FACULTY OF PLANTATION AND AGROTECHNOLOGY
UNIVERSITI TEKNOLOGI MARA, JASIN CAMPUS, MELAKA
BACHELOR OF SCIENCE (HONS) AGRIBUSINESS (AT223)
AGR623
GROUP: M3AT2235A
PREPARED BY:
MUHAMMAD AIMAN BIN ABD.RAHMAN (2021113153)
PREPARED FOR:
MADAM NUR AZIERA RUSLAN
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TABLE OF CONTENT.
Content
Page
Question 1
3
Question 2
4
Question 3
5
Question 4
6
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QUESTION 1
Philosophy is one of the important components of a mission statement that a company
should have. Explain the philosophy of Top Glove.
Within a mission statement, philosophy is an important element. The philosophy shows and
best describes the company’s aspirations, goals, beliefs, and values. The owner and The
executive chairman of Top Gloves Corporation Bhd, Tan Sri Dr Lim Wee Chai, believes that
in order to become the world most successful and biggest rubber glove market float, they must
adapt the practices like listening and hearing the feedback of the customers, long-term future
sucession preparation together with the frequent immersive R&D research and development.
Other than the work practices, he also stated that high moral work ethic is also the main
contributor, for example, he strongly against any discrimination among the staff, and
employees and the higher talents.
Furthermore, Tan Sri Dr Lim Wee Chai stated that his company also adopt meritocracy system
where all individuals have the same equal in achieving opportunity. He also claimed that
business authorities is owned by everyone in the company and not using the hierarchical
system.
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QUESTION 2
With the support of the phrases from the article, explain four (4) components of Top
Glove’s mission.
1. Staff members are given chances to be actively engaged and to develop.
To treat the staff within the business as an asset and not just employee shows that the company
is truly dedicated its purpose not only for profit but also for the development of the workers
skills and values.
2. Offers the ability and opportunity to conduct business abroad for the investors.
Since this company business is listed at number 2 for Singapore Exchange, the chairman
offered any investors who interested to carry out and operate the business in other country like
Singapore. This will increase the business’s profit, worth, values and shareholders. By
expanding the business, Top Glove company can ensure it’s survival and developement.
3. Increasing the brand’s international recognition.
Since this company business is listed at number 2 for Singapore Exchange after Bursa Saham
Malaysia, Top Glove have high potential in expanding their business empire to another country
since its popularity and international recognition has drastically fluctuated. This shows the
capability of the company to compete internationally.
4. To expand and increase the market share of the company globally.
Around 25% of the global rubber glove market is currently dominated by Top Glove Company.
This company acquired 2000 clients in almost 195 countries. The founder still wishes to
strengthen and grow a strong base market share in this asian country especially country that
within the Association of southeast Asian Nations (ASEAN).
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QUESTION 3
Analyse three (3) strategies that have been implemented by Top Glove.
1. Product development.
Product development is how a business entity create new products. Its related to a series of
steps and stages in creating new products or upgrading and innovate existing product within
the business in order to ensure the continuous survival and profitability. Tan Sri Dr. Lim Wei
Chai claimed that Top Glove is highly prioritised and value the continuous innovation and
rigorous R&D ( research & developement). The main purpose are to enhance the profit,
significantly reduce the cost, expenses and waste, and boosting automation in the production
processes.
2. Market development.
Market development is one of the strategies implemented by Top Glove. This strategy is the
process where the business is widen and broaden its market to new places and new target
customers. with the existing customers from 195 countries, Top Glove sees their potential in
enlarging their market development.
3. Mergers and aquisitions.
Top glove also implemented Mergers and acquisitions in their business. Mergers is the method
used when the business enhancing its performing in business through join forces between two
or more companies that are approximately the same size while acquisitions us when the
company buy another business entity. The transactions can be in form of assets and stock
purchases. One of the main purpose Top Glove implement this method is because they want to
determine how the company synergies with the merges company and they can gain new
method, techniques and technologies.
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QUESTION 4
Discuss with example, two (2) potential advantages and two (2) potential disadvantages
that Top Glove might face in conducting international operations.
Advantages
1. Increase the market share, revenue and profit when accessing new market.
As claimed by the chairmen, one of the company’s goal is to focus on expanding and widen its
market to countries especially in strengthening the business based in the ASEAN countries.
When the company decided to enter new market, they can reach new type of customer bases
that might not be available locally. This will increase the revenue and profit as well as the
international recognition. This is a huge potential considering the Top Glove product quality
are very satisfactory for example a balanced ratio between rubber and synthetic gloves.
2. Access to higher quality business inputs and lower production cost.
Top Glove can access to countries that could contribute to the well being of the financial health.
Some nation and region may offer lower production costs and more affordable labor rate. They
also may be able to recruit staff from other countries that have specialties and expertise that we
dont have locally. Other than that, other countries also might offer a better price for the raw
material in like rubber in producing the gloves. This benefits the profit margin of the business.
Disadvantages.
1. Different rules, policies and regulatory environment for different regions.
Whenever a business entitiy decided to operate their business at another country, they might
be experiencing some. alteration since legal and regulatory will be diffenrent from the origin
country. This might add complexity and cost towards the operation.
2. New working culture, ethic, communication and cultural differences.
When Top Glove decide to operate in different country will definitely face some different
culture and working etiquette. It might be harder for the company to manage internal and
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external problems when there is communication barrier like languages and different culture. It
is also will be harder to form bonding between employees.
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