Marine Corp
SUMMARY OF THE CASE
This case discussed on the issue of choosing the most suitable performance measurement for MarineCorp Sdn. Bhd. and SURIA group of companies. MarineCorp is a wholly-owned subsidiary of SURIA group of companies. MarineCorp was the maritime solutions provider for SURIA; it regulates and enforces the Group’s policy on maritime activities, especially the vessel inspection and vetting on the vessels under SURIA. The company has two subsidiaries; the first one is Green Port Sdn. Bhd. which ran marine facilities and secondly is Sungai Emas Port Sdn. Bhd. which ran port facilities. In the case, Chief Financial Officer (CFO) of the company need to decide whether to pursue the old performance measurement or follows the order of the Chairman of SURIA group of companies.
PROTAGONIST
The protagonist of this case is Hafiz Hashim who is the Chief Financial Officer (CFO) of MarineCorp Sdn. Bhd. He was appointed as CFO of MarineCorp since 2007. He was responsible for the financial management of MarineCorp and its two wholly-owned subsidiaries; Green Port Sdn. Bhd. and Sungai Emas Port Sdn. Bhd.
PROBLEMS
The first problem is the company and its two subsidiaries have difficulties in attracting and retaining marine professionals. This is because of the increasing competitiveness in the industry and its uncompetitive salary scale. Therefore, the company and its subsidiaries hired contract staffs to tackle this problem. However, this leads to increase in the manpower costs and preventing the company from expanding and exploiting new businesses. The second problem is the accounting treatment for dredging cost incurred by Green Port. The CFO, Hafiz Hashim had fully expensed the cost in the financial year it incurred. However, General Manager of the company, Anita Osman preferred the cost to be amortized in order to improve the profit of the subsidiary. The third problem is related to the management of cash in the MarineCorp. As the CFO of the
This case discussed on the issue of choosing the most suitable performance measurement for MarineCorp Sdn. Bhd. and SURIA group of companies. MarineCorp is a wholly-owned subsidiary of SURIA group of companies. MarineCorp was the maritime solutions provider for SURIA; it regulates and enforces the Group’s policy on maritime activities, especially the vessel inspection and vetting on the vessels under SURIA. The company has two subsidiaries; the first one is Green Port Sdn. Bhd. which ran marine facilities and secondly is Sungai Emas Port Sdn. Bhd. which ran port facilities. In the case, Chief Financial Officer (CFO) of the company need to decide whether to pursue the old performance measurement or follows the order of the Chairman of SURIA group of companies.
PROTAGONIST
The protagonist of this case is Hafiz Hashim who is the Chief Financial Officer (CFO) of MarineCorp Sdn. Bhd. He was appointed as CFO of MarineCorp since 2007. He was responsible for the financial management of MarineCorp and its two wholly-owned subsidiaries; Green Port Sdn. Bhd. and Sungai Emas Port Sdn. Bhd.
PROBLEMS
The first problem is the company and its two subsidiaries have difficulties in attracting and retaining marine professionals. This is because of the increasing competitiveness in the industry and its uncompetitive salary scale. Therefore, the company and its subsidiaries hired contract staffs to tackle this problem. However, this leads to increase in the manpower costs and preventing the company from expanding and exploiting new businesses. The second problem is the accounting treatment for dredging cost incurred by Green Port. The CFO, Hafiz Hashim had fully expensed the cost in the financial year it incurred. However, General Manager of the company, Anita Osman preferred the cost to be amortized in order to improve the profit of the subsidiary. The third problem is related to the management of cash in the MarineCorp. As the CFO of the