Managing Small and Medium Seized Enterprises MSME

This report provides an overview of Marshfield pvt Ltd, a bakery manufacturer organization of UK, and its growth and development strategies. It analyzes the impact of environmental factors and government support measures on SMEs. The report also provides recommendations for the company's future growth and development.

MANAGING SMALL AND
MEDIUM SIZED
ENTERPRISES MSME

EXECUTIVE SUMMARY
In the chapter it has been summarized that how Marshfield pvt limited which is a bakery
manufacturer organization of UK is getting operated. The report addressed various elements like
the environmental factors and their impacts on the organization. How the government is
approaching to such SMEs. At the end of the report a few suggestions are also given to the
company for its future growth and development.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................5
FINDINGS.......................................................................................................................................5
The nature of the entrepreneur-....................................................................................................5
The start up processes-.................................................................................................................5
The business concept and any sources of competitive advantage-..............................................6
The current level of demand and the competitive environment-.................................................6
The growth and development of the business-............................................................................7
The challenges of man ageing and running the business-............................................................8
The SMEs current growth and development strategy-................................................................9
Government support measures to help the business overcome the challenges faced-.................9
CONCLUSION................................................................................................................................9
RECOMMENDATIONS...............................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business with less than 250 employees are known as middle-sized organization as per the
laws of the nation (Oluwafemi, Mitchelmore and Nikolopoulos, 2020.) The report will be taking
Marshfield pvt Ltd having bakery business and operating with 84 employees for serving the
purpose. For the company the report will be presenting an over view of the nature, process,
business concept, current level, growth and development policy which are being practised by the
company in order to cope up the market threats and also to enhance its capacity in the market,
environmental factors of the company, Also such recommendations will be extended which may
help it for future growth and development and encounter competition.
FINDINGS
The nature of the entrepreneur-
The entrepreneur is involved in Bakery business, which is located in UK known as
Marshfield bakery limited. It is a manufacturing industry which is offering bakery products to its
customers. It includes bread, rolls, pastries, cookies and other such items (Sinkovics, Kurt and
Sinkovics, 2018)
The company is a subsidiary of Graze Ltd. It was started by Paul and Lynne White from a small
village, it was their first business they started on small scale and was even not offering such a
huge amount of bakery products, now the organisation is a well known entity and serving the
people of the nation with bunch of bakery products. Mainly consists cakes, cookies and hand
made bakery items.
Nature of the business-
Marshfield bakery limited.
The business is a small and middle-sized bakery business which is involved in manufacturing
work and in UK it is providing its bakery products to the customers by its stores. The
organisation is involved in hand made bakery items in the market. Having a small size of
employees and generating huge profit in the bakery line (Gkorou, 2018.)

The start up processes-
It is a family owned business which was started in 1984 by Paul and Lynne white in their
farmhouse. Initially there were no such advanced equipments or manpower they started it their
self with low capacity. After experiencing the market it started operating on wider scale and in
the year 2019 it increased its number of employees with 40 percent and now the most
competitive business in the nation.
It was a family business with the least amount of funds so earlier it was getting operated
by just family members with the help of a few employees with their owns funds.
In the company currently 82 employees are working in bakery manufacturing. (Eunice
Abdul, 2018.) They all are there in UK. Since the organization is mainly driven by smart use of
technological equipments which is reducing requirement of placing more man power.
The size of the company by turn over is quite big it was having over 5.1 million turnover
in they year 2019, the sales was 6.75 million dollars (Jayawickrama, 2019)
The business is facing now challenges since in the market the competition in the bakery
business is growing quickly and other organizations like John Monaghan Ltd, William Joseph
led, Natuzzi services Ltd etc. are also placing tough competition before the entity.
The business concept and any sources of competitive advantage-
The main idea behind the business is to provide bakery products to its customers on
cheap prices with higher quality. The business is located in Chippenham. UK. So majority of the
customers are also from the same area of locality. The company is aiming to grab huge market
share in the competitive sector.
The ability of understanding the market demands and trends, then manufacturing the
products best fit to the customers this ability of the organization is making it stand out in the
market. Further it offers great quality handmade cakes, biscuits of multiple taste, snack bars, and
other such bakery products with ample amount flavours (Agnese, Rizzo and Vento, 2018)
Over the time it has opened its multiple sites for offering better services to the customers.
It is graded A by BRC accreditation. Using qualitatively good and finest ingredients, and with
the help of machinery but all the products are hand mad makes it special among the customers. It
not only separates it from its competitors but also make it stand out in the market which raises its
growth.

The current level of demand and the competitive environment-
Porter's five forces for Marshfield Bakery limited-
Five forces
Competition in the
industry
At present the industry is going hectic. The demand of bakery products is
growing quickly. Along with it in the market there are number of such
producers with the same products. They are also offering bakery products
even on cheaper prices.
Potential of new
entrants into the
industry
In the market such competitors like Kenton Instore limited, Magnetic
solutions Ltd, Natuzzi ltd etc. they are having great potential since their
market share is yet to achieve its apex level, so they may offer tough
competition. So the market is a bit competitive for new entrants (Hampton,
2019)
Power of suppliers After failure of supply chain management the industry is facing problem of
row materials. But the power of suppliers for the company is great due to its
well diversified policy. Global failure of supply chain may place bigger
challenges so for encountering it the organization may go for long term
supply strategies.
Power of
customers
In UK the market is facing instability from so long specially after the
pandemics which affected power capacity of the customers. Yet the
company is having its different customers base which keeps it powerful in
term of customer attractions (Ameer, 2021)
Threat of
substitute products
The market may face this treat. After pandemics people are more conscious
about food items so if such products get introduced which offers better
health security than it would be a severe threat to the organization.
Current sales level and competitors- In the year 2019 the company disclosed gross prod-it
of 1 million euros, and the cash in hands was over 1 million euros. Compares to previous year
due to the pandemics the turnover fell down -33.76%. And gross profit came down by -37%.
Turn over of the company was around 6 million euros in 2018 and in 2019 it was around 5

million euros. The competition is also growing with new entrants in the market and other bakery
companies are also growing their operations.
The growth and development of the business-
The business was started as a just family business which was offering a few bakery
products, since it was having one key principle of the business to provide hand made bakery
items with higher quality. This policy has given it a sharp growth, now in the market it is having
good position in bakery manufacturing sector. The turn over in more than 5 million euros. In
term of employees the business is very much stable due to the skilled working force it is not
having need for more hands on the work. But the turn over of the company is growing rapidly.
Despite having key competitors and other retailers are also providing same type of bakery
products on even cheaper cost yet Marshfield bakery Ltd is not only notching up higher sales but
also growing faster than the competitors.
It is sharing a wide market share since the key competitors are not as expanded as it is. If
just see the number of employees then Natuzzi services Ltd is having 49 employees and
Marshfield have 84, William joseph Ltd have 7, Kentorn Ltd 23 so the figures are self-sufficient
to disclose the market share of the company (Eze, 2019)
The challenges of man ageing and running the business-
PEST analysis for Marshfield Ltd
components
Political The approach of the government is getting tougher. After 2016 when Brexit
came into domain, the market of EU got shirked. Food regulations, tax on
manufacturing industries are key barriers. Manufacturing industry is facing
issues of strict norms of the government which can be a bigger threat for the
organization.
Economical The economy of UK is fluctuating with a heavy rate. The unstable market
may impact the operations of Marshfield Ltd. Further the power of purchase
of customers also got impacted after pandemics and the economical
instability can impact the business in severer manner.
Social Approach of people is also getting changed after specially pandemics. But as

the company offers its products made with the best quality ingredients may
lead it to be first choice for the customers.
Technological Organization is making bakery products with hands. At the same time other
competitors are using heavy machinery so it may bring difference in the
capacity of meeting rapid demand.
The SMEs current growth and development strategy-
In the market there are so many such bakery companies are operating. So for avoiding
competition and marketing up higher growth the Marshfield is using different policy. In the
market other bakery companies are having their approach to hike their sales as much as possible
but the entity pays attention on keeping its image as a good quality delivering bakery must not be
disrupted. The company believes on highly efficient work force (Coudounaris, 2018) and also
using policy of hand made cakes.
For development the company has increased its number of employees in 2019 by 40%
(Brown, 2018) so can meet the skyrocketing demand of its products. Also, it is having owns
website so through digital channel can contact the customhouse and help them in selection then
placing orders. In last couple of years Marshfield has hired such good management personnels so
can surge the business management standards for paving the way of growth.
Government support measures to help the business overcome the challenges faced-
The is regularly working with this regard. In 2019, they have supported using bakery
enzymes so can meet the customers demand of healthy and clean products. In covid-19 the
industry faced problem of insufficient supply of row material then government eased its norms to
help them (Stawiarska, 2021.)
The government may also go for easier compliances for the industry so can make their
operations easier. Like the loan guarantee scheme of UK government was easier with this regard.
After the hit of pandemics the market was brutally affected and government of UK also eased its
policies for such small and medium-sized organization.
For such small or medium-sized organization the government has taken such initiatives like in
2022 they allotted more 150 million euros for innovative businesses who want to try something

new. This is one of the best move by the government and would also motivate such small or
medium-sized organization to go for something new and enhancement of their operations.
CONCLUSION
From the report above it can be summarized that the organization is performing well in
the bakery sector. The report evaluated various factors of Marshfield pvt Ltd. Report analysed all
key information pertain to the organization like the nature of the business, size, process, growth
and development related policies and support from the government to the industry and at for
understanding various environmental factors PEST analysis and Porter's five forces were also
carried out and some recommendations were also extended so can hike more in the market.
RECOMMENDATIONS
The competition of the market is growing faster so the organization is recommended to
explore new markets and may also go for collaboration since global entitles are also making
entry in the same sectors which may be a terrible thing for it.
Further after the hit of Pandemic the market is facing problems in many ways. The social
dynamics are also changed, people are more conscious about their health so company may
convince them for best quality and healthy bakery products it will be giving it upper hand in the
market.
The government has already announced financial support or loan for innovative
businesses so with this regard the organization is suggested to go for something innovative in
term of product or perhaps process so can take advantage of such policies too. Separate 150
million euros are allocated in the budget of 2022 (Al-Najjar, 2018)
The taxation policy of the government is getting tougher so this is just a persuasive
suggestion to the company to open up its business on such sites where can take advantages of tax
reductions or exemptions too. Like special economic zones or such underdeveloped areas may be
the best choice for conducting operations.
The strategy of the organization may also be shuffled a bit. Like all other key competitors
are using digital platforms as their key tool for marketing but Marshfield Ltd is still legging

behind and not using with proper capacity so strategically may for more digitalization of the
business.

REFERENCES
Books and journals-
Agnese, P., Rizzo, M. and Vento, G. A., 2018. SMEs finance and bankruptcies: The role of
credit guarantee schemes in the UK. Journal of Applied Finance and Banking. 8(3).
pp.1-16.
Al-Najjar, B., 2018. Corporate governance and audit features: SMEs evidence. Journal of Small
Business and Enterprise Development.
Ameer, S., 2021. The Influence of CEO Characteristics on Firm Risk-taking: Evidence from UK
SMEs. Estudios de economía aplicada. 39(8). p.16.
Brown, R., 2018. What happens if the rules change? The impact of brexit on the future strategic
intentions of UK SMEs. The Impact of Brexit on the Future Strategic Intentions of UK
SMEs (March 1, 2018).
Coudounaris, D. N., 2018. Typologies of internationalisation pathways of SMEs: what is
new?. Review of International Business and Strategy.
Eunice Abdul, O., 2018. Entrepreneurial skills and growth of Small and Medium Enterprise
(SMEs): A comparative analysis of Nigerian entrepreneurs and Minority entrepreneurs
in the UK.
Eze, S. C., 2019. Determinants of perceived information need for emerging ICT adoption: A
study of UK small service businesses. The Bottom Line.
Gkorou, S., 2018. IFRS for SMEs in developing and developed economies: Early evidence from
Albania and the UK (Doctoral dissertation, Brunel University London).
Hampton, S., 2019. Making sense of energy management practice: Reflections on providing low
carbon support to three SMEs in the UK. Energy Efficiency. 12(6). pp.1473-1490.
Jayawickrama, U., 2019. Knowledge retention in ERP implementations: the context of UK
SMEs. Production Planning & Control. 30(10-12). pp.1032-1047.
Oluwafemi, T. B., Mitchelmore, S. and Nikolopoulos, K., 2020. Leading innovation: Empirical
evidence for ambidextrous leadership from UK high-tech SMEs. Journal of Business
Research. 119. pp.195-208.
Sinkovics, R. R., Kurt, Y. and Sinkovics, N., 2018. The effect of matching on perceived export
barriers and performance in an era of globalization discontents: Empirical evidence from
UK SMEs. International Business Review. 27(5). pp.1065-1079.
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Stawiarska, E., 2021. Selected support programmes for the internationalisation of SMES (based
on the example of the UK). Zeszyty Naukowe. Organizacja i Zarządzanie/Politechnika
Śląska.
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