Chicken Run
1. INTRODUCTION
1.1 Case Background
This case is about the Small medium enterprises, Excel Poultry & Meat Sdn Bhd (EPM) that face management, production, financial and internal control problems. Besides that, In this case also show conflict of interest between General Manager of EPM, En Selamat with the main debtors. The lack of internal control causes bad financial performance since 2008. Other than that, this case also shows the external factors for the production process that cause “chicken run” crisis.
Our responsibility is to give the solutions to EPM for face their problems. SMEs is the most important for Malaysian economic growth, so for that purpose we need make sure our SMEs had the excellent management in their financial and internal control.
2. Company Background
Excel Poultry & Meat Sdn Bhd (EPM) was establish in 1998 as Small and medium sized enterprise (SME).Their Core business is chicken farming and supplying to various outlets in Malaysia such as hypermarkets and restaurants. Currently, they have more than 200 employees. EPM aso knowed as Top 5 chicken supplier in mid-tier producers in the country.
3. Definition of SMEs.
Malaysia adopted a common definition of SMEs to facilitate identification of SMEs in the various sectors and subsectors. This has facilitated the Government to formulate effective development policies, support programmers’ as well as provision of technical and financial assistance. An enterprise is considered an SME in each of the respective sectors based on the Annual Sales Turnover or Number of Full- Time Employees.
SMEs were divided into two categories. First category is manufacturing, manufacturing-related services, and agro-based industries. Small and medium enterprises in this industries have full-time employees not exceeding 150 OR with annual sales turnover not exceeding RM 25 million. Second category is services, primary agriculture, and information & communication technology
1.1 Case Background
This case is about the Small medium enterprises, Excel Poultry & Meat Sdn Bhd (EPM) that face management, production, financial and internal control problems. Besides that, In this case also show conflict of interest between General Manager of EPM, En Selamat with the main debtors. The lack of internal control causes bad financial performance since 2008. Other than that, this case also shows the external factors for the production process that cause “chicken run” crisis.
Our responsibility is to give the solutions to EPM for face their problems. SMEs is the most important for Malaysian economic growth, so for that purpose we need make sure our SMEs had the excellent management in their financial and internal control.
2. Company Background
Excel Poultry & Meat Sdn Bhd (EPM) was establish in 1998 as Small and medium sized enterprise (SME).Their Core business is chicken farming and supplying to various outlets in Malaysia such as hypermarkets and restaurants. Currently, they have more than 200 employees. EPM aso knowed as Top 5 chicken supplier in mid-tier producers in the country.
3. Definition of SMEs.
Malaysia adopted a common definition of SMEs to facilitate identification of SMEs in the various sectors and subsectors. This has facilitated the Government to formulate effective development policies, support programmers’ as well as provision of technical and financial assistance. An enterprise is considered an SME in each of the respective sectors based on the Annual Sales Turnover or Number of Full- Time Employees.
SMEs were divided into two categories. First category is manufacturing, manufacturing-related services, and agro-based industries. Small and medium enterprises in this industries have full-time employees not exceeding 150 OR with annual sales turnover not exceeding RM 25 million. Second category is services, primary agriculture, and information & communication technology