Improving Sales Performance: A Case Study In A Korean Based Adhesive Company
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Date
2014
Authors
Low, Chie Chong
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
This case study is to explore the business issues that concerns Best Chemical’s sales performance in Malaysia. The analysis methods are complex because they are not merely focused on the corporate strategy level, but also involve Korea’s culture and preferred business style. Established in 2007, Best Chemical Co., Ltd. is a Korean based adhesive company servicing semiconductor and electronics industry. In 2009, they appointed Advance Resources Sdn. Bhd. as their distributor. Their global business portrayed limited achievement for the past four years. In fact, their distributor was not able to achieve the target of 72 sales cases and the sales closing rate was also far below 20% of the closing rate target set by Best Chemical.
PESTLE Analysis was used to screen through external environmental factors. The Fishbone Diagram and 5-Why Analysis tools was used to get in-depth to the root cause, followed by SWOT and TOWS Analysis for strategy formulation. The analysis results show that Best Chemical lacks of a suitable product range for the E&E sector in Malaysia. In additions, customers do not recognize Best Chemical's brand name.
Recommendations from this case study include short and long term strategies such as I) Trading of third party adhesives; II) To increase product portfolio; III) To expedite R&D on new products, IV) Collaboration with institutions for product development, ect. On the other hand, Best Chemical relies on their distributors to provide them reliable market information for the management’s decision making.
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Keywords
Improving sales performance , Korean based adhesive company