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Hartalega: Taking Off The Gloves Case Solution & Answer

Hartalega: Taking Off The Gloves Case Solution

Executive Summary

The company called Paralegal is managed by Mr. Kuan and his two sons: Kuan Mun Leong and Kuan Mun Keng. The company is based in Malaysia and operates as a public listening company. As time passed by; the company became successful and revolutionized the manufacturing of gloves. The company focused on attaining the competitive advantage and invented the first glove in the world that is lightweight Nitrile in 2005.The vision of the company is to manufacture safe, best quality and user-friendly gloves for customers, so that people who work in an open and challenging environment, could work efficiently and their work does not get affected and diverted by wearing gloves. Hartalega is managed by individuals who are creative and have expertise in making strategies.This case is based on learning key concepts of strategies and frameworks related to the analysis. The analysis is based on the internal and external environment of the company.

The company has been exporting the final products immediately after the establishment. Now the company holds 18% of the market share in the United States of America. The company exports 100% of products globally to regions like: Americas, the Middle East, Asia Pacific, Africa, and Europe. The products are for healthcare practitioners, food processing workers, lab workers and other professionals. Their products are known for their consistency in quality and design innovation. Besides that, the objectives of the case study includes:Analyzing the competitive strategy, Identifying the challenges faced by the company, Competitive strategy, Factors to expand and Growing the business, Developing a multinational strategy, Choosing between (OEM) and the private label manufacturing (OBM) business model and Deciding on the adoption of professional management rather than family management.

However, the competitors in the market have a benefit of economies of scale and investment in research and development,and quality to produce the same value as Hartalega. Therefore, the company needs new techniques and applications  for implementing strategies and principles, which are based on the analysis.Therefore, this report is based on internal strategic analysis, which is a SWOT analysis that covers all the internal and external factors, value chain analysis and financial analysis of the company. Moreover, there are factors in the external environment; therefore, the external strategic analysis is conducted by macro-environment analysis, Porter’s five forces analysis, VRIO analysis, and Competitors Matrix Table. However, the competitive advantage of the company is based on its strengths and techniques, as well commitment to the development and creativity of the products.

Based on the company’s financial analysis; the CFO must focus on debt to equity ratio and inflation,as they are risky for the company’s financial performance. Besides that, other ratios, such as:liquidity ratio, profitability ratio and efficiency ratio are also decreasing, which is a matter of concern that should be evaluated by the company on an urgent basis.

 Introduction

This case is based on the company, called Hartalega, which was founded in 1988. The operations of the company are to manufacture gloves.The company is managed by Mr. Kuan and his two sons: Kuan Mun Leong and Kuan Mun Keng. The company is based in Malaysia, and it operates as a public listening company.As the time passed by, the company became successful and revolutionized the manufacturing of gloves. The company focused on attaining the competitive advantage and invented the first glove in the world, which is lightweight Nitrile in 2005. This became a product that revolutionized the industry and resulted in a shift in demand, globally.The company’s vision is to become the number one company in the world. However, the main focus is on quality, innovation and customer satisfaction. Besides that, the products must be manufactured after considering the social as well as the environmental concerns.

The company has been exporting the final products immediately after the establishment. Now the company holds 18% of the market share in the United States of America. The company exports 100% of products globally to regions, like:the Americas, the Middle East, Asia Pacific, Africa and Europe. The products are for healthcare practitioners, food processing workers, lab workers and other professionals. Their products are known for their consistency in quality and design innovation. Therefore, the vision of the company is to manufacture safe, best quality and user-friendly gloves for customers, so that the people who work in an open and challenging environment, could work efficiently and their work wouldn’t get affected and diverted by wearing gloves.

Hartalega is managed by individuals who are creative and have expertise in making strategies. This report is based on internal strategic analysis, which is a SWOT analysis that covers all the internal and external factors, value chain analysis and financial analysis of the company. Moreover, there are factors in the external environment; therefore, the external strategic analysis is conducted by macro-environment analysis, Porter’s five forces analysis, VRIO analysis and Competitors Matrix Table 

Objectives of the case study

This case is based on the learning key concepts of strategies and frameworks related to the analysis. The analysis is based on the internal and external environment of the company.Besides that, the objectives of the case study, include:

  • Analyzing the competitive strategy.
  • Identifying the challenges faced by the company.
  • Competitive strategy.
  • Factors to expand and grow the business.
  • Developing a multinational strategy.
  • Choosing between (OEM) and the private label manufacturing (OBM) business model.
  • Deciding the adoption of professional management rather than family management.

Internal Analysis

To achieve the case study’s objectives; the internal environment of the company is evaluated to identify the factors. The analysis is conducted to identify the loopholes through SWOT analysis, Value chain analysis and financial analysis.

Value Chain Analysis

Value chain analysis can help the company in finding the loopholes and areas where itshould focus, to achieve an efficiency. There are four factors of value chain analysis, which are: quality, flexibility, speed and efficiency, and sustainability.

Quality

Quality is the main goal of the company, which is diversified in its culture, for producing better quality products. However, two departments are directly responsible for the production of the highest quality products, which are: designing and development and operations department that follows the directions of the designing department. The company consistently provides high-quality products, globally, with the help of strict policies and IS Os as well as compliance of the requirements.

Flexibility

The company’s ability of fulfilling the market demand, for both Nitrile and Latex gloves, is important to achieve success as a producer. All the production lines are interchangeable as required by the customers and costs. This is how the company can fulfill the requirements of changing market patterns, and can support its status in the global industry, in order to become a global leader………

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