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Finance Assignment Final
Finance Assignment Final
2. If the company has deficit budget, what is the impacts in term of financing
management? (2 points)
Consider that the company has hit a deficit budget, the impacts in term of financing
management would mean that the company will have a hard time to be able to
accomplish the objectives of the company, because financing management goalsl are
profit and shareholder’s maximitation, as well as maintaining the survival of the
company, by doing all means necessary. The company is inadequate in estimating
the requirements of funds, spending more on the first year starting up, deciding the
right capital structure to finances the overall company operations by using mix of debt
and equity, investing funds in bad investments, therefore unable to achieve maximum
profit and keeping the core value of the organisation.
In maintaining a business, there are a lot of ways needs to be taken into careful
considerations, espescially regarding budgeting. There are no definite answer as to
whether deficit budget is doing good or harmful to the company. We would say yes,
because we are only allowed to choose yes or no. For example, a company would set
its budget knowing that they may have to face deficit had it not that they do not make
the decision to spend the budget on something that will recouped that deficit in the
next year. For example, Xing Fu Tang Taiwan ordered XFT Master Franchisee in
Malaysia to invest RM 4.5 Million, to buy a pearl-moulding machine that creates a
strawberry heart-shaped boba pearls, and many lightning and equipments as per
standard set by XFT Taiwan to make sure that XFT Malaysia interior and exterior
matches the one in Taiwan itself, before they start the development. In regards to that,
XFT Malaysia franchises having to recouped budget deficit in the beginning of their
opening, but will get back the investments in a year or so.
Supervisor
General Manager
Management Team
Stewarding Kitchen Staffs/Chef (HR, Marketing,
Finance, IT)
4.What is the impact (positive or negative) of budget on the company due to Budget
2020.(3 points). Can be combination of positive and negative
The government provide RM 300 million to support bumi putera (Malaysian) which the
priority is given for those who selling the halal food/product. And 10 million fund is
provided by the government for the company to get consultation and halal certification
and also to develop a new halal product in Malaysia, which is will be a positive impact
to HARVEST restaurant sdn.bhd . Because it’s going to help in terms of developing
halal food since the vision and mission is to bring the halal food to nowdays trend in
our restaurant, so it would be so much related to the HARVEST restaurant.
(POSITIVE IMPACT)
*taken from Malaysia belanjawan strategic 2020, page 14, 15.point 50, 51.
There is 4 points for this budgeting and for example is the second point which is
mentioned:
From RM 445 million, 75 million is given to supporting the capacity of bumi
putera by SMEcorp by making program to increase the marketing, packaging,
and financial consultation.
Since the HARVEST Restaurant sdn bhd, is just a starting up restaurant, this point
from Malaysia budgeting 2020 would be such a positive impact because it’s going to
help to developing the product and service and management to be more better and
well prepared. And also its going to help the expansion of the restaurant such as
permission for the business and also the entrepreneur.(positive impact)
*took from Malaysia belanjawan strategic 2020. Page 16, point no: 57.
- Based on the strategic of Malaysian budgeting 2020, since January 2020 the subsidy
for the petrol is only given to the b40( lower income group) while before it, everyone
can enjoy the subsidy from the petrol price and they will float the price of the petrol
based on the market and the subsidy that only given for certain target of people (b40)
will be transferred straight to their bank account as the government mentioned RM 30
per month for those who owned a car and RM 12 per month for motorcycle.
This would be such a negative impact for the HARVEST restaurant sdn bhd. Because
as the petrol price is going up its going to raise the cost of production and also the cost
of goods along with it.(negative impact)
*taken from strategicmalaysian budgeting 2020. Page 47, point no, 159 article no 1.
5. Advise General Manager of the company to capitalize the positive impact of the
budget and minimize the negative impact from Budget 2020 (2 points of suggestions
for each positive or negative identified in Q4)
Based on the positive impact of the budget that given by the government we want to
advise the general manager to optimize and capitalize the budgeting that has given
which is the budget that targeted for those who selling the halal food/product, by follow
the program consultation about the halal product developing it and also use the budget
to make a free halal food certification and reduce the spending with this advantage.
- Another advice is to hire a qualified staff to work at the Harvest Restaurant while
using the advantage from the Malaysian budgeting 2020 about the program Malaysia
at work that will providing incentive Rm500 per month per Individual for 2 years for
bumi putera / Malaysian fresh graduated. It would attract the fresh graduated easily
with additional incentive from the government and it would be optimizing the positive
impact from the budget because we can hire people asily with a very good knowledge
from the education background and yet, still very excited to work as it’s their first or
beginning of their career.
-Our advice to minimize the negative impact of the budget is we can plan to do effective
cost for production based on the information about the subsidy that going to impact
the cost of goods and cost of production, we can do several things for example:
> Optimize the system of the storage for all the ingredients to reduce the cost of goods,
so we can reduce the outcome or the spending on the budget for transportation that
will be used to buy the ingredients. For example we can do such an expansion capacity
for the storages (walk in chiller and freezer) to keeping more stuff for buying it one
time in such a good amount.
For example