MGT657: STRATEGIC MANAGEMENT

COMPANY REVIEW AND STRATEGIC PLAN: TOP GLOVE’S

MARKETING STRATEGY

GROUP: KBA246 5A

GROUP MEMBERS:

NAME STUDENT ID
MUHAMMAD ILIE ANIQ BIN AZMI 2019705029
FARHAN HIDAYAT BIN ZAINOL 2018635446

LECTURER’S NAME:

DR. BADERISANG MOHAMED

DATE OF SUBMISSION:

4TH JULY 2021

 TABLE OF CONTENTS

CONTENT PAGES

1.0 INTRODUCTION 3

2.0 COMPANY REVIEW 4

2.2 Visions
2.3 Mission
3.0 COMPONENT OF MISSION STATEMENT 5

4.0 STRATEGIC PLANNING 6-9

4.1 Competitive Profile Matrix
4.2 SWOT Matrix

5.0 FINDINGS AND DISCUSSION 10-13

5.1 Quantitative Strategic Planning Matrix

6.0 RESULT AND DISCUSSION 14

6.1 Conclusion
6.2 Recomendation
7.0 REFERENCES 15
1.0 INTRODUCTION

Top Glove Corporation Bhd was founded in 1911 with its headquarters in Malaysia.
Top Glove Corporation Bhd is the largest glove producer in the world. Malaysia, Thailand,
Vietnam, and China are all places where the firm is engaged. It maintains marketing offices in
these nations, as well as the United States, Germany, and Brazil, and exports to over 2,000
customers in 195 countries.

Top Glove, the world's largest manufacturer of natural rubber gloves, exports to over
195 countries. The Malaysian firm produces latex and nitrile guidelines for health care
professionals, distributors, and consumers. Top Glove is a one-stop-shop that regularly
provides high-quality, dependable, and cheap gloves. Top Glove products are an important
part of healthcare since they protect people and save lives. They are always working on
methods to improve and reduce the cost of their products.

The top guantry, which is listed on the Malaysian stock exchange (2001) and the
Singapore Stock Exchange (2016), has demonstrated consistent development over the last 20
years, with a compound annual sales growth (CAGR) of 23.1 percent and income of 28.2
percent. The MSCI Global Standard Index, the FTSE Bursa Malaysia KLCI Index, the FBM
Top 100 Index, the FBM Emas Index, the FBM Hijrah Syariah Index, the FBM Emas Syariah
Index, the FTSE4Good Bursa Malaysia Index, and the Dow Jones Sustainability Index (DJSI)
for developing markets all include it.

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2.0 COMPANY REVIEW

2.1 Visions

Top Glove's mission is to "be your world-class glove and healthcare goods partner."
Since its inception in 1991, Top Glove has made continuous attempts to enhance its glove
products. In March 2001, it was listed on Bursa Malaysia, and it has since grown to become
one of Malaysia's major glove manufacturers. Top Glove has now expanded its markets to
encompass China, Indonesia, and Europe, demonstrating that the company's ambition is
achievable.

2.2 Mission

Top Glove's purpose is to "provide safe human protection internationally," which

translates to "produce a glove that can safeguard human health and safety." On the other
hand, Tan Sri Lim Wee Chai, the chairman of Top Glove, mentioned the health and safety of
subordinates, workers, and all employees. This is in keeping with the mission statement,
"Ensuring secure human protection." To safeguard the health of all people, he must first
preserve the health of his own employees. He believes that workers' and employees' health is
a corporate asset, that if they become sick, it is the firm's duty, and that the company may
incur damages. He would invest RM 400,000 on two sets of health goods, toothpaste,
toothbrush, and tongue cleaner, for his 10,000 employees in order to fulfil this objective of
being a world-class partner in gloves and healthcare products, since he feels that dental
problems may make a person unwell.

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3.0 COMPONENTS OF MISSION STATEMENT

The first component of the Top Glove purpose is (9-Concern for Employees), which
emphasises the importance of employees as a significant asset to the company. In order to
safeguard the welfare of all people, he must first ensure secure human protection in his own
organisation, as stated in the mission statement. He considers employee and staff well-being
to be a benefit to the firm, because if they become ill, the company is accountable and may
suffer damages.

The firm's core ideas, values, goals, and ethical priorities are the second component of
the Top Glove mission (6-Philosophy). Honesty, integrity, and openness are the core values of
the Top Glove mission. Tan Sri Dr. Lim has created a unique employee-centric culture that
prioritises excellent health, professionalism, and corporate ideals of honesty, integrity, and
openness, all of which have contributed to the Top Glove's success storey.

Next, (4-Technology), how technologically advanced is the company? Top Glove

continues to invest in R&D, innovation, and automation projects, as well as sophisticated
technologies such as Industry 4.0. This allows Top Glove to continue to enhance product
quality and efficiency, which is critical for satisfying consumers and increasing profitability.
This allows Top Glove to continue to enhance product quality and efficiency, which is critical
for satisfying consumers and retaining a leadership position in the international market.

Aside from that, there are additional aspects of the Top Glove assignment (3-
Markets). Top Glove's objective is to advertise, with the purpose of increasing brand
recognition and corporate profile on a global scale. In June, Top Glove was listed on the
Singapore Exchange. This indicates that Top Glove is already complete on a global scale.

Top Glove's mission components are (5-Survival, Growth, and Profitability), to name
a few. Top Glove presently holds a 26% share of the worldwide rubber glove market. The
firm has manufacturing sites in Malaysia, Thailand, Vietnam, and China. The organisation
also has marketing offices in these nations, as well as the United States, Germany, and Brazil,
and sells to over 2,000 clients in 195 countries across the world.

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 4.0 STRATEGIC PLANNING

4.1 Competitive Profile Matrix

By measuring important success criteria, the Competitive Profile Matrix compares the
target firm to its rival. It enables one to recognise the company's and its competitors'
respective shortcomings and strengths. By comparing the same elements, it is possible to get
a more specific result. The CPM's findings will aid the decision-making process of the
company management team. The group can rapidly identify which areas need to be addressed
and safeguarded. At the same time, it aids in the formulation of the business's course.

4.2 SWOT Matrix

STRENGTHS- S
1. Brand with credibility and reputation
2. Solid financial place with no debt in
the long run
3. Power to retain or raise market share
4. Low-cost structure
5. Infrastructure & reliable energy
supply
6. Global market leader
7. Wide product rage
WEAKNESS- W
1. Pricing pressure may be placed on
expanding health care gloves
2. Currency exposure
3. The welfare of factory workers is not
assured
4. Excessive dependence on domestic
market
5. Customer online services

OPPORTUNITIES- O SO STRATEGIES WO STRATEGIES

1. Government agencies give support
2. Subsidies for the natural gas by
government have reduced the cost of
production
3. The spread of disease led to increase
in hygiene awareness
4. Further than expected end of the
Covid-19 crisis worldwide
5. Long-term product demand growth
6. Increased R&D and automerization
expenditure in absolute ringgit terms
7. Higher utilization rate after factories
reopening
8. Buyback in shares
THREATS- T
1) Produce multi product lines to 1) Put a reasonable price to target every
increase the demand (S7 + O5) social class
2) Build more factories to firm the of consumer (W1 + O3)
branding (S1 + O7) 2) Increase R&D to expand market into
3) More market penetration through global market
effective salesforce (S3 + O1) (W4 + O6)
3) Improve the welfare of the employees to
satisfy
consumer demand related to the pandemic
of COVID- 19 (W3 + O4)
ST STRATEGIES WT STRATEGIES

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1. Latex price will increase
2. Nearer than expected worldwide of
COVID crisis
3. Rising the price of raw materials
4. Increased competition
5. Another round of factory closing
6. New tax implementation
1) Ensure the prices of goods are
affordable and cheaper compared
to other competitors (S4 + T3)
2) Always make a difference and move
one step ahead (S6 + T4)
3) Reduce unnecessary expenses and
manage the financial efficiency (S2 +
T5)
1) Increase online services activities with
more web development to lead the
industry (W5 + T4)
2) To protect the worker from Covid-19
virus infection, tighten the SOP throughout
the workplace (W3 + T2)

SO Strategies

1. Produce multi product lines to increase the demand (S7 + O5)

Top Glove needs to expand and create a variety of product lines at various
price points and ranges, with a variety of options. By doing so, the company will be
able to maintain long-term product demand as well as a wider product selection.

2. Build more factories to firm the branding (S1 + O7)

Top Glove needs to build more factories, which will boost the company's
branding even more. Reopening factories in the strategic location may result in a
better utilisation rate.

3. More market penetration through effective salesforce (S3 + O1)

Top Glove should penetrate more markets. It will make the brand popular to
get more buyers. The company would attempt to come up with new items that suit
local tastes by doing this.

WO Strategies

1. Put a reasonable price to target every social class of consumer (W1 + O3)
Top Glove Company should be able to appeal to and accommodate consumers
from all walks of life. The items should be of excellent quality and in line with the
company's goals. It would result in a greater share of the market being captured by
them.

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 2. Increase R&D to expand market into global market (W4 + O6)
Top Glove Company should invest in R&D, and Top Glove might expand its
business into the worldwide market to grow its business locally or globally. If Top
Glove takes the risk of expanding their market, it will be easier for them to expand
globally.

3. Improve the welfare of the employees to satisfy consumer demand related to the
pandemic of COVID-19 (W3 + O4)
To meet market demand related to the Covid-19 pandemic, the company must
take care of workers' welfare. By doing this, the health of both consumers and
workers is ensuring.

ST Strategies

1. Ensure the prices of goods are affordable and cheaper compared to other
competitors (S4 + T3)
To compete with other brands or items, Top Glove can guarantee that its retail
expenses are affordable and less expensive than its competitors. They may be able to
prevent the consumer from purchasing the competitor's goods by doing so.

2. Always make a difference and move one step ahead (S6 + T4)
To stay one step ahead of its competitors, Top Glove must create a difference
at every level. It's because it's hard to live a long life if the brand isn't up to par. If the
items are distinct from one another, it is feasible to attract more prospective
consumers.

3. Reduce unnecessary expenses and manage the financial efficiency (S2 + T5)
Top Glove should reduce needless expenses and properly manage the financial
system. For example, to make the company more lucrative, increase revenue, and cut
costs.

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WT Strategies

1. Increase online services activities with more web development to lead the
industry (W5 + T4)
To attract clients and dominate the market, Top Glove should boost their
online services operations with more web development and more promotions.
Customers will benefit from creating websites or selling items through e-commerce
since they will be able to acquire the products they desire at their fingertips. Shopee,
for example, is an online store that sells Top Glove.

2. To protect the worker from Covid-19 virus infection, tighten the SOP throughout
the workplace (W3 + T2)
The firm has to strengthen the SOP across the workplace in order to safeguard
the personnel from the virus Covid-19. To avoid becoming infected, everyone should
play their part in being extra cautious and attentive during the epidemic.

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5.0 FINDINGS AND DISCUSSION

5.1 Quantitative Strategic Planning Matrix (QSPM)

In the Top Glove company, the QSPM matrix is a strategic approach for assessing
different strategies and selecting the best. As indicated in the table below, the alternative set
of strategies is computed utilising the information from the Competitive Profile Matrix as
well as the findings from the SWOT matrix. A different set of strategies The first option is to
purchase a company that will expand their manufacturing capacity, attract more customers,
and lower the number of competitors. Another strategy is to expand markets in order to
maintain market share both domestically and internationally. The firm will decide which of
these strategies to apply in the organisation by calculating attractiveness ratings (AS) based
on each important element. The total attractiveness scores (TAS) are calculated by
multiplying the weight of each key factor by the attractiveness scores of each key factor. This
shows the relative attractiveness of each key element and the strategy options.

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(Attractiveness Score: 1 = not acceptable; 2 = possibly acceptable; 3 = probably acceptable; 4
= most acceptable; 0 = not relevant)

Based on the calculations in the table above, it is possible to conclude that pursuing an
acquisition strategy is a superior business option. A higher score is calculated by taking into
account all important external and internal key variables that may affect the strategic choice.
In the above-mentioned QSPM, the acquisition strategy received a score of 4.04, whereas the
market development plan received a score of 3.21 score.

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6.0 RESULT AND DISCUSSION

Many companies have different competitors in developing their company in the

market. To have a strong and stable company, Top Glove must identify the market and take an
action in making unique make strategies to ensure their sale revenues become increase.

6.1 CONCLUSION

In order to achieve and be successful, we have learned useful knowledge and lessons
from the many obstacles to be overcome. We have done our best to accomplish my goal of
evaluating and giving others a deeper understanding of the life of Top Glove and the product
they offer. We evaluated the S.W.O.T and provided readers a clear interpretation of their
valuable points, which had their own solutions. Given that Top Glove is a sparkling juice
beverage made with real fruits, they cannot just share their company's details with everyone.
The explanation we might explain is because of the competition and other businesses that
might be digging up information about their technology and recent growth. We can only
provide minimal knowledge and tools for my study, given such a state of secrecy.

6.2 RECOMMENDATION

Next, in the innovation of growth, the company need more customized product
solutions for customers, such as tailored formulations and ingredients to fit customer
preferences and lifestyles, wider packaging choices and more, the Top Glove can continually
create more variation of flavour that suitable with any range of age and can be acceptable
with many countries. They can gain the information from internet or doing survey. Hopefully,
the organization will use this research analysis paper to enhance its business or use the
recommended technique. Other than that, this study paper can provide data and build a
relationship with other people who need data and information. Even, to offer a reader a
deeper understanding on a subject.

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 7.0 REFERENCES

1. Top Glove Corporation Bhd. Annual Report (2020). Retrieved from

https://www.topglove.com/App_ClientFile/7ff8cb3f-fbf6-42e7-81da
6db6a0ab2ef4/Assets/anual_report/Integrated%20Annual%20Report%202020_Latest.pdf

2. Fred R. David & Forest R. David (2017). Strategic Management: A Competitive

Advantage Approach, Concepts and Cases (16th ed.). Pearson.

3. Ovidijus, October 20, 2014, Strategic Management Insight, IFE & EFE Matrices,

Retrieved from https://strategi cmanagementinsight.com/tools/ife-efe-matrix.html

3. Top Glove Corporation Bhd (2020). Corporate Profile.

Retrieved from https://www.topglove.com/corporate-profile/ 5. Wikipedia. (2021).
Top Glove. Retrieved from https://en.wikipedia.org/wiki/Top_Glove

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