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1 – 10 of over 57000Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the…
Abstract
Gives an in depth view of the strategies pursued by the world’s leading chief executive officers in an attempt to provide guidance to new chief executives of today. Considers the marketing strategies employed, together with the organizational structures used and looks at the universal concepts that can be applied to any product. Uses anecdotal evidence to formulate a number of theories which can be used to compare your company with the best in the world. Presents initial survival strategies and then looks at ways companies can broaden their boundaries through manipulation and choice. Covers a huge variety of case studies and examples together with a substantial question and answer section.
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Tarek Ibrahim Eldomiaty, Islam Azzam, Mohamed Bahaa El Din, Wael Mostafa and Zahraa Mohamed
The main objective of this study is to examine whether firms follow the financing hierarchy as suggested by the Pecking Order Theory (POT). The External Funds Needed (EFN) model…
Abstract
The main objective of this study is to examine whether firms follow the financing hierarchy as suggested by the Pecking Order Theory (POT). The External Funds Needed (EFN) model offers a financing hierarchy that can be used for examining the POT. As far as the EFN considers growth of sales as a driver for changing capital structure, it follows that shall firms plan for a sustainable growth of sales, a sustainable financing can be reached and maintained. This study uses data about the firms listed in two indexes: Dow Jones Industrial Average (DJIA30) and NASDAQ100. The data cover quarterly periods from June 30, 1999, to March 31, 2012. The methodology includes (a) cointegration analysis in order to test for model specification and (b) causality analysis in order to show the generic and mutual associations between the components of EFN. The results conclude that (a) in the majority of the cases, firms plan for an increase in growth sales but not necessarily to approach sustainable rate; (b) in cases of observed and sustainable growth of sales, firms reduce debt financing persistently; (c) firms use equity financing to finance sustainable growth of sales in the long run only, while in the short run, firms use internal financing, that is, retained earnings as a flexible source of financing; and (d) the EFN model is quite useful for examining the hierarchy of financing. This study contributes to the related literature in terms of utilizing the properties of the EFN model in order to examine the practical aspects of the POT. These practical considerations are extended to examine the use of the POT in cases of observed and sustainable growth rates. The findings contribute to the current literature that there is a need to offer an adjustment to the financing order suggested by the POT. Equity financing is the first source of financing current and sustainable growth of sales, followed by retained earnings, and debt financing is the last resort.
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Haelim Park and Gary Richardson
Soon after beginning operations, the Federal Reserve established a nationwide network for collecting information about the economy. In 1919, the Fed began tabulating data by about…
Abstract
Soon after beginning operations, the Federal Reserve established a nationwide network for collecting information about the economy. In 1919, the Fed began tabulating data by about retail sales, which it viewed as a fundamental measure of consumption. From 1920 until 1929, the Federal Reserve published data about retail sales each month by Federal Reserve district, but ceased to do so after 1929. It continued to compile monthly data on retail sales by reserve district, but this data remained in house. We collected these in-house reports from the archives of the Board of Governors and constructed a consistent series on retail trade at the district level. The new series enhances our understanding of economic trends during the Roaring ‘20s and Great Depression.
Benjamin C. Powell, Joan M. Donohue, Xiaoya Liang and Jeremy B. Fox
This study aims to provide an exploratory analysis of a broad range of factors that may help to explain the rapid growth of Chinese private owned enterprises (POEs).
Abstract
Purpose
This study aims to provide an exploratory analysis of a broad range of factors that may help to explain the rapid growth of Chinese private owned enterprises (POEs).
Design/methodology/approach
The analysis in this study takes advantage of an archival dataset constructed by the third author from proprietary data collected for a practitioner conference in China.
Findings
Consistent with research on entrepreneurs in Western economies, the individual characteristics of the Chinese founders showed weak correlations with sales growth, but measures of founder motivation did correlate with sales growth. While the results for company characteristics were also weak, most of the factors related to company governance, strategy, competitive advantage, and stakeholder trust all showed significant correlations with the POE's rates of sales growth.
Practical implications
The motivations of Chinese founders appear to matter more than their traits in explaining their ability to grow sales. Solid structure, strategy, and competitive advantages are important also. Building trust with stakeholders may facilitate growth by helping Chinese POEs bridge the institutional voids that they face.
Originality/value
The rapid growth of the Chinese economy and of Chinese POEs offers a unique content in which to study factors that may affect growth rates. However, obtaining reliable data on Chinese POEs is difficult; this study uses a proprietary dataset to offer a rare glimpse into the factors that may affect the sales growth rates of Chinese POEs.
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Robert Kozielski, Michał Dziekoński, Jacek Pogorzelski and Grzegorz Urbanek
The term ‘strategy’ is one of the most frequently used terms in business, and its application in marketing is particularly common. Company strategy, market strategy, marketing…
Abstract
The term ‘strategy’ is one of the most frequently used terms in business, and its application in marketing is particularly common. Company strategy, market strategy, marketing strategy, sales strategy, promotion strategy, distribution strategy, low pricing strategy – it would take a long time to list all of them. Although this term is so commonly in use, its definition is not as straightforward and it can be interpreted in different ways. In comparison with tactical decisions, strategy is much more significant for an organisation as it brings long-lasting consequences. It is implemented by higher level managers on a regular basis, and it is based on external, often subjective information, so decisions – especially at the time they are made – are difficult to evaluate.
Taking into consideration the fact that strategy refers to a long-term rather than a short-term period, strategic decisions serve as the basis for undertaking operational activities. However, marketing refers to the market and the competition. It is possible to claim that marketing strategy is trying to find an answer to the question to which path an organisation should follow in order to achieve its goals and objectives. If, for example, a company has a goal to generate a profit of PLN 1 million by selling 100,000 pieces of a product, the market strategy should answer at least the following two questions:
Who will be our target group, for example, who will purchase the 100,000 pieces of the product?
Why is it us from whom a potential buyer should purchase the product?
Who will be our target group, for example, who will purchase the 100,000 pieces of the product?
Why is it us from whom a potential buyer should purchase the product?
The target market will be defined if a reply to the first question is provided. The second question identifies the foundations of competitive advantage. These two issues, that is, target market and competitive advantage are the strategic marketing issues. You cannot change your target group unexpectedly while competitive advantage is the basis for changing decisions regarding prices, promotions and sales.
This chapter describes the measures of marketing activities which refer to strategic aspects and testify a company’s market position – the measures of the performance of target groups and competitive advantage. Readers’ attention should be also focused on the indices that are less popular in Poland and, therefore, may be underestimated. It seems that some of them, for example, the index of marketing resources allocation and the marketing risk index, provide a lot of valuable information and, at the same time, make it possible to show the value of marketing investments. Their wider use in the near future is only a matter of time.
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Seeks to present a microeconomic model to analyse theoretically BSC, to develop a simplified model version and to apply it empirically.
Abstract
Purpose
Seeks to present a microeconomic model to analyse theoretically BSC, to develop a simplified model version and to apply it empirically.
Design/methodology/approach
The model assumes exponential production and demand functions with constant scale factors and elasticities. It is estimated for Nokia's time‐series 1993‐2002 and partly for 35 Compustat firms.
Findings
Direct statistical estimates act properly only as initial values iteratively adjusted for the level of the model. Model parameters show in experiments a significant effect on decision variables such as selling price. Most firms show decreasing returns to scale that are found also in a cross‐sectional analysis.
Research limitations/implications
The model assumes constant elasticities and growth which should be relaxed. Most numerical experiments are limited to Nokia's data. Estimates applied in experiments are not fully justified on statistical grounds. More effort should be made to reach a consistent set of estimates at the level of the model.
Practical implications
In growth strategy, price discounts may lead to declining profitability, while productivity is increasing. This results in peculiar causal relationships in strategic mapping of BSC. If strategy is shifted towards revenue maximization, more focus should be given to customer relationships and development and learning in BSC. Firms should in strategic planning pay special attention to rate of discount and planning horizon, because they affect selling price.
Originality/value
This research paper presents a new model specification. It gives novel empirical evidence on parameter estimation and strategic behaviour in BSC framework.
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Jewoo Kim, Jaewook Kim and Yiqi Wang
Due to increased health concerns, restaurant customers rely more on credible cues that indirectly represent health-related credence quality. To comprehensively understand the…
Abstract
Purpose
Due to increased health concerns, restaurant customers rely more on credible cues that indirectly represent health-related credence quality. To comprehensively understand the dynamics between credence cues and restaurant delivery with different infection risks, this study aims to investigate changes in cue utilization during the pandemic.
Design/methodology/approach
Data on delivery sales, brand and review rating between 2019 and the first half of 2020 were obtained from Meituan. Fixed-effects estimation was used to investigate 579,858 restaurant observations across 338 cities in China.
Findings
Health concerns significantly increased the use of restaurant delivery and the increased delivery sales remained steady even after infection risk was reduced. However, cue utilization in restaurant delivery substantially changed depending on inflection risk. In the pandemic-spreading period, the sales effect of the brand increased while that of review rating decreased. The decreased effect of review rating was recovered in the pandemic-flattening period, whereas the abnormal brand effect continued only when branded restaurants had a high rating.
Research limitations/implications
The findings demonstrate the selective and contextual nature of cue utilization in the restaurant delivery setting. These characteristics are also manifested in a health crisis from a credence cue perspective.
Practical implications
The findings demonstrate the selective and contextual nature of cue utilization in the restaurant delivery setting. These characteristics are also manifested in a health crisis from a credence cue perspective. Further, this study re-conceptualizes credence quality and cues, considering their roles in risk management. The findings help develop risk management strategies based on customers’ usage patterns of credence cues in health crises.
Originality/value
The dynamics between credence cues and restaurant delivery has not been comprehensively investigated, especially when infection risk changes. This study delivers theoretical and practical contributions about how to use credence cues in the restaurant business amid health crises.
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Edward J. Mayo and Lance P. Jarvis
Examines the issue of excessive growth in the service firm, usingthe case example of People Express, a US domestic airline. Addresses thequestion of how service firms can grow and…
Abstract
Examines the issue of excessive growth in the service firm, using the case example of People Express, a US domestic airline. Addresses the question of how service firms can grow and yet maintain financial stability. Focuses on sustainable growth a marketing planning method for determining the financial feasibility and desirability of a company′s product and market growth strategies. Concludes that an excessive growth firm must carefully examine its choices to be able to align its market opportunities with its financial resources, otherwise it faces disaster
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This multiple case study research aims to identify the characteristics of scaling up SMEs in Chile for exploring how and why some entrepreneurship in the information technology…
Abstract
Purpose
This multiple case study research aims to identify the characteristics of scaling up SMEs in Chile for exploring how and why some entrepreneurship in the information technology (IT) sector are able to scale up and develop sustainable strategies, based on three consecutive years. The average sales of the companies during the last period analysed was around US$1,323,579, with an average annual growth rate of 66.7%. Scaling up SMEs may require several attributes to achieve positive revenue and develop effective high growth rates that allow them to succeed over several years.
Design/methodology/approach
To discern the phenomenon of entrepreneurship, the methodology of multiple case study research was conducted in three parts. The first was to define and design the research process, in which the study should settle the theory analysis and then show that research propositions and questions. The second part of the research was to prepare, collect and analyse the data through crafting instruments and data collection protocols as a source of evidence to conduct the pilot and multiple case study. In this stage, interviews were scheduled, transcribed, analysed and coded to explore how individual attributes may create a scaling-up entrepreneurial process for maintaining or developing high performance in the IT sector. The last part of the research concludes and validates the research propositions for the identification for potential attributes, which were obtained during the qualitative study.
Findings
Attributes were selected when 13 or more SMEs reported the importance of this initiative for the process of scaling up their SMEs. As a result of the data analysis, the empirical findings suggest on the importance of the academic background, budgetary control, negative entrepreneurial experiences, building teams, geographical expansion and first critical experience as key attributes for scaling-up. Additionally, the data propose that constructive entrepreneurial ecosystem and reforms financing markets and programmes are two additional components that could moderate the interaction between the scaling-up process and the achievement of rapid sales results as a key outcome measure.
Research limitations/implications
The first limitation was the lack of consensus on the phenomenon of the scaling up of entrepreneurship. Information in Latin America and emerging countries is scarce, which also represents an opportunity for other researchers to deepen and validate the results reported here. Even though it was an attempt to understand the issue of environmental change, this additional limitation did not allow the evaluation of these adjustments over time that can positively or negatively drive the strategies corresponding to the evolution in each of the moderator variables.
Practical implications
Because of the characteristics of the sample in terms of size of the SMEs, industrial sector, location, culture, socio-economic environment and years of establishment of the company, the study cannot be generalised in terms of other industrial sectors or countries. The results of this research are also limited to SMEs in Chile, and to the extent that it can be applied to emerging countries IT sectors with similar sample characteristics, it must be done so with caution. Yin states that eight cases “are sufficient replications to convince the reader of a general phenomenon”.
Social implications
Policymakers have the option to identify what skills and knowledge the entrepreneur requires to be trained to scale up their established ventures. In this context, they will also benefit from the empirical contribution of knowing what the restrictions that limit this process are, such as adverse tax systems and public strategies. Additionally, it is of public interest because no national records exist on the presence of theoretical terms.
Originality/value
Even though the literature promotes the present findings, it shows that there is an absence of empirical evidence in emerging economies to better comprehend which factors may affect the development process of scaling up entrepreneurship in the IT sector. Both deliberate and emergent strategic initiatives are necessary for the scaling-up process where six critical factors are the basis of the scaling-up. This empirical contribution for entrepreneurs will support the achievement of rapid and sustained sales results for scaling up their ventures.
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- Scaling up entrepreneurship
- High-growth firm (HGF)
- Academic background
- Budgetary control
- Building teams
- Geographical expansion
- Negative entrepreneurial experience
- First entrepreneurial experience
- Constructive entrepreneurial ecosystem
- Reforms financing markets and programmes
- Rapid sales results
- High-performance business outcomes (HPBO)
- Deliberate and emergent strategies