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Chicken Case Study

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EXECUTIVE SUMMARY
Encik Selamat a Certified Public Accountant (CPA) is General Manager in Excel Poultry & Meat Sdn Bhd (EPM) that was established in 1998. Before appointed as a General Manager at EPM, Encik Selamat was dealt in the business of transportation from another subsidiary.
EPM has been a subsidiary of PCK Holding since 2005. The company operates on chicken farming and supplying the chickens to various outlets in Malaysia. The company was one of the members of the Federation of Life stock Farmers’ Association of Malaysia (FLFAM).
The company was started with an initial capital of RM3.6 million and 20 employees. Currently EPM had more than 200 employees and proudly to be among the top 5 chicken suppliers in the mid-tier producers in Malaysia.
In the early 2000, the demand of chicken was increase in the giant superstore throughout the country. Demand also spread to institutional retailing, a different market segment such as hospitals, hotels, universities and collages.

Therefore the company was able to maintain its operations and started to make profits in the poultry and meat industry.
EPM has advantage in running the business because Malaysia was the one of the world’s highest rate consumption for chicken meat. The domestic market was further intensified by the popular home-grown fast food chains and quick service restaurants. Malaysia also had a track record as an exporter of poultry which seem to be increase as the government plan to support large-scale processing project in East Coast Economic Region (ECER).
In year 2008, the company faced operational crisis due to the increasing cost of chicken feed almost 61.5%. Because of that it leads to increase cost of production by 56.5%. The company also faced the problems of low operating cash, continues supplies the product to the customer that reach the credit limit and lack of adequate internal control system on sale and collection process.

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