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Case studies on “Enhancement to current operations of SMEs in Thailand; use of target costing and supply chain management applied from Ikea”

Maiden, Kumarika and Cheevapanich, Sopin (2010)
Department of Business Administration
Abstract
The most noticeable common weakness found in Thai SMEs' operations are; (1.) weak costing system and, (2.) unhealthy management system. Fierce competition drives Thai SMEs to strike for continuous improvement. In the war of pricing, market price automatically sets ceiling price for businesses, supply surplus leads customers to choose the most quality product (expected quality at less money spent). Target costing (Bang theory) from IKEA is an exceptional model for Thai SMEs to strategically apply in pursue of price competitive edge. However, the success of target costing of IKEA owes substantial credits to its excellence in supply-chain management which resulted greatly from high negotiating power IKEA has over suppliers. In contrast to... (More)
The most noticeable common weakness found in Thai SMEs' operations are; (1.) weak costing system and, (2.) unhealthy management system. Fierce competition drives Thai SMEs to strike for continuous improvement. In the war of pricing, market price automatically sets ceiling price for businesses, supply surplus leads customers to choose the most quality product (expected quality at less money spent). Target costing (Bang theory) from IKEA is an exceptional model for Thai SMEs to strategically apply in pursue of price competitive edge. However, the success of target costing of IKEA owes substantial credits to its excellence in supply-chain management which resulted greatly from high negotiating power IKEA has over suppliers. In contrast to Thai SMEs who have less influence on suppliers, the success of supply-chain management in implementation is of difficulty. Still, being as a key player in Thai economy, SMEs are profoundly supported and promoted by the government. In attempt to improve the process of Thai SMEs, businesses and government have to take active actions. Business should focus on the weaknesses, in this study we pointed out costing system, to polish up the process. Given that SMEs are all related to each others in the big picture of the supply-chain, supply-chain management can be used to advance the whole process, however, this has to be done from a macro-level i.e. supporting from Thai government. (Less)
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author
Maiden, Kumarika and Cheevapanich, Sopin
supervisor
organization
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Management of enterprises, management tools, IKEA's management, supply-chain management, Thai SMEs, target costing, Företagsledning, management
language
Swedish
id
1626985
date added to LUP
2010-06-17 00:00:00
date last changed
2012-04-02 18:17:44
@misc{1626985,
  abstract     = {The most noticeable common weakness found in Thai SMEs' operations are; (1.) weak costing system and, (2.) unhealthy management system. Fierce competition drives Thai SMEs to strike for continuous improvement. In the war of pricing, market price automatically sets ceiling price for businesses, supply surplus leads customers to choose the most quality product (expected quality at less money spent). Target costing (Bang theory) from IKEA is an exceptional model for Thai SMEs to strategically apply in pursue of price competitive edge. However, the success of target costing of IKEA owes substantial credits to its excellence in supply-chain management which resulted greatly from high negotiating power IKEA has over suppliers. In contrast to Thai SMEs who have less influence on suppliers, the success of supply-chain management in implementation is of difficulty. Still, being as a key player in Thai economy, SMEs are profoundly supported and promoted by the government. In attempt to improve the process of Thai SMEs, businesses and government have to take active actions. Business should focus on the weaknesses, in this study we pointed out costing system, to polish up the process. Given that SMEs are all related to each others in the big picture of the supply-chain, supply-chain management can be used to advance the whole process, however, this has to be done from a macro-level i.e. supporting from Thai government.},
  author       = {Maiden, Kumarika and Cheevapanich, Sopin},
  keyword      = {Management of enterprises,management tools,IKEA's management,supply-chain management,Thai SMEs,target costing,Företagsledning,management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Case studies on “Enhancement to current operations of SMEs in Thailand; use of target costing and supply chain management applied from Ikea”},
  year         = {2010},
}