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Robert Leung Case

Autor:   •  April 30, 2014  •  Essay  •  823 Words (4 Pages)  •  1,017 Views

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As the role of Robert Leung, he needs to request some additional items of information from Mat Jon in order to have a deep understanding about the business of Spetrol Station that owed by Mat Jon, so that he can make a good decision on whether buying the business. The first item that Robert Leung should request is financial statements which are from 4 or 5 years ago until now. Before buy over a business, the first thing needs to be considered is the profitability of the business. He will compare the prior financial statement and analyze the company performance in past few years in order to predict will the business brings profits and benefits to me in future. Besides that, he also need to check the accuracy and completeness of the company's account, like in this case, the bank account had already overdraft of RM21,019.42, while the overdraft facility is only can up to RM20,000, if Mat Jon does not deposit money to settle the overdraft, then Robert Leung will be the one need to settle the overdraft after he take over the business. Thus, he needs to ensure that the company's account is complete before he takes over the business.

As what I mentioned above, the potential profitability of the business will be the first thing that Robert Leung considered before he make decision of buying the business, so the second item that he should request from Mat Jon is the map of the Spetrol Station's area. Location plays as the most important role in determining the success of a petrol station. Robert Leung needs to know the traffic volume and traffic flow of location of Spetrol Station, and he also needs to know that can its geographic strengths make Spetrol station survive since it is sandwiched between Caltex and Petronas. If Spetrol Station located at a strategic location, it will increase Robert Leung's interest of buy over the business.

In addition, Robert Leung should also request the organization chart and employees' details from Mat Jon. He needs to evaluate the effectiveness of the organization chart of Spetrol Station to decide whether to remain the organization chart or apply a new effective organization chart. The employees' details also important for Robert Leung to know because Mat Jon may be hire some unqualified employees or assign the wrong job to wrong position. Robert Leung needs to have a plan on how to rectifying the organization if he want to take over the business.

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