Case Study Assignment (Due 31 December 2021)

Read carefully and understand the scenario. Using a sheet in Page 3, answer the questions according to steps in decision making process. Best wishes!!

AFS is a travelling agent. When the pandemic of Covid19 started early last year and the Movement Control Order (MCO) was implemented, the company needed to diversify its services in order to survive. There are three directors in company with one of them hold the biggest share. The directors of the company have tried several ways to keep the company running by changing their business to food industry and also to apparel industry. The food industry was doing well, however; due to the wrong decision made, the manufacturing of this industry needed to halt due too many hassle and unsolved issue. The directors were always in disagreement. Finally, with the help of a previous consultant that AFS joined with, AFS then embark with an Apparel BST company which have promised AFS a 10% commission or profit for every sale that AFS made.

BST Apparel is a garments company that offer all kind of clothes to mostly younger generations with a reasonable price and fined material. AFS was offered to join BST as one of marketing agents for their company. BST has more than 50 marketing agents. BST was doing well in year 2020 which they had made their revenue increase upto RM200 million. Previously, BST was small micro company running in the rural area;however, they have managed to establish themselves in several regions. Now, BST has established their ordering and payment systems through their marketing agents. As part of the commission given, these marketing agents have to recruit as many potential sub-agents and customers as possible to buy through the system.

Being one of the marketing agents, part of the task given are: AFS need to market BTS products by establishing their own videos and infographics by using images offered by BTS. They need to come out with creative ideas to make sure their customers and potential customers have an eye to the products. Apart of that, the AFS directors, particularly the main director, too need to give talks and presentations and motivate some of the regular customers who want to be sub-agent to earn extra income for their sales. During a year, AFS has proved that it has more than 7,000 sub- agents and almost 20,000 customers and has managed to secured more than RM2 million in sale. However, due to minimal commission from BST, AFS is running short of cash due to its operational cost. They have ten staff including them and their operation costs is almost RM40,000 a month. AFS has been granted few loans from the government and still running the business, surviving with some panic attacks.

The government has started to open the borders now and some travelling are allowed. Previous customers, who supposed to fly with AFS last year to some other countries but failed to do so because of the pandemic and MCO, have started to ask when they can fly or whether they can get their money refund. AFS has backlogged of almost RM 1 million with previous travelling customers due to all money has been dumped into airline ticketing and accommodations. All these situations have made the directors headed and uneasy. Nevertheless, the consultant who introduced AFS to BTS has made promises that AFS will survive and fly high due to the performance that AFS showed for the last one year. However, AFS needs to pay consultation fee of almost RM7,000 a month. All of AFS close friends and even BTS owner also put trust on AFS

and ensure that AFS will make it and will be over with its tough time. AFS needs to be with the consultant, said the owner of BTS. It is just a matter of time.

Although a lot of promising have been given to AFS, AFS is still unstable. AFS has done all they can do in and out daily. It has tried to apply all kind of loans offered by the government for small businesses. AFSs running costs are overwhelming, AFS has to invest more in marketing in order to get more customers. Traditional and social medias seem promising but it is not cheap. The financial director is swallowing his saliva slowly every time the management make decision to invest in more marketing campaign. And yet, AFS also need to pay for the loan that has been granted to them.

Times are running slow for AFS company right now. The solution for pandemic of Covid19 has not been promising yet, rising costs of materials and wages and marketing, and the profit share at an all-time is low. Because of all these unfortunate situations, AFS will need to make some important decisions on how to keep the company sustain, whether to let some of the employees of or find other alternatives. AFS Human Resource senior manager has identified some of the employees to let go. However, almost all of the employees are in need of money. Most of them comes from unfortunate family with parents sickness, as head of the family and also some are the main provider for the family.

Name Date

CASE STUDY WORKSHEET

Use this worksheet to evaluate the case study.

1. Identify the problem.

2. What are the AFSs choices? a.

b.

c.

d.

e.

3. Gather information: What information should the person gather that would be helpful to know before making a decision?

a.

b.

c.

d.

4. Consider the outcome. What would be the results of the decision? a.

b.

c.

d.

e

5. Make the decision. What should the person do?

6. Evaluate your decision. Why do you think this is the best decision possible?