Profile Of The Company Visage Industries Commerce Essay Example

at their disposal, Countenance Industries aims to offer technology solutions to individuals, businesses, government agencies, and institutions across Malaysia. They currently employ approximately 60-70 people in various branches throughout Malaysia (excluding Johor, Kelantan,Terengganu,Sabah,and Sarawak). Additionally,the business has expanded its international presence through product exports to Thailand.

To ensure smooth operations and overall success,the company is divided into five departments: administration and accounting; production; sales and marketing projects;and engineering.Every department plays a vital role contributing to the company's achievementsIn order to expand internationally, the company must make decisions regarding internationalization, including market selection, timing, and entry methods. These decision-making processes are important for both research and management purposes. It takes approximately 15 months for upper management to finalize the internationalization decision. When it comes to internationalizing a business, experiential knowledge is more crucial than objective knowledge.

Section B - GREEN MANAGEMENT

The perceived cost of internationalization is strongly affected by the lack of knowledge in this area. As a result, Visage Industries Sdn.Bhd has extensive business experience when they begin to internationalize their operations. They also have above-average international experience at the time of expanding their business internationally. For Visage Industries Sdn.Bhd., after establishing a stable domestic market and conducting thorough research between the 6th and 10th year of operation, the company enters the international market. Internationalization offers numerous benefits for companies such as accessing larger markets, utilizing location economies, leveraging experiences from different markets to enhance core competencies, and developing and transferring skills between subsidiaries and headquarters.Companies undergo internationalization for various reasons, such as entering new markets, filling market niches, maintaining current clients, improving brand equity, and enhancing their financial position. Internationalization can also lead to a significant

increase in personal income for managers. In the realm of green management, companies are adopting environmentally friendly practices and offering green products in the market to meet society's needs in a sustainable way without depleting natural resources. This practice not only benefits the environment but also gives companies a competitive advantage over their rivals. Countenance Industries Sdn.Bhd., a leading provider of roofing systems in Malaysia, focuses on green product design and features. They specialize in producing professional V Truss steel roof systems that are designed by talented engineers using computerized software and the latest design codes. Additionally, customers have the option to customize their roof systems. Notably, these roofing systems are fire resistant, making them environmentally friendly products. Countenance Industries Sdn.Bhd strives to surpass international and national environmental standards by developing products that meet customers' environmental and legal requirements while minimizing environmental impact throughout the product's lifecycle.The production department of Visage Industries Sdn.Bhd ensures compliance with Local Building Codes for their products. V-Steel Metal Roofing, for instance, is manufactured using advanced equipment to achieve the desired curvature and quality coatings with high tensile materials. The company also regularly evaluates its environmental management systems, including the supply chain.

Mr. Loh, founder of Visage Industries Sdn.Bhd, highlights the importance of training and education for employees to increase awareness of environmental issues in today's business world. Training sessions are conducted once or twice a year for all staff levels. The company acknowledges the significance of using natural materials and has implemented green purchasing practices to control hazardous substances during procurement.

Furthermore, all supplied materials must comply with legal requirements and adhere to strict standards on harmful substance concentration levels. Staying

aware of political and legal systems in the country is crucial for the company. Suppliers are also required to meet standards and establish appropriate operational bodies while implementing a green product quality assurance system.

These measures ensure effective management of environmental policies throughout Visage Industries' value chain.The company prioritizes the use of environmentally friendly materials in its material selection process, taking into account customer demands, cost factors, and legal regulations. By reducing consumption and waste, they aim to minimize environmental impact and promote recyclability. In their product development process, they integrate the use of these materials to create an eco-friendly roofing system. They conduct facility assessments for suppliers and obtain certifications such as ISO 9001 2000 to enhance their reputation and ensure quality assurance. These certifications also help reduce interference from authorities, cut costs, and facilitate entry into international markets. To properly handle waste materials, they have implemented a waste management system.Countenance Industries focuses on energy efficiency in product development, with collaboration between the production and technology departments, clients, suppliers, mills, and component providers. Their goal is to enhance roofing systems by increasing energy transition rates and reducing energy consumption. They strive for environmentally friendly steel roofing products that improve energy efficiency while minimizing waste through recycling efforts. Mr. Loh stated that reclaimable materials will be recycled to reduce production costs and green management training will be conducted twice a year for employees to raise awareness about environmental issues. While these programs are currently limited to employees, they aim to evaluate the relevance, consistency, and accuracy of roofing systems before delivering them to clients in order to achieve their objectives.According to Visage Industries Sdn., in order

for Countenance Industries' goals on sustainability and energy efficiency to be effectively met, the evaluation process is necessary. Recognizing the importance of improving energy efficiency for environmental and economic benefits, Visage Industries believes it is their responsibility to protect the environment for future generations. They understand that implementing green management practices can help reduce waste and pollution from production and consumption processes. As consumer preference for environmentally friendly products grows, labels such as "degradable" and "reclaimable" significantly influence purchasing decisions. To remain competitive in the industry, companies must adapt their marketing strategies to respond to this challenge. Traditional selling methods are no longer effective; instead, green selling has become a popular trend. Consumers now prioritize eco-labels over advertising when making purchasing decisions. Visage Industries Sdn.Bhd specializes in V-Steel Metal Roofing and V-Truss Roofing System, understands this shift in consumer preference, and has adjusted its marketing strategy accordingly by emphasizing the environmentally friendly qualities of their products in advertisements. Eco-labels play a crucial role in product sales as consumers are attracted to reusable and sustainable products.
The effective use of eco-labels motivates consumers and leads to more companies adopting green management practices. Successful implementation of these practices relies on competent managers who establish goals, staff appropriately, reinforce values, ensure compliance, and make them part of the company culture. In analyzing industry competition and developing business strategies, Porter's Five Forces Model is used. This model identifies the competitive strength and attractiveness of a market through five forces: threat of new entrants, substitute products or services, bargaining power of suppliers and buyers, and competition among existing firms. Countenance Industries Sdn.Bhd needs to carefully analyze environmental factors when entering international

markets by considering these five forces outlined by the Porter Model.

Competition & Entry Mode

The level of competition in the "competitive environment" varies depending on the industry, company, and country. When making decisions about entering the international market, it is crucial for Visage Industries Sdn.Bhd. to consider competitors. They must understand their industries and rivals when developing and implementing their international business strategy.

Visage Industries faces significant competition from Winsteel Building System & Trading and Eagle Aspect Sdn.Bhd., both of which provide similar roofing solutions to local clients like Visage Industries. Ranked among the top 3 steel roof industries in Malaysia, Countenance Industries Sdn.Bhd., needs to be aware of these competitors as they may risk losing local clients and control over their local business if they focus more on export.

To maintain a balance between local and international operations, careful analysis of competitors' actions is necessary before expanding into a particular country in the international market. Additionally, since customers in the roofing industry tend to have infrequent roof replacements resulting in slow market growth compared to other industries, it is crucial for Visage Industries to differentiate itself by introducing services that customers compare based on service quality and prices.In order for Visage Industries to maintain a competitive edge in the Thailand market, they must find ways to lower production costs compared to their rivals. This will allow them to offer the best prices while still maintaining a good profit margin. Suntech, JS Steel Co., Ltd, and I-Thana Co., Ltd are potential competitors in Thailand. Suntech is particularly challenging as it is one of Thailand's largest manufacturers of metal roofing. To overcome this challenge, Visage Industries must provide higher-quality

metal roofs to win customer loyalty.

When entering an international market, considering competition is crucial. Buyers or clients also play a critical role in the international market and have high purchasing power with alternative choices beyond Visage Industries. Therefore, it is important for Visage Industries Sdn.Bhd.to invest more effort in retaining current clients at home by setting themselves apart in the industry.

Powerful customers can exert pressure on pricing and quality requirements, ultimately reducing industry profits. Additionally, customer preferences and incomes may vary among different countries. In order to outperform competitors in the market, Visage Industries Sdn.Bhd.must consider if their goods are suitable for customers in Thailand and whether customization options in the roofing system can help them do so.

The high purchaser power of the industry allows clients to easily switch to other companies that offer roofing systems due to low switching costs.Failing to understand customer preferences can lead to business failure. To ensure target customers have the ability to afford their products, the company will only export goods to countries with a high income level. Additionally, customer awareness of goods and services should also be taken into consideration as it varies and impacts purchasing power.

With an understanding of the importance of satisfying customers, Visage Industries Sdn.Bhd.must focus on a specific customer group in order to ensure long-term profitability by producing a roofing system that aligns with their preferences. Failure to adapt to consumer demands can result in business demise. Regular customer surveys are conducted by Visage Industries Sdn.Bhd.to ensure satisfaction with their services and products.

The threat of substitutes for the roofing system is low as new companies face challenges without advanced technology when attempting to replace

it. Copying the roofing system is difficult for new competitors, resulting in a low substitution rate.

The demand for eco-friendly products, such as steel and glass roofing, is on the rise due to concerns about global warming. When developing new items, Countenance Industries prioritizes green and environmentally friendly products. This has given the company a competitive advantage over its rivals because it has received recognition and awards from authorities, making it more popular in the industry.
New companies encounter difficulties in obtaining awards similar to ISO 9001 in a short time frame. Political stability also plays a crucial role in deciding whether to enter the international market, as it impacts the threat of substitute products. An unstable political situation, either in the home or target country, can impede business expansion. Government policy changes and transitions between political parties also affect regulations and national laws, potentially leading to economic downturns. The political crisis that followed Malaysia's March elections had negative repercussions on economic development, resulting in decreased consumption and a decline in output for Visage Industries Sdn.Bhd., with the aim of maximizing profits. Furthermore, changes in government leadership can jeopardize business safety without government guarantees at times. Consequently, political instability hinders product replacements in certain countries. Due to high barriers to entry, the industry experiences low new entrant threats. Potential rivals must employ advanced technology and produce superior roofing systems compared to Visage Industries Sdn.Bhd., while also meeting both government and client demands concurrently. Surpassing Visage Industries Sdn.Bhd requires significant investment due to their possession of skilled resources and established manufacturing processes.Visage Industries Sdn.Bhd, a renowned supplier in Malaysia, faces high transition costs and government regulations when expanding

internationally. The company discreetly allocates compliance expenses in its home country for both capital and operating expenditures. Challenges in international expansion include additional construction spending, investment in new equipment, research and development costs, labor expenses, and natural resource utilization. Moreover, entering the Thai market incurs additional costs related to duties, customs delays, cultural differences, legal disparities, and language barriers. These hurdles hinder new competitors from gaining market share due to regulatory restrictions imposed by domestic and partner countries. However, Visage Industries possesses an advantage over rivals with its product differentiation and strong brand reputation. This advantage allows the company to leverage cost advantages in terms of materials, expertise, and knowledge.In terms of supplier power, the high costs associated with shifting materials and labor give suppliers a significant advantage. Maintaining strong relationships with suppliers is crucial for Visage Industries, as they heavily rely on them for production needs. Suppliers have leverage due to the expensive and valuable materials they provide, such as steel which can be volatile in the global market. To maximize profits, Visage Industries must establish positive relationships with suppliers while closely monitoring steel prices to purchase materials like steel at low prices or before they increase further. The price of steel directly affects revenues, highlighting the crucial role of suppliers in the company's success. If there are many alternatives available, the supplier's power is low; however, limited options for labor make the bargaining power of suppliers high for Visage Industries Sdn.Bhd. The labor market plays a vital role in determining pay rates and can be local or international with varying qualifications, skills, and locations. Having a quality and quantity of labor market is

important in international business for efficiency, profitability, and competitiveness. In order to produce high-quality metal roofs for local and Thai customers, Countenance Industries Sdn.Bhd requires a higher quantity and quality of workers in Malaysia. They only need excellent agents in Thailand to distribute their products since establishing a factory there would be more expensive compared to Malaysia.The company plans to move its production line to countries with lower labor costs and may consider implementing backward integration in the manufacturing process to reduce reliance on suppliers. Many companies choose to become their own suppliers in order to control production costs and acquire necessary raw materials. When it comes to entering foreign markets, there are six options: exportation, turnkey projects, licensing, franchising, establishing joint ventures, or setting up wholly-owned subsidiaries. Exporting is often the preferred choice for manufacturing companies expanding globally because of lower start-up costs and the opportunity to gain experience and location economies. Countenance Industries Sdn.Bhd.also opts for exporting as its initial step for internationalization due to limited costs and risks while allowing for early profits. Visage Industries Sdn.Bhd.'s main goal in internationalizing is finding new markets for its products, with Thailand being selected as the target country. Thailand is a prominent emerging economy in Asia that imports iron and steel products. Given the demand for steel products in Thailand, Visage Industries Sdn.Bhd.decides to export its merchandise there. The exported goods include metal roofing, brackets, trusses, prison guards,and ground tackle bolts.The success of Visage Industries Sdn.Bhd.as a provider of truss and steel accessories in Thailand can primarily be attributedto their approach of exporting through foreign agents.Before entering the Thai market, the company considered different ways

to enter, such as exporting through foreign agents or partners, or directly exporting without a partner. After careful consideration, they decided that exporting through foreign agents would be the best option. Non-integrated channels like independent agents or distributors provide an easier entry into foreign markets compared to integrated corporate channels like foreign sales offices or subsidiaries (Root, 1994). Experts point out that most global trade is conducted through these independent intermediaries who have extensive knowledge of local markets, valuable connections with foreign buyers, and the ability to offer advanced marketing services (Clasen, 1991). Countenance Industries Sdn.Bhd., facing the same challenge, recognizes the importance of using foreign agents to manage their exports and target state's market cognition. Mr. Loh, Managing Director of Visage Industries Sdn.Bhd., believes that employing an export agent brings multiple benefits including specialized expertise and access to an established trade network. Additionally, utilizing an agent can be a cost-effective solution for filling skill gaps within the company while allowing them to stay focused on their core competencies.Once the decision to use an agent is made, Mr. Loh now faces the task of finding the best agent for their needs. To facilitate this process, specific selection criteria are utilized, which involve assessing the agent's marketing experience, sector knowledge, and available resources. The chosen agent should possess expertise in a foreign market that is equal to or surpasses their domestic expertise. Demonstrating market understanding and a proven track record are also essential qualities for the selected agent. Ideally, the agent will have prior experience in the same sector or related areas. Additionally, it is crucial to consider the resources held by the agent such as

staffing, premises, equipment, and financial security.

Managing agents effectively involves following necessary protocols and procedures to establish a positive and long-term relationship from the beginning of this process. Maintaining regular communication and evaluating the performance of the agent are also vital to cultivate a mutually beneficial partnership.

SECTION D - Discussion

The company aims to internationalize production of truss with its accoutrements.Mr. Loh highlights his intention to expand globally due to his company's potential and various environmental factors.Recognizing that such internationalization is complex and requires careful handling, the company acknowledges the need for cautious approach in undertaking this endeavor.