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Reducing A Countries Dependance On Foreign Goods Commerce Essay

1. The company that I have chosen, Kossan Rubber Industries Bhd, has a clear intent in accomplishing concern stableness with long-run sustainable growing. This intent is reflected in the company ‘s vision and mission statement. The company ‘s vision and mission statements are easy to understand as no slang is used. Besides, they explicitly tell the populace what the company is all about by demoing that the company is in the gum elastic fabrication industry.

By ‘striving to cut down Malaysia ‘s dependance on imported gum elastic goods ‘ and ‘navigating towards Malaysia ‘s Vision 2020 ‘ , the company shows its desire to go the chief provider in Malaysia and a chief exporter of gum elastic merchandises in the hereafter ( Kossan Rubber Industries Bhd, n.d. ) . This is a long-run finish for the concern and may assist in motivation and animating the employees to better their work as it serves as a challenge for them. Hence, this shows that the company has a clear intent in desiring to be a successful fabrication company both locally and internationally.

In add-on, the company aims in ‘keeping a healthy growing through teamwork ‘ and ‘stepping up the public assistance and professionalism of their employees ‘ ( Kossan Rubber Industries Bhd, n.d. ) . This shows that the company is concern about their employees. They value their employees and understand about the importance of working together in harmoniousness for the company ‘s wellbeing. Teamwork is an of import value as it may let the company to be a success by cut downing interior struggle among the employees. Therefore, this shows that the company has a clear intent in desiring to accomplish a stable growing by bettering its productiveness of the company through the attention for their employees.

Furthermore, the company is ‘opting to be competitory through the proviso of good services and quality merchandises ‘ , and ‘aspiring to develop more high engineering merchandises for their clients ‘ ( Kossan Rubber Industries Bhd, n.d. ) . This shows that they place great importance on their clients and that in order to be a successful fabrication company, they invariably improve their merchandises so that they can vie with their rivals. With better and more advanced merchandises, they will be able to supply excellence clients service, which would in bend bring approximately success to their company. In add-on, the company shows that they are invariably looking for ways to break their engineering in order to fix for the hereafter. Therefore, this reveals clearly that the company wants to accomplish success non merely in the present, but besides in the hereafter by carry throughing clients ‘ satisfaction.

Overall, the company shows clear intent in what it does, what it wants to accomplish and the ways to convey about the success. Besides, the intent is a long-run one and it serves as a usher for the company to remain focussed and in the right way. However, the intent can be improved by concentrating on the demands of the company ‘s investors and concern spouses, and the importance of caring for the environment. These are external factors that may impact the map of the company and therefore find its long-run growing and success.

2. Corporate civilization is the alone features of companies shared among the people working over there that affects the manner they do things and distinguish them from the other companies. In Kossan, good attention for employees, good relationship with stockholders, first-class client service and quality merchandises, and being competent and advanced are emphasised.

Kossan believes that in order to turn and make a interactive consequence, they have to care for their employees. They are portion of the company that aid to do the concern successful. Hence, the company works to bring forth a competent work force that is able to work together as a squad and portion similar ends. Human capital direction programme has been developed to engage and retain the right people, nurture endowments and groom hereafter leaders ( Kossan Rubber Industries Bhd, n.d. ) . Trainings are besides provided to develop their employees ( Kossan Rubber Industries Bhd, n.d. ) . Besides, the company cares for the employees ‘ safety by supplying them a safe workplace and insurance coverage ( Kossan Rubber Industries Bhd, n.d. ) . Adjustment installations are besides provided for foreign and out-stationed workers ( Kossan Rubber Industries Bhd, n.d. ) . Furthermore, they believe in presenting a right mix of work and drama in the administration ( Kossan Rubber Industries Bhd, n.d. ) . They treat everyone as a household. This shows that the company places great importance on their employees and advocates a healthy and balanced corporate civilization by constructing a all-around and caring corporate entity.

The company besides understands about the importance of holding a good relationship with their stockholders. To accomplish this, the company tries to keep an active degree of duologue and communicating with their stockholders as they find that this will cut down any misinterpretations or struggles among the different parties ( Kossan Rubber Industries Bhd, n.d. ) . Besides, stockholders will be able to supervise their investing more closely with all the accurate information channelled and therefore are more confident with the company ( Kossan Rubber Industries Bhd, n.d. ) .

Furthermore, the company values their clients and attentions for their involvements by keeping first-class client service and rehearsing professionalism. They have put in attempt and use assorted ways to guarantee that their clients are satisfied with their merchandises and services offered. For case, they adopt the shortest possible clip to react to clients ‘ feedbacks and assure seasonably bringing and good quality service ( Kossan Rubber Industries Bhd, n.d. ) . With great client attention, they believe that they will acquire good acknowledgment and strong trust from their clients and providers, which finally will guarantee great profitableness to the company.

To offer quality merchandises and guarantee that Kossan achieves to be “ A Name You Can Trust ” , the company invariably monitor their work ( Kossan Rubber Industries Bhd, n.d. ) . They put in much attempt in keeping and bettering their criterions to acquire the trust from all the parties they are working with. They focus on Research and Development ( R & A ; D ) and Quality Control ( Q.C. ) to guarantee ongoing testing and development of merchandises and to take down overall production cost through ‘more consistent and stable production flows, minimal idle production times, and decreased production culls and wastages ‘ ( Kossan Rubber Industries Bhd, n.d. ) . Besides, the company employs new engineering to cultivate a knowledge-based work force and advance better communicating with all relevant parties. With the usage of advanced engineerings and R & A ; D, the company seeks to be competent and advanced.

Year

2007

2008

2009

Number of managers on the board

9

9

9

Number of Non-Executive Independent Directors

3

3

3

3.

The company by and large practises good corporate administration. The board of the company is led by nine managers in which four are executive managers, a non-independent non-executive manager, three independent non-executive managers and an alternate manager ( Kossan Rubber Industries Bhd, n.d. ) . This shows a balanced figure of executive direction and independent non-executive managers in the board. The independent non-executive managers provide indifferent and independent positions, advice and opinion, cut downing struggles of involvement between direction and stockholders. Furthermore, there is a division of duties at the caput of the company. The functions of the Chairman and the Managing Director are separated and clearly defined. This ensures that there is a balance of power and authorization. However, due to the household relationships between the executive managers and the non-independent non-executive manager, there may be a hazard that the board is dominated by a little group. This shows hapless corporate administration.

To heighten the managers ‘ cognition in developments relevant to the company, they attended the Mandatory Accreditation Programmed ( MAP ) prescribed by Bursa Malaysia ( Kossan Rubber Industries Bhd, n.d. ) . Besides, orientation programme and preparations are offered to them ( Kossan Rubber Industries Bhd, n.d. ) . Furthermore, the managers meet on a quarterly footing and this allows seasonably coverage of the public presentation of the company ( Kossan Rubber Industries Bhd, n.d. ) . Prior to the Board meetings, an docket and a set of Board documents are distributed so that managers are prepared for treatment and informed determination devising ( Kossan Rubber Industries Bhd, n.d. ) . This allows the meetings to run swimmingly and efficaciously. The Board is besides on a regular basis updated and advised on new statutory and regulative demands associating to responsibilities and duties of managers ( Kossan Rubber Industries Bhd, n.d. ) . This proviso of information reflects good corporate administration as sufficient and relevant information will assist in transporting out proper inadvertence.

Besides, the company shows good corporate administration as the nomination, wage and audit commissions are comprised chiefly of the independent non-executive managers. The assignments to the Board are made in conformity with the regulative demands ( Kossan Rubber Industries Bhd, n.d. ) . The managers are re-elected every twelvemonth every bit good ( Kossan Rubber Industries Bhd, n.d. ) . The wagess and benefits for the managers are related to their parts to the company ‘s overall public presentation ( Kossan Rubber Industries Bhd, n.d. ) . The inside informations of the managers ‘ wage are disclosed in the company ‘s one-year study. Furthermore, the managers ‘take duty to show a balanced and apprehensible appraisal on the company ‘s place and chances ‘ ( Kossan Rubber Industries Bhd, n.d. ) . The board besides maintains a system of good internal control, including hazard appraisals, and the demand to reexamine its effectivity invariably to protect the company ‘s assets and stockholders ‘ investings ( Kossan Rubber Industries Bhd, n.d. ) . A formal and crystalline relationship with the hearers has besides been established by the company ( Kossan Rubber Industries Bhd, n.d. ) .

In add-on, the company informs the stockholders and investors about concern affairs impacting the company on a regular basis. To maintain them updated about the developments of the company, duologues with investing analysts and fund directors are held ( Kossan Rubber Industries Bhd, n.d. ) . The Annual General Meeting besides allows communicating with stockholders to show them the advancement and public presentation of the concern of the company ( Kossan Rubber Industries Bhd, n.d. ) . Stockholders are encouraged to take part in the inquiry and reply session where the board of managers and external hearers will be available to reply the inquiries raised ( Kossan Rubber Industries Bhd, n.d. ) . The company ‘s web site besides allows the stockholders to update their information about the company ‘s activities ( Kossan Rubber Industries Bhd, n.d. ) .

4. Harmonizing to the Bursa Malaysia Corporate Social Responsibility ( CSR ) Framework, the four chief focal countries are the workplace, community, market place and environment.

Kossan works to better the status of the workplace for the employees ‘ public assistance. The company believes that human capital development is really of import to guarantee that the employees have the relevant accomplishments and cognition in guaranting sustainable concern growing. So, preparations are conducted to develop the employees to better their quality of work and workplace ( Kossan Rubber Industries Bhd, n.d. ) . As the company hires foreign and out-stationed workers, adjustment installations with all basic comfortss to guarantee comfort and hygiene are provided ( Kossan Rubber Industries Bhd, n.d. ) . Besides, the company complies purely with the Occupational Safety and Health Act ( Kossan Rubber Industries Bhd, n.d. ) . It forms a Work Safety Committee to develop policies to keep a safe and healthy workplace so as to forestall the employees from any hurts ( Kossan Rubber Industries Bhd, n.d. ) . The employees are besides protected under the assorted types of insurance. Furthermore, regular preparations, meetings, reviews and bar programmes are performed to guarantee that the workplace is safe and healthy, and to inform the employees about its importance ( Kossan Rubber Industries Bhd, n.d. ) .

As companies live within the community, both are dependent on each other. Hence, affecting in community issues will profit both parties. Kossan recognises this and therefore gives out contributions to assorted charitable organic structures and schools for their regular disbursals and edifice financess ( Kossan Rubber Industries Bhd, n.d. ) . In fact, the company should be more socially responsible in this country by lending more to the community. Besides donating money, the company can donate baseball mitts to states where medical attending is needed, for illustration, due to the eruption of war. Besides, they can offer scholarships to supply instruction to the under-privileged 1s. Proper instruction ensures long term benefits to the people as cognition will enable them to gain money to prolong their life themselves.

The market place is where of import stakeholders – the stockholders, providers, and clients are found. Kossan takes good attention of their stakeholders. Good communicating with their stockholders is maintained and accurate information about the company is provided so that the stockholders are able to supervise their investings more closely ( Kossan Rubber Industries Bhd, n.d. ) . In add-on, the company maintains first-class client service and practises professionalism to guarantee great client satisfaction ( Kossan Rubber Industries Bhd, n.d. ) . They invest in R & A ; D and Q.C. to better the quality of their merchandises ( Kossan Rubber Industries Bhd, n.d. ) . Besides, one-year satisfaction studies are conducted to do the necessary corrections and betterments to their merchandises and services so that high degree of trust is maintained in their stakeholders ( Kossan Rubber Industries Bhd, n.d. ) .

Last, the environment should be protected as they are portion of the external factors that may impact the company. To better on its societal duty, Kossan should lend more in protecting the environment. As the environment is progressively harmed by pollution, the company can happen ways to cut down their energy use so that less coal will be burnt to bring forth energy, which can lend to planetary heating. Furthermore, they can research methods to cut down their nursery gas emanations that can damage the clime.

By seting more attempt in caring for the community and the environment, the company will be able to better its societal duty.

5. Cardinal fiscal informations of Kossan Rubber Industries Bhd.

Beginning: Kossan Rubber Industries Bhd Annual Reports 2007-2009, hypertext transfer protocol: //www.kossan.com.my/RubberDivision/main.htm

a ) From 2007 to 2008, the fiscal public presentation of Kossan had improved as can be seen from the addition in its gross revenues by 27.69 % , operating net income by 21.71 % and net net income by 7.44 % . Besides, the little addition in the hard currency flow from operations by 0.03 % shows that the company has addition in its profitableness. However, there was besides an addition in its liabilities and hard currency flow from puting by 24.12 % and 25.68 % severally. These were likely resulted from the enlargement and upgrading of the company as shown in the rise of 29.8 % in the net touchable assets ( Adnan, 2007 ) . The lessening in the hard currency flow from funding by 87.79 % was possibly because of the refund in debt.

From 2008 to 2009, there was an betterment in the net net income by 13.8 % and the operating net income by 13.85 % but a lessening in the gross revenues by 6.1 % . The addition in net incomes was likely due to the industry of better merchandise mix and addition in the demand for nitrile baseball mitts ( Kossan Rubber Industries Bhd, n.d. ) . Meanwhile, the lessening in gross revenues was likely resulted by the economic downswing, in which the norm selling monetary value of the baseball mitt declined due to take down natural stuffs costs, forex losingss and hapless demand for proficient gum elastic merchandises ( TRP ) ( Hamzah and Chang, 2010 ) . Furthermore, in May 2009, one of the Kossan fabrication workss was burnt down, impacting the production of baseball mitts ( Yeow, 2009 ) . There was a encouragement in the hard currency flow from operation by 27.44 % indicates that the ability of the company in bring forthing net income has increased greatly. Besides, the hard currency flow from funding shows a negative value, which was likely due to the refund of debt. This is good as it reduced the entire debt of the company, as shown in the informations, by 6.86 % .

B ) The company ‘s gross revenues and net incomes will likely go on to turn in 2010-2011 as it is apparent from the lifting tendencies in the old old ages. Besides, there is an addition in wellness consciousness around the universe due to the eruption of assorted diseases like H1N1, ensuing in the lifting demand for gum elastic baseball mitts ( Alibaba.com, 2010 ) . The company has besides started on its enlargement program since 2007 to increase its production ( Tan, 2007 ) . Furthermore, the company has addition in its investing in the R & A ; D sector to increase the quality of its merchandises ( The Star, 2007 ) . This would increase the clients ‘ satisfaction degree and therefore better its gross revenues and net incomes.

6. a ) The day-to-day portion monetary value of Kossan Rubber Industries Bhd. in April 2010.

B ) The day-to-day motion of the Kuala Lumpur Composite Index ( FBM-KLCI ) .

degree Celsiuss ) On 1 April 2010, the stock monetary value of Kossan started rather high, with the highest at RM 8.25 on 7 April 2010. It so bit by bit decreased to the lowest at RM 7.56 on 13 April. Another dip was on 19 April, at RM 7.68. Following this, the monetary value rose and remained stable at about RM 7.9 towards the terminal of the month. The diminution in the monetary values on 13 April and 16 April was besides shown in the shutting monetary value of the Kuala Lumpur Composite Index ( KLCI ) , where the lowest was at RM 1326.67 on 16 April.

The bead in the stock monetary value of Kossan on 13 April was due to the lifting in the ringgit against the US dollar ( Murugiah, 2010a ) . Hence, this reduces the net income from gross revenues. Besides, due to the addition in the demand for gum elastic merchandises in Japan, the cost of natural stuffs rose because of the insufficiency of supply ( Murugiah, 2010a ) . Furthermore, the deficiency of gas supply, a chief constituent of production, contributed to the surplus in demand for gum elastic merchandises ( Tan, 2010b ) . As a consequence of higher merchandises monetary values, stock monetary values declined due to hapless gross revenues. On 16 April, due to the fraud committed by Goldman Sachs Group Inc on subprime mortgages, the regional markets crushed, impacting the shareprice of Kossan ( Murugiah, 2010b ) .

7. The environmental forces that will impact Kossan are the political and legal factors, economic factors, societal factors, technological factors and competitory force.

For political and legal factors, the company has to follow with the Torahs implemented by the Malayan authorities in order to run good. For case, the Standard Malaysia Glove Product Certification required that the baseball mitts manufactured are low in protein and pulverization ( Standard Malaysian Glove, 2009 ) . As Kossan besides has concern overseas, they have to conform to the ordinances such as the US Food and Drug Administration ( FDA ) and the Brazilian quality control and quality criterion ( Yeow, 2009b ) . In add-on, due to the employment of foreign workers, the company has to adhere to the employment Torahs such as the Employment of Foreign Workers Act. Other statute laws include the Malayan Code on Corporate Governance and Bursa Malaysia regulations.

The economic factors may impact the gross revenues of the company. For case, the grasp of the ringgit against US dollar has reduced the profitableness of Kossan in 2009 ( Tan, 2010b ) . The recession in market due to the fraud committed by Goldman Sachs Group Inc has besides affected the public presentation of the company ( Murugiah, 2010b ) . Besides, the addition in the cost monetary value of the natural stuffs due to the deficient supply of merchandises and the deficiency of gas posed disadvantages to the company ( Murugiah, 2010a ; Tan, 2010b ) . It can be seen that in recent old ages, the company was affected by negative economic effects.

The societal factors include the population size and instruction degree. Due to the gross revenues of gum elastic merchandises to abroad, particularly to China, where the population size is big, the company would derive high net income. Furthermore, owing to the addition consciousness in the wellness sector, the demand for gum elastic baseball mitts additions ( Alibaba.com, 2010 ) . This is particularly during the eruption of diseases such as the H1N1 grippe ( Tan, 2010b ) . As a consequence, these factors have a positive impact on the company.

The technological factors are of import for the company as it would assist to cut down the fabrication costs and better fulfill the altering demand of clients. Hence, it is critical that the company embark on the R & A ; D sector so that they remain competitory. Kossan has invested in the R & A ; D and Q.C. to invariably better the quality of their merchandises and to develop diversified merchandises ( Kossan Rubber Industries Bhd, n.d. ) . The production of nitrile baseball mitts, which can cut down the chemical allergic reaction, is besides increasing to accommodate the demands of all the clients ( Kossan Rubber Industries Bhd, n.d. ) .

The competitory forces may besides impact the company. The menace of new entry may likely be low as the latex monetary value rises ( Murugiah, 2010a ) . The inability to accomplish economic systems of graduated table would deter the new houses to come in the industry. The menace of replacements would be absent as there is no existent replacement for baseball mitts. The purchaser power is likely to be high because of the increasing wellness consciousness ( Alibaba.com, 2010 ) . The supplier power may stay changeless due to the deficiency of replacement merchandises. The competition among houses is really high as the gum elastic merchandises are standardised. Hence, these five competitory forces may actuate the company to endeavor harder to last in the industry.

Despite negative environmental factors, the gum elastic industry would be likely to last as the positive factors encourage good gross revenues.

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