Mini Giant Sdn Bhd is a well-known and specialised in manufacturing of security alarm systems. The company
Question:
Mini Giant Sdn Bhd is a well-known and specialised in manufacturing of security alarm systems. The company possesses experience engineers and marketing team security alarm systems business. Many multinational companies engaged Mini Giant Sdn Bhd as the sole security alarm system provider. However, the Chief Operation Officer of the company observed that there is a serious decline in business recently and dissatisfied 2020 performance of the company. The Account Executive of Mini Giant Sdn Bhd is requested to present some of the extracted financial and non-financial data for the year ended 31 December 2020 as below:
Fixed assets-Machines RM2,000,000
Cash and Bank RM 15,000
Stocks RM 350,000
Trade Debtors RM 500,000
Trade Creditors RM 400,000
Other Creditors RM 250,000
Term Loan RM1,200,000
Turnover RM2,500,000
Cost of sales RM1,800,000
Net profit before interest RM 158,000
Interest on loan RM 180,000
Staff training expenses RM 20,000
Machine maintenance expenses RM 25,000
Compensation to customers RM 128,000
Number of staff 80
Number of customers 15,840
Staff turnover rate 20%
The production manager, Mr. SK reported that the production failed to manufacture sufficient products to meet the orders on time due to the frequent machines breakdown and insufficient workers.
The marketing manager, Mr. Boost informed the top management that there are two burglary lawsuit cases due to the malfunction of the security systems. Some of the customers unwilling to settle the payment because the company's technician did not solve security alarm systems defect problems.
Required:
- The Chief Operation Officer recommended to analyse, evaluate and manage the company operation based on Balanced Scorecard and reposition the company in order to regain customers’ trust. You are being appointed as the project manager to implement Balanced Scorecard and you need to conduct TOWS analysis on the company. Discuss the situations of the company based on Balanced Scorecard and recommend strategies to reposition the company based on TOWS analysis. Support your comments and recommendations with relevant ratios. Shows all workings.
- Discuss the potential challenges in implementing Balanced Scorecard in Mini Giant Sdn Bhd.
- Elaboration on the concept of and usefulness of Balanced Scorecard in Mini Giant Sdn Bhd - demonstrating that you fully understand the purpose of Balanced Scorecard.
- Research – the breath of additional research undertaken to support your argument in this assignment i.e. we are looking to see how well you can provide us with evidence based discussion rather than simply giving us your own opinions.
Managerial Decision Modeling with Spreadsheets
ISBN: 978-0136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair