Global Challenges faced by Small and Medium Business Enterprise : Research Report

How can SMEs develop themselves as a brand
in the international market?
A Case Study of Surgical Industry in Sialkot
(Pakistan)

ACKNOWLEDGEMENT
For the accomplishment of the present dissertation, I would like to sincerely express sincere
gratitude to my mentor who has provided me sufficient knowledge and greater support. Further, I
would like to thank my friends, colleagues and family members who have guided me at every
stage while conducting dissertation. Through their support, I was able to complete my thesis with
effectiveness and in an accurate manner. Lastly, in the series, I would also like to state special
thanks to my team members who have provided me with assistance in collecting data and in
analysing it further.

ABSTRACT
This research is about the global challenges that are faced by the small and medium
business enterprise. At the international level, there are many issues faced by the SME to
establish their brand image, gather finance and target markets. However, these companies are
effectively helping in making the contribution to the country's economy and employment such as
contribution for society – employment, provision of services, cultural issues but when it comes to
the international market and establishing their brand image they lack in due to the unavailability
of the products and services. The study's main aim is “To analyse the ways in which SME's can
develop themselves as a brand in the international market- study on Surgical instrument
manufacturer in Sialkot (Pakistan) to UK". In the report different branding-aspects, models and
business strategies are explained which help the small companies to expand theirs at the global
level.
In the present study, different methodological techniques have been used which are
necessary to carry out this research are mentioned. In the current research, primary research
strategy, qualitative methods, inductive approach and in-depth interview are/were conducted on
analysing the issues being faced by the small and medium sized organisations . Major findings
were that it has been based on the interview, it has been examined that the company is planning
to open an outlet to provide other sales product to the customers. While analysing the data it has
been investigated that the vision of the establishment is to grow globally along with following
the corporate social responsibility. Another analysis shows that the authorities are more
interested in business value rather than in the development of brand which is impacting the
overall operations of branding. Moreover, it can be analysed from the interview that the
strategies that were adopted by the Surgical instrument manufacturer in Sialkot can make them
successful and assist them to establish better brand and market image at global level. The study
concludes with some recommendation that can assist the SME to develop at the international
level.

TABLE OF CONTENTS
Chapter 1- INTRODUCTION ........................................................................................................1
1.1 Background...........................................................................................................................1
1.2 Rationale of the study............................................................................................................2
1.3 Significance of the study.......................................................................................................3
1.4 Aims and Objectives.............................................................................................................3
Research questions......................................................................................................................4
1.5 Analysis and framework.......................................................................................................4
1.6 Structures of the Thesis.........................................................................................................6
CHAPTER 2- LITERATURE REVIEW.........................................................................................7
2.1 Introduction...........................................................................................................................7
2.2 Theoretical framework..........................................................................................................7
2.3 Performance of SME's in the international market...............................................................8
2.4 Developing strategies and standards for expansion and becoming the international brand.
...................................................................................................................................................11
2.5 Challenges faced by SME's in developing themselves as the brand in the international
market. ......................................................................................................................................12
2.6 Ways that could be used by SME's to develop themselves as a brand...............................14
2.7 Research Gap......................................................................................................................18
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................20
3.1 Introduction.........................................................................................................................20
3.2 Research Approach.............................................................................................................20
3.3 Research Philosophy...........................................................................................................22
3.4 Research Design..................................................................................................................24
3.5 Research type......................................................................................................................25
3.6 Data Collection Method......................................................................................................26
3.7 Sampling Method................................................................................................................27
3.8 Research Process.................................................................................................................29
3.9 Type of Data Analysis Plan.................................................................................................30
3.10 Reliability and Validity.....................................................................................................31
3.11 Ethical Consideration........................................................................................................32

3.12 Research Limitations.........................................................................................................34
CHAPTER 4 : DATA ANALYSIS AND FINDINGS..................................................................36
4.1 Introduction.........................................................................................................................36
4.2 Thematic analysis................................................................................................................36
CHAPTER 5 : CONCLUSION AND RECOMMENDATIONS..................................................56
5.1 Introduction.........................................................................................................................56
5.2 CONCLUSION...................................................................................................................56
5.3 Recommendations...............................................................................................................60
REFERENCES .............................................................................................................................76

Chapter 1- INTRODUCTION
1.1 Background
Globalization is procedure that entity and other firms develop global influence or when
they start operating on a worldwide level. It is offering the platform of growth to the existing
Small and medium enterprise (SME's) and doors of opportunities have been opened for them
such as innovation, technological advancement, profit and global image. They can promote
economic growth and development and maintain their financial stability in more effective and
better way. SME's doing business in any nation such as the Australia, Canada, Pakistan, UK, US,
Bangladesh, China has an option for achieving higher expansion in the world-trade and
contributing towards the development of the world economy. As per Laufs and Schwens, (2014),
they contribute through providing employment, revenue growth, innovation, and increases the
trading in the country. These enterprises have the potential to build themselves in a positive
manner for ensuring the expansion at global level on the non-discriminatory or uncategorised
basis (Ciravegna, et al., 2014). Cowling, Liu, and Zhang, (2015) stated that UK small business in
2003 numbered 23 million, provided half of private sector employment along with produces to
the half of the private sector.
Through SME's support, expansion and growth of the economy can be seen in the
countries and development of the nation can also be ensured. Globalization and modern
technologies have increased in past few years and it has given enhancement in international trade
and investment activities. SME's showing higher growth potential requires a market where they
can achieve higher growth and success (Laufs and Schwens, 2014). Currently, the presence of
SME's is limited in the international market and they are growing at ample amount.
It is critical that their growth should be enhanced and improved and so that they could be
made economically stronger. Their level of international investment also needs to be developed
and enhanced so that these SME's can maximize their cross-border activities. However,
expansion at the international level requires huge amount of investment, marketing strategies,
customers perspective, and effective promotional activities. It is imperative that innovative
approaches should be used by them for developing themselves as the brands in international
markets. Competition is increasing at a faster rate on the global platform and it makes it
challenging for the organizations to achieve the sustainable and competitive advantage in the
market. There are countless or enormous brands available at the international level. In order to be
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best and established brand they have to face various challenges. To achieve such position they
have, brand-management, brand-loyalty and brand-strategies that assist SME's to make better
approach and face those challenges. The present dissertation explores various tools and
techniques that could be used by SME's for developing themselves as a brand in the international
market. Various methods that could be used by small enterprises for increasing their global
presence in the market are identified in the present study.
SMEs make various contributions to the economy but when it comes to the international
market they are facing more consequences and problems. There are numerous challenges faced
by the entrepreneur while expanding their businesses. Some of the issues faced by SME are
funding, finance, poor management, and inadequate training (Bondinuba, 2012). Due to this,
there was the high result of the failure in SME business. The study investigates various aspects
which affect them at international level. Further, it details how they can become the branded
entity and what strategies and planning are required to raise the level in the market at any place.
The report is based on the particular company Surgical instrument manufacturer in Sialkot which
is developing strategies to expand its business in UK. Sialkot is the largest centre of surgical
instruments manufacture globally and contributes to business turnover of more than US$22M .
However, they require improvement in their working conditions, technology and sector structure
to expand at a global level and establish as better brand.
1.2 Rationale of the study
Globalization has ushered new opportunities for the small ventures and with this
challenge for them also have been increased. The major objective of the study is to explore the
ways that could be used by SME's for growing a brand in the international market. This study is
conducted for identifying the ways that could be used by SMEs for developing themselves as a
brand in the international market area. This will help them to increase their market value, profit
level and brand image in other countries and will act as international market penetration for
these companies. Further, it will increase the trade between the countries. Though, there are
opportunities to such companies in the international market however, sometimes they are
grabbed by the large enterprise as they have higher financial and market support. For illustration,
in order to brand Surgical instrument manufacturer in Pakistan requires financial support, ability
to face business challenge, market assessment, innovation tracking and industrial intelligence to
achieve global position. Besides this, as they have minimum employees so it is difficult to them
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to generate revenue and profit for business expansion. Along with this, challenges are faced by
small enterprises in developing themselves as a brand and through this they ensure long-term
economic growth in the market. They also face issues for strengthening their presence at the
international platform.
The emphasis on the different countries and enterprise performance in those areas are
reflected in the research. Moreover, factors, issues, and methods are used to evaluate the research
so that depth analysis of the research can be done. In many countries due to micro and macro
environmental factors companies are unable to expand and make their global position such as
communication level, brand message and consistency. It has been the main reason why many
SMEs are unable to make their brand internationally. Priority on the human capital,
environmental factors, and economic sustainability must be given by the SME so that they can
make successful changes in the brand level. Therefore, above factors must be considered and
focus should be there on how these companies can make an international global presence.
1.3 Significance of the study
Outcomes of the study will help for exploring various ways that could be used by
SME for developing themselves as a brand in the international market. Findings of the study can
be used by managers and owners of the SME's for developing themselves as a brand at
international market. Further, the outcomes and findings gained from the study will also help to
the future scholars for carrying out research on the similar topics. Gaps in the literature can be
filled in better and effective way. Ways which will be explored in the present research will help
the SME's to develop themselves. The ideas suggested in the study will also support in the future
studies which are related to this topic. It will focus on the economic issues, insights, and
awareness so that additional information can be provided in the research. Moreover, through the
research, the researcher wants to contribute to society by providing the value and ethics based
services. For the company, Surgical instrument manufacturer, there are various advantages that
can be seen. It can effectively communicate at greater level, brand message can be shown, they
can use the appropriate tone to make their brand image. Other than this, demographic,
purchasing ability, job outlook, governmental, economical-social stability, and economic growth
projections in the region can be achieved by the company. All these can be achieved using the
international marketing penetration strategies.
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