Contents

1.0

CURRENT SITUATION............................................................................4

1.1
HISTORY AND BACKGROUND...................................................................................4
1.2
CURRENT PERFORMANCE......................................................................................5
1.3
ACCOLADES AND AWARDS.....................................................................................7
1.3.1 Certifications............................................................................................. 8
1.4
BUSINESS STRATEGY (VALUE-CHAIN ANALYSIS)...............................................................9
1.4.1 Support Activities on value-chain analysis..........................................................9
1.5
STRATEGIC ADVANTAGE AND DISADVANTAGE................................................................10
1.6
FINANCIAL PERFORMANCE...................................................................................11
1.6.1 Ratio analysis..........................................................................................11
1.6.2 Chart of profitability ratios............................................................................11
1.6.3 Interpretation on the ratio analysis..................................................................12
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Profit Margin........................................................................................12
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Return on Assets..................................................................................12
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Return on Equity...................................................................................12
1.6.4 Common Size Statements............................................................................13
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Income Statements................................................................................13
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Balance Sheet......................................................................................13
1.6.5 Comparison with competitors for year 2014.......................................................14
1.6.6 Business Diversification..............................................................................14
1.7
STRATEGIC POSTURE........................................................................................14
1.7.1 Current Vision.......................................................................................... 14
1.7.2 Current Mission........................................................................................14
1.7.3 Current Strategies.....................................................................................15
1.7.4 Current Policy..........................................................................................15
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Health and Safety Policy..........................................................................15
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Training for staff policy............................................................................15
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Labor policy.........................................................................................15
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Environment Conservation policy...............................................................16
2.0
2.1
2.2
2.3
3.0

CORPORATE GOVERNANCE...................................................................16
BOARD OF DIRECTORS.......................................................................................16
TOP MANAGEMENT........................................................................................... 20
SHAREHOLDERS.............................................................................................. 20
EXTERNAL ENVIRONMENT....................................................................23

3.1 POLITICAL, LEGAL AND GOVERNMENTAL FORCES..................................................................23

3.2 TECHNOLOGICAL FORCES.......................................................................................... 23
3.3 COMPETITIVE FORCES.............................................................................................. 24
3.4 EMPLOYEES........................................................................................................ 24
3.5 CUSTOMERS........................................................................................................ 24
3.6 PRODUCTS.......................................................................................................... 24
3.7 ECONOMIC FORCES................................................................................................ 25
3.8 INDUSTRY ANALYSIS................................................................................................ 25
3.8.1 Good Prestige...............................................................................................25
3.8.2 Good Alliance with the Authority and the Community.....................................................26
3.8.3 Public-listed..................................................................................................26
3.8.4 Collaborative Leverage.....................................................................................26
3.9 PORTERS FIVE FORCES........................................................................................... 27
3.9.1 Potential entry of new competitor..........................................................................27

3.9.2 Rivalry among competitor firms............................................................................28

3.9.3 Potential development of substitute product..............................................................28
3.9.4 Bargaining power of consumers............................................................................28
3.9.5 Bargaining of power suppliers..............................................................................29
4.0

INTERNAL ENVIRONMENT.....................................................................30

4.1 MARKETING......................................................................................................... 30
4.2 FINANCE AND ACCOUNTING........................................................................................30
4.2.1 Liquidity ratio................................................................................................30
4.2.2 Leverage ratio...............................................................................................31
4.2.3 Activity ratio.................................................................................................. 31
4.2.4 Profitability ratio............................................................................................. 32
4.3 RESEARCH & DEVELOPMENT.......................................................................................37
5.0

SWOT ANALYSIS...............................................................................39

5.1 STRENGTH.......................................................................................................... 39
5.1.1 Reduction in labor cost......................................................................................39
5.1.2 High profitability and revenue..........................................................................40
5.1.3 Growth in emerging market.................................................................................40
5.1.4 Own brand manufacturer, OBM............................................................................41
5.1.5 Excellent distribution channels.............................................................................41
5.2 WEAKNESS......................................................................................................... 41
5.2.1 Investment in R& D.......................................................................................... 41
5.2.2 Drastic change in debt-to-equity ratio......................................................................41
5.2.3 Limitations in the product mix..............................................................................42
5.3 OPPORTUNITIES..................................................................................................... 42
5.3.1 Emerging with multinational healthcare product corporation.............................................42
5.3.2 Increase in sales due to OBM..............................................................................42
5.3.3 Technology................................................................................................... 43
5.3.4 Product Quality.............................................................................................. 43
5.3.5 Increasing demand..........................................................................................43
5.4 THREATS........................................................................................................ 44
5.4.1 Complying with host and native countries law and regulations..........................................44
5.4.2 Risk of exchange rate- Value of RM drops.................................................................44
5.4.3 Minimum wage policy........................................................................................45
5.4.4 Competitor................................................................................................... 45
5.4.5 Shift of demand from rubber glove to synthetic rubber glove............................................45
6.0

STRATEGIES ALTERNATIVES AND RECOMMENDED SOLUTIONS..............................46

6.1 SO STRATEGIES.................................................................................................... 47
6.1.1 Market penetration......................................................................................... 47
6.1.2 Forward Integration.........................................................................................47
6.2 WO STRATEGIES................................................................................................... 47
6.2.1 Increasing exports...........................................................................................47
6.2.3 Unrelated Diversification....................................................................................48
6.3 ST STRATEGIES.................................................................................................... 48
6.3.1 Credit risk management....................................................................................48
6.3.2................................................................................................................ 48
6.3.3 Increasing investment in automation.......................................................................48
6.4 WT STRATEGIES.................................................................................................... 48
6.4.1 Restructuring existing employees compensation package..............................................48
6.4.2 Diversification................................................................................................49
6.4.3 Restructuring allocation for each sector. I/e : investment, debt, assets..................................49
7.0

STRATEGY IMPLEMENTATION.................................................................51

8.0

EVALUATION AND CONTROL..................................................................53

9.0

REFERENCES..................................................................................54