The purpose of this project is to analyze the problem faced by Mat Jon and try to relate thesituations of real petrol station into the Mat Jon’s case. At the end of this project, we willconclude whether Mat Jon should investigate on his nephew which is Jamel or not, and whether Mat Jon should sell or not, his petrol station to his old friend, Robert.In early August 2009, Mat Jon, the owner of Jon Entreprise, who owned the Spetrol station, haddetected some problems regarding his petrol station. It includes decrease in sales, increase incost of sales, high bank overdraft, low cash collection and shortage in inventories. This entireproblem occurred under the management of Jamel, his nephew. At the same time, Robert Leung, Mat Jon’s old friend, also have his own Spetrol station want tobuy the petrol station owned by Mat Jon. Mat Jon was not very keen to sell the business, he stillwant to know more about what actually happen in his business before making the decision.In order to gain more information regarding this problem, Mat Jon held a meeting with Jamel.During the meeting, Jamel does not give any other reason why those problems arose. The onlyreason that he give was caused by high competition from two other petrol stations around thearea which is Caltex and Petronas.Mat Jon feel that high competition is not the only reason why those problem happened. Hestarted to suspect his nephew was short-changing him. He worried about what exactly Jamelwas up to. Then, he wandered as to what control mechanisms he would be able to implement toprotect his business and to prevent a recurrence of the crisis.In order to help Mat Jon in investigating these problems, we make an interview with twodifferent petrol stations around the Klang Valley. First is BHPetrol Station located at Jalan BatuTiga Lama, Shah Alam. Second is Petronas Station located at Jalan Langat, Bukit Tinggi,Klang. 3.1Working Capital Management
3.1.1Cash Shortage At petrol station business, most...
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