Hartalega Holdings Berhad Strategic Management
1. Introduction
Hartalega Holdings Berhad is a gloves manufacturer and began their business with the vision of produce gloves that protect life (Hartalega, 2013). Hartalega has experienced tremendous growth in the market and there are many issues and problems that faced by them.
The first issue that faced by Hartalega is fluctuation of US dollar (CIMB Research Report, 2011). USA is a key market for glove industry and has contributing part of the market share of Malaysian industries. Fluctuation on US dollar has affected the margins of the company. Besides, the economic conditions have influence the glove industry will continue to be unstable due to rises in material and production costs.
Moreover, high latex price also is one of the issue that faced by Hartalega (CIMB Research Report, 2011). Latex prices continue to be volatile would bring an effect to its margin. Supply of latex may be reduced due to the weather conditions. During the dry season in Thailand and Malaysia, it would decrease the production of latex. Thus, price of latex during dry season will be slightly higher compare to other season.
Furthermore, Hartalega faced the issue about labor. The recent governments policies about foreign labor have cause a great concern for the gloves industry. The gloves industry has voiced out their concerns towards this issue because hired labor would have an impact on the manufacturers’ costs. Besides, more and more glove manufacturers are using automation and it will decrease the reliance on manpower.
Next, pollution is one of the most important issues that faced by Hartalega as their company’s reputation has affected by the negative news or rumours. Hartalega was received complaints from the Deputy Minister in the Prime Minister’s Dept and a few residents of Taman Suria and claim that they are causing air and water pollution. Hartalega deny all the accusation and declare that they are operating legally according to the Malaysian environment regulatory standard
Hartalega Holdings Berhad is a gloves manufacturer and began their business with the vision of produce gloves that protect life (Hartalega, 2013). Hartalega has experienced tremendous growth in the market and there are many issues and problems that faced by them.
The first issue that faced by Hartalega is fluctuation of US dollar (CIMB Research Report, 2011). USA is a key market for glove industry and has contributing part of the market share of Malaysian industries. Fluctuation on US dollar has affected the margins of the company. Besides, the economic conditions have influence the glove industry will continue to be unstable due to rises in material and production costs.
Moreover, high latex price also is one of the issue that faced by Hartalega (CIMB Research Report, 2011). Latex prices continue to be volatile would bring an effect to its margin. Supply of latex may be reduced due to the weather conditions. During the dry season in Thailand and Malaysia, it would decrease the production of latex. Thus, price of latex during dry season will be slightly higher compare to other season.
Furthermore, Hartalega faced the issue about labor. The recent governments policies about foreign labor have cause a great concern for the gloves industry. The gloves industry has voiced out their concerns towards this issue because hired labor would have an impact on the manufacturers’ costs. Besides, more and more glove manufacturers are using automation and it will decrease the reliance on manpower.
Next, pollution is one of the most important issues that faced by Hartalega as their company’s reputation has affected by the negative news or rumours. Hartalega was received complaints from the Deputy Minister in the Prime Minister’s Dept and a few residents of Taman Suria and claim that they are causing air and water pollution. Hartalega deny all the accusation and declare that they are operating legally according to the Malaysian environment regulatory standard