Small and medium manufacturing companies are losing their competitiveness in severe domestic market as well as in global market because they don’t have an effective SCM system and their own global brand in order to possess competitiveness in global ...
Small and medium manufacturing companies are losing their competitiveness in severe domestic market as well as in global market because they don’t have an effective SCM system and their own global brand in order to possess competitiveness in global market.
There are limitation for small and medium manufacturing companies to survived in competition with companies in new developing countries by performing as subcontract and OEM partner.
Therefore, it is necessary that a study on developing SCM and global brad strategy to improve the corporate performance of small and medium manufacturing companies.
In this study, I figured out current situation and characteristics of Korean small and medium manufacturing companies by literature review and then, proposed SCM and global brand strategy for small and medium manufacturing companies through a case and empirical study.
Survey result expressed that small and medium manufacturing companies have difficulty because of high purchasing cost, obsolete equipment and lack of professional manpower in manufacturing stage, and weak competitive price, limitation of market expansion, and lack of new product in sales stage.
In case study, key success factors were retrieved through the analysis of Young An Hat Company which is korean small and medium manufacturing company and has outstanding performance in global business.
The case study represented that Young An Hat Company achieved continuous performance by vertical integration and global market expansion with an effective SCM and its own global brand.
The managerial implications of case study are that head office should control whole process of production and quality management from raw material to finished product.
An empirical test was conducted to figure out the relationships among the factors of SCM, global brand and corporate performance which were derived through literature review and case study.
The result of empirical test expressed that human resource factor and SCM investment factor have positive effects on global brand establishment and brand development competency factor, brand maintenance competency factor, and global competency factor have also positive effects on corporate performance.
In addition, the establishment of global brand contribute to improve the financial and non-financial performance of small and medium manufacturing companies by obtaining additional profit as well as sales profit
Based on the results of case study and empirical analysis, SCM and global brand strategies for small and medium manufacturing companies was proposed.
Specifically, SCM strategies such as vertical integration of manufacturing and sales stages and SCM integration strategy, and global brand strategies such as global brand development competency improvement strategy, global brand competency improvement and global brand strategies by stages were also proposed.
In conclusion, small and medium manufacturing companies should develop aggressive strategy establishing global brand and integrating their global manufacturing and sales in order to improve their performance.
The result of this study would be helpful in developing corporate performance improvement strategy for small and medium manufacturing companies.