The Practice of Corporate Communication in Malaysia: A Case Study on Cosmopoint Pvt. Ltd. PDF

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The Practice of Corporate Communication in Malaysia: A Case Study on Cosmopoint Pvt. Ltd. by Mohd Norhazli Bin Mohamed Azlanudin Faculty of Modern Language and Communication Master of Corporate Communication University Putra Malaysia 2008 Introduction Effective communication lies at the heart of eve...

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The Practice of Corporate Communication in Malaysia: A Case Study on Cosmopoint Pvt. Ltd. by Mohd Norhazli Bin Mohamed Azlanudin Faculty of Modern Language and Communication Master of Corporate Communication University Putra Malaysia 2008

Introduction Effective communication lies at the heart of every successful business. All good communication involves an efficient exchange of information, both internally and externally. In addition, knowing what and how to convey a message is equally important. Proliferating methods of communication; email, fax, mobile, Internet, telephone, verbal and non-verbal exchanges, widen the range of choices, and also increase the chances of choosing an inappropriate channel for getting the message across.

According to Naomi Langford-Wood, in her book, “Critical Corporate Communications: A Best Practice Blueprint “( 2006 ) ; real-life examples illustrate best and worst practice in communication. A communications audit is also provided, looking in detail at which forms of communication currently work, where information is drawn from and its credibility and the use of different channels. The audit will most importantly provide a benchmark for companies to calibrate their present and future success. A sample audit

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response is also included. Mid- to senior level executives, owner-managers, consultants, trainers and advisers will find this an indispensable guide.

Globalization had opened up new business opportunity to companies and corporate organization worldwide. Along with opportunity created, this also means that companies are facing a much higher level of challenges and critical situation both from local counterparts and overseas.

The Company The Cosmopoint Group of Companies was established in the early 1990s when Dato’ Idrus Mohd. Satha created a string of learning hubs across the Klang Valley. This progressive move was set against an industrial landscape that was at a transitional stage.

The field of Information Technology (IT) was beginning to experience unprecedented growth and required investment not only in financial terms but also through talented, qualified and intelligent human resources. Helping find, train and support the individuals who could help fill this employment deficit, Cosmopoint Sdn Bhd (Cosmopoint) was established in October 1991 to cater to the growing needs from the IT industry for high quality education and training.

Incorporated in these five businesses, the Group currently has a network of centers worldwide comprising 4 Computer Learning Centers (CWL), 11 Corporate Training Centers (NH), 13 Career- Orientated Colleges (CICT) and a University College (KLMU).

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These 5 subsidiaries harness a diverse area including education, training, international licensing, software development, graphic design, animation production and job training programs, all of which still hold true to the overall mission of Cosmopoint.

To counter both the disparate elements of the Group’s operations and the inherent challenges in the business world – now greater than ever - Cosmopoint has inculcated a synergy in our business practices and in doing so the Group has successfully carved a position in the education, training and ICT development industry. Cosmopoint’s subsidiaries are converged and integrated as expounded through the corporate mission statement of the company. ( Cosmopoint Corporate Site, 2009 )

Corporate Communication Department Under Cosmopoint, there is a Department of Corporate Communication that responsible on ensuring that it achieves its annual targets in terms of media coverage, event management and corporate social responsibility. They also responsible on creating and implement corporate communications, public affairs and relations strategies to enhance company’s image and position within the corporate environment and general public.

Department of Corporate Communication responsible for managing media relations, event marketing and corporate social responsibility programs of the group. They build and maintain professional working relationship with relevant government authorities and legislative bodies, position, develop, coordinate and oversee all organization communication and public relations programs and functions. They also need to plan for

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the annual corporate communication budget and monitors the allocation of the annual budget for the various Divisions of the Company. ( Cosmopoint Corporate Book, 2007 )

The Case Focusing on their new develop university college, Kuala Lumpur Metropolitan University College ( KLMUC ) today has been a wonderful local university that giving local new generation a new chance to building their own future with low cost fees and high facility equipments. Since the world facing global economic crisis since 2008 until now, effected when a loss of confidence by investors in the value of securitized mortgages in the United States resulted in a liquidity crisis that prompted a substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank ( Larry Eliot, 2008 ).

Effected from the global crisis, Cosmopoint facing serious difficulties in managing financial of their students. Most of the local student depend on government study loan such as Perbadanan Tabung Pendidikan Tinggi Nasional ( PTPTN ) and Majlis Amanah Rakyat ( MARA ) to paying the study fees. New Strait Times ( 3rd January, 2009 ) reported that on early of this year, there is a situation when MARA run out of funds leaving hundreds stranded without their Bumiputera student loans. New application of study loans are frozen due to the crisis. Other institute badly affected in this industry are SAL College and Malaysian Institute of Integrative Media ( formerly known as Academy TV3 ) that depend 100% on MARA income.

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This situation also affected Cosmopoint institute due to their huge investment in publicity of their institute. Cosmopoint has spent over RM 300,000 for advertised their new university, KLMU. Cosmopoint has guaranteed their student will get full loan on their study but due to MARA financial situation, some of the students need to pay some of the fees first. This demand is not compromise with most of the student. This are not from what Cosmopoint promises before which is students will full supported by outside financial provider. The student felt they are cheated by the university because several of them are not from well – financial family. Some of the students reported it to their parent and they attack Cosmopoint CEO, Dato’ Idrus for explanations. Some of the students need to quit because of university demand; paying near RM 5000 for entering the university.

The global crisis also put their employees into caution. Several of Cosmopoint staffs quit from the company and entering government section. The lectures also searching for other government education institute such as local university or community college for securing their job.

According one of the senior employees from academic department, this move-out is happen because of the unstable internal management and work division. They need to do more work including small marketing task such as try to slow talk with the student that want to quit and try to hold them. For some cases, some employees not get their confirmation letter ever though working there almost three years.

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Analyze from the perspective of corporate communication practice perspective, such wrong decision can turn things into worse scenario. For not losing their students, academic lecturers has been victim; ordered to do marketing work and it will appears the unsatisfied on them ( lecturers ) because it not they job.

In his book, Corporate Crisis Management : Challenges for Survival ( 2000 ), Ramu explains how a company should react in crisis situation. Depending on the nature of crisis, a very serious crisis requires a quick and timely decision based on facts. In such a situation, the company cannot afford to make a slow, fantasy driven judgment and suffer failure outcome.

Apparently the world wide crisis making everything felt the heat. In this situation, decision making are crucial to the company. Cosmopoint not supposed to make incorrect decision on employee’s sensitivity. The company’s hard decision will change the perspective of employees to the company.

After wrongly made decision making, Cosmopoint come out with several solution to crack the situation. They discuss with superior chairman and Corporate Communication Department and come out with two ways to make students stay and make the lecturers not burden what not their tasks. According to Hossein Arsham in his book, “Leadership Decision Making” ( 2006 ); making a good decision need see the abilities within a focused and structured decision process to actively and pro-actively make decisions. Active decision-making involves a responsible choice that you must make, while proactive decision making is the practice of making decisions in advance just like "in the case of fire".

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First of all, Cosmopoint managed the students with several alternative such as assist them to apply other study loans provider like Yayasan Negeri or local bank. Cosmopoint also created a new medium of study loans which is using Cosmopoint as loan provider meaning the students need to apply Cosmopoint loan for study. This kind of alternative will give back student hope on furthering their study and helping the unwell – financial student to building their own future.

With the new decision making, Cosmopoint successfully communicated with their customers and attract back new comers attention with new approaches of financial study aids. Cosmopoint also offer every student a free laptop for them to use and this kind of offer helped Cosmopoint on their growth of student intake.

Secondly, Cosmopoint successfully hold them back ; employees are given more corporate training and other financial facility such as create corporate account with local bank such as Bank Rakyat and EON Bank for employees to applying loans or other financial ability. This kind of facilities is an opportunity to the employees because the corporate training will enhance their productivity in the future in line with their career development path. The financial aids such as bank loans could change their need in lifestyle or solve their financial problem. According to Belasen in his book, “ The Theory and Practice of corporate Communication : A Competing Values Perspective “ ( 2007 ) stated that each functional department develops customized methods of communications and uses specialized language with unique syntax, form, style, and substance orientation to address to its audience. Therefore, Cosmopoint has successfully maintained and enhance their

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employee relation for creating great methods to fix the critical demanding situation. Fast decision making also safe the institute from losing their customers and increasing their reputation upward.

Conclusion It should be clear at this moment that Cosmopoint’s practice of corporate communication in handling the said critical situation is largely based on two factors; hard decision making and maintaining the employee relationship. Certainly, the students become the mounting concern because there are ones to be badly affected with the critical situation – they will lose their opportunity to continue their study.

The transparent and honest approached of Cosmopoint corporate communication is also noteworthy. In the future it still can count on the good reputation and image it potrays in solving this particular case.

References Elliott, Larry (August 5, 2008), "Credit Crisis - How It All Began", The Guardian, http://www.guardian.co.uk/business/2008/aug/05/northernrock.banking, 2009-05-08

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retrieved

on

Ramu, S. S. 2000. Corporate Crisis Management : Challenges for Survival. Calafornia: Sage Publication.

New Strait Times, 3rd January 2009.

Arsham, P. H. (2005). Leadership Decision Making. New Delhi: G.C Jain.

Belasen, A. T. (2007). The Theory and Practice of Corporate Communication: A Competing Values Perspective. Georgia: One Tree Press.

Corporate Info. (2007). Retrieved June 4, 2009, from Cosmopoint Group Website: http://www.cosmopoint.edu.my

Langford-Wood, N. (2006). Critical Corporate Communications : A Best Practice Blueprint. Oregon: Prenthill Old.

Sahar, S. (2007). Cosmopoint Corporate Book. Kuala Lumpur.

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