Efficient value chain management and firm survival: the case study of Ayensu starch company limited (ASCo).

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Date
August, 2015
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Abstract
The competitiveness of manufacturing activities in the modern business world enjoins the actors of all value adding activities to operate efficiently in order to maximize the output of their operating activities. The success of these value adding activities is influenced by the interaction and strength of relationships that exist between suppliers downstream, the firm as well as customers upstream. The study was on the efficient value chain management and firm survival using Ayensu Starch Company Value Chain as a case study. The total population of farmers, customers and management used for the survey was 570 out of which a sample of 260 was selected, broken down into 250 farmers, 2 management members and 8 customers. The researcher adopted stratified and judgmental sampling technique in selecting the respondents and also used structured questionnaires and interview guides as data collection tools. Data collected from the field was analysed in forms of descriptive statistics, regression analysis and methods of efficiency measurement. The results showed that ASCo has suffered severe production shortfalls in the past five (5) years due to inadequate supply of raw materials, inefficient plant, machinery and equipment to undertake processing of raw cassava. Also, the efficiency in production was low for the period 2010-2013 cropping season whilst that of 2014 was high. Furthermore, factors such as main objective for cassava cultivation, cropping system, major point of sale, pest/disease control and main source of funds influence survival of ASCo from the farmers’ perspective. Again, the operating experience resulting from years of operation, state-of-the-art technology, relationship with suppliers, relationship with customers as well as research and development impact on survival of the firm. Finally, production, technological and marketing constraints affect efficiency of the players in ASCo’s value chain therefore the researcher recommends that ASCo should pay competitive prices for cassava in order to guarantee regular and promote supply and also ASCo should engage in a private-public partnership so as to help inject substantial funds into its operations.
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A Thesis Submitted to the Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology (KNUST), in partial fulfilment of the requirement for the degree of Master of Philosophy in Business Administration (Marketing Option),
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