[Top Glove] -Transforming SME to Organization

Date: 23 November 2013
Time: 10am - 12.45 noon
Place: Top Glove 

Top Glove have 25% world market share
21 factories
Product Range: 13 Type of glove products
-80% on health care sector
-20% on non -health care sector

Recipe for transformation
a) Values & corporate culture
i) business direction
ii) Investment Direction
iii) Business Ethnics
-Honesty
-Integrity
-Transparency

iv) Business Rules
v) Quality Policy

b) Uniqueness
-We build & success together
-we set high standards
-we are trustworthy
-we do what is right
-we consistently deliver
-we believe in healthy lifestyle

Quality + costing + service

Key industries drive
- medical gloves is a necessity in healthcare industry
-increasing healthcare & hygiene awareness
-aging population
-health regulations
-emergence of health threats

Work life balance
-work smart, play hard
-explore, experience & excitement
-happiness is giving
- we and your family

Challenges
-currency exposure
-raw material price fluctuation
-crude oil price fluctuation / speculation

Challenges in People Management
Confucius: choose a job you love and you will never have to work a day in your life
-maximize talent
-keep motivation high
-tap into people's passion

Opportunities
-USA & EU27: only 11% world population consumed 68% of global glove usage
-Average 8% - 10% growth p.a
-exponential growth in capacity CAGR: 26%

Management focus going forward
-move upstream to rubber plantation
-target 30% global market share.

Marketing

•  less branding strategy
• more in house brand in middle east and Africa

How to penetrate market

• awareness
• healthcare
• education
• BRIC  - Brazil, Russia,  India, China
• BRICS - Brazil, Russia, India, China, South Africa

External Factor

• KDN, national glove association, MAGMAR, MATRADE
• Collaboration with local tertiary education institute 

Why move upstream?

• 2010, rubber price fluctuate to the highest
• latex price violate
• invest in plantation to cushion latex pricing
• backward integration

What is Tan Sri Lim Wee Chai' secret

• BMI
• -nutritionist & doctor guide employee on diet
• conduct health talk for awareness
• distribute fruits per month
• tooth paste and tooth brush
• canteen food been monitored
• subside on vegetarian food

Can defected quality glove be degraded and sell?

• based on industry requirement
• depend on country requirement
• grade b will open to other industry expect medical industry

Does Top Glove have bargaining power of consumer?

• NO : Top glove is OEM 

How should Top Glove improve?

• invest in high speed technology
• produce cheaper

Top Glove had diverse RM200 m for plantation. Is it a good move?

1) Yes

- ensure the source of supply

2) NO

- not agriculture by origin

RBV?

- resource based value

-example: ERP

The benefit of having clear objective

1. Provide direction by revealing expectations
2. allow by serving as standards
3. establish priorities
4. reduce uncertainty
5. minimize conflict
6. stimulate exertion
7. aid in allocation of resources
8. aid in design of jobs

References:

• http://www.thestar.com.my/story.aspx?file=%2f2008%2f4%2f19%2fbizweek%2f20986651
• http://www.rubberex.com.my/Malaysia-industrial-rubber-gloves-latex.html
• http://www.bloomberg.com/news/2013-09-18/malaysian-proves-billionaire-making-45-000-gloves-an-hour.html