Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Developing Product Liability Response Strategies of SMEs using PEST-SWOT-AHP analysis

PEST-SWOT-AHP 분석을 이용한 중소제조기업의 제조물책임 대응전략 수립

  • Seo, JunHyeok (Dept. of Industrial and Management Engineering, Hanbat National University) ;
  • Bae, SungMin (Dept. of Industrial and Management Engineering, Hanbat National University)
  • 서준혁 (한밭대학교 산업경영공학과) ;
  • 배성민 (한밭대학교 산업경영공학과)
  • Received : 2016.03.07
  • Accepted : 2016.04.08
  • Published : 2016.06.30
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Abstract

Product liability (PL), which began enforcement in 2002, refers to the legal responsibility of the manufacturers or sellers (wholesales or retailers) for the property damage or bodily harm caused by their product. With a strong enforcement of the Product Liability (PL) Act, companies are required to structure and operate a response system to defend or prevent product accidents efficiently, but small and medium enterprises (SMEs) are unable to respond more aggressively due to limitation of management resources. In this manner, it is important to develop response strategies for SMEs to efficiently cope with the PL Act. In this paper, the PEST (Political, Economic, Social, and Technological) analysis is performed to reveal the impact of the PL Act on SMEs in macro-economic point of view. To formulate SME's PL response strategy, SWOT analysis is performed to categorize each factors from PEST analysis and AHP is applied to identify the intensities of SWOT factors. The prioritized SWOT factor, results of PEST-SWOT-AHP analysis, are used to formulate SME's PL response strategies. The study results are briefly summarized as follows. To reduce product defects, it is necessary for SMEs to formulate PL response strategies for each phase of the product life cycle by continuously collecting and analyzing PL cases in the same industry or for similar products. In addition, SMEs should invest more technological effort to ensure product safety. Further, SMEs should spread PL awareness to all staff members by training internal PL experts. Moreover, a SME should enroll in PL insurance and spread this information to its customers so that they become aware that the company is proactively conforming to the PL law.

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References

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