CASE STUDY

COMPETITION
YOUNG CEO CHALLENGE 2021
MODULE 1 - STRATEGIC CEO:
MAKING THE RIGHT CHOICE
TABLE OF CONTENTS

WHAT IS YCC? 1

OUR AIM 2

ORGANISING COMMITTEE 3

SPONSORS 6

YCC 2021 TIMELINE 8

CASE BRIEF 9

RUBRIC 16

RULES AND REGULATIONS 17

 WHAT IS YCC?

Young CEO Challenge is a business challenge conducted to expose

participants to a real life business world where they are in the eye of CEO
within the corporate world. This competition will challenge participants
with regards to three aspects;

Creative problem solving

Corporate governance
Business relations

This year will mark the third year of Young CEO Challenge. From the
participants' feedback that we’ve received, this competition does help
them a lot in giving more exposure.

1
OUR AIM

Young CEO Challenge 2021 aims to nourish participants with relevant

skills that a future CEO would required. We also hope students will
receive employment opportunities through this Young CEO Challenge
as well as make useful connections and gaining new skills.

Through Young CEO Challenge, we encourage students to gain

development skills such as;

Leadership skills
Sharpen their analytical skills
Increase presentation and communication skills to enhance their
marketability

This event does help in bridging the gap between participants and key
industry player. Since we have invited judges from few companies and
lecturers, participants would have the opportunity to showcase their
skills and being evaluated by the professionals.

2
ORGANISING COMMITTEE

NIK NADIA NIK AZHAR NUR AINI DERAMAN MOHD AMIRUL ASYRAF ADLEENA ANUAR
ADVISOR ADVISOR ADVISOR PROJECT DIRECTOR

NUR SABRINA HISHAM SITI NUR HUMAIRA MUHAMMAD FAIZ NUR DAYANA SYAHIRAH
JOINT PROJECT DEPUTY DIRECTOR SECRETARY TREASURER
DIRECTOR

REGISTRATION

FARAH MADIHAH MARYAM SULAIMAN NURUL SHURAYA

DIRECTOR EXECUTIVE EXECUTIVE

3
MULTIMEDIA

NAQIUDDIN AIMAN SYAHRONI BAKRI NUR SYUHADA NUR AFIQAH

DIRECTOR EXECUTIVE EXECUTIVE EXECUTIVE

PUBLIC RELATIONS

AMIRA BALQIS NORSHAZWANI SAIDI IRDINA HARISYIA NURUL HANNANI

DIRECTOR EXECUTIVE EXECUTIVE EXECUTIVE

NURATHILAH ZULKIFLI
EXECUTIVE

4
MODULE

NUR AMIRA HISHAM NURNAJWA FARHANA NURUL 'IZZATI NADZIRAH DIZULLHAYAH

DIRECTOR EXECUTIVE EXECUTIVE EXECUTIVE

PUTERA IMRAN FARHAH QISTINA MUHAMMAD ISRYAD SOLEHAH NASERI

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE

ZIKRY ADAMI MOHAMMAD IMRAN NUR IZZAH IRDINA NUR IRDINA SYASYA
EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE

5
SPONSORS

6
STRATEGIC PARTNER

PwC is one of the world's leading professional services firms with more than
250,000 people across 158 countries. They are committed to delivering
quality in assurance, tax, and advisory services. PwC's purpose is to build
trust in society and solve important problems.
Similarly in Malaysia, PwC employs more than 2,800 people in 7 locations (i.e.
Kuala Lumpur, Pulau Pinang, Ipoh, Melaka, Johor Bahru, Kuching, and
Labuan) who are dedicated to solving the complex problems businesses are
facing in today’s disruptive world.

Whether you’ve just graduated or have years of experience, this is a firm

where you can learn and grow, anytime and anywhere. The PwC experience
provides you with opportunities to work with various international clients,
and understand the businesses and how they operate, supported by your
colleagues within and outside the country. Be part of a larger team as we
work together, drawing on everyone's knowledge and skills to reimagine the
possible. Join PwC today for the experience that stays with you.

To explore a career at PwC Malaysia, visit them at:

https://www.pwc.com/my/en.html

GOLD SPONSORS

The exceptional EY experience. It's yours to build.

EY is a global leader in Assurance, Consulting, Strategy, Transaction and Tax

services. The insights and quality services we deliver help build trust and
confidence in the capital markets and in economies the world over. We
develop outstanding leaders who team to deliver on our promises to all of
our stakeholders. In doing so, we play a critical role in building a better
working world for our people, for our clients and for our communities.

To unlock your potential career opportunities and be part of the high

performing teams in EY, visit us at https://www.ey.com/en_my/careers.

Connect with us!

Instagram: @eymycareers
Facebook: EY Malaysia Careers
LinkedIn: EY Malaysia Careers

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YCC 2021 TIMELINE

SATURDAY (3 JULY)
STAGE 1:
MODULE 1: STRATEGIC CEO
Case study distributed via email

THURSDAY (8 JULY)
Submission of Module 1
THURSDAY (15 JULY)
Announcement of groups qualified
for STAGE 2

SATURDAY (17 JULY)

10.00 a.m.
Training for MODULE 2: SURVIVING
CEO & case study distributed via
email SATURDAY (22 JULY)
Submission of Module 2

SATURDAY (24 JULY)

9.00 a.m.
Presentation MODULE 2: SURVIVING
CEO
SATURDAY (31 JULY)
9.00 a.m.
MODULE 3: BUSINESS SIMULATOR

9.00 p.m.
Training for STAGE 3: ECONOMIC
DEBATE
SUNDAY (1 AUGUST)
9.00 a.m.
STAGE 3: ECONOMIC DEBATE

2.00 p.m.
Closing Ceremony

8
CASE BRIEF

9
INTRODUCTION

OBJECTIVE
This module aims to:
Expose participants to a real-life start-up/expanding business
Educate participants on the funding available for start-up business
Develop participants to provide formative solutions to a real-life strategic
problem
Test participants’ critical thinking and creativity

CHALLENGE OVERVIEW
Your team is the owner of a startup company in the food and beverages industry.
Since its establishment for the past two years, your company has been able to build
goodwill among the customers.

Your team has identified a few issues currently faced by your company. Due to
unforeseen issues at the supplier's processing plant, your company may experience
a temporary interruption in the raw material supply for the upcoming two months.

You also analyse that the consumers are more attracted to eco-friendly products.
However, there are rumours that your company has increased consumption and
improper disposal of plastic where this is not in line with customers’ preferences.

People nowadays are more concerned about product traceability. As the public trust
in the food supply chain has decreased drastically, traceability of the food they
consume has become a megatrend in the food and beverages industry.

The current pandemic has made your company’s profit slightly drop due to the
customers’ behaviours whereby they prefer to cook at home. Even if they bought the
food at any restaurant, they think it is better to take- away or delivery rather than
dine-in.

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In the shadow of uncertainty and doubt cast by the Covid-19 pandemic, you need to
become agile by shifting to online resources to survive. In conjunction with that, your
team has decided to expand your company and are about to shift to a cloud kitchen
concept. The combination of e-commerce and cloud kitchen would suit best for your
business model to sustain your company as well as to remain competitive in the
industry.

You believe it is crucial to work out the current issues that are currently happening
within the company in order to secure the source of finance to support the
expansion.

You will be provided with a list of financing options that are available to support your
expansion. It is highly advised to conduct further research in evaluating the best
financing option.

You would have to produce a maximum of 15 slides explaining the following

The existing and new portfolio of your startup company

Industry risk management and future opportunities in the market
Justification on your selected sources of fund to support the expansion
Any macroeconomic issues that you’d like to consider in making the financing
options

The slides made shall be supported with an explanatory document in PDF not
exceeding 3 pages. This should exclude the reference of your research.

*You should have a detailed breakdown of the RM200,000 fund from the
finance providers.

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Provided below is the Financial Highlight of GKY Sdn Bhd for the current year as at 31
December 20X1. The figures below may help you to assess the case scenario given:

RM

Statement of Profit or Loss

Revenue 705, 405
Gross profit 331, 540
Profit before taxation (PBT) 92, 831
Profit after taxation (PAT) 68, 695

Statement of Financial Position

Total assets 566, 819
Total liabilities Nil
Total equity 566, 819

Notes:
The nominal value of share capital is RM250,000 for ordinary shares of
250,000 units. Currently, the share price of the company is RM 1.55. There
are no interests and liabilities for the year.

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FINANCING OPTIONS

There are six financing options given. Choose any of these financing options
below you deemed best fit for your financing portfolio.
You may choose more than one financing option from the same category.
The financing portfolio must consist of a minimum of two financing options.

1. EQUITY

Equity financing is the process of raising capital through the sale of shares. By
selling shares, a company is effectively selling ownership in their company in
return for cash. Equity financing comes from many sources, for example, an
entrepreneur's friends and family, investors or an initial public offer (IPO). For
every new share issued, the share price would be constant at RM 1.55.

The shareholders are demanding a dividend payment of RM 0.50 per share.

2. BUSINESS ANGEL

A business angel is an individual who provides capital for a business start-up,

usually in exchange for convertible debt or ownership equity. Business angel
usually gives support to start-ups at their initial moments and when most
investors are not prepared to back them.

Business angels require an annual return of 30% on the amount they

invested.

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3. CROWDFUNDING

Crowdfunding is the use of small amounts of capital from a large number of

individuals to finance a new business venture.

Crowdfunding makes use of the easy accessibility of vast networks of people

through social media and crowdfunding websites to bring investors and
entrepreneurs together. It initiated the potential to increase
entrepreneurship by expanding the pool of investors beyond the traditional
circle of owners, relatives, and venture capitalists.

The annual return required from crowdfunding is 20% on the amount

invested.

4. PEER-TO-PEER FINANCING

Peer-to-peer financing (P2P) is a form of direct lending of money to

individuals or businesses without an official financial institution participating
as an intermediary in the deal. P2P financing is generally done through online
platforms that match lenders with potential borrowers.

The P2P financing allowed the maximum borrowing amount of RM150,000

which was subject to the available credit limit.

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5. SMALL BUSINESS ADMINISTRATION AND BANK
LOANS

The Small Business Administration (SBA) does not typically lend money
directly to small business owners but instead sets the guidelines for loans
made by its lending partners, community development organisations and
micro-lending institutions. They have low interest and long term loans which
are viable options for business owners.

Two of the main differences between a conventional business loan and an

SBA loan is that an SBA loan typically has a longer term and has a lower
interest rate than a conventional loan. Both SBA loans and conventional loans
for businesses are usually issued by banks.

The bank loan would require an interest rate of 8.5% each year.

6. VENTURE CAPITAL

Venture capital is a form of private equity financing that is provided by

venture capital firms or funds to startups, early-stage, and emerging
companies that have been deemed to have high growth potential or which
have demonstrated high growth for the past few years.

These firms invest in startups, in return for shares and financial partners in
the business to safeguard their investments.

The ownership required by this venture capital is 15%

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RUBRIC

CRITERIA MARKS

Introduction 20
The existing and new portfolio of the start-up company
Objective(s) of expansion
Target market and competitors

Analytical skills 20
Thorough technical and fundamental analysis on sources of fund
Appropriate calculation on cost-benefit
Market segmentation analysis

Evaluation skills 20
Clear evaluation on industry risk management
Clearly justify the selection of sources of fund
Clear explanation on the impact of chosen source of finance on
business

Judgement / Commercial acumen 10

A detailed explanation of other factors relevant to the decision

Scepticism 10
A concise risk management plan on the macroeconomic issue

Delivery 10
Well-presented points
Sufficient supporting evidence and appropriate reference

Bonus mark 10
Shows exceptional critical thinking on the issue given

TOTAL MARKS 100

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RULES AND REGULATIONS

1 GENERAL RULES

1.1 All communication regarding the case study of Young CEO Challenge (YCC)
2021 must be done through the Whatsapp group. Only team leaders will be
added to the Whatsapp group.

1.2 All deadlines are strict and failure to adhere to these will result in team
penalties or disqualification.

1.3 A team needs to be formed by 4 members. The composition of a team must

remain unchanged throughout the competition.

1.4 Should a team wish or need to withdraw from the competition, the team leader
must inform the YCC team immediately, booking fee will not be returned.

1.5 Plagiarism in any form is strictly forbidden and any team found doing so will be
disqualified.

1.6 Attendance for the training provided is optional but strongly recommended for
all team members as it will be greatly beneficial for your personal development
and increase your chances of winning.

1.7 Prizes will be awarded at the finals for winners at the amount that has
previously been advertised.

1.8 The YCC team reserves the right to disqualify any team for not adhering to the
set rules & regulations.

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2 FIRST ROUND

2.1 Arrange your content slide and explanatory document in accordance with the
marking rubric to ensure your points are logical in flow.

2.2 It is compulsory to present your explanatory document in accordance with the

format attached (Appendix 1).

2.3 Penalty of 10 marks will be deducted from the total marks if :

Non-compliance of format in the explanatory document
Slide exceeding 15 pages and explanatory document exceeding 3 pages
Failure to submit the explanatory document
Failure to comply with the submission requirement (Appendix 2)

2.4 It is prohibited to include your team members’ name in the slide or explanatory
document.

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APPENDIX 1 : EXPLANATORY DOCUMENT

Font : Times New Roman

Spacing : 1.5
Size : 12
Paragraph Alignment : Justify

Margin : Normal

Participants are required to submit a maximum of 3 pages of explanatory

document. This does not include your reference section/evidence analysis.

Be meticulous with your presentation, avoid a serious mistake :

E.g : Presenting Asset Turnover in % instead of times.

Insert page break to separate between two pages.

For evidence of your analysis/reference section, include the link to the

website that you use as reference on the last page of your explanatory
document. This should be linked to your slide. You should present your
answer as below :

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APPENDIX 2 : SUBMISSION REQUIREMENT

Last date for submission of your slide and explanatory document is by

11.59 PM, 8th July 2021.

Participants should submit the slides and explanatory documents to

http://shorturl.at/qyJ01 using your team leader’s email.

Slide and explanatory document should be converted and sent in PDF format.

Name your file as below :

Slides : TeamName_Slide_StrategicCEO
(e.g : POWER_Slide_StrategicCEO)
Explanatory document : TeamName_ED_StrategicCEO
(e.g : POWER_ED_StrategicCEO)

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