Sasin Journal of Management: Volume 13, Number 2, 2007

 

Sasin Journal of Management: Volume 13, Number 1, 2007

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Pattarake Sarajoti & Pattanaporn Kitsabunnarat
Basic Concept of Investment Planning in the Financial Planning Process

There has been a growing demand for financial planners worldwide, in part due to the challenges facing individuals in managing their personal finances. This article illustrates the role of financial planners in creating investment plans. It outlines the general procedure for investment planning and points out the benefits of using a financial planner. It also gives a brief introduction to the designation Certified Financial Planner.

na_sjmWantanee Surapaitoolkorn
Quantitative Financial Risk Management (QFRM) and the Simulations of BASEL II

This study of Quantitative Financial Risk Management (QFRM) aims to measure the quantity of financial risks used in the banking sectors and major financial institutes. This paper updates and summarizes the quantitative techniques used in Financial Risk Management (QFRM) and the implementation of the regulations related to the market risk, the credit risk and the operational risk that are important to the global banking sectors including the ASIAN banks in 2007. The financial organization that supports the risk frameworks for global banks is known as the “Bank for International Settlements” (BIS). The current international rules and regulations for the requirement of capital are known as the “BASEL II Accord”.

na_sjmAdith Cheosakul
Codetermination: A Novelty of Corporate Governance in Thailand

Realizing that corporate governance structures vary significantly throughout the whole world, both academes and non-academes have recently expressed their concern for the effects of corporate governance on transparency issues and organizational sustainability. Within the realm of corporate governance in Thailand, it is irrefutable that the roles of low-ranking employees, important stakeholders in any organization, and their prerogatives are apparently undermined.

The concept of codetermination which is extensively implemented in Europe and to a lesser extent in the United States recognizes the indispensable roles of low-ranking employees. This paper intends to minimally raise the awareness level of codetermination and its merits as evidenced in Europe and the United States among stakeholders of both private and public sectors in Thailand and maximally campaign for voluntarily applying the concept of codetermination in organizations in Thailand. Although this paper does not attempt to explore the possibility of legally enforcing codetermination in Thailand, it should certainly trigger an array of future research possibilities. In particular, the willingness of top management in Thailand to include low-ranking employees on the boards of directors and also the readiness of low-ranking employees to perform a board role need to be further investigated. Without voluntary implementation, a scrutiny of various Thai labor laws can help the Thai government determine the likelihood of effective incorporation of codetermination into the laws, provided that its virtue deserves the government’s attention.

na_sjmTanasak Krabuanrat
CEOs Take Part in Changing Our Organizations for the Better

CEOs are searching for new competitive differentiators, even if it means confronting a sacrosanct business model. With technological advances and globalization presenting so many new opportunities and threats, CEOs are giving business model innovation as prominent a place on their agendas as products/services/markets innovation and operational innovation. In many cases, CEOs face common issues with their current operations, like high-cost, slow-responding, inefficient and antiquated. CEOs clearly believe that it is their responsibility to foster innovation yet the major obstacles to innovation are internal rather than external. The study makes recommendations about how CEOs can orchestrate greater innovative achievements and build a more innovative organization.

na_sjmSathit Parniangtong
Meeting a Variety of Customer Needs with Designs for Postponement

Today it is imperative that companies meet increasingly diverse customer needs at the lowest possible cost. But this has become increasingly difficult to do without sacrificing one for the other and ending up stuck in the middle. The problem is that mass produced standardized goods cost less, while customized products are more expensive. To be successful in tomorrow’s marketplace, management must find ways to combine the best of both strategies to mass customize their products. Companies such as Benetton, Dell, Hewlett-Packard and others use a powerful design concept known as “designs for postponement” to address this challenge. This concept calls for reconfiguring product and process designs to counteract the complexity and uncertainty that paralyzes supply chains. When implemented properly, this powerful concept has led to dramatic value creation for companies. Mass customization allows them to penetrate new markets and increase market share for current customer segments. It also improves customer satisfaction (willingness to pay) by offering more personal and accessible products at significantly lower costs.

 na_sjmSarote Phornprapha
Significant Factors on Employee Retention: Evidence from Thailand

This article examines two major factors which significantly affect employee turnover in Thailand, namely Job Satisfaction and Organizational Image. The discussion investigates their relationships with “organizational commitment” and confirms that in order to create strong commitment among Thai personnel, the company must ensure that staff are highly motivated with few complaints which may cause them to leave. Indeed, to better retain staff, the company must ensure that the factors related to job satisfaction are obtainable (e.g. pleasant work environment, good compensation packages, promotion opportunities, and quality of supervision). However, while quality of leadership (leadership behaviors exhibited by the leaders which affect the organizational commitment of employees) is considered one of the key success factors of business performance, happier teams usually delivered lower performances than less happy ones. Finally, Thai cultural values also seem to influence employees’ perception of the organizational image. The management should therefore focus on promoting a strong organizational image, not only externally but also internally, since this would reinforce the company's position as an attractive employer, and reinforce the feeling of pride in being a company employee. The more satisfied employees are with both factors (job satisfaction and organizational image), the less likely they are to leave.

na_sjmChaipong Pongpanich
Improving the Supply Chain Supporting the Export of Fresh Fruits in Thailand

The Royal Thai Government is striving to improve Thailand’s economic competitiveness in key export sectors by addressing the critical logistics efficiency gaps in many segments of the economy. In line with this national priority, this study examines the logistics of the agricultural sector, focusing specifically on inefficiencies that may affect the international competitiveness of several key fruits produced for export. The Thai fruit industry has high potential in export markets because growers produce numerous varieties of unique and great-tasting fruits. However, the industry has not achieved strong overseas market penetration, leaving much room for improvement and room to capture the potential value.

na_sjmIan Fenwick
Marketing in the 21st Century: DigiMarketing

Conventional consumer marketing is being raked by a perfect storm. Most of what is now done under the name of marketing—most of what is now taught under the name of marketing—is changing beyond recognition. While the impact of this storm is most immediate and most visible for consumer packaged goods marketing, the ramifications of these changes will ultimately extend to all forms of marketing.

na_sjmPavitra Jindahra
Mental Accounting and Marketing Implications

This article reviews an alternative model of consumer behavior called mental accounting (Thaler 1980). Mental accounting is a hybrid model of cognitive psychology and microeconomics. It offers an explanation of observed consumer behaviors which traditional economic theory fails to explain. In particular, mental accounting is the consumer’s decision mechanism that lies behind his revealed choices. The theory has three basic components: 1) the mental coding of combinations of gains and losses using the prospect theory value function, 2) the purchase evaluation based upon the concept of “transaction utility”, and 3) the household budgeting process. The marketing implications of mental accounting are then discussed.

na_sjmKritika Kongsompong
Multicultural Marvel: When West meets East

As globalization progresses, the barriers to trade and to international exchange constantly diminish. Cultural differences however remain the single most enduring feature that has to be taken more seriously. This paper illustrates the concept of culture that influences the behavior of people in that particular culture as well as analyzing the applications of Western marketing-related theories in Asian contexts. Interpersonal relationships among consumers in Asia will be reconsidered, thus re-evaluated on the generalization of Western derived theories. Suggestions and marketing implications are given for marketing executives who wish to do business outside their comfort zone of familiar territories.

na_sjmKrittinee Nuttavuthisit
Postmodern Consumption and Marketing

Postmodernism is a major movement that highlights fragmentation rather than unification, juxtaposition rather than progressive advancement, and freedom rather than commitment. The notion of postmodernism has influenced several fields such as behavioral science, political science, art and architecture. This article illustrates contemporary consumption and the way in which marketing has emerged in the postmodern era. The adapted marketing strategies (e.g. product proliferation, price paradox, place participation, and promotion partnership) are proposed together with an afterthought about the post-postmodern economy.