Mini Case Study - Case Chart & Questions - KRS

8/17/2019 Mini Case Study - Case Chart & Questions - KRS

1/16

CASE PREPARATION CHART

Student Name LOO LIAN VEE

Student ID 1112700203

Submissiondate

4th May 2016

ase tit!e "#S$ Su%&i&a! o' a sma!! s(a!e (!eanin) (om*any

Se(tion A 02

ASSESSMENT

To be flled by acilitator

Components

Scores Scores

1 mar ! mars " mars # mars

om*!eteness o' (ase(ha%t

ase(ha%t isin(om*!ete

Some o'the (ase(ha%t%e+ui%ements a%emetsatis'a(to%i!y,

Most o'the (ase(ha%t%e+ui%ements a%emetsatis'a(to%i!y,

A!! (ase(ha%t%e+ui%ements is metsatis'a(to%i!y,

Submission

On-timesubmission

N.A N.A N.A

TOTA$


2/16

Synopsis

This case is about a bumiputera’s small and medium size scale business which

provided cleaning services as its core activity and also other activity such as

lawn care and maintenance job. The business was founded by Ali in 199 with

the name of !ey "an# Services $!"S% and invested by &asir after operated for

1' years.

The company currently facing some issues such as in term of financial

resources and manpower. To solve the manpower issues( company have to

incur high cost to avoid problems occur and maintain operations’ efficiency.

"egarding to the financial issue( assume that there is still no solution as not

mentioned in case study. )n the profit and loss account( e*penses and cost of

sales #eep increasing( profit #eep decreasing( throughout these three years.

Since now there are some issues in the company( and furthermore regarding to

company’s going concern( Ali is in dilemma to sustain and improve !"Sbusiness operation.


3/16

Case analysis

STA%E 1

Iss&esExplain the main issues underlying the case. Place extra attention on the what,

why and when.

+ompany’s financial resources are ,uite crucial( this what ma#es the

company having difficulty in allocating personnel cost. -arger part of the

funding are from credit facilities which lead to hinger interest e*pense in the

end.

Another major issue is manpower( hard to attract and recruit local people(

hard to recruit foreign wor#er free from visa and legal issues and need toincur high cost for the necessary legal documents and procedures.

!"S cleaning crew wages comprise almost two third of the entire operating

e*penses. )t also included those part time crews hired at a higher hourly

charge. or other e*penses such as accomodation provided to crews will

charged more on company if they choosed to rent outside.

/oing concern issue arise as there are several times that Ali worries if !"S

fails to pay his three staffs if he can’t secure any good future contract. Since

going concern issue is part of all issues( Ali unable to determine priority

either to improve by solving current issues or create new business activitiesto boost business operating revenue.


4/16

'ey players

Based on the issues identifed above, determine the key players involved, their

position/roles and the main decision that they have to make.

Num

,

/ho osition.%o!es Main de(ision

1( A!i ounde% and oss o' "#S • o de(ide 5hethe% to

im*%o&e on (u%%ent

business a(ti&ities o%

thinin) on (%eatin) ne5

business a(ti&ities,

!( #ita inan(e Ee(uti&e • o dete%mine othe%

(a*ita! 'undin) methods,

"( Sa!man Assistant inan(eEe(uti&e

• Su%&ey and (om*a%ea!te%nati&e *%odu(t *%i(es

'%om othe% su**!ie%s 'o%

mo%e ba%)ainin) *o5e%,

• Se!! those so%ted %ubbish

to a**%o*%iate (om*any,

• #est%u(tu%e *e%sonne!

*!an and bene8ts

es*e(ia!!y 'o% !o(a! (%e5s,

#( Loman Administ%ati&e Ee(uti&e • o dete%mine 5hethe% to%e*ai% those %usty too!s o%

i)no%e and ee* it 'o%

'utu%e use

• Ad&e%tise 9ob &a((an(y

5ith att%a(ti&e o:e%

5hi(h *%io%ity on

%e(%uitin) !o(a! *eo*!e as

*e%manent (%e5,

• Monito% and (ont%o! the

o*e%atin) (ost o' ea(h

*%o9e(t st%i(t!y to %e;e(t

e


5/16

STA%E !

PART I) *ecisions

For each decision that need to be made by each key player, identiy the criteria

that should be considered and the decision alternatives that are available

'ey

playerAli

N

o(Main decision *ecision criteria Alternati+es

1,

To decide whether to

improve on current

business activities orthinking on creating

new business

activities.

• Issues

• inan(ia! status

•

%o8t• =oin) (on(e%n

• Im*%o&e on (u%%ent

business• %eate ne5 business

a(ti&ities

Iss&es) Company c&rrent iss&es related to fnancial and manpo,er(

-inancial stat&s) Ti./tness le+el o fnancial depend on ,/ic/

alternati+es t/at Ali .oin. to p&rs&e(

Proft) Amo&nt o proft .enerated rom b&siness

%oin. concern) Ability o company to s&r+i+e in lon. term

'ey

playerRita

N


1,

o dete%mine othe%

(a*ita! 'undin)

methods,

• a*ita! sou%(e

• Liabi!ities

• Inte%est

• %o8t

• Sea%(h 'o% a!te%nati&e

'undin) method su(h

as '%om in&esto%s,

•

ontinue sou%(in) '%om(%edit 'a(i!ities,

Capital so&rce) Increase in capital rom ot/er so&rces

$iabilities) $iabilities s&c/ as loan rom credit acilities

Interest) Interest rom liabilities s&c/ as credit acilities

Proft) Amo&nt o proft .enerated rom b&siness


6/16

'ey

playerSalman

N

o( Main decision *ecision criteria Alternati+es

1,

Su%&ey and (om*a%e

a!te%nati&e *%odu(t

*%i(es '%om othe%

su**!ie%s 'o% mo%e

ba%)ainin) *o5e%,

• %i(es

• ime

• a%)ainin) *o5e%

• Su%&ey and (om*a%e

• Sti( to the (u%%ent

su**!ie%s

2,

Se!! those so%ted

%ubbish to

a**%o*%iate

(om*any,

• #e&enue• Se!!

• >ust th%o5 it into

a**%io*%iate bins,

3,

#est%u(tu%e

*e%sonne! *!an and

bene8ts es*e(ia!!y

'o% !o(a! (%e5s,

• ime

• ost

• O*e%atin)

e*enses

• Att%a(ti&eness

• #est%u(tu%e it

• #emain 5ith (u%%ent

*!an and bene8ts

0rices 0rices of products from different supplierTime Time spend on survey and compare A&2 restructure personnel pelan and

benefits.3argaining power +ompany has more options to purchase at lower price.

"evenue 4ither increase or decrease in revenue+ost 5ver6time costs for staffs spend e*tra time on restructure the whole

thhings.5perating e*penses )ncrease or decrease in operating e*penses depends onalternative chosen.Attractiveness To attract more local people to be permanent crews


7/16

'ey

player$oman

N


1,

o dete%mine

5hethe% to %e*ai%

those %usty too!s o%

i)no%e and ee* it

'o% 'utu%e use

• ost

• Sa'ety • #e*ai%

• "ee* it,

2,

Monito% and (ont%o!

the o*e%atin) (ost o'

ea(h *%o9e(t st%i(t!y

to %e;e(t e


8/16

PART II) E+al&ations

Evaluate each available alternative based on the decision criteria.

'ey

playerAli

Maindecision

To decide ,/et/er to impro+e on c&rrent b&sinessacti+ities or t/inin. on creatin. ne, b&siness acti+ities(

N

o(Alternati+e

*ecision criteria

Issuesinan(ia!

Status%o8t

=oin)

on(e%n

1

Im*%o&e on (u%%ent

business

Ab!e to

so!&e and

minimi?esome

issues

inan(ia!

)ettin)

bette% and

ab!e to

a!!o(atemo%e on

othe%

*e%sonne!

(ost,

Mo%e *%o8t

)ene%ated

as !ess

e*enses

in(u%%ed byo&e%(ome

issues in

(om*any

=oin)

(on(e%n is

not !on)e%

an issueanymo%e

to the

(om*any,

2%eate ne5 business

a(ti&ities

u%%ent

issues not

on!y

unso!&ed

but 5i!!

in(%ease

mo%e

issues as

ne5

business

5as

(%eated,

inan(ia!

)ettin)

mo%e

(%u(ia!,

Sin(e

issues a%e

unso!&ed

and

in(%easin)@

*%o8t

maybe

d%asti(a!!y

de(%easin)

and 5i!!

a:e(t

(om*anys

)oin)

(on(e%n,

om*any

mi)ht end

u* (!osin)

1 o% mo%e

business

a(ti&ities,

Preerred alternati+e 0 predicted o&tcomes)

A!i shou!d im*%o&e on its (u%%ent business at 8%st, Main %eason is to so!&e andminimi?e those eistin) issues es*e(ia!!y %e)a%din) to man*o5e% and (%u(ia!

8nan(ia! %esou%(es, I' (om*any (an %e(%uit mo%e !o(a! *eo*!e@ (om*any ab!e to

sa&e #M10000 *e% head 'o% mo%e 'o%ei)n 5o%e%s ne(essa%y !e)a! do(uments

and *%o(edu%es, his 5i!! !ead to bette%ment in 8nan(ia! status and )ene%ated

mo%e *%o8t 'o% the (om*any, A!thou)ht maybe (om*any 5i!! in(%ease sa!a%ies@

5a)es and boneses 'o% !o(a! (%e5s@ but it 5ont be as mu(h as the amount o'

'o%ei)n 5o%e% !e)a! (osts *e% head,


9/16

'ey

playerRita

Main

decisionTo determine ot/er capital &ndin. met/ods(

N

o(Alternati+e

*ecision criteria

a*ita!

sou%(eLiabi!ities Inte%est %o8t

1

Sea%(h 'o%

a!te%nati&e 'undin)

method su(h as

'%om in&esto%s,

Su(h as

in&esto%

Liabi!ities

notin(%easin)

anymo%e

as mo%e

'unds

a&ai!ab!e

'%om othe%

sou%(es,

Inte%est

5i!!

de(%ease,

%o8t 5i!!

in(%easin)

in 'utu%e

yea%s,

2

ontinue sou%(in)

'%om (%edit 'a(i!ities,%edit

a(i!ities

Liab!ities

in(%easin)

In(%ease

d%asti(a!!y

in inte%est,

%o8t d%o*

d%asti(a!!y


Rita s/all p&rs&e ot/er capital &ndin. met/ods s&c/ as promote to "rd

party ,/o ,illin. to in+est in Alis company( I t/ere are some in+estors

,illin. to in+est2 liabilities more liely not increasin. since t/ere are

&nds a+ailable rom ot/er so&rces( Interest payable still e3ist based on

old liablilities b&t soon in &t&re years2 proft ,ill increase and liabilities

,ill decrease(


10/16

'ey

playerSalman

Main

decision

Su%&ey and (om*a%e a!te%nati&e *%odu(t *%i(es '%om othe%

su**!ie%s 'o% mo%e ba%)ainin) *o5e%,

No( Alternati+e

*ecision criteria

%i(e imea%)ainin)

*o5e%-

1Su%&ey and

(om*a%e

Ab!e to )et

(hea*

a!te%nati&e

s *%odu(t

o% su**!ie%

#e+ui%ed

mu(h time

to su%&ey

and

(om*a%e

and

u*date

into a !ist,

om*any

(an

ba%)ain 'o%

(hea*e%

*%i(e sin(e

many

o*tions

a%e

a&ai!ab!e,

-

2Sti( to the (u%%ent

su**!ie%

%i(e

dete%mine

d by

su**!ie%

No time

%e+ui%ed,

E&e%ythin)

a%%an)e by

su**!ie%

Su**!ie%

the one

5ho

(ont%o!

*%i(e,

-


Salaman shall survey and compare price from many other vendors as maybe

there are chances to get cheaper alternative products or suppliers. Although

re,uired much time to conduct survery and compare( at least company have

valuable informations to bargain with current supplier for cheaper price or

switch to another supplier or product since the switching cost is very low.

'ey

playerSalman

Main

decisionTo sell t/ose sorted r&bbis/ to appropriate company


11/16

N

o(Alternati+e

*ecision criteria

#e&enue - - -

1 Se!!In(%ease

%e&enue- - -

2 >ust th%o5 intoa**%o*%iate dustbin

No%e&enue,

- - -

Preerred alternati+e 0 predicted o&tcomes

Instead o 4&st t/ro, into bin2 Salman s/all searc/ some recycle or

scrap companies and sell it to t/em(

'ey

playerSalman

Main

decision o %est%u(tu%e *e%sonne! *!an and bene8ts es*e(ia!!y 'o% !o(a! (%e5s

N

o(Alternati+e

*ecision criteria

ost imeO*e%atin)

e*enses

Att%a(ti&en

ess

1 #est%u(tu%e it

O&e%time

*ayment to

sta: 5ho

in (ha%)e

o' this,

ime

s*end on

%est%u(tu%e

it,

Lead to

%edu(tion

in

o*e%atin)

e*enses

Att%a(t

mo%e !o(a!

*eo*!e to

be

*e%manent(%e5s

2

ontinue *%o&ide o!d

*e%sonne! *!an and

bene8ts

No

o&e%time

*ayment,

No time

%e+ui%ed

O*e%atin)

e*enses

(ontinue

in(%easin),

Lo(a!

*eo*!e not

att%a(ted

at a!!,


Salman can approac/ Ali or restr&ct&rin. personnel plan and beneftsespecially to attract more local people to be permanent cre,s( T/is can

leads to red&ction in operatin. e3penses as lesser orei.n ,orer /ired2

lesser e3penses inc&rred or le.al doc&ments and proced&res( Alt/o&./

t/e plan ,ill be more attracti+e s&c/ as increase in salary and bon&ses

b&t it ,ill not be as /i./ as t/e cost or le.al doc&ments and

proced&res( T/e di5erences bet,een t/e increment or local people and

cost or le.al doc&ments and proced&res ,ill boost &p company profts(


12/16

'ey

player$oman

Maindecision

o dete%mine 5hethe% to %e*ai% those %usty too!s o% i)no%e and ee*it 'o% 'utu%e use

N

o(Alternati+e

*ecision criteria

ost Sa'ety - -

1 #e*ai% it,

Maintenan

(e (ost

in(u%ed,

ota!!y sa'e

'o% (%e5s- -

2 "ee* it,No (ost

in(u%%ed,

In9u%ies

mayha**en to

the (%e5

5ho usin)

it,

- -


$oman s/o&ld ad+ise Ali to repair t/ose r&sty tools to a+oid ne.ati+e

conse6&ences in &t&re &se(


13/16

'ey

player$oman

Main

decision

Monito% and (ont%o! the o*e%atin) (ost o' ea(h *%o9e(t st%i(t!y to

%e;e(t e


14/16

PART III) Action 0 Implementation Plan

!peciy the action plan related to the decision made.

8/o A!i

8/a

t

o im*%o&e his (u%%ent business

Ho, • Held a meeting with all the staffs• Clarify issues with them

• Set priority on issues which need to be solve in consequence

• Discuss those issue and provide the best solution to solve or at least

minimize the issues impact on company

8/o #ita

8/a

t

o sea%(h 'o% a!te%nati&e 'undin) method,

Ho, • Sea%(hin) 'o% business *a%tne% o% 9oint &entu%e 5ith othe% (om*anies,

• En)a)e (onsu!tant 'o% %e(ommendations o' some )ood (onta(ts

5hi(h (an he!* the (om*any th%ou)h e+uity 'undin) method,

8/o Sa!man

8/at

o su%&ey and (om*a%e a!te%nati&e *%odu(t *%i(es '%om othe% su**!ie%s'o% mo%e ba%)ainin) *o5e%,

Ho, • Search on the net for alternative product brand.• !et company information and product description from product packaging

• Contact the company for further information such as quotation"

effectiveness of product and etc.

• Compare the price with all the products and switch to cheaper product with

better quality.

8/o Sa!man

8/a o se!! those so%ted %ubbish to a**%o*%iate (om*any


15/16

t

Ho, • #rowse for information about recycling companies on the net• !et those companies contact number

• Compare prices and sell to the company which provide highest price.

8/o Sa!man

8/a

t

o %est%u(tu%e *e%sonne! *!an and bene8ts es*e(ia!!y 'o% !o(a! (%e5s

Ho, • $dentify which area need to be improve or redesign to attract more local

people.

• Collaborate with all staffs to get a clearer image about the company

capabilities on financial and produce a better proposal.

• %repare a draft proposal to &li for review and amendment.

• !et &li approval to proceed to officialise the new personnel plan and

benefits.

8/o Loman

8/a

t

o %e*ai% those %usty too!s 'o% 'utu%e use,

Ho, • $dentify which rusty tools are still in working condition.• Sell off the rusty tools that are unusable and could not work for scrap value.

• Send those usable tools to 'rd parties for repair.

8/o Loman8/a

t

Monito% and (ont%o! the o*e%atin) (ost o' ea(h *%o9e(t st%i(t!y to %e;e(t

e


16/16

Time taen to complete t/is c/art) 19 /o&rs

Documents

Mini Case Study - Case Chart & Questions - KRS