1.

0 EXECUTIVE SUMMARY

This report was commissioned to examine why the sales volume of Soft Glove Sendirian
Berhad has dropped over at the beginning year 2004 since its peak before this and to recommend
ways of increasing the sales volume.
Soft Glove Sendirian Berhad began to manufacture latex-based rubber gloves which
include medical, specialty and clean-room gloves. They are more focuses on the Northern state
and expanded their sales. Soft Glove Sendirian Berhad entered the highly competitive Penang
market and able to become areas leading supplier of latex rubber glove. Early 2004, the health
industry nose-dived and the company faced a lot of problems. Lack of new strategic business
location, low knowledge of business plan and poor strategic management are the major causes of
the decreased sales volume for the Soft Glove Sendirian Berhad.
According to the list of top rubber glove produce in Malaysia, Top Glove was listed on
the Second Board of the Malaysian bourse, Bursa Saham Kuala Lumpur and within a year,
promoted to the Main Market of the Kuala Lumpur Stock Exchange. The report evaluates this
range and concludes that it would be an ideal candidate to meet the challenge presented by the
market and could satisfy the new consumer demand since their customers are the most important
arbiters and delighting them with quality products, efficient costing and excellent customer
service continues to be its chief priority. With this in view, the company continues to intensify
investments in R&D, IT and automation, towards on-going improvements in product quality and
production efficiency.
Soft Gloves Sendirian Berhad should take immediate measures to launch and promote its
products and sales same as Top Gloves. They should be awareness on the produce variety of
gloves, quality of gloves and strategic business location, from that they can compete with the
large company like Top Glove and gain more experience and knowledge about business plans to
become one of the major suppliers in the world.

2.0 PRESENTATION OF FACT

The Soft Glove Sendirian Berhad is company which owned by Mr. Jack Lee as well as
position executive chairman and managing director of the medium-sized manufacturing company
that makes rubber gloves. Soft Glove Sendirian Berhad has for 15 years wholesaled plastic and
rubber gloves to hardware stores and hospital in the northern states of Malaysia. The company
manufactures latex-based rubber gloves which include medical, specialty and clean-room gloves
were initially sold to general hospitals in Kedah and Perlis.
Mr. Jack Lee able to make the company as the areas leading supplier of latex rubber
gloves after 2 years entered the highly competitive Penang market by selling latex rubber gloves
to clinics and hospitals. However Soft Glove has been unsuccessful in attempts the major
supplier when the user in health market are also getting their supplies form other glove
manufacturer and dealers because of the limitation types of gloves produced and severe slump in
the health industry at beginning 2004 made Lee realized that the possibility falling below his
break-even point in Penang territory as the health industry is the primary market for Soft Gloves
products.
Lately, Mr. Jack Lee has been struggling with the problem of declining sales volume and
increasing competition so in seeking the offset the effects of the health market drop in sales, Lee
interested to enter into new market to sale latex-based gloves to public and private hospitals in
Selangor, Kuala Lumpur, Negeri Sembilan and Melaka to overcome his problems.

3.0 KEY ISSUES

1) Sales Declining
Base on the case study, Soft Glove Sendirian Berhad faced this problem because
of the severe slump in the health industry at beginning 2004 and realized falling below
his company break-even point in Penang territory as the health industry is the primary
market for Soft Gloves products. The location between the company and the warehouse
are far away from each other and it can cause long lead time to shipped the gloves so it
also one of the causes for sales declining.

2) Increased Competitor
Soft Glove Sendirian Berhad struggling with increasing competition because they
produce only in 2 types of gloves which is plastic and latex rubber gloves, so the user in
health market are getting their supplies form other glove manufacturer and dealers
because of the limitation types of gloves produced.

3) Market slump
This issue occurs when the owner of Soft Glove Sendirian Berhad, Mr. Jack Lee
does most of the marketing for the company himself. He is a self-center entrepreneur and
do business plan by himself. Lack of marketing planning, changes in strategy and new
targets are numbers of causes market slump.

4) New entry
Soft Glove Sendirian Berhad sales volume from the volatile health industry could
vary from more than RM 250,000 per week to less than RM100,000 per week. if sales
fell below RM100,000 per week, which was a distinct possibility, the company would be
losing money in its Penang territory so Mr. Jack Lee decided to enter new strategic
business location to public and private hospitals in Selangor, Kuala Lumpur, Negeri
Sembilan and Melaka areas. He estimated that the sales potential in new market for latex
gloves is increase two times double from before this.

4.0 LISTING OF ALTERNATIVE ACTION

1) Sales Declining
(a) Membership Card
(b) High Quality Product
(c) Provide Training to Staff

2) Increasing in competition
(a) Market Expansion
(b) Provide Outstanding Customer Services
(c) Reduce Price

3) Market Slump
(a) Change in Strategy
(b) New Target
(c) SWOT Analysis

4) New Entry
(a) Business diversification
(b) Encourage new customer to bring new one
(c) Joint Venture

5.0 EVALUATION OF ALTERNATIVE ACTION

6.0 RECOMMENDATION

7.0 CONCLUSION

8.0 REFERENCES

1. http://businesscasestudies.co.uk/portakabin/the-importance-of-quality-in-creating-competitiveadvantage/what-is-quality.html#axzz2suDjPhbL
2. http://www.allsourcemfg.com/pdfs/Advantages%20of%20Buying%20Quality%20Product.pdf
3. http://toolkit.smallbiz.nsw.gov.au/part/16/80/345
4. http://smallbusiness.chron.com/quality-important-business-57470.html
5. http://www.theedgemalaysia.com/highlights/243547-feature-glove-makers-to-compete-forinternational-demand-.html
6. https://www.google.com/#q=how+glove+company+deal+with+increased+competition+in+mala
ysia&start=10
7. http://guardianlv.com/2013/12/gift-cards-increase-merchant-sales-volume-and-net-profits/
8. http://themalaysianreserve.com/main/news/corporate-malaysia/5267-top-glove-minimal-pricehike-vital-to-absorb-tariff
9. http://top10malaysia.com/home/index.php/trail-blazing-companies/top-glove
10. http://smallbusiness.chron.com/strategies-overcome-marketing-threats-38186.html

APPENDIX