Target Company Research Articles

Proposed Strategies for Improving Productivity in the Wagon Painting Process Considering the Worker's Health Level

Productivity can be expressed as the quantitative relationship between the output generated and the input utilized. The evidence of high worker productivity signifies the workforce's capacity to meet the company's production targets effectively and efficiently. As one of the inputs in the production process, the workers must have proper physical, mental, and social health conditions to carry out their work activities well. A developing train manufacturing company in East Java has several stages of the production process, one of which is the painting process. Chemicals are supposed to be a potential hazard in the painting process, which can harm workers' health, primarily if the work is carried out over a long time. Health issues resulting from exposure to spray paint and the failure to meet production targets indicate the need for in-depth investigation. Therefore, this research aims to determine the effect of health on worker productivity and design strategies for improving worker's productivity. The methods employed are the Work Limitation Questionnaire (WLQ) and Time and Motion Study. The findings indicate that there is a partial relationship between time management and productivity. It is critical to put out recommendations aimed at minimizing the duration of paint exposure experienced by workers. The proposed strategies demonstrate the capability to decrease the standard time required for the flat-top wagon painting process by 1.11 hours (41.11%). This improvement is achieved by reducing the number of work motions from 20 to 14, and finally, productivity is improved by 3.6.

The Relationship between Corporate Environmental Performance and Suppliers’ Credit Lending

Green supply chain management has gained traction in contemporary times against many environmental catastrophes and scandals involving prominent companies. Despite the strides made by lawmakers to address such challenges, an increasing number of corporations overlook environmental issues such as global warming, ecological concerns, reverse logistics, and global energy. Notwithstanding the contributions in prior studies, to the best of researchers’ knowledge, no study has sought to link corporate environmental performance with suppliers’ credit lending practices. Yet policymakers seek to develop regulations that incorporate the understanding of the collaboration among the supply chain members. Thus, we seek to establish the short-run and long-run dynamics between corporate environmental performance and suppliers’ credit lending. Targeting companies listed in the FTSE/JSE RII, we draw a sample of 21 companies using a judgemental sampling technique. Furthermore, archival data were collected to compute a short panel data set. The panel data set for statistical analysis comprised 21 cross-sections over six years, totalling 126 observations. The study adopted the first differenced econometric models in data analyses, namely Panel Vector Error Correction Model (VECM) and, subsequently, Panel Least Squares (PLS), Wald Test, and Impulse Response Functions (IRF). Findings indicated a statistically significant positive relationship exists in the long run between corporate environmental performance and suppliers’ credit lending. Conversely, the same endogenous variables produced a statistically significant negative relationship in the short run. The study contributes new insights to supply chain management literature and renders novel policy implications for lawmakers.

Value Creation after Chinese Firms Acquire Financially Distressed Overseas Firms: Viva’s Acquisition of Clarks Group

Purpose - In recent years, overseas mergers and acquisitions have become a crucial means for many enterprises to enter foreign markets, achieve diversification of corporate brands, expand business scope, increase transaction amounts, and rapidly scale corporate operations. This study aims to investigate value creation by acquirers and potential influencing factors to determine whether companies facing financial difficulties through overseas mergers can generate effective value.
 Design/Methodology/Approach - This study examines post-acquisition value creation by companies through literature review and analysis of financial data from the last three years. It adopts a case study approach, focusing on Viva Goods Company Limited’s acquisition of Clarks in the UK under LionRock. The goal is to explore value creation and influencing factors in this specific context.
 Findings - The study reveals that the issues of target companies in financial distress are concentrated on working capital, while historical advantages and market value do not decline synchronously. Therefore, when facing distressed target companies, the acquiring party can not only revitalize the target company through capital injection to quickly restore operational status, expand market share, and form new competitive strength but also help its own company achieve short-term and long-term stock price increases, thereby gaining profits.
 Research Implications - This study explores factors in value creation, assessing target companies pre-merger, and analyzing post-merger integration for value growth. It focuses on risks and value in financially distressed target companies, aiding enterprises in acquiring distressed overseas firms, serving as a market research case for multinational corporate mergers.

Performance of M&A Deals in The Russian Market: Evidence from Oil & Gas and Power Industries

The paper provides a comprehensive investigation of M&A deals on the Russian market, particularly in the Oil and Gas and Power sectors. This research fills the gap in literature by scrutinizing key M&A trends, reviewing M&A activities, and evaluating M&A performance through a combined application of Data Envelopment Analysis (DEA) and case studyanalysis. A critical part of this study involves exploring the influence of geopolitical factors on these transactions. The article presents a novel academic contribution by offering focused insights on M&A activities in two under-researched yet critical sectors of the Russian economy. Furthermore, the innovative use of DEA and case study analysis enhances ourunderstanding of industry trends over a span of 22 years, including the M&A transactions of 2022. Our sample includes 23 deals made by 17 Russian companies in the Energy and Power industries. We selected deals as a result of which the acquirer companies obtained more than 50% of the target company, so the acquirer company gained control over the operationsand performance of the acquired company. The study traces the effects of geopolitical influences on M&A outcomes, a critical consideration given Russia’s unique geopolitical context. This research is of practical significance for domestic and international businesses contemplating M&A decisions within Russia’s Oil & Gas and Power industries, offering valuableinsights to guide future strategies. While this study uncovers promising positive trends, further exploration and long-term data are necessary for a complete assessment of the impact of these M&A activities on company performance.

Application of machine learning methods to analyze customer migration risk in terms of corporate financial security

Effective prediction of customer migration is only possible through knowledge of the customer life cycle, which is characterized by the length of the relationship between buyer and provider, i.e. customer retention. A concept of opposite importance is customer migration, defined as the partial or total abandonment of the products or services offered by a company. Its knowledge and ability to predict it is crucial in terms of ensuring the continued financial security of target companies. The primary objective of this article was to present a method for assessing the risk of telecom industry customer migration using machine learning methods. The objective was achieved through the use of research methods, theoretical deductions such as and induction, system analysis and synthesis, and mathematical modelling, which additionally allowed for a practical analysis of the migration of customers of the telecommunications industry. Predictors with the greatest impact on the phenomenon under study were selected. It should be noted that the gain chart indicates that, in the case of contacting the 20% of customers selected by the models, the target coverage would be at the following levels, respectively: 70% for the boosted tree model and the decision tree based on the CART algorithm, and 75% for the random forest model. The research niche addressed in the article is the development of methods for assessing migration risk using machine learning techniques. The tool developed in the article can support decision-making in the creation of marketing campaigns aimed at retaining the largest number of customers.

A phenomenological study: The role of management accounting information in the business decision-making process on successful female Balinese entrepreneurs

The research was conducted to explore more deeply the role of management accounting information that is understood in the process of making business decisions by Balinese Women Successful Entrepreneurs and the extent of their understanding which will be the conclusion of this research. The research approach applied to the research is a qualitative approach that is specific to phenomenological studies. The research informants/subjects are Balinese Women Entrepreneurs who have run their businesses before and after the COVID 19 pandemic, with different business characters and specifications and have proven their success. The similarity that emerges from each informant is that there are two themes, namely the decision-making process that goes through several stages to achieve the best final decision and full accounting information, namely to maintain the going concern of the business, always reflecting on past information as a reference and future information to achieve the company's global targets or goals. The results of the manuscript interview data in the textural description of the five informants stated that they understood the importance of the role of management accounting information in the process of making business decisions, structurally each informant expressed his understanding in the implementation of the use of different management accounting information both financial and non-financial in nature. Referring to the title and subject of the study, applying one grand theory, namely decision making theory and feminism theory as a supporting theory. However, for future researchers, the opportunity to develop the grand theory used is still large, for example Masculine Theoretical Decision Making and Feminism Theoretical Decision Making so that the research results are more specific and quality.

Dividen, Struktur Kepemilikan dan Tindakan Perataan Laba

Investors' desire towards the company's profit target encourages management to take income smoothing actions making an appearance that profits are stable, but in fact, profits are not as high as stated. Income smoothing can be affected by a number of variables, including dividend payout amounts and the ownership structure of a company. In order to examine the impact of dividend payments and ownership structure on income smoothing activities in non-financial companies, this study was carried out. The sample in this study comprised of 53 non-financial companies chosen using purposive sampling from the population of non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2021. The level of dividend payment had an impact on the income smoothing, according to the results of the logistic regression analysis that was used to test the hypothesis. The more dividends the company pays out, the more likely management will employ earnings smoothing. Companies typically flatten earnings to meet the amounts of dividends to be given to shareholders so that companies can continue to pay dividends to investors. This study informs shareholders on the company's practices for adjusting earnings to accommodate for dividend payments, enabling them to make more prudent portfolio decisions going forward. Keywords: Income smoothing, dividend, ownership structure.

Application of Failure Mode and Effect Analysis (FMEA) for Defect Reduction: A Case Study on Scratch Defects in Oil Separator Parts in Machining Line

This study addresses the problem of significant defect rates on Oil Separator Parts in machining line, especially focusing on scratch defects. The defect rate reached 0.495%, exceeding the company's target of 0.1%. In the approach using FMEA, potential failure modes were identified and rated based on Risk Priority Number to plan corrective actions. Effort and Impact Analysis was used to analyze the most effective action recommendations. Implementation of the 5S methodology was selected as the improvement solution, which focused on workplace organization, maintenance, and cleanliness. The results were positive, with the number of defects decreasing dramatically from 540 to 67 units in July 2023, and the defect rate dropping from 0.495% to 0.145%. Although the company's quality targets have not been fully achieved, the FMEA approach and 5S implementation have been shown to significantly improve production quality and reduce defects. This study proves that this approach has the potential to address complex quality issues, although further challenges may be required to achieve the final goals set.

Analysis of Blasting Geometry on Blasting Production Results at PT Semen Bosowa Maros

Limestone mining for cement plants uses a blasting method to break the material. Blasting production is considered successful when it can achieve production targets based on tonnage of uncovered rock, efficient use of explosives, grain size or rock fragmentation, and environmental impact. This research aims to analyze the blasting geometry on the production results at the research location by knowing the initial design, the actual blasting geometry, and the geometry recommendation using the C.J. Konya method. In addition, researchers also know the explosives used, the production results in the form of material fractionation using the Kuz-Ram method, and the tonnage of uncovered rocks. The initial design with a burden of 3.4 m, spacing of 3.4 m, hole depth of 5.9 m, and ANFO explosives per hole of 33 kg produced 147.31 tonnages. The actual geometry with a burden of 1.7 m, spacing of 3.5 m, hole depth of 6.0 m, and ANFO explosives per hole of 26.73 kg produced a 77.11 tonnage. The actual geometry resulted in a blasting production of 6,941 tonnes per day, which did not meet the company's production target of 10,639. The fragmentation calculation results obtained an average size in the field of 15.29 cm, which meets the required screening or sieve criteria of 0.80 - 1.00 m. The size of the fragments also follows the sieve calculation using the Kuz-Ram method, with a 100 cm sieve passing only 0.01 %. Based on this, the company is recommended to make geometry changes to achieve the production tonnage target that has been set.

Kajian Produktivitas Alat Gali-Muat dan Alat Angkut pada Pengupasan Overburden di PIT TSBC, Tambang Air Laya, PT. Bukit Asam, Tbk.

Production targets are the parameters for whether a mining company is successful or not in carrying out its activities to achieve profits every year, without forgetting occupational safety and health, which are two important factors in the movement of a mining industry. There are so many other factors such as weather factors, human factors, equipment factors and even the roads used by transport equipment that transports overburden materials and coal. By knowing the inhibiting factors and supporting factors to increase productivity and overcome obstacles that occur in the field so that the company's production targets can be achieved and exceed the expected targets. In order for the process of extracting overburden material to be maximized, it is necessary to calculate the required number of loading and conveying equipment, as well as the effective time used in mining activities. Based on this information, the author took the title regarding a study of the productivity of the Komatsu PC 2000 Excavator digging and loading equipment and the Komatsu HD 785-7 Dump Truck transport equipment in overburden stripping at the TSBC Pit, Tambang Air laya, PT. Bukit Asam.

Post-Acquisition Changes in Agency Cost of Acquirers: Effect of Target Companies

Acquisitions constitute substantial corporate investments, often leading to changes in ownership and top management giving rise to possible conflicts of interest. The impacts of such conflicts following an acquisition are absorbed by the acquirer and are referred to as agency costs. This study focuses on exploring the influence of the target companies on changes in the post-acquisition agency costs of acquiring companies. A panel fixed effects model is used to analyze acquisitions that took place between 2008–09 and 2019–20. The study’s findings indicate that post-acquisition changes in the agency costs of acquirers significantly vary based on the presence of domestic and foreign promoters in the target company. Further promoter groups such as domestic promoters and foreign promoters contribute to conflicting interests, exacerbating post-acquisition agency costs. The monitoring role assumed by foreign promoters of target companies plays a pivotal part in reducing the post-acquisition agency costs of acquirers. Foreign promoters also positively influence post-acquisition profitability by adversely affecting operating expenses, suggesting that they mitigate agency costs by exerting control over management through the monitoring of debt, cash, and profitability. The post-acquisition utilization of the target’s cash reserves positively correlates with the operating expenses of the acquirer. It is observed that the acquisition of larger targets magnifies agency costs.

Analisis Produktivitas Alat Angkut dan Muat Pada Pengupasan Overburden di PT. XYZ Desa Batuah, Kutai Kartanegara, Kalimantan Timur

PT. XYZ is a company engaged in coal mining contractors located in East Kalimantan. During mining activities, PT. XYZ uses an open-pit mining system. In February 2023 PT. XYZ had a production target overburden of 193,700 bcm, but in reality, the production target only reached 119,529 bcm.. The productivity of the conveyance and loading equipment is by field conditions to be compared with the company's production achievement targets. The research method used is a quantitative method where this research takes data directly and interviews in the field. The results of the calculation analysis, the production of means of conveyance dumptruckIVECO 350 reached 27.17 Bcm/hour, dump truck ISUZU GIGA FV285 reached 22.16 Bcm/hour, andarticulated dump truck VOLVO A40G achieved 54.57 Bcm/hr. Production of the Sanny SY330H excavator truck reached 178.63 Bcm/hour and the XCMG X370CA excavator reached 154.09 Bcm/hour. The amount of production of the actual means of conveyance that was achieved was 193,700 Bcm/hour. The parameters that affect the amount of production of a tool both hauling and loading, namely circulation time, tub or bucket capacity, amount of filling, fill factor, and material expansion factor. However, based on field observations by the author, there are several additional factors such as the type of weather factor and the condition of the mine road or ramp. In addition to the weather factor, road conditions that are far from the existing standard size will affect the amount of production of a tool.
 Keywords: coal, Overburden, Production, productivity

QUALITY CONTROL IN SUGAR AGROINDUSTRY USING FAILURE MODE AND EFFECT ANALYSIS (FMEA) METHOD IN BONDOWOSO REGENCY

The sugar agroindustry in Bondowoso, particularly PG Pradjekan, is a part of the business unit of PTPN XI that focuses on sugarcane processing. Its main product is white crystalline sugar, which must adhere to the Indonesian National Standard (SNI), with quality characteristics measured through sugar solution color (ICUMSA) and Grain Size (BJB). The quality of the produced white crystalline sugar is maintained through a monitoring process to ensure compliance with government-established standards.Quality monitoring involves control over ICUMSA and BJB, with the understanding that a smaller BJB results in a whiter ICUMSA, indicating better quality. The efforts in quality control aim to assist the company in maintaining and enhancing product quality in accordance with government standards. The company's target is to achieve zero defects, with a tolerance of 0.5%.Data from the milling process in 2022 at PG Pradjekan recorded sugar production of 16,693 tons. However, there was a defect rate of 0.92% of the total production, equivalent to 155 tons. These defects incur losses for the company as rejected products undergo reprocessing, leading to increased costs and prolonged production time. Therefore, improving quality control is crucial to reducing defect rates and enhancing overall production efficiency.

Conceptual Model of Transformational Leadership Style on Employee Performance

As the business climate changes increasingly rapidly after the Covid era in several industrial companies, organizational leadership is expected to become more adaptive to change. Companies are required to be able to respond to challenges by presenting leaders and transformational leadership (digital leaders) to keep up with changing times. The application of the conceptual model of transformational leadership in the digital era is a necessity for organizations, especially companies in diverse industries. This research aims to understand how the conceptual model of transformational leadership becomes more sustainable and optimal in improving employee performance. The research process uses a literature study approach and is carried out comprehensively. Several literatures state that transformational leadership has a significant and positive direct effect on employee performance. This research shows that the transformational leadership type will increase the likelihood of success in achieving the company's productivity targets.

Peran Housekeeping Dalam Operasional Hotel

The changing dynamics of the hospitality industry are currently growing significantly, along with tourist demand. The scope, responsibility, and the central role of each department is very important in the hotel, due to achieve the Company's success target for the products offered. Cleanliness, tidiness, comfort, and beauty of hotels are crucial and mandatory things to standardize. The housekeeping department plays a majority of hotel role as a knowledge and undertanding. This research aims to explain the significant role of hotel housekeeping in hotel operations. This research adopted a qualitative approach. Data was obtained from literature reviews, structured interviews with several housekeeper leaders, and empirical studies. Purposive sampling has been chosen to determine the number of samples that represent the population. In this research, role theory is the main basis for studying the problem. Our analysis confirms that the dominant role of hotel housekeeping has an impact on 6 main role components and consists of 19 specific role indicators that can be directly operationalized in practice in the field.

Decreased SAIDI and SAIFI the Buruan Feeder Distribution Line with Insulator Cover

The Buruan feeder is one of the electrical energy distribution systems operated by PLN South Bali. The Buruan feeders are an overhead distribution system with A3CS conductors. This feeder has several components that are open, so it is easy to get external disturbances from animals and trees. To overcome this problem, exposed components need to be isolated, one of which is with an insulator. This research found that in 2021, the value of SAIDI was 3.33 hours/year/customer, and the value of SAIFI was 7 times/year/customer. After maintenance, reconductor, and installed animal barrier, in 2022, the value of SAIDI is 0.65 hours/year/customer, and the value of SAIFI is 4 times/year/customer. This value of SAIFI is not enough for PLN UID Bali to become a world-class company. To support the PLN UID Bali to go to a world-class company, need some act to install an insulator cover. If the insulator cover was installed, the prediction of the value of SAIDI would be 0.019 hours/year/customer, and the value of SAIFI is 0.94 times/year/customer, according to the company's world-class target.

Identifying Risks in Cross-border Mergers and Acquisitions: Taking Geely as an Example

The merger and acquisition integration of enterprises involves the future development of enterprises, especially for cross-border integration, due to the differences in management and culture between the two enterprises, the difficulty of integration is relatively higher. Complementary advantages can only be achieved when both parties achieve better integration. Before implementing M&A integration, the company should do a background check on the acquisition target, confirm the possible risks after the acquisition, and take comprehensive countermeasures. In the process of implementing mergers and acquisitions (M&A) integration, the acquirer should actively establish effective communication channels and reduce the cultural differences of the enterprise during the communication. In terms of follow-up operation and management, we should actively learn the advanced management experience and operation model of the target company. people can adopt a cooperative model to retain the original operation model of the acquired company, and at the same time encourage the enthusiasm of employees for independent research and development. Finally, enterprises should pay attention to the human resource management after the acquisition. By understanding the needs of employees, formulate targeted plans to retain excellent employees, and attract new talents through salary, benefits, and corporate culture, so as to realize the people-oriented development concept.

How do takeovers in the United Kingdom split value gains between domestic deals' parties?

PurposeThis paper aims to address the question: What is the distribution of value (in pounds) created in a sample of domestic takeovers in the United Kingdom from 2013 to 2020 among acquirer and target stockholders?Design/methodology/approachThe author employs a traditional event study methodology to calculate the percentage excess returns of companies on the announcement date. These returns are then converted into pound-denominated excess returns using the companies' market capitalizations. This allows the author to estimate the synergies of the mergers and acquisitions (M&As) and how they are allocated between acquirers and targets. This innovative transformation from percentage to pound excess returns establishes a new ratio methodology for addressing the paper's objective.FindingsThis paper reveals that in UK takeovers, 40 percent of the synergies in pounds are allocated to the stockholders of acquiring companies, while 60 percent go to the stockholders of target companies. In other words, acquirers retain a significant portion—more than half—of the synergies generated in these domestic deals. This original finding is statistically significant at the one percent level and strongly contradicts the hypothesis that acquirers, at best, merely break even.Originality/valueThe evidence that UK takeovers distribute value gains nearly equally between domestic deal parties challenges the enduring conventional insight in the M&A literature. This conventional wisdom suggests that the value created by business combinations is entirely distributed to target company stockholders. Consequently, this reexamination may have broader implications, offering an alternative perspective on the motives behind business combinations. This perspective differs from the “managerial hubris hypothesis,” which aligns with the prevailing conventional insight but receives limited support in the original finding reported here.

Stock Price Crash Risk and the Market for Corporate Control

AbstractRecent studies suggest that greater exposure to the market for corporate control matters for managers and shareholders since it affects firms’ ex‐post risk of experiencing a stock price crash. The findings though question the direction of the effect. In contrast, in this study, we are the first to examine the effects of firms’ ex‐ante risk of experiencing a stock price crash, a likely antecedent of which is managers’ concealment of news on aspects of the market for corporate control. We find that higher crash risk leads to greater takeover target likelihood. This relationship, which is robust to duly circumventing reverse causality, depends to a significant extent on inferior managerial quality and greater managerial discretion around financial accruals, affording richer insight into the notion that correction of managerial behaviour is a stimulus for the market for corporate control, but one that depends on the likely extent of managers’ concealment of news. We also concurrently find that actual takeover targets with higher crash risk generate a lower bid premium and receive more payment with stock. Overall, our findings strongly suggest that decision‐making in the market for corporate control is at least partially explained by incentives linked to opportunistic prices and takeovers of lemons.

Performance Evaluation of Logistics Service Provider (LSP) in FMCG Companies Using Physical Distribution Service Quality (PDSQ) Dimension: Case Study

Increasingly fierce business competition requires companies to be able to meet customer desires on time, in the right amount and in the right quality. FMCG XXX Company is a skin care product manufacturing company that focuses on production activities. Therefore, the company transfers product distribution activities to customers (distributors) to Logistics Service Providers (LSP). FMCG XXX hold consumer’s satisfaction in the highest regard. Along with the increasing number of activities being diverted, FMCG XXX companies aim to evaluate LSP performance through appropriate indicators. The indicators evaluated in this study adopt dimensions in Physical Distribution Service Quality (PDSQ) which consist of three dimensions, namely timeliness, availability and condition. Based on the results of the study, 13 indicators were obtained that FMCG XXX Company used to evaluate LSP performance. In general, around 69% of LSP's actual performance has been able to meet the targets set by the company, where two indicators are able to exceed the target and seven indicators are in accordance with the target. However, the company still has to focus on four indicators that have negative deviations because the actual performance value is less than the target set by the company. Negative indicators come from the availability and condition dimensions. The company coordinates with LSP to design improvement projects in order to improve actual performance according to the company's targets.