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SBLC6000 Strategic Management of Top Glove Corporation Berhad Assessment Answer

SBLC6000 Strategic Management


Top Glove Corporation Berhad is the world’s largest manufacturer of gloves, listed in the main board of Bursa Malaysia under the health care sector. The company is the market leader in the glove industry and achieved superior performance in the challenging business environment. Based on the letter to stakeholders and management discussion and analysis (MDA) as a case study (Student portal) complete the following tasks.


Research the Top Glove Corporation Berhad’s case study provided and, using relevant secondary information, complete the following:

a. Critically evaluate the key drivers of change that have affected the rubber glove industry using an appropriate environmental analysis model(s).

b. Striving to be the industry’s overall low-cost provider is a powerful competitive approach in markets with many price-sensitive buyers. Critically discuss, how a company achieves low-cost leadership over rivals by cost-efficient management of activities

c. List and discuss additional factors to consider and recommendations you would make to ensure long-term sustainability and stakeholder value creation.

d. In one short statementwrite a summary the Top Glove Corporation Berhad’s approach to Strategic Management.


2500 words +/- 10%.  Any deviation from this will be penalised.


Please note the following when completing your written assignment:

Writing: Written in English in an appropriate business/academic style

Focus: Focus only on the tasks set in the assignment.

Length: 2500

Formatting: Typed on A4 paper in Times New Roman or Arial font 12 with at least 2.5 centimetre space at each edge, double spaced and pages numbered.

Document format: Report

Ensure a clear title, course, and name or ID number is on a cover sheet and a bibliography using Harvard referencing throughout is also provided.

Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive. 

The use of a range of information sources is expected – academic books, peer reviewed journal articles, professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other company information. All references should be in the Harvard style.



Top Glove Corporation Berhad is the current organization under consideration where the strategic management approach in the world’s largest gloves manufacturer is created. This organization has a crucial contribution with enlistment across the healthcare sector of the board of Bursa Malaysia. With a competitive edge in gloves industry a superior performance is attained by Top Glove Corporation Berhad across the healthcare and gloves industry. It is through strategic management analysis referred in the case study, the prime factors for making changes in the rubber glove industry establishes environmental analysis models (Spina and Spina, 2020). With the low-cost strategic approach a competitive edge is established by Top Glove Corporation Berhad using price sensitivity among its buyers. The activities that facilitate a leadership to manifest low-cost management effectiveness among rivals in industry is states in this assignment. The need for recommendation of factors creates long-term sustainability through stakeholders through value creation. With the help of short term statement, Top Glove Corporation Berhad enables in entwining with the strategic management. 

a. Critically evaluate the key drivers of change that have affected the rubber glove industry using an appropriate environmental analysis model(s). 

There are environmental analysis models like PEST evaluation that enable the understanding of the factors that impacted upon Top Glove Corporation Berhad to create changes across the rubber glove industry. with the help of identification of these factors the actual forces in which the performance at Top Glove Corporation Berhad were possible to be changes and improved for the better competitive edge across the industry and establish relevance in healthcare sector (Oswald, 2020)

 PEST Analysis: 

  • Political factor: 

Top Glove Corporation Berhad is assisted by a strong government support program to gain development in positive sales acceleration across the rubber gloves industry. The corporate governance is crrried out effectually by Top Glove Corporation Berhad. The perfect control on regulation to impose duties to human capital management is established. The government policies are aligned well with the future improvement and growth to gather excellence and prestigious indices across the multinational appeal by Top Glove Corporation Berhad. Creating a quality improved plan enabled the health requirement across sector to contribute with the growth in the government organization approach (Forcadell et al., 2020). In terms of globalized demands posed upon Top Glove Corporation Berhad, the government acts to be a significant and critical stakeholder for Top Glove Corporation Berhad to help facilitate the price strategies through the balance across the financial years. There are with the intensified competitiveness, the compliance towards regulations and the country specific policies are to be taken into consideration across Top Glove Corporation Berhad. With the price strategies, the national regulations under government approval have to be taken care of. There are grounds of 

  • Economic factors: 

Top Glove Corporation Berhad is found to attain a supremely competitive advancement across the rubber gloves industry as per the past year record. For the Financial Year 2018, the Sales revenue reached RM 4.21 billion through the break opening performance excellence. Profits suggested through tax create a high RM 528.6 million with the 37.3 percent across the Financial Year 2017. With the quarterly revenues of RM 1.2 billion that volume of highest sold products are expected through 49 billion gloves. The prices of the raw materials are mixed in nature through the financial year 2018. With an average price of RM 4.51/kg the price was enhanced to USD 1.13 per kg. With the enhanced natural gas tariff undertaken, the cost passed through USD system was established in a competitive efficiency to raise highest level of competitive pricing through regulated controls. It is through the demand growth that supplies attained competitive edge through enhanced efficiencies (Imran et al., 2020). Top Glove Corporation Berhad helped in attaining the highest Profit Before Tax (PBT) was depicted with surge in sales through 76% across the financial year 2017. The product mix through sales volume enhanced the sales revenue of financial year 2018 signified global demands with 10 percent rise in every annual levels. With the help of sales recurring across demands that expected demands were met through the elevated hygiene standards with progressive stringency. From 2financial year 2014 to financial year 2018 Top Glove Corporation Berhad established 48% rise in economic growth through sales revenue. 

  • Social factors: 

Top Glove Corporation Berhad has ensured their performance to be strongly structured with social convenience through effectiveness across outcome in improvement areas. With the rubber gloves industrial contacts with healthcare sector through Top Glove Corporation Berhad’s crucial contribution enable savings through better gas as energy consumption (Mello, 2017). There are higher investments made by Top Glove Corporation Berhad to ensure that efficiency is created across heating elements in thermal insulation which also replaces metals through engineering of plastics. It is through hot air circulations that recovery is optimized through production heat. The equipment through gloves industry is effectually established by Top Glove Corporation Berhad so that combustion efficiency is maintained. Cost mitigated impact creates 23.5% elevation of the gas tariff. There is combustion controls created so that costs of mitigation are effectually used with 23% hike. There are water factors taken into serious consideration by Top Glove Corporation Berhad where the harvesting, recycling and automation are created through water supplies. It is owing to adequacy of supply that operations of Reverse Osmosis Treatment Plant (RSTP) are established. With the proposition to turn clean water to factory channeled purpose, the reuse production is carried out with 15.7% yielding of average water consumption revenue. Electricity is ascertained by Top Glove Corporation Berhad through waste controls across the electronic power quality. With investigation of equipment that regular maintenance through electronic systematic distribution is created (Tang and Hussin, 2020). With the step towards organic expansion the positioning of the company was aimed to be improved across strategic persuasion. Enhanceing productivity with structured engineering helps the downtime reduction with better machinery equipment and lowers the threats in time and other aspects. 

  • Technology factors: 

Top Glove Corporation Berhad embedded the acceleration in technological areas through digitization and automation to bring about progressive and positive changes in their functional approaches. With the aim of reducing of errors, complaints in supply chain or service operations, Top Glove Corporation Berhad enhanced into technological niche through automated controls where responsible approaches were delivered. Shift from manpower excellence towards technological dependence helped growth to be boundless for Top Glove Corporation Berhad. Industrial competitive edge is possible to be ascertained when improved data handling and accuracies are established with the application of Big Data traceability provision (Chen, 2020). Transparency service mechanism with error reduction was created through time effective performance outcomes. 

b. Striving to be the industry’s overall low-cost provider is a powerful competitive approach in markets with many price-sensitive buyers. Critically discuss, how a company achieves low-cost leadership over rivals by cost-efficient management of activities

 In order to create sustainability across business paradigm there is an ardent approach involved to lower the cost across the services. In case of Top Glove Corporation Berhad such a strategic approach for sustainability is created so that effective cost leadership is created so that business undergoes low cost effectiveness. With the help of low cost strategy that helps appeal and approach across through the expansion policy. In order to develop a cost effective leadership strategies, the low cost helps in driving and entering to approach the diversities across the geographic locations (Kawano, 2019). With the production, supply chain and the functions of raw material procurement taken place creates the low strategy effectiveness with evident leadership approaches.  With low cost effectiveness strategies the leader shall bring control to the expenses and the procurement, manufacturing and distribution process to be conducted. This results in the final product price to be controlled and reduced down through production service process. With the help of cost leadership strategy, the company is possible to adequately empower the products through price lowering effectiveness. With a competitive edge the raw material cost is tried to be turned down. The competitor rivalries across the rubber gloves industry are found to keep a high price across the production quality value strategy criteria posed across the customers. It is the aim of the Top Glove Corporation Berhad to create cost leadership strategy as effectiveness approach through standardized attempts. 

With the attempt to comfort the customers with enhanced supplies and demands generated that lower costs are welcomed through effective strategies. It is only possible through competitive edge created that productive standardization is possible through per unit cost effectiveness. For the population that is subjected to as the customers, the price sensitivity attribute is addressed and acknowledged. There are needs for lowering the product prices through standardization to enable and fit well with the price sensitivity among segments identified. It is necessary for the charges to be lower in terms of entire infrastructural development along with the company functional attributes. Ranging from production, material procurement to packing, processing and machinery costs have to be curtailed down for the final finished goods price to be at lowest possible price (Alwi et al., 2019). With the strategic target to approach a broader section of population segment, there are needs for strategies to be established for the lower price management. With the company’s cost reduction the quality is often subjected to quality reduction. The market share gets underpriced through the competitors. In order to create edge across the competitor rivals in the industry, the low cost leadership is necessary to be managed for the above average profitability. With the help of sustained cost leadership, an above average profitability is ascertained through extended profitability established. Better performance through internal values is established through chain activities controlled. With effective cost chain activities undertaken, the avoidance of cost productivity is eliminated through varied business activities. 

c. List and discuss additional factors to consider and recommendations you would make to ensure long-term sustainability and stakeholder value creation.

 Reconfiguring a new value chain supplier for Top Glove Corporation Berhad is likely to yield the effective human resource operation network. For the responsibilities to be tapped through effective competitive strategies and postures the incremental reconfiguration is possible to be created for the business to get edge over other in the industry (Chen, 2020). For the competitive advantage to be maintained, the competitive postures are possible to be maintained through this strategic innovation. It is through a real time reconfiguration of value chain supply activities, the organization like Top Glove Corporation Berhad where high rivalry across the services are likely to be necessary. With the improved profitability dimensions secured the reconfigured roués are undertaken as the operations that business destinations must approach to yield a first come first serve strategic remedy to create greater demand. 

With the help of technological administration, the improved functions are possible to be created through cost advantage. It is owing to the independent scaling that economies are created through organizational ability through niche in features. With the computerized and cloud based storage, the information storage and effectiveness helps the sustainability to be secured. With the shift from human or man handled services to technological dependence the errors are possible to be avoided. Better effectiveness is possible to be restored so that efficiency and responsibility is possible to be ascertained. With effect to technological intervention a degree of expertise through rapid time saving solutions are proposed with the availability of resources through competitive effectiveness (Tang and Hussin, 2020). With the help of technological features the availability is created through customer better tracking facility which ensures the customers with reliability and hence adds prominently towards the sustainability approaches to business. With the automation incorporated within the supply chain and the functional objectivity, the services of company shall be effectually found through service facility. The man made services are error prone, which are possible to be manifested through the technological replacement through the effective database into cloud based effectiveness. With the help of robotics, computerized mechanism and information technologies help the efficiency in services for companies to gain competitive edge. This helps the comprehensive designing to be created through the industrial belt. 

With the sharing of knowledge and information as a new dimension of operations, Top Glove Corporation Berhad is likely to create an appropriate cultural effectiveness through the cost advantage. With the help of complete cost analysis that an integrated cost reduction is possible to create sustainable approaches in performance. With the cost advantage created that functional areas are possible to be established. The benefit of cost leadership the effective strategic manifestation enables the organizational business to be effectually benefited through sustainability (Mello, 2017). The threats of the competitive rivals to be overcome, the benefits with cost leadership are possible to be created through functional strategies. The effectiveness across the persuasion of cost leadership the strategies of competitive orientation can assist the firm to maintain sustainable objective. 

d. In one short statement, write a summary the Top Glove Corporation Berhad’s approach to Strategic Management 

From the case of Top Glove Corporation Berhad, the strategic management is found to be undertaken through sales revenue in creating enhanced demands. As the segments that the company approaches are tried to be widened, the underscoring is possible to be taken towards comprehensive orientation so that gloves are possible to be created as a crucial significant necessity across the healthcare sector. They are likely to engage in the perfect product mix with that the global demands across diverse customer needs are possible to be established. In order to produce and manufacture the scientifically designed surgical gloves, Top Glove Corporation Berhad is engaged in the 76% of the production so that enhanced contribution is created through complete approach to global image (Oswald, 2020). It is due to the sales volume enhancement that the strategic demand meeting approach is tried to be evaluated with customers across the developing as well as the developed countries. With the intensified marketing approach of strategies that Top Glove Corporation Berhad intends to ensure uptrend in sales volume through the greater revenue established and the demand growth to be undertaken. With the use of stronger performances in environmental consciousness, political contacts, latest technological innovation advancements and social need satisfaction that a competitive advantage is created across the rivals in the industry. 


There is an integrated attempt made to ensure strategic management across the specific case study of Top Glove Corporation Berhad. The gloves industry having crcial relevance across healthcare sector is tried to be used for the competitive edge through divers’ strategic implementation. On the highlight to customer expansion and need satisfaction the environmental protection and political association as stakeholder relation establish proper technological expertise to work towards assurance to sustainability (Spina and Spina, 2020). This enables the environmental analysis tools to indicate the factors adhering to which the competitive environment is addressed with feature edge in strategic choices. 

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