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Corporate social responsibility In addition, DMT made PKT a well-known social entrepreneurship that delivers beneficial service to society as well as creates new entrepreneurs. His philosophy is Corporate Social Responsibility (CSR) is not about how you spend your profits: CSR is about how responsibly you make your profits," which has made PKT'S CSR stand out among the rest. For the community, there is the Anak Belajar Ibu Bekerja (ABIB) program that is focused on giving job opportunities to mothers who live in the villages surrounding PKT's facilities, a Career Day for Facebook fans to come and seek job opportunities from PKT'S customers and clients with job matching done by PKT's Human Resources team, and the Smart Trucker program to motivate new graduates to work four years as a trucker with high wages and career progression guaranteed after the four years. These programs also aim to ensure reductions in road accidents and national unemployment and ensure customer satisfaction with deliveries. In this way, PKT has improved its brand image. DMT-PKT Facebook Community entrepreneurs, PKT's programs and events, introducing customers' and mantees' products and benefits, directions on how to achieve national business and economic progress, encouraging education to increase employability, the job creation service for housewives and many more by status, and images and live videos. Characteristics differ between DMT's and PKT's Facebook pages. DMT's page is more like an entrepreneurship page. It also creates an image for PKT. DMT pages handle internal postings that are more about entrepreneurship, leadership, and corporate social responsibility (CSR). PKT's page is for the company's overall business operations. Currently, in PKT, the PKT-DMT Facebook pages are seen as the most practical way to operate business. It is used for every business procedure, such as meeting arrangements, customer linking, marketing, value propositions, selling, managing CSR program, mentoring program, new product launching, financial report, event organizing and data storage. In addition, PKT now uses Facebook as a recruitment channel. Currently, the PKT-DMT Facebook community has over 800,000 fans, who are indirectly helping to create a strong brand image for PKT. The Facebook trend of effective communication via social media and the opportunity it presents to gain competitive advantages when used commercially has been recognized by DMT. Therefore, since 2009 PKT has strategically made Facebook compulsory for its employees, customers, and mentees. The application of this strategy was very challenging and risky, as it was a completely new approach to networking in a business generating system compared to emails or phone calls. DMT has managed it very carefully by understanding his employees' state of mind. He knew that his employees like using Facebook and he believed that using it could create a fun environment for his company, essential for getting his employees' best efforts. The 12 Waves PKT DMT also wanted to keep them up to date on what was going on with him. He also wished to always be available to communicate with PKT'S customers, his mentees', and society to inform them of every situation of PKT and to gather knowledge from them. So, he thought creating a Facebook community could become very strategic for the company's business operation system. He chose Facebook because methods of communication are changing and Facebook is seen as the next wave of future communication between people. Functionally, Facebook is more progressive than other social media. Meanwhile, other social media like Twitter is limited to a certain number of characters, Instagram is only for sharing pictures, and Whatsapp requires invitations for users to join specific groups. So, Facebook is the biggest platform for media without producing any content "HONESTY PKT Source: Images from PKT-DMT Facebook page Value Co-Creation through DMT-PKT Facebook Community Value Co-Creation between DMT and Customers Additionally, DMT wanted to have an enjoyable, cool, and fun working environment in the company Thus, he decided to create the PKT Logistics Group Sdn. Bhd. and Dato' Michael Tio' Facebook pages, which are considered the "PKT-DMT Facebook community." He structured it correctly and set some rules that transformed all partners' mentality. As of May 1, 2017, there are more than 800,000 followers in this Facebook community (Dato' Michael Tio's Facebook page has 732,372 followers and PKT Logistics Group Sdn. Bhd.'s page has 70,000 followers). In addition, there are some other PKT- related Facebook pages for departments and decision-making management that are special and secret. All human resource information is usually shared internally in those groups. However, the main characteristic of this PKT-DMT Facebook community is sharing updated information and activities regarding PKT Logistics, such as its upcoming services and benefits for customers employees society. PKT-DMT's Facebook community also shares DMT's way of thinking to generate business for the new era, DMT's philosophy towards attaining business success and his successful experiences, PKT's and DMT's achievements, concepts and policies for young or potential Copyright IMBRE Institute for Management and Business Research Me) Universiti Utara Malaysia Page 14 The value co-creation between DMT and customers could have occurred in multiple ways, such as effective communication value proposition and determination: needs and demands recognition: and transfer of new knowledge among each other. As mentioned before, the customers of PKT were very active in the platform of DMT-PKT Facebook community. They were interacting with PKT via Facebook posting and sharing. Also, they were reviewing, commenting, and liking the PKT activities. DMT had always in his mind of helping his customers. DMT believed that the customers should get to Copyright IMBRE Insitute for Management and Business Research (MBR) Universiti Utara Malaysia Page 1 Page 4 of 7 Epilogue know the PKT first. So, once customers got to know about PKT through Facebook, they will start to communicate through it. They will create their own) Facebook accounts to interact with PKT. Additionally, about the knowledge transferring from PKT to customers or bringing from customers to PKT, Facebook is the platform that PKT could share and transfer the knowledge to the customers and at the same time gathers the successful experience from them. This is because all the postings. videos, comments, and reviews on the Facebook are recorded and can be traced." Thereby, PKT or its partners can apply those postings, videos, and comments as knowledge to co-produce value. An example can be given to issues in retaining employees in the company. The service-based value co-creation model created based on visionary leadership, PKT employees and PKT customers. They are connecting each other for attaining 'Ba' with the aim of new knowledge creation using the Facebook platform. The significance of this new model is the top managers (decision makers) are directly interconnected with both the customers and employees who are the value-determinant, value-designer and value-deliverer via the Facebook platform. There by, the decision makers can remain updated including live about the current and latest situation of the company's business and issues. In addition, it includes the existing capability and shortage le.g. knowledge, skill, resource gap) which helps the management to decide on how to minimize the diagnosed gap for gaining the competitive advantages and future direction of the company as well. Value co-creation between DMT and employees As a visionary leader, DMT has proven that he has got many ideas and is highly capable in turning the idea into reality. The value co-creation between DMT and his employees happens also from the virtual group meeting, and direct communication as well. These are based on experience, knowledge sharing, and customer data gathering and analyzing. Here we are giving a few examples related to these. Three of the employees responded: As a result, the outcomes become more beneficial for the company in terms of employee's motivation, customer engagement, risk minimization, successful experience gathering, understanding the actual issues, high possibility to deliver customers' desired services, improving brand images, and finally increase market share with revenue. Although many firms are attempting to use Facebook as a platform for customer connection but in many cases companies are unable to successfully bring and hold the three parties (decision makers, employees and customers) together and making the service Ba' as it has been successfully created in PKT. Today, PKT logistics made success with Value Co-creation by Facebook Community, but how about future? Is it sustainable ? "We do a lot of virtual meetings. Simply because we all have different schedules, unless specifically talking about time. It is difficult to be face-to-face. Sometime, we arrange the same time with DMT and other senior managers". References "Virtual meeting is very useful for Key Performance Index reporting. DMT and also could monitor all HOD (Head of Department) have submitted their KPIs Key Performance Index). Whatever happen in Penang, when the HOD submit the KPIs, we can query him what happens this month, and why this number has such a drastic drop. So there are lots of interesting interaction". "We can get the quick information from DMT. When there is any problem or if he found out nething, he will immediately post it in the Facebook and our team will solve it.". Value co-creation between employees and customers With the aim of win-win business relationships for both parties, PKT employees and customers are working together with the aid of the DMT-PKT Facebook Community. In this, another example is the establishment of "one stop center" at PKT for customer service and support. Customers are reporting and appraising their desireness through face to face meeting or the Facebook. From these, PKT is designing and delivering the required solution to their customers. As a result, for example, the customers do not need to visit the governmental office or other agent by themselves. Also, from this service of PKT to their customers they do not need to depend on a consultant, which can lessen their extra work and save some cost as well. Business Times (2016). "Company Overview of PKT Logistics Group Sdn. Bhd." http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=50275851 Accessed 25 October 2016 http://www.pktgroup.com/about/introduction.php, retrieved on 16 July 2018 http://www.pktgroup.com/index.html, retrieved on 20 July 2018 https://www.facebook.com/PKTLogistics Group/&rf=1384760451840019 https://www.facebook.com/datomiketio https://www.facebook.com/datomichaeltio/ Prahalad, C., and Ramaswamy, V. (2004). "Co-creating unique value with customers", Strategy & Leadership. Vol. 32, No. 3, pp. 4-9. Another successful example in this is: PKT is arranging programs for its customers, and DMT'S Facebook followers to help in improving their skills related with the business results. The program of "G String Management for C Level Competence" is one of them. This was conducted in 2016. The program's flyers, agenda, activities, schedule, etc. were shared with others (including participants) using the DMT-PKT Facebook Community. A total of 70 participants successfully completed this program Copyright OMBRE Insitute for Management and Business Research (MBR) Universiti Utara Malaysia Page 1 Copyright OMBRE Insitute for Management and Business Research (MBR) Universiti Utara Malaysia Page 7 IN Prologue Value co-creation is an emerging subject in the practical field. Companies are very familiar to practice value creation of goods innovation rather than value co-creation by adding service concept. Meaning, value is created not only by what firms do, but also by getting the consumer to engage with firm for new knowledge as well as experience in terms of adding service-based value, which is co-creation (Prahalad and Ramaswamy, 2004). Some companies are practicing well in co-creating value with customers with the view of service. For example, Nike Inc., collaborating with Apple Inc., the Nike has innovated a new product as a service called Nike+ shoes i.e., Nike+iPod Sport Kit). The Nike+ shoes co-creation platform exploits the link between running and listening of music. Users can select their exercise from a personal training list including foot movements, rhythms, times, distances covered, and calories burned. Cisco company is providing an on-line service for giving its customers open access to Cisco's resources, information and systems, thereby Cisco and its customers can get involved with each other and make user community (Prahalad and Ramaswamy, 2004). This community works as a platform of dialogue between company-consumer for new knowledge creation in terms of problem solving and designing services as a solution. Hence, the value creation is adding value to their product and offer 'value packages' (Wise and Baumgartner, 2000) to customer by practicing service activities within the business. That sounds great. Now, how PKT Logistics applied this Value Co- creation with Customers by Facebook Community Mitsui O.S.K. Lines, Ltd., and Mitsui Bussan trading house, which are all restructured and owned by MOL Logistics). PKT also joined a venture with a Korean company called Asia Pacific Express that led PKT into the Korean market. PKT has also started another joint venture with Massa Logistics and Okamoto Logistics Co., Ltd. to become an automotive specialist. Furthermore, PKT has expanded its business into non-automotive sectors as well. It has focused on fast-moving consumer goods (FMCG), Food & Beverage (F&B), and renewable energy segments with the plan of earning 40% of company's total revenues. PKT is operated by about 400 energetic employees who are eager to manage almost 200 hundred high-profile customers such as Kia Motors, Hyundai Motor Company, Mitsui O.S.K. Lines, Ltd. (MOL), Mazda Logistics Co., Ltd. (Malox). Restructuring Business Model of PKT After returning DMT to Malaysia in 1996 from the United Kingdom, he took over the operating responsibilities from his father. His goals were a greater annual turnover, a greater market share, and to see his company as a logistic leader in Malaysia as well as attain a reputable position in the global logistics market. In addition, the broader goal was to make Malaysia the logistics hub of the region rather than Singapore. But, howe He found the answer by realizing that making his company different from its competitors with a service-oriented view rather than the standard view of business is possible with the philosophy of "Dream of it, Talk about it, Plan for it, Work on it, and Get it." Initial State of Pkt Logistics Therefore, he restructured his business model as a continuous knowledge creation process by redesigning the company internally and externally to offer service-based value. They focused on internal issues such as the company's availability of favourable infrastructure for logistics support such as advanced structured buildings (STARBIZ 6 Feb. 2017), vehicles, workplace design, service-minded human resources that were highly motivated and skilled (e.g. smart truckers), ICT, and relationship platforms. Again, the external issues focused on customer accessibility systems to the company for co-producing value, the company's social responsibilities (CSR), building trust, etc. In 1974, Dato Tio Sook Keo founded a trading company called Port Klang Trading in Shah Alam, Malaysia. The company was renamed and is operating today as PKT Logistics Group Sdn Bhd. Their motto is "We serve... with passion." PKT is currently considered a leading logistics company not only in Malaysia but also in the Asia Pacific region. To reach this position, PKT had to differentiate itself by changing its business philosophy from the standard to the service concept perspective. In doing this, they are strongly committed to providing a total logistics service-based solution to customers through mutual cooperation among stakeholders. The services include end-to-end design, implementation, and operation of logistics solutions in freight forwarding customs brokering, contract logistics, haulage, and distribution management for large and medium-sized national and multinational companies (Business Times, Oct 25, 2016). The leadership of Dato' Michael Tio (DMT). Group Chief Executive & MD of the company, was behind this change and the eventual success of PKT. PKT adapted the restructured business model and practiced it by managing the PKT-DMT Facebook community as 'Ba' ('Ba' is the platform of sharing participants' idea/date/information/experience for new knowledge creation). To strategically operate PKT's business, DMT gave priority to employees and customers. He preferred to put employees first and customer second, because customers tend to remember employees' service as what made them happy and loyal rather than the product itself. DMT believes that connecting the customers to every system of his business is crucial. Therefore, he aimed to make a beneficial relationship platform for himself, customers, employees, partners, and society. With this in mind, he relied on ICT and, more specifically, on Facebook as a communication method. He created a PKT-DMT Facebook community where his entire staff communicates. He chooses Facebook because the ways of communication are changing and if anybody tried to evaluate the future communication channel, then it becomes across Facebook and it is the next wave of communication between people. In functional aspects, the Facebook is more progressive than others social media. Whereas others social media like Twitter-has limited to a certain number of characters, Instagram-is just only for pictures sharing, WhatsApp need to invite them to a specific group. They even conduct and record meetings via Facebook Business Partnership and Expansion However, it was initially a partnership company whose customers thought PKT was a very smal company because only small companies do a partnership. The turnover was only 2 million Malaysian ringgit (MYR) per annum. Now, PKT is a limited company Sdn. Bhd.) and ranked fifth in Malaysia in the logistics service industry with the turnover 300 times what it was before. PKT has created its own brand image, and it has the top ten licenses for costumed brokerage including other services. PKT has expanded its business with international collaborators. PKT has already formed a venture business with Japanese company Utoc Express (whose name changed from Utoc Corporation). Utoc Logistics is a subsidiary of Mitsui groups (e.g., Mitsui Sumitomo, Copyright OMBRE Insitute for Management and Business Research Me) Universiti Utara Malaysia Page 2 Copyright OMBRE Insitute for Management and Business Research (MBRE) Universiti Utara Malaysia Page 1 CASE STUDY: GFML 3053 A202 Questions: a) Synopsis of the case study b) What are the issues identified and faced by Port Klang Trading (PKT)? c) What are the recommendations in managing PKT at present scenario? d) Why the relationship between DMT and PKT is important in future