Mini Case Study - Case Chart & Questions - KRS
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8/17/2019 Mini Case Study - Case Chart & Questions - KRS
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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$
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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.
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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.
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'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
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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
o(Main decision *ecision criteria Alternati+es
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) $iabilities s&c/ as loan rom credit acilities
Interest) Interest rom liabilities s&c/ as credit acilities
Proft) Amo&nt o proft .enerated rom b&siness
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'ey
playerSalman
N
o( Main decision *ecision criteria Alternati+es
1,
Su%&ey and (om*a%e
a!te%nati&e *%odu(t
*%i(es '%om othe%
su**!ie%s 'o% mo%e
ba%)ainin) *o5e%,
• %i(es
• ime
• a%)ainin) *o5e%
• Su%&ey and (om*a%e
• Sti( to the (u%%ent
su**!ie%s
2,
Se!! those so%ted
%ubbish to
a**%o*%iate
(om*any,
• #e&enue• Se!!
• >ust th%o5 it into
a**%io*%iate bins,
3,
#est%u(tu%e
*e%sonne! *!an and
bene8ts es*e(ia!!y
'o% !o(a! (%e5s,
• ime
• ost
• O*e%atin)
e*enses
• Att%a(ti&eness
• #est%u(tu%e it
• #emain 5ith (u%%ent
*!an and bene8ts
0rices 0rices of products from different supplierTime Time spend on survey and compare A&2 restructure personnel pelan and
benefits.3argaining power +ompany has more options to purchase at lower price.
"evenue 4ither increase or decrease in revenue+ost 5ver6time costs for staffs spend e*tra time on restructure the whole
thhings.5perating e*penses )ncrease or decrease in operating e*penses depends onalternative chosen.Attractiveness To attract more local people to be permanent crews
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'ey
player$oman
N
o(Main decision *ecision criteria Alternati+es
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
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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,
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'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
Preerred alternati+e 0 predicted o&tcomes)
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(
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'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,
-
Preerred alternati+e 0 predicted o&tcomes)
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
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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!!,
Preerred alternati+e 0 predicted o&tcomes
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(
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'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,
- -
Preerred alternati+e 0 predicted o&tcomes
$oman s/o&ld ad+ise Ali to repair t/ose r&sty tools to a+oid ne.ati+e
conse6&ences in &t&re &se(
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'ey
player$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
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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
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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
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Time taen to complete t/is c/art) 19 /o&rs