Sme's in india are ppassing through a crusial time,are on cross road its very important to Nurture SME,s This presenttation was given during CICU-Young Business leader forum in Ludhiana

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

9. Professionalism without Accountability

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

12. VICTORINOX story
before
&after 9x11

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