• Title/Summary/Keyword: Distribution Enterprises

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A Study on the Korea Distribution Promotion Policy and Adjustment Policy (국내 유통진흥정책과 유통조정정책에 대한 고찰)

  • Kim, Dae-Yun;Kwon, Sung-Ku
    • Journal of Distribution Science
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    • v.11 no.4
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    • pp.89-97
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    • 2013
  • Purpose - The purpose of this study is to systematically review the background of the Korean distribution promotion policy and distribution adjustment policies along with related regulations and policies. Research design, data, and methodology - Domestic distribution policy and relevant laws were examined through a review of existing research literature. The results of the development process of the domestic distribution policy, promotion policies, and adjustment policies are summarized below. Results - The results are summarized as follows. First, the purpose of the development of the domestic distribution promotion policy was to strengthen the competitiveness of the small and medium business industry through structural advancement of the small and medium industry. By expanding the managerial base for the small and medium industry, a new balance could be created in the national economy. There was a requirement for an early assistance policy for small and medium businesses as a base of these businesses in the distribution industry developed from their original model of catering to a traditional market of retail shops. Since 1996, there was a need for this early assistance policy due to the expansion and rapid growth of large scale stores causing a change in the consumption pattern for distribution markets and the decline of large enterprises. Second, the government supports small and medium business distribution through distribution promotion policies by supporting an organization promoting small business and supporting innovation in the distribution system. Third, in 1961 a business mediation system was established to protect small and medium industries. The Small and Medium Business Administration advises conglomerates to postpone acquisitions, restrain expansion of the business, or to reduce business scale if small businesses undergo an adverse effect such as decreasing demand because large companies are expanding into their areas. Fourth, the Distribution Adjustment Policy managed large-scale store regulation as follows: ① limitation on construction by urban planning ordinance, ② limitation on location based on traffic impact assessments, ③ regulation based on business guidelines by chiefs of autonomous bodies, ④ regulation on mandatory holidays and limitation of business hours. This large-scale store regulation is a policy introduced by authority to increase competitiveness of small and medium business distribution by the government. Conclusions - As discussed in this study, the distribution promotion policy and distribution adjustment policy are government distribution policies focused on the protection of the small and medium distribution businesses. This study is timely, since it was planned when the strengthening of the revisions of the Distribution Industry Development Act, aimed to protect small and medium retailers and merchants, was under discussion. The significance of this study is that it offers insights for the development of new policies in the future and an opportunity to consider the background of the distribution policy by the government.

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An Efficiency Evaluation of Firms Having Implemented ERP using DEA/Window in the Retail and Distribution Industry (DEA/Window기법을 이용한 유통산업의 ERP 도입 효율성 연구)

  • Baek, Seong-Hyun;Park, Kwang-Ho;Kim, Tai-Young
    • Information Systems Review
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    • v.15 no.2
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    • pp.75-90
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    • 2013
  • This research was undertaken to find out how effectively ERP has been employed by the enterprises through comparing and analyzing the management performance of each enterprise after introducing ERP to Retail and Distribution Industry using DEA technique. According to the research results, efficiency evaluation for each site was calculated through input and output factors to find out comparative ERP system usage efficiency of 10 Retail and Distribution Industry Companies in terms of such factors as employee, quick assets, inventories, sales revenue, operating income. This paper confirms that the companies having launched management innovation by aggressively adopting ERP saw their management efficiency improving consistently, and in the distribution industry, it took at least 3 years before the effect of ERP introduction on enhancing management efficiency became visible. Furthermore, this paper also reveals that, unlike the manufacturing industry which was the subject of the previous study, efficiency was not necessarily proportional to the size of company in the service industry including distribution and export which was the subject of this paper.

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The Policy of Win-Win Growth between Large and Small Enterprises : A South Korean Model (한국형 동반성장 정책의 방향과 과제)

  • Lee, Jang-Woo
    • Korean small business review
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    • v.33 no.4
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    • pp.77-93
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    • 2011
  • Since 2000, the employment rate of small and medium enterprises (SMEs) has dwindled while the creation of new jobs and the emergence of healthy SMEs have been stagnant. The fundamental reason for these symptoms is that the economic structure is disadvantageous to SMEs. In particular, the greater gap between SMEs and large enterprises has resulted in polarization, and the resulting imbalance has become the largest obstacle to improving SMEs' competitiveness. For example, the total productivity has continued to drop, and the average productivity of SMEs is now merely 30% of that of large enterprises, and the average wage of SMEs' employees is only 53% of that of large enterprises. Along with polarization, rapid industrialization has also caused anti-enterprise consensus, the collapse of the middle class, hostility towards establishments, and other aftereffects. The general consensus is that unless these problems are solved, South Korea will not become an advanced country. Especially, South Korea is now facing issues that need urgent measures, such as the decline of its economic growth, the worsening distribution of profits, and the increased external volatility. Recognizing such negative trends, the MB administration proposed a win-win growth policy and recently introduced a new national value called "ecosystemic development." As the terms in such policy agenda are similar, however, the conceptual differences among such terms must first be fully understood. Therefore, in this study, the concepts of win-win growth policy and ecosystemic development, and the need for them, were surveyed, and their differences from and similarities with other policy concepts like win-win cooperation and symbiotic development were examined. Based on the results of the survey and examination, the study introduced a South Korean model of win-win growth, targeting the promotion of a sound balance between large enterprises and SMEs and an innovative ecosystem, and finally, proposing future policy tasks. Win-win growth is not an academic term but a policy term. Thus, it is less advisable to give a theoretical definition of it than to understand its concept based on its objective and method as a policy. The core of the MB administration's win-win growth policy is the creation of a partnership between key economic subjects such as large enterprises and SMEs based on each subject's differentiated capacity, and such economic subjects' joint promotion of growth opportunities. Its objective is to contribute to the establishment of an advanced capitalistic system by securing the sustainability of the South Korean economy. Such win-win growth policy includes three core concepts. The first concept, ecosystem, is that win-win growth should be understood from the viewpoint of an industrial ecosystem and should be pursued by overcoming the issues of specific enterprises. An enterprise is not an independent entity but a social entity, meaning it exists in relationship with the society (Drucker, 2011). The second concept, balance, points to the fact that an effort should be made to establish a systemic and social infrastructure for a healthy balance in the industry. The social system and infrastructure should be established in such a way as to create a balance between short- term needs and long-term sustainability, between freedom and responsibility, and between profitability and social obligations. Finally, the third concept is the behavioral change of economic entities. The win-win growth policy is not merely about simple transactional relationships or determining reasonable prices but more about the need for a behavior change on the part of economic entities, without which the objectives of the policy cannot be achieved. Various advanced countries have developed different win-win growth models based on their respective cultures and economic-development stages. Japan, whose culture is characterized by a relatively high level of group-centered trust, has developed a productivity improvement model based on such culture, whereas the U.S., which has a highly developed system of market capitalism, has developed a system that instigates or promotes market-oriented technological innovation. Unlike Japan or the U.S., Europe, a late starter, has not fully developed a trust-based culture or market capitalism and thus often uses a policy-led model based on which the government leads the improvement of productivity and promotes technological innovation. By modeling successful cases from these advanced countries, South Korea can establish its unique win-win growth system. For this, it needs to determine the method and tasks that suit its circumstances by examining the prerequisites for its success as well as the strengths and weaknesses of each advanced country. This paper proposes a South Korean model of win-win growth, whose objective is to upgrade the country's low-trust-level-based industrial structure, in which large enterprises and SMEs depend only on independent survival strategies, to a high-trust-level-based social ecosystem, in which large enterprises and SMEs develop a cooperative relationship as partners. Based on this objective, the model proposes the establishment of a sound balance of systems and infrastructure between large enterprises and SMEs, and to form a crenovative social ecosystem. The South Korean model of win-win growth consists of three axes: utilization of the South Koreans' potential, which creates community-oriented energy; fusion-style improvement of various control and self-regulated systems for establishing a high-trust-level-oriented social infrastructure; and behavioral change on the part of enterprises in terms of putting an end to their unfair business activities and promoting future-oriented cooperative relationships. This system will establish a dynamic industrial ecosystem that will generate creative energy and will thus contribute to the realization of a sustainable economy in the 21st century. The South Korean model of win-win growth should pursue community-based self-regulation, which promotes the power of efficiency and competition that is fundamentally being pursued by capitalism while at the same time seeking the value of society and community. Already existing in Korea's traditional roots, such objectives have become the bases of the Shinbaram culture, characterized by the South Koreans' spontaneity, creativity, and optimism. In the process of a community's gradual improvement of its rules and procedures, the trust among the community members increases, and the "social capital" that guarantees the successful control of shared resources can be established (Ostrom, 2010). This basic ideal can help reduce the gap between large enterprises and SMEs, alleviating the South Koreans' victim mentality in the face of competition and the open-door policy, and creating crenovative corporate competitiveness. The win-win growth policy emerged for the purpose of addressing the polarization and imbalance structure resulting from the evolution of 21st-century capitalism. It simultaneously pursues efficiency and fairness on one hand and economic and community values on the other, and aims to foster efficient interaction between the market and the government. This policy, however, is also evolving. The win-win growth policy can be considered an extension of the win-win cooperation that the past 'Participatory Government' promoted at the enterprise management level to the level of systems and culture. Also, the ecosystemic development agendum that has recently emerged is a further extension that has been presented as a national ideal of "a new development model that promotes the co-advancement of environmental conservation, growth, economic development, social integration, and national and individual development."

A study of SCM strategic plan: Focusing on the case of LG electronics (공급사슬 관리 구축전략에 관한 연구: LG전자 사례 중심으로)

  • Lee, Gi-Wan;Lee, Sang-Youn
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.83-94
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    • 2011
  • Most domestic companies, with the exclusion of major firms, are reluctant to implement a supply chain management (SCM) network into their operations. Most small- and medium-sized enterprises are not even aware of SCM. Due to the inherent total-systems efficiency of SCM, it coordinates domestic manufacturers, subcontractors, distributors, and physical distributors and cuts down on cost of inventory control, as well as demand management. Furthermore, a lack of SCM causes a decrease in competitiveness for domestic companies. The reason lies in the fundamentality of SCM, which is the characteristic of information sharing, process innovation throughout SCM, and the vast range of problems the SCM management tool is able to address. This study suggests the contemplation and reformation of the current SCM situation by analyzing the SCM strategic plan, discourses and logical discussions on the topic, and a successful case for adapting SCM; hence, the study plans to productively "process" SCM. First, it is necessary to contemplate the theoretical background of SCM before discussing how to successfully process SCM. I will describe the concept and background of SCM in Chapter 2, with a definition of SCM, types of SCM promotional activities, fields of SCM, necessity of applying SCM, and the effects of SCM. All of the defects in currently processing SCM will be introduced in Chapter 3. Discussion items include the following: the Bullwhip Effect; the breakdown in supply chain and sales networks due to e-business; the issue that even though the key to a successful SCM is cooperation between the production and distribution company, during the process of SCM, the companies, many times, put their profits first, resulting in a possible defect in demands estimation. Furthermore, the problems of processing SCM in a domestic distribution-production company concern Information Technology; for example, the new system introduced to the company is not compatible with the pre-existing document architecture. Second, for effective management, distribution and production companies should cooperate and enhance their partnership in the aspect of the corporation; however, in reality, this seldom occurs. Third, in the aspect of the work process, introducing SCM could provoke corporations during the integration of the distribution-production process. Fourth, to increase the achievement of the SCM strategy process, they need to set up a cross-functional team; however, many times, business partners lack the cooperation and business-information sharing tools necessary to effect the transition to SCM. Chapter 4 will address an SCM strategic plan and a case study of LG Electronics. The purpose of the strategic plan, strategic plans for types of business, adopting SCM in a distribution company, and the global supply chain process of LG Electronics will be introduced. The conclusion of the study is located in Chapter 5, which addresses the issue of the fierce competition that companies currently face in the global market environment and their increased investment in SCM, in order to better cope with short product life cycle and high customer expectations. The SCM management system has evolved through the adaptation of improved information, communication, and transportation technologies; now, it demands the utilization of various strategic resources. The introduction of SCM provides benefits to the management of a network of interconnected businesses by securing customer loyalty with cost and time savings, derived through the consolidation of many distribution systems; additionally, SCM helps enterprises form a wide range of marketing strategies. Thus, we could conclude that not only the distributors but all types of businesses should adopt the systems approach to supply chain strategies. SCM deals with the basic stream of distribution and increases the value of a company by replacing physical distribution with information. By the company obtaining and sharing ready information, it is able to create customer satisfaction at the end point of delivery to the consumer.

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Investigation on the Scrum-based Standard Management for Efficient Data Quality Control of Small-sized Companies : A Case Study on Distribution Service of Company 'I' (중소기업의 효율적 데이터 품질관리를 위한 스크럼 기반 표준관리 방안 : 'I'사 물류서비스 적용 사례)

  • Kim, Tai-Yun;Kim, Nam-Gyu;Sohn, Yong-Lak
    • Journal of Information Technology Applications and Management
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    • v.17 no.1
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    • pp.83-105
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    • 2010
  • The competence of enterprise for managing information is evaluated not by the amount of information but by the quality of information such as response time, data consistency, and data correctness. The degradation of data quality is usually caused by the inappropriate process of managing the structure and value of stored data. According to the recent survey on the actual condition of data quality management, the correctness and consistency of data appeared to be the most problematic area among the six criteria of data quality management such as correctness, consistency, availability, timeliness, accessibility, and security. Moreover, the problem was more serious in case of small and medium-sized companies than large enterprises. In this paper, therefore, we attempt to propose a new data quality control methodology for small and medium-sized companies that can improve the correctness and consistency of data without consuming too much time and cost. To adopt the proposed methodology to real application immediately, we provided some scripts for as-is analysis and devised automation tools for managing naming rules of vocabulary, terminology, and data code. Additionally, we performed case study on the distribution service of a small-sized company to estimate the applicability of our tool and methodology.

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Integration of Manufacture and Commerce for a Product Learning System in the Service Industry

  • Liao, Shih-Chung;Pan, Ying-Ju Angela
    • The Journal of Industrial Distribution & Business
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    • v.5 no.2
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    • pp.5-12
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    • 2014
  • Purpose - The purpose of this thesis is to assess the product design digital learning status of universities that are currently involved in learning environment projects in manufacture and commerce integration (MCI). Thus, enterprises must keep learning and creating new inventions with revolutionary progress. Research design, data, and methodology - This study not only emphasizes the analysis of technical ability, course concepts, conducting models, and learning environments of every aspect, but also systematically probes the planning of learning, system framework, web learning, environmental activities, data statistics, and digitalized learning, among other aspects. Results - The results of this study help in finally understanding each school's manufacture and commerce integration situation, in order to evaluate product design learning. Consequently, it is essential to evaluate computer learning at schools, thereby affecting communication and the requirements of business education training. Conclusions - It is essential to focus on MCI to promote web teaching to preserve and enhance knowledge disseminating technologies, and immediately share knowledge with learners, while improving work efficiency and cultivating the talent needed by industry.

A Comparative Study on the Discount Store Selection Behavior between the Korean and the Chinese Consumers' (한·중 소비자의 할인점 점포선택행동 비교)

  • Kim, Won-kyum;Fan, Qing-ji;Youn, Myoung-kil
    • Journal of Distribution Science
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    • v.5 no.1
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    • pp.41-56
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    • 2007
  • China has achieved the most rapid economic growth in the last 20 years, especially since its joining into WTO. Lots of world retail companies are rushing into chinese market. Especially, many discount store operators have been successfully operating and expanding their businesses. Therefore throughly understanding the character of consumers of china, basing on the careful market analysis and implementing correct marketing policies will help to promote retail enterprises' self-competitive in the market.

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Relation Between Employees and Customers Affects to the Positive Word of Mouth Through Customer Satisfaction

  • NGUYEN, Minh Ha;TRAN, Ba Thinh;HUYNH, Luong Tam
    • Journal of Distribution Science
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    • v.17 no.6
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    • pp.65-75
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    • 2019
  • Purpose - Vietnamese customers have a crowd psychology when choosing and buying cars, they believe the advice and comments of those who have used the product. This paper aims to explore how factors in the relation between employees and customers affect to the customer's positive word of mouth (WOM) through customer satisfaction. Research design, data, and methodology - A survey was conducted with 250 customers. This research focus on six factors: (1) familiarity, (2) care, (3) personal connection, (4) employee competence, (5) customer satisfaction, (6) positive WOM. By using Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA) and Structural Equation Model (SEM), this research determined the impact of relation between eployees and customers to the customer satisfaction in order to have the positive WOM to another customers. Results - This result shows that 3 factors: care, personal connection and service quality, have positive effects to customer satisfaction. Moreover, the similar relationship is found between customer satisfaction and positive WOM. The familiarity is not significant in this research. Conclusions - The research results indicate that positive WOM has an important impact of market development for automobile business enterprises in Vietnam. Therefore, administrators should have appropriate strategies to encourage positive WOM to customers.

CSF Analysis centered on the Case Study of a Restaurant Franchise (외식산업 프랜차이즈 사례를 통한 송공요인 분석)

  • Kim, Min-Sun
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.11 no.6
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    • pp.1991-1996
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    • 2010
  • The Korean restaurant franchise business is continuing to grow along with economic growth. Moreover, there are some Korean restaurant franchise enterprises that have managed to enter overseas markets as well, and which are unfolding a strategy for success by leveraging marketing activities that consider the tastes of the respective localities and their consumers' characteristics. This research conducted a comparative analysis of 'Nolbu'and 'Mister Pizza' both considered successful franchises, to identify the CSF(Critical Success factors) of the Korean restaurant franchise business. The results of the research demonstrate the critical success factors, including: efforts such as effective marketing; effort to return part their profits to the community; structured and scientific restaurant management; an effective logistics and distribution system and differentiation against other brands.

Do Firm and Bank Level Characteristics Matter for Lending to Firms during the Financial Crisis?

  • Lee, Mihye
    • The Journal of Industrial Distribution & Business
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    • v.9 no.5
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    • pp.37-46
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    • 2018
  • Purpose - This paper explores the determinants of bank lending to firms during and after the global financial crisis using firm- and bank-level data to answer the questions what caused the contraction of lending to firms despite the loosening monetary policy during this crisis period. Research design, data, and methodology - We investigate the effects of the monetary policy that followed the global financial crisis on firms borrowing. We use a dynamic panel model to address how firms lending respond to monetary policy. The data are obtained from CRETOP and we consider the manufacturing sector for the analysis to control for unobserved heterogeneity such as industry-specific shocks. Results - The findings from the empirical analysis suggest that both bank- and firm-level characteristics are significant determinants of bank lending. Especially, we find that corporate risk, measured by default risk, is one of the key factors that led to a decline in lending during the crisis. Conclusions - This paper shows that companies borrow more from liquid banks, and high bank capital can also contribute to an increase in a firm's borrowing from banks. Especially, the results confirm that the default rate measured at the firm level has increased during and after the global financial crisis, which implies that default risk interplays with other firm and bank-level characteristics.