Fast Moving Consumer Goods Companies Research Articles

Investigating the Impact of Product Quality, Price Sensitivity, and Brand Reputation on Consumer Purchase Intentions in the FMCG Sector

This research investigates the intricate dynamics influencing consumer purchase intentions within the fast-moving consumer goods (FMCG) sector, focusing on the impact of product quality, price sensitivity, and brand reputation. A quantitative research design was adopted, with data collected from a sample of 500 respondents through an online survey. Descriptive statistics, correlation analysis, regression analysis, and ANOVA were employed to analyze the data comprehensively. The findings reveal a strong positive correlation between perceived product quality and consumer purchase intentions, emphasizing the importance of maintaining high-quality standards. Price sensitivity was found to negatively impact purchase intentions, highlighting the need for strategic pricing strategies. Brand reputation emerged as a significant predictor of purchase intentions, emphasizing the enduring value of strong brand equity. Demographic analyses identified distinct target segments based on age and income levels. The study contributes valuable insights for FMCG companies in developing tailored marketing strategies and enhancing market competitiveness.

An Empirical Analysis of Brand Loyalty and Marketing Strategies in the FMCG Sector of China

This study examines the complex connection involving brand loyalty and marketing strategies in the Fast-Moving Consumer Goods (FMCG) industry, with a focus on the importance of innovative marketing techniques in fostering consumer loyalty. The study utilizes a mixed-method approach, combining quantitative data from consumer surveys with qualitative insights from industry expert interviews. This methodology allows for a full analysis of current marketing trends and their effectiveness. The study initially examines crucial determinants that impact brand loyalty in the FMCG industry, encompassing product quality, pricing, customer service, & brand perception. The text analyzes the effects of several marketing methods, such as digital marketing, personalized communication, and environmentally friendly initiatives, on key factors that influence customer loyalty. The investigation indicates that digital marketing & personalization are strong indicators of brand loyalty, illustrating a change in customer preferences towards firms that provide more customized and captivating experiences. The study examines the difficulties encountered by FMCG companies in efficiently implementing these tactics, including the need to strike a balance between cost and effectiveness, handling both online and offline channels, including aligning marketing strategies with the swiftly evolving customer expectations. The paper provides strategic advice for FMCG companies seeking to improve brand loyalty. It suggests that adopting customer-centric & adaptive marketing tactics is essential for long-term success in the competitive FMCG industry. This research enhances the comprehension of the complex relationship between brand loyalty and marketing in the FMCG sector by presenting factual facts and strategic insights. It provides essential information for both academic studies and practical implementation.

Comparative analysis and implementation of a transformative business and supply chain model for the FMCG sector in Africa and the USA

This paper conducts a comparative analysis of business and supply chain models in the Fast Moving Consumer Goods (FMCG) sector between Africa and the USA, aiming to identify transformative strategies for enhancing efficiency, sustainability, and market penetration. The FMCG sector serves as a critical component of both economies, contributing significantly to GDP and employment. However, stark differences in infrastructure, consumer behavior, and regulatory environments between Africa and the USA necessitate tailored approaches to business and supply chain management. Drawing on empirical data and case studies, this study examines key elements of successful FMCG models in each region, including distribution networks, inventory management, technology adoption, and market dynamics. It explores how factors such as urbanization, income levels, and cultural preferences influence consumer demand and supply chain strategies. Moreover, the analysis delves into the impact of emerging trends such as e-commerce, sustainability, and digitalization on FMCG operations in both regions. The findings reveal opportunities for mutual learning and adaptation between Africa and the USA. While the USA boasts mature infrastructure and advanced technological capabilities, Africa offers potential for innovative solutions tailored to its unique challenges and opportunities. Through cross-regional knowledge exchange and strategic partnerships, FMCG companies can develop hybrid models that combine the best practices from both regions to drive growth, reduce costs, and enhance resilience. The study concludes by proposing actionable recommendations for FMCG companies seeking to implement transformative business and supply chain models in Africa and the USA, emphasizing the importance of flexibility, agility, and stakeholder collaboration in navigating diverse market landscapes and driving sustainable growth.

A Study on the Employee Welfare Schemes on Organizational Performance in the Fast-Moving Consumer Goods (FMCG) sector.

In today's dynamic business environment, characterized by fierce competition and rapidly evolving consumer demands, the fast-moving consumer goods (FMCG) sector stands out as a pivotal industry. Within this landscape, organizations strive not only to maintain competitiveness but also to thrive by attracting, motivating, and retaining top talent. Employee welfare schemes have emerged as a strategic tool for achieving these objectives, as organizations recognize the significant impact of employee well-being on overall organizational performance. This study endeavours to delve deeper into the nexus between employee welfare schemes and organizational performance within the FMCG sector. With the overarching aim of contributing to the existing body of knowledge in human resource management and organizational studies, this research adopts a comprehensive mixed-methods approach. By integrating quantitative analysis and qualitative insights, this study seeks to provide a nuanced understanding of the multifaceted relationship between employee welfare initiatives and organizational success. At its core, the quantitative component of this research entails the collection of primary data through surveys administered to employees and managers across diverse FMCG companies. These surveys will capture vital information regarding the types of employee welfare schemes implemented, their perceived effectiveness, and their impact on key performance indicators (KPIs) such as productivity, employee satisfaction, retention rates, and overall organizational success metrics.

Integrating behavioral science into operational risk management: A new paradigm for the FMCG sector

This paper explores the rationale for integrating behavioral science into ORM within the FMCG sector, examines key behavioral principles relevant to risk management, and proposes practical frameworks for implementation. By adopting this new paradigm, FMCG companies can enhance their resilience, adaptability, and overall performance in an increasingly complex and dynamic business environment. Operational risk management (ORM) is paramount for ensuring the stability and success of businesses, particularly in fast-moving consumer goods (FMCG) sectors where operational disruptions can lead to significant repercussions. However, traditional ORM approaches often overlook the human element, focusing solely on systems, processes, and external factors. This paper advocates for the integration of behavioral science into ORM, recognizing the pivotal role of human behavior in shaping operational risks and offering strategies to effectively mitigate these risks. The rationale for integrating behavioral science into ORM within the FMCG sector is explored, emphasizing the need to understand and influence human behavior to enhance resilience and adaptability. Key behavioral principles relevant to risk management are examined, including decision-making biases, social dynamics, and cognitive heuristics. These insights provide a foundation for developing practical frameworks for implementation, encompassing areas such as demand forecasting, compliance, and employee engagement. By adopting this new paradigm, FMCG companies can enhance their resilience, adaptability, and overall performance in an increasingly complex and dynamic business environment. Integrating behavioral science into ORM enables companies to anticipate and address human factors that contribute to operational risks, leading to more effective risk management strategies and improved business outcomes .In conclusion, the integration of behavioral science into ORM represents a paradigm shift that recognizes the importance of understanding and influencing human behavior in mitigating operational risks. By incorporating behavioral insights into their risk management practices, FMCG companies can better navigate challenges, capitalize on opportunities, and ultimately, achieve sustained success in today's competitive marketplace.

STRATEGIC OPERATIONS MANAGEMENT IN FMCG: A COMPREHENSIVE REVIEW OF BEST PRACTICES AND INNOVATIONS

Strategic operations management (SOM) in the fast-moving consumer goods (FMCG) industry plays a crucial role in driving efficiency, quality, and customer satisfaction. This paper presents a comprehensive review of best practices and innovations in SOM within the FMCG sector, aiming to provide insights into how companies can optimize their operations to achieve competitive advantage and sustainable growth. The review begins by examining the key challenges faced by FMCG companies, including demand volatility, short product life cycles, and complex supply chains. It then explores how strategic operations management practices can help address these challenges and improve overall performance. One of the key areas of focus in SOM for FMCG companies is inventory management. Best practices such as demand forecasting, lean inventory principles, and just-in-time (JIT) inventory systems are discussed, highlighting their importance in reducing stockouts, minimizing waste, and improving overall supply chain efficiency. Another critical aspect of SOM in the FMCG industry is production planning and scheduling. The review outlines how advanced planning tools, such as enterprise resource planning (ERP) systems and advanced analytics, can help FMCG companies optimize production processes, reduce lead times, and enhance flexibility to respond to changing market demands. Furthermore, the paper discusses the role of technology and innovation in enhancing SOM practices in the FMCG sector. It explores how technologies such as automation, artificial intelligence (AI), and the Internet of Things (IoT) are transforming FMCG operations, enabling companies to achieve higher levels of efficiency, quality, and sustainability. The review also highlights the importance of collaboration and partnerships in SOM for FMCG companies. It discusses how strategic alliances with suppliers, distributors, and other stakeholders can help FMCG companies optimize their supply chains, reduce costs, and improve customer satisfaction. Overall, this paper provides a comprehensive overview of best practices and innovations in strategic operations management for FMCG companies. It emphasizes the importance of adopting a holistic approach to SOM, integrating people, processes, and technology to achieve competitive advantage and sustainable growth in the dynamic FMCG industry. This review paper systematically examines existing literature on operations management within the FMCG sector, highlighting effective strategies for coordinating operations, crew scheduling, and logistics to uphold professionalism and achieve peak performance. It aims to aggregate insights on process improvement opportunities, conflict management techniques, and cross-functional team dynamics that have led to world-class customer experiences and increased product sales. The review will also discuss the role of technology in maintaining operational records and facilitating continuous improvement in FMCG logistics and supply chain management.
 Keywords: Innovations, Best Practices, SOM, FMCG, Comprehensive.

OPTIMIZING FMCG SUPPLY CHAIN DYNAMICS: A NOVEL FRAMEWORK FOR INTEGRATING OPERATIONAL EFFICIENCY AND CUSTOMER SATISFACTION

This paper proposes a groundbreaking theoretical model specifically designed for the FMCG sector, focusing on optimizing supply chain dynamics to balance operational efficiency with customer satisfaction. Drawing on hands-on strategies and problem-solving abilities, the framework aims to offer practical solutions for common challenges faced by FMCG operations managers, such as inventory management, demand forecasting, and efficient resource allocation. The fast-moving consumer goods (FMCG) industry is characterized by intense competition, short product life cycles, and rapidly changing consumer preferences. In this challenging environment, optimizing supply chain dynamics is crucial for FMCG companies to achieve operational efficiency and enhance customer satisfaction. This concept paper presents a novel framework for integrating operational efficiency and customer satisfaction in FMCG supply chains, aiming to provide insights and strategies for FMCG companies to improve their supply chain performance. The framework emphasizes the importance of aligning supply chain strategies with customer needs and preferences. By focusing on key areas such as inventory management, distribution network efficiency, and technology integration, FMCG companies can improve their supply chain agility and responsiveness. Additionally, the framework highlights the importance of leveraging data analytics and technology to enhance supply chain visibility and decision-making. Implementing the framework requires collaboration among stakeholders, including suppliers, manufacturers, distributors, and retailers. By working together to optimize supply chain processes and enhance customer service, FMCG companies can gain a competitive advantage in the marketplace. Overall, the framework offers a comprehensive approach to optimizing FMCG supply chain dynamics, with the ultimate goal of improving operational efficiency, reducing costs, and enhancing customer satisfaction.
 Keywords: FMCG, Supply Chain, Customers, Framework.

Affective Trust in the Supervisor and Innovative Work Behavior: The Effects of Proactive Skill Development and Learning Goal Orientation

The main objective of this study was to examine the relationship between affective trust in the supervisor and innovative work behavior. In addition, this paper investigated the mediating role of proactive skill development in the affective trust - innovative work behavior relationship and the moderating role of learning goal orientation in the affective trust – proactive skill development relationship. Data for this study were collected from 220 employees drawn from four FMCG (fast moving consumer goods) companies based in Pakistan. Multiple regression analyses and the bootstrapping procedure were used to test the research hypotheses. Results revealed that proactive skill development partially mediated the effects of affective trust in the supervisor on innovative work behavior. Furthermore, we found that learning goal orientation strengthened the direct effect of affective trust in the supervisor on proactive skill development and also strengthened its indirect effect on innovative work behavior. The theoretical and practical implications of our results and the limitations of this research are discussed.

Factors influencing the digital transformation of sales organizations in Indonesia

A model that can elaborate the interaction between research variables influencing digital transformation, especially on the performance of sales organizations in Fast-Moving Consumer Goods companies, is fundamental. It allows the decision-makers to take proper action for their companies' optimization. By using Partial Least Squares Structural Equation Modeling (PLS-SEM) to build a model that can describe the interaction between Leadership Model, Organizational Citizenship Behavior, and Sales Management in 346 respondents working in various Fast-moving Consumer Goods companies in Indonesia, the present study found the most respondents were from the Special Capital Region of Jakarta (40.7%). It was found that the Sales Director (50.0%) was the most responsible for digital transformation implementation within the sales organization. Most respondents answered that effectiveness in the company's Internal Business Processes was the primary goal of digital transformation (28.1%). Concerning the success parameters of the digital transformation, Business Processes were the prominent expression of successful implementation (19.4%), with Sales Automation (37.4%) as the main activity in their digital transformation. Three hypotheses with the variables of leadership models, organizational citizenship behavior (OCB), and sales management control, had proven to affect digital transformation positively. Later, in four hypotheses where sales organization performance was set as the dependent variable, it was found that the leadership model influenced organization performance with digital transformation as a mediator. Finally, the last three hypotheses, with variables of sales management control, organizational citizenship behavior, and leadership model, positively influenced organization performance through digital transformation as a mediating variable. Leaders in organizations who carry out digital transformation must ensure that their organizations can respond to disruptions related to the use of digital technology in order for an organization to achieve proper performance.

Sustainable packaging innovations and their impact on HSE practices in the FMCG industry

Sustainable packaging innovations have emerged as a critical avenue for addressing environmental concerns and enhancing operational efficiency within the Fast-Moving Consumer Goods (FMCG) industry. This review delves into the multifaceted impact of sustainable packaging innovations on Health, Safety, and Environmental (HSE) practices within this sector. With the escalating global focus on environmental sustainability, FMCG companies are increasingly integrating sustainable packaging solutions into their operations. These innovations encompass a spectrum of approaches, including recyclable materials, biodegradable packaging, lightweight designs, and renewable resources. Such initiatives aim to mitigate the adverse environmental effects associated with traditional packaging practices, such as excessive waste generation and carbon emissions. The adoption of sustainable packaging innovations profoundly influences HSE practices in the FMCG industry. Firstly, it fosters a culture of environmental responsibility, prompting companies to prioritize eco-friendly materials and production processes. This shift aligns with regulatory standards and societal expectations, reducing the ecological footprint of FMCG products while enhancing brand reputation. Moreover, sustainable packaging innovations significantly impact health and safety aspects within FMCG operations. By reducing the reliance on non-biodegradable materials and hazardous substances, companies minimize occupational health risks for workers involved in packaging production and handling. Furthermore, lightweight packaging designs contribute to safer transportation and distribution practices, mitigating the likelihood of accidents and injuries along the supply chain. The integration of sustainable packaging innovations also engenders operational efficiencies within FMCG companies. Through optimization of packaging materials and processes, organizations can achieve cost savings, resource conservation, and enhanced supply chain resilience. These benefits bolster long-term competitiveness and profitability while reinforcing the commitment to HSE principles. Sustainable packaging innovations represent a transformative force within the FMCG industry, reshaping HSE practices and fostering a paradigm of environmental stewardship. As companies continue to prioritize sustainability in packaging strategies, they stand to realize tangible benefits in terms of regulatory compliance, operational efficiency, and brand differentiation. This review underscores the imperative for FMCG stakeholders to embrace sustainable packaging innovations as a cornerstone of responsible business practice in the 21st century.

Leadership style and employee performance in China’s fast moving consumer goods industry

The purpose of this study is to investigate the effect of various leadership styles on employee performance in the Fast-Moving Consumer Goods (FMCG) industry in China. The unexpected global spread of the coronavirus pandemic and its complicated issues have created a substantial amount of uncertainty in consumer demand worldwide which has motivated this research and highlighted the crucial role that the FMCG industry's marketing relationship plays in determining enterprise profit. There is a growing concern among enterprise managers, academics and policymakers about employee performance and its overarching impact on the organization. The study is underpinned by social exchange theory and employs a cross-sectional design. An online survey was conducted with 384 employees from the FMCG industry to measure the impact of three independent variables: authentic leadership style, servant leadership style and ethical leadership style. The findings reveal that authentic, servant and ethical leadership all significantly affect employee performance in the Chinese FMCG industry. Among these, ethical leadership is found to have the extreme effect. The implications of this study are of practical relevance to FMCG companies. FMCG companies can potentially navigate through the uncertainty in global consumer demand more effectively by reconfiguring their leadership styles to enhance employee performance. The study provides insights that can be used by FMCG companies to increase employee performance which is directly linked to enterprise profit.

Pengaruh EPS, DPS, PBV, dan DER Terhadap Harga Saham(Closing Price) PT. Unilever Indonesia Tbk. Periode 2015-2022

Fast Moving Consumer Goods companies are one of the sources in realizing investment with the main sources of daily necessities, such as food, beverages, household products, and beauty products. However, it turns out that recently the share price of PT. Unilever Indonesia actually experienced a very significant decline. This study aims to determine the effect of EPS, DPS, PBV and DER on stock prices. This study uses a quantitative approach. The data used in this study is secondary data taken from the financial statements of PT. Unilever Indonesia Tbk for the 2015-2022 period. The data analysis used is multiple linear regression analysis using review. The results showed that partially the EPS variables have no effect on stock prices. While the DPS, PBV and DER variables had a positive effect on stock prices. The simultaneous results show that the EPS, DPS, PBV and DER variables affect stock prices.

REVIEW OF BIG DATA IN FMCG SUPPLY CHAINS: U.S. COMPANY STRATEGIES AND APPLICATIONS FOR THE AFRICAN MARKET

This review explores the strategic utilization of Big Data in Fast-Moving Consumer Goods (FMCG) supply chains, shedding light on the approaches adopted by U.S. companies and the potential applications for the evolving African market. As technology transforms the landscape of supply chain management, U.S. companies are at the forefront of leveraging Big Data analytics to optimize efficiency, enhance visibility, and respond dynamically to consumer demands. The analysis delves into the specific strategies employed by U.S. FMCG companies, ranging from predictive analytics for demand forecasting to real-time tracking for logistics optimization. Furthermore, the review investigates the adaptability and relevance of these strategies to the unique challenges and opportunities presented by the African market. The exploration of successful case studies, challenges, and potential solutions provides valuable insights for both U.S. companies seeking to expand into Africa and local businesses aiming to harness the power of Big Data for improved FMCG supply chain management. The findings contribute to the ongoing discourse on the intersection of technology, global supply chains, and the transformative potential of Big Data in shaping the future of FMCG distribution across continents.
 Keywords: Big Data, Fast-Moving Consumer Goods, Analytics, Supply Chain Optimization, Demand Forecasting, Consumer-Centric, Data Security, Ethical Considerations.

Assessment of Sustainable Packaging Supply Chain Management Using the Life Cycle Assessment Method (Case Study: FMCG Company in Indonesia)

Based on a Greenpeace International survey, Fast Moving Consumer Goods (FMCG) companies are the dominant force behind the single-use economic model that drives the plastic waste crisis originating from consumption and production by producing industrial waste that must be handled appropriately with the concept of sustainable supply chain management (SSCM). This study discusses SSCM practices in one of the FMCG companies, namely PT XYZ, and focuses on sustainable packaging supply chains, intending to know the application of SSCM in the supply chain and improvements that can be made to reduce waste and its negative impacts. The exploratory research was done with a case study type and used a mixed-method approach to formulate the development that can be done to reduce the waste and negative impact of the packaging supply chain. The assessment resulted from calculating the Life Cycle Assessment software, Simapro, with the CML-IA baseline V3.06/EU25 method. This method represents the environmental impact using 11 indicators. The most significant adverse environmental impacts are global warming, human toxicity, and marine aquatic ecotoxicity. The most significant contribution to the cause of the negative environmental impact is the consumption of electricity and water, which produce excess CO2 and boiler engines which produce excess NO2. Improvements can be made by reducing CO2 gas and using alternative fuels for environmentally friendly boilers.

The Impact of Marketing Strategy on Business Performance: Case Study of a Fast Moving Consumer Goods Company

The Impact of Marketing Strategy on Business Performance: Case Study of a Fast Moving Consumer Goods Company

HUL – The Digital Rise

This paper examines the transformative impact of the Shikhar software introduced by Hindustan Unilever Limited (HUL) on the traditional distribution model of Fast-Moving Consumer Goods (FMCG) in India. Unveiled on December 8, 2020, the Shikhar platform emerged as a catalyst for digitalizing small mom-and-pop shops, empowering them to optimize inventory, accept online payments, and augment sales. By December 2021, the platform had rapidly expanded its footprint, becoming the preferred ordering platform for over 3,00,000 stores nationwide, marking a threefold increase from the previous year. The primary objective of HUL's digital initiative is twofold: to onboard more stores onto the Shikhar platform and concurrently leverage digital inclusion as a tool to bolster the company's competitive edge. As India's largest FMCG company and the local arm of the global giant Unilever plc, HUL's extensive product portfolio encompasses soaps, shampoos, detergents, skincare items, cosmetics, tea, packaged goods, ice cream, and water purifiers. This paper delves into the evolution of HUL's distribution network, from the traditional "wholesaler network" to the innovative "registered wholesaler" model. Additionally, it explores the company's foray into e-commerce with Humara-shop in 2015, a precursor to Shikhar, which aimed at digitally empowering small shops and general trade, constituting 90% of HUL's revenue. The growth fueled by technology, particularly through initiatives like 'Project Shakti' and collaborations with modern trade channels, supermarkets, hypermarkets, and e-commerce, is highlighted. In conclusion, the Shikhar software's integration into HUL's distribution strategy exemplifies a successful marriage of technology and traditional retail, enhancing efficiency and accessibility while reinforcing the company's market dominance. This study contributes to the understanding of how established FMCG giants can harness technology to transform and adapt to the evolving retail landscape.

Exploring Digital Marketing Optimization: Enhancing Company Performance with a Focus on the FMCG Industry in Lebanon

In the ever-evolving landscape of digital marketing, companies within the Fast-Moving Consumer Goods (FMCG) industry in Lebanon are recognizing the imperative need to optimize their digital marketing strategies to enhance overall performance. This study delves into the intricacies of digital marketing optimization, with an emphasis on perceived ease of use, perceived usefulness, user experience, and consumer engagement as pivotal themes impacting company performance. Employing a qualitative research methodology, in-depth insights were garnered from 15 industry professionals through semi-structured interviews. These individuals were carefully selected for their expertise and firsthand experience with digital marketing within the Lebanese FMCG sector. The analysis of the qualitative data led to the extraction of nuanced understandings regarding how perceived ease of use and perceived usefulness directly influence the user experience and, subsequently, consumer engagement in digital platforms. The study highlights the critical role of user-friendly interfaces and valuable content in fostering positive consumer experiences, which in turn, amplify engagement rates. Moreover, the research identifies the chain effect that starts with the initial consumer interaction with digital marketing campaigns and cascades into long-term company performance metrics. The findings reveal that the FMCG companies in Lebanon are at a pivotal junction, where embracing digital marketing optimization can lead to significant competitive advantages. Companies that adeptly leverage the ease of use and usefulness of their digital content can create enhanced user experiences, thereby fostering deeper levels of consumer engagement.

PENGARUH GOOD CORPORATE GOVERNANCE, LEVERAGE, DAN PROFITABILITAS TERHADAP CORPORATE SOCIAL RESPONSIBILITY PADA PERUSAHAAN FAST MOVING CONSUMER GOODS YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2017-2021

Along with the rapid development of the business world, it requires companies to increase their attention to the social environment. Social responsibility is currently getting more and more attention in the business world. This study aims to find out how the effect of Good Corporate Governance, leverage, and profitability on Corporate Social Responsibility (CSR) in Fast Moving Consumer Goods companies listed on the Indonesia Stock Exchange for the 2017-2021 period. Good Corporate Governance is proxied by institutional ownership, independent board of commissioners, audit committee. Leverage is measured by the Debt to Equity Ratio (DER), and profitability is measured by Return on Assets (ROA). The population in this study are Fast Moving Consumer Goods companies in the Food and Beverages sub-sector which are listed on the Indonesia Stock Exchange. Statistical analysis in this study used multiple linear regression analysis and used the IBM SPSS 23 analysis tool. Based on the results of the analysis it can be seen that the audit committee has an effect on Corporate Social Responsibility (CSR), while institutional ownership, independent board of commissioners, Debt to Equity Ratio (DER) and Return on Assets (ROA) have no effect on Corporate Social Responsibility (CSR). While the results of the F test show that all independent variables have an effect on Corporate Social Responsibility (CSR) simultaneously. Keywords : Institutional Ownership, Independent Board of Commissioners, Audit Committee, Leverage, Profitability, and Corporate Social Responsibility (CSR)

Scenario Planning of Digital Transformation in Indonesia’s Fast-Moving Consumer Goods Sales Organization: Uncertainties and Possibilities

Since uncertainty in the business domain has increased the urgency for scenario development as a strategic tool, the research examined a relationships between a leadership model, organizational citizenship behavior, and sales management control variables using scenario planning. The questionnaire’s scaling using a Likert scale was done toward results from discussions and in-depth interviews with several experts in Fast-Moving Consumer Goods (FMCG) organizations, FMCG organizational leaders (Chief Executive Officers/CEOs), leadership experts, organizational behavior consultants, and organizational performance practitioners. The research finds that external and internal forces determine the success of digital transformation. External forces consist of digital technology availability, consumer expectations,business competition maps, and digital talents. Internal forces are budget allocation, competency trap versus growth mindset, organizational structure, and organizational culture. The scenario matrix plot forms four scenarios of the digital transformation in the sales organization of Indonesia’s FMCG companies (realistic, pessimistic, optimistic, and superoptimistic), where realistic (iteration improvement scenario) is largely predicted to occur for companies carrying out digital transformation. Such scenario requires sales organizations to have a growth mindset to deal with the uncertainty of customer/consumer expectations properly. The strategy appearing as an FMCG digital transformation compass is expected to advise FMCG companies in Indonesia when executing and overseeing the digital transformation within theircompanies.

Cash conversion cycle across industries

The purpose of this research is to assess whether the Cash Conversion Cycle differs between industries, by looking at Days Inventory Outstanding, Days Sales Outstanding and Days Payables Outstanding. This research provides an overviewof Cash Conversion Cycle in two different industries and discusses how each component influences Cash Conversion Cycle. It uses a sample of 172 data points (43 firms) from multinational companies operating worldwide. Based on data retrieved from Bloomberg and from the annual reports of 23 Fast-Moving Consumer Goods companies and 20 major airline companies, a univariate and bivariate (correlation) analysis was done. The analyses for both industries cover four years, from 2009 to 2012, a time span that includes a period of economic downturn. The findings suggest that Cash Conversion Cycle differs between industries. It also differs depending on the size of the company. While its components – Days Inventory Outstanding, Days Sales Outstanding and Days Payables Outstanding – directly affect Cash Conversion Cycle, there are also other factors at play, such as inventory costing system, bargaining power with suppliers and customer credit policies. The economic downturn, and particularly the specificities of each industry make this overview relevant. The research addresses managers who should take Working Capital Management decisions, which can extend or reduce Cash Conversion Cycle, as it contributes to a better understanding of how the size of a firm, its inventory system, liquidity, and payables are associated to the Cash Conversion Cycle and consequently affect companies’ profitability.