7/25/2019 1.2 Problem Statement

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1.2 Problem Statement.

Based on the case study of the company we chose which was facing

smoldering crisis is Europlus Cnstruction Pvt. Ltd. hich were having problem in

the management and indecision. !he company were facing the problem of

abandoned housing construction pro"ect. !he main cause of the problem faced

was from #nancial problems. !he problems arised from an wea$ management

decision ma$ing in the management of the company. !he crisis they faced is

categorised as human error.

!he wea$ness of management had caused the #nancial department to

have di%culties thus resulting errors in balancing the cash out &ow anf the cash

in &ow for the e'penses of the pro"ect. (urthermore) the problem caused from the

wea$ management also causes the arise of another problem. hich were) the

failure to claim bac$ their matured investments valued *+ 1., Billion in totaldueto the termination of construction wor$s. -n addition) the termination also was

due to the shortage of steel supplies and sand for the continuation of the pro"ect.

Besides the problems faced by the company) the problems they faced also

causes problems to the purchasers of the housing development. !he problems

faced by the purchasers are such as they are unable to occupy their house units

on the promised date. e't) eventhough the house is incomplete the purchasers

have to pay monthly instalments of their housing loan. !hen) the purchasers have

to rent temporary house until the pro"ect is complete. (urthermore) there were

several of the purchasers have been blac$listed by the #nancers due to inabilityto regulari/e their housing loan accounts.