Golden Hope Plantations Berhad: which project to invest?

This is a case on capital budgeting project. Golden Hope Plantations Berhad (GHPB), was located at Menara PNB, Jalan Tun Razak, Kuala Lumpur, Malaysia and was listed on the first board of Bursa Saham Malaysia. GHPB was desirous to expand its operations using its available internal fund. The company...

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Main Authors: Senik, Rosmila, Mat Daud, Zaidi, Mohamed, Zainal Abidin, Zubir, Mohamad Shahnaz
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22759/1/Golden%20Hope%20Plantations%20Berhad%20which%20project%20to%20invest.pdf
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author Senik, Rosmila
Mat Daud, Zaidi
Mohamed, Zainal Abidin
Zubir, Mohamad Shahnaz
author_facet Senik, Rosmila
Mat Daud, Zaidi
Mohamed, Zainal Abidin
Zubir, Mohamad Shahnaz
author_sort Senik, Rosmila
collection UPM
description This is a case on capital budgeting project. Golden Hope Plantations Berhad (GHPB), was located at Menara PNB, Jalan Tun Razak, Kuala Lumpur, Malaysia and was listed on the first board of Bursa Saham Malaysia. GHPB was desirous to expand its operations using its available internal fund. The company had two available options for its business expansions; purchase of the last piece of freehold land in Shah Alam, Malaysia suitable for property development and the other was purchase of a refinery facility in the Netherlands. Both options presented different opportunities that brought favorable revenue to the company; however both options required substantial amount of internal cash for their acquisition. The Board of Director (BOD) needed to consider both options in order to choose the one that would bring the best return to the company and enhance the shareholder’s value. This case demonstrates how Strength, Weakness, Opportunity and Threat (SWOT) analysis and financial analysis can help management to select the best investment alternative.
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spelling upm.eprints-227592016-03-30T05:00:36Z http://psasir.upm.edu.my/id/eprint/22759/ Golden Hope Plantations Berhad: which project to invest? Senik, Rosmila Mat Daud, Zaidi Mohamed, Zainal Abidin Zubir, Mohamad Shahnaz This is a case on capital budgeting project. Golden Hope Plantations Berhad (GHPB), was located at Menara PNB, Jalan Tun Razak, Kuala Lumpur, Malaysia and was listed on the first board of Bursa Saham Malaysia. GHPB was desirous to expand its operations using its available internal fund. The company had two available options for its business expansions; purchase of the last piece of freehold land in Shah Alam, Malaysia suitable for property development and the other was purchase of a refinery facility in the Netherlands. Both options presented different opportunities that brought favorable revenue to the company; however both options required substantial amount of internal cash for their acquisition. The Board of Director (BOD) needed to consider both options in order to choose the one that would bring the best return to the company and enhance the shareholder’s value. This case demonstrates how Strength, Weakness, Opportunity and Threat (SWOT) analysis and financial analysis can help management to select the best investment alternative. Universiti Putra Malaysia Press 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22759/1/Golden%20Hope%20Plantations%20Berhad%20which%20project%20to%20invest.pdf Senik, Rosmila and Mat Daud, Zaidi and Mohamed, Zainal Abidin and Zubir, Mohamad Shahnaz (2011) Golden Hope Plantations Berhad: which project to invest? Asian Journal of Case Research, 4 (1). pp. 1-18. ISSN 1985-4579 http://ajcr.putrabusinessschool.edu.my/?mod=archive&id=26
spellingShingle Senik, Rosmila
Mat Daud, Zaidi
Mohamed, Zainal Abidin
Zubir, Mohamad Shahnaz
Golden Hope Plantations Berhad: which project to invest?
title Golden Hope Plantations Berhad: which project to invest?
title_full Golden Hope Plantations Berhad: which project to invest?
title_fullStr Golden Hope Plantations Berhad: which project to invest?
title_full_unstemmed Golden Hope Plantations Berhad: which project to invest?
title_short Golden Hope Plantations Berhad: which project to invest?
title_sort golden hope plantations berhad which project to invest
url http://psasir.upm.edu.my/id/eprint/22759/1/Golden%20Hope%20Plantations%20Berhad%20which%20project%20to%20invest.pdf
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