Living by Numbers

Living By Numbers-Value Creation Or Profit? Case Summary This typesetters case basically explains astir(predicate) MarineCorp Sdn Bhd leads by Hafiz Hashim who has position as a Chief Financial Officer (CFO) in MarineCorp. It is also a subsidiary of SURIA. MarineCorp is a maritime solution supplier for its SURIA and have two subsidiaries which are Green Port Sdn Bhd and Sungai Emas Sdn Bhd. MarineCorp has their responsibility in manage and conducting both subsidiaries.The financial statements of the troika companies testament end by twelve months on 31st December 2009. The problems have arise in managing the three of the company in terms of Key Performance index (KPIs) that will used in the three of company as electric chair of SURIA wanted Value Based Management(VBM) to be used in itself and in three of the companies. Under VBM, executing of the company will be seen finished cognitive process evaluation and appraisal of employees while the value of the company will valued found on economic earnings.But, there is contradiction amid President of SURIA and CFO of MarineCorp, Hafiz Hashim since he thought that value company performance should be measured based on investment make by equity and debts holders. It means that they need to see investment based on expected return and cost of capital incurred by company. Next tidings is about dilemma faces by Hafiz from the problems arising. We found that there are three of dilemmas from discussion.Firstly, uncertainty in using economic earnings as essential by the Group or used profits as estimable by MarineCorp to report financial statements. Secondly, Hafiz also in dilemma when the chair asked him to ranked the three companies in terms of their performance and prepares suggestions on how to meliorate the performance of the company. Thirdly, Hafiz also pressured with General Manager of Green Port Sdn Bhd and MarineCorp about the issues of accounting in terms of maintenance costs, and the payments of div idends.The protagonist in this case is Hafiz Hashim because he is the person who is responsible in decision making for find out which performance value that could be used by the company. Furthermore, he should comply instruction of the president to use economic earnings to measure performance value of three companies. But, decision making make by Hafiz quite an different with the requirement asked by the president since he thinks the best way of life to evaluate performance value should linked with the investments expected return based on cost of capital