Case Study Of Renco Kat Company

Every operating company has its own features and methods of doing business according to its industry where the company actually operates. Competitive companies differentiate from each other by having either the comparative advantage or absolute advantage. Moreover, it is not avoidable that the almost all companies have its own problems inside and outside of the company which disturbs smooth flow of operation in companies. The main question arising in this moment is that whether those problems can be eliminated including all roots of the problem or at least diminish negative impacts of those problems on the company's operation. Despite the fact that the Renco Kat Company is one of the perspective companies in construction sphere it has also
Estimated loss from the problem is 26,100,000 KZT per year on average and calculation is provided below in this section. The lack of specialists is considered as a significant problem, especially professionals in the field of accounting and finance are highly needed. In the labor market of Aksai and Atyrau there are no much choices of accountant and chief accountant specialists whereas in Almaty it is easier to hire skilled and experienced employees due to high competition in labor market. The company faces this issue, especially head office in Almaty while consolidating financial statements. During auditing process accountants from branches cannot understand what sort of information is required from them. They only perform simple functions of accounting without deep understanding of issues which causes head office to double check the work done by subsidiaries and time-consuming explanations are needed. Obviously all these actions lead to overtime works and even make head office sacrifice its weekends and holidays being at workplace. Company confronts many problems and the waste of money when it hires unqualified candidate (Sravani,
The company provides social package to every employee as a motivating tool that ensures employee to stay in the company for longer periods. The indicator of the employee turnover rate is low and stable for the long run. There is no such tendency to leave after 2-3 years when an employee has got skills using resources of the company. The majority of employees plan their career stages in Renco Kat that means staying for the long-run perspectives by setting and reaching both the personal and company goals together. This picture can solve the following issue easily, as a result, there will be no need for the head office to work overtime and double checking financial reports of