Closing the Deal

As the newly recruited Managing Director of an established and rapidly growing electronics manufacturer in Malaysia , Michael Khoo is flying high - great job , good salary , stock options and a chance to rub shoulders with the top management and build one of the truly great twenty - first - century organisations . THe company is also backed by several leadng venture capitalists from Hong Kong and Japan . Just a few days into the job , Michael participated in a presentation to a new group of potential Singaporean investors for funding that could help the company expand marketing , improve its services and invest in growth . By the end of the meeting , the investors had verbally comiitted RM 30 million in funding .

However , thing tuned sour pretty fast . As michael was leaving at about 9.00p.m the Financial COntroller , Magdalene Cheng , who had just returned from an exrtended leave , cornered him . He was suprised to find her working so late , but before he could open his mouth . magdalene blurted out her problem. THe figures that Michjael had presented to the Singaporean venture capitalists were flawed ." The assumption behind the revenue growth plan are abslutely untenable ,'she said . " Not a chance of them ever happening ." Michael was stunned when he head what she had just said . Then he told her to go home , while he would stay in the office to look at the figures carefully .

At 11.00 p.m MIchael was still sitting in his office wondering what to do . His research showed that the figures were indeed grossly exagerated , but most of them were at least statistically possible ( however remoite that possibility was ) . However , what really troubled him was that the renewal income figure was just flat-out false , and hje had a very strong suspicion that one member of the mangement team who had also particupate in the presentation knew it was incorrect all along . TO make matters worse , it was actually the renewal income figure that had ultimately made the investment so attractive tot the Singaporean  investors . Michael iknew what was at stake no less than the life or death of the company itself . However , he was not sure of how to solve this problems .