernandez
• Dato' Anthony Francis Fernandes
is a Malaysian entrepreneur and
the founder of Tune Air Sdn. Bhd.,
who introduced the first budget
no-frills airline, AirAsia, to
Malaysians with the tagline "Now
everyone can fly".
• Born 1964 in Kuala Lumpur.
Followed mother to
TUPPERWARE parties when
young.
• Turned Air Asia around
• Worth 530 million

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 Jack Welch
• Jack Francis Welch Jr, a chemical
engineer, CEO of General Electric for
two decades.
• Known for his leadership and
uncaring and rigid character.
• Born Nov 1935 in Peabody
Massachussets USA.
• Retired. Worth 750 Million USD
(aprox 3.4 billion Ringgit Malaysia)

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 Entrepreneur
• More than just a business.
• A person who identifies
– opportunities and pursue it relentlessly,
– allocate resources and
– create value

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 Entrepreneur
• is someone who organizes, manages,
and assumes the risks of a business or
enterprise. An entrepreneur is an
agent of change.

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 “Entrepreneurship”
• is process of discovering new ways of combining
resources.
• is the process of starting a business, typically a start-
up company offering an innovative product, process
or service.

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 IT IS ABOUT SEARCHING THE MARKET
PLACE AND CONSOLIDATING RESOURCES.

planning

risk organizing

assuming opportunities

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 HABITUAL ENTREPRENEURS’ HAVE
5 CHARACTERISTICS IN MIND

 They passionately look at new opportunities

 They pursue opportunities with enormous discipline.
 They pursue only the very best opportunities exhausting
themselves and their organization by chasing every single
option .
 They focus on execution especially adaptive execution.
 They engage the energies of everyone in the domain.

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 Case Study – John Macekey Story
1978 USA- land of meat and fast food
John never had business training neither did his girlfriend
(Renee)
Both 25 and 21 respectively
Collected 45k from close friends and relatives to start a
natural food store
Named it “Safeway”
First year sales was 300k but actually loss 23k.
After 2 years John wanted to relocate but shareholders were
against it.
Moved from selling vegetarian food to meat and poultry. First
natural food store – “Whole Food Markets” open in 1980.
Food was from natural growers and farmers. Quality high and
sales went up.

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1978 USA- land of meat and fast food
John never had business training neither did his girlfriend
(Renee)
Both 25 and 21 respectively
Collected 45k from close friends and relatives to start a
natural food store
Named it “Safeway”
First year sales was 300k but actually loss 23k.
After 2 years John wanted to relocate but shareholders were
against it.
Moved from selling vegetarian food to meat and poultry. First
natural food store – “Whole Food Markets” open in 1980.
Food was from natural growers and farmers. Quality high and
sales went up.

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CASE STUDY 1 - summary

• John employed 19 workers.

• Disaster struck. 400k wiped-out.
• Within 30 days help from friends, banks and loyal
customers. Came backand later 38 stores mushroom in
USA.
• Since then 16 major acquisitions
• 1992 there were 12 stores and 92M$ sales. Invested in
NASDAQ stock exchange.
• Acquisitions of companies that had same ethics as Whole
Food Markets
• Today Whole Food Markets has 270 stores in North
America, 54,000 staff the world‟s largest retailer in organic
foods.

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BUILDING A BUSINESS

• Competitive edge
• Challenging Times
• Time is of the essence
• Elements contributing successful business

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ELEMENTS CONTRIBUTING
TO SUCCESSFUL BUSINESS
• Become a leader
• Develop a business plan
• Surround yourself amongst people
• Offer a product and service
• Design a marketing plan
• Perfect a sales process
• Create a customer experience

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FOUR FACTORS OF LEADERSHIP

Leader

Situation Follower

Communication

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LEADERSHIP GRID
(BLAKE & MOUTON MANAGERIAL GRID)

C 1,9 9,9
o CountryClub TeamLeader
n
c 9
e
r
8
n 7
6
of 5 Middle of the Road
p 4
e 3
Impoverished Authoritarian
o 2
p 1,1 9,1
l
1
e

1 2 3 4 5 6 7 8 9
Concern of Results

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LEADERSHIP STYLES
Autocratic leadership. Being in control commands the staff to do and how to do it.
Overdoing results in staff losing creativity and respect. Used sparingly and at the
right instance will bring good to the organization.

Laissez faire leadership. Lay back kind of style and allows the staff to make
decisions and run how they think best. Continue along this track may result in total
loss of control and direction. Effective when managing experts to facilitate creative
thinking.
Shared leadership. It’s a partnership where the leadership of individual is shared
between the leader and the staff member. Aimed at delivering optimum
performance in a motivated and cooperative environment.

Simon Cooper “Brilliant Leader”

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3 PRINCIPLES OF
LEADERSHIP

Passion

Purpose Performance

Leadership

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DRUCKER’S 3 LEADERSHIP GUIDELINES

EXPECT VOLUNTEER
SOME MAKE
FAILURE BUT MISTAKES &
KEEP AT IT LEARN

NEVER STOP
LEARNING

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LEADERS ARE BORN?

Competency Based Leadership Model

Hands-off
Key decision leadership style
point
Level 4 Fully
competence
Level 3
Broadly
competence
Level 2 Par al
Hands-on competence
leadership
style
Level 1 No
competence

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 No one is a born leader
• Everybody starts equal
• Mary Kay Ash – built a billion dollar Kay
Cosmetics Corporation with only
USD5000.
• Took the first step when she was a child
unknowing what leadership is about.
• She had to manage the household at
three when her father was sick and her
mother had to care for her father.
• Leadership started young, believe in
faith, family and career.

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LEADERSHIP - Traits

 Self-esteem
 Values and standard setting
 Clear vision and mission
 Make sound timely decisions
 Motivation

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 DEFINING VISION & MISSION

• Why do we need to develop a Vision?

– A vision is essential as it refers to a picture in the future
with some implicit or explicit commentary on why people
should strive to create that future.
– In a change process a Vision serves three different purposes:
• clarify the general direction for change.

• it motivates people in the direction where the business is

heading to.

• helps to coordinate the actions of different people in a

remarkably fast and efficient way.

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DEFINING VISION

• Corporate vision is a short, succinct, and inspiring statement

of what the organization intends to become and to achieve at
some point of time in the future often stated in competitive
terms.
• Vision refers to the category of intentions that are
broad, all-inclusive and forward-thinking.
• It is the image that the business must have of its goals
before it sets out to reach them. It describes aspirations for
the future, without specifying the means that will be used to
achieve those desired ends.

p 67 …….Leading Change by John P Kotter, Library of Congress Publication, 1996,

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DEFINING MISSION
Mission statement;
• A mission statement is an organization’s vision
translated into written form. It makes concrete the
leader’s view of the direction and purpose of the
organization. The reason for its existence.

• A mission statement should be a short and concise

statement of goals and priorities.

• Ideally mission statement should refer to your

customer and the difference that your product or
service is going to make in their lives.

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SURROUND YOURSELF
AMONG GREAT PEOPLE

• The greatest untapped natural resource and the most

expensive in any organization is its people.
• Are your people working well together
• Great people are effective people
• Attributes to look for in effective people;
• Smart
• Savvy
• Hardworking
• Ambitious
• Nice in a constructive way adding value

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OFFER A PRODUCT OR
SERVICE

• Customer response
• Quality (durable and reliable)
• Reputation will make or break you
• Is price the criterion always?
• Offer “solutions‟ not product

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DESIGN A MARKETING PLAN

IS THERE MARKET MARKET CONCENTRATED

ENOUGH
Is there Who is
market? competitor?

Market
concentrated
enough
Is market big
enough?
IS MARKET To
BIGpursue?
ENOUGH WHO IS THE COMPETITOR

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FOCUS ON MARKETING
PRINCIPLES

specialization differentiation

segmentation concentration

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PERFECT A SALES PROCESS

Customer
delight

Customer Returning
interface customer

Must
profitability generate
return
(income)

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CREATE A CUSTOMER
EXPERIENCE

Selection
Specialized Quality
service

Responsible Delivery

reliability Employee
satisfaction

Commitment
response CUSTOMER by
employees

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 Hewlett Packard Story
• William Hewlett & David Packard –started from a
garage.
• Both engineers. Designed urinal.

• Then produced audio oscillator (1939)

• 1st year sale US5,639, profit US1,563.
• David then did accounting & business law.
• From garage move to a building. FIRE.
• 1996 HP went into computer business. First
computer created.
• 1998 first desk top scientific calculator. (HP9100A)

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HP CONTINUED
• Where is HP today?
• 60 years of innovation and a series of
disappointment.
• In 2007 HP was the first IT company in history to
post revenues in excess of USD100Bn .
• Largest technological company.
• Where did it all started?
• Two engineers in a GARAGE.

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Engineers Contribution to Society and
Ethical Practice

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Engineers’ Responsibility
• To the mankind
• To profession , and
• To environment

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 This (6) guidance describes the role of
professional engineers in sustainability.
• Contribute to building a sustainable society, present and
future
• Apply professional and responsible judgment and take a
leadership role
• Do more than just comply with legislation and code
• Use resources efficiently effectively and
• Seek multiple views to solve sustainability challenges
• Manage risk to minimize adverse impact to people or the
environment
Ref: Engineering Council UK (www.engc.org.uk)

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The role of professional engineers in sustainability
• Professional engineers have a significant role to play in
sustainability.
• Work to enhance welfare, health and safety of all.
• With minimal of resources and paying regards to environment and
sustainability of resources.
• Engineers are providers of options and solutions to maximize social
value and minimize environmental impact.
• A pure environmental approach is insufficient.
• Look at poverty alleviation, social justice and local as well as global
connections.
• Leadership and influencing role of engineers should be priority.

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Sustainable development

• The goal of sustainable development is to enable all people throughout

the world to satisfy their basic needs and enjoy a better quality life
without compromising future generations.
• The following principles have been agreed in the UK;
– Living within environmental goals
– Ensuring a strong , healthy and just society
– Promoting good governance
– Achieving sustainable economy
– Using sound science responsibly

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Contribute to build a sustainable society ,
present and future
• Engineers have a responsibility to maximize the value of their
activity towards building a sustainable world.
– Recognize through their activity may be local and immediate but the
impacts of their work may be global and long-lasting.
– Understand other relevant social and cultural structures outside own
community practice.
– Understand important potential role of engineers in the sustainable
development of communities.
– Recognize impacts of engineering projects on communities, global
and local and consider views of community.
– Understand important role of engineers.

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Apply professional and responsible judgment
and take a leadership role
• Engineering is a profession with strong ethical dimension. In making
sound judgment engineers should:
– Look at broad picture.
– Ensure knowledge n sustainable development is current.
– Be prepared to influence the decision-maker of a project.
– Identify all issues and options to the decision-maker such that the
decisions are sound.
– Identify options and take note of global, economic, social and
environmental outcome.
– Endure solutions and options offered will contribute to sustainability.
– Be aware that there are inherent conflicting and un-measurable
aspects of sustainability.

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Do more than just comply to legislation and
codes
• In seeking sustainable solutions compliance to codes and legislation
alone is insufficient and engineers should:
– Strive to go beyond minimum where possible anticipating future
legislation.
– By their example help others to improve.
– Drive future legislation.
– Alert relevant authorities if there are deficiencies in legislation and if
sustainable outcomes can be endangered by regulation change.
– Use technical expertise to influence development of new legislation
and codes.

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Use resources efficiently and effectively
• Engineers have a stewardship role with planetary resources and a
responsibility to society to create more useful products with lowest
possible use of raw materials , water and energy.
– Understand there are environmental limits and finite resources.
– Reduce resource demands.
– Reduce waste production.
– Use systems and products that reduce embedded carbon , energy and
water use, waste and pollution.
– Adopt strategies for re-use, recycling, decommissioning and disposal
of materials.
– Minimize any adverse impacts on sustainability at design stage.
– Work to repair any damage.

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Seek multiple views to solve sustainability
challenges
• The increasing complexity of sustainability challenges means
engineers working alone can no longer address all issues:-
– Engage with stakeholders and all professionals at every stage of a
project. Including non-specialists.
– Avoid working in isolation.
– Utilize cross discipline knowledge and diverse skills.
– Promote important leadership role of the engineer in finding solutions
to sustainability challenges for benefit of society.
– Seek a balanced approach.

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Manage risk to minimize adverse impact to
people or the environment
• Engineers are routinely involved in planning and managing projects
, where they should:
– Harness skills to minimize damage to people or environment from
engineering process and products.
– Undertake comprehensive risk assessment before project launch.
– Ensure risk management include potential environment , economic
and social impacts beyond he economic life of the project.
– Recognize the long term risk impact.
– Give sustainability the benefit of any doubt , adopt a precautionary
approach where scientific knowledge is not conclusive.
– Investigate monitoring systems so that any environmental or social
impacts are identified early.

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 Conclusion
Challenges for engineers in contributing
towards sustainability is plenty
Political might and drive
Integration between various
technologies
Leadership
The ever changing needs and
requirements of society
 Conclusion (continued)
Engineers contribution to society can be
effective if:
Integration between science and technology
coupled with creativity and innovation augmented
by planning and design excellence in meeting
society demands.
 Conclusion (continued)
 Some examples of Engineer’s contribution to society, the
profession and environment are:-
 Advancement in manufacturing towards improved end user
satisfaction and material ad cost optimization.
 Solving existing problems and useful to society
 Energy enhancements contributing to society comfort
improvements
 Averting natural disasters and containing damange and risks.
 Conducting research and development towards improving
planet earth environmental sustainability and negative impacts.
 Improving transportation modes for ease and time optimization
for mankind.
BOOKS RECOMMENDED FOR
FURTHER READING
Now Build A Great Business by Mark thomson/Brian Tracy,
American management Association 2011.
Brilliant Leader by Simon Cooper, Prentice Hall , 2008.
Entrepreneurship, by Peggy A Lambing & Charles R Kuehl,
3rd Ed, Prentice Hall 2003.
How They Started in Tough Times, by David Lester & Beth
Bishop, Advantage Quest Publications, 2010.
Entrepreneurship 101, Michael E Gordon PhD, John Wiley &
Sons, 2007.

Entrepreneurship UTM Nov 2015 49

 END

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