SIGNIFICANCE OF THE STUDY
This study will assist the investor as to the decision whether to pursue the project. This will help in the analysis if the project would be feasible and to determine if the project will enable an increase in the value of the investment. The nature of demand will help in the identification if there is really a demand for the product and to know if this demand is high enough to support the project and to cover up the cost and eventually this will minimize the failure of the project. Knowing the specific market gives the idea of how much capital is needed to produce the desired quantity and quality of the products and will determine who the product will satisfy. The analysis
The study employed the supply chain management (SCM) framework from the lens of the New Institutional Economics (Cheung, 1992 and Williamson, 2000). Supply chain management (SCM) simply refers to the management of the entire set of production, distribution and marketing processes by which a consumer is supplied with a desired product.
Supply chain management is a systems approach and draws contributions from various disciplines. Areas for SCM improvement may be categorized into three:
(1) Improving economic efficiency. This category consists of two theoretical underpinning: a) Transaction Cost Economics; and b) Agency Theory. The former refers to the cost associated with the exchange of goods and services, including the cost of acquiring information and the costs of negotiating and enforcing contracts, among others. The latter is concerned with defining the most appropriate contract which strikes the best balance between firms in relation to information asymmetry, uncertainty of outcomes and risk aversion.
(2) Improving business relationship. Network theory and relationship marketing are the fundamental basis in improving business relationship. Network theory underscores the interdependence (directly and indirectly) of...