Living by Numbers

Living By Numbers-Value Creation Or Profit? Case Summary This discipline 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 oceanic solution provider 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 tierce companies will send away by twelve months on 31st December 2009. The problems have arise in managing the lead of the company in terms of Key Performance index number (KPIs) that will used in the three of company as President of SURIA wanted Value Based Management(VBM) to be used in itself and in three of the companies. Under VBM, slaying of the company will be seen through performance evaluation and appraisal of employees while the protect of the company will valued ground on eco nomic profits.But, there is contradiction between President of SURIA and CFO of MarineCorp, Hafiz Hashim since he thought that value company performance should be measured found on investment make by equity and debts holders. It means that they need to see investment based on expected return and cost of chief city incurred by company. Next discussion 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 required by the Group or used profits as practiced by MarineCorp to report financial statements. Secondly, Hafiz also in dilemma when the president asked him to ranked the three companies in terms of their performance and prepares suggestions on how to improve 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 dividends .The protagonist in this case is Hafiz Hashim because he is the person who is responsible in decision making for determining which performance value that could be used by the company. Furthermore, he should follow instruction of the president to use economic earnings to measure performance value of three companies. But, decision making make by Hafiz quite different with the requirement asked by the president since he thinks the best way to evaluate performance value should linked with the investments expected return based on cost of capital