Escolar Documentos
Profissional Documentos
Cultura Documentos
MANAGERS
Trimester 1, 2014/2015
Student Name
Fausia Dhea Marvitaayu Syamsir
Jasmeen Chan
Lai Su Yi
Lee Min Wei
Siah Soon Heng
I hereby declare that all group members names are correctly included in the above section. I
hold a copy of this assignment which I can produce if the original is lost or damaged. I certify
that no part of this assignment has been copied from any other students work or from any
other source except where due acknowledgement is made in the assignment.
: _____________________________
: _____________________________
: _____________________________
Date
: ____________________________
CONTENTS
1. Introduction............................................................................
.....................................3
a. Background
of
the
company...................................................................................3
b. Organization
structure.........................................................................................
...4
2. Procedure
to
set
up
an
account...................................................................................
.5
a. Company
registration.....................................................................................
.........5
b. Documentation
preparation....................................................................................
6
c. Legal
procedure........................................................................................
...............6
d. Software/Hardware
needed....................................................................................7
3. Accounting
process...................................................................................
....................8
a. Financing
activities.........................................................................................
.........9
b. Investing
activities.........................................................................................
..........9
c. Operating
activities.........................................................................................
......10
4. Accounting
information.............................................................................
.................11
a. Characteristics
of
information............................................................11
b. Users
of
accounting
accounting
information...........................................................................13
c. Decisions
making............................................................................................
.......13
5. Challenges..............................................................................
....................................14
6. Recommendations...................................................................
...................................16
7. Conclusions.............................................................................
...................................18
8. References..............................................................................
....................................19
9. Appendix.................................................................................
...................................21
Introduction
a. Background of The Company
According to the Assistant of Ayamas Manager Trainee, he has given
us few of information about The Story of Ayamas. The information that he
shown which is the Ayamas Conveniese Stock was introduced under the
flagship of KFC Holding (Malaysia) Bhd , the franchise holder for KFC
Family Restaurants in year 1988. The first in Malaysia to sell branded fresh
chicken and chicken product, Ayamas now offers the No.1 branded chicken
range in Malaysia.
Ayamas have established a popular reputation among Malaysians
for the high quality of our products. Furthermore, the business keeps
growing to include an ever-increasing range of product in every year.
Behind Ayamas, there is a support of a huge network. With its own
breeder or hatchery farm, broiler farm, feed mill plant, processing plant
retail chain and restaurant chain. Ayamas Company has to ensure strict
standards of quality every step of the way. Providing customers with
Ayamas chickens of the finest quality and freshness: with strict adherence
to the Jabatan Haiwan Malaysia (JBH) and Jabatan Kemajuan Islam
Malaysia (JAKIM), all Ayamas products are 100% halal.
Ayamas is also the main supplier of chicken product to fast food
chains in Malaysia like KFC and Pizza Hut. The company had also sales
network extends to supermarket and hypermarket shelves all over
Malaysia.
b. Organizational Structure
Ayamas Career Advancement Program Retail and Restaurant
Operations
Restaurant Manager
Mr Sadul B. Ibrahim
Staf
this
Ayamas
company
secretary
completes
the
company
b. Documentation preparation
There are several basic documentation required for Registrar of
Franchise (ROF) application. The intention should include the following
information in the letter such as date of incorporation, commencement of
business, Ayamas Shoppe Sdn Bhd concept and background, franchise
experience, and the identity of proposed Malaysia master franchisee. It
also required certified true copy of incorporation from the relevant
agencies in the country of origin and the proof of trademark or intellectual
property mark registration. The company annual report and brochure with
photograph of the outlets is very vital and need to submit it (Tompang,
personal communication, July 16, 2014).
c. Legal procedure
As a report by the Assistant of Ayamas manager trainee, Ayamas
Shoope Sdn Bhd registers their business and obtain the necessary
licenses and permits. The business is registered under the Registration of
Business Act 1956 at the Commission of Companies Malaysia (CCM). It is
partnership with KFC holdings. Partnership is the relation which subsists
between persons carrying on business in common with a view of profit
(The National Archive, n. d). Partnership doesnt pay tax on its income but
share any profits or losses to the individual partners. Partnership must file
a tax return (Form 1065) that reports its income and loss to the IRS. In
addition, each partner reports share of income and loss on schedule K-1 of
form 1065. General partners are personally liable for the partnerships
debts and obligation. Each general partner can act on behalf of the
partners but need the partnership agreement permits. Ayamas company
disclose everything to their lawyer about the planning of the business. The
7
company also discuss with their lawyer the details needed for any
partnership
contacts,
employee
handbooks,
employee
consent
or
business
intelligence
(BI)
solution
that
delivers
corporate
Accounting Process
Accounting is a technical business function that responsible for
recording, reporting and analyzing financial information. The purpose of
accounting is recording all the transaction accurately into Books of
Accounts. The accounting process also commonly referred to accounting
cycle, is the process that begins when the transaction takes place and
ends when the transaction is recorded in the books of accounts. It includes
a several steps that are used to analyze and record the business
transactions for a particular period. First, identifying and analyzing
business transactions. Second, make journal entries. Third, post to ledger
accounts. Fourth, adjusted the trial balance. Fifth, make an adjusting
entry. Sixth, adjusted trial balance. Seventh, preparing the financial
statements. Next, closing the books or accounts. Last, post-closing trial
balance (Deeptee, 2013).
At the seventh step, preparing the financial statements, the
financial statements are the end-products of an accounting system. The
financial
statements
include
Statement
of
Comprehensive
Income,
10
For this company, Ayamas Shoppe Sdn Bhd is involve more in the
cash outflows for a business. According to Mr Mohd Risham, he said that
the owners of the company use this amount of money or initial money do
the investment. He invested in the tangible assets. For example, cash
payment to purchase tangible assets such as building, equipment, land or
property and so on. He also involved in the purchasing motor vehicles in
order to deliver the products to the customer. Besides, he has invested in
the intangible assets such as copyright. The owners of the company also
purchase assets to replace the old and obsolete assets. For instance,
chair, desk and motor vehicles. In addition, he also purchases of other
investments such as share. He has done the cash payments to purchase
of shares of other companies.
Moreover, Mr Mohd Risham has mentioned that the owners also
involved in the cash inflows from investing activities. The cash inflows
from investing activities are cash receipts from sales of tangible and
intangible assets such as copyrights, disposal of property and equipment,
and cash receipts from sale of shares of other companies.
c. Operating Activities Operation (Revenue, Expenses etc)
Operating activities is day-to-day business activities of a company
which determine the companys net income or loss (Simplestudies, 2012).
The company starts to sell merchandise or services and make payments
for rent, suppliers and all of the company was established would be
classified as operating activities.
As a report by this company, Mr Mohd Risham states that the
yearly budget for this year is RM259, 702. The owners of the Ayamas
Shoppe Sdn Bhd, Mr Sadul operates the business by allocating some of
this money to pay for employee salary. They have 5 staffs and 2 managers
in the company. Furthermore, Mr Sadul also allocates the money to make
payments for suppliers, government taxes, insurance premiums, rental,
utilities and all of other costs of doing business. Mr Sadul also uses some
of the money to pay for debt monthly rather than pay for debt fully. In
11
4. Accounting Information
Accounting information is a piece of financial data indicating an
organization's
resources,
debts, revenues
or
expenses.
Accounting
understand
ability,
relevance,
consistency,
comparability,
and
Understandability
12
iii.
Comparability
Accounting information and financial statements should be equipped
in such a way as to assist assessment of entity information during
time. Comparatives results when different enterprises apply the
same accounting management to similar occurence. Obedience with
International Accounting Standards helps to increasecomparability.
The accounting information in Ayamas Shoppe Sdn Bhd is in the
comparative form that implies the ability for users to be able to
13
Reliability
Reliability is the quality of information that authorized users to
depend on it with collateral. This means it is examined, has faithful
presentment, and is reasonably free of errors and bias. The
accounting information in Ayamas Shoppe Sdn Bhd financial
statements is reliable and that is presented in truthful and accurate
matter because they have been prepared on accounting principles
and bases consistent with those previously adopted in the
preparation of audited financial statement (Tompang, personal
communication, July 16, 2014).
information
to
the
external
users
(Tompang,
personal
options
and
making
determinations
about
specific
Challenges
There are sort of challenges that have met by the Ayamas Shoppe
Sdn Bhd since they have established. From the interview conducted, the
challenges that Ayamas encountered is the halal and non-halal issue
(Tompang, personal communication, July 16, 2014). As the year before,
Ayamas collaborated with Ayam A1 Company. In order to avoid
15
unnecessary conflict between the two companies, the food that Ayamas
and Ayam A1 provided is the halal and non-halal poultry products
respectively since the issue happened. This challenge has caused these
two companies to split and run their business operation in their own
system.
The other challenges that Ayamas Shoppe Sdn Bhd has overcame
is the inventory shortage during the special day from their customer
(Tompang, personal communication, July 16, 2014). When the company
receives orders from the catering service order, the company might face
the problem when the supply of stock is not in time and limited inventory.
The ways to overcome this challenge is that they find other nearby outlets
which in the same area to supply more inventories in order to solve the
problem. Hence, there is adequate inventory to be sold to their customers.
Ayamas Shoppe Sdn Bhd also has encountered their challenges
when come to find the poultry manufacturing industry suiting their
business
know-how
and
business
format
(Tompang,
personal
the business of Ayamas has dropped and the profit is relatively reduced as
compared to previous days. To overcome this, the company has found
their way to promote the special offering and promotion to customer by
distributing flyers, publicize the poster at anywhere else. Besides, the
carnival and promotional events like Mega Jualan Hebat will be held
where offering the discount price and product sales in whole Malaysia for
that product.
The Ayamas also found it challenging to compete with their rivalry.
Every kind of businesses must have their own competitors. In order to
capture the target market and potential customer, the key elements to
consider is the strength and location of the company (Roger, 2000). From
the interview, Mr Mohd Risham stated that their competitors not only are
fast food restaurant such as Pizzahut but also the slow food restaurant as
they also have the similar product type to be sold such as Mori and
Windmill Station. The other factors cause this problem to be happening is
also include the location of a business. The location of the Ayamas is quite
far from the residential area. Despite these drawbacks, Ayamas has
focused on product differentiation as they sell the fast food packages,
frozen food is distinctive to the usual restaurant do. Ayamas implement a
Fullmoon Set that included a different bundle of food in each set to
promote their set meal (shown in Figure 1.2 in Appendices). The Ayamas
outlets also provide air-conditional space to offer their customers have
dine-in service and experience once they have done purchasing.
On the interviewers side, the challenges met are the time conflict
between the group members. The interview has been conducted
successfully in spite of the difference of schedule from different members
have.
17
6. Recommendations
Ayamas Shoppe Sdn Bhd is more suitable to get the short-term
loan. Short-term loan have a maturity of one year or less. They should be
repaying to the lender within one year (Peavler, 2014). Short-term loan
more frequently used for working capital requirements or day-to-day
operations of the business. For example, Mr Sadul, the owners of the
company make payments for employee salaries, suppliers, government
taxes, rental and etc. There are 4 main types of short-term debt which are
overdraft, letter of credit, short-term loan and bill of exchange. An
overdraft is an extended of credit from a lending institution. When a
company has an overdraft agreement with a bank, it can draw down or
transmit cash from its account beyond the available balance. Moreover, a
letter of credit is a letter from bank guaranteeing a buyers payment to a
seller, that a seller will receive the amount in the credit period. Next, a
short-term loan is a loan that must be repaid within a year with interest.
Furthermore, a bill of exchange is a document that binds one party to pay
a fixed sum of money to another party at a particular future date (Mitchell,
2013).
There
have a
several
advantages
of
short-term
loan.
The
software
consists
of
multiple
application
such
as
customer
and
reduce
software
expenses.
ERP
systems
have
more
19
7. Conclusions
In conclusion, this assignment has given students chance to
understand and analyze the procedure of business setup and the
challenges they overcome. For Ayamas Shoppe Sdn Bhd, they are
considered as a stable accounting company as they maintain a wellgrowth business though they have been challenged by the rivalry. From
this assignment experience, students have acquired the knowledge of
maintain a good accounting process in monitor well in finance, investment
and operation besides the knowledge from chance to conduct interview. In
brief, this assignment has benefit students to be prepared on their
accounting knowledge in their career future.
20
8. References
A, D. (2013, August 9). Accounting Process. In Buzzle. Retrieved July 4,
2014, from http://www.buzzle.com/articles/accounting-process.html
Basu, C. (2014). Examples of Financing Activities. In Small Business by
Demand Media.
http://smallbusiness.chron.com/examples-financing- activities37342.html
Bragg, S. (2012, December 30). What are the characteristics of useful
accounting information? In Accounting Tool. Retrieved August 1, 2014,
from
http://www.accountingtools.com/questions-and-answers/what-
are-the-
characteristics-of- useful-accounting-informatio.html
http://accountingexplained.com/financial/statements/cash-flowinvesting-activities
Mitchell, B. (2013, January 30). Short-term vs. Long-term Loans. In The
Small Business Fund
July 5,
2014, from
http://bizfinance.about.com/od/businessloans/qt/short-termbusiness-loans.htm
21
small-
2014, from
http://www.inc.com/articles/2000/01/14880.html
The National Archive. (n. d). Retrieved August 2, 2014, from HM Revenue
and Custom:
http://webarchive.nationalarchives.gov.uk/
+/http://www.hmrc.gov.uk/manuals/bim
manual/bim72505.htm
http://www.accountingverse.com/accounting-basics/users-offinancial-
statements.html
http://simplestudies.com/what-are-operating-activities-
in-
accounting.html
What is the difference between investing and financing activities?. (2012,
August 5). In
http://simplestudies.com/what-is-the-
difference-between-investing-
and-financing-activities.html
Zap. (n. d). Zap Business Intelligent. Retrieved August 2, 2014, from
http://www.zaptechnologyafrica.com/Products/ZapBusinessIntelligence.asp
x
22
9. Appendix
Figure 1.1 The
Fullmoon
Set
Gift Pack
that
presented
by
Ayamas
Figure
1.2
The
coupon
23
for
24