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Chicken Run Case Study

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In year 1998, Excel Poultry & Meat Sdn Bhd (EPM) was established and the setup was a SME located in Kluang, Johor, operating business of chicken farming and supplying chicken throughout Malaysia. This subsidiary of PCK holding since 2005 was managed by Encik Selamat, a Certified Public Accountant (CPA). It became one of top 5 chicken suppliers within mid-tier producers in the country due to increasing demand in year 2000 from superstores and fast-food chains, high chicken consumption by Malaysian, and expansion of chicken industry. However, in 2008, cost of poultry production increased. EPM operating cash was low and severe, that it “had puzzled Encik Selamat”. Other problems were also identified in the management of EPM.
The other issue that also important in this case study whereas the Credit Controller Ms Choy discovered from the aging analysis of customers that the credit limit of one of EPM major customers, Cold Gold Sdn Bhd had gone into its level and yet the marketing department still continued to supply products to the company. Ms Choy had discussed about Cold Gold Sdn Bhd with Puan Azura and also Puan Azura considered that it was timely to send reminders to customers with outstanding balances in respect of their accounts. Ms Choy has the responsibility to make the right decision regarding unethical conduct of Encik Selamat, she approached one of the company directors about Encik Selamat. The director was reluctant to take action against Encik Selamat since he was very well connected and had good reputation at the previous company.
What should Ms. Choy do? Therefore, we will see into the case study and try to figure out the issues and recommendation to solve the

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