• Title/Summary/Keyword: Customer Profitability

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An Empirical Analysis of the Characteristics of Acquiring Manufacturing Firms in Korea : The Focus on Environmental Factors and Firm Performance (합병한 국내 제조기업들의 특징에 관한 실증적 연구 : 환경적 요인과 기업성과를 중심으로)

  • Lee, Younsuk;Park, Soohoon
    • Korean Management Science Review
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    • v.32 no.2
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    • pp.91-109
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    • 2015
  • The M&A of firms has been emerged as the effective means of fast diversification and growth in dynamic environment. However, the empirical research about M&A in Korea has not been implemented rich due to the difficulty of obtaining M&A data. In this research, we empirically investigate the relationships among M&A, environment and firms' performance focused on Korean manufacturing firms, understanding the current practice of M&A in Korea. We use the Manufacturing Productivity Panel Survey Data, which are collected by Korea Productivity Center in 2013. The sample size is 575 and the sample is divided into M&A group and non-M&A group. We conduct logit analysis with the independent variables of environment factors (munificence, dynamic, uncertainty), and firms' performance (sales growth, ROS, labor productivity and Inventory turnover), and dependent variable of M&A group or non M&A group. The results show that M&A is closely related to environment feature and firm performance: M&A firms are likely to be the higher munificence and dynamic and the lower sales growth and higher profitability than non-M&A group. In addition, we also examine the characteristics of firms by M&A types (competitors, customer/supplier and firms from unrelated industry). These results imply that if firms confront the pressure of uncertainty (dynamic) and the lower growth, they tend to choose M&A. Futhermore, to profoundly understand the behavior of firms about M&A, it is required to classify the M&A firms by merge types.

A Study on Braking Characteristics Control of Carbon Ceramic Composite for Brake Reliability Improvement of Luxury Car and Future Technology Evolution Trend Prediction (고급차의 제동 신뢰성 향상을 위한 카본 세라믹 복합재의 제동 특성 제어 및 향후 기술 진화 트랜드 예측에 관한 연구)

  • Shim, Jaehun;Jeon, Gabbae;Lee, Jounghee;Park, ByeongJoon;Im, Dongwon;Hyun, Eunjae;Jung, Kwangki;Kim, Kijeong;Kim, Hongki
    • Transactions of the Korean Society of Automotive Engineers
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    • v.24 no.6
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    • pp.684-693
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    • 2016
  • The luxury car industry has grown 10.5 % every year from 2010 to 2014. For this reason, it is very important for automotive companies to improve profitability and brand value. High-performance brake systems have become an absolute necessity because of the increase in engine power and customer preference among other factors. Also, competing automotive companies actively reinforce domestic production in order to maintain quality and infrastructure for luxury cars. In this regard, we demonstrated new carbon ceramic brakes to improve brake reliability for luxury cars and to improve the competitiveness of automotive companies. Finally, we propose the next-generation braking technology by predicting technological evolution trends.

The Impact of several management tools and techniques adoption on strong small business enterprises' Performance (경영기법 및 도구의 적용이 강소기업 경영성과에 미치는 영향분석)

  • Kim, Kyung-Ihl
    • Journal of Convergence Society for SMB
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    • v.6 no.3
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    • pp.7-12
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    • 2016
  • This paper aims to examine the adoption of several management tools & techniques(MT&T) by the Strong Small Business Enterprises (SSBE) in Korea, In addition, the paper examines the impact of the adopted MT&T techniques on a company's overall performance. The paper used a questionnaires survey method to gather the required data. The paper used descriptive statistics, correlation and regression techniques to analyze the data. The paper found that benchmarking, BSC, IMS and TQM are among the MT&T techniques widely adopted by SSBE. In addition, the paper found that the adoption of MT&T techniques significantly influenced the companies' overall performance. More specifically, the paper found that the adoption of BSC significantly influenced that the companies' profitability, customer satisfaction, market position and sales growth for exisiting services and products. The findings this paper provide could be considered important and useful for advancement of companies adopting MT&T techniques to improve their performance.

A Comparative Study on Hospital Choice Factors between First-visit and Revisit patients in General Hospitals (초진과 재진환자의 종합병원 선택요인 비교분석)

  • Yang, Jong-Hyun
    • Journal of Digital Convergence
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    • v.15 no.7
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    • pp.231-238
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    • 2017
  • The purposes of this study is to analysis the differences of the hospital choice factors between first-visit and revisit patients in general hospitals. The samples used for data analysis are 499 outpatients of G, H, S, U hospitals using a standardized questionnaires in 4 provinces. In case of first-visit patients, human, effectiveness and accessibility factors were found to have a significant positive(+) effect on hospital choice factors. In case of revisit patients, human, physical, accessibility, image of hospital and salary factors were found to have a significant positive(+) effect on hospital choice factors. Based on these results, this study suggests implications to improve customer satisfaction, profitability and provide a high-quality medical service by making effectively use of planning strategies of hospital management with a variety of factors.

APPLICATION OF PROJECT MANAGEMENT: LEAN TECHNOLOGIES AND SAVING MANUFACTURING (ASPECTS OF MANAGEMENT AND PUBLIC ADMINISTRATION)

  • Kulinich, Tetiana;Berezina, Liudmyla;Bahan, Nadiia;Vashchenko, Iryna;Huriievska, Valentyna
    • International Journal of Computer Science & Network Security
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    • v.21 no.5
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    • pp.57-68
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    • 2021
  • Successfully adapting to digital and customer-oriented transformation, the concept of lean manufacturing professes the philosophy of creating greater benefit while minimizing losses. These losses are operations that do not add value in the production process to ensure the efficiency, flexibility, and profitability of projects. In the context of broad automation and digitalization of all sectors of the economy, mechanisms for combining automation technologies and lean production are becoming available. Moreover, when it comes to the efficient use of financial, human, or material resources, it is clear that the use of Industry 4.0 technologies can be an effective tool for achieving the goals of lean production, as many of them pursue the same goal. In this context, this article aims to study the effectiveness of the implementation of project management concepts at the global level and identify the main factors influencing its effectiveness to ensure the achievement of lean production through LEAN technologies and Industry 4.0 technologies. To achieve this goal, several statistical indicators were selected and several statistical methods of analysis were used: pairwise correlation, regression analysis, methods of comparison, synthesis, and generalization. Statistical analysis was conducted according to a survey conducted by the Project Management Institute (PMI) in 2020. An economic-mathematical model of dependence of project effectiveness in different regions of the world on the level of implementation of project management approaches is built, which shows that the increase in project effectiveness by 85% is due to financial losses, technical training, and consumer orientation. These results allow project managers to develop appropriate strategies to improve project management approaches at all levels. It is established that LEAN technologies and technologies of Industry 4.0 have several tools that have a positive effect on minimizing losses following the concept of lean production. Besides, given that the technology of Industry 4.0 is focused on the automation of Lean Production technology, a mechanism for the introduction of lean production using these technologies and methods.

A Case Study on Price Elasticity Measurement and Identification of Factors Affecting Price Elasticity of a Family Restaurant (샐러드 뷔페형 패밀리 레스토랑의 메뉴별 가격탄력성 분석과 가격탄력성에 미치는 영향 요인에 대한 사례 연구: 서울 소재 1개 매장을 대상으로)

  • Lee, Bong-Shik;Yang, Il-Sun;Shin, Seo-Young;Choi, Mi-Kyung
    • Journal of the Korean Society of Food Culture
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    • v.21 no.3
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    • pp.254-261
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    • 2006
  • The purposes of this study were to measure price elasticities of menu items of a family restaurant, identify differences of price elasticity between subgroups, and provide a comprehensive understanding on price elasticity. 3 menu items of a salad buffet family restaurant in Seoul were selected for analyses, and a questionnaire was developed through literature review and modified after pilot test. The questionnaires for main survey were distributed to 250 customers on their visit to the restaurant, and a total of 139 questionnaires were used for analyses (55.6%). Statistical analyses were conducted using SPSS Win (12.0) for descriptive analyses, t-test, ANOVA, and the main results of this study were as follows. The demands were expected very elastic to the changes in prices of all 3 menu items, and there were significant differences between groups of different company types. In addition, the changes in use were less affected by the changes in menu price when customers were satisfied with each menu item. On the basis of these results, it was concluded that price increases of menu items should be companied by quality improvement of products and services, and differentiated marketing strategy for each segments of customers would be helpful to profitability of the restaurant. Overall, measurement of price elasticity could help to predict customer behaviors on price changes, and give much useful information for managers and marketers of foodservice organizations in development of price strategies.

Efficiency Analysis of the Securities Firms using a Combined BSC and DEA Model (BSC와 DEA 결합모델을 이용한 증권사 효율성 분석)

  • Kim, Youngjin;Jung, Goosang;Hwang, Jae-Joon;Lee, Hyun-Soo;Kim, Sun Ah;Kim, Tae-Sung
    • Journal of Digital Convergence
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    • v.11 no.5
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    • pp.159-168
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    • 2013
  • This study analyze the business efficiency of securities company based on the 2011 performance of 29 securities firms which engage in domestic investment brokerage by applying a combination model of BSC and DEA. And we evaluate business state focused on efficiency which is based on logical system of BSC as business innovation method. The analysis of result is that companies with high customer efficiency index appeared that business efficiency composite index tended to be higher and we identified that customer perspective have an important factor to calculate business efficiency composite index of korea security company. In addition, based on the results of the efficiency analysis we analyze correlation analysis between traditional financial ratio and business efficiency composite index. We confirmed that company of high business efficiency level in terms of BSC have a good record in terms of profitability. BSC-DEA combination model expect to be utilized in security industry sector as well as other industrial sectors as good business indicator to determine the business efficiency and to be used a model can be evaluated the integrated firm valuation of tangible and intangible assets.

A Study on the Structural Relationship between Employee Services and Store Loyalty (종업원 서비스와 점포충성도간의 구조적 관계에 관한 연구)

  • Yoon, Sung-Wook;Suh, Geun-Ha
    • Asia Marketing Journal
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    • v.6 no.3
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    • pp.59-81
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    • 2004
  • Store loyalty is increasingly being recognized as a path to long-term business profitability. Customer contact employees deliver a service firm's promises and create an important image for the firm. A major purpose of this study is to investigate the effects of customer service and product value on store loyalty. In order to test research hypotheses, data were collected through surveys administered to 300 apparel store customers. Two hundred thirty nine usable data were used for the analysis. The findings of this research are as follows: First, a employee's voluntary service(EVS) has a positive impact on interpersonal r elationship, which then affects switching barrier and store loyalty. Second, a employee's regular service(ERS) has an influence on store satisfaction, which in turn affect store loyalty. Third, product value is shown to be a significant antecedent to store satisfaction, which have a direct effect on store loyalty. The study concludes with implications, contributions, and limitations of the research and the empirical findings of this research should be beneficial to marketing practitioners and retailing businessmen in developing effective marketing strategies.

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A Study on the Born Global Venture Corporation's Characteristics and Performance ('본글로벌(born global)전략'을 추구하는 벤처기업의 특성과 성과에 관한 연구)

  • Kim, Hyung-Jun;Jung, Duk-Hwa
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.3
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    • pp.39-59
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    • 2007
  • The international involvement of a firm has been described as a gradual development process "a process in which the enterprise gradually increases its international involvement in many studies. This process evolves in the interplay between the development of knowledge about foreign markets and operations on one hand and increasing commitment of resources to foreign markets on the other." On the basis of Uppsala internationalization model, many studies strengthen strong theoretical and empirical support. According to the predictions of the classic stages theory, the internationalization process of firms have been recognized and characterized gradual evolution to foreign markets, so called stage theory: indirect & direct export, strategic alliance and foreign direct investment. However, termed "international new ventures" (McDougall, Shane, and Oviatt 1994), "born globals" (Knight 1997; Knight and Cavusgil 1996; Madsen and Servais 1997), "instant internationals" (Preece, Miles, and Baetz 1999), or "global startups" (Oviatt and McDougall 1994) have been used and come into spotlight in internationalization study of technology intensity venture companies. Recent researches focused on venture company have suggested the phenomenons of 'born global' firms as a contradiction to the stages theory. Especially the article by Oviatt and McDougall threw the spotlight on international entrepreneurs, on international new ventures, and on their importance in the globalising world economy. Since venture companies have, by definition. lack of economies of scale, lack of resources (financial and knowledge), and aversion to risk taking, they have a difficulty in expanding their market to abroad and pursue internalization gradually and step by step. However many venture companies have pursued 'Born Global Strategy', which is different from process strategy, because corporate's environment has been rapidly changing to globalization. The existing studies investigate that (1) why the ventures enter into overseas market in those early stage, even in infancy, (2) what make the different international strategy among ventures and the born global strategy is better to the infant ventures. However, as for venture's performance(growth and profitability), the existing results do not correspond each other. They also, don't include marketing strategy (differentiation, low price, market breadth and market pioneer) that is important factors in studying of BGV's performance. In this paper I aim to delineate the appearance of international new ventures and the phenomenons of venture companies' internationalization strategy. In order to verify research problems, I develop a resource-based model and marketing strategies for analyzing the effects of the born global venture firms. In this paper, I suggested 3 research problems. First, do the korean venture companies take some advantages in the aspects of corporate's performances (growth, profitability and overall market performances) when they pursue internationalization from inception? Second, do the korean BGV have firm specific assets (foreign experiences, foreign orientation, organizational absorptive capacity)? Third, What are the marketing strategies of korean BGV and is it different from others? Under these problems, I test then (1) whether the BGV that a firm started its internationalization activity almost from inception, has more intangible resources(foreign experience of corporate members, foreign orientation, technological competences and absorptive capacity) than any other venture firms(Non_BGV) and (2) also whether the BGV's marketing strategies-differentiation, low price, market diversification and preemption strategy are different from Non_BGV. Above all, the main purpose of this research is that results achieved by BGV are indeed better than those obtained by Non_BGV firms with respect to firm's growth rate and efficiency. To do this research, I surveyed venture companies located in Seoul and Deajeon in Korea during November to December, 2005. I gather the data from 200 venture companies and then selected 84 samples, which have been founded during 1999${\sim}$2000. To compare BGV's characteristics with those of Non_BGV, I also had to classify BGV by export intensity over 50% among five or six aged venture firms. Many other researches tried to classify BGV and Non_BGV, but there were various criterion as many as researchers studied on this topic. Some of them use time gap, which is time difference of establishment and it's first internationalization experience and others use export intensity, ration of export sales amount divided by total sales amount. Although using a mixed criterion of prior research in my case, I do think this kinds of criterion is subjective and arbitrary rather than objective, so I do mention my research has some critical limitation in the classification of BGV and Non_BGV. The first purpose of research is the test of difference of performance between BGV and Non_BGV. As a result of t-test, the research show that there are statistically efficient difference not only in the growth rate (sales growth rate compared to competitors and 3 years averaged sales growth rate) but also in general market performance of BGV. But in case of profitability performance, the hypothesis that is BGV is more profit (return on investment(ROI) compared to competitors and 3 years averaged ROI) than Non-BGV was not supported. From these results, this paper concludes that BGV grows rapidly and gets a high market performance (in aspect of market share and customer loyalty) but there is no profitability difference between BGV and Non_BGV. The second result is that BGV have more absorptive capacity especially, knowledge competence, and entrepreneur's international experience than Non_BGV. And this paper also found BGV search for product differentiation, exemption strategy and market diversification strategy while Non_BGV search for low price strategy. These results have never been dealt with other existing studies. This research has some limitations. First limitation is concerned about the definition of BGV, as I mentioned above. Conceptually speaking, BGV is defined as company pursue internationalization from inception, but in empirical study, it's very difficult to classify between BGV and Non_BGV. I tried to classify on the basis of time difference and export intensity, this criterions are so subjective and arbitrary that the results are not robust if the criterion were changed. Second limitation is concerned about sample used in this research. I surveyed venture companies just located in Seoul and Daejeon and also use only 84 samples which more or less provoke sample bias problem and generalization of results. I think the more following studies that focus on ventures located in other region, the better to verify the results of this paper.

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Strategy for Store Management Using SOM Based on RFM (RFM 기반 SOM을 이용한 매장관리 전략 도출)

  • Jeong, Yoon Jeong;Choi, Il Young;Kim, Jae Kyeong;Choi, Ju Choel
    • Journal of Intelligence and Information Systems
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    • v.21 no.2
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    • pp.93-112
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    • 2015
  • Depending on the change in consumer's consumption pattern, existing retail shop has evolved in hypermarket or convenience store offering grocery and daily products mostly. Therefore, it is important to maintain the inventory levels and proper product configuration for effectively utilize the limited space in the retail store and increasing sales. Accordingly, this study proposed proper product configuration and inventory level strategy based on RFM(Recency, Frequency, Monetary) model and SOM(self-organizing map) for manage the retail shop effectively. RFM model is analytic model to analyze customer behaviors based on the past customer's buying activities. And it can differentiates important customers from large data by three variables. R represents recency, which refers to the last purchase of commodities. The latest consuming customer has bigger R. F represents frequency, which refers to the number of transactions in a particular period and M represents monetary, which refers to consumption money amount in a particular period. Thus, RFM method has been known to be a very effective model for customer segmentation. In this study, using a normalized value of the RFM variables, SOM cluster analysis was performed. SOM is regarded as one of the most distinguished artificial neural network models in the unsupervised learning tool space. It is a popular tool for clustering and visualization of high dimensional data in such a way that similar items are grouped spatially close to one another. In particular, it has been successfully applied in various technical fields for finding patterns. In our research, the procedure tries to find sales patterns by analyzing product sales records with Recency, Frequency and Monetary values. And to suggest a business strategy, we conduct the decision tree based on SOM results. To validate the proposed procedure in this study, we adopted the M-mart data collected between 2014.01.01~2014.12.31. Each product get the value of R, F, M, and they are clustered by 9 using SOM. And we also performed three tests using the weekday data, weekend data, whole data in order to analyze the sales pattern change. In order to propose the strategy of each cluster, we examine the criteria of product clustering. The clusters through the SOM can be explained by the characteristics of these clusters of decision trees. As a result, we can suggest the inventory management strategy of each 9 clusters through the suggested procedures of the study. The highest of all three value(R, F, M) cluster's products need to have high level of the inventory as well as to be disposed in a place where it can be increasing customer's path. In contrast, the lowest of all three value(R, F, M) cluster's products need to have low level of inventory as well as to be disposed in a place where visibility is low. The highest R value cluster's products is usually new releases products, and need to be placed on the front of the store. And, manager should decrease inventory levels gradually in the highest F value cluster's products purchased in the past. Because, we assume that cluster has lower R value and the M value than the average value of good. And it can be deduced that product are sold poorly in recent days and total sales also will be lower than the frequency. The procedure presented in this study is expected to contribute to raising the profitability of the retail store. The paper is organized as follows. The second chapter briefly reviews the literature related to this study. The third chapter suggests procedures for research proposals, and the fourth chapter applied suggested procedure using the actual product sales data. Finally, the fifth chapter described the conclusion of the study and further research.