Report on Strategic Planning of Supermax Corporation Berhad
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Added on 2022-02-28
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This report is a strategic plan for Supermax Corporation Berhad - a leading rubber gloves producer in Malaysia. The plan included the analysis of the mission, goals, and objectives of Supermax Berhad using the criteria Focus, Clear and Motivational. External environmental analysis will be conducted using the PESTLE model and rubber glove industry analysis in Malaysia will be conducted using Porter’s 5 forces model. The internal capability of SCB will be evaluated using the Value Chain, Resource Audit, and VRIO models. KPIs analysis involving 2 leading rubber gloves manufacturers in Malaysia namely Top Glove and Kossan will be conducted.
Report on Strategic Planning of Supermax Corporation Berhad
Added on 2022-02-28
ShareRelated Documents
MBA - Strategic management Supermax Berhad
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Strategic Plan for Supermax
Corporation Berhad 2019
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Strategic Plan for Supermax
Corporation Berhad 2019
MBA - Strategic management Supermax Berhad
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Table of Contents
1.0 Introduction ................................................................................................................................ 4
1.1 Objectives of study.................................................................................................................. 4
1.2 Overview of Supermax Berhad ............................................................................................... 4
1.3 SCB current strategic challenge .............................................................................................. 4
1.4 The vision, mission and objectives statements of Supermax ................................................. 5
1.5 How the mission of SCB guides and supports its strategy? .................................................... 6
1.6 Focus, Clear and motivating analysis ...................................................................................... 6
2.0 Macro environmental analysis – PESTLE..................................................................................... 8
3.0 Micro environmental analysis – Porter’s 5 forces ....................................................................11
4.0 Capability analysis.....................................................................................................................12
4.1 Value chain – Primary activities ............................................................................................12
4.2 Resource audit ......................................................................................................................15
4.3 VRIN based on the Value Chain analysis above ....................................................................16
4.4 KPIs benchmarking................................................................................................................16
4.1 Market share.....................................................................................................................16
4.2 Production capacity ..........................................................................................................17
5.0 Proposed strategy .....................................................................................................................18
5.1 SWOT.....................................................................................................................................18
5.2 TOWS.....................................................................................................................................19
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Table of Contents
1.0 Introduction ................................................................................................................................ 4
1.1 Objectives of study.................................................................................................................. 4
1.2 Overview of Supermax Berhad ............................................................................................... 4
1.3 SCB current strategic challenge .............................................................................................. 4
1.4 The vision, mission and objectives statements of Supermax ................................................. 5
1.5 How the mission of SCB guides and supports its strategy? .................................................... 6
1.6 Focus, Clear and motivating analysis ...................................................................................... 6
2.0 Macro environmental analysis – PESTLE..................................................................................... 8
3.0 Micro environmental analysis – Porter’s 5 forces ....................................................................11
4.0 Capability analysis.....................................................................................................................12
4.1 Value chain – Primary activities ............................................................................................12
4.2 Resource audit ......................................................................................................................15
4.3 VRIN based on the Value Chain analysis above ....................................................................16
4.4 KPIs benchmarking................................................................................................................16
4.1 Market share.....................................................................................................................16
4.2 Production capacity ..........................................................................................................17
5.0 Proposed strategy .....................................................................................................................18
5.1 SWOT.....................................................................................................................................18
5.2 TOWS.....................................................................................................................................19
MBA - Strategic management Supermax Berhad
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5.3 Ansoff matrix.........................................................................................................................20
5.3.1 Market development to increase market share ...........................................................20
5.3.2 Diversification ...............................................................................................................20
6.0 Conclusions ...............................................................................................................................21
6.1 Strategy evaluation – Conclusions ..............................................................................................21
List of references...................................................................................................................................24
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5.3 Ansoff matrix.........................................................................................................................20
5.3.1 Market development to increase market share ...........................................................20
5.3.2 Diversification ...............................................................................................................20
6.0 Conclusions ...............................................................................................................................21
6.1 Strategy evaluation – Conclusions ..............................................................................................21
List of references...................................................................................................................................24
MBA - Strategic management Supermax Berhad
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1.0 Introduction
Strategic planning leads to a comprehensive and effective strategy which guides
organizations to apply knowledge strategically to meet the business needs and goals (Hashim,
Abdullah and Ibrahim, 2015). This report is strategic plan for Supermax Corporation Berhad.
1.1 Objectives of study
This report is a strategic plan for Supermax Corporation Berhad (SCB) - a leading rubber
gloves producer in Malaysia. The plan included the analysis of the mission, goals and
objectives of Supermax Berhad using the criteria Focus, Clear and Motivational. External
environmental analysis will be conducted using the PESTLE model and rubber glove industry
analysis in Malaysia will be conducted using the Porter’s 5 forces model. Internal capability
of SCB will be evaluated using the Value Chain, Resource Audit and VRIO models. KPIs
analysis involving 2 leading rubber gloves manufacturers in Malaysia namely Top Glove and
Kossan will be conducted. Suitable strategies will be proposed using the TOWS and Ansoff
matrix and the proposed strategies will be evaluated using the SAF model.
1.2 Overview of Supermax Berhad
SUPERMAX Corporation Berhad (SCB) is a world class latex glove conglomerate listed on
the Main Board of Bursa Malaysia Securities Berhad. SCB is a leading international
manufacturer, distributor and marketer of high quality medical gloves. The company which
was founded in 1987 currently exports to over 160 countries worldwide in the regions of
America, Europe, Middle East, Asia and the South Pacific. SCB produces up to 24 billion
pieces of gloves per year, meeting approximately 12% of the world demand for latex
examination gloves (http://www.supermax.com.my/, 2019).
1.3 SCB current strategic challenge
Issues currently facing SCB include higher-than-expected cost incurred in the fourth quarter
of 2018 due to provision of higher deferred tax as well as provision of unrealised foreign
exchange (forex) loss on short-term US dollar financing and the forex losses for the whole of
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1.0 Introduction
Strategic planning leads to a comprehensive and effective strategy which guides
organizations to apply knowledge strategically to meet the business needs and goals (Hashim,
Abdullah and Ibrahim, 2015). This report is strategic plan for Supermax Corporation Berhad.
1.1 Objectives of study
This report is a strategic plan for Supermax Corporation Berhad (SCB) - a leading rubber
gloves producer in Malaysia. The plan included the analysis of the mission, goals and
objectives of Supermax Berhad using the criteria Focus, Clear and Motivational. External
environmental analysis will be conducted using the PESTLE model and rubber glove industry
analysis in Malaysia will be conducted using the Porter’s 5 forces model. Internal capability
of SCB will be evaluated using the Value Chain, Resource Audit and VRIO models. KPIs
analysis involving 2 leading rubber gloves manufacturers in Malaysia namely Top Glove and
Kossan will be conducted. Suitable strategies will be proposed using the TOWS and Ansoff
matrix and the proposed strategies will be evaluated using the SAF model.
1.2 Overview of Supermax Berhad
SUPERMAX Corporation Berhad (SCB) is a world class latex glove conglomerate listed on
the Main Board of Bursa Malaysia Securities Berhad. SCB is a leading international
manufacturer, distributor and marketer of high quality medical gloves. The company which
was founded in 1987 currently exports to over 160 countries worldwide in the regions of
America, Europe, Middle East, Asia and the South Pacific. SCB produces up to 24 billion
pieces of gloves per year, meeting approximately 12% of the world demand for latex
examination gloves (http://www.supermax.com.my/, 2019).
1.3 SCB current strategic challenge
Issues currently facing SCB include higher-than-expected cost incurred in the fourth quarter
of 2018 due to provision of higher deferred tax as well as provision of unrealised foreign
exchange (forex) loss on short-term US dollar financing and the forex losses for the whole of
MBA - Strategic management Supermax Berhad
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FY18 from gains the year before. There was also issues of revenue and profit decline in 2017
(http://www.supermax.com.my/, 2019).
Figure 1.0: Current issues: Source: SCB Annual Report (2018)
1.4 The vision, mission and objectives statements of Supermax
Vision statement of SCB
“To be the global market leader in the manufacturing of Medical Gloves”
(http://www.supermax.com.my/, 2019).
Mission statement of SCB
“To be the global brand of choice among users of Medical Gloves”
(http://www.supermax.com.my/, 2019).
Goal and objectives of SCB
“To create a portfolio of medical devices that can complement, and supplement each other,
in terms of value proposition” (http://www.supermax.com.my/, 2019).
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FY18 from gains the year before. There was also issues of revenue and profit decline in 2017
(http://www.supermax.com.my/, 2019).
Figure 1.0: Current issues: Source: SCB Annual Report (2018)
1.4 The vision, mission and objectives statements of Supermax
Vision statement of SCB
“To be the global market leader in the manufacturing of Medical Gloves”
(http://www.supermax.com.my/, 2019).
Mission statement of SCB
“To be the global brand of choice among users of Medical Gloves”
(http://www.supermax.com.my/, 2019).
Goal and objectives of SCB
“To create a portfolio of medical devices that can complement, and supplement each other,
in terms of value proposition” (http://www.supermax.com.my/, 2019).
MBA - Strategic management Supermax Berhad
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1.5 How the mission of SCB guides and supports its strategy?
Mission statements are a common management tool for developing principles, credos, or core
values for an organization, and to reflect an organizational identity (Woodside, 2018). SCB
holds fast to its mission to be the global market leader in the manufacture of rubber gloves.
And now, with its growing contact lens division, the same principle applies as it has served
the company well over the years (http://www.supermax.com.my/, 2019). Achieving a market
leader position has continued to be guiding principle as the company stays relevant to
continue creating value for its customers and Shareholders (http://www.supermax.com.my/,
2019).
1.6 Focus, Clear and motivating analysis
According to Johnson et al. (2016), a focus mission statement focuses attention and helps
guide real decisions and defines what is excluded from the organisation’s strategy as much as
what is included. A mission statement is motivational statement when it motivate employees
to go the extra mile while a clear statement should be easy to communicate, understand and
remember (Johnson et al., 2016). Clearly, SCB’s vision and mission statements could be said
to meet the focus criterion as they clearly shows the company’s intention to be a global brand
in a well identified sector – the medical gloves.
Vision and mission statements answer the question “what business are we in?” (Khalifa,
2011). SCB’s vision and mission statements appear not to meet the motivational criterion as
it failed to emphasise the importance of employee, however, employees can buy into the goal
of wanting to be the global brand if they can align their personal goals with that of the
organisation. The vision and mission statements appear to meet the clear criterion as they are
short and concise.
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1.5 How the mission of SCB guides and supports its strategy?
Mission statements are a common management tool for developing principles, credos, or core
values for an organization, and to reflect an organizational identity (Woodside, 2018). SCB
holds fast to its mission to be the global market leader in the manufacture of rubber gloves.
And now, with its growing contact lens division, the same principle applies as it has served
the company well over the years (http://www.supermax.com.my/, 2019). Achieving a market
leader position has continued to be guiding principle as the company stays relevant to
continue creating value for its customers and Shareholders (http://www.supermax.com.my/,
2019).
1.6 Focus, Clear and motivating analysis
According to Johnson et al. (2016), a focus mission statement focuses attention and helps
guide real decisions and defines what is excluded from the organisation’s strategy as much as
what is included. A mission statement is motivational statement when it motivate employees
to go the extra mile while a clear statement should be easy to communicate, understand and
remember (Johnson et al., 2016). Clearly, SCB’s vision and mission statements could be said
to meet the focus criterion as they clearly shows the company’s intention to be a global brand
in a well identified sector – the medical gloves.
Vision and mission statements answer the question “what business are we in?” (Khalifa,
2011). SCB’s vision and mission statements appear not to meet the motivational criterion as
it failed to emphasise the importance of employee, however, employees can buy into the goal
of wanting to be the global brand if they can align their personal goals with that of the
organisation. The vision and mission statements appear to meet the clear criterion as they are
short and concise.
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