Reducing A Countries Dependance On Foreign Goods Commerce Essay Example

long-term guide and keeps the company focused. However, to further enhance the purpose, it is important to prioritize the needs of investors and partners while also acknowledging environmental care. These external factors play a significant role in determining the company's direction and long-term growth.

Corporate culture is the distinct qualities of a company that shape their operations and differentiate them from others. Kossan focuses on caring for employees, maintaining strong stakeholder relationships, providing excellent customer service and high-quality products, and promoting competency and innovation. The company recognizes that prioritizing employee well-being is vital for growth and positive outcomes. A skilled workforce that can collaborate effectively and share common goals is crucial to the company's success. To achieve this, Kossan has implemented a human capital management program to attract and retain suitable personnel, nurture talent, and develop future leaders (Kossan Rubber Industries Bhd, n.d.).

) . The company also provides training for their employees to enhance their skills ( Kossan Rubber Industries Bhd, n.d. ) . Additionally, the company ensures the safety of its employees by offering a secure workplace and insurance coverage ( Kossan Rubber Industries Bhd, n.d. ) . Moreover, there are also accommodation facilities available for foreign and out-stationed workers ( Kossan Rubber Industries Bhd, n.d.

Kossan Rubber Industries Bhd (n.d.) values the integration of both work and drama in their administration, while also fostering a familial atmosphere among all individuals.

The company shows its dedication to putting employees first and fostering a positive corporate culture by creating a comprehensive and caring organization. Additionally, the company values the significance of maintaining strong relationships with stakeholders. To achieve this, the company actively communicates and engages in dialogue

with stakeholders, acknowledging that this will reduce misunderstandings or conflicts between parties (Kossan Rubber Industries Bhd, n.d.). Moreover, by providing shareholders with accurate information, they can closely monitor their investments and have greater confidence in the company (Kossan Rubber Industries Bhd, n.d.).

Additionally, the company places importance on its clients and their engagement by delivering top-notch client service and upholding professionalism. They strive to guarantee client satisfaction through different approaches including prompt response to feedback, timely delivery, and provision of high-quality service (Kossan Rubber Industries Bhd, n.d.). The company believes that by dedicating themselves to exceptional customer care, they will establish trust and earn recognition from both clients and suppliers, ultimately enhancing the company's profitability.

To maintain its reputation as "A Name You Can Trust," Kossan Rubber Industries Bhd consistently monitors its work (Kossan Rubber Industries Bhd, n.d.). The company makes extensive efforts to uphold and improve standards in order to gain the trust of all stakeholders. This is achieved through a focus on Research and Development (R&D) and Quality Control (Q.C.).

) The company aims to ensure continuous testing and development of products and reduce overall production costs through "more consistent and stable production flows, minimal idle production times, and decreased production rejects and wastages" (Kossan Rubber Industries Bhd, n.d.). They also utilize new technology to cultivate a knowledge-based workforce and improve communication with all relevant parties. By employing advanced technology and research and development (R&D), the company strives to be competitive and innovative. Furthermore, they generally practice good corporate governance.

Year Number of managers on the board Number of Non-Executive Independent Directors 2007 9 3 2008 9 3 2009 9 3;

The company's board is made up of

nine managers, which includes four executive managers, one non-independent non-executive manager, three independent non-executive managers, and an alternate manager (Kossan Rubber Industries Bhd, n.d.). This composition guarantees a fair representation of both executive directors and independent non-executive managers. Having independent non-executive managers promotes fairness by offering unbiased advice and opinions while minimizing conflicts of interest between management and shareholders.

Additionally, the company has a well-defined division of roles among its top leaders, including the Chairman and Managing Director. This setup ensures a fair distribution of power and authority. However, there is a potential issue with some executive managers having personal relationships with a non-independent non-executive manager. This situation poses a risk of the board being controlled by a small group, indicating shortcomings in corporate governance.

In order to enhance the managers' awareness of company-related developments, they participated in the Mandatory Accreditation Program (MAP) mandated by Bursa Malaysia (Kossan Rubber Industries Bhd, n.d.). Additionally, orientation programs and preparations are provided to them (Kossan Rubber Industries Bhd, n.d.).

Furthermore, the managers meet quarterly to cover the company's performance (Kossan Rubber Industries Bhd, n.d.). Prior to the Board meetings, a schedule and a set of Board documents are distributed to ensure managers are prepared for discussion and decision making (Kossan Rubber Industries Bhd, n.d.). This ensures smooth and effective meetings. The Board is also regularly informed and advised on new statutory and regulatory requirements applicable to their duties and responsibilities (Kossan Rubber Industries Bhd, n.d.).

This provision of information showcases strong corporate governance practices, as it emphasizes the importance of providing adequate and relevant information for effective oversight. Furthermore, the company demonstrates good corporate governance by predominantly appointing independent non-executive directors to

the nomination, remuneration, and audit committees. The appointments to the Board align with regulatory requirements (Kossan Rubber Industries Bhd, n.d.).

Kossan Rubber Industries Bhd (n.d.) states that the company's managers are re-elected every year and their compensation and benefits are based on their contributions to the company's performance. For detailed information on the managers' compensation, refer to the company's annual report.

Furthermore, the managers of Kossan Rubber Industries Bhd are responsible for providing a fair and clear assessment of the company's position and opportunities (Kossan Rubber Industries Bhd, n.d.). The board also ensures the implementation of a strong internal control system that includes ongoing risk assessments to protect the company's assets and shareholders' investment (Kossan Rubber Industries Bhd, n.d.). Additionally, Kossan Rubber Industries Bhd has established an official and transparent partnership with auditors (Kossan Rubber Industries Bhd, n.d.).

The company regularly informs stockholders and investors about concerns affecting the company. They hold dialogues with investment analysts and fund directors to keep them updated on company developments (Kossan Rubber Industries Bhd, n.d.). Additionally, the Annual General Meeting provides an opportunity to communicate with stockholders and showcase the company's progress and performance (Kossan Rubber Industries Bhd, n.d.). Stockholders are encouraged to participate in the question and answer session where the board of managers and external auditors will be present to address raised inquiries (Kossan Rubber Industries Bhd, n.d.).

) . The company's website also enables shareholders to update their information about the company's activities (Kossan Rubber Industries Bhd, n.d.). According to the Bursa Malaysia Corporate Social Responsibility (CSR) Framework, the workplace, community, marketplace, and environment are the four main areas of focus. Kossan aims to enhance the workplace for the welfare

of its employees. The company recognizes the significance of human capital development in ensuring sustainable business growth, as it believes that employees need relevant skills and knowledge.

The company, Kossan Rubber Industries Bhd, conducts preparations to develop employees' quality of work and workplace (n.d.). These preparations also include providing adjustment installations with basic comforts for foreign and out-stationed workers to ensure comfort and hygiene (n.d.). Additionally, the company strictly complies with the Occupational Safety and Health Act (n.d.).

Kossan Rubber Industries Bhd takes measures to maintain a safe and healthy workplace through the establishment of a Work Safety Committee and the development of policies (Kossan Rubber Industries Bhd, n.d.). The company also provides insurance protection to its employees and conducts regular training, meetings, reviews, and prevention programs to promote workplace safety and educate employees on its significance (Kossan Rubber Industries Bhd, n.d.).

As companies operate within communities, they are mutually dependent. Therefore, involvement in community matters benefits both parties. Kossan acknowledges this and hence provides contributions to various charitable organizations and schools for their regular expenses and construction funding (Kossan Rubber Industries Bhd, n.d.).

The company should increase its social responsibility in this country by not only donating money but also lending support to the community. For instance, they can donate baseball mitts to states affected by war where medical assistance is required. Additionally, offering scholarships to the underprivileged ensures access to education. This will have long-term benefits as knowledge empowers individuals to earn a living and sustain their own lives.

The marketplace is where important stakeholders - the stockholders, suppliers, and customers are found. Kossan is attentive to their stakeholders by ensuring good communication with stockholders and

providing accurate information for closer monitoring of their investments (Kossan Rubber Industries Bhd, n.d.). Additionally, the company prioritizes excellent customer service and professionalism to achieve high customer satisfaction (Kossan Rubber Industries Bhd, n.d.).

Investment is made in R&D and QC to improve the quality of merchandise by Kossan Rubber Industries Bhd (n.d.). Furthermore, one-year satisfaction studies are conducted for necessary improvements in their merchandise and services, thereby maintaining a high level of trust among stakeholders (Kossan Rubber Industries Bhd, n.d.). Finally, the company recognizes the importance of protecting the environment as it is an external factor that can affect operations.

To improve its social responsibility, Kossan should prioritize environmental preservation. With the escalating pollution and resulting harm, the company can investigate methods to decrease energy usage, consequently reducing coal burning for energy production and alleviating global warming. Moreover, they can conduct research to minimize greenhouse gas emissions that have a detrimental effect on climate. By dedicating more resources towards community and environmental well-being, the company will enhance its social responsibility. Crucial financial data of Kossan Rubber Industries Bhd.

From 2007 to 2008, Kossan Rubber Industries Bhd's fiscal performance showed improvement. Sales increased by 27.69%, operating net income increased by 21.71%, and net income increased by 7.44%. Cash flow from operations also slightly improved by 0.03%, indicating better profitability. However, liabilities and cash flow from investing both experienced increases of 24.12% and 25.68% respectively. These increases were likely a result of the company's expansion and upgrading, as evidenced by the 29.8% rise in net tangible assets (Adnan, 2007). The decrease of 87.79% in cash flow from funding was likely due to debt repayment.

In the following year, from 2008 to

2009, there was a positive change with a13.8% increase in net income and a13.85% increase in operating net income; however, sales decreased by6%.

The increase in net incomes was likely caused by the industry's improved merchandise mix and increased demand for nitrile gloves (Kossan Rubber Industries Bhd, n.d.). Conversely, the decrease in sales can be attributed to the economic downturn, which resulted from lower raw material costs, forex losses, and poor demand for technical rubber products. These factors contributed to a decline in the average selling price of gloves (TRP) (Hamzah and Chang, 2010). Additionally, glove production was affected when one of Kossan's manufacturing plants was destroyed by fire in May 2009 (Yeow, 2009).

The operations of the company have improved, as evidenced by a significant 27.44% increase in hard currency flow. Additionally, the negative hard currency flow from funding suggests that the company has been able to reduce its debt by 6.86% through debt repayment. The company's sales and profits are expected to continue growing in 2010-2011, as indicated by the upward trends in previous years. Furthermore, the global increase in health awareness, spurred by outbreaks of diseases like H1N1, has led to a higher demand for rubber gloves (Alibaba.com, 2010).

In 2007, the company initiated an enlargement program to enhance its production (Tan, 2007). Additionally, there was an increase in investment in the R sector to improve the quality of its products (The Star, 2007). These efforts were aimed at increasing customer satisfaction and consequently improving sales and profits. The daily share price of Kossan Rubber Industries Bhd. in April 2010 and the daily movement of the Kuala Lumpur Composite Index (FBM-KLCI).

On April

1, 2010, Kossan's stock price began high, reaching its highest point at RM 8.25 on April 7, 2010. However, it gradually declined and reached its lowest point at RM 7.56 on April 13. Another dip occurred on April 19 at RM 7.68. After this, the price of the stock rose again and remained stable around RM 7.9 towards the end of the month.

The closing price of the Kuala Lumpur Composite Index (KLCI) on 13 April and 16 April also reflected the decrease in values, reaching a low of RM 1326.67 on 16 April. The drop in Kossan's stock price on 13 April was caused by the strengthening of the ringgit against the US dollar (Murugiah, 2010a), resulting in lower profit from sales. Additionally, the increased demand for rubber products in Japan led to a rise in the cost of raw materials due to insufficient supply (Murugiah, 2010a). Moreover, the shortage of gas supply, an essential component in production, contributed to a surplus in demand for rubber products (Tan, 2010b). Consequently, poor sales led to a decline in stock prices due to higher product prices.

On 16 April, the regional markets were severely affected by the fraud committed by Goldman Sachs Group Inc on subprime mortgages, leading to a decrease in the share price of Kossan (Murugiah, 2010b). Various environmental forces such as political and legal factors, economic factors, societal factors, technological factors, and competitive force will affect Kossan. To comply with the laws enforced by the Malaysian government, the company must adhere to certain regulations. For example, the Standard Malaysia Glove Product Certification mandates that the gloves produced should have low levels of protein and powder

(Standard Malaysian Glove, 2009).

Kossan, being a company with international operations, must comply with various regulations such as the US Food and Drug Administration (FDA) and the Brazilian quality control and quality criterion (Yeow, 2009b). They also have to follow employment laws like the Employment of Foreign Workers Act due to employing foreign workers. Additional legislations include the Malaysian Code on Corporate Governance and Bursa Malaysia regulations. Economic factors can impact the company's sales as well. For example, the depreciation of the ringgit against the US dollar reduced Kossan's profitability in 2009 (Tan, 2010b). Moreover, the market recession caused by Goldman Sachs Group Inc's fraud has also affected the company's performance (Murugiah, 2010b).

Moreover, the company has faced disadvantages due to the increase in the cost of raw materials caused by a limited supply of merchandise and a shortage of gas (Murugiah, 2010a; Tan, 2010b). Recent years have seen the company experience negative economic effects. Population size and education level are among the societal factors influencing the company. The company can generate high profits by selling rubber products overseas, particularly in China where the population is large. Additionally, there is an increase in demand for rubber gloves due to heightened awareness in the healthcare industry (Alibaba.com, 2010). This is especially pronounced during disease outbreaks like the H1N1 influenza (Tan, 2010b).

The company benefits from these factors, as they have a positive impact. The company finds technological factors important because they help reduce manufacturing costs and better meet changing customer demands. Therefore, it is crucial for the company to invest in research and development (R) to remain competitive. Kossan has invested in R and Quality Control (Q.C.) to continuously

improve product quality and develop a variety of products (Kossan Rubber Industries Bhd, n.d.).

The production of nitrile baseball mitts is increasing to meet the demands of all clients, as this type of glove can reduce chemical allergies (Kossan Rubber Industries Bhd, n.d.). The company may also be affected by competitive forces.

The rise in the price of latex (Murugiah, 2010a) may potentially hinder new entrants, as they may struggle to achieve economies of scale. Unlike gloves, there is no real substitute for baseball gloves, so the threat of substitutes is low. Increasing health consciousness (Alibaba.com, 2010) is likely to result in high buyer power. However, the supplier power is expected to remain stable due to the absence of substitute products.

The intense competition among houses in the rubber industry has led to standardized products, prompting companies to work harder to stay relevant. Despite adverse environmental factors, the industry is expected to survive due to positive factors that drive sales.