QUESTION 1 - Case 1: Naim 's Dilemma

Naim was a real craftsman when it came to being a machinist. Naim had learned almost all that he knew from Mr. Robert, his first and only employer. Naim was married and had three young children. He was 30 years old and had worked for Mr. Robert ever since he finished his college. In 8 years, Naim had polished his skills under the watchful and critical eye of Mr. Robert. Mr. Robert was quick to recognise Naim talent for the trade and he has a positive attitude about learning and displayed a drive for perfection that Mr. Robert admired.

Mr. Robert Machine Shop was a successful small business. Its success was based mostly on the reputation for quality that had been established over its 42 years of operation. Mr. Robert had come to Malaysia with his wife, Jenny. Now the business was a success, but Mr. Robert remembered the early years when he and Jenny had to struggle. Mr. Robert wanted the business to continue to produce the highest-quality craftsman products possible. On a Friday evening, he called Naim into his office at closing time, poured him a cup of half-day-old coffee, and began to talk with him about the future.

"Naim, I am getting old, and I want to retire. It has been 40 years of fun, but these old hands need a rest. In short, Jenny and I would like you to buy the business. We both feel that your heart is in this craft and that you will always retain the quality that we have stood for." Naim was taken back by the offer. He, of course, knew Mr. Rober was getting older but had no idea he would retire. Naim and his wife, Umi, had only RM4,000 in the bank. Most of Naim's salary went towards the normal costs of raising three children. Mr. Robert knew Naim did not have the money to buy the business in cash, but he was willing to take a portion of the profits for the next 15 years and a modest initial investment from Naim

Naim had, for the past four years, made most of the technical decisions in the shop. Naim knew the customers and was well respected by the employees. He had never been involved in the business side of the operation. He was a high school graduate but had never taken business courses. Awang was told by Mr. Robert that even after deducting the percentage of the profits he would owe under the sales agreement; he would be able to almost double his annual earnings. Naim would have to take on all the business functions himself because Umi had no business training either.

1. Which entrepreneurial characteristics does Naim have that may be important to his success? (5 Marks)
2. Which characteristics could lead to Naims failure in future? (5 Marks)
3. What actions did Mr. Robert take to ensure the success of his small business today? (5 Marks)

(TOTAL: 15 MARKS)

QUESTION 2- Case 2: Protecting Intellectual Property

Lisa, Raveena and Siti were childhood friends who had always talked about starting a business together after college graduation. Lisa had the financial background and startup capital to contribute and Raveena and Siti had the technical knowledge they believed would give them the competitive advantage needed to become an industry leader.

During their early college years, Lisa and Raveena developed a new and innovative way to manufacture computer components. When they shared their idea with Siti, she was able to draw up a detailed business plan to present to potential investors when the three were ready to launch their venture. They had been very careful not to disclose anything about their innovative idea to other colleagues or any of their friends and were anxious to get started.

After selecting the company name "Millennium Computers" the three friends come to you for advice on intellectual property rights.

1.To protect their innovative process for manufacturing computer components from unauthorized use, which type of intellectual property should the three some apply for?(5 Marks)

2.Should they consider protecting or registering their company name? Which intellectual property would cover this concern? Could they use the name without registering it?(5 Marks)

3.Since the primary weapon to protect intellectual property is the legal system, what would you advise the friends if they have to protect intellectual property sometime in the future by threatening a lawsuit? (5 Marks)

(TOTAL: 15 MARKS)