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 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

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

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.

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. 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

Professionalism without Accountability

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.)

World level marketing

• Advertisement in industrial magazine (s)

• Use of internet for marketing

• Develop informative website

• Participation in exhibitions / trade shows

VICTORINOX story

before

&after 9x11

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

• Strong financial Audit Mechanism

• Leverage by P.E ,Share Capital

• Company Valuation

• Mergers and Acquisitions

Lowinvestment

Less value additi

on

Low profit

Less funds

for invest

Equity req. to break

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

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$.

IPR Advantage

Importance of Knowledge

Pre- Industrialization Era (70,s-80,s) Industrialization Era

The Knowledge Economy

Never Forget Survival

of the Fittest

SME-Business Strategies

• Moral of story is to capture values with Knowledge and

modern techniques and work in smarter ways.

Thanks