Hyflux Essay

In order to maximize the use the use of this natural resource, the Singapore government goes to extent where they recycle and purify the water they capture. These â€Å"policies have developed an expertise in water management that has spawned a host of profitable companies† (Chowdhury, Singapore’s All Wet- TIME, 2009) and one of the major companies in this industry is Hyflux. Hyflux is a Singaporean homegrown water treatment company that†purifies waste-, salt- and rainwater† (Chowdhury, Singapore’s All Wet- TIME, 2009). Hyflux provides a wide-ranging set of integrated services in water and renewable resources, from research and development, membrane manufacturing, process engineering, engineering, procurement and construction to operations and maintenance. Hyflux provides water desalination and filtration solution for its customers and is a global leader in membrane technology and applications for renewable resources and water solution. The company takes pride in its award winning membranes which is one of the company’s main core products. Company Vision To be the leading company the world seeks for innovative and effective environmental solutions. Company Mission To provide efficient and cost-effective solutions to meet our clients’ needs through innovation and technological advancement. Company Values: Boldness – Dare to dream, dare to do and dare to excel Entrepreneurship – Nurture the entrepreneurial spirit, embrace challenge and master change Satisfaction – Exceed internal and external customer satisfaction, take pride in work and deliver excellence Testimony – Be the face behind the brand, excel in business conduct and embrace best practices in corporate governanceHyflux has 2,000 staff worldwide (Hyflux Ltd.NA) including â€Å"200 multidisciplinary membrane specialists, researchers and scientists† (Hyflux Ltd. , NA) in the company’s networks of innovative centers and plants. Employees are widely diverse not only in terms of the countries they are from but also in their previous working background, cultures and experiences. The diverse workforce of Hyflux contributed greatl y to the success of the company through high productivity, creative thinking and effective and efficient decision making. Hyflux started business and is established in Singapore in the year 1989 and since then it has grew and built 1,000 plants in more than 400 countries worldwide. Appendix 1. 1 highlights some of the countries in which Hyflux operates in. In the countries they have plants and operate in, they provide different types of services and products. For example, in Dubai, they provide services in the sewage treatment industry and providing Kristal Membrane products while in Thailand, the company operates in both wastewater reclamation industry and chemical industry providing Kristal and FerroCep membranes. The fame and reputation of Hyflux grew bigger in Singapore and in the year 2001, it became the first water treatment company in Singapore to be listed in the Singapore Stock Exchange. The current financial standing of the company, a table is shown below comparing last year’s final year reports and this year’s reports Source: Hyflux Year end news release 2010 and 2009 (Hyflux Ltd. , 2010), (Hyflux Ltd. , 2009) The company has been increasing in revenue in the year 2010 due to the major projects that are ongoing like their major plant in located in China that has been in halt for the past year due to the economic downturn. In addition the company also earns high revenue from the public and industrial sectors. Source: Hyflux Year end news release 2010 and 2009 (Hyflux Ltd. , 2009), (Hyflux Ltd. , 2010) ————————————————- External and Internal Analysis The SWOT analysis will be used in this report to understand the company’s internal strength and weaknesses and also its external opportunities and threats. Strength One of the root strengths that Hyflux has is their CEO, Ms Olivia Lum who started the business and its operation in the year 1989. Ms Olivia Lum set strategic directions and made effective and efficient decisions for the company which enabled them to grow a small sized company hiring only 3 staff with the capital of S$20,000 to one being of the â€Å"world’s fastest-growing technology driven water solutions company† (Hyflux Ltd. , NA). As a chief executive officer, they â€Å"develop and define the organization’s purpose, objectives, strategies, and long term plans† (Lussier, 2009). Ms Lum has accumulated several skills and knowledge in the hydro-chemical, chemistry, health and entrepreneurship which enable her to make effective and efficient strategic moves which leads to the company’s growth and success. Secondly, Hyflux hires 2,000 staff worldwide, in which a staff of â€Å"200 multidisciplinary membrane specialists, researchers and scientists â€Å"(Hyflux Ltd. , NA) in their innovative centers in Singapore. Employees are great assets to any company and add more value when they are skilled, motivated and diverse. Even if Hyflux has all the advance technologies and machines, it would be of no use (or unproductive) without a human working behind it. Hyflux employs â€Å"passionate, talented and ambitious people who are constantly willing to push the boundaries of the possible. † (Hyflux Ltd. , NA). Employees who take the initiative and are driven are likely to add value to the company and its production compared to an employee who is being â€Å"forced† to do their job. According to authors John Ivancevich and Lee Soo Hoon â€Å"In most organizations in Asia, effectiveness is measured by the balance of such complementary characteristics as reaching goals, employing the skills and abilities of employees efficiently and ensuring the influx and retention of well-trained and motivated employees. † (Ivancevich & Hoon, 2002). In addition, having a diverse workforce who are specialized to do their task contributes greatly on the company’s productivity through the creative ideas given from employees who are from different backgrounds and society. Moreover, Hyflux owns award winning water-machinery and advance technology which increases their popularity and the quality of their reputation. This encourages more customers to partner and/or purchase from Hyflux and also encourages more investors to invest in the company. Weaknesses High cost on employees has accumulated a significant increase in the operational cost of the company. in order to motivate employees, Hyfluxhas to train and financially reward their employees. However, the company is focused on employees too therefore they are not looking at it as a cost but as an investment instead. Moreover, the company is experiencing high cost in the operations itself and the fluctuation of exchange rates contributes to this problem notably and that includes high loan rates from banks as well. Opportunities In Singapore, water treatment facilities are encouraged by the government to supply the country with more of the natural resource and â€Å"The first of the water agreements with Malaysia, which expires in 2011, is not likely to be renewed† (Chowdhury, 2009) therefore the government is supporting the growth and operations of Hyflux. As a matter of fact, the company has PUB, Singapore’s national water agency, as a customer and has built 4 major water desalination plants under the management of PUB. PUB has become one the largest clients of Hyflux which reflects the company’s good and sustainable relationship with the government. In most countries that Hyflux go into, the government has always looked upon them with favor and a good relationship is formulated. For example, building the â€Å"world’s largest membrane-based seawater desalination project in Magtaa, Algeria.(Hyflux Ltd. , 2009). This is supported by the local government and allowed them to be financially supported by national banks in Algeria. Threats As mentioned on the latest news release by Hyflux, one of its threats is the unpredictable change in the currency markets (Hyflux Ltd. , 2010). An instability in the currency (especially in those wherein the company operates) could accumulate losses for the company. In some parts of the world, the supply, for example, could be more costly than expected in the budget due to unstable exchange rates. In addition, operational cost of the Hyflux Group as a whole can also be unpredictable because of fluctuations in the currency. One month’s operational budget and cost can be lower and the following month, expenses could just shoot up. Another threat affecting the global operation of the company is the â€Å"persistent high unemployment rate† (Hyflux Ltd. , 2010) in key markets in the US and EU. If this goes on, the economy of those markets will definitely be affected mainly on the interest rates. As more people are unemployed, GDP decreases, leading to a decrease in the prices of goods and services. This in return will affect the exchange rates and investors will be encouraged to invest in Hyflux, however in a smaller amount but then will be paid higher dividends and returns if the economy picks up. ————————————————- Object of concern for the company One of the main objectives and strategies of Ms Olivia Lum is to be able to achieve growth in the company by expanding and reaching to all its key markets globally. But in contrast, it is also a challenge for the CEO to sustain its rapid growth† (Smith, 2004).