...CASE PREPARATION CHART Student Name | Jeremy Liew Wei Wen | Student ID | 1121116242 | Submission date | 16 May 2016 | Case title | Flat cargo berhad: An Auditor’s conundrum | Section | AC01 | ------------------------------------------------- ------------------------------------------------- ASSESSMENT To be filled by facilitator Components | Scores | Scores | | 1 mark | 2 marks | 3 marks | 4 marks | | Completeness of case chart | Case chart is incomplete | Some of the case chart requirements are met satisfactorily. | Most of the case chart requirements are met satisfactorily. | All case chart requirements is met satisfactorily. | | Submission | On-time submission | N/A | N/A | N/A | | TOTAL | | Case analysis STAGE 1 Issues Explain the main issues underlying the case. Place extra attention on the what, why and when. Main issue regarding to the Flat Cargo Berhad is consist of few factor, the main issue face by Flat Cargo Berhad, accounting fraud, found that Flat Cargo Berhad (FCB) was involved in fraud, this matter will bring great impact to the accounting profession of Malaysia and the public confidence towards the profession will collapse similar to the case of Enron that is revealed in the year of 2001 from the pressure which regard to sustain in the industry leader in Malaysia air cargo carrier and maintain reputation of FCB under the international crisis in oil. Opportunities, for the poor internal control, which poor audit committee which affected independence...
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...stress, anxiety, absenteeism, illness, and mistakes can follow. For example - Some have been economically dynamic but socially disintegrated; others have been equitable but stagnant; several are both stagnant and unintegrated. Even as the economic outlook appears to brighten, the fact remains that many organisations can no longer operate as they had been. A key feature of this changing landscape is the need for organisations to restructure. Here are seven broad restructuring principles to help make any restructure a successful one. 1. Align structure to strategy All restructures must align to strategy. This may seem self-evident, yet a significant number of organisations fail to do so. For example, if local conditions are a predominant factor, then stress local sales and marketing functions rather than a centralised behemoth that then tries to matrix with local elements. 2. Reduce complexity Simply put, complexity costs. Whether it is a complex organisational structure, a complex product offering or complex transactional processes, the added cost of complexity can be a drag on performance. To mitigate complexity, there are three considerations that help with...
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...Recommedations 16 8. Work Cited 17 INTRODUCTION In evaluating two companies who have had to restructure their business models to evolve to changing times I choose United Airlines and Delta Airlines. Both companies filled for bankruptcy in the early 2000’s and since then have nursed their company back to health and to becoming the industries leaders for airlines. I choose these two airlines because I frequently use them to travel. My family are also huge travelers and I spend a lot of time looking for the best deals for them. United Airlines filed for bankruptcy in 2002 and would become the longest case in the United States lasting until 2006. The airline was able to get their reorganization plan approved by the United States government by restructuring their management plan. In the restructure they also changed how their bonus plan was organized for successful executives. They also had to evaluate their employee’s efficiency while on the clock. They were able to reduce their workforce from 100,000 employees to half of that. Finally the airline had to revaluate the routes they were taking and then see which ones made sense. Delta airlines went on to the verge of bankruptcy in September 2005. Delta’s changes also came from restructuring their management, rerouting their flights to make more financial sense and aggressively cutting cost. Today Delta Airlines is know as the airline industry leader from financial analysts. United Airlines vs. Delta...
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...Modifications and exchanges that are not considered Troubled Debt Restructurings are accounted for as either (1) an extinguishment (if the terms are substantially different, greater than 10 percent) or (2) a modification. A Troubled Debt Restructuring involves one of two basic types of transactions: 1. Continuation of debt with a modification of terms. 2. Settlement of debt at less than its carrying amount. In the first type of transaction, the creditor agrees to restructure the original terms of the loan in order to help the debtor meet its short-term cash requirement. The purpose of this modification of terms and reduction or deferral in payment is to help the debtor improve its financial condition and eventually be able to pay the creditor. The second type of transaction is an agreement between the creditor and debtor in which the creditor accepts cash payment, other assets or an equity interest in the debtor to fully satisfy the debt even though the value received is less than the amount of debt. In either case, the creditor is trying to make the best of a difficult situation and to maximize its recovery of its investment. If a debtor is currently able to...
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...Running head: LEGAL ISSUES IN REDUCTIONS OF WORKFORCE: FASTSERVE INC. Legal Issues in Reductions of Workforce: FastServe Inc. FastServe Inc. is a $25 million dollar company that markets sports apparel. Recently FastServe has ventured into marketing their sports apparel online which had a negative effect and the company must now layoff employees. Employees were notified that there would be a restructure of jobs and specific areas were restructured to provide the best outcome for the company. All employees employee’s evaluations for the last two years would be looked at to make a decision on which employees would be terminated and which employees would have their jobs restructured. The sections of the evaluations that were looked at were: job performance, productivity, skills valuable to the company, academic training, and absenteeism. This paper will identify the five candidates selected by the simulation and the choices made by terminating three of the five. These three terminations will align with the interests of the organization and the legal risks of terminating these individuals. Issue and Opportunity Identification FastServe’s five candidates for dismissal are: Carl Haimes, Brian Carter, Sarah Boyd, Nora Manson, and Jenny Mills. The concepts that would affect the decision to terminate these FastServe employees would be discrimination. Each of the five employees has been discriminated against in different ways. |Candidates for dismissal. ...
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...------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Task 01: Plan and Present Workplace Communication system Review of case study JKL industries is an Australian owned company selling forklift, small trucks and spare parts to industry. They also have a division which leases forklifts and small trucks on long term leases over three months. The company’s head office is in Sydney and JKL has branches in Brisbane, Melbourne, Perth, Adelaide and the ACT. After 12 years in business focusing on forklifts and small trucks JKL has been offered sales rights to arrange of medium and large trucks from an overseas supplier which will benefit JKL in range over its competitors. The past five years, sale of forklift and truck have averaged 10% increase but the rental market has been in decline. JKL then come up with an idea to restructure company itself by solely focusing on retails sale and exit from rental market. JKL plan to hire the staff from rental department who wish to remain with the company. The organization intends to build and maintain a positive organizational culture, reduce risk and achieve organization goals through this following points: * Developing an effective policy framework for managing internal...
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...CASE OVERVIEW The company that many of us grew up with that offered disposable diapers and training pants found itself in an ever changing and competitive market. With European markets opening up to more organizations, Kimberly-Clark needed a new strategy to overhaul its business and remain competitive. Some of the factors that brought on the need for restructure as seen in Hitt (2013), was a difficult merger between Kimberly-Clark and Scott Paper, lack of growth in developed countries and loosing market shares to competition. Kimberly-Clark came up with a unique restructuring strategy that would place products into categories based upon their selling strength (Grow, Sustain, or Fix). This strategy was not well received by shareholders and the stock market. Kimberly-Clark then choose to revise this strategy into a more acceptable one. Products would be placed into three categories. Personal care, washroom products, and emerging markets. IDENTIFYING PROBLEMS The obstacle that Kimberly-Clark faced during this restructuring phase would include the reorganization of production equipment and personal. By categorizing products into new categories management and production would have to be reorganized. The original restructuring plan would have products utilizing the same type of equipment being moved elsewhere due to its sales performance. Another disadvantage of this restructuring would be the cost. For example, an article seen in USA Today (2013), Kimberly-Clark anticipated...
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...discussion of how the concentration of ownership hinders restructuring alternatives like hedge fund investors can resist the controlling shareholders, and as underestimating the cost of institutions can lead to ownership structure, which allows the expropriation of minority shareholders. Why do shares in NEC Electronics, a publicly listed subsidiary of Japan conglomerate NEC trade at a discount to their fundamental value? Can Perry Capital, a U.S. hedge fund, restructure this subsidiary and generate significant returns? This case provides students with an opportunity to analyze Perry's decision to invest in NEC Electronics. In doing so, it asks for the reasons that NEC might take actions that destroy value and shift value away from NECE's minority shareholders. The events covered allow for a discussion of how ownership concentration constrains restructuring alternatives, how hedge fund investors might confront controlling shareholders, and how the mis-pricing of agency costs can give rise to ownership structures that allow for minority shareholder expropriation. Why do shares in NEC Electronics, a publicly listed subsidiary of Japan conglomerate NEC trade at a discount to their fundamental value? Can Perry Capital, a U.S. hedge fund, restructure this subsidiary and generate significant returns? This case provides students with an opportunity to analyze Perry's...
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...Motors (GM) is primarily engaged in automotive production and marketing and financing and insurance operations. GM designs, manufactures, and markets vehicles worldwide, having its largest operating presence in North America. By 2008, GM became vulnerable to the auto industry crisis, which they were not able to meet obligations. Over the years, GM was a dominating force in the auto industry. However, rising labor costs, concessions made to the unions, higher gas prices and a recession, GM was heavily burdened and could not provide the sufficient marketing funds for any one of its product lines. The U.S. government agreed to lend $13 billion in order to buy time to develop a restructuring plan (DePamphilis, 2012, p.648). The restructure plan impacted employees and operations in U.S. and Canada. With mergers and acquisition activities, the intent is to preserve and provide jobs to the community. However, this was not the case with GM. Was it justified to reduce the workforce? Therefore, the review of the bankruptcy steps taken by GM will determine if the restructure was successful. Pension Plan General Motors pension fund obligations and health care obligations appear to threaten the future of the company. Majority of General Motors’ U.S. employees are members of the United Auto Worker (UAW) Union, which ensures health insurance for its members by entering into contractual agreements with employers. In the 1990’s the UAWs’ officers and GM’s senior managers agreed to high...
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...Introduction Keeping any organization above water takes a few key components. These components are not limited to strategic planning, goals, budgeting, qualifications, leadership and loyalty. These components will make for a successful organization as long as they remember to prioritize. A case study has been conducted on the business of D.D. Williamson. The D.D. Williamson Company has not been one to lack success, but has lacked the ability to manage projects. Because of its lacking ability to manage projects they have missed out on opportunities and have exceeded budgets. After reading the case study we see that there has also been a clear breakdown in the communication when dealing with projects assignments. It took nearly three years before investigating and upper level management to figure out that there were no precise systems put into place for marking projects level of importance. Prioritizing is necessary and crucial to an organization for growth, planning, and success. According to Kloppenborg, Nkomo, Fottler, and McAffee (2012), D.D. Williamson would have benefited from utilizing a project management team, whom would have identified the scope of the project, cost, and taken ownership of the schedule from start to finish. Critique the prioritizing process at D. D. Williamson. This company would have benefited more, had they established an experienced project team, or teams that could have managed each project individually. According to Walker (2002)...
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...Norton’s Department Stores Case Table of Contents Executive Summary3 Introduction3 Case Findings4 Evaluations of Alternative Solutions5 Conclusion7 Recommended Plan of Action8 Evaluation of Recommended Solution9 References10 Appendices10 Executive Summary The Norton's chain of department stores has a long and tumultuous history, characterized by their early rise as an industry stalwart in the early twentieth century, to their current state on the brink of bankruptcy. The factors that coalesced to their fall from grace are numerous in nature. Yet one singular factor constantly resurfaces: the mismanagement of the firm stemming from the authority from birth-right exercised. Whatever course of action is taken; whether it is downsizing current locations, creating an e-commerce marketplace, or creating a new pricing strategy, one thing is clear: the main problem of management needs to be addressed first. Introduction Norton’s Department Stores was founded in 1869 by Thomas Norton, in a less than desirable area of Toronto. Since it humble inception, Norton’s have been instilled with certain characteristics conducive to success: “long hours, high quality, and friendly staff (Das, 2005)”. Norton’s has always been a private firm, run exclusively by the Norton family. In its early history, Norton’s experienced exponential growth and came to be known around Canada as a “dependable and customer-friendly merchandising empire (Das, 2005)”. At its height, the firm had...
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...Case Study 1: Prioritizing Projects at D.D. Williamson HRM 517 – Managing Human Resource projects Strayer University June 21, 2013 What was the Prioritization Issue at D.D. Williamson? In the case study of D.D. Williamson, it appeared the organization was successful in many ventures, but lacked the ability to manage certain projects. In fact, critical projects that required attention were left to the waste side, and as a result lead to missed opportunities, or resulted in going over the allocated budget. Within the organization of D.D. Williamson, there appeared to have been a breakdown in communication, which blinded the organization in determining projects that needed the most attention. Through the process of the organization’s investigation, which took approximately three years, leaders realized the they had no accurate system in place for marking the level of importance in each of their projects. In researching the writings of Kloppenborg, Nkomo, Fottler, and McAffee (2012), D.D. Williamson would have benefited from utilizing a project management team, whom would have identified the scope of the project, cost, and taken ownership of the schedule from start to finish. D.D. Williamson would have benefited from having developed a well-rounded project team, or several teams could have managed each project independently. Furthermore, each team could have managed the project based on the urgency of each project, the cost, and the practical details concerning...
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...Case Name: Captiva Conglomerate I. Major Facts Al Carpenter, Materials manager at Captiva Conglomerate called a meeting with his Inventory and Spares manager, Supply manager, vice president of Operations, vice president of finance and the director of Information Technology to discuss the contract with S. O. Software (SOS), the developer/supplier of a custom inventory management and spare parts management system. The spares management module was completed and is four months behind schedule. The regional and centralized inventory management system is 10 months behind. Al thinks that they should sue them. Aaron tells them that under the contract that Gerry signed they don’t have a leg to stand on. The contract calls for ‘best efforts,’ ‘whenever possible,’ etc. $1 million they had in the contract is used up already. There were 17 unpriced change orders. The specs were drafted by SOS and the IT manager initialed each page of the contract. II. Major Problem The contract was not reviewed by the appropriate personnel prior to the award of the contract. The spares management module is 4 months behind schedule. The system is a hassle to use and does not provide relevant data. The regional and centralized inventory management system is 10 months late. The contract calls for ‘best efforts,’ ‘whenever possible,’ etc and the $1 million called for in the contract is already used up with 17 unpriced change orders. The specifications were drafted by SOS and the IT manager had...
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...A Case Study of the Employee Turnover Problem in Walgreens Co. Jason Nguyen GM 591 Leadership and Organizational Behavior Professor Horst August 19, 2011 Introduction Walgreens Pharmacy is a drugstore chain that operates in the United States. This Company provides its customer with multichannel access to consumer goods and services, and pharmacy, health and wellness services in communities across America. Walgreens has become a fortune five hundred company and a popular landing spot for new college gradates. Instead of becoming a permanent home for new employees, it has become a stepping-stone for better job opportunities. This study provides literature reviews, problem analysis, and solution recommendations for the employee turnover tendency problem facing Walgreens Pharmacy. Walgreen offers its products and services through drugstores, as well as through mail, by telephone, and via the Internet. It sells prescription and non-prescription drugs, as well as general merchandise, including household products, convenience foods, personal care, beauty care, candy, photofinishing and seasonal items. Its pharmacy services include retail, specialty, infusion, medical facility, long-term care and mail service, along with pharmacy benefit solutions and respiratory services. Walgreens corporate, located in Deerfield Illinois, is in charge of overlooking all of the operation within the organization. My role in the organization is a Business Analysis. I am...
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...TROUBLED PAST AND PRESENT During the fiscal year of 2002, United Airlines faced tremendous pressure from increase in costs, and decline in passengers. United Airlines was in a difficult position to pay off its debt, given that its industry leverage ratios are high compared to other industries. After failure to attain $ 1.8 million in loan guarantees from the Air Transport Stabilization Board, UAL finally filed for bankruptcy protection in December the same year. ANAYLSIS OF UAL UNDER BANKRUPTCY PROTECTION The rationale for allowing companies to restructure their debt and operation is to allow companies to have the ability to cut its and raise some much needed cash to continue its operation. “Automatic stay”, under section 1110, which is a specific code in the airline industry, helps to protect creditors whose loans are secured by aircraft. However, “automatic stay” also guarantees a secured loan period of up to 60 days, in which debtors are not obliged to pay back creditors. Once companies like UAL filed for bankruptcy protection, it is virtually impossible for these companies to attract willing creditors to finance these companies. Thus, under the Chapter 11 protection, it allows debt-in-possession (DIP) financing to help these companies to raise needed capital. DIP loan are guaranteed seniority to existing creditors, which are incentives to creditors to provide funds to companies under bankruptcy protection. From the perspective of UAL, attracting more creditors to...
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