Tag Archives: Value added

Strategies to Increase the Value Added of Wood Trading in Indonesia (Published)

Background and Objective: This research is conducted in order to see which forest products especially wood products have the best value added in wood trading in Indonesia by using sales margin and profit margin formula. Wood products in this research are log, sawn timber, plywood, particle board and furniture that made from mixed tropical hardwood, meranti and luxury classes of timber. Methodology: Price information, marketing agency and production cost of wood products in international and domestic market collected by interview with wood products companies, APHI and BPS are then the information that can be used as data process using actor identification, sales margin analysis, and profit margin analysis. Results: In the mixed tropical hardwood class to be exported mostly processed into plywood with the profit of Rp1,644,500/ m³ log. Meranti is exported in the form of sawn timber with the profit margin of Rp 2,070,250/ m³ log. Furniture is the best-processed product for luxury classes of timber with the profit margin of Rp 9,129,120/ m³ log in the international market, and it has the highest profit margin / m³ log from all of the products made from tropical hardwood in this research. Conclusion: Based on the research, the most appropriate strategy to improve the added value of wood trading in Indonesia is through selling the mixed forest hardwood class in the form of plywood, meranti wood class, in the form of sawn timber and luxury wood class in the form of furniture because they have the highest sales margin and profit margin. The government should consider giving export permit for meranti wood class processed into sawn timber because after observing the analysis, it has the highest market and profit margin than meranti wood class processed into other products.

Keywords: Value added, profit margin, sales margin, wood, wood trading

Innovative Marketing and Performance of Selected SMES in Delta State Nigeria (Published)

This paper evaluates the extent Small and Medium Scale Enterprises (SMEs) in Delta State Nigeria adopt and practice marketing orientation and the extent innovative marketing has affected their performances. It hypothesizes that the adoption of high level of marketing orientation practice and creation of value added offerings among SMEs; and the development of marketing competencies among SMEs would improve their performances. Using a sample of 213 SMEs drawn from a population of 496 registered SMEs as contained in the 2013 Delta State Business Directory, the study used a survey to collect data from randomly selected respondents from the area under study. Pearson Correlation Coefficient and Chi-square Test of Association were used to analyze the collected data. Results show that there was a weak positive correlation between marketing orientation and value creation; and an association between marketing strategic competencies and performance of SMEs in Delta State. The poor results indicate low adoption and practice of marketing orientation and very shallow knowledge of innovative marketing among SMEs in the State. It was therefore recommended that an investment on the project of training the SME operators on the purpose and processes of marketing orientation will be of immense benefit to the SMEs as it will help them to improve on their performances as well as contribute to national development.

Keywords: Innovative Marketing, Value added, leverage performance, strategic competencies

MOROCCAN CANNED SARDINES VALUE CHAIN-GOVERNANCE AND VALUE ADDED DISTRIBUTION (Published)

Morocco is the world’s leading producer and exporter of canned sardines. However, this product value chain encounters multiple challenges. This study explores how such a chain could create and capture a larger value added share within the European market. Surveys using questionnaires and open interviews have been carried out including a sample of relevant actors in the chain. The results show that the value chain is substantially driven by European retailers who create 68% of the total value added; while Moroccan canning industry remains relatively less wealth-building and captures less income. The improvement strategy should foster better vertical cooperation among actors, a common commercial policy and an innovative diversification of the Moroccan offer.

Keywords: Canned sardines, Governance, Income, Morocco, Value Chain, Value added