Three image about link with these 3 questions QUESTION ONE a) What is the leadership characteristics style of Mr. Shafiqurrahman Shamsuddin @ Shafiq as the KUSATEX Group Chief Executive Officer? Give an example for each characteristic to support your argument. (20m) QUESTION TWO Define the concept of the PORTERS FIVE FORCES and identify the strategies of KUSATEXs business expansion. QUESTION THREE Why do you think KUSATEX implement those strategies but still maintained its SME status? How? Explain.

Table 3 below shows the list of KUSATEX's products: Table 3: List of Apparels and Other Products Apparels Doctor's Apparel Hospital Staff Clothing Army Uniform Armed Forces Tainted Uniform Others Linen Protector Hospital Towel Army Towel Managing The Company and People Mr. Shafiq is very strict when it comes to work. He wants his staff to follow job procedures. In doing so, he guides the staff to do the right ways provided that the staff must be proactive in learning the process. For example, full paper work needs to be prepared before the company wants to go for a tender. He does not like any work being done with less preparation If there are five steps, so you need to do all the five. If you do all then I will appreciate your work. It means that you have to do all without any exception... He also guides us how to make networking with business people... How important is it to see the people face to face and communicate with them rather than just talking through the phone. We may get good advice on how to make loan, etc. Mr. Shafiq is very concerned and critical about job documentation. All works must be documented and kept in a proper place. For example if you make purchase order, make sure go very details such as fill in the date of delivery, quantity of materials, and the document must be signed. If anything happen in the future you have the evidence... Another example is in signing a cheque. We need to follow the required steps... it needs to be verified by three different staffs before he can sign the cheque... In addition, any changes from the normal amounts in the bills also need to be justified... Mr. Shafiq likes to give motivational talks to the management staff. The staffs feel motivated to do their work. Some staffs say that they cannot find this kind of practices in other companies. The staff turnover in this company is very small. He put the trust on us to do the work. He always says that you can do it. He gives ways to solve problems. He keeps mentioning that it is a matter of whether you want to do it or not... where there is a will there is a way... When we thought that there is no way to solve a problem, but to him there is always a solution to the problem. And he is very good at dealing and negotiating with people. That is his strength... Mr. Shafiq interacts with his staffs from all levels of works, not only at the management staff's level but also at the factory workers' level. The workers feel they are being appreciated by their boss and motivated to work for the company. The company also rewards excellent workers every month and make monthly birthday celebration. On these occasions, workers are given some token of appreciation for their excellence in work. The company also makes annual event at the end of the year to provide school materials to staffs with school kids. For example, they are given school uniforms, bags, shoes, fees or coupon, based on the staff's need. We are trying as much as possible to make them happy and in return they will be happy to work with us. Some may be given school uniforms, bags, fees, coupon... which is complete from head to toe... Expansion in the Making Initially, KUSATEX, through ISBEC, operated as a towel weaving factory but the government advised the management to apply for sewing license and set up a new factory as the existing license cannot cater for sewing. When asked about the reasons for the two big sections of the company, the interviewee justified as below: Why there are two companies, ISBEC and KUSATEX, both under the same manager, Mr. Shafiq? Why the two companies were not merged into one company? Well, first ISBEC was licensed under the Ministry of Finance but not for sewing. We only weaved. So, at that time, we only weaved towels and supplied towels. But when we want to enter a tender related to sewing, we cannot because we do not have the code for that purpose. So, we were advised to establish another company and apply new certificate. If there are tenders that require sewing, we use this consortium. Regardless of this upcoming expansion, the company, however, still maintains its SME status. Its long-established link with customers has enabled it to get financial assistance and support from banking institutions and private sectors. KUSATEX has facilities such as letters of credit, overdraft, and/or 'letter of trust' from local commercial banks. These facilities have really helped the management when suppliers demand for payment guarantee. When asked about the strategies after the 3-year tender expired, the interviewee explained about the financial strategy: You probably want to know about our financial standing, where we get refinancing? Up to now, the bank is willing to help us. We receive bank facilities. They give us letter of credits, overdraft, and letter of trust which is really helping us because suppliers sometimes are strict. Sometimes, they do not accept credit so we have to pay by cash. Sometime, we need cash fast but the customers have not paid us yet. There are times when we have no advance at all. The advance from the Ministry is always late. So, how do we want to strategize? What we have to deliver? In fact, the raw materials must be ordered early. So, bank provides the support and allows us to pay a bit late. Their Worries At the initial stage, KUSATEX's Apparel worked under financial constraints. Fortunately, the management managed to obtain loan from bank so as not to depend on financial support from the government. We borrowed from the bank (not from the government)... not that we do not apply from the government but their requirement is very demanding. We were a newly established company at that time. When the requirement is demanding, we have to go to some other bodies where the requirement is minimal and can give us better offer. We don't have option. But now we are very fortunate because we have SME Bank. The bank offers supports but in choosing the banks we are still comparing with other banks. At the initial stage of business establishment, financial support from the government agencies was really hard to get due to high requirement and red tape faced by other Bumiputera SMEs. This situation has limited choices but somehow the management managed to obtain financial support. Later, business expansion with good financial track record has enabled the management to win SME bank assistance