Abstract: Strengthening core competitiveness is the main goal of enterprises in a fierce competitive environment. Accurate cost information is a great help for managers in dealing with operation strategies. This paper establishes a profitability management mechanism that applies the Activity-Based Benefit approach (ABBA) to solve the profitability for each customer from the market. ABBA provides financial and non-financial information for the operation, but also indicates what resources have expired in the operational process. The customer profit management model shows the level of profitability of each customer for the company. The empirical data were gathered from a case company operating in the leather industry in Taiwan. The research findings indicate that 30% of customers create little profit for the company as a result of asking for over 5% of sales discounts. Those customers ask for sales discount because of color differences of leather products. This paper provides a customer’s profitability evaluation mechanism to help enterprises to greatly improve operating effectiveness and promote operational activity efficiency and overall operation profitability.
Abstract: The purposes of this research were to develop and to
monitor the antecedent factors which directly affected the success
rate of new product development. This was a case study of the leather
industry in Bangkok, Thailand. A total of 350 leather factories were
used as a sample group. The findings revealed that the new product
development model was harmonized with the empirical data at the
acceptable level, the statistic values are: χ2=6.45, df= 7, p-value =
.48856; RMSEA = .000; RMR = .0029; AGFI = .98; GFI = 1.00. The
independent variable that directly influenced the dependent variable
at the highest level was marketing outcome which had a influence
coefficient at 0.32 and the independent variables that indirectly
influenced the dependent variables at the highest level was a clear
organization policy which had a influence coefficient at 0.17,
whereas, all independent variables can predict the model at 48
percent.
Abstract: Leather industry is the most important traditional
industry to provide the leather products in the world for thousand
years. The fierce global competitive environment and common
awareness of global carbon reduction make livestock supply quantities
falling, salt and wet blue leather material reduces and the price
skyrockets significantly. Exchange rate fluctuation led sales revenue
decreasing which due to the differences of export exchanges and
compresses the overall profitability of leather industry. This paper
applies activity-based benefit assessment approach to build up fitness
fur input mixed model, fur is Wet Blue, which concerned with four key
factors: the output rate of wet blue, unit cost of wet blue, yield rate and
grade level of Wet Blue to achieve the low cost strategy under given
unit price of leather product condition of the company. The research
findings indicate that applying this model may improve the input cost
structure, decrease numbers of leather product inventories and to raise
the competitive advantages of the enterprise in the future.