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.
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
Build a strong Corporate cultureo Culture determines the overall “feel” of the organization, although it may vary across different segments of the organizationo Culture is a powerful force that can shape the firm’s overall effectiveness and long-term success.o Growth by Professional Approacho 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 importanto Develop a clear idea of what kind of culture you want to create
Build a strong Corporate cultureo Adopt new slogans, stories, ceremonies, and purposely break with traditiono Develop a written code of ethicso Stay current with internal and external information, reports, etc.o Communicate regularly with colleagues, subordinates and customerso External and internal ineleganceo Bring in outsiders to important managerial positions
Companies with strong Cultures• Culture is very difficult to Build but it helpsOrganizations in many ways like .buildingbrands, retaining peoples, satisfying CustomerExtra.
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
Some of Good Hr. Practiceso Fair Evaluation System For Employeeso Performance Management Feedback Systemo Safe, Healthy And Happy Workplaceo Open Book Management Styleo Performance Linked Bonuseso Knowledge Sharingo Highlight Performerso Open House Discussions And Feedback Mechanismso Reward Ceremonieso Delight Employees With The Unexpected
Reasonable technological strengtho Implementation of latest Technology over traditionalo Straightening internal Technologieso Technology transfer from developed countrieso Solid, Reliable System Infrastructureo Use of information technology(Example Card.)
World level marketing• Advertisement in industrial magazine (s)• Use of internet for marketing• Develop informative website• Participation in exhibitions / trade shows
Sourcing Strategies• Buy/make decision process• Effective procurement strategies• To Identify Opportunities for Savings• Qualifications of operating management• Internet Enabled E-Procurement
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
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
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$.
Importance of KnowledgePre- Industrialization Era (70,s-80,s) Industrialization Era The Knowledge Economy