• Title/Summary/Keyword: strategic options

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Vertical Integration of Solar business and its Value Analysis: Efficiency or Flexibility (태양광 수직통합화가 사업가치에 미치는 영향: 효율성 및 유연성)

  • Kim, Kyung-Nam;Jeon, Woo-Chan;SonU, Suk-Ho
    • New & Renewable Energy
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    • v.8 no.2
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    • pp.33-43
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    • 2012
  • Why solar companies preferred vertical integration of whole value chain? Major solar companies have built internally strong vertical integration of entire PV value chain. We raise a question whether such integration increases the corporate value and whether market situation affects the result. To test these questions, we conducted multi-variant analysis where characteristic factors mainly affect the corporate value measured in terms of Tobin'Q, based on the financial and non-financial data of PV companies listed in US stock market between 2005 and 2010. We hypothesize that since integration increases the overall efficiency but decreases the flexibility to adjust to various market situation, the combined effect of the efficiency gain and the flexibility loss ultimately determines the sign of integration effect on the corporate vale. We infer that the combined effect will be influenced heavily by business cycle, as in boom market (Seller's market) the efficiency gain may be larger than the flexibility loss and vice versa in bust market. We test whether the sign of combined effect changes after the year of 2009 and which factors influence most the sign. Year of 2009 is known as the year when market shifted from Seller's to Buyer's market. We show that 1) integration increases corporate value in general but after 2009 integration significantly decreases the value, 2) the ratios such as Production/Total Cost, Cash turnover period chosen for reversal of the flexibility measure are negatively affect Tobin's Q and especially stronger after 2009. This shows the flexibility improves corporate value and stronger in the recess period (Buyer's market). These results imply that solar company should set up integration strategy considering the tradeoff between efficiency and flexibility and the impact of the business cycle on both factors. Strategy only based on the price competitiveness determined in boom time can bring undesirable outcomes to the company. In addition, Strategic alliances in some value chains as a flexible bondage should be taken in account as complementary choice to the rigid integration.

Economic Evaluation and Budget Impact Analysis of the Surveillance Program for Hepatocellular Carcinoma in Thai Chronic Hepatitis B Patients

  • Sangmala, Pannapa;Chaikledkaew, Usa;Tanwandee, Tawesak;Pongchareonsuk, Petcharat
    • Asian Pacific Journal of Cancer Prevention
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    • v.15 no.20
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    • pp.8993-9004
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    • 2014
  • Background: The incidence rate and the treatment costs of hepatocellular carcinoma (HCC) are high, especially in Thailand. Previous studies indicated that early detection by a surveillance program could help by down-staging. This study aimed to compare the costs and health outcomes associated with the introduction of a HCC surveillance program with no program and to estimate the budget impact if the HCC surveillance program were implemented. Materials and Methods: A cost utility analysis using a decision tree and Markov models was used to compare costs and outcomes during the lifetime period based on a societal perspective between alternative HCC surveillance strategies with no program. Costs included direct medical, direct non-medical, and indirect costs. Health outcomes were measured as life years (LYs), and quality adjusted life years (QALYs). The results were presented in terms of the incremental cost-effectiveness ratio (ICER) in Thai THB per QALY gained. One-way and probabilistic sensitivity analyses were applied to investigate parameter uncertainties. Budget impact analysis (BIA) was performed based on the governmental perspective. Results: Semi-annual ultrasonography (US) and semi-annual ultrasonography plus alpha-fetoprotein (US plus AFP) as the first screening for HCC surveillance would be cost-effective options at the willingness to pay (WTP) threshold of 160,000 THB per QALY gained compared with no surveillance program (ICER=118,796 and ICER=123,451 THB/QALY), respectively. The semi-annual US plus AFP yielded more net monetary benefit, but caused a substantially higher budget (237 to 502 million THB) than semi-annual US (81 to 201 million THB) during the next ten fiscal years. Conclusions: Our results suggested that a semi-annual US program should be used as the first screening for HCC surveillance and included in the benefit package of Thai health insurance schemes for both chronic hepatitis B males and females aged between 40-50 years. In addition, policy makers considered the program could be feasible, but additional evidence is needed to support the whole prevention system before the implementation of a strategic plan.

The Effect of Cloud Service Risks on the Intention of Purchasing Real Options: Focusing on Public Cloud Service of Small and Medium-sized Enterprises (클라우드 서비스 위험이 실물옵션 채택의도에 미치는 영향: 중소기업의 퍼블릭 클라우드 서비스를 중심으로)

  • Kim, Jeong-eun;Yang, Hee-dong
    • Information Systems Review
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    • v.17 no.1
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    • pp.117-140
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    • 2015
  • Cloud Computing has drawn attention as one of 10 IT strategic technology trends and has various advantages such as cost reduction and enhancing business flexibility. However, corporations hesitate to adopt the service because of unexpected risks. Especially compared to large firm, medium and small ones use public cloud that security risk is high. Meanwhile, real option strategy has drawn attention as the method to hedge uncertainty in IT projects. Therefore, in this study causal relationships among technical, security, relational, and economic risks of cloud service will be investigated. Eventually, this study investigates how those risks influence the intention to choose the real option about the cloud service. For this study, five hypotheses is drawn, and a survey is conducted about the medium and small firms which are currently using cloud service to examine hypotheses. Since the study is at organizational level, 287 questionnaire replies are recalculated to 120 firms. For statistical analysis, Smart PLS and SPSS Statistics18 are used. As a result, technical risk of cloud service has significantly positive influence on security risk. Second, security risk and relational risk of cloud service has significantly positive influence on economic risk. Third, economic risk of cloud service has significantly positive influence on the intention to purchase the delay option or abandon option. Based on this result, this research discussed practical and academic implications and the limitations.

An Approach of Cost-Benefit Analysis for GIS Project Evaluations (지리정보 사업의 비용편익 분석의 고찰)

  • Kim, Woo-Gwan;Kim, Young-Hoon
    • Journal of the Korean association of regional geographers
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    • v.4 no.2
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    • pp.79-94
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    • 1998
  • This study begins with emphasis on the approach to public policy development and the extent to which a GIS framework can be used to evaluate projects objectively. This paper relates to public policy making and the use of GIS as a strategic management tool rather than the development of GIS technologies which has been the focus of attention since the advent of the first generation GIS systems in the 1960s. In order to consolidate a view towards public policy, the aim of this study is to show the advantages of using GIS to generate results which could be evaluated by cost and benefit analysis giving options of the alternative methods to estimate the feasibility of projects (both tangible and intangible) in a real public policy scenario. This study also reports that the tangible benefits associated with the GIS projects are better information processing, the easy analysis of data and the cost savings of map updates and printing, whilst the intangible benefits include quality decision making, and precise management of data through computing networks. In GIS context, the task of analysing and evaluating GIS projects is assumed in order to facilitate scientific and quantitative cost-benefit analysis. Previous methods of the cost-benefit analysis has not fully supported the evaluation of the intangible benefits and it has not been possible to make public policy realistic or scientifically understandable limiting decision makers in public domain. With the GIS decision makers are able to explore the potential of projects with this powerful decision supporting tool in practical application. On the basis of its potentials and limitations to cost-benefit analysis, therefore, it can be concluded that more flexible analysis and evaluation methodologies are needed to extend into the intangible benefits. In order to balance the evaluation of both quantitative and qualitative approaches on the cost-benefit analysis new or additional utilities will be required for the next GIS generation appraisal tool.

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Case report: Application of Implant Supported Removable Partial Denture due to Multiple Dental Implant Loss of the Fixed Implant Supported Prosthesis (다수의 임플란트발거로 임플란트 고정성 보철이 실패한 환자에서의 잔존 임플란트를 이용한 부분 가철성 국소의치 수복증례)

  • Kang, Jeong Kyung;Nam, Gi Hoon
    • Journal of the Korean Academy of Esthetic Dentistry
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    • v.23 no.1
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    • pp.34-40
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    • 2014
  • There are several treatment options for rehabilitation of partial edentulism including the use of conventional or implant-retained fixed prostheses. However, such prosthetic options cannot always be possible because of compromised general and oral health (i.e. loss of supporting tissues, medical reasons, extensive surgical protocol and osseointegration failure of dental implant) as well as the affordability of patients. In some cases, removable partial denture provides easier access for oral hygiene procedures and the ability to correct discrepancies in dental arch relationships than implant fixed prosthesis. Recently, Implant Supported Removable Partial Denture (ISRPD) where to place dental implant in strategic position has been suggested to improve the limitation and shortcomings of conventional RPD. ISPRD can overcome mechanical limition of conventional RPD by placing implant in a favorable position and can be cost-effective, prosthetic solution for partially edentulous patients who are not immediate candidates for extensive, fixed implant supported restorations. Incorporation of dental implants to improve the RPD support and retention and to enhance patient acceptance should be considered when treatment planning for RPD. In this case, 59 years old male patient who received dental treatment of implant fixed prosthesis on both side of the upper jaw and implant overdenture on lower jaw showed implant abutment screw fracture on #15i and osseointegration failure on multiple number of implants. After removing failed implants, we planned ISRPD using #15i,24i,25i,26i and #23 natural tooth for RPD abutment. We fabricated #23 surveyed crown,#24i=25i=26i surveyed bridge and #15i gold coping for support,retention and stability for RPD. Periodic follow up check for 2years has been performed since the ISRPD delivery to the patient. No sign of screw loosening, fracture or bone resorption around abutment implants were detected.

Life Cycle of Index Derivatives and Trading Behavior by Investor Types (주가지수 파생상품 Life Cycle과 투자자 유형별 거래행태)

  • Oh, Seung-Hyun;Hahn, Sang-Buhm
    • The Korean Journal of Financial Management
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    • v.25 no.2
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    • pp.165-190
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    • 2008
  • The degree of informational asymmetry relating to the expiration of index derivatives is usually increased as an expiration day of index derivatives approaches. The increase in the degree of informational asymmetry may have some effects on trading behavior of investors. To examine what the effects look like, 'life cycle of index derivatives' in this study is defined as three adjacent periods around expiration day: pre-expiration period(a week before the expiration day), post-expiration period(a week after the expiration day), and remaining period. It is inspected whether stock investor's trading behavior is changed according to the life cycle of KOSPI200 derivatives and what the reason of the changing behavior is. We have four results. First, trading behavior of each investor group is categorized into three patterns: ㄱ-pattern, L-pattern and U-pattern. The level of trading activity is low for pre-expiration period and normal for other periods in the ㄱ-pattern. L-pattern means that the level of trading activity is high for post-expiration period and normal for other periods. In the U-pattern, the trading activity is reduced for remaining period compared to other periods. Second, individual investors have ㄱ-pattern of trading large stocks according to the life cycle of KOSPI200 index futures while they show U-pattern according to the life cycle of KOSPI200 index options. Their trading behavior is consistent with the prediction of Foster and Viswanathan(1990)'s model for strategic liquidity investors. Third, trading pattern of foreign investors in relation to life cycle of index derivatives is partially explained by the model, but trading pattern of institutional investors has nothing to do with the predictions of the model.

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Efficacy of UN's Sanctions on North Korea's Nuclear and North Korea's Regime Survival Strategy (유엔의 북핵 대북제재조치의 실효성과 북한의 체제생존전략)

  • KIM, JOO-SAM
    • Korea and Global Affairs
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    • v.2 no.1
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    • pp.69-92
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    • 2018
  • North Korea conducted a total of six nuclear tests from the 1st test of 2006 to September, 2017. North Korea developed an armed forces security strategy at the level of regime protection and defense to respond to U.S. hostile policy. However, it is certain that strategic goals of North Korea's nuclear test were to overcome a crisis in North Korea's regime through US-North Korea negotiation and complete nuclear armed forces for socialist unification on the Korean Peninsula. North Korea's continuous nuclear test is a direct factor in threatening peace on the Korean Peninsula and an indirect factor in security dynamics of Northeast Asia. The U.N. Security Council has enforced sanctions against North Korea through six resolutions against North Korea's reckless nuclear test for the past 10 years. However, Kim Jong-Un's regime is in a position to stick to simultaneous pursuit of nuclear and economic development in spite of anti-North sanction of international society including U.N. and U.S.A. It is understood that North Korea was stimulated to conduct intense nuclear test as U.N. and U.S.A's anti-North sanction was not effective on North Korea. Full-scale and local wars are expected as military options, one of anti-North sanctions of the Trump administration. The Trump administration has attempted diplomatic pressure strategy as a secondary boycott unlike previous administrations. Nevertheless, North Korea has stood against U.N. and U.S.A's anti-North sanction with brinkmanship tactics, announcing full-scale military confrontation against U.S. It is judged that North Korea will pursue simultaneous nuclear weapons and economic development in terms of regime survival. North Korea will have less strategic choices in that its regime may collapse because of realistic national strategy between U.S.A. and China.

Seeking a Better Place: Sustainability in the CPG Industry (추심경호적지방(追寻更好的地方): 유포장적소비품적산업적가지속발전(有包装的消费品的产业的可持续发展))

  • Rapert, Molly Inhofe;Newman, Christopher;Park, Seong-Yeon;Lee, Eun-Mi
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.199-207
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    • 2010
  • For us, there is virtually no distinction between being a responsible citizen and a successful business... they are one and the same for Wal-Mart today." ~ Lee Scott, al-Mart CEO after the 2005 Katrina disaster; cited in Green to Gold (Esty and Winston 2006). Lee Scott's statement signaled a new era in sustainability as manufacturers and retailers around the globe watched the world's largest mass merchandiser confirm its intentions with respect to sustainability. For decades, the environmental movement has grown, slowly bleeding over into the corporate world. Companies have been born, products have been created, academic journals have been launched, and government initiatives have been undertaken - all in the pursuit of sustainability (Peattie and Crane 2005). While progress has been admittedly slower than some may desire, the emergence and entrance of environmentally concerned mass merchandisers has done much to help with sustainable efforts. To better understand this movement, we incorporate the perspectives of both executives and consumers involved in the consumer packaged goods (CPG) industry. This research relies on three underlying themes: (1) Conceptual and anecdotal evidence suggests that companies undertake sustainability initiatives for a plethora of reasons, (2) The number of sustainability initiatives continues to increase in the consumer packaged goods industries, and (3) That it is, therefore, necessary to explore the role that sustainability plays in the minds of consumers. In light of these themes, surveys were administered to and completed by 143 college students and 101 business executives to assess a number of variables in regards to sustainability including willingness-to-pay, behavioral intentions, attitudes, willingness-to-pay, and preferences. Survey results indicate that the top three reasons why executives believe sustainability to be important include (1) the opportunity for profitability, (2) the fulfillment of an obligation to the environment, and (3) a responsibility to customers and shareholders. College students identified the top three reasons as (1) a responsibility to the environment, (2) an indebtedness to future generations, and (3) an effective management of resources. While the rationale for supporting sustainability efforts differed between college students and executives, the executives and consumers reported similar responses for the majority of the remaining sustainability issues. Furthermore, when we asked consumers to assess the importance of six key issues (healthcare, economy, education, crime, government spending, and environment) previously identified as important to consumers by Gallup Poll, protecting the environment only ranked fourth out of the six (Carlson 2005). While all six of these issues were identified as important, the top three that emerged as most important were (1) improvements in education, (2) the economy, and (3) health care. As the pursuit and incorporation of sustainability continues to evolve, so too will the expected outcomes. New definitions of performance that reflect the social/business benefits as well as the lengthened implementation period are relevant and warranted (Ehrenfeld 2005; Hitchcock and Willard 2006). We identified three primary categories of outcomes based on a literature review of both anecdotal and conceptual expectations of sustainability: (1) improvements in constituent satisfaction, (2) differentiation opportunities, and (3) financial rewards. Within each of these categories, several specific outcomes were identified resulting in eleven different outcomes arising from sustainability initiatives. Our survey results indicate that the top five most likely outcomes for companies that pursue sustainability are: (1) green consumers will be more satisfied, (2) company image will be better, (3) corporate responsibility will be enhanced, (4) energy costs will be reduced, and (5) products will be more innovative. Additionally, to better understand the interesting intersection between the environmental "identity" of a consumer and the willingness to manifest that identity with marketplace purchases, we extended prior research developed by Experian Research (2008). Accordingly, respondents were categorized as one of four types of green consumers (Behavioral Greens, Think Greens, Potential Greens, or True Browns) to garner a better understanding of the green consumer in addition to assisting with a more effective interpretation of results. We assessed these consumers' willingness to engage in eco-friendly behavior by evaluating three options: (1) shopping at retailers that support environmental initiatives, (2) paying more for products that protect the environment, and (3) paying higher taxes so the government can support environmental initiatives. Think Greens expressed the greatest willingness to change, followed by Behavioral Greens, Potential Greens, and True Browns. These differences were all significant at p<.01. Further Conclusions and Implications We have undertaken a descriptive study which seeks to enhance our understanding of the strategic domain of sustainability. Specifically, this research fills a gap in the literature by comparing and contrasting the sustainability views of business executives and consumers with specific regard to preferences, intentions, willingness-to-pay, behavior, and attitudes. For practitioners, much can be gained from a strategic standpoint. In addition to the many results already reported, respondents also reported than willing to pay more for products that protect the environment. Other specific results indicate that female respondents consistently communicate a stronger willingness than males to pay more for these products and to shop at eco-friendly retailers. Knowing this additional information, practitioners can now have a more specific market in which to target and communicate their sustainability efforts. While this research is only an initial step towards understanding similarities and differences among practitioners and consumers regarding sustainability, it presents original findings that contribute to both practice and research. Future research should be directed toward examining other variables affecting this relationship, as well as other specific industries.

An Empirical Investigation Into the Effect of Organizational Capabilities on Service Innovation in Knowledge Intensive Business Firms (지식서비스기업의 서비스 혁신에 영향을 미치는 조직의 역량에 관한 연구)

  • Yoon, Bo Sung;Kim, Yong Jin;Jin, Seung Hye
    • Asia pacific journal of information systems
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    • v.23 no.1
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    • pp.87-106
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    • 2013
  • In the service-oriented economy, knowledge and skills are considered core resources to secure competitive advantages and service innovation. Knowledge management capability, which facilitates to produce, share, accumulate and reuse knowledge, becomes as important as knowledge itself to create service value. Along with knowledge management capability, dynamic capability and operational capability are the key capabilities related to managing service delivery processes. Previous studies indicated that these three capabilities are related to service innovation. Although separately investigate the relationship between the three capabilities. The purpose of this study is 1) to define variables that have effects on service innovation including knowledge management capability, dynamic capability and operational capability, and 2) to empirically test to identify relationship among variables. In this study, knowledge management capability is defined as the capability to manage knowledge process. Dynamic capability is regarded as the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. Operational capability refers to a high-level routine that, together with its implementing input flows, confers upon an organization's management a set of decision options for producing significant outputs of a particular type. The proposed research model was tested against the data collected through the survey method. The survey questionnaire was distributed to the managers who participated in an educational program for management consulting. Each individual who answered the questionnaire represented a knowledge based service firm. About 212 surveys questionnaires were sent via e-mail or directly delivered to respondents. The number of useable responses was 93. Measurement items were adapted from previous studies to reflect the characteristics of the industry each informant worked in. All measurement items were in, 5 point Likert scale with anchors ranging from strongly disagree (1) to strongly agree (5). Out of 93 respondents, about 81% were male, 82% of respondents were in their 30s. In terms of jobs, managers were 39.78%, professions/technicians were 24.73%, researchers were 12.90%, and sales people were 10.75%. Most of respondents worked for medium size enterprises (47,31%) in their, less than 30 employees (46.24%) in their number of employees, and less than 10 million USD (65.59%) in terms of sales volume. To test the proposed research model, structural equation modeling (SEM) technique (SPSS 16.0 and AMOS version 5) was used. We found that the three organizational capabilities have influence on service innovation directly or indirectly. Knowledge management capability directly affects dynamic capability and service innovation but indirectly affect operational capability through dynamic capability. Dynamic capability has no direct impact on service innovation, but influence service innovation indirectly through operational capability. Operational capability was found to positively affect service innovation. In sum, three organizational capabilities (knowledge management capability, dynamic capability and operational capability) need to be strategically managed at firm level, because organizational capabilities are significantly related to service innovation. An interesting result is that dynamic capability has a positive effect on service innovation only indirectly through operational capability. This result indicates that service innovation might have a characteristics similar to process innovation rather than product orientation. The results also show that organizational capabilities are inter-correlated to influence each other. Dynamic capability enables effective resource management, arrangement, and integration. Through these dynamic capability affected activities, strategic agility and responsibility get strength. Knowledge management capability intensify dynamic capability and service innovation. Knowledge management capability is the basis of dynamic capability as well. The theoretical and practical implications are discussed further in the conclusion section.

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A Study on the Intelligent Service Selection Reasoning for Enhanced User Satisfaction : Appliance to Cloud Computing Service (사용자 만족도 향상을 위한 지능형 서비스 선정 방안에 관한 연구 : 클라우드 컴퓨팅 서비스에의 적용)

  • Shin, Dong Cheon
    • Journal of Intelligence and Information Systems
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    • v.18 no.3
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    • pp.35-51
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    • 2012
  • Cloud computing is internet-based computing where computing resources are offered over the Internet as scalable and on-demand services. In particular, in case a number of various cloud services emerge in accordance with development of internet and mobile technology, to select and provide services with which service users satisfy is one of the important issues. Most of previous works show the limitation in the degree of user satisfaction because they are based on so called concept similarity in relation to user requirements or are lack of versatility of user preferences. This paper presents cloud service selection reasoning which can be applied to the general cloud service environments including a variety of computing resource services, not limited to web services. In relation to the service environments, there are two kinds of services: atomic service and composite service. An atomic service consists of service attributes which represent the characteristics of service such as functionality, performance, or specification. A composite service can be created by composition of atomic services and other composite services. Therefore, a composite service inherits attributes of component services. On the other hand, the main participants in providing with cloud services are service users, service suppliers, and service operators. Service suppliers can register services autonomously or in accordance with the strategic collaboration with service operators. Service users submit request queries including service name and requirements to the service management system. The service management system consists of a query processor for processing user queries, a registration manager for service registration, and a selection engine for service selection reasoning. In order to enhance the degree of user satisfaction, our reasoning stands on basis of the degree of conformance to user requirements of service attributes in terms of functionality, performance, and specification of service attributes, instead of concept similarity as in ontology-based reasoning. For this we introduce so called a service attribute graph (SAG) which is generated by considering the inclusion relationship among instances of a service attribute from several perspectives like functionality, performance, and specification. Hence, SAG is a directed graph which shows the inclusion relationships among attribute instances. Since the degree of conformance is very close to the inclusion relationship, we can say the acceptability of services depends on the closeness of inclusion relationship among corresponding attribute instances. That is, the high closeness implies the high acceptability because the degree of closeness reflects the degree of conformance among attributes instances. The degree of closeness is proportional to the path length between two vertex in SAG. The shorter path length means more close inclusion relationship than longer path length, which implies the higher degree of conformance. In addition to acceptability, in this paper, other user preferences such as priority for attributes and mandatary options are reflected for the variety of user requirements. Furthermore, to consider various types of attribute like character, number, and boolean also helps to support the variety of user requirements. Finally, according to service value to price cloud services are rated and recommended to users. One of the significances of this paper is the first try to present a graph-based selection reasoning unlike other works, while considering various user preferences in relation with service attributes.