QUEST INTERNATIONAL UNIVERSITY PERAK (QIUP)

FACULTY OF BUSINESS, MANAGEMENT AND SOCIAL SCIENCES

MID SEMESTER EXAM
SEPTEMBER 2012

ASSIGNMENT COVER SHEET

Course Details
Subject Code : BBA1103

Subject Title : MICROECONOMICS

Course of Study : BACHELOR OF BUSINESS ADMINISTRATION (Hons)

Year & Semester : SEPTEMBER 2012, SEMESTER 1

Lecturers Name : MR.ANANTHA RAJ

Assignment Details

Group & Question : GROUP 1& QUESTION 2

Due Date : 1ST November 2012

Students Details

Name and Matric Number : 1NEOH KIT YAN BBA00309

2 FOO MAY YI BBA00357

3 HO ZHI JEAN BBA00349

4 SUHAIDA NUR BINTI GULAM RASHED KHAN

BBA00335
5 TAN PEI LING BBA00395

6CHOONG VOON YAW BBA00358

Assignment Overall Marks : _______________ Marks.

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 MARKING SCHEME FOR GROUP ASSIGNMENT (15%)

Subject Code and Subject Title:

BBA1103 & MICROECONOMICS

Marks Marks
No. Guideline Criteria
allocation given
Introduction
1 20

Content
2 25

Analysis & Recommendation

3 25

Conclusion
4 10

Quality of the written assignment

5 20

Total Marks 100

Comments:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Markers name : MR. ANANTHA RAJ
Date :

Signature of Marker :

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 SCORE SHEET FOR GROUP PRESENTATION (5%)

Group :
Date :

Five aspects of grading criterias are listed below. Under each of these headings are
description and allocation of marks. (Total: 50 marks)

Marks Marks
Assessment Criteria
Allocation awarded
Content
Sufficient information delivered.
1 25
Appropriateness and facts to support

Clarity of presentation
Evidence of well prepared presentation.
2 Well-organized and logically developed materials. 10
Introduction and closing provided.

Voice/speech/body language
Interesting modulation of voice.
Articulate and coherent.
3 10
Appropriate speed.
Frequent eye-contact.

Visual aids
Attractive and well-produced.
4 5
Easy to read.

Total Marks 50

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Table Content

1.1 Executive Summary ............................................................................................ .6

1.2 Introduction ...7 - 10

1.2.1 Genting Group ..7

1.2.2 Genting Malaysia Berhad..8

1.3 Content : 11-24

1.3.1 Land ...11-12

1.3.1.1 What is land? . 11

1.3.1.2 How Genting Highlands Resort utilizes the resources of land?..11

1.3.1.3 Ways to improve the resources of land for Genting Highlands

Resort......12

1.3.2 Labor ..13-20

1.3.2.1 What is labor? ...13

1.3.2.2 How Genting Highlands Resort utilizes the resources of labor?14

1.3.2.3 Ways to improve the resources of labor for Genting Highlands

Resort. ....19

1.3.3 Capital 21-22

1.3.3.1 What is Capital? .21

1.3.3.2 How Genting Highlands Resort utilizes the resources of capital?

.21

1.3.3.3Ways to improve the resources of capital for Genting Highlands

Resort. 22

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 1.3.4 Entrepreneurship ..23-29

1.3.4.1 What is entrepreneurship? 23

1.3.4.2 How Genting Highlands Resort utilizes the resources of

entrepreneurship? . 23

1.3.4.3Ways to improve the resources of entrepreneurship for Genting

Highlands Resort. ...27

1.4 Conclusion ........................................................................................................... ..30

1.5 References ..31

1.6 Bibliography ...32

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1.1 Executive Summary

Microeconomics studies individual economic units in detail such as household, a

firm and a government. Microeconomics is like looking through a microscope, which
focuses into small units and provides an outline for choices and decision making of
individual, business and public.(resources from Principles of economics) We have choose
second question as our assignments title. Through this assignment, a general idea about
microeconomics will be introduced as well as the appropriateness of microeconomics
theory in each business activities. We will take Genting Highlands which is the
subsidiary of Genting Group as our experimental object in order to discuss whether the
Genting Group has adequately utilized those factors of production.

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1.2 Introduction

1.2.1 Genting Group

The Genting Group is Malaysias leading universal association and one of Asias best-
administered companies. It was founded in 1965 by Malaysia entrepreneur the late Tan
Sri (Dr.) Lim Goh Tong with the development of a impressed highlands resort, named
Genting Highlands Resort. It was located at the peak of Mount Ulu Kali, 2000 metres
above sea level and 58 kilometres from Kuala Lumpur in Malaysia.

The Genting Group is leading by Tan Sri Lim Kok Thay, the Chairman and Chief
Executive, who joined the group in 1976. The group has at least 26 years of participation
in developing, administrating and marketing casinos and merged resorts in different parts
of the world, comprising the Americas, Australia, Malaysia, the Philippines, Singapore
and United Kingdom. It has been chosen as the Malaysia's leading corporation and one of
Asia's best managed multinationals corporation. The group's pioneer unified resort is
Resorts World Genting, formerly known as Genting Highlands Resort. The main
fascinations of the resort are its casino, theme park, concert shows, food & beverage and
retail shopping. It is one of the most popular tourist destinations in Malaysia.

The Genting Group developed as a Malaysian enterprise group and the parent company
which manipulate company that operates investment in other companies. Its headquarters
located in Malaysia.(resource from: http://www.genting.com/groupprofile/gent.htm)

There are currently six public companies that operate under the Genting Group.

Genting Singapore PLC It is an investment holding company which are partially

owned by Genting Berhad about 53% shares.
Genting Malaysia Berhad It is involved leisure and hospitality gaming and
entertainment which includes its casino businesses in the Americas and United
Kingdom, Genting UK and Genting New York. Genting Berhad owned 48.7% of
shares in this company.
Genting Hong Kong Limited which formerly known as Star Cruises Limited, is a
leading global leisure, entertainment and hospitality enterprise, with core

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 competences in both land and sea-based businesses. Its 18.4% of shares is owned
by Genting Berhad.
Genting Plantations Berhad is involved in plantations, biotechnology and
property, which includes its property arm, Genting Property. Its 54.7% of shares
was owned by Genting Berhad.
Genting Oil & Gas is the company which concentrates the exploration and
production of oil and gas in Indonesia and Morocco.
KienHuat Realty It is the real estate development and investment entity created
by Genting Founder Lim Goh Tong owns 36% of Genting Berhad and serves as
the U.S investment arm for casino development project and interests.

Under the guidance of Tan Sri Lim Kok Thay, the Genting Group continues to grow from
strength to strength. His engagement to superiority, innovation capability and
development has resulted in the commencement of leading worldwide brand reputations.
(resource from: http://en.wikipedia.org/wiki/Genting_Group)

1.2.2 Genting Malaysia Berhad

The Genting Malaysia has been especially involved in the recreation and hospitality
business overlaying gaming, hotels, seaside resorts, entertainment and theme parks for at
least 45 years. The Genting World Card which is the fealty card broadcast has currently
obtained at least 3.3 million members from its functions. The jewel in its crown is The
Resorts World Genting, which is the leading unified family recreation and entertainment
resort at the zenith of Genting Highlands that had been attracted over 19 million visitors
annually in the last six years.

The Genting Highlands opened for business in the middle of 1971, Prime Minister of
Malaysia Tunku Abdul Rahman having honoured it the first and only casino license in
the country. The Genting Highland continued to grow from a guileless resort with a
simple casino to a modern holiday attraction, along with theme parks, and other trendy
facilities. Today, Genting Highlands has become one of the most popular highland tourist
destinations in Malaysia, which attracting visitors from Kuala Lumpur, Singapore and all
over the world. (resource from: http://www.gentingmalaysia.com/profile.htm)

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Resorts World Genting provides five hotels with more than 8,000 rooms, over 50 fun
rides, and over 200 dining and retail outlets, mega shows and endless entertainment.

There are five hotels at Resorts World Genting. One of the five hotels, which is the First
World Hotel, possesses the Guinness World of Records as the largest hotel in the world,
with a total of 6,118 rooms.

The hotels are consisting of:

Maxims Genting
Highlands Hotel
Theme Park Hotel
Resort Hotel
First World Hotel

Nevertheless, the resort also has three theme parks which are Genting Outdoor Theme
Park, First World Indoor Theme Park and Water Park. There are at least 20 significant
attractions which include:

Flying Coaster
Genting Sky Venture
Haunted House
Ripley's Believe It or Not! Museum
SnowWorld
Space Shot, etc

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Besides that, another attraction of Resort World Genting is Genting Skyway, located at
the Kuala KubuBhary, Selangor side of Genting, Malaysia, is a monocable gondola lift
which serving the Genting Highlands Resort. Its lower station is located near Gohtong
Jaya, while the upper station is located at Highlands Hotel of Genting Highlands Resort.

Genting Highlands also known as the Fun City Above the Cloud, it is the only legal
land-based casino since 1971, which named Casino de Genting and is owned by Genting
Malaysia Berhad, a subsidiary of Genting Group. It has remained the only legal gambling
corporation in Malaysia. The casinos are located central to Genting Highlands and the
theme park offers fun rides and activities for adults and children as well as the First
World Plaza is a luxuriant shopping centre with a collection of family restaurants and
trendy outlets. (resource from: http://en.wikipedia.org/wiki/Resorts_World_Genting)

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1.3 Content

1.3.1 Land

1.3.1.1 What is land?

In economics, LAND refers to the natural resources used in production. Land is also
known as the gifts of nature that we use to produce goods and services. Rent is the
payment to land.

(resource from:http://www.britannica.com/EBchecked/topic/329078/land)

1.3.1.2 How Genting Highlands Resort utilizes the resources of land?

Genting Highlands Resort continued to extend from strength from strength since the first
hotel opened in 1971. While assuring the natural prettiness of the rain forest is retained,
Genting Highlands Resort is being enhanced as the premier holiday destination in the
region by progressive development of the area until now.

Nowadays, Genting Highlands Resort has five hotels which namely Genting Hotel,
Highlands Hotel, Resort Hotel, Theme Park Hotel and First World Hotel and Awana
Genting Highlands Golf and country resort and two suite blocks which namely Ria and
Kayangan Apartments. Other than that, Genting Highlands has one casino which namely
Casino de GENTING, has 3140 gaming machines and 426 table games. It has attracted
many people either local or foreigner to come to it as people think it is the perfect place
to brings excitement.

Last but not least, Genting Skyway is also acknowledged as the Worlds fastest Mono
Cable Car System with a maximum speed of 21.6km per hour and the longest cable car
in Malaysia as well as Southeast Asia. Moreover, Genting Highlands Resort has also
become the City of Entertainment and premier resort in Malaysia by integrating of
world-standard entertainment equipment encircling variety of leisure.

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 1.3.1.3 Ways to improve the utilization of land for Genting Highlands Resort.

Ways to improve usage of land in rural management, land development policies should
be occurring. Open space and natural resources can be preserved by promoting
alternative forms of community design, such as clustered zoning. Clustered zoning refers
to the grouping of home sites in a development onto adjoining compact lots while leaving
the remaining land for open space, use of agriculture, water quality conservation or other
passive and extensive use. Besides, the weather of Genting Highlands is cold, so
equipments like hot spring massage facilities and foot spa are suggested to
set up as people would think it is special and willing to come forward and
experience it.

Other than that, the people can re-use brownfield sites as well as the area which
previously developed. By providing liability relief at low risk brownfield sites and
subsidizing environmental site assessments, remediation could be determined to conserve
advantageous brownfield expansion sites.

In order to diminish the time and cost of expansion and increase forecast, the regulatory
process should be simplified with one-stop-shopping.

Last but not least, authorization and government are advised to create income and
property tax incentives for the re-use of appropriate and desirable sites since this is a
commended action.

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1.3.2 Labor

1.3.2.1 What is labor?

Labor is known as the term of worker. Labor is a broad concept because it includes both
physical and mental labors who work on farm and construction sites and in factories,
shops, and office. Labor is a primary or human factor of production. It indicates human
resource. Labor represents the human capital available to transform raw or national
resources into consumer goods. Human capital includes all able-bodied individuals who
are capable of working in the economy and provide various services to other individuals
or businesses. This factor of production is a flexible resource because workers can be
allocated to different areas of the economy for the purpose of producing consumer goods
and services. Human capital can be improved through training or educating workers in
order to complete technical functions and business tasks when working with other
economic resources. There is no business is completely automated; humans are involved
in producing any business, goods or service. Labor is always one of the biggest expenses
and managing human capital appropriately and efficiently is one of the hallmarks of a
successful business. Human capital can impact a business in a less direct, but an
important way. Customers and clients see those employees in a business as a reflection of
that company. The way that the human resources of a company interact with the customer
base has a large impact toward the customer longevity and loyalty to your company.

(resources from: http://www.pahangmalaysia.com/genting-highlands.php&

http://smallbusiness.chron.com/economic-definition-four-factors-production-3941.html)

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 1.3.2.2 How Genting Highlands Resort utilizes the resources of land?

GentingHighlands Resort

I. NUMBER OF LABOR

The Genting Group is Malaysias leading multinational corporation and one of Asias
best, managed companies. The Group has over 52,000 employees, 4500 hectares of prime
resort land and about 166,000 hectares of plantation land. Casino de Genting the casino
with the most number of employees and most guest rooms in the world .Six hotels with
more than 6,000 rooms provides to guest

Top-10 largest casinos by number of employees

1 Casino de Genting (Malaysia) 13,000

2 Foxwoods Resort Casino (Connecticut) 10,220
3 Mohegan Sun Casino (Connecticut) 10,000
4 Bellagio (Las Vegas) 9,700
5 MGM Grand (Las Vegas) 9,000
6 Mandalay Bay (Las Vegas) 8,000
7 Sands Macao (China) 8,000
8 Caesar's Palace (Las Vegas) 7,500
9 Borgata (Atlantic City) 7,000
10 Atlantis Resort and Casino (Bahamas) 6,500

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II. SENIOR MANAGEMENT

GentingBerhad
Senior Management

PRINCIPAL EXECUTIVE OFFICERS

Tan Sri Lim Kok Thay

Chairman & Chief Executive

Tun Mohammed Hanif bin Omar

Deputy Chairman

Mr Tan Kong Han

President & Chief Operating Officer

Mr Chong Kin Leong

Executive Vice President - Finance

Dato Justin Leong Ming Loong

Head of Strategic Investments & Corporate Affairs

Mr OngTiong Soon
Chief Executive Officer - Genting Energy Division

Ms Goh Lee Sian

Senior Vice President - Legal

Encik Azmi bin Abdullah

Group Treasurer

In Malaysia ,Genting Group is one of the leading and best managed corporations. The
Group has constantly been acknowledged by various organizations for its exemplary
leadership and management. GentingBerhad was also rated No.1 in Malaysia and No.2 in
Asia for Overall Best Managed Company for the Decade by Asiamoney.

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III. DEPARTMENT

Human resources deals with everybody that work within the company. All companies
need labor in order to function and complete the task. Everyone from the manual workers,
to the owner of the company fall under the classification of human resources. Different
type of labour, differ skills and efficiency. Genting is divided into many department such
as Theme Park operations, Security Department, Warehouse/Receiving Department,
Human Resources Department, Transport Department and Group Centralized
Procurement Department.

(resources from:
http://wenku.baidu.com/view/e0e44064783e0912a2162acb.html&http://www.gentingmal
aysia.com/workplace.htm )

Personnel Services
Section

Industrial Relations Manpower &Salary

Section Administration Section

Human Resources
Department

Occupational Health HR Planning

&Safety Section &Development Section

Compensation &Benefits
Section

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 a. GENTING INTI INTERNATIONAL COLLEGE(GIIC)

Human capital is important in modern economic theory. Education is a key element in

explaining economic growth over time. A collaborative partnership agreement for Kolej
Antarabangsa Genting (KAG) between Resorts World Bhd with Inti Universal Holdings
Bhd in the provision of higher education, signed on the 2nd of June 2004 at Wisma
Genting in Kuala Lumpur. The countrys biggest leisure group (Genting Bhd) tie-up with
the leasing education provider (Inti College Malaysia) aspires to set up a regional College
that offers tertiary and vocational education for the tourism, leisure and hospitality
industry. Graduates will have opportunity working in Resorts World Bhd, the owner of
Genting Highlands Hotel, First World Hotel, Awana Hotels and Resorts and Star Cruises.
The qualification awarded will be beneficial to graduates in opportunities and career
options like hospitality, travel and tourism, wholesale and retailing, theme restaurants,
operation management, airlines and sea-cruises. Genting Inti International College is
located in the tranquil township of Gohtong Jaya situated about 1,000 meters above sea
level and enjoys a congenial climate. Genting Inti International College only 15 minutes
away from the The City of Entertainment, Genting Highlands Resort. Students can
enjoy the recreational facilities like squash, tennis, basketball, volleyball, table tennis,
swimming, or play soccer.

(resources from:
http://www.weegy.com/?ConversationId=8926659A&http://en.wikipedia.org/wiki/Factor
s_of_production&http://www.kag.edu.my/aboutus/index.htm )

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 b. REQUIREMENTS

CASINO DIVISION

Croupier
Senior Croupier (1 year and 9 months of service or equivalent experience)
Gaming Supervisor (2 years of service as Senior Croupier or equivalent experience)
Requirements

- female minimum height is 152.5cm ; male minimum height is 157.5cm.

- Normal colour vision with no sweaty or hairy palms.

- Responsible, punctual and able to work in shifts including weekends and public
holidays.

- You will be conducting customer service while performing gaming related duties .

- training will be provided.

THEME PARK ASSISTANTS

Theme Park Assistants

Senior Theme Park Assistants (6 months working experience as Theme Park Assistant)

Theme Park Operations Supervisor (3 years experience as Senior Theme Park

Assistant)

Requirements:

- Minimum SPM Holder and good interpersonal and writing skills.

- Must be customer service oriented with excellent performance and disciplinary

record.

- Senior Assistants have to carry out shift briefing, arrange duty roster , check game
floor cleanliness and ensure continued operations of all the Theme Park rides.

- Theme Park Operations Advisor must have good leadership skills to lead a service
team as well as ensure safety compliance. They will also be responsible for stock
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| P a g eand up keeping the staffs appraisal and performance record.
IV. EMPLOYEE WELFARE AND DEVELOPMENT

Resorts World Genting provides employee with a stimulating place to work in, as well as
opportunities for growth and continuous learning.T here are no traffic jams; to get to
work means a walk of just 15 to 20 minutes.After work, employee can play a game of
badminton or go bowling, or watch a movie or simply take a stroll at the First World
Plaza. There are gymnasiums, a staff stadium , library , and swimming pool, amongst
others, all put in place exclusively for employees, so as to ensure a balanced work-
life.Not only work, work, work. Genting also have year-round recreational activities,
inter-departmental tournaments and Resort-wide events like Carnival Day, festive and
anniversary celebrations. There are opportunities to take part in community service via
the GENM We CARE Team.

1.3.2.3 Ways to improve the utilization of labor for Genting Highlands Resort.

For a successful business, improving productivity can be a necessary ways to increase our
businesss gross revenues as well as profits. As a manager, finding ways to improve
productivity can be a meaning to make adjustments in labour training, modernizing
facilities or producing motivational incentives to boost employee attitude and
effectiveness.

There are several ways to improve employee effectiveness in term of education, incentive
program, modernization as well as the aspect of employee training. Our suggestion for
Genting Highlands Resort is the company should continue to foster employee welfare and
development to provide a wholesome word life for all employees.

In terms of education, they should provide some educational scholarships for hard-
working labor to continue with their studies and provide some financial assistance fees to
people who encounter financial problem. With this method, the company can retain
talented workers as well as build up a good reputation of their company.

The company can also provide some employee training to workers. It can be job specific
or generalized to an overall corporate code of standards of safety issues. With the much
more training they have, the more knowledge the workers gained, the more productive
they can be.

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Furthermore, a successful company will not ignore the importance of incentive program.
It may be anything from a sales contest to offering more empowerment to employees. It
is a common sense that people tend to respond to extra rewards, putting the extra effort to
gain the gift and prizes. As a successful manager, he should listen to employee feedback
from all levels of operations to make them feel like they are the part of the process and
implement what makes sense.

Lastly, we would recommend they should use a modernization theory to run an effective
business. It means updating machinery, computers and equipment that labor may utilize
in daily operations. The faster facility works, the faster the labor are able to get mission
done. Compare to older machinery, we found that modern machinery may reduce the
effort workers need to exert, reducing fatigue and overall pressure on the task.

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1.3.3 Capital

1.3.3.1 What is Capital?

Capital is the tools, instrument, machines, buildings, and other constructions that
businesses use to produce goods and services.

1.3.3.2 How Genting Highlands Resort utilize the resources of capital?

Genting group utilized its capital in:

Hotel and entertainment business

Casino
Power station
Plantation
Oil and natural gas
Star cruise
Property investment
paper & packaging manufacturing

1.3.3.3 Ways to improve the utilization of capital for Genting Highlands Resort.

Ways of managing and improve capital:

Satisfy the investors

Increase the value of investment
Paying dividend on time
Continue involvement in philanthropic work
Eliminate the new system where the customer need to have membership to stay in
hotel
Sustain its ability to get more capital in future

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Genting group have adequately utilized its capital in the hotel and entertainment business
which is the gaming and theme park situated at Pahang, Malaysia. Besides, founder of
genting Tan Sri Lim Goh Tong and Tan Sri Lim Kok Thay as its Chairman and Chief
Executive , has since diversified and expanded from its initial hotel and resort activities
to plantation, power generation, oil and gas exploration and production. Moreover, not to
forget the Star Cruises was incorporated in September 1993 becomes the Asia-Pacific's
leading casino cruise operator. Genting group is also involved in the property investment
building the residential and home offices. Furthermore, genting group also involve in
paper and packaging manufacturing. And now it is the largest paper mill complex in
Malaysia.

Genting group had successfully manage it capital, as it enable to generate satisfy revenue
with it, so they must keep up the good work to enable to pay it investor satisfy return.
They even successfully increase the value of the investment of it investor, so we can
improve by giving them dividend on time. Besides, they should eliminate the new system
where customers need to have membership to stay in high end hotel. Furthermore, as the
companies also have involvement in philanthropic work to the society. This can improve
by supporting more of it.

Moreover, genting group not only satisfy the investor now, but also give confidence to it
future potential investor, who willing to pay out capital for it in future business expansion.
To improve Genting group must sustain its ability to get more capital in the future.

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1.3.4 Entrepreneurship

1.3.4.1 What is entrepreneurship?

Definition of the word entrepreneurship is the capacity and willingness to develop,

organize and manage a business venture along with any of its risks in order to make a
profit. The most obvious example of entrepreneurship is the starting of new businesses.

In economics, entrepreneurship combined with land, labor, natural resources and capital
can produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking,
and is an essential part of a nation's ability to succeed in an ever changing and
increasingly competitive global marketplace.

1.3.4.2 How Genting Highlands Resort utilizes the resources of

entrepreneurship?

Despite the economic recession in 1997, Resorts World had decided to forge ahead with
the ambitious billion-ringgit mega project, the First World Hotel and Plaza. Of course
many skeptics questioned why we need to expand our development during an economic
downturn. And the answer was simple: labor costs and skilled resources were relatively
cheaper and easier to get especially during that time. And by embarking on new
construction and development activities, varies job opportunities were provided to the
poor and stimulating the construction industry during crucial economic times. The First
World Hotel now is the largest hotel in the world with 6,200 rooms. First World Plaza
marks a new era for the Genting Theme Park as it features many newer and more exciting
attractions for families to have fun at the peak.

Genting Group is by no means limited to the leisure and tourism business. The company,
in fact began to variegate as early as the late 70s. With leisure and tourism as its core and
main business, the company had ventured into the plantation, property development,
paper manufacturing, power generation, oil and gas exploration.

When Tan Sri Lim Goh Tong wanted to embark on developing wilderness into a resort, it
was a joke to many. For him, once a decision is made with sound reasoning, the rest is
hard work, determination and perseverance to see it through.

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The idea of building a hilltop resort was first conceived when Lim Goh Tong was having
a dinner in the Cameron Highlands. An idea struck him that as the standard of living rose
steadily in Malaysia, more and more people would visit mountain resorts for relaxation
and recreation, but the problem was, Cameron Highlands was too far away from the
capital city, Kuala Lumpur. Therefore, building a mountain resort nearer to Kuala
Lumpur would have great business potential.

After doing some research, Lim found Gunung Ulu Kali at a place called Genting
Sempah to be an ideal location for his plan. Many naysayers were skeptical of Lim
turning a wilderness into a tourist resort. Most thought it was really risky and reckoned
Lim who was financially comfortable to be foolish to invest heavily in money and time to
develop Genting, but Lim brushed off all these negativities and went ahead firmly with
his plan.

During the Genting project, Lim spent all he had without earning any income. He sold an
810-hectare rubber estate to raise RM2.5 million. In addition, he invested all the money
he had made from iron mining, sub-contracting and hardware businesses. The project was
a heavy drain on Lim's finances. When asked to invest in this project, Lim's friends
turned him down and counseled him to drop the entire scheme instead.

Lim managed to obtain a pioneer status for Genting Highlands and tax incentives even
though its resort development was not qualifying for it. He was convincing the
government that tax incentives in the early stage of development of Genting Highlands
were not only life-or-death for them but also profitable to the government later on.

The whole Genting project was completed in January 1971, but prior to officially
commencing business, Kuala Lumpur and its surrounding areas were hit by the worst
rainstorms in a century, the road to Genting was closed by landslides at 180 locations, the
damaged sections took four months to repair. Genting opened its door for business on 8
May 1971.

Genting was granted the only casino license after Tunku Abdul Rahman, the prime
minister of Malaysia then, visited Genting Highlands and commended Lim's effort to
exploit a resort contributing to Malaysia's tourism industry without any government help.

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Lim continued to develop and expand Genting Highlands beyond its original idea of a
hotel with basic tourist facilities in the next 30 years. It included the construction of more
hotels, indoor and outdoor theme parks, and a convention centre. A new road was built to
shorten up the journey to Genting from the northern states. RM920 million was invested
to widen a 10 km stretch of the access road to reduce congestion and another RM928
million was spent on constructing a cable car system which had provided visitors with an
alternative mode of transportation.

Lim's involvement in the construction and expansion of the Genting Highlands resort did
not stop him from extending Genting's business interests into other areas. One of the
company's first expansion moves was the creation. In year 1977, a Plantation Division
was created to supervise Genting's growing palm oil and other holdings. The Plantation
Division was placed under a new company, Asiatic Development, which was listed on
the Kuala Lumpur exchange in 1982. By 2000, Genting's plantation holdings would top
63,000 hectares.

The company restructured in 1989 due to Genting's expanding hospitality interests.

Genting itself was reestablished as a holding company. Meanwhile its hospitality and
leisure businesses which included the Genting Highlands resort were transferred to a new
company; Resorts World Bhd. Resorts World straight away launched a new and
ambitious 5-year development program that helped transforming the Genting Highlands
site into one of the worlds largest and most popular tourist destinations. The company
had spent more than MYR 2 billion for adding 3 new hotels, as well as new attractions,
including two new theme parks--one of them was built indoors in the mid-1990s.

Genting faced new competition elsewhere in the region, because there is a number of
neighboring countries began authorizing the construction of casinos. Genting decided to
take a comprehensive approach to confronting this situation. On the one hand, the
company continued redeveloping the resort site from its earlier prominence on its casino
operation in order to expand more broadly and largely into the tourist and family
entertainment market. And yet the company also began expanding its hospitality and
leisure operations away from its sole focus on the Genting Highlands resort.

One of the company's earliest diversification moves was the establishment of the Star
Cruise line in year 1993. The company began to operate casino cruises in south East Asia

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by building up a fleet of 18 ships with more than 23,000 beds. By the end of the decade,
Star Cruise was already the Asia Pacific region's largest cruise operator. The achievement
of NCL Holdings and its Miami, Florida-based Norwegian Cruise Lines in 2000 had
helped to position the company as one of the world's top three cruise line operators.

In 1994, the company had launched a new Paper & Packaging division through the
creation of Genting International Paper holdings Ltd. The Sanyen paper mill in Kuala
Langat became the country's largest brown grade paper manufacturer. Where else in year
1998, the company expanded that operation downstream by launching production of
corrugated packaging. And then the new subsidiary was then renamed the Genting
Sanyen Group.

Besides that, Genting had ventured into the oil and gas exploration market. The company
bought a 45% stake in British Gas's Muturi exploration operations in Indonesia in the
year of 1996 but it was sold to British Petroleum in year 2001. Genting continued to
develop its oil and gas interests which included the launch of the Enhanced Oil Recovery
Project in China's Gulf of Bohai in 2000.

By then, Lim Goh Tong, who had been honored with the title Tan Sri in 1979, had
already announced his decision to retire at the age of 86. At the beginning of 2004,
leadership of Genting was passed to Lim KokT hay. Although inheriting the multibillion-
dollar empire established by his father, the younger Lim promised to remain true to the
values that had enabled Lim Goh Tong to build up one of Malaysia's--and the Asian
region's--largest fortunes.

When discussing some future plans with The Star, Lim Kok Thay stated: "My father's
advice to me is to hold the group steady as he goes, rather than to rush headlong into any
wild expansion program. That's my intention too as we need to digest what we have
already done." The younger Lim nevertheless pointed a further internationalization of the
group's operations in the future. Yet the company's hospitality and leisure component
including its iconic Genting Highlands resort complex had appeared certain to remain its
largest and most symbolic division into the new century.

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 1.3.4.3 Ways to improve the utilization of entrepreneurship for Genting
Highlands Resort.

Mr. Lim Goh Tong had already done a lot of hard works to improve Genting Highland in
the hope of expanding and verifying it to worldwide and let everyone knows about
Genting Highland. Although he faced a lot of difficulties and problems when the Genting
project was first started, he was not afraid at all and hold on to what he believed in. Mr.
Lim had created a Plantation Division to supervise Genting's growing palm oil and other
holdings even though he was involved in the construction and expansion of Genting
Highland resort but it did not shop him from expanding his business due to his unique
and daring entrepreneurship. However, there are some suggestions I would like to point
out to help improving his family business which he had passed to his son, Lim KokThay
in 2004.

Mr. Lim Kok Thay should try his best to invest with other big companies in order to
expand his business internationally as he already mentioned that there is a further
internationalization of the groups operation in the future when he was doing his
interview. He should expand his business globally and make the whole world knows of
Genting Highland. By cooperating with other big companies, he will have more income
to expand and innovate Genting Highland, who knows one day Genting Highland might
become the next Las Vegas in Malaysia. Not to mention that Genting Highland could
associate with Disney Land and add some cool and new elements in both theme parks to
make them more interesting and exciting. Genting Highland will become more
memorable if they add some new elements into it.

There should be a make-over for the business management in Genting Highland. It means
that the management system should be changed to cope with the modern world. No
offence but the management system used by the late Mr. Lim Goh Tong had been ages
and the world is changing everyday. I am not saying that the beloved Mr. Lim is old-
fashioned but there are some parts of the system might be too old for the modern world.
And they should be renewing in order to improve the business management of Genting
Highland. Sometimes it is good to make some changes. Employees will feel refresh
working in a new system. Good impression will be given to those representatives from

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other companies that come to visit Genting Highland. Plus, a whole new system will
manage the operation better than the past.

Mr. Lim Kok Thay should be more alert to new surrounding. Things changed everyday
so do in the business world. He, as a newbie in the competitive world should be more
aware of everything changed in everytime because there is no fixed rule about how to run
a business and he should always be alert. Now that he is in charge of the whole company,
he should always seek advises to those senior employees who worked for his father in the
past as they are more experienced then he is in the business world. Business world is
crucial and he should find someone to guide him as he is young and lack of experience in
business. Even he had head-ups from his late father on how to run Genting Highland but
when it comes to action, it is always different between the imaginary and reality. So he
should definitely be more alert and seek helps frequently from senior employees when he
faces difficulties as this is what an entrepreneur should have.

Mr. Lim Kok Thay should have a brand new attitude whenever he is involve in the
business world. As we all know that the business world is so harsh and cruel, you would
fail if you take a wrong step. No one will show mercy to you when you falls. So he
should always be prepared to fall in any minute. Please dont get me wrong; what I meant
was that he should be prepared on what he should do when he makes the wrong decision
and he should be aware of the consequences too. Since he is lack in experience, he should
be facing a lot of obstacles when he first taking over the leadership of Genting Highland.
He should not give up easily when he faces difficulties but to stand strong and find a way
to deal with it. There will be lots of challenges waiting for him and some might be the
tricky one. So he should be more bold and brave in dealing with problems because this
will leads him to success.

In the end, I would like to emphasize that being an entrepreneur should always be alert as
we wont know what is going to happen next. Being an entrepreneur should always
comes up with a new idea to help keeping the company in track with other competitors so
they must be brave enough to take risks in testing those ideas because they wont know
which one is the best and most suitable solution for that certain matter. But once we used
a wrong income, the outcome might go worst. And we will be facing a lot of
consequences. So being an entrepreneur should be willing to take risks and adventurous
to challenge the new surrounding in order to help the company to climb to the top. Mr.

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Lim Kok Thong as the new entrepreneur for the group should be aware of this matter and
have all these qualities to help him running the company and solve all the upcoming
problems that he is going to face in the future.

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1.4 Conclusion

Genting group have utilize all the factor of production that needed to be a successful
business. As we can see they have uses the lands to provide casino, theme park game
(indoor and outdoor), live show and hotels. They have thousands of employees under
them that include local and foreign worker. They have many fully utilize their capital not
just in entertainment but also in plantation, star cruise, and oil and natural gas .Now
Genting group worth US13.6 billion at 31 May 2011 and revenue of RM15.2 billion at
December 2010.

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1.5 References

http://en.wikipedia.org/wiki/Resorts_World_Genting
http://en.wikipedia.org/wiki/Genting_Group
http://www.gentingmalaysia.com/profile.htm
http://en.wikipedia.org/wiki/Genting_Highlands
http://www.mycen.com.my/directions/genting_hotel_genting_highlands.html
http://www.genting.com/history/index.htm
http://www.pahangmalaysia.com/genting-highlands.php
http://smallbusiness.chron.com/economic-definition-four-factors-production-
3941.html
http://www.weegy.com/?ConversationId=8926659A
http://en.wikipedia.org/wiki/Factors_of_production
http://www.kag.edu.my/aboutus/index.htm
http://wenku.baidu.com/view/e0e44064783e0912a2162acb.html
http://www.gentingmalaysia.com/workplace.htm
http://worldtourismconsultancy.com/WorldTourismConference/leechoongyan.pdf
http://www.studymode.com/subjects/planning-healthy-and-safe-indoor-and-
outdoor-environments-page50.html
http://en.wikipedia.org/wiki/Lim_Goh_Tong
http://tycoons-
top10businesstycooninmalaysia.blogspot.com/2010_11_01_archive.html
http://www.bignerds.com/tag/theme-parks/65/
http://ellarmathi.blogspot.com/2010/11/top-10-richest-man-in-malaysia.html
http://www.scribd.com/doc/88429677/Assignment-Entrepreneur-GREAT-
SUCCESS
http://en.wikipedia.org/wiki/Lim_Goh_Tong
http://en.wikipedia.org/wiki/Genting_Highlands
http://www.gentingmalaysia.com/profile.htm
http://www.worldcasinodirectory.com/malaysia/genting-highlands

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1.6Bibliography

Moore McDowell, Rodney Thom, Robert Frank and Ben Bernanke (2009). Principles of
Economics. Mc Graw Hill.

Robert B.Mellor, Gary Coulton, Anne Chick, Antonia Bifulco, Noha Mellor and Alan
Fisher (2009). Entrepreneurship for Everyone. SAGE Publications Inc.

Karl E.Case, Ray C.Fair and Sharon M.Oster (2012). Principles of Microeconomics
Pearson Education Limited.

Howard H. Frederick and Donald F Kuratko (2006). Entrepreneurship. Cengage

Learning Australis Pty Limited

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