scholarly journals IS SMEs ABLE TO CONSTRUCT BUSINESS STRATEGY TO IMPROVE ITS PERFORMANCE USING ITS OWN ABILITY? (STUDY ON SMEs KARAWO HANDICRAFT IN CITY OF GORONTALO, INDONESIA)

2017 ◽  
Author(s):  
Ariawan ◽  
Made Sudarma ◽  
Djumahir ◽  
Ghozali Maskie
Keyword(s):  
Human Capital ◽  
Business Strategy ◽  
Capital Investment ◽  
Structural Equation ◽  
The Body ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Status: Preprint (belum di terbitkan pada Jurnal manapun)The objectives of this study were to analyze and investigate the human capital resource of SMEs to achieve the expected level of performance and to see if the quality of human capital had been appropriate enough to be able to apply certain business strategy. This study also intended to see if the cost leadership strategy, differentiation strategy, as well as appropriate focus strategy to improve the performance of SMEs. This study employed a survey design in which researcher conducted a survey to managers or owner of 68 SMEs of Karawo handicraft in Gorontalo city. This study also employed the structural equation or PLS approach using warpPLS application to analyze the data. The finding of this study showed that the ability of the human capital owned by the SMEs had not yet maximized in improving its performance. The role of the mediation business strategy (cost leadership strategy and differentiation strategy) have been appropriate and matched the ability of the human capital to improve the performance of SMEs. The result of this study enriches the body of knowledge related to the resource based theory and the development of strategic management of the human capital investment for the implementation of business strategy to achieve good performance and system. This study also offers practical benefit for managers or owners of SMEs, and government in developing the business. The data were collected using cross sectional strategy by analyzing the opinions and perception of the managers or owners of the business. Future researchers are encouraged to expand this by involving bigger number of sample and broader scope of study. Future researcher may also develop this study using mix method research design to verify and take action on the interesting result of this study related to the implementation of focus strategy based on the ability of the human capital which has been confirmed to have the highest coefficient path, yet did not have significant effect to the improvement of the performance without the involvement of mediational variables such as the combination of focus-cost strategy or focus-differentiation strategy.

scholarly journals Competitive Strategy Analysis from Entrepreneurship Stories

2019 ◽  
Author(s):  
Şeyma Gün Eroğlu ◽  
Ayşe İrmiş
Keyword(s):  
Production Process ◽  
Local Market ◽  
Competitive Strategies ◽  
Strategy Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Cost ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Organizations apply two basic competitive strategies in general. These are the cost leadership strategy and the differentiation strategy. The application of any of the mentioned strategies by focusing on a smaller field in the market is called a focus strategy. Companies gain value in the eyes of customer with the strategy they choose. The aim of this study is to analyze the competitive strategies applied by the enterprises and the results of these strategies. A semi-configured interview on the entrepreneurs of two firms which open to a wider market from local market in Denizli with their own brands, was conducted. The first enterprise, which has been maintaining its existence for 80 years and has many branches in the different provinces, is a firm producing sugar and sugar products (Firm A). The second, which has been maintaining its existence for 84 years and has branches in close neighbor cities and provinces, is a firm producing soft drinks (Firm B). The common feature of both firms is that they keep their local characteristics and take their competitive power from the local people. In the research, the competitive strategies of entrepreneurs have been defined and analyzed by benefiting from the entrepreneurship stories that have been brought up to the present day. It was concluded that firm A applied differentiation strategy in the product, production process, and market, while firm B differentiated in the production process without any differentiation in the product and used the focus strategy in the market.

scholarly journals The Effects of Business Strategy and Inventory on the Relationship between Sales Manipulation and Future Profitability

2019 ◽  
Vol 11 (8) ◽  
pp. 2377
Author(s):  
Hwa Deuk Yi ◽  
Sambock Park ◽  
Jonghyun Kim
Keyword(s):  
Product Differentiation ◽  
Business Strategy ◽  
Positive Impact ◽  
Corporate Sustainability ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Real Activities Manipulation ◽  
The Relationship ◽  
Cost Leadership Strategy

Many researchers have found that real activities manipulation undermines future profitability, because it deviates from normal operating activities. We are interested in sales manipulation, which is one type of real activities manipulation relating to corporate sustainability. First, we empirically examine whether the effects of sales manipulation on future profitability differ according to the strategies of a firm. Next, we divide sales manipulation as a type of real activities manipulation and optimal sales manipulation and then examine how the two types of sales manipulation affect future profitability. Finally, we examine how the effects of optimal sales manipulation on future profitability differ according to the firm’s strategies. The empirical findings show that the association between sales manipulation and future profitability is more negative (−) for a product differentiation strategy than for a cost leadership strategy. Further, the sales manipulation performed by firms with a high proportion of the starting inventory and a decrease in the inventory during the current year has a positive (+) impact on future profitability. Our results contribute to the literature on business strategy by presenting evidence that core management activities are related to future financial performance, according to the business strategy. In addition, our research shows that sales manipulation can turn into an optimal operating activity, depending on the firm’s situation.

Survival of construction SMEs in macroeconomic crises

2018 ◽  
Vol 16 (4) ◽  
pp. 654-673 ◽  
Author(s):  
Serdar Ulubeyli ◽  
Aynur Kazaz ◽  
Selim Sahin
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Competitive Strategies ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
The Difference ◽  
Focus Strategies ◽  
Cost Leadership Strategy

PurposeThis paper aims to present the effect of innovation on implementing competitive strategies (CSs) and to find their relationships on the survival of construction-related small- and medium-sized enterprises (SMEs) in macroeconomic crises.Design/methodology/approachData were compiled from construction SMEs in Turkey. The research used structural equation modeling to investigate the relationships between innovation, CSs and firm survival (FS).FindingsInnovative construction SMEs may implement differentiation and focus strategies and survive without CSs, whereas innovation may be obtained through cost leadership strategy. Also, differentiation and focus strategies may play a role to survive. However, the cost leadership strategy may be implemented after survival. Finally, differentiation strategy may be triggered by innovation and focus strategies.Research limitations/implicationsThe model may be applied on other construction organizations. Future studies may also examine the difference in findings concerning other industries and regions. Moreover, different factors may be added to the model. However, a larger group of samples could cause different results.Practical implicationsThis study may be a roadmap for practitioners to plan their firms’ strategies, considering innovation, CSs and FS. In this context, they may pay attention to innovative production processes to survive.Social implicationsSurvived SMEs may sustain their works through the prevention of crisis-based unemployment. Hence, this benefit may bring a wealthier society.Originality/valueThis research is first to propose a model connecting innovation and CSs for SMEs’ survival in macroeconomic crises. This is convenient for rivalry of SMEs planning to be long-lasting enterprises.

scholarly journals Analisis SWOT terhadap Strategi Penjualan Smartphone Xiaomi dan Vivo

2020 ◽  
Vol 3 (1) ◽  
pp. 50-63
Author(s):  
Eriana Afnan ◽  
Sam'un Jaja Raharja
Keyword(s):  
Swot Analysis ◽  
Descriptive Analysis ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Generic Strategy ◽  
Market Needs ◽  
Focus Strategy ◽  
Cost Leadership Strategy ◽  
Sales Strategies

The growth of smartphone users every year continues to grow and is a necessity for its users. Every smartphone company competes for generous consumers and competes to provide the technology and features needed by its users. This research was conducted to see a SWOT analysis of sales strategies on Xiaomi smartphones and Vivo smartphones in terms of differentiation strategy, focus strategy, cost leadership strategy. This study uses a digital use database to find articles relevant to the SWOT analysis of sales strategies on Xiaomi smartphones and Vivo smartphones. This type of research used in this research is descriptive analysis with a qualitative approach. The analysis method used is the SWOT analysis and Porter's Generic Strategy. The results showed that in total, this smartphone company had implemented the generic porter strategy well. However, the Vivo company's focus strategy is only applied so that the Vivo company can focus on marketing efforts on one or two market segments and create a marketing mix that is specific to that market so that the company can find better market needs.

scholarly journals Porter's Generic Strategies: An Exploratory Study of Their Use In Japan

1970 ◽  
Vol 24 (1) ◽  
pp. 69-90
Author(s):  
Richard Allen ◽  
Marilyn Helms ◽  
Margaret Takeda ◽  
Charles White
Keyword(s):  
Exploratory Study ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Japanese Firms ◽  
Leadership Strategy ◽  
Japanese Companies ◽  
Focus Strategy ◽  
Generic Strategies ◽  
Porter's Generic Strategies ◽  
Cost Leadership Strategy

While the use of Porter's generic strategies have been well documented inAmerica and Europe, no studies have assessed their use in Japan. This researchinvestigates if Japanese companies are indeed following Porter's genericstrategies or continuing to follow more traditional "Japanese" managementstrategies. Using a survey to operationalize Porter's generic strategies, Japanesemanagers were questioned about their firm's current strategic practices. Afactor analysis revealed Japanese firms are following only two strategies thatcould be identified as those of Porter. A cost leadership strategy was the mostfrequently used strategy, and the differentiation strategy was used the least.There was no evidence of organizations using a focus strategy. Interestingly,two additional strategies emerged that did not fit Porter's research but are inline with traditional Japanese strategies including a supply chain focus and atraining based strategy.

scholarly journals Strategic Competitiveness and Corporate Performance of Paints Manufacturing Companies Quoted in Nigerian Stock Exchange

2021 ◽  
pp. 17-26
Author(s):  
Oyakhire Victor Alaba ◽  
Ofobruku Sylvester Abomeh ◽  
Akpoyibo Gregory Akpobome
Keyword(s):  
Corporate Performance ◽  
Stock Exchange ◽  
Design Method ◽  
Manufacturing Companies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
And Performance ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Corporate organizations all over the world are continually faced with volatile business conditions, competitive market environments and rapid technological change. Most organizations focus on survive and also find better ways to improve their performance. This study examined the effects of strategic competitiveness on the performance of quoted paints manufacturing companies in Nigerian stock exchange. The research used the descriptive research design method. The study investigated the relationship between cost-leadership strategy, differentiation strategy, focus strategy and performance of companies. This research applied the theory of dynamic capability. The data was collected from one hundred and eighty-seven (187) respondents, these includes directors, management staff and senior staff of the six paint companies quoted in Nigeria. The results showed that a strategic competitiveness (cost leadership strategy, diversification strategy and focus strategy) have a significant impact on corporate performance. These findings reinforce the need for paint manufacturing companies to adopt strategic planning in capitalizing on differentiation strategy, train their staff to gain competitive advantage knowledge and ensure their competitive survival.

scholarly journals Competitive Strategies and Performance of Commercial Banks in Mombasa County, Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 65-74
Author(s):  
Joseph Mariga Nyachwaya ◽  
James Maina Rugami
Keyword(s):  
Commercial Banks ◽  
Target Population ◽  
Superior Performance ◽  
Successful Implementation ◽  
Competitive Strategies ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Focus Strategy ◽  
Cost Leadership Strategy

Commercial banks in Kenya and especially Mombasa County are facing firm rivalry demanding the use of competitive strategies so as to improve their performance. Most of the commercial banks are deliberating on ways to enhance their performance, with competitive strategies being one of them to arrive a market and afterwards make sense of and ensure its aggressive position. Therefore, this study aimed at establishing the effect of competitive strategies on the performance of commercial banks in Mombasa County. The specific objectives were to determine the effect of cost leadership strategy, differentiation strategy and focus strategy on the performance of commercial banks in Mombasa County. The study was anchored on the theory of resource-based view, strategic balancing and game theory. A descriptive research design was employed in this study. The target population of this study was 280 commercial banks staff in Mombasa County. The sample size was eighty-four after adopting a stratified random sampling technique to select 30% of the target population. The study made use of primary data collection using questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) Version 24.0 and presented using tables. The study established that despite the challenges in implementation, competitive strategies are very important for banks to remain competitive in the market. The study further concluded that understanding the market structure is a key determinant for the successful implementation of competitive strategies. Banks following a cost leadership strategy realize statistically significant superior performance compared to those that pursue broad differentiation and focus strategy which reports above-average returns. The researcher highly recommends that commercial banks consider shifting more of their focus on the cost leadership strategy in order to realize superior performance. To succeed at offering the lowest price while still achieving profitability and a high return on investment, commercial banks are recommended to operate at a lower cost than its rivals, this could be possible through some fairly unique capabilities to achieve and sustain their low-cost position. The study also recommends strategy planners to integrate and embrace the differentiation strategy which will enable them to differentiate in various methods such as new technology, brand image, design, network customer service or the number of features. Further, commercial banks are recommended to centre on the existing markets and products or services; they can create competitive edge by getting the best mix between existing products and existing markets.

scholarly journals PENGARUH BUSINESS STRATEGY DAN BUSINESS RISK TERHADAP GOING CONCERN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI TAHUN 2010-2014

2016 ◽  
Vol 3 (2) ◽  
pp. 177
Author(s):  
Sefira Yovalia ◽  
Wibowo Wibowo
Keyword(s):  
Business Strategy ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Manufacturing Companies ◽  
Business Risk ◽  
Cost Leadership ◽  
Going Concern ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Cost Leadership Strategy

<span class="fontstyle0">The purpose of this study was to determine the effect of business strategy and business risk of the company's going concern in manufacturing companies in BEI 2010-2014. Going Concern is defined as the continuity of an entities. Business Strategy is divided into two, cost leadership strategy and differentiation strategy. The research data obtained from the annual financial statements and the company on the Stock Exchange website Indonsia. The samples used were 144 companies manufacturing sector listed on the Stock Exchange in 2010-2014. The sampling technique used was purposive sampling. This study uses logistic regression analysis. The analytical tools used to test the hypothesis is SPSS 22. The results showed that the cost leadership strategy, differentiation strategy and business risk does not affect the going concern. However, cost leadership strategy,<br />differentiation strategy and business risk simultanelously can affect the going concern.</span>

The Impact of Strategic Relevance and Assurance of Sustainability Indicators on Investors' Decisions

2014 ◽  
Vol 34 (1) ◽  
pp. 131-162 ◽  
Author(s):  
Mandy M. Cheng ◽  
Wendy J. Green ◽  
John Chi Wa Ko
Keyword(s):  
Strategic Alignment ◽  
Investment Decisions ◽  
Company Strategy ◽  
Cost Leadership ◽  
Nonprofessional Investors ◽  
Differentiation Strategy ◽  
Leadership Strategy ◽  
Strategy Versus ◽  
The Impact ◽  
Cost Leadership Strategy

SUMMARY In this study, we report two 2 × 2 between-subjects experiments that investigate the effect of strategic relevance of reported sustainability information and its assurance on nonprofessional investors' investment decisions. The first experiment manipulates strategic relevance of reported environmental, social, and governance (ESG) indicators between “high” and “low” by varying the company strategy (sustainability-based differentiation strategy versus cost leadership strategy unrelated to sustainability). The second experiment manipulates the strategic alignment of the ESG indicators (holding strategy constant). We also manipulate the presence (absence) of assurance in both experiments. Results from both experiments document that investors perceive ESG indicators to be more important, and are more willing to invest in the company if ESG indicators have higher strategic relevance. Experiment one also provides evidence that assurance increases investors' willingness to invest to a greater extent when ESG indicators have high relevance to the company strategy. Our findings suggest that the assurance of ESG indicators has a beneficial signaling role in communicating the importance of this reported information to investors.

FATMOLS lodges of Zambia: reaching international travelers

2017 ◽  
Vol 7 (1) ◽  
pp. 1-18
Author(s):  
Marlene M. Reed ◽  
Steven Sikobela
Keyword(s):  
Customer Service ◽  
Low Cost ◽  
First Century ◽  
Content Type ◽  
Cost Leadership ◽  
Differentiation Strategy ◽  
Original Intention ◽  
Leadership Strategy ◽  
General Business ◽  
Cost Leadership Strategy

Study level/applicabilityUndergraduate.Case overviewThis case deals with a Zambian entrepreneur named Frank Ngambi who had developed several lodges in Ndola and Lusaka, Zambia. His original intention had been to build lodges that would provide inexpensive lodging for domestic travelers. That strategy had succeeded, and the lodges had been so successful that Frank had been able to increase the size of his lodges in both cities. However, by the summer of 2015, Frank had decided to seek the patronage of international travelers. He knew that this change in strategy would be difficult to achieve. After analyzing one of his competitors, the Intercontinental Hotel in Lusaka, he realized that he needed to increase his product offerings and also offer outstanding customer service. One problem in attaining that goal was the fact that there was very little training for human resources involved in the hospitality industry in Ndola where two of his lodges were located. Another problem he faced was figuring out how to market his lodges to international travelers, as he had never sought that segment of the market before.Expected learning outcomesAt the conclusion of the case discussion, the student should be able to apply Michael Porter’s General Business-Level Strategy to the present and anticipated strategies for the FATMOLS Lodges; to identify tactics that would apply to a low cost leadership strategy; to identify tactics that would apply to a differentiation strategy; to discuss reasons tourism has increased in Zambia in the twenty-first century; to analyze the financial strategy used in developing the FATMOLS Lodges; and to develop a plan for moving a company from a low-cost leadership strategy to one of differentiation.Supplementary materialsTeaching notes are available for educators only. Please contact your library to gain login details or [email protected] request teaching notes.Subject codeCSS 11: Strategy.

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