• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.47
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• pp.299-318
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• 2010

International trade environment is rapidly changing. Developing all economic activities included in the value chain of economy out of a particular country or region in the trends where globalization is spreading all over the world, 'a borderless world' has been created and become common throughout the world. Especially, in case of East Asian region, becoming the factory of the world, China has become a center of the world's economic activities in recent years; and the increase of regional investment among East Asian countries and trade expansion focused on China has been the factor of promoting the formulation of a regional trade network. SCM is an efficient way of adaptation to the complexity or uncertainty on the scene through the achievement of a sustainable competitive advantage by integrating the activities of improving the relationships in the supply chain. In this study, Sumitronics, a Japanese company, was studied as a case of the company who had implemented SCM effectively and efficiently utilizing the East Asian trade network. Not being engaged in the manufacturing processes in the headquarter, Sumitronics has implemented SCM which is capable of maximizing the responsiveness upon the requirements of customers by effective information sharing. In particular, the profits of the company have been maximized through SCM by its headquarter in Japan, which is capable of managing each base in East Asia as China and Southeast Asia, etc. Korean companies may also be able to create a new source of profit by dint of establishing SCM as such. The results of this case study has revealed that the implementation of an effective business model is the key of the successful implementation of SCM.

• Journal of the Korean Society for Aeronautical & Space Sciences
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• v.50 no.8
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• pp.583-590
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• 2022

This paper presents a framework, MADAM(Multidisciplinary Analysis and Design for Advanced Mobility). For the actual UAM operation, not only aircraft performances but also demand, cost and flight scenarios are in connection; the overall framework is essential for the multidisciplinary design. In this study, the framework is developed and introduced. Demand and cost analysis of Gimpo-Samseong line in the Seoul area using the framework is conducted as an example result. Also, future ticket prices are estimated by applying changes in the aspects of major cost components and the price, ￦76,000, is calculated with the target for maximizing the total profit in the year 2035.

• The Journal of the Convergence on Culture Technology
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• v.10 no.2
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• pp.333-341
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• 2024

So far, the rationality of management decisions has been limited to the economic rationality of maximizing self-interest. However, management rationality in the ESG era, which pursues the interests of the environment, society, and the company from the perspective of harmony and balance, requires new judgment standards. The goal of ESG management is sustainable development. Sustainable development goes beyond the accumulation of wealth, which was the goal of the past economy, and aims for the happiness of the entire society, including coexistence and fair development that develops together with the entire society. From Aristotle's perspective, the happiness of the entire society promoted by sustainable development is no different from the highest good of citizens, members of the community. Accordingly, this paper attempted to explore the new management rationality required for managers in the ESG era by comparing Aristotle's concept of citizenship with the concept of 'corporate citizenship', one of the main concepts of ESG management. Through this, we sought to show that companies are essentially communal entities and that the company's pursuit of profit requires rationality of balance and harmony with environmental and social interests.

• Journal of Digital Convergence
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• v.10 no.8
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• pp.119-133
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• 2012

Recent rise of social media channel is changing social and economic paradigm and is being used as an effective communication in marketing. The following research analyzes the most employed social marketing tools such as portal advertisement, blogs, and SNS channels to effectively execute social media marketing from performance indicator and ICSI perspective, analyzes each channel's characteristics and results based on Korea distribution companies' case studies and suggests a framework to effectively use each channel. Portal site advertisements are the most effective channel to draw customers with new information and are thus linked to profit by corporations with excessive budget and workforce. Blogs target a specific range of customers providing quality information and knowledge thus improving a corporation's and its product's trustworthiness, spread the word by allowing customers to scrap the information, form social groups and synthesize ideas, events, new contents and social involvement with loyal customers. SNS channels allow customers to get involved in real time information and events, grow through network by the power of customers, react immediately to customers' needs, and execute real-time market and customer reports. Though national corporations currently rely heavily on portal site advertisements, insightful marketing professionals are showing financial results with blog and SNS. In the future, based on a precise understanding of each channel's benefits and expected results, and with a focus on flexibility, timeliness and integrated use of each channel, a portfolio of dynamic marketing as a maximizing strategy could be synthesized.

• Journal of Korean Society of Transportation
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• v.32 no.3
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• pp.239-247
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• 2014

In modern society, the transportation sector is having difficulties with mobility, safety, energy and environment issues so that solutions should be prepared progressively. Recently developed countries are paying greater attention to car-sharing systems as alternatives for relieving problems caused by increasing number of vehicles. Car-sharing systems are believed to keep the number of personal vehicles down and traffic congestion due to the fact that this system induces efficiency of vehicle operation. In this study, authors focused on solving the imbalance problem of car-sharing systems dynamically, to specifically improve one-way car sharing service. Therefore vehicle relocation algorithm was designed for maximizing profit of car sharing operators. For the application of the vehicle relocation algorithm among rental offices, we selected Haeundae-gu, Busan as the area of study. Rental offices have been designated to the zone centroid and we calculated the shortest path between rental offices by using TransCAD. In the study, we adapted MATLAB for the application of vehicle relocation algorithm. As the results, the total vehicle relocation time was estimated as 59.9 minutes. In addition, vehicle relocation algorithm was verified successfully by using Decision Tree method.

• Management & Information Systems Review
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• v.23
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• pp.25-40
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• 2007

In the highly competitive and divers world of financial market, customer is the single most important factor to company's survival. Especially, creating a relationship with valued customers is a key to success. CRM provides the mean to retain high value customers. It takes a prospect of what customers expect. Utilizing those knowledge can help the products and service meet the customers' needs, thereby maximizing customer satisfaction and company's profit. In this report, I am going to suggest a few ways to develop successful CRM in the life insurance industry. First, CRM should innovate the way of communication to keep pace with Web 2.0 era. In other words, the customer's needs should be caught by real-time communication than traditional off-line market research. Thus, the functionality and specification of products can be decided by customer's direct choice so that the customers are able to purchase the understanding and experience of the products. Second, CRM project should consider whether the initial strategy plan can promise the stable growth of customer at the first step. When planning strategy, the project needs to identify what customer wants and how to fulfill the needs with stable growth of the customer. In addition, the CRM should be developed by realizing that customer centric benefits ultimately guarantee the growth of the organization. Third, CRM systems should enhance the organization's ability to take the customer's insight in a 360 degree view and to capture the voice of the customer directly. In order to develop the best matched product package, more precise customer segmentation should be ahead of market segmentation strategy. Forth, the biggest reward from CRM will be a customer royalty program. Many successful banks are already planning and practicing customer royalty strategy. A comprehensive analysis of customers and their behavior allow organization to identify high value potential customers' needs and determine a strategy required to meet those needs. Even life insurance companies such as Prudential Korea are developing products designed for royal customers. Fifth, understanding and managing the experience of customer called Customer Experience Management also can increase customer satisfaction. Measuring only customers' experience and adapting it to marketing strategy make products position in the gap between the customers' expectation and experience not required by market. A key component of CEM is its application across all organizational functions. At last, the direction of change and development of CRM can be defined from the conceptualization of information technology represented by Ubiquitous and Web 2.0. Instead of just managing customer information, companies should take the initiative in personalized system with customer oriented strategy. Furthermore, with the regular communication between CRM stakeholders (Sales-Marketing-IT), customer's demand should be directly reflected to enterprise strategy in real time.

• International Commerce and Information Review
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• v.7 no.4
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• pp.387-407
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• 2005

This paper is to study globalization motives and strategies of Japanese and Korean industries by analyzing the causes and patterns of foreign direct investment (FDI) of the firms of the two countries during the 1980s and 1990s. First we develop a FDI function from the profit maximizing model of firms. Then we use regression analysis to determine internally driving-out factors and externally-inducing factors. Japanese FDI strategy has gone through three different stages; from natural resource-seeking investment in the 1950s and 1960s to market-expansion investment in the 1970s and 1980s and to a combination of cost-reducing (low-cost labor-seeking) investment and market-penetrating investment in the 1990s. On the other hand, Korean FDI behavior has gone through four different stages; from the learning stage with small investments in the 1970s, to natural resource-seeking investment in the early and mid 1980s, to the growth stage in the late 1980s and the early 1990s, to the maturity stage of the mid and late 1990s. The last two stages were characterized by a combination of cost-reducing investment and market-seeking investment. As a late comer, Korea began its FDI two decades later than Japan, but caught up the patterns of Japanese FDI by the mid 1990s and is in a competing position with Japan. Our findings show that both Japanese FDI and Korean FDI in Asia and other developing countries tendto be in labor-intensive sectors where their firms are losing their comparative advantages at home. The main motive for FDI into these regions is low-cost resource seeking. On the other hand, both Japanese FDI and Korean FDI in the U.S. and Europe tend to be knowledge-intensive sectors where Japanese and Korean firms attempt to internalize transaction and information costs by globalizing its production. The main motive for FDI into these regions is market-seeking. Firms in both countries have increased their investments in Mexico and Western and Eastern Europe in order to penetrate large economic blocs such as the EU and NAFTA area. Korean firms are more aggressive in expanding into new and untested markets than are their counterpart in Japan. Evidence of this can be seen in the scarcity of Japanese FDI and abundance of Korean FDI in Eastern Europe and China.

• Journal of Distribution Science
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• v.11 no.4
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• pp.61-72
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• 2013

Purpose - It is widely accepted that the process of developing marketing strategy is composed of three steps: market segmentation, target market selection and positioning. However, mass marketing strategy based on cost reduction through economies of scale and standardized products, can be also an effective strategic option. Many marketing scholars including Theodore Levitt emphasize the importance of applying the mass production concept to various industries including service industries. Especially, in times of economic downturn, the capability of providing consumers with low-priced, value products can be an important source of competitive advantage, as well as the ability of providing high-priced premium products. Marketers should decide whether they will implement mass marketing strategy or target marketing strategy. The present study theoretically shows that firms should understand the target customers' price elasticity as well as the firm's cost structure in order to make such a strategic decision. Research design, data, and methodology - Instead of implementing an empirical study, this study provides a theoretical(mathematical) investigation on the effect of consumers' price elasticity on a firm's optimal price level, profit, sales volume, revenue, and cost. The results are mostly deduced from derivative calculations and several graphs are utilized to represent the results on the relationships between the variables under study. Results - The analytical results suggest that it is more profitable for a firm to adopt the segment/target marketing strategy (more specifically the differentiation strategy) when the degree of consumers' heterogeneity is high and the proportion of the fixed cost in the total cost is low. On the other hand, if the degree of consumers' heterogeneity is low and the fixed cost is high, it is better to adopt the mass marketing strategy or the cost leadership strategy. The strategy of concentrating on a single target market will be effective when consumers' needs are highly heterogeneous but the fixed cost is high. Any of the three types of generic strategies proposed my Porter(1980, 1985) can be applied when both the consumers' heterogeneity and the fixed cost are low. This study also proposes the contribution-margin-based method for developing the optimal pricing strategy. Conclusions - One of the primary roles of marketers is to find a proper compromise between the two conflicting goals of maximizing customer satisfaction and minimizing cost. In order to do so, he or she should understand the characteristics of the target customers as well as the cost structure of the firm. In addition to the theoretical analyses, this study discusses several business cases and explains how superior companies find the optimal compromise position between these two goals and dominate the market. One of the radical changes recently taking place in business arena is the reduction of production and distribution costs of both physical goods and information due to the advancement and the wide diffusion of information technology. The cost reduction combined with lowered priced elasticity incurred by customized products and services, will enable many firms to adopt the mass customization strategy.

• International Area Studies Review
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• v.22 no.1
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• pp.123-140
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• 2018

This paper analyzes herd behavior observed in the loan market from 2001 to 2014 using a panel data on commercial banks including state-owned banks, domestic private banks, foreign banks, and Islamic banks. The paper finds evidence that herd behaviors of domestic private and foreign banks have been pronounced and long-lasting around the 2008 global financial crisis when state-owned banks did not show such a behavior. This result shows that since private banks tend to be keen on maximizing profits and avoid financial risks exposed by lending during a financial crisis, their lending decisions are not independent but dependent on whether other banks increase loans or not. On the other hand, Islamic banks do not show herd behavior during the financial crisis. This finding is consistent with earlier studies that Islamic banks have different characteristics, such as profit and operation mechanisms, from other private banks. Another interesting finding is that when it comes to rural loans, all the banks' herd behavior is short-lived and the herding indexes are quite volatile. This finding is attributable to distinct features of rural loans. Usually maturities of rural loans are shorter than city loans and related to the cycle of farming. Agricultural production is heavily dependent on unpredicted factors, such as floods and droughts, not previous year's production. Lastly, the paper finds a herding across bank type that state-owned, foreign, and Islamic banks follow domestic private banks'lending decisions.

• Asia Marketing Journal
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• v.7 no.1
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• pp.21-42
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• 2005

Customer Relationship Management (CRM) is a corporate marketing strategy maintaining and managing customers. And with CRM companies maximize the customer's value through a series of processes of new customer retention, VIP customer retention, customer value increase, potential customer activation, and customers for lifetime by collecting the customer information and taking advantage of it effectively. In particular, as the competitive environment is changing rapidly and getting more intense, maintaining the customer retention through customer churn management becomes more important in order to increase the customer value for maximizing the company's profit and to build up the relationship with customers. For example, the financial industry has managed the customer churn with the concept of customer segmentation. Recently the customer retention and churn management is becoming increasingly important in all business fields as well as financial industry since the companies expect the effect of preventing the customer churn by identifying characteristics of customers. However, despite the increasing interest and importance of the management of the customer churn, not many of studies are systematically executed by analyzing the data of customer churn. In this study we analyze the actual data of CRM activities for the customer retention, specifically the data of TV home-shopping. By doing so, we hope to identify the differences of demographic attributes and transaction specific characteristics in consumer behaviors between the churning customer and the retained customers. In addition, we try to find out the variables which can impact the churning of the customers and to predict the churn rate of individual customer through our proposed model of customer churn. In the end, based on our findings we suggest the possible marketing strategies for TV home-shopping companies.