Transcript ALDI-NAAS LAVA TECHNOLOGY SDN. BHD.

ALDI-NAAS LAVA TECHNOLOGY
SDN. BHD.
Accountant in Business: Case Study
Done By:
Elvis Ng (09B4002)
Robin Tsen (09B4016)
Salyani Takdir (09B4060)
Michelle Goh (09B4071)
Sung Hui Yee (09B4104)
Content









A brief description of the company profile.
Organizational design of the company
Management and administration
Human Resources
Finance
Accounting
Marketing
Product and Branding
CSR (Social Responsibility)
The Company Profile
 This company is an Information Technology
(IT) company
 Newly established in 2008
 Location: Batu Bersurat.
 A home office
 Aims: Basically make money from
government initiatives to spend on IT
infrastructure.
The Company Profile
 Main principles activities(Services provided):
 Systems integration
 Consultant
 Outsourcing
 Infrastructure
 Server technology
 Their suppliers:
 The sub-contractors
 Skilled and professionals technician
 Usual customers:
 Government: Ministry of religious affairs
 Bank: BIBD
ORGANIZATIONAL
DESIGN
What is organizational
structure and design?
 Organizational structure describes the
organization’s framework as expressed by
its degree of complexity, formalization and
centralization.
 Organizational design concerns about the
construction or changing of an
organization’s structure.
Organizing Process
 Division Of Labor – determining work
activities and dividing up tasks
 Departmentalization – grouping jobs and
employees
 Delegation – assigning authority and
responsibilities
Division Of Labor
Departmentalization
Matrix Structures
Team Structures
Delegation
Organizational Structure –
Aldi-Naas Lava Technology
MD - CEO
Operations
Finance
Sales
Division of Labor - Average
 Employees division of labor are average.
 The greatest economies of scale obtained.
 Employees are more consistent and
effective.
Departmentalization –
Functional
 Expertise is pooled.
 It avoids duplication.
 It facilitates the recruitment, management
and development of functional specialists.
Future Problems
 Organizational structure does not fit an
organization all the time.
 Every organizational structure possesses its
own disadvantages.
 There are no one right organizational
structure, managers need to apply what is
best from the context of their own
workplace.
Design
Strengths
When and Where to Use
Functional
Economies through
specialization
In single-product or singleservice organizations
Divisional
High accountability for
results
In large organizations; in
multiple-products or multiple
market organizations
Matrix
Economies through
specialization and
accountability for
product results
In organizations with multiple
products or programs that rely
on functional expertise
Network
Speed, flexibility,
economy
In industrial firms; during
formative years of
development; when many
reliable suppliers are available;
when low cost foreign is
available
Committee
Flexibility
In organizations with task that
require expertise that crosses
functional lines
MANAGEMENT AND
ADMINISTRATION
What is Management and
Administration?
 Management is the process of guiding the
development, maintenance, and allocation
of resources to attain organizational goals.
 Administration consists of the
performance or management of business
operations and thus the making or
implementing of major decisions.
Planning
Organizing
Leading
Controlling
Achievement of
organizational
mission and
objectives.
Function of Management
 CEO - Engages potential customers and source
for businesses, chart a 3 year plan for the
company and also make sure the company is in a
healthy state always.
 Operations manager - Delivers projects timely
and plan manpower and budgeting for the
projects.
 Sales manager - Deals with customers frequently
and source for business.
Aldi-Naas Own Management
Process
 They have plans on their projects 6 months to 1 year
ahead.
 When a project is confirmed, they organize relevant
workers on their task and job.
 There are always people to lead them should they face
any problems with their project.
 Each employees will be asked to provide a job task
sheet every week which act as a control process.
 They also have their own Software to improve
management functions.
Future Problems
 When expansion of the company occurs, the
employees get harder attention from higher authority.
 They are no real managers in the company which
makes it harder for the company to know how to
manage properly on the management process.
 As there are no right managers in place to handle
management process. Those acting as managers will
have problem managing their own works and
management functions.
Solutions
 At least one manager from the business
background study must be appointed to advice on
the company overall operations.
 Communication among employees and those
with higher authority should always be informal.
 Those acting as managers can do self study in
Business or do some short courses in Business
studies.
HUMAN RESOURCES
Human Resources
 Human Resource is the department or support
systems responsible for personnel sourcing and hiring,
applicant tracking, skills development and tracking.
 The company’s Human resources is combine with
Finance and Accounting department
 It has 10 employees
 Hire people based on a project basis.
 The staffs are place according with their specialties
 Most of the employees usually being outsource at
client’s office
Human Resources
Physical activity:

In charge of medical leave and annual leave

Assign staff on different project

Calculation of the salaries payment (& Bonus)

Record all the above physical activities
How the amount of salaries being calculated?

Education level

Experiences

The job task

Rewards given based on job performance
Human Resources
 PROBLEMS?
 Not enough man power and skilled labour to do the
job.
 Difficulty of finding skilled worker from overseas.
 The high cost on hire overseas expertise
 SOLUTION
 Provide training to the locals
 Provide opportunities for fresh graduates
FINANCE
Finance
Finance is about how businesses raise, spend and
invest capital; and how individuals and firms allocate their
resources ( how the funds are being used properly).
 The company obtain funds from:
 Directors come out $10,000 each, in total $40,000
 Financial Problems that the company face:
 Difficulties in collecting debts from customers (since
customers are allowed 30 days of credit terms)
 High expenses
 Undercapitalization (when the company is in need of
money)
Solutions
 To overcome credit terms, the company tries to manage the
cash flow by all means. Other possible ways to solve the
problems would be by:
 Offering prepayment specials.
 Increasing interest charges on late payments .
 Offering discount so that the customers pay earlier.
 Allow the customers to pay in instalments.
 If the company is still not able to collect the money, they
can take actions like:
 Send a letter asking for settlement of debt. If not
effective, send a second or third letter
 Using legal actions.
Finance
Expenses incurred in the company:
 The company spends the most in paying salaries
every month. Each month, the total overheads is
around $20,000 which is a very high expenses
incurred by a small company.
Solution
To overcome high expenses, they can:
 review monthly expenses.
 purchase only at reasonable prices (when it is
needed).
 provide each budget for each project.
Solution
To overcome undercapitalization, the company can
choose to borrow from relatives. Options that are also
be considered would be:
1.
having proactive planning to help solve the
problem.
2.
seek for potential investors (not only focus on
capital, but strategy).
3.
get a bank loan.
4.
raise prices (charges) for services.
ACCOUNTING
Accounting
• Accounting is a process of recording,
summarizing, reporting, and analyzing the
financial transactions.
• The accounting software that the company used is
Peach Tree accounting system.
• This accounting software can allow users add
attachments including attaching spreadsheets,
photographs and scanned documents.
• It enters and records all the invoices since users
can scan in bills, receipts, invoices, and other
documents to create a paperless accounting
system.
The company use the accounts to make decisions like:
1. Whether to accept small project or not.
Company Turnover
• Company turnover has increased each year. The
company make around 20% profits from their sales.
MARKETING
Marketing
 Marketing is the process of providing the right services or
goods to the right consumers using certain promotional
techniques.
 The company used a method of pricing which is higher at
first but then it is still negotiable.
 The company meet with customers a lot to provide
extensive customer value and satisfaction.
 Currently, the company has a website for them to market
their products locally but unfortunately, the website is under
revamp now.
Marketing
 The company believes relationship is a very
important marketing tool in Brunei.
 Target market: Government, offices, schools &
banks.
 This company has achieved cost competitive
advantage, product/service differentiation
competitive advantages and niche competitive
advantages.
 Other marketing strategy used: Direct calling,
internet, provide entertainment to customers
when needed.
Problems
 Other competing IT companies.
 Lack of public awareness.
 Limited target market.
 The website is still under revamp until today.
 Planning new projects even if it’s not accepted.
Solutions
 The company should maintain its marketing
relationship for competition advantage.
 The company should revamp their website.
 The company should also try a different way of
marketing perhaps like advertising.
PRODUCT AND BRANDING
Product and Branding
 Product is any goods or services that creates value for the
customer.
 The product that the company offer is document management
products, E-learning and school management system.
 Mostly corporate companies will be their targeted consumers
as they provide technical services to the programs they
installed.
 For example, a bank installing an accounting and payroll
program.
 The most demanded software is Website Builders, E-Learning
and school management.
 No complaints from customers.
 No copyright issues.
Problems
 Not everyone can afford the services except
government and private businesses.
 The product life cycle will be long as the
businesses only need the services once awhile.
 Time-consuming.
 There is no room for mistakes.
Solutions
 Keep a good relationship with the consumers.
 If errors do occur after installation, provide
troubleshoot for free.
 For the consumers who make bulk purchases,
provide discounts.
 Hired more technical and experienced IT experts
for the installation.
CORPORATE SOCIAL
RESPONSIBILITIES
CSR (Social Responsibility)
Social responsibility is the concern of businesses for the
welfare of society as a whole; consists of obligations beyond
those required by law or contracts.


Not the first priority for SME.
Reasons?
 Awareness levels are likely to be low, most SMEs are
more concerned with day to day survival than concepts like
CSR.


SMEs are being socially responsible by supporting the
local economy and community.
CSR (Social Responsibility)
This is done by:
 Being profitable and successful companies
 Employing people


The company recognises the importance of other
responsibilities; to customers and society.
CSR (Social Responsibility)
Opportunity cost of doing CSR:
The stakeholders will lose money by reducing the
dividend they earned.
 The employees will have less salary if wages were to
be reduced.
 Decreasing number of customers when prices
charged were to increase.

Disadvantages of CSR (Social
Responsibility)
Core challenges – Costs, Resources and Time



High cost of implementing CSR
Justification of allocation of time and resources beyond
the daily running.
Internal communications and training for employees on
CSR practices
Educating consumers on the impacts of their purchasing
decisions is difficult, and makes it less appealing for
SMEs to shift their products / services to being more
socially and environmentally responsible.

CSR (Social Responsibility)
If the company were to do CSR, some of the example should be:
Involvement in awards schemes for young people.
Measurement of key performance indicators and feedback to
staff, customers and suppliers.
Employing people from local community
Social events for staff.
Donation to employee during special occasion.
Creation of good work-life balance and family friendly
employment.
Main problems of the
company
 The company does not want to take the risk to expand the
business.
 The company only TARGETS Government, Banks,
Educational Institution and Offices but it does not target to
the public as a whole.
Thank You