Stratigies for SME's Growth
2 likes671 views
Small and medium enterprises (SMEs) must adapt to globalization and trade liberalization to remain competitive, focusing on providing high-value products. Growth strategies for SMEs include building a strong corporate culture, implementing effective human resource practices, and leveraging technology and marketing. Developing a comprehensive business plan and integrating intellectual property strategies are crucial for long-term success.
Stratigies for SME's Growth
- 2. SME Competitiveness • Globalization and trade liberalization has made it crucial for most enterprises, including SME,s to become internationally competitive even when operation wholly in the domestic market • In a knowledge based economy, competitiveness of enterprises, including SME,s is increasingly based on ability to provide high-value-added products at competitive price.
- 3. Growth Strategies for SME,s • Build a strong Corporate culture(written goals & plans) • Good Hr. Practices • Reasonable technological strength • World level marketing • Completive Sourcing Strategies • Sound financial strategies • IPR
- 4. Build a strong Corporate culture o Culture determines the overall “feel” of the organization, although it may vary across different segments of the organization o Culture is a powerful force that can shape the firm’s overall effectiveness and long-term success. o Growth by Professional Approach o Values, beliefs, behaviors, customs, and attitudes that help the members of the organization understand what it stands for, how it does things, and what it considers important o Develop a clear idea of what kind of culture you want to create
- 5. Build a strong Corporate culture o Adopt new slogans, stories, ceremonies, and purposely break with tradition o Develop a written code of ethics o Stay current with internal and external information, reports, etc. o Communicate regularly with colleagues, subordinates and customers o External and internal inelegance o Bring in outsiders to important managerial positions
- 6. Companies with strong Cultures • Culture is very difficult to Build but it helps Organizations in many ways like .building brands, retaining peoples, satisfying Customer Extra.
- 7. SME- Business Strategies • NORMALLY SME’s DO NOT HAVE A BUSINESS PLAN OR WRITTEN GOALS. • IT IS VERY IMPORTANT TO HAVE A BUSINESS PLAN IN PLACE AND WE MUST REVIEW IT FROM TIME TO TIME. • WE SHOULD HAVE :- – SHORT TERM BUSINESS PLAN & – LONG TERM BUSINESS PLAN
- 8. Some of Good Hr. Practices o Fair Evaluation System For Employees o Performance Management Feedback System o Safe, Healthy And Happy Workplace o Open Book Management Style o Performance Linked Bonuses o Knowledge Sharing o Highlight Performers o Open House Discussions And Feedback Mechanisms o Reward Ceremonies o Delight Employees With The Unexpected
- 10. Reasonable technological strength o Implementation of latest Technology over traditional o Straightening internal Technologies o Technology transfer from developed countries o Solid, Reliable System Infrastructure o Use of information technology(Example Card.)
- 11. World level marketing • Advertisement in industrial magazine (s) • Use of internet for marketing • Develop informative website • Participation in exhibitions / trade shows
- 13. Sourcing Strategies • Buy/make decision process • Effective procurement strategies • To Identify Opportunities for Savings • Qualifications of operating management • Internet Enabled E-Procurement
- 14. Financial Strategies • Authentic balance sheet Equity Low req. to invest • Strong financial Audit Mechanism break ment Less Less • Leverage by P.E ,Share Capital funds for value additi invest on • Company Valuation Low profit • Mergers and Acquisitions
- 15. IPR • IP Strategy should be an integral part of overall business strategy of an SME • The IP strategy of an SME influenced by its creative / innovative capacity, financial resources, field of technology, competitive environment etc. • Ignoring the IP system altogether, as is often the case for SSI,s is in itself an IP strategy and may eventually prove costly
- 16. IPR Advantage Trademarks are valuable business assets • Interbrand 2003 Annual Survey of the world’s most valuable global brands: Coca-Cola: 70.45 billion(378000 Cr.) US$ Microsoft : 65.17 billion US$ IBM: 51.71 US$.
- 17. Importance of Knowledge Pre- Industrialization Era (70,s-80,s) Industrialization Era The Knowledge Economy
- 18. Never Forget Survival of the Fittest
- 19. SME-Business Strategies • Moral of story is to capture values with Knowledge and modern techniques and work in smarter ways.
- 20. Thanks
Editor's Notes
- #13: Ban on knives due to security reson