The aim of the study was to present a suggestion for the methodical decomposition rate of return on equity (ROE). The developed ROE decomposition model includes nine factors: the rate of value added, ...the rate of depreciation costs, salaries expense ratio, the ratio of other operating income and expenses, the rate of fi nancial income and expenses, the rate of extraordinary events, the rate of tax, the assets rotation and capital gearing. In addition, based on deterministic methods, the study presents the analysis of changes in the level of return on equity on the example of the domestic furniture manufacturing sector in the period 2009-2013.
Indonesia is one of the largest teak timber producers in the world. The Javanese State Forest Company has been a major producer of teak timber in Indonesia; however, log production decreased ...drastically due to severe illegal logging after the collapse of Suharto regime. In contrast, small-scale private forests (PFs) owned by local farmers have expanded and are expected to be a new source of teak timber. Long rotation is a critical factor in producing a larger diameter log with a higher heartwood proportion. However, harvest timing in PFs is traditionally decided based on individual farmers’ needs even if trees are still young and of small diameter. Therefore, traditional harvesting is an obstacle to producing high-quality teak timber. The objectives of this study are to (1) identify the household economies and PF management styles of local farmers, (2) characterize the local farmers who conduct traditional harvesting, and (3) suggest key considerations for PF policymaking. Key informant interviews and semi-structured interviews with local farmers were conducted in three villages in Gunungkidul district, Yogyakarta Special Region. The study identified the household economies, the ownership and management structures, and the traditional harvesting in PFs in the three villages, and reaffirmed diversity and complexity of PFs. It appears that PF management is influenced by topographic and socioeconomic conditions and differs widely across villages. Therefore, it is important to consider the diversity and complexity of PFs in PF policymaking.
The concept of risk is central to strategy research and practice. Yet, the expected positive association between risk and return, familiar from financial markets, is elusive. Measuring risk as the ...variance of a series of accounting-based returns, Bowman obtained the puzzling result of a negative association between risk and mean return. This finding, known as the Bowman paradox, has spawned a remarkable number of publications, and various explanations have been suggested. The present study contributes to this literature by showing that skewness of individual firm' return distributions has a considerable spurious effect on the empirically estimated mean-variance relationship. I devise a method to disentangle true and spurious effects, illustrate it using simulations, and apply it to empirical data. It turns out that the size of the spurious effect is such that, on average, it explains the larger part of the observed negative relationship. My results might thus help to reconcile mean-variance approaches to risk-return analysis with other, ex-ante, approaches. In concluding, I show that the analysis of skewness is linked to all three streams of literature devoted to explaining the Bowman paradox.
In 1930, a housing exhibition called ‘Woba’ took place in the city of Basel. Unique for Switzerland, the commercial aspect of the furniture industry was complemented by a newly constructed ...residential colony. In accordance with discussions held one year before at the II CIAM congress in Frankfurt a. M., the Wohnung für das Existenzminimum was brought to life. Thirteen architectural offices experimented with different spatial designs in order to develop cheap and hygienic housing for the working class. For one month, some of the houses were open to the public. In the Swiss press, a vivid and controversial debate arose. On one side, its supporters advocated for standardized and rationalized housing as an appropriate way of living for modern individuals. On the other side, conservative forces saw a communist scheme at work in this housing in the style of Neues Bauen. By analyzing contemporary press articles on the Woba, this paper shows that the question of society’s future was being negotiated through architecture and furniture.
The purpose of this study was to analyze whether there is a difference in the degree of sectoral innovation between the baking and furniture industries in Pernambuco State--Brazil, measured between ...2011 and 2013. The innovation radar is a method of generalized analysis of companies in different economic sectors. The degree of sectoral innovation (DSI) methodology was used as an alternative to the traditional methodology in order to mitigate the effects of sectoral differences. DSI normalizes the traditional method based on 13 dimensions of innovation, taking into account aspects of sectoral heterogeneity. The study revealed there had been progress in the furniture industry but much less so in the baking industry. The study also indicated that the baking industry in Garanhuns has a slightly greater degree of innovation than the one in the Metropolitan Area of Recife.
We study the supply chain tactical planning problem of an integrated furniture company located in the Province of Québec, Canada. The paper presents a mathematical model for tactical planning of a ...subset of the supply chain. The decisions concern procurement, inventory, outsourcing and demand allocation policies. The goal is to define manufacturing and logistics policies that will allow the furniture company to have a competitive level of service at minimum cost. We consider planning horizon of 1 year and the time periods are based on weeks. We assume that customer’s demand is known and dynamic over the planning horizon. Supply chain planning is formulated as a large mixed integer programming model. We developed a heuristic using a time decomposition approach in order to obtain good solutions within reasonable time limit for large size problems. Computational results of the heuristic are reported. We also present the quantitative and qualitative results of the application of the mathematical model to a real industrial case.
Klooster D. and Mercado-Celis A. Sustainable production networks: capturing value for labour and nature in a furniture production network in Oaxaca, Mexico, Regional Studies. Global networks of ...production often challenge local development, forcing local producers to minimize returns to labour and externalize environmental costs in order to compete. This article describes an alternative approach in which communities, firms and promoters create a niche for environmentally certified wood furniture in national markets, using social and environmental upgrading to capture value for workers, communities and the environment. It calls their approach a sustainable production network (SPN) and proposes it as a contribution to development policies informed by global production network (GPN) theory, and as a goal for planners seeking institutional strategies to sustainable development in production networks.
Illegal logging is a significant problem in Indonesia, which is one of the few countries with a large forest area. In this study, we investigate the factors that affect harvesting and supply of ...illegal timber from Indonesia to China and Japan. Moreover, we investigate the factors that lead to the demand of Indonesian illegal timber from China and Japan. A simultaneous-equation econometric model of illegally logged timber demand and supply is developed and tested using the annual data over the period 1996-2010. We find that corruption and decentralization in Indonesia have significant and positive impacts on the illegally logged timber supply while excess demand in Japanese construction and furniture industries as well as Japan's housing starts are the significant factors that affect the illegal logging in Indonesia. The law enforcement or policies aimed at reducing illegal harvesting in Indonesia are found to be more effective than the policies targeting the import of illegally logged timber into Japan and China.
Purpose
The purpose of this paper is to describe a corporate effort to implement a sustainable business model.
Design/methodology/approach
A Norwegian producer of office chairs, selling products ...across Europe, is examined in this study. Information has been collected from semi‐structured interviews with top‐level management, as well as available internal and external documentation.
Findings
The company's efforts towards a more sustainable business model can broadly be divided into factors within the company and factors outside the company. The case study demonstrates how the carbon footprint on the Earth can be reduced by focusing and influencing factors outside the company's own production facilities.
Research limitations/implications
In a highly competitive market, the case study demonstrates that focusing on the corporate impact of the natural environment can be highly profitable.
Practical implications
The process towards sustainable business operations must be anchored and supported by the top‐level management and owners of the company, and it has to be a long‐term commitment.
Originality/value
The principal contribution from the presented case study is how a more sustainable business model can be achieved even when the majority major part of the carbon footprint on the Earth is generated outside the company's production facilities. The case study illustrates how already known technologies are used to create a sustainable and profitable business.
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