Download - Ics case study 4
INTRODUCTION OF COMPANY
• Shipping Business
• Wholly-owned subsidiary of SURIA
• Maritime solutions provider for the SURIA group of companies.
• Two subsidiaries – Green Port Sdn Bhd
Sungai Emas Port Sdn Bhd
• Hafiz Hashim – Chief Financial Officer
• Vessel inspection & vetting – Major business
• Strategic alliances- Malaysian government
SWOT ANALYSIS
Strength • Strategic alliances with various Malaysian government authorities• Skilled marine professionals
Weakness• Lack of quality staff – uncompetitive salary scale• Same CEO for 3 companies• Organization structure – very flat•
Opportunities Threat • Conflict between chairman and Hafiz• Repayment not fixed amount•
ISSUES IN MARINECORP
• Value Creation
• Conflict between Chairman and Hafiz
• Capitalize expenses
• How to reduce cost?
• Cost Control• Operating cost
high – maintenance regularly, expertise people
• Value Based Management
• Organization Structure
• Very flat• Same CEO for 3
companies• Lack of quality
staff•
• Financial Perspective
• Economic earnings
• NOPAT• Residual
income• Dividend
payback back or invest it?
RANKING OF COMPANIES
Green Port
MarineCorp
Sungai Emas Port
Issues
1.Value Creation
2. Organization Structure
3. Financial Pespectives
Recommendation
-C- CSR- Increasing Customers- Capitalize the dredging cost – IFRS - Maximize Shareholders wealth - Repayment should be fixed
- 1 company 1 CEO- Multidivisional Structure- Provide remunerative for staff
- Pay dividend for shareholders-
WHAT IF ANALYSIS