ACC 4291 – Integrated Case Study
Case Analysis Report on Living by Numbers – Value Creation or Profit?
The summary
This case basically explains about the dilemma that faced by Hafiz Hashim who is the CFO of MarineCorp Sdn Bhd (MarineCorp). This company was incorporated in 1992 and was a subsidiary of SURIA. MarineCorp has two wholly subsidiaries which are Green Port Sdn Bhd (GreenPort) and Sungai Emas Port Sdn Bhd. Its main operation was the maritime solutions providers for the SURIA group of companies like provide marine consulting services to SURIA and its related contractors that included those for newly vessels for upstream and downstream oil and gas operations. There are some problems occurred which are the chairman who is
…show more content…
With regard to GM of Green Port, Anita Osman, she had requested to the CFO to amortize the dredging costs in order to improve the company’s profit for the best interests of the company as well as to achieve her KPI target. However, CFO argued that cost of dredging have to be charged in the financial year they were incurred. Similarly, GM of MarineCorp, Lee Chong Way, he disagreed with the recommendation proposed by CFO to pay dividends to its shareholder because the cash resources are used to generate interest income on fund investments. Besides, the company should focus on improving profit as it is the main evaluation in company’s ranking. However, it is actually his performance target that must be achieved. Second, Chairman also requested him to rank the three companies in terms of their financial performance. But, the questions arise on how it should get measured. For example, use profitability as the sole measurement, identify better performance indicator to ensure fair evaluation or determine specific action to improve performance. Despite to that, the chairman emphasized on the importance of holding onto the group value drivers to ensure survival and success. Third, the Chairman had questioned about the conflict of the registered net profit after tax for the period 2009. Through the CFO analysis, he said that company’s actually destroying its value.
The Corporation's performance metrics highlights three significances for raising shareholder value: returns, leverage, and growth. The Corporation's main concern of growth concentrate on sales through similar companies or club sales and unit square feet growth; the importance of leverage incorporates the Corporation's objective to raise its operating income quicker than the growth rate in net sales by increasing its administrative expenses, selling, and operating expenses, at a measured rate than the progression of its net sales; and the importance of returns emphasizes on how proficient the Corporation engage its assets through return on investment also, how efficiently the Corporation achieves working capital and capital expenditures through free cash flow. (See Figure
Clearwater Seafoods (CS) is a seafood exporting firm based in Canada. The firm is suffering value declining from international trade due to the appreciation of Canadian dollars. Hence, the company’s value declined for 35% that fails to distribute dividends under income trust since 2002. The company has to hold a conference for shareholders to establish an appropriate strategy to address the value declining problem and change its unit holder’s pessimistic shareholding sentiment.
This report has been assigned by the University of Western Sydney to analyse strategic review for Premier Investment Ltd that was introduced in 2011in relation to its wide cost efficiency program and long term gross margin expansion program. The comparison analysis of 2011 and 2012 for Premier will be performed to examine the success of strategic review. Finally, there will be an identification of any red flags that might be highlighted in ratios analysis from Premier recast financial statements.
Firstly there is a significant Ethical and morale lapse in a share floated company when the CEO engages in related party transactions. The moral issues arise
The Financial manager is under an obligation to check the financial performance of the funds invested in the business. It requires retrospective analysis of the operating period to evaluate the efficiency of financial planning. An unbiased assessment of financial performance shall be great value to the
Issue: whether the directors have breached their duties. It is questionable that whether the directors breached their fiduciary duty towards the company by not putting first the interests of the company.
Interwest Healthcare Corp. is a non-profit organization. This organization has not been doing well in the healthcare industry for the last couple of months. Interwest’s CFO found that the employees are not giving full concentration while data entry. Interwest continuously making wrong report and for this reason it deprived of getting federal funds from Government, which is a huge loss for them. The CFO Mr. Sing addressed the problem and managed a meeting with the employees including the CEO in order to fix the problem; but, the result is zero. Moreover, the employees said Mr. Sing is not taking care of patients. The CEO feels pressure do not maintain the commitment he made with the high authority of the company. Finally, in
Our case presents Mr. John Clendenin with the ambitious goals of becoming successful enough to be a corporate officer of a Fortune 50 corporation and on the boards of numerous others. Eventually, he wanted to be appointed to a cabinet-level position in the government. He currently is the director of the Multinational Development Center (MDC), which provides Xerox with efficient global logistics and inventory management systems. He started with Xerox back while he was attending Harvard Business School working as a productivity consultant in the parts and supply area. His early successes through improvements in the multinational computer and management systems allowed him to climb to a position where he became an administrative manager. Along the way, he was met with resentment due to being promoted so quickly and receiving resources other departments did not.
Daktronics, a company specializing in manufacturing electronic score board systems, is facing the issue of dealing with a changing environment in their market. Having invested a large amount of capital into their large sales force, the company accrued “relationship capital”. However, increasing involvement of consultants in the market changed the market structure, their good will or relationship capital may not be enough to maintain their marketshare. The presence of the consulting firms coupled with poor market conditions and sometimes hostile relationships with the consultants eroded Daktronics profits. The company now must decide what they are to do as a result of the changing environment in the large
It is a relevant ethical dilemma because it is a situation in which an ethical decision needs to be made by a businessman (CFO of Gabriel Resources) where viable options to this case are available which will be judged further in this essay by applying ethical theory and concepts.
The board had exercised he legitimate power in removing the cofounder of the company from his position because of the controversies surrounding him. It was the responsibility of the board to carry out the functions of the company smoothly and avoid any controversies that resulted due to the CEO’s statement that hampered public relations and managing investors trust.
Data collection for this report were collected from the annual report of five Bumiputera Listed Company on Bursa Malaysia from the year2008 to 2013, which are Gopeng Berhad, Heitech Padu Berhad, Ingress Corporation, KAF-Seagroatt and Campbell and Kencana Petroleum. Additional data and figures were extracted straight from financial websites of YAHOO!Finance and Wall Street Journal. Data key in and analye were done using Microsoft Excel
The short story” Number 40”is written by Sarah Butler. It was released in 2012 in the anthology; ”The Picador Book of 40”. Some of this issues that are brought up in this short story is mental confusion and loosing yourself, while trying to please others.
Two objectives are built to be achieved before 30th, December 2007. The major one is to help the stakeholders to know why these two companies are so successful in the past three years (2004-2006) by analyzing their financial conditions. The other one is to find these two companies’ own advantages and disadvantages by comparison.
REPORT OF FINANCIAL ANALYSIS OF SANTOS LTD (2014-2013) TO Mr. K. GREY (ACCOUNTANT, SEQ INVESTMENT CO) PREPARED BY SONIA ARORA TABLE OF CONTENTS Page Executive Summary 3 1. Objectives of measuring Organisational 5 Performance 2. Calculation of the ratios 9 3.