Group members:  Chua Li Ying  Tan Zhi Jiun  Lim Fann Tyng  Cheong Wei Jian  Chan Lay Yong GROUP 2

RecruitmentLack of supervision, Over trusted on a single workerPoor inventory systemDiscrepant accountsUnknown loan transactionsInappropriate pricingCompetition

Recruitment - Simply hired Khawar without checking of his background - Over trusted others for the employee candidates Solution: Professional Shortlisting for Potential Candidates, Formal Interview, Appointment Letter  Sort through resumes and cover letters  Having a formal interview and make selection based on the knowledge, personality and professionalism of the potential hire  The appointment letter which employee has to comply with.

Lack of Supervision, Over Trusted on a Single Worker - Khawar is very clear that what time Mr.Bashir never visited the shop - Mr.Bashir trusted too much on Khawar -There is no segregation of work Solution: Regular supervision, Random Spot Check, CCTV Installation, Hire More Worker to Ensure Segregation of Duties  Visit the shop regularly and randomly conduct spot check  Implementation of CCTV to inspect his worker  Hire one more potential worker to ensure segregation of duties

Poor inventory system - Two tag system - Mismanaged the inventory by selling outfits sets separately Solution: Barcode System, Physical Count  Barcode is used for inventory management and sales tracking  Assist in customers relationship management  Track loyal customers and give discount to them  Physical count may avoids discrepancies

discrepant accounts - Physical inventory items did not match the records - Only check for the hot-selling items Solution : Hire In-House Bookkeeper / Outsource Accounting Services  Hire an expert bookkeeper  Outsourcing accounting services to a professional team  Save time and cost

unknown loan transactions - Bought family clothes from neighbouring shops on company’s account - Loaned money from them - No any authorization rules being applied in purchasing the company inventory Solution : Authorisation of Inventory Purchase and Loan Approval Statements  Impose clear and fair rules  Prohibited worker to make loan or purchase from neighbouring shops without his authorisation or approval statements

inappropriate pricing - Does not price his products correctly - Simply doubled up the price or just follow others suggestions Solution : Strategy Development to Achieve Appropriate Pricing  Has to know his profit margins and price accordingly  Alternative pricing strategies – competition pricing, bundle pricing strategies, & psychological pricing strategies.  Understand his target market by undertake market research.

competition - Faced direct competitors in the mall - Loyal customers might drove away since the shop does not operate for one week after this incident Solution : Promotions & Improvements in Quality and Services  Attract customers by having promotions  Be distinctive and having competitive advantage  Offering a superior quality in his products and an unforgettable customer service