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Published by Firdaus, 2019-12-05 11:02:31


Issued November- December 2019




WHY “In the face

INFOMATION of technology,
MANAGEMENT Everything becomes

IS THE Atavistic” -Don Delilo













UiTM Samarahan 1

Faculty of Business Administration
BA242 4B

IMR 652
Management of Business Records

Group Project:



Prepared For

Mohsinin binti Mohsin

Submission Date

6th Disember 2019

Financial Management


and Farm Profitability

Written by:

Brent A. Gloy and Eddy L. LaDue

Financial Management Practices

and Farm Profitability

1 NOVEMBER 2003 VOL. 63 NO. 2

Agriculture Finance Review Journal

Financial management In addition to the lack
topics are given con- of information about The lack of knowledge
siderable emphasis in farmers’ adoption of regarding these two
nearly every farm man- many basic financial basic issues is some-
agement course and management practices, what surprising given
text. little is known regard- the amount of time
ing the relationship and effort spent teach-
Among the most com-
mon topics are finan- between adoption of ing, researching, and
cial control systems, these practices and extending concepts
budgeting, investment farm profitability. related to agricultural
analysis, and securing While many studies finance.
credit. have examined the
linkage between tech-
Although these topics
are treated as basic nology adoption and
management skills, profitability, few stud-
relatively little is ies have assessed the
known about the fi- empirical relationship
nancial management between the adoption
practices actually used of financial manage-
by farmers. ment practices and
farm profitability.

Primary Goals

First, we seek to deter- The findings should
mine the extent to Second, we propose to help identify practices
which farmers have examine the relation- that have been widely
adopted various finan- ship between the adopted, practices that
cial management prac- adoption of these have not been widely
tices. adopted, and practices
practices and financial
While this is a relative- performance. that have a large im-
ly simple question, Both questions are pact on profitability.
such an assessment is obviously important to These results can then
critical in order to un- farm management and be used to
derstand how widely finance researchers prioritize educational
the concepts and prin- and educators. Results offerings and research
ciples taught in the associated with the agendas.
classroom and exten- second objective are
sion have been adopt- also of potential inter-
est to farm managers.

Page 2 VOL. 63 NO. 2

Financial Management

A variety of definitions ture”.
have been offered to char- Brealey and Myers summa-
acterize financial manage- rize the corporate financial
manager’s responsibilities
Barry, Ellinger, Baker, and by noting, “the overall task
Hopkin describe financial of the financial manager
management as “the acqui- can be broken down into
sition and use of financial the investment or capital
resources and protection of budgeting decision, and the
equity capital from various financing decision.
sources of risk”.
In other words, the firm
Lee, Boehlje, Nelson, and has to decide what real as-
Murray define agricultural sets to buy and how to
finance as the “economic raise the necessary cash”.
study of the acquisition and
use of capital in agricul-

These definitions empha- study. These supporting responsi-
size the importance of ac- The financial manager also bilities include activities
quiring and investing re- performs a variety of tasks such as maintaining finan-
sources. cial records, implementing
which both ensure the effi- control systems, and ana-
Certainly, capital acquisi- cient operation of the busi-
tion and investment are ness and support capital lyzing whole-farm profita-
critical financial manage- acquisition and investment bility.
ment responsibilities, and activities.
both are examined in this

Business Analysis/Control

One of the most important For example, a financial
responsibilities of the farm budget forms the basis for
manager is to monitor and cash flow projections and
ensure the profitability, loan requests.
liquidity, and solvency of The use and impact of
the business.
business analysis and con-
These activities are crucial trol practices has not been
for the short-term opera- widely studied.
tion of the business.
In their review of farm examining the relationship between the use of business
Business analysis and con- management studies from analysis/control practices and farm profitability
trol functions also support 1980 to approximately
capital acquisition and in- 1993, Fox, Bergen, and
vestment analysis decisions. Dickson identify no studies



You might want to check your time.
It is important to get a goodnight’s sleep.

If it is not between 10pm and 7am, you may continue

Page 3 VOL. 63 NO. 2

Capital Acquisition

with standard loan agree- propriate capital structure
ments. for the business, and ac-
quire necessary capital
In addition to debt funds,
farm managers can also use
lease agreements to control

Capital acquisition refers to With this in mind, we focus
the process of raising debt on responsibilities related
and equity funds. to acquiring debt capital
and leasing.
In agriculture, and particu-
larly for most farms, the Generally, the financial
options for raising equity manager must identify
funds are limited and debt lenders, evaluate the cost
funds are typically obtained of credit, determine an ap-

Survey Instrument

The survey instrument asked farmers to OFFER
respond to a variety of questions regarding
business analysis/control, investment
analysis/decision making, and capital
acquisition practices.
Of the 352 questionnaires mailed, 149
were returned. Twelve of the respondents
returned blank questionnaires or indicated


Page 4 VOL. 63 NO. 2

Investment Analysis/Decision making

Much of the attention in an ed with three possible in- ability to make loan pay-
upper-division agricultural vestments: ments), and a discounted
finance class is often de- a major facility expansion cash flow technique such
voted to analysis of capital of more than 25%, an as net present value or in-
investments. ternal rate of return
equipment replacement,
Capital assets, such as facil- and an increase in herd size It was expected that more
ities or equipment, require of 10%. types of analyses and more
large initial expenditures They were then asked to sophisticated techniques
and generate cash flows for identify the investment would be used for the facil-
a considerable period of analysis techniques they ity expansion, which repre-
time. sented the largest invest-
used to evaluate each type
There are many methods of investment. ment.
the farm manager might The sample investment .
use to evaluate such an analysis techniques listed
were the payback period,
Respondents were present- projected cash flow (or

Financial Management Practices and Profitability

Next, we examine the link- for the financial manage- caution.
age between the adoption ment variables are difficult
of financial management to obtain.
practices and profitability.
The rate of return on assets
This linkage is likely quite was modeled as a function
complicated. of the adoption of several
financial management vari-
While efforts were made to
select variables that are less ables and a set of control
likely to be endogenous variables.
with profitability, the po- Because the model suffers
tential for an endogenous from potential endogenous
relationship is quite high, regresses, the results
and reasonable instruments should be interpreted with


The results for the capital acquisition and business analysis areas are somewhat less

definitive. Given that there appear to be such strong relationships between

investment analysis and profitability, it seems likely there are positive returns to

the other financial management areas as well. However, with respect to acquiring

capital, it must be recognized that producers are constrained by their

financial resources and creditworthiness. In addition, competitive markets may

result in similar net rates for individual businesses.


Information technology and

marketing performance within

international market-entry


Written by:

Shasha Zhao

Department of International Management and Innovation, Business School,

Middlesex University, London, UK, and

Constantinos-Vasilios Priporas

Department of Marketing, Branding and Tourism,

Business School, Middlesex University, London, UK



9 June 2016 IT and Marketing Performance Journal Vol. 34 No. 1

Information technology (IT)-mediated international market-entry
During the past two dec- contrast between the
ades, the international amount of capital in-
business sphere has wit- volved and the high rate
nessed dramatically in- of failure.
creasing growth in cross-
border collaborations in
the forms of strategic alli- In spite of the risks in- Marketing Performance
volved, cross-border col-
ances, joint ventures, and laboration continues to
merger and acquisitions grow in popularity. tion of cross-border alli-
ances. Specifically, it is
noted that IT has contrib-

Marketing practices and A major cause of this uted to the establishment
performance in this con- trend is globalisation. and improvement of inter-
text have received grow- Increasing international national market-entry alli-
ances through enhancing
ing recognition as a key competition requires communication,
measure of overall effec- firms to seek multiple information exchange,
tiveness of the collabora- channels for market and knowledge transfer
growth as heavy reliance
tion on domestic markets between partner firms
Positive marketing perfor- could no longer be sus-
mance in the host location tainable
is considered crucial for
foreign investor firms due Limited IT research has
to the widely recognised focussed on the facilita-

Overview of IT in international market-entry alliance and marketing
performance literature

IT and collaborative entry strategy fields over a Being part of international
modes are two areas of number of decades. trade and doing business
research which rarely in- beyond borders, interna-
tersect. International collaborative tional joint ventures and
entry modes are tradition-
Specifically, our review ally known as forms of alliances are not the only
shows that topics relating business whereby a for- means of penetrating
to international collabora- eign firm intends to pene- global markets; however
tive market entry modes trate a host market by these methods of collabo-
have been extensively partnering with its indige- rative market entry are
studied by scholars from nous companies often preferred over fran-
international business and chising, contracting, or

licensing, etc.



9 June 2016 IT and Marketing Performance Vol. 34 No. 1

In terms of marketing firms on their performance, yet a significant impact on
consideration, Fang and literature on the operationali- the host market per-
Zou (2009) stress the zation and conceptualization of formance and compet-
importance of marketing marketing related dynamic itive advantage of in-
dynamic capabilities in capabilities in the context of ternational joint ven-
international joint ven- international alliances has been tures.
tures. They claimed that rather limited.
the empirical literature Their data from top managers
on strategy has docu- in China indicates that market-
mented the impact of ing dynamic capabilities have
dynamic capabilities of

An integrated conceptual framework of IT on marketing performance in

international market-entry alliances

Jean et al. (2008) made an Clearly, ambiguities and between foreign and local
important assertion about confusion in IT value re- partner firms, specific inter-
how IT contributes to firm search and theoretical appli- firm relational aspects can
performance. cations remain. We agree be enhanced. Also, we argue
with Jean et al. (2008) that that these relational aspects
Although it focused on sup- conceptualization of IT re- are important inter-firm gov-
ply chain relationship, their sources and capabilities are ernance mechanisms which
study explicated and recon- still inconclusive, leading to IT can facilitate
firmed IT business value in development of different
an international firm con- terminologies. Therefore, it enables the
text. Specifically, discussion building of a more efficient
of applicability of TCE and Furthermore, knowledge inter-firm relationship and
RBV to IT value research gaps remain on how IT re- therefore improved market-
was provided showing a sources and capabilities in- ing performance. Further, IT
transition of IS research teract with organizational -enabled governance can
from transaction cost con- processes to create value and help to counteract associated
cerned to resource-based enhance performance. investment risks and contex-
value creation. tual limitations which are
This is particularly empha- potentially negative.
In particular, their argument sized by the long unsolved
about the inappropriate out- IT productivity paradox
comes about IT and value problem.
creation in previous research
echoes our thoughts and Developed using RBV and
direction in this paper. Re- complemented by TCE, our
search exploring this area is proposed conceptual frame-
not only limited but ambigu- work (Figure 1) suggests
ous in conceptualizing dif- that when inter-firm IT ca-
ferent IT resource attributes pabilities, which are dynam-
to firm performance. ic and critical, are present



9 June 2016 IT and Marketing Performance Vol. 34 No. 1

Additionally, we adapt the
contingency theory perspec-
tive (Donaldson, 2001; Luo
and Bu, 2016) to argue that
IT and inter-firm perfor-
mance are likely to be mod-
erated by process-based
factors. Figure 1: An integrated
conceptual framework

Contribution and implications for future research

Echoing a recent study by diverse views and provid- are not an effort of any
Jean et al. (2008) on IT- ed an integrated perspec- one firm but the outcome
mediated international tive of RBV and TCE into of effective alliance be-
supply chain relation-
ships, our paper has pro-
vided a holistic research RESEARCH QUESTION:
framework and a number Whether and how inter-firm
of propositions.
IT affects international

marketing performance in the
Specifically, we provide a
more complete and de- way of improving
tailed conceptualization
of the impact of IT on collaborative relationships?
inter-firm governance
mechanisms in the specif-
ic context of cross-border the framework. We be- tween partner firms.
market-entry alliances. lieve this view underpins Any one set of IT re-
our answer to the follow-
Our paper therefore con- ing sources, e.g. IT systems,
tributes to the internation- related human resources,
al marketing, international research question. or IT integration,
business and strategy, and Several conclusions can alone could not create
IS literature.
be drawn from our con- maximum value.
ceptualization. First, inter
-firm IT capabilities
Specifically, we reviewed



9 June 2016 IT and Marketing Performance Vol. 34 No. 1

Instead, appropriate alignment is an important managerial consideration
among the three and therefore successful implementation
brings IT capabilities, which are of IT is particularly necessary and critical
dynamic and idiosyncratic to the for foreign
specific alliance. partner firms.

Second, IT capabilities do not Lastly, the establishment of inter-firm IT
necessarily have a direct effect capabilities is further emphasised as they
on international marketing per- help firms to counteract associated risks
formance; instead, it is most and contextual limitations.
effective in enhancing the inter-
firm relationship which subse- Subsequently, our proposed framework
quently leads to positive perfor- and propositions developed in this paper
mance. open up several avenues for
future empirical research.
Third, the marketing perfor-
mance implications of IT in the
context of cross-border alliances


Consequently, a number ences in terms of IT val- However, it would shed
of research directions can ue. light on the “IT produc-
be pursued to enhance tivity paradox”.
current knowledge and The availability of IT ca-
understanding of IT value pability, governance, and Future research can also
in international market- marketing performance take the direction of ex-
entry alliances. measures, as discussed in ploring the view of host
our paper, enable re- market partner firms and
One of them is empirical searchers to empirically comparing it against for-
testing of the propositions test against each form of eign partners to not only
and the related framework collaboration. identify the value of the
in future studies. IT from a new perspec-
A third possibility is to tive, but also to reveal any
Another direction may be conduct longitudinal potential gaps or conflicts
to specifically examine study of the effects of IT between foreign and local
other types of internation- in the processes of inter- partners so to further en-
al collaborations, such as national alliances, though hance performance.
joint venture, mergers, the procedure involved is
and acquisition to identify likely to be cumbersome.
any potentially differ-


References (Shasha Zhao, 2016)

Shasha Zhao, C.-V. P. (2016). Information technology and marketing performance
within international market-entry alliances. IT and marketing performance,

Personnel Management:

A Framework for


Written by:

John Henstridge

VOL. 4 NO. 1
Personnel Management:

A Framework for Analysis
1 JANUARY 1975

Personnel Review Journal

Personnel Management

The paper suggests that Personnel Management The other main approach
traditional descriptive and also in texts on par- is the attempt to treat the
approaches to Personnel ticular techniques. Some Personnel Management
Management do not suc- writers approach Person- function as a system
cessfully answer the nel Management from a within the work organi-
question 'what is Person- particular perspective, zation, with all the im-
Special points of interest: nel Management?', nor such as the historical or plications of a logically
 Personnel Management do they explain the way contextual. One can, constructed, interrelated
in which it actually ex- however, identify two set of procedures of a
 Emergence of Personnel ists in work organiza- main approaches to Per- permanent or semi-
management tions. sonnel Management. permanent nature.

 Element in emergence of A framework for analy- The one, adopted by The implication of most
of the literature is that
most writers since Mox-
sis is proposed, looking
personnel management at work organizations on in 1943, is a 'listing' there is only one kind of
from the perspective of approach; that is lists are Personnel Management,
 Function of personnel the Personnel Manager; made of practices com- and that it is of general
it is suggested that this application.
management framework may help to
answer some of these
questions, provide a
means of exploring the
phenomenon of Person-
nel Management and
also of studying it as a
subject and a meeting
point of disciplines.
monly found in Person-
Exhaustive descriptions nel Management and
of the procedures and generally accepted, and
techniques employed by these are distilled and
practising Personnel offered as a consensus
Managers; these appear view and definition of
both in general books on Personnel Management.

The Emergence of Personnel Management

The emergence and pressures for change, eg recent years, a consider-
growth of Personnel from Trade Unions, in- able increase in govern-
Management as a spe- terest groups, govern- ment legislation in the
cialist function in work ments etc; the develop- employment field.
organizations can be at- ment and application of
tributed to a variety of the social sciences, al-
factors —the growth in lied to the fact that peo-
size and sophistication ple rather than machin-
of work organizations; ery have become the
changing values in soci- most valuable asset of
ety and most work organizations
the related demands and and, in

Page 2

Personnel Review

It is worth noting, in increasing production promoted from the shop
passing, that the emer- with the use of more and floor, or
gence of more clerks, were employed
Personnel Management machinery may require a as labour officers or em-
in the USA is remarka- mechanic to service the ployment
bly similar to machines, officers (the title varies
that in Great Britain leaving the operatives considerably) to look
[7].The sheer number of free merely to operate after records,

employees in the grow- them. This is wages, etc. They were
ing firm during in fact an apt parallel, also involved in
the early years of this for the Victorian entre- 'screening' new
century led to the need preneur employees and, increas-
for owners regarded his labour ingly, in solving and
and managers to appoint largely in economic and settling industrial
someone who could take mechanical disputes[9]'.
care of terms merely as a 'factor
wages, records, employ- of production', a
ment etc in much the 'breathing
same way as machine'[8]. So men

“Human resources
Isn’t a thing we do. Element in emergence of personnel management
It’s the thing that The first element in the of the Institute of Per-
emergence of Personnel
sonnel Management's
Runs our business” Management is a devo- graduate examinations.
lution of the owner's or This aspect of growth is
- Steve Wynn- manager's responsibility undoubtedly one
and need to recruit and of the factors which ac-
pay the workers to do count for the other, and
the tasks of the organiza- is an interesting phe-
tion. The reason for this nomenon in itself.
devolution is to do with
the size of the work or- The normal approaches
ganization, and not with to the study of Personnel
management's values. Management
fail to provide explana-
tions, and in order to
Understand the role of
The second aspect is a Personnel Management,
marked growth in pro- we need to undertake an
fessionalism and analysis of the function,
professionalization — and the way it fits into
best exemplified by the the work organization.
raising of the standards

VOL. 4 NO. 1 Page 3

The Function of Personnel Management

In the simplest possible in order to fulfil man- divided into, jobs.
terms the people in a agement's
work objectives. The function of Person-
organization may be re- nel Management is to
garded as one of the This function, which recruit suitable people to
economist's 'factors of derives from the devolu- do these jobs, and to see
production' (along with tion of aspects of man- that
capital, land, etc). agement, can be de- they are paid and de-
scribed by a simple ployed to the best ad-
Taking this simplistic model (Figure 1). vantage.
view, one might say that
the function of Personnel Management defines
Management is to ensure what tasks the organiza-
that the human 'factor of tion is to undertake.
production' is available
in the right quantity, at These tasks are then
the right place and time, grouped together, or



Figure 1

If Personnel Manage- Personnel Management undertaking).
ment were limited to the looks like; in this
scope represented in Fig- case it is more likely to There is also in large
ure 2, then it would be a be referred to as bureaucracies, by their
comparatively simple 'Personnel very nature, a strong in-
and mechanical matter, Administration' or simp- clination towards clear
depending upon the op- ly 'Administration' (it cut rules and procedures
eration of should be remembered - hence the traditional
straightforward proce- that in industry, as com- 'Establishments' function
dures. pared with the Public of the Figure 2 type in
Services, administration the Public Services.
In some work organiza- is often regarded as a
tions, this is in fact what very inferior

Page 4

However, there is no ed, dropped, made more ation
doubt that it is almost
of policy and in the day
-ATUL GAWANDE- impossible to operate a 'We tried this, but it did- to day work in which he
purely mechanical sys- n't work . . . ' ; 'we had to engages.
tem of Personnel Man- think of something to
agement in work organi- deal with t h a t . . . ' ;
zations. When we turn to 'we do it this way here
the actual experience of because ...';
Personnel Managers, we 'we had trouble with the
find a whole range of unions, so . . . ' . A
reasons why procedures multiplicity of factors
and policies have been affects the Personnel
initiated, altered, adjust- Manager both in the cre-

Neither the 'listing' ap- approach to the prob- headquarters personnel
proach — the given, lems of his particular management.
comprehensive, patch; even the
package — nor the 'outstation' Personnel
'systems' approach ex- Officer who administers
plains his experience in an imposed central per-

the real life situation. sonnel policy finds him-
Every Personnel Manag- adapting procedures,
er finds himself 'forced', smoothing the way with
'pressured' into develop- pitying remarks about
ing a unique, contingent the ivory tower nature of

VOL. 4 NO. 1 Page 5

Factors affect Personnel Management

The factors which affect The analysis of this organization, why
the Personnel Manager 'complex web' is funda- personnel policies are
so fundamentally in poli- mental to an explanation sometimes disastrous.
cy and practice consist of the function and pur-
of a complex web of in- pose of Personnel Man- It will also help us to
fluences and pressures agement. Such an analy- study
on the sis will enable us to Personnel Management
behaviour and relation- study as a subject and a meet-
ships Personnel Management ing point of various dis-
of individuals and as a phenomenon — to ciplines, (eg Industrial
groups of people. These answer the 'why' ques- Sociology, Occupational
influences and pressures tions; why Personnel Psychology).
affect the functioning of Management has grown,
work organizations in why it undertakes the
many ways and at all functions it does, why
levels. the personnel
set-up is unique in each

“Unleash the potential that
Countless social scientists have studied aspects of the
complex web of factors influencing behaviour in work organizations, usually from is in another and you
a particular perspective eg human relations, organization theory. Few, if any, have unleash the potential that is
made such a study from the perspective of the Personnel Manager, indeed Person-
nel Management tends to be one of in you”
the 'Baddies' in the case study scene.
-Matshona Dhliwayo-


The role of the Person- ganizational psychology.
nel Manager is seen as Integration into the or-
being contingent upon ganization could be It becomes apparent that
the state of the factors in achieved through view- the perceptions of the
our framework. ing Personnel factors in the framework
The requirement for at- Management as an ex- by the Personnel Manag-
tention to the factors in tension of the skills of er play an important part
varying depths and time- groups and individuals. in determining Personnel
scales gives rise to some Management policies
internal differentiation This view implies a con- and procedures.
of function, which in siderable range and
turn requires powerful depth of skills, not al-
integration of the ways apparent in Person-
Personnel Management nel Managers, who have
group. tended to give primary
This becomes important attention to surface
because of the synthesiz- factors, which is charac-
ing aspect of the role in terized in the prescrip-
relation to the conflicts tive but
implicit in the frame- inadequate approach of
work. human relations and or-


Personnel Review Journal


Hybrid production system:

perspectives in supply


risk management

Written by:


Aparecido Wolfshorndl, Mauro Vivaldi

ni, João Batista de Camargo Junior

Vol. 26 No. 3 15 July 2019
Hybrid production system:

perspectives in supply chain risk



I N T E R E S T : P r o d u c t i o n
 Production The management of sup- operational ones, with the and stock formation, that
 Risk manage- plier companies as part of former being is, make-to-order (MTO)
ment in SC the same customer’s related to circumstances and make-to-stock2016),
business, such as natural calami- a key point in the plan-
 Risk affecting SC coordinated and aligned ties, terrorist attacks and ning of hybrid
 Hybrid produc- to make products more production systems is to
tion systems competitive, to improve define what should be
(MTS–MTO) the service met for stock and what is
provided and to increase intended for the
 Advantages & the customer’s loyalty, is orders. These same au-
Disadvantages a consolidated concept as thors state that this type
competition of planning is a challenge
no longer occurs only because the
between competing com- decisions being made
panies, but between sup- regarding MTO and MTS
ply chains (SC). labor strikes and the lat- systems are different.
On the other hand, the ter caused by high uncer- Furthermore, these
magnitude generated by tainty and lack of coordi- decisions may affect sup-
such management makes nation between supply pliers, customers and oth-
operations and demand er supplier chain mem-
more vulnerable to the The possibility of opera- bers.
external environment, tional risks can be mani-
thus exposing the organi- fested in the so-called
zation to a greater hybrid production
number of risks systems, in which pro-
The SC risk can be cate- duction is focused to
gorized as rupture and meet confirmed orders

R i s k m a n a g e m e n t i n s u p p l y
c h a i n

Uncertain environments frequent introduction of dependence, supplier
lead to a high risk in SC, new items and low stand- concentration, global
and the more complex ardization of products supply, focus on cost and
the chain, the and services are the main lack of coordination
higher the risk. Constant drivers of SC complexity. among partners.
changes in product sup- The argument is that the
ply and manufacturing SC’s susceptibility to risk
requirements, is increased by supplier

P a g e 2 H y b r i d p r o d u c t i o n

The production process used to respond to un- foreseen events.
management involves predictable events af-
the organization’s abil- fecting the SC. Another
ity to perform and important aspect direct-

coordinate various tasks ly linked to these activi-
related to operational ties is the chain’s ability
activities (e.g. logistics to withstand turbulence,
and operation interruptions and
planning) linked directly
to the organizational
knowledge (the so-
called skills routines)

R i s k a f f e c t i n g s u p p l y c h a i n
“To catch the Rezapour et al. (2018) and risk of variations respectively, are corre-

reader's broaden this discussion in the performance of an lated. Within this con-
on resilience by stating text,
attention, place that SC performance installation, which re-
an interesting is affected by two types duces the efficiency of organizational robust-
ness and resilience are
the supply network flow
sentence or quote of risk: risk of disrup- aimed to meet the de- aimed to mitigate disrup-
tions, which distort and tions at a strategic level,
from the story mands. But the mitiga-
affect the supply tions of strategic and whereas reliability is
here.” network by inactivating operational risks to neu- aimed to mitigate the

certain production facili- tralize the impacts of variations at an opera-
ties or transport routes, ruptures and variations, tional level.

I n s i d e S t o r y H e a d l i n e

Selecting pictures or Avoid selecting images eral tools you can use to
graphics is an important that appear to be out of draw shapes and sym-
part of adding content to context. bols.
your newsletter. Microsoft Publisher in- Once you have chosen
Think about your article cludes thousands of clip an image, place it close
and ask yourself if the art images from which to the article. Be sure to
picture supports or en- you can choose and im- place the caption of the
hances the message port into your newslet- image near the image.
you’re trying to convey. ter. There are also sev-

V o l . 2 6 N o . 3 P a g e 3

Reflecting the previously men- ysis, treatment and Monitoring
tioned concepts, SCRM can be
understood as being the
identification and management
of SC risks through a coordinat-
ed action among chain
members to reduce vulnerabil-
ity. Several risk management
structures were proposed by
using different terminologies.
However, there is a consensus
that SCRM involves five
sequential stages, namely: risk
identification, evaluation, anal-

“Productivity is

Sreedevi and Saranga manage the risk of disrup- in the industry. In the never an accident.
(2017) point out that timely tion. They also report the manufacturing process, one It is always the
mitigation of the adverse importance of of the most important com-
effects of result of a
combining supply resources ponents of SC flexibility is
uncertainty is crucial for an with a company’s operating the company’s ability to commitment to
effective SC operation. For environment in order to control production re- excellence,
these authors, companies keep up sources and to manage un- intelligent
with the changing business certainty in order planning, and
consider investing in the SC requirements. In this con- to meet the customer’s
agility and responsiveness text, they include chain needs. focused effort”
in order to quickly respond flexibility as -Paul J. Meyer
one of the main levers to
market fluctuations and reduce such risks, especially

H y b r i d p r o d u c t i o n
s y s t e m s ( M T S – M T O )
Several strategies have sponds to the
been proposed to solve junction between MTS
the problems that perme- and MTO systems
ate hybrid systems,
such as focused, spack-
ling and layered-
spackling strategies
The hybrid system is
classified as a productive
system, which corre-

P a g e 4 H y b r i d p r o d u c t i o n

A d v a n t a g e s & d i s a d v a n t a g e s

F o r t h e p r o d u c e r

the MTS system’s main this system there is no
advantage is the greater certainty about the actu-
potential for al demand in terms of

standardization and ra- mix and
tionalization of produc- volume, including high-
tion programs and pro- er costs to maintain raw
duction material and finished
product stocks,
processes, with a further
reduction of costs and which demands much
production cycles. How- more working capital.
ever, in

F o r t h e c u s t o m e r
“To catch the the MTS system’s ad- to adapt to the standard-

reader's vantage is linked to the ized product.
availability of
attention, place
delivery, lower price and
an interesting standardization of the

sentence or quote product. It should be
noted that this
from the story
latter advantage can also
here.” be interpreted as a disad-

vantage since the cus-
tomer needs

I n t h e M T O s y s t e m
The producer is assured However, in this system to reduce production costs
about the demand and the producer faces and cycles. The MTO sys-
will produce tem’s main advantage is
difficulties to standard-
based on incoming or- ize and rationalize pro- the possibility of personal-
ders, thus leading to a grams and production, izing the product being
greater rationalization of thus increasing requested, which brings
working capital the costs of the products disadvantages such as
longer waiting time and
through advance pay- in the process inventory higher prices.
ments of products. and making it difficult

V o l . 2 6 N o . 3 P a g e 5

T h e a u t o m a k e r

The focus company for this study with an estimated annual produc- sales portal to generate a sales
is a vehicle automaker which tion of 160,000 vehicles for the order. If there is no stock available,
adopts a hybrid Brazilian market and
a product order is entered in the
MTS–MTO production system for some countries of South America. production planning and sequenced
production planning. This form of All sales made from dealers and for production. This order has pro-
production is duction priority regarding vehicles
final consumers are informed to
supported by an APS system de- the automaker so that destined to fulfill the stock, which
veloped by the company’s own IT these data can be used for the de- is based on the demand planning.
area. The company is The same is true for
mand planning. When a dealer
located in the State of São Paulo does not have a given model confirmed export orders.
and has a network of local and of vehicle in its stock, then a re-
international suppliers,
quest is sent to the company’s

“when you
S u m m a r y
It should be brought to the care taken by the au- However, the present know better
attention that the use of thors, there was a study provides insights You do
case study method is one risk of possible biases or for future research on this
of the limitations of trends. Moreover, alt- theme. For instance, the better”
our work. The other limi- hough the data obtained study might be expanded
tation is related to the are reasonable for to other companies that -Mara
data obtained as they statistical analysis as they adopt or even may adopt Angelow
were restricted to a single provide correlations ac- a hybrid production sys-
tem. This would provide
area of the company and cording to the method a more complete picture
to a small group. Despite adopted, they are limited. and better point out the

trends by means of fur- organization as a whole
ther analysis. Studies or even functional
might also explore func- areas on a restrictive ba-
tional risks arising from sis should be conducted,
the management itself, or as in the present case
risks restricted to SCRM, study. Finally, the way
including their relevance.
The how organizations strive
to control risks unneces-
suggestion is that open sarily might also be stud-
studies investigating the ied.





1st Articles [Financial]
Brent A. Gloy, E. L. (2003). Financial management practices and farm profitability. Agricultural Fi-
nance Review, 157-174.






2nd Articles [Marketing]

Shasha Zhao, C.-V. P. (2016). Information technology and marketing performance within internation-
al market-entry alliances. IT and marketing performance, 5-28.

3rd Articles [Personnel]
Henstridge, J. (1975). Personnel Management: A Framework for Analysis. Personnel Re-
view, 47-53.



4th Articles [Production]

Diego Aparecido Wolfshorndl, M. V. (2019). Hybrid production system: perspectives in
supply chain risk management. Hybrid Production System, 313-334.
Organization quotations-by-operational-excellence-consulting

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