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Slide Chicken Run Case-MAF 680-Final Year Accounting Student UiTM Shah Alam
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Transcript of Slide Chicken Run Case-MAF 680-Final Year Accounting Student UiTM Shah Alam
GROUP : TARZENCHICKENGROUP MEMBERS :MOHD SOBRE BIN ISMAIL KHAIRUL ANUAR BIN JAMALUL NASIR MOHD SYAFFIQ BIN SYED KALI MARICAR AHMAD DINIE BIN MOHD MOHSIN MOHD SAYUTI BIN TOKIMAN MOHD ABDUL HALIM BIN SALANI AHMAD QAYYUMUL IHSAN BIN JOHARI
Small & Medium Enterprisey Full time employees not exceeding 150 people y Annual sales turnover not exceeding RM25 million y Small enterprise: y Full time employees 5 > 50 people y Sales turnover RM250,000 > RM 10 million y Medium enterprise: y Full time employees 51>150 people y Sales turnover RM 10 million > RM 25 million
Excel Poultry & Meaty 1998 y SME y Employees 20 y Currently y Large enterprise y More than 200 employees y Sales turnover 74.9 million
Ceiling price mechanismPrice SS
eP0 P1 Shortage Q1 Q0 Q2 Ceiling price DD Quantity
Way to deal the shortage problemy Import the goods y Shortage can be eliminated y Supply at same price y Quota y Impose quota for each person y First came first serve
Definitiony process of social influence in which one person can enlist the aid
and support of others in the accomplishment of a common task. y ultimately about creating a way for people to contribute to making something extraordinary happen. (Alan Keith of Genentech) y the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals. (Ken "SKC" Ogbonnia)
Leadership StylesAuthoritarian Leaders tell their employees what they want done and how they want it accomplished, without getting the advice of their followers Appropriate conditions to use it is: Employer have all the information to solve the problem. Lacks of time. Employees are well motivated. Participative Leader including one or more employees in the decision making process (determining what to do and how to do it). The leader maintains the final decision making authority. Appropriate conditions to use it is: This is normally used when employer have part of the information, and employees have other parts. Employ knowledgeable and skillful employees. Using this style is of mutual benefit it allows them to become part of the team and allows to make better decisions. Delegation The leader allows the employees to make the decisions. However, the leader is still responsible for the decisions that are made. Appropriate conditions to use it is: Employees are able to analyze the situation and determine what needs to be done and how to do it. Trust and confidence towards employees
Value and Ethic as leadery Integrity y Responsibility y Credibility y Independence
Issuesy En. Selamat do not have value
Recommendationy Must have value and ethic
an ethic as leader: Independent. Director was reluctant to take
when become as leader: Independent. BOD must straight in their
any actions against Encik Selamat since he is very well connected and had good reputation in the previous company.
decision. As a leader, he should act with profound sense of integrity and fairness. Encik Selamat must uphold this value in his daily decisions and actions.
Issuey En Selamat use delegation
Recommendationy He should monitor or use
style with high trust to En Kassim
combination leadership style.
Organizational ChartB.O.D
En. Selamat General Manager En. Kassim Finance Manager
Ms. Choy Credit Controller
Pn. Azura Accounts Executive
Duties of Directory Establish vision, mission and values y Determine the company vision and mission to guide and set plan for its current
operations and future development.y Set strategy and structure y Review and evaluate present and future opportunities, threats and risks in the external
environment and current and future strengths and weaknesses relating to the company. y Determine the business strategies and plans and ensure that the company's organisational structure are capable and appropriate for implementing the chosen strategies.y Delegate authority to management y Monitor and evaluate the implementation of policies, strategies and business plans. y Exercise accountability to shareholders and be responsible to relevant
stakeholders y Understand and take into account the interests of shareholders and relevant stakeholders. y Monitor relations with shareholders and relevant stakeholders by gathering and evaluation of appropriate information.
Duties of General Managery Primarily responsible for guiding employees in achieving the goals y y y y
y y
of the organization. Ensure that all processes and practices are working in a proper manner. They need to hire well-experienced and efficient managers for handling the operations of individual practices in a company. They need to train, guide, assist and monitor that managers. Conduct presentations to the higher management pertaining to business, marketing, and advertising strategies, and all other necessary aspects of the company processes. Communicating with clients and attracting new projects to the company. Ensure that every individual department is giving their best possible outputs, and recommending any new policies that are likely beneficial to the organization.
Duties of Credit Controllery Manage the book of debtors accounts y y y
y y y
(to be familiar with all companies the needs are and how to deal with late payments on each of them). Ensure payment of outstanding invoices via email, letters, and telephone Ensure that the company don t exceed the credit limit before give them credit sales. Keep a record of all information and communication with the customer (this is important when there are payment problems and the account becomes legal, these records are needed for court proceedings). They will reconcile accounts and do the same for the month end for the whole debtor ledger. They report to management on outstanding issues and inform them early of potential debtors problems. They may deal with liquidators and ask for bad debts to written off.
A potential conflict exists when there is a possibility that an individual s outside financial interests could directly and significantly affect the individual s professional actions or decisions.
Where can a Conflict of Interest occur?
Business relationships
Individual relationships
.
Individual relationshipsy Example : En. Selamat & En. Azman
Recommendations:1) Research clients, employees, and companies thoroughly before doing business with them. 2) Create and communicate a code of ethics that includes guidance on client and any other relationship of that nature.
Sales & Cash Collection
Issuey Marketing department continued to supply the
product even the credit limit of Cold Gold Sdn Bhd had gone into its limit.
RecommendationShould perform well in sales activities HOW??????????(1) Sales Order Entry (4) Cash Revenue (2) Collections Cycle Shipping (3) Billing
Sales Order Entryorders Customer Rejected Orders (2) Approve Credit Acknowledgement Approve orders (3) Check Inventory Availability (1) Take Order
Process of Sales Order Entry(1) Taking Customer Orders Receive order in many ways. sales order contains information about item numbers, quantities and prices. (2) Credit Approval Credit sales should be approved before they are processed. Checking and verify the account. Order exceeds the customers credit limit, it require specific authorization by credit manager. (3) Checking Inventory Availability Determine if there is sufficient inventory available to fill the order. If sufficient, the sales order is completed. If not sufficient, the department of production will be informed about the shortage.
Issuey Weakness in cash collection.
- Because of customers selection. - Depends on relationship rather than business matter.
Recommendationy Provide sales discount for early payment. y Provide good term of payment. y Should find potential clients which are profitable. - Find new market, export to others countries.
Issue on Cash Collectiony The statement of customer account is not tie up with
the clients records. y Two possibilities:y Account receivable not being maintain properly. y Theft on cash collections.
RecommendationMaintaining of Account Receivables. y Errors in maintaining customer accounts can lead to the loss of future sales and may indicate possible theft of cash. y Procedure to maintaining the customer accounts:y Validity checks on the customer and invoice numbers. y Closed-loop verification-ensure that proper account is
being credited. y A field check-only numeric values are entered for payments amount.
y It also important to reconcile the subsidiary accounts
receivables with the general but the reconciliation should be done by another person. It is because:y Its easier to catch someone mistake. y Identify irregularities.
Process of Cash CollectionsPayments Customer Cash Receipts Cash Collection s Statements Deposits Bank
Objective of Cash Collections Function:- to safeguard customers remitances.
RecommendationCash Collectionsy Segregation of duties is the most effective control
procedure for reducing theft. y The duties should be segregated:y Handling cash or checks and posting remittances to
customer accounts. y Handling cash or checks and authorizing credit memos. y Issuing credit memos and maintaining customers accounts.
Who is whistle blower?y person who reveals any wrongdoings or malpractices
that are taking place within an organization
Whistle blowery significant means of detecting fraud and corruption
and should be part of an overall control framework. y keep things to ourselves or it not being in our nature to do that. y may file complaints that reasonably believes evidences a violation of a law, rule or regulation.
What shows whistle blowing act??Ms Choy had approached BOD.
For what????The deal between En. Selamat and one of the Cold Gold Sdn Bhd s directors.
y En. Selamat is the best friend of major customer. y Allow customer to be supplied without concerning on
their outstanding balance. y The BOD refuse to take any action
Business relationshipsy Example : BOD & En. Selamat
Recommendations:1) Maintain professionalism in the office y Employers should promote open communication with their employees but not to the extent that the workers treat them as bosom-buddies. While it will be helpful to remain approachable, employers and supervisors should know where to draw the line. y Remember that a sense of authority is the most important thing in managing a business.
Recommendations:- (Continued):2) Make sure to hire people, especially board of directors and key employees, based on their skills and dedication. y When hiring board of directors, make sure they are not part of any rival company or own a business that competes with the firm where they serve as key employees and decisionmaker. 3) Avoid Conflict of Interest y S 132(2) of CA 1965 : shall not make improper use of company information to gain directly or indirectly advantage for himslef
Conclusiony The company financial result become worse as there
are increase in cost of chicken productiony Find other alternative to feed the chicken ex: y Use chicken shit as their side income
y The company ignore the importance of collection
system that resulted in high outstanding balance. y Most of the decision made by En Selamat had incurred cost to the company.
Conclusion (continued..)y Use his power to give benefit not only to himself but
other people that well connected to him. y Involve in conflict of interest. y En Selamat mostly responsible on the problem faced by company.