ZHULIAN CORPORATION BHD was founded in 1989 and based in Penang, Malaysia. it is an investment holding company which is primarily engages in the manufacture and direct selling multi level marketing with a niche in custom jewelry in Malaysia, Thailand and Indonesia. Beside it has diversify its business to food and beverage products comprising her-based food beverages and fruit cordials with juice concentrates and home care products which is consisting of laundry detergents dish washing liquids, nutritional health products and air freshener fragrances.
Furthermore, it has expand its business in printing brochures, leaf legs, catalogues, name cards and other related document.
Nowadays, Zhulian distributors base in the ASEAN region has reached 479,413 in number and it has over 230 agencies and 365,000 independent distributors in Malaysia, Thailand, Singapore and Indonesia.
However, there are around 389 licensed direct selling companies locally are multi level market MLM segment, so that MLM business in Malaysia is very competitive with a high number of rivals. Beside all of it has differentia its product, but most revolve around nutritional, healthcare, household product and personal care, according to Ministry of Domestic Trade and Consumer Affairs.
The major competitor which is listed MLM Company is Amway Holdings, CNI Holding, Hai-O Enterprise, DXN Holdings.
There are 2 main possible source of competitive advantage of ZHULIAN introduce MLM market by direct sell. This is created special feature quality in its product and provides professional service for customer.
ZHULIAN has seeking newer and better production methods to improve its product quality introduce to its customer and keep their loyalty. With its quality control, it has its own manufacturing which is newest Plot 3 facilities and production system with obtain both ISO 9001:2000 and GMP (Good Manufacturing Practice) certification to signify its strong capability in innovation and R&D to reach highest quality standards that have been in place in meeting the market demands.
In order that to provide added value, quality and diversity of product range to its distributors and customers, ZHULIAN has expanding range of the products manufactured by this plant. Besides, ZHULIAN has organize a R&D team which is consists of expertise professionals and Director in the companies to expand its product and find solutions to the problems affecting the eco-system especially the pollution of the environment.
However, Zhulian is expanding its business by direct selling MLM to become high revenue corporation, therefore it has to improve its employee knowledge with its product to increase their promote skill and professional service to more competitive in direct sell market. in order that to created the most conducive working environment for them to realize its employee, distributors or agent who are full potential and capability. ensures that training and development programmed are higher efficiency in improve their professional knowledge and skills to make them able to continue to advance together with the company and to solving practical problems and attaining the goals of group by improve ideas, initiatives and creativity.
Furthermore, building a large network is the important tools to enhance improve employee sales in direct selling to increase company revenue also. So Zhulian has always diversity among employees and distributors to promote team work in all the companies under the Group in building a strong people network, by that way will improve employee interaction at all levels and fully understand about company’s direction and goal also.
Discuss the pros and cons for the company to go public.
The advantage of being a listed company is additional capital can be raised by issuing more shares or debentures, enjoys greater borrowing power, board of directors with expertise or experience can be appointed to take decisions and delegate’s responsibilities, last is shareholders can sell and transfer their share easily.
Zhulian is a multi level market corporate, with that MLM is a strategy which is higher capital budget require. Because it need to have enough fund to development multi product such as manufacturing, quality control, material and more which is require large scale to develop. base on few owner capitals is no enough to develop and unable enhance its competitive potential by less economic of scale to expand. Therefore, the company has to public and raised fund from public by issuing more shares or debentures and borrowing funds from financial industries by greater borrowing power.
In the management, a corporate should have a person who is prepare to has certain experience can be appointed to take decision and delegate’s responsibilities to make decision to improve corporate revenue and fulfill entire shareholder interest.
Beside, Public company shareholder can transfer their share easily without any permission from other shareholder. Normally, investor will choose a corporate which has good reputation, certain potential in profit in future and good management structure under their expected to invest, because that will pay an impressive dividend and share price raising in future. So if the corporate performance not very well in these certain condition under expected of shareholder, they will sell their share and transfer to other investors easily , corporate share became unattractive cause share price fall. Conversely, if the corporate perform very well, its share will be attractive and cause share price rising. A float of share price reflection makes it easier for investor to realize corporate investment.
Your company may gain a higher public profile, which can be good for business. When a corporate Public, it has to publish its balance sheet and its corporate information in annual report for investor to observe its performance and improve its reputation.
Being a public company can provide customers and suppliers with added reassurance. The corporate being listed have to fulfill the condition in profit, corporate financial and performance were set by (Security Commission) SC institution and monitor by SC. therefore the public company has more value in its reputation rather than using cheating running its business.
However Zhulian is a corporate of launching multi-level market policy, it has many different supplies provide different range of material and wide customer base deal with it. Therefore, it has to create a confident for supplies and customers by increase its reassurance and public profile.
You can offer employees extra incentives by granting share options
Disadvantage of public is the founder ownership will be loss of overall control of the business because of control power in Public company is depends on the percentage of total share, the owner will have election right to involve making decision if they have holding enough partial of share. Therefore, the corporate management planning decision will be more difficult making due to different objective owner involve decision making and that more people to share the profits, the owner income from corporate return will be lessees.
Furthermore, significant expenses are incurred when setting up a company, like legal fees, accountant’s fees, higher corporate taxes, consultants charge and more. Besides, after public will be more statutory regulations that have to comply with a wide range of additional regulatory requirements and meet accepted standards of corporate governance.
On the other hands, because there are public investor involve in the listed company, therefore the public corporate has to prepared published accounts and financial affairs must be disclosed publicly. So the competitor will easily obtain the information of corporate.
