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Top Glove Case Analysis

Essay by   •  October 1, 2011  •  Case Study  •  450 Words (2 Pages)  •  2,870 Views

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Top Glove is one of the companies which produce the world's largest rubber glove. This company has been established since 1991 and was listed on Bursa Malaysia Securities Berhad on 27 March 2001. There are three production centres of rubber gloves are built to accommodate growth demand for these gloves by the customer. The company began planning the expansion of its business through the construction of the plant by 20 factories to meet the demand of customers from outside and within the country. The main focus is to ensure that the company could be "One-stop Complete Glove Sourcing Centre" and to ensure that the company could be variety of attempts have been made to ensure the company can achieve its goals where emphasis is given in research and development to produce a wide and diversified range of high quality and value-added glove products in order to cater to the ever-increasing expectations of end-users.

Top Glove's business was established by Dato' Dr Lim Wee Chai and his wife Tong Siew Bee, with assisted by several other board members in facilitating the movement in the administration of this company. The main mission of this company is to be a world class glove manufacturer providing top quality products with excellent services through continuous improvement and innovation. The company's vision is to ensure that the company could be the world's leading manufacturer with excellent quality glove products and services that enrich and protect human lives. Both the mission and vision is very important to the company as it became one of the company's efforts to achieve the goals set.

Top Glove has a shareholder fund of RM1.09 billion or USD358 million with an annual turnover of about RM2.08 billion or USD682 million as at 31 August 2010 with an increase of 35% from previous year. From the information obtained in the 2010 annual report can also be seen that there was an increase of 49% in after-tax profit of RM250 million for the year 2010 in which the previous year was RM168 million.

Besides that, the company corporate values are the global customer satisfaction, do it right first time and every time, integrity and total commitment, excellence in quality and competitiveness, environmental friendly and social responsibilities. Top Glove's company is practice the quality and productivity are their business; continuous improvement and innovation are their duties and towards zero defect is their target.

Top Glove direction in their business is to produce consistently high quality gloves at efficient low cost. In light of the continuation of high latex prices and Top Glove's high exposure to the natural rubber glove segment which, makes up about 80% of sales, we believe that the operating environment will remain tough.



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