Small and Medium Enterprises (SMEs) Analysis

This assignment provides a comprehensive analysis of Small and Medium Enterprises (SMEs), including their impact on small and medium enterprises in Mexico, external knowledge sourcing strategies, lean manufacturing implementation, business intelligence for order fulfillment management, commitment to sustainability, critical success factors for Lean Six Sigma, and profitability of SMEs firms listed in Indonesia Stock Exchange. The assignment also explores the relationships between managers' entrepreneurial perception and internationalization speed in SMEs, cash flow management and sustainability, local product brand image, and human resource management and organizational performance of SMEs in Nigeria.

Small and Medium Enterprise
Table of Contents

INTRODUCTION.......................................................................................................................................3
Overview of the Organization..................................................................................................................3
Interview Questions.................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Environmental factors faced by SME......................................................................................................3
Issues faced by SME...............................................................................................................................5
Strategic issues in SME management......................................................................................................6
Growth and development strategies adopted by SME.............................................................................6
Government Support scheme available to business.................................................................................8
CONCLUSION...........................................................................................................................................8
RECOMMENDATION...............................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
Small and medium enterprise (SME) refers to the business that has following
characteristics such as those company who has only 50 or less than employees & the amount of
turnover is less than £10 million is small company and those company who has 250 or less
than employees & the amount of turnover is less than £50 million is medium company
(Uwonda and Okello, 2015). There are so many companies who are working under the different
types of industries and running various types of business. SME is one of the big industries in
United Kingdom. It has played a significant role in the development of the economy and
enhances the GDP of the country.
Overview of the Organization
William Jet Tender Company House is a private limited Company which was
incorporated on 10th September 2004. Its headquarter is in United Kingdom (UK). This company
is still running. This business is building pleasure and sporting boats (WILLIAMS JET TENDERS
LIMITED, 2017).
Interview Questions
Q.1 What is the nature of your entrepreneurship venture?
Q.2 How did you start entrepreneurship?
Q.3 What will be your concept and different sources that will provide competitive advantage in
the market?
Q.4 What is current level of demand in the market?
Q.5 What are the challenges that will be faced by small business enterprise while running
business?
Q.6 What is the current growth and development strategy of Small medium enterprise?
Q.7 Any measures that have been taken for combating challenges in the market?

MAIN BODY
Environmental factors faced by SME
For the analysis of the impact of environmental factors (external factors) on the SME
industry, William Jet Tender Company House will have to do Pest analysis which is a strategic
tool used for the purpose of analyzing the impact of environmental factors on the industry which
in turn impact the company itself. It is an acronym of Political, Economic, Social and
Technological.
Pest analysis of the SME industry is as follows –
P – Political Factor – Political factor refers to that factor which cause due to government & its
related authorities and due to change in any kinds of political aspects. Example of political
factors are political conditions of the country, government parties, political stability, monetary
policy, taxation policy, foreign exchange policy and employment & labor policy etc.
There are various initiatives started by government to promote the SME growth and sales
of goods and services which lead benefits to the Company house also. But due to taxation policy,
company has to pay heavy tax which lead to negative impact on the profitability and growth of
the company house (Massaro and et.al., 2016).
E – Economic Factor – Economic factor refers to that factor which arises due to economic
aspects of the country. Example of economic factors is such as employment & unemployment
rate, interest rate, foreign exchange rate, inflation rate, demand & supply pattern, purchasing
power of the customers and economic cycle of the products & business etc.
Due to high interest rate, Company is not able to produce so many units of their goods &
services which impact their profitability. Due to development of SME industry, the
unemployment rate of the country reduces which lead to economic growth of the company
house.
S – Social Factor – Social factor refers to that factor which arises due to social structure of the
country (Saghebi and et.al., 2019). Demographic structure of the country, cultural aspects of the
population, family structure in the country, life style of the population and changing preferences
etc. are the example of social factors.

Due to changing preferences of the customers towards quality, Industry’s turnover rates
are slowly decreasing which lead company to face issue regarding low profitability. According to
the change in preferences, there will be a lot of changes in trends. By analyzing these trends,
Company can find its opportunities and earn revenue.
T – Technological Factor – Technological factor refers to that factors which arise due to
technological advancement or technological changes. Instance of technological factors are such
as emergencies technologies, research and development, information and communication
technologies (ICT), change in production process and innovation or invention in technologies
etc. (Abdullah, 2019).
Due to change in production process of large size businesses, their products and services’
qualities are improving which lead to decrease in the sales of products and services offered by
SME industry. This lead to decrease in turnover of the William Jet Tender Company House. Due
to innovation in information and communication technologies, Industry is able to easily doing
their marketing which lead in result of increase in their (company house’s) customer base and
market share.
Issues faced by SME
There are various issues which are facing by SME businesses. Following issues are
facing by William Jet Tender Company House which is as follows –
Lack of Managerial Skills – Due to lack of managerial skills in the employees and managers of
the company, they are not able to manage their activities properly which lead them to do a lot of
mistakes and not attain the organizational objectives on time which become constraint in the
profitability of the organization.
Lack of Financial Resources – Due to small and medium size, Company are not able to arrange
funding for the business. As due to small business, Investors or banks or lenders are not
interested in taking risk due to lack of assurance of profitability. This lead company to face lack
of financial resources which cause to low growth.
Lack of Marketing Efforts – Due to lack of proper training, management team, technologies and
required funds, Company is not able to promote their business by doing the marketing of

products and services. This lead to company not to able to achieve their organizational objectives
as well as not to accomplish their sales target.
Lack of Latest Technologies – Due to lack of financial and other funds, Company is not able to
adopt the latest technologies and change their production style which lead to increase the costs of
production and decrease the quality which decrease the business efficiency and profitability.
Also, government is providing them incentives and subsidiaries but it is not enough for buying
new technology or install new production machine in the business (Bruhn, Karlan and Schoar,
2018).
Lack of Skilled Employees – Due to lack of training programs and lack of job opportunities,
Company are not able to hire skilled employees. This lead to stoppage of new ideas coming into
organization as well as new methods of doing work. Skilled employees are most important asset
for the growth and development of the business (Zanuddin and Mukhtar, 2019).
Lack of R&D Activities – Due to small size, lack of financial resources and lack of research
methods, Company are not able to invest in research and development which lead company not
to able to know about the industry trends, market conditions and competitors’ strategies etc.
These all create an issue for the business not to able to achieve their goals and targets.
Low Customer Base – Lack of quality standards, brand image and technological advancement,
Company is not able to sell their products in the market where customers are becoming more
conscious about the quality of products rather than pricing of the products (Brunswicker and
Vanhaverbeke, 2015). These all lead company not to able to enhance their customer base.
Strategic issues in SME management
There are various strategic issues that will lead to affect the functioning of William Jet
Tender Company are as follows:
Strategic issues:-These issues are related to the company’s operation that will decrease the
goodwill of the company and will create problem for the company in the future course of action
(Okundaye, Fan and Dwyer, 2019). There are various factors that will lead to decrease growth of
William tender company. There are different perspectives that will affect strategic functioning of

the company in the future. These issues will provide various factors that will create problem for
it. Sometimes political factors that will have greater impact on William Jet Trends Company.
Strategic Competencies:- Every business is having competitors that will lead to create more
competition in the marketplace. As Small business enterprise is having different competitors that
will create more competition in the market so this is the biggest competency for the William Jet
Trends company that will create different perspective and creating different perspective that will
be bringing different various strategies that will create problem for the company in the future.
Organizational Change:- Changes in the organization will be strategic issues for the William
Jet Trends company. It is difficult for employees to accept changes in the company that will
create strategic problem for the company(Giaoutzi, Nijkamp and Storey, 2016). Changes can be
done in any form that will have a greater impact on company’s operation for the future course of
action. There are various factors that will create different aspects that will bring different
perspective in the company’s strategic decision that will create different segments in the
operation.
E-commerce products:- It is important nowadays to expand business in various range that will
help in gaining competitive advantage in the market. It is becoming a strategic issue for William
Jet Trend Company to sell its product online through digital marketing or by delivering them
products online that will provide different aspect to the customers. Therefore, above strategic
issues will create problem for the Small medium enterprise to expand its market operation in
different countries.
Growth and development strategies adopted by SME
For the growth of SME, William Jet Trend Company house will adopt ansoff matrix
strategy. This matrix consists of four quadrants such as Market penetration, product
development, market development and diversification. This matrix will help in growth for the
development of product in the market. There is various aspects that will create different aspects
that will bring more opportunities for the future course of action. If William Jet Trend Company
House will adopt this strategy that will help company for future use in company. This will help
in providing different growth perspective that will create more expansion in the future. There are

different perspective that will help in bringing different targets that will help in achieving
objectives and goals of the company (Godinho Filho, Ganga and Gunasekaran, 2016).
Market Development:- This strategy will help in providing expansion of existing products in
the market in the future. There are various factors that will bring new opportunities. As William
Jet Trend Company House can develop its product development in the new market. It is selling
its existing product in the new market that will bring various strategies that will bring more
opportunities for the future course of action. As market is providing different products that will
bring different products that will different by providing different competencies into the company.
Product Development:- In this growth matrix William Jet Trend Company House is selling its
product into existing market that will create competitive advantage in the market. There are
various factors that will affect functioning of the company such as political, social, economical
and technological factors that will have greater impact on the company’s operation. This matrix
will help in providing different aspect that will bring different opportunities for the future.
For the development of SME, William Jet Tender Company House can adopt Expansion
Strategy. This strategy is adopted by the companies when they wanted to grow more as compare
to the past achievement. When a firm wants to develop its business operations in the terms of
customers, then firm is said to be adoption of Expansion Strategy. There are various five
expansion strategies which Company House can adopt for the purpose of development of its
SME business (Ho and et. al., 2019). These five strategies are as follows –
Expansion through Concentration – According to this strategy, Company can develop its
business by expanding into new product line which can be fulfill the needs of customers in the
targeted market. Currently company house is providing pleasure and sporting boats. In order to
develop its business, Company house can enter into the manufacturing of the parts of vehicles.
Expansion through Diversification – According to this strategy, Company can develop its
business by expanding by entering into new markets along with new products (Ogunyomi and
Bruning, 2016). In case of William Jet Tender Company House, Company can enter into new
market like market of developing countries along with new product line such as manufacturing
the parts of vehicles.

Expansion through Integration – According to this strategy, Company can develop its business
by combining one or more business activities. In another words, Company can gain control over
its business activities. The best example is that Company house can move up or down to its value
chain in order to gain control over it (Jansson and et.al., 2017). This will help company to
become expert in core as well as other business activities which is good for the company in the
context of development.
Expansion through Cooperation – In this strategy, Company enters into an agreement with
another business who is working under the same industry. Thus, these both companies operate
their business together in order to develop their business for the purpose of gain market share.
William Jet Tender Company House can enter into another SME with whom they can run its
business.
Expansion through Internationalization – In this strategy, Company wants to do develop
themselves by entering into the global market which is considered to be beyond the national
market. It is least strategy, SME business can adopts. In case of William Jet Tender Company
House, Company can expand its business and try to sell their products at the global level (Lande,
Shrivastava and Seth, 2016).
Government Support scheme available to business
In United Kingdom there are various schemes that is being provided by government to
support Small medium enterprise are as follows:
Funding:- Government of UK is providing funding scheme to the small medium enterprise
business that will help them in expanding its market in the future course of action. There are
various techniques that will be implemented by UK government in providing different
perspective that will bring different challenges that will create more competition in the market.
These schemes will provide help to the people who are running their small business enterprise
that will create various sectors that more suitable for the William Jet Trend Company House.
Tax Relief:- This scheme will help in providing different perspective that will bring more
opportunities that will create many aspects for future for William Jet Trend Company House.
There are various factors that will be creating different segments that will bring more
opportunities for the future course of action (Maarof and Mahmud, 2016). There are different

schemes that will help people in UK that will help them in providing different facilities including
tax free products that will help in attracting more customers towards company.
Innovation and commercialization:- This scheme will provide technological changes in the
company that will bring more opportunities that will create different perspective for the future.
As these will help in providing various segments that will create different technology into
company for the future course of action. There are various segment that will be providing
different segments for the future changes in technological concept in William Jet Trend
Company House. There are different perspective that will be more beneficial for the company in
future. There are different concepts that will be using by William Jet Trend Company House
(Margaretha and Supartika, 2016).
CONCLUSION
From the above study it can be concluded that small medium enterprise in UK is
considered to be backbone of economy that will be contributing different perspective that will be
providing different segments that will be giving to the economy. As Small medium enterprise is
providing different aspect that will bring opportunities for the future that will bring various
opportunities that will be providing different aspect that will be creating various segments n the
company for future in the company. SMEs are contributing important segment in the economy
for growth and expansion in the future. There are various approaches that will bring different
innovative ideas that will help in getting involved into different segments that are more
beneficial for the future. Development of economy will be increasing day by day that will help in
expanding different areas that will be helpful for the future course of action. There are various
segments that will create different sectors for the company. There are various factors that include
political, environment, social and technological factors that will bring different perspective that
will bring opportunities for the future course of action. There are different factors that will be
providing aspect that will help in various aspect that will be helpful for the future.
RECOMMENDATION
It will be recommended from the above study that Small business enterprise that will be
providing different aspects that will helpful for the future. There are various aspects that will

increase different concepts that will provide different concepts that will be provide different
segments that will be creating as there are various forms that will be creating different segments
that different various aspects that will be helpful for the company for expansion. It can expand its
market that will be helpful as it bring new opportunities that will be helpful for the future.
Technological changes will help in providing different perspective that will be creating different
creation for the company. Ansoff matrix will be implemented by William Jet Trend Company
House that will sell its product in the marketplace. It will be recommended that there are
different strategic issues that will have greater impact on the company’s operation. There are
various segments that will be more beneficial for the future. For SME there are big challenges in
the market to sustain in the market for future course of action. It can be recommended to SME to
expand its business so that it will help in attracting more customers towards the company. It is
important to expand its strategies n the market for providing various measures that will help in
solving problem and issue of SME business. For utilization of resources that will bring more
opportunities for the company.

REFERENCES
Books and Journal
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enterprises (SMEs): External knowledge sourcing strategies and internal
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Giaoutzi, M., Nijkamp, P. and Storey, D.J., 2016. Small and medium size enterprises and
regional development. Routledge.
Godinho Filho, M., Ganga, G.M.D. and Gunasekaran, A., 2016. Lean manufacturing in Brazilian
small and medium enterprises: implementation and effect on
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Ho, D.C and et. al., 2019. Business intelligence for order fulfilment management in small and
medium enterprises. International Journal of Internet Manufacturing and
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Jansson, J. and et.al., 2017. Commitment to sustainability in small and medium‐sized
enterprises: The influence of strategic orientations and management
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Lande, M., Shrivastava, R.L. and Seth, D., 2016. Critical success factors for Lean Six Sigma in
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Maarof, M.G. and Mahmud, F., 2016. A review of contributing factors and challenges in
implementing kaizen in small and medium enterprises. Procedia Economics and
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Margaretha, F. and Supartika, N., 2016. Factors affecting profitability of small medium
enterprises (SMEs) firm listed in Indonesia Stock Exchange. Journal of
Economics, Business and Management. 4(2). pp.132-137.
Massaro, M.,and et.al., 2016. Knowledge management in small and medium enterprises: a
structured literature review. Journal of Knowledge Management.20(2). pp.258-
291.

Ogunyomi, P. and Bruning, N.S., 2016. Human resource management and organizational
performance of small and medium enterprises (SMEs) in Nigeria. The
International Journal of Human Resource Management. 27(6). pp.612-634.
Okundaye, K., Fan, S.K. and Dwyer, R.J., 2019. Impact of information and communication
technology in Nigerian small-to medium-sized enterprises. Journal of Economics,
Finance and Administrative Science. 24(47). pp.29-46.
Saghebi, S.,and et.al., 2019. Relationships of managers’ entrepreneurial perception and
internationalization speed in small and medium-sized enterprises (SMEs). Journal
of Global Entrepreneurship Research. 9(1). p.28.
Uwonda, G. and Okello, N., 2015. Cash flow management and sustainability of small medium
enterprises (SMEs) in Northern Uganda. International Journal of Social Science
and Economics Invention. 1(03). pp.153-to.
Zanuddin, H. and Mukhtar, N., 2019. Local Product Brand Image: A Case Study of Small and
Medium Enterprises in Muar, Johor. Int. J Sup. Chain. Mgt Vol. 8(1). p.183.
Online
WILLIAMS JET TENDERS LIMITED. 2017. [ONLINE]. Available through: <
https://beta.companieshouse.gov.uk/company/05227633>