60796598

Living By Numbers-Value Creation Or Profit? Circumstance Summary This situatio basically talks about about MarineCorp Sdn Bhd leads by simply Hafiz Hashim who has location as a Chief Financial Officer (CFO) in MarineCorp. It is also a subsidiary of SURIA. MarineCorp is a ocean going solution service provider for its SURIA and have two subsidiaries which can be Green Port Sdn Bhd and Sungai Emas Sdn Bhd.

MarineCorp has their responsibility in deal with and doing both subsidiaries.

The economical statements of the three companies will end by year or so on thirty first December 2009. The problems include arise in managing three of the company in terms of Key Performance Indicator (KPIs) that could used in three of organization as President of SURIA wanted Value Based Management(VBM) to be used in itself in addition to three with the companies. Below VBM, efficiency of the organization will be noticed through overall performance evaluation and appraisal of employees even though the value of the company will certainly valued based on economic profits.

But , there is contradiction between President of SURIA and CFO of MarineCorp, Hafiz Hashim seeing that he thought that all value company performance must be measured depending on investment generate by equity and debt holders. It implies that they need to find investment based upon expected go back and cost of capital incurred by company. Next dialogue is about dilemma faces by simply Hafiz from your problems developing. We discovered that there are 3 of issues from dialogue.

Firstly, uncertainness in using economic earnings as needed by the Group or employed profits while practiced by simply MarineCorp to report monetary statements. Subsequently, Hafiz likewise in dilemma when the leader asked him to ranked the three firms in terms of their performance and prepares ideas on how to increase the performance of the company. Finally, Hafiz likewise pressured with General Administrator of Green Port Sdn Bhd and MarineCorp regarding the issues of accounting when it comes to maintenance costs, and the obligations of returns.

The leading part in this case is Hafiz Hashim because he is a person who can be responsible in decision making for determining which will performance benefit that could be employed by the company. Furthermore, he ought to follow instruction of the president to use monetary earnings to measure overall performance value of three firms. But , decision making make by simply Hafiz pretty many with the requirement asked by president as he feels the best way to assess performance worth should associated with the investments’ expected returning based on cost of capital