Case Study on Petrol Station
1.0 EXECUTIVE SUMMARY
Mat Jon was the owner of Jon Enterprise who owned the Spetrol station located along the BPK Highway. Spetrol was acknowledged as one of the big players in domestic petroleum products industry. However, Jamel who Mat Jon’s nephew was on boarded of the operations of the pump station and he did not participate in the business operation since he was in his post retirement years. At the start, the business was doing convincingly well, this success was helped by the strategic area that petrol station been located. Nevertheless, the business was performing gradually bad and the profit was declining significantly. Jamel argued that this was due to the emergence of new competition; 2 new petrol stations were operated at the same location. An old colleague of Mat Jon, Robert Leung made an offer to acquire the business regardless of knowing the unfavourable condition the station was stumbling. As a result, he asked Jamel to prepare him the financial performance and he had to analyze it meticulously before taking into consideration to accept Robert’s offer.
After made the assessment on the financial position of the business for a three recent years, Mat Jon discovered a few peculiars in the reports Jamel had given him, setting him in reservation of his nephew’s responsibility. He met Jamel and started giving a lot of questions and his unsatisfying towards his nephew. However, Jamel was not confidently answering the questions and trying to hide some facts what actually happened. Mat Jon then confronted Sudin, the supervisor of the pump station to get an explanation about the entire midst, and Sudin informed him of a complaint made by a regular customer, saying that he was scammed by a pump attendant and no action was taken. All these revelation were led by the analyzing of financial position for helping Mat Jon in doing decision whether to sell off the pump station or not. Mat Jon contacted his friend, Fuad, an accountant, to assist him with the
Mat Jon was the owner of Jon Enterprise who owned the Spetrol station located along the BPK Highway. Spetrol was acknowledged as one of the big players in domestic petroleum products industry. However, Jamel who Mat Jon’s nephew was on boarded of the operations of the pump station and he did not participate in the business operation since he was in his post retirement years. At the start, the business was doing convincingly well, this success was helped by the strategic area that petrol station been located. Nevertheless, the business was performing gradually bad and the profit was declining significantly. Jamel argued that this was due to the emergence of new competition; 2 new petrol stations were operated at the same location. An old colleague of Mat Jon, Robert Leung made an offer to acquire the business regardless of knowing the unfavourable condition the station was stumbling. As a result, he asked Jamel to prepare him the financial performance and he had to analyze it meticulously before taking into consideration to accept Robert’s offer.
After made the assessment on the financial position of the business for a three recent years, Mat Jon discovered a few peculiars in the reports Jamel had given him, setting him in reservation of his nephew’s responsibility. He met Jamel and started giving a lot of questions and his unsatisfying towards his nephew. However, Jamel was not confidently answering the questions and trying to hide some facts what actually happened. Mat Jon then confronted Sudin, the supervisor of the pump station to get an explanation about the entire midst, and Sudin informed him of a complaint made by a regular customer, saying that he was scammed by a pump attendant and no action was taken. All these revelation were led by the analyzing of financial position for helping Mat Jon in doing decision whether to sell off the pump station or not. Mat Jon contacted his friend, Fuad, an accountant, to assist him with the