Critical Success Factor Of Tyre And Battery Services: The Case Of Pekan Darat Tyre Battery Services Sdn Bhd, Malaysia
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Date
2015
Authors
Abd Manap, Nursafura
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Abstract
Financial and non-financial performance are the important factors for business sustainability. Pekan Darat Tyre Battery Services (PDTBS) encounters increasing trend of losses from 14% profit (2010), and then losses to 0.87% (2011), 1.12% (2012), and 1.17% (2013). The objectives of this paper is to identify the major factors that lead to deterioration of the financial performance of Pekan Darat Tyre Battery Services (PDTBS) and the factors that effect on the non-financial performance. The outcome of this study is to propose effective practical solutions within the constraints of PDTBS that can overcome the problems identified. SWOT Analysis is discussed and Ishikawa Diagram is adapted into Symptoms Versus Problems (SVP) Framework that explained the step-by-step causes leading to this problem. The increase in the cost of sales, increase in operating cost, and increase in staff cost were the major factors that contributed to the deterioration of the financial performance. Managing customers & building relationships (CRM) (OPERATION), Credit Management (MANAGEMENT), Inventory management & control (MATERIAL & OPERATION), Employee Recruitment (ERM) & career growth (MANPOWER) and Leadership training (METHOD) & building self-directed teams (MANPOWER) were the critical success factors of financial and non-financial performance found in this study. The recommendations are to address corporate governance (managing customer needs & finance and managing inventory & employees) and the leadership category focuses on building leaders. This study also discovers another framework on critical success factors for practitioners through the development of “House of Pillars for Tyre and Battery Industry” in Malaysia.
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Keywords
Financial and non-financial performance , Business sustainability.