HCF Company Essay

Evaluate the weft of continue or gag rule of the Malaysian or Thailand operations. Should HCF weigh starting its own adjudicate? Regarding to the case, HCF micturate two options either to continue or shut gobble up operations in Malaysia or Thailand. If they choose to shutdown operation in twain Malaysia and Thailand, HCF should consider a few things. Firstly, the shutting down all factories in Malaysia and Thailand would pricy just about RM4.3 million. The embodys ar refer to the sale of Penang and Butterworth factories ( RM8.5 million), Chieng Mai and Jitra (RM1.2 million) and redundancy pay custodyts around RM3.0 million at minimum. Here, there have advantage and disadvantage of draw down operation in Malaysia and Thailand. One of the effect of closing down is harm HCF reputation as quality manufacture for both mens and womens clothes. In additions, closing down the factories in Malaysia and Thailand causes HCF mischief of human capital. As said by Teoh Chin Teh, Factor y functioning Director, a large number of employees would have to be retrenched and most of them are working with HCF more than 10 years.Thus, it will affect to workers if Malaysia factories are closed. Secondly, HCF has an option to close down the factories in Jitra and Chieng Mai only. The costs of shutting down both factories are RM1.2 million. Besides that, Jitra and Chieng Mai are located in rural knowledge domain and will make HCF hard to find new buyers to sell the factories preferably than Penang and Butterworth factories which is located in strategic location. Other than that, HCF can save cost of workers in Jitra and Chieng Mai and concentrated the operation in Penang and Butterworth. Regarding the issue about HCF be after to have their own label, they should take a few consideration before proceed with the planning. First, the cost for setup the label is RM32.1 million (fixed costs and advertizement costs). Besides, the probability id producing own label is small ab out 70% succession the successful is only 30%. Thus, HCF should not yet started their own label until the companies getting stable and have profit.