Purpose - This paper empirically studies the effects of advanced design innovation strategy on business performance, to investigate manufacturing industries that can develop design-driven-innovation strategies. Many researchers now recognize the importance of design in a CEO's decision-making process. To analyze these effects, this study deduces the definition of advanced design strategy by reviewing existing studies. The advanced design is a strategy that is applied to improve business performance instead of the appearance of a product for increasing its sales. In terms of business processes, the advanced design strategy is defined as the incorporation of business activities prior to the development of the product, to offer new experiences and values to users, from those designs. Research design/data/methodology - This paper establishes a model for empirical analysis. In this study, we derived factors of the characteristics of advanced design based on previous studies. We tried to investigate whether advanced design innovation strategy and entrepreneur's characteristics could have any impact on business performance. At the same time, we tried to find out the moderating effect of entrepreneurs' characteristics. The advanced design is made up of three elements: precedence, integration, and immersion of design activities. These three elements are independent variables for the model. The dependent variables are: increased rate of sales, R & D performance, and public image of the company. Specifically, this study establishes a CEO's characteristics as a moderating variable between the independent and dependent variables. Results - We proved that the level of entrepreneurs' characteristics has a moderating effect on the business performance. The findings of this study offer the following theoretical implications. The precedence of design activities positively affects the increased rate of sales by offering new experiences to users and creating new values. The integration of design activities also has a positive effect on the R&D performance. In addition, the immersion of design activities positively influences all the elements comprising business performance. The analysis of moderating variables elucidates that CEO's characteristics have a moderating role between precedence, integration, and immersion of design activities, and business performance. Conclusions - The practical implications of the study are as follows. This study contributes to the progression of advance design theories by conducting an empirical study on the advanced design concept. More importantly, the empirical study on the CEO group seeking exploratory innovation supports Verganti's "design-driven innovation" concept, according to which design can make innovation successful by offering useful values to users, as evident in the case of many innovative companies, such as Nintendo and Apple. Future studies need to investigate the reliability of practical examples, including the various activities of business. We suppose that there may be real differences between the results of this study and the applicative situation in the presence of a CEO group.
Global sourcing refers to activities performed to acquire materials, finished products and apparel production all around the world. The purposes of the study were to examine basic job requirements and primary skills of sales team and supporting team in global sourcing companies, to investigate educational programs provided by the companies or other educational institutions, and to examine courses to be newly established in the curriculum of clothing and textile majors. The results of the study found that the ability to use English and communication skills were important to perform their tasks (sales and supporting teams). The results revealed that fabric and textile, sewing, and apparel production process were the most frequently taken educational programs provided by global sourcing companies and English classes were the most frequently taken educational programs in the other educational institutions. The results also found that the clothing and textile curriculum need to add classes that help sales and supporting teams perform global sourcing tasks, such as fashion practical English, fabric and textile, apparel production processes, textile and apparel trades, fiber and fabric testing, and presentation skills. The study suggested educational directions for developing curriculum contents of clothing and textiles and cultivating professionals in the global sourcing industries.
A number of Chinese students who are studying in Korea have been gradually increasing since Korea and China established diplomatic relations. Many of them sale Korean products to China while studying for their degree programs in colleges. This kind of transactions can be named C2C overseas direct sales. C2C overseas direct sales which are being performed by Chinese student are good for exportation of Korean products. However Some of these transactions are not legal according to present law, First, Chinese student don't have legal status to make the transactions. Second, Chinese students usually make false declarations for evading the taxes, including tariff and VAT, Third, Chinese students can not offer the after-sale service for the goods for the Chinese consumers. Although C2C transactions have some legal matters, they should not be banned by a one-size-fits-all method. In this study, we highly recommend for the development of C2C transactions, First, Korean government should give Chinese students legal status. Second, China customs must strictly prohibit illegal activities of smuggling by taking advantage of postal route. Third, sellers in China can offer the after-sale service to consumers through some specialist A/S firms.
Journal of Korean Institute of Industrial Engineers
/
v.1
no.1
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pp.41-56
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1975
In the past the pattern of business down-trend usually appeared in the form of, first, decrease in facility investment, then decrease in inventory level, followed by reduced level of consumption. But the pattern nowadays is becoming just the opposite, that is, first, consumption decrease, then inventory level increase, followed by restriction of facility investment. Also in the past, the greater effort was placed in strengthening of hardware areas through optimization and modernization of production means on the premise of sales. But lately software areas take most of the main effort to establish production mean with sales as its objective. Under these circumstances one of the real problems facing production activities today is the conflicting relationship between sales and production functions. This occurs due to differences of their view points. Then, in order to achieve maximum profit at the least cost, which is the ultimate objective of a production activity, the need arises to effectively coordinate sales demand and plant production capacity. For this purpose strong control means and function must be devised. In our case study example we illustrate a management technique for a combined planning function, of optimal coordination of product mixes utilizing a computerized linear programming model as control means of attaining maximum profit. It is hoped that this example help achieve some of corporate objectives.
Journal of Korean Society of Industrial and Systems Engineering
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v.43
no.4
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pp.142-149
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2020
A manufacturing company should produce its products and make a profit to continue its management. With the adoption of a multi-category small-volume production system, manufacturers that produce concrete pump-cine products are carrying out improvement activities to increase their market share amid the business-to-customer business environment. However, the slump in the construction investment environment has led to a decline in sales of concrete pump trucks. The purpose of holding inventory is to prevent loss of sales opportunities with the rate of change in the sales plan, and reducing the rate of change in the product can reduce unnecessary inventory and, in order to realize this, the goal of reducing inventory can be achieved by reviewing the parts that can be designed for common use. Therefore, to reduce the inventory of concrete pump trucks, semi-finished publicization design is necessary. According to the analysis, the frame assembly process of the 32M model is common. Production capacity can be secured without loss of sales opportunity.
The purpose of this report is to study a strategic model of promotion activities through various analysis and sales forecasting by selecting wearable products for domestic online companies and collecting sales data. For data analysis, various algorithms are used for analysis and the results are selected as the optimal model. The gradation boosting model, which is selected as the best result, will allow nine independent variables to be entered, including promotion type, price, amount, gender, model, company, grade, sales date, and region, when predicting dependent variables through supervised learning. In this study, the review values set as dependent variables for each type of sales promotion were studied in more detail through the ensemble analysis technique, and the main purpose is to analyze and predict them. The purpose of this study is to study the grades. As a result of the analysis, the evaluation result is 95% of AUC, and F1 is about 93%. In the end, it was confirmed that among the types of sales promotion activities, value-added benefits affected the number of reviews and review grades, and that major variables affected the review and review grades.
In recent years, Corporate Social Responsibility (CSR) has received particular attentions from both practitioners and scholars. This study focused on Korean national fashion businesses and identified various types of CSR practices in addition to social contributions. Besides, comparison in corporation by size of the number of full-time employees and sales volume were examined. A total of 1054 cases of 147 brands, 86 corporations between 2000 and 2012 were collected from internet articles and brand home pages. Findings were as follows. First, the types of CSR activities were categorized into the following six: economic responsibility, legal responsibility, consumer protection, protection of worker's right, protection of environment, and social contribution. Social contribution took largest portion of CSR activities (67.7%), followed by environmental protection (14%), and protection of worker's right (6.2%). The other three types presented limited cases but included negative aspects of CSR. Social contribution consisted of six sub categories (culture & art, sports, education, donation, voluntary service, and campaign), and donation took the largest part of social contribution area. Second, comparing 86 corporations by the size of the number of full-time employees, companies more than 300 employees (38.1%) were more likely to practice CSR activities. Similarly, companies with more than 500 billion won sales (13.1%) were more active in their CSR activities than their counterparts. Suggestions are given for improving CSR practices to fashion business.
This study investigates the effect of risk avoiding activities and characteristic of venture capital on the financial performance of invested companies. Based on the review on the literature, we present staged financing, syndicated investment and preferred stock investment as the measurements for risk avoiding activities. Types and age of venture capital were chosen as the variables for characteristic. The financial performance data of the invested companies was derived from their publicly announced yearly financial report. Data were analysed using logistic regression technique. The result show that syndicated investment and independent venture capital have positive influence on the growth of sales revenue and asset of the invested companies. Age of venture capital appears to be positively associated with growth of sales revenue. Staged financing and preferred stock investment, however, have no impact on any financial growth and profitability. Activities and characteristic of venture capital show no influence on the profitability.
Purpose - Recently, domestic pharmaceutical market is growing steadily, but top-tier companies are concentrating on sales growth. In this market, SMEs, which account for more than 80% of the entire market, suffer from the problem of lower margins and increasing inventory costs. According to the government's policy changes related to pharmaceuticals, it is pointed out that the management of existing customers and the control of salespeople are important issues for pharmaceutical companies. This study investigates the effect of the control system on the salesperson in domestic pharmaceutical distribution channel on customer-oriented selling behaviors and sales performance. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 244 MR(medical representatives)'s responses which have currently relationship with doctors or pharmacists. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. Results - The authors find out the following results: capacity control, activity control, and self control have positive effects on customer-oriented selling behaviors and customer-oriented selling behaviors have a positive effect on sales performance. In addition, we present alternative model to check the direct effect between the control systems and the sales performance, but control system factors except self control have no direct influence. Conclusions - First of all, competency control and activity control increases the customer-oriented selling behavior of the salesperson. This means that the salesperson's sales skill, negotiation skill, customer access skill, presentation ability, monitoring, direction and evaluation are important and it is also important to control activities to check the number of visits to customers, report preparation, and customer service etiquette. Second, the fact that self-control of salesperson affects the customer-oriented selling behavior suggests that self-control is not controlled by external factors but rather establishes short/long-term goals. Therefore, it is important for sales organization to create an environment in which members can induce persistent incentives for self-control. Finally, output control did not affect customer-oriented sales behavior, which is less likely to form confidence or motivation to MRs when output control is perceived as a means of monitoring, supervising, or controlling rather than providing information to salespeople.
Journal of the Economic Geographical Society of Korea
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v.17
no.3
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pp.538-553
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2014
The aim of this study is to consider the degree of supply-demand balance in relation to the characteristics of retail sale activities in depopulation aging regions and the degree of aging by using simple regression analysis. The major findings of this study are as follows. While aging society, and aged society regions show a similar major retail sale industries, super-aged society shows fewer major industries and different industry composition. These characteristics are seen by different phenomenon and the background of the particular retail structure. The first one is that the number of employees per establishment increases when the aging phenomenon is not accelerated, and the annual sales per capita purchasing power decrease because their purchasing power becomes lower when the aging phenomenon is severe, but it also shows a high density of establishments because disperse location of establishment within depopulation aging region. The second one is the retail structure with high labor productivity in a aged and superaged society region. We identify the extent of demand and supply in general retails, fuel retails, food and beverage, and tobacco retails which represent the highest sales rates in depopulation aging region. As a result, general retails are seen as 'supply-demand balance region' in aged and super-aged society, fuel retail sales in aged and super-aged society which generally shows less sales, and food and beverages, and tobacco retails in super-aged society. The higher the degree of aging is, the less the regional differences in the gap between demand and supply is. This is because the difference in purchasing power between these regions is small.
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