chicken run case stdy
Contents
INTRODUCTION
Excel Pountry & Meat Sdn Bhd (EPM) which is small & medium sized enterprise (SME) was a subsidiary of PCK Holding and located in Kluang, Johor. EPM was established in 1998 with initial capital of RM 3.6 million and main business is to carry on chicken farming and supply of whole chickens to various outlets in Malaysia.
Starting with 20 employees, EPM now had more than 200 employees and become amongst top 5 chicken suppliers in the mid-tier producers in the country as the company also one of the members of Livestock Farmer’s Associations of Malaysia (FLFAM). The chart below shows the organizational chart and the person responsibility to each department.
The company was able to maintain its operation and make profit to in the poultry and meat industry since strong chicken consumption in domestic market as Malaysia recording one of the world’s highest per capita consumption rates in the world for chicken. The domestic market was further intensified by popular home-grown fast food chains and the surge of quick-service-restaurants and also traditional Malaysian delicacies such as Satay Ayam and Rendang Ayam have causes business in these local chains reported to be doing well.
En Selamat, a Certified Public Accountant had been the General Manager since 2005 and he has established good promotional strategies closely managed function units. As a result, the company maintains to make profits as the demands from the superstores continues and was spread to a different market segment such as hospitals and hotels. However, in the year 2008, the company having loss in operation which indicated that the company facing problems in term of lack on the important considerations for proper running of business operations in term of management, accounting record procedure, internal control, conflict of interest and human resource that potentially harm the image and financial performance.
Issues and Recommendation Solutions
Issue 1:
INTRODUCTION
Excel Pountry & Meat Sdn Bhd (EPM) which is small & medium sized enterprise (SME) was a subsidiary of PCK Holding and located in Kluang, Johor. EPM was established in 1998 with initial capital of RM 3.6 million and main business is to carry on chicken farming and supply of whole chickens to various outlets in Malaysia.
Starting with 20 employees, EPM now had more than 200 employees and become amongst top 5 chicken suppliers in the mid-tier producers in the country as the company also one of the members of Livestock Farmer’s Associations of Malaysia (FLFAM). The chart below shows the organizational chart and the person responsibility to each department.
The company was able to maintain its operation and make profit to in the poultry and meat industry since strong chicken consumption in domestic market as Malaysia recording one of the world’s highest per capita consumption rates in the world for chicken. The domestic market was further intensified by popular home-grown fast food chains and the surge of quick-service-restaurants and also traditional Malaysian delicacies such as Satay Ayam and Rendang Ayam have causes business in these local chains reported to be doing well.
En Selamat, a Certified Public Accountant had been the General Manager since 2005 and he has established good promotional strategies closely managed function units. As a result, the company maintains to make profits as the demands from the superstores continues and was spread to a different market segment such as hospitals and hotels. However, in the year 2008, the company having loss in operation which indicated that the company facing problems in term of lack on the important considerations for proper running of business operations in term of management, accounting record procedure, internal control, conflict of interest and human resource that potentially harm the image and financial performance.
Issues and Recommendation Solutions
Issue 1: