issue chicken run

Topics: Fiduciary, Pricing, Price Pages: 1 (351 words) Published: November 6, 2014

CHICKEN RUN
1-Rising cost of material
•increase in chicken feed cost ultimately increase the production cost. •Price of a bag of feed increase from RM54.50 to RM88.00. approximately 56.5%. •Increase  in the cost of material leads to the increase in the chicken prices and automatically decease the demand of chickens in the market. Recommendation

•To utilize the government scheme by apply subsidies allocate to the business enterprise at Malaysia and price ceiling on raw material and certain production cost. •It will reduce the impact of the increase in cost of feed for the chicken. •The company can apply a cost-based pricing strategy in order to fix the price per chicken. •To closely monitor and eliminate any unnecessary cost to maintain the revenue. 2-Lack Of Internal Control In Management

•The directors have conflict of interest.
•Enable to extend the credit limit authorized by Encik Selamat and not Miss Choy. •Delegate of some function without a proper authorization
RECOMMENDATION
•EPM needs to have a proper guideline or policies and procedures to speak in handling conflict of interest. •Implementing a policy to ensure the members of EPM to disclose any conflict of interest •Encik Selamat must follow fiduciary duty as a director in EPM •He also need to act in a good faith, act in the best interest of company, use his power properly and should not have any conflict of interest with the client or the third parties. 3- Payment from customers

•Payment from customers not properly supervise and authorized •There is no receipt for any payment made by customer as a prove of the transaction RECOMMENDATION
•EPM should implement proper payment procedures include preparation, supervision and authorization which can a avoid duplication, over payment and other miss management 4- Delegation functions by Encik Selamat•Encik Selamat put high trust to talented and trustly young star staff including Encik Kassim when delegate some of his functions

RECOMMENDATION...
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