Strategy Development for Small and Medium Enterprises (SMEs)

Small and Medium
Enterprises (SMEs)
Strategy Development

EXECUTIVE SUMMARY
The present scenario of business environment shows the importance of small and
medium enterprises in the market. It is identified that the contribution of small and medium
organizations is increasing day by day. This shows that they are doing very well and getting a
successful business. It enables all small people to start their own business with minimum
funds. This helps in providing employment opportunities, increasing in income level, self
reliant, etc. So that's why now countries are focusing on developing more small and medium
enterprises. But it is not very easy task. For the success and sustainable growth of small and
medium organizations, it becomes necessary for every enterprise that they should formulated
strategy in order to produce best quality products and satisfy their consumers.

Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
INTRODUCTION......................................................................................................................4
MAIN BODY.............................................................................................................................4
STRATEGIC ANALYSIS.........................................................................................................4
External Analysis - PESTEL..................................................................................................5
Industry competitiveness analysis - Porter’s Five Forces Model...........................................7
Internal Analysis -Value Chain Analysis...............................................................................8
SWOT....................................................................................................................................9
STRATEGIC CHOICES..........................................................................................................10
Stakeholder Analysis – Mendelow’s Matrix........................................................................10
Competitive Strategic – Porter’s Generic Strategies............................................................11
Different Strategic Direction - Ansoff’s Matrix...................................................................12
SFA......................................................................................................................................12
STRATEGIC ACTION............................................................................................................12
Implementation of best suitable strategy..............................................................................12
Time frame/scale with actions.............................................................................................12
Outcomes from the strategic implementation......................................................................12
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13
Books and Journals:.............................................................................................................13

INTRODUCTION
Small and medium enterprises are the organisations which have a turnover not more
than £6.5 million, according to the section of 382 and 465 in Companies Act, 2006 in UK. A
balance sheet total of small and medium enterprises should not be more than £3.26 million.
Small and medium enterprises are not allowing having employees more than 50 (Yuntriani
and Dewi, 2020). It is identified that small and medium enterprises now plays a very crucial
role in the trading sector of UK. They just not well perform in local market but also show a
great growth in global market. Small and medium enterprises rise day by day that's why it
shows a great contribution in the economy of UK. Due to their contribution, it is identified
that the economy growth is increasing very fast. It can be clearly show from the turnover of
UK business i.e. £726,855 which is collected from small and medium enterprises. The reason
of increasing the number of small and medium enterprises is that they provide opportunity to
small or poor person which can start their own business with minimum funds. This is the
reason that why every country is focusing on development of small and medium enterprises.
In this context, Oak cash and carry limited is undertaken for showing the importance of small
and medium enterprises. Oak cash and carry limited is a small organisation that deals in
wholesaling of groceries. They have approximate 30 employees and generating average
revenue $5.13 million.
MAIN BODY
STRATEGIC ANALYSIS
Oak cash and carry limited is a small size organisation which runs their business very
well. It becomes possible when they are thinking about strategic analysis. Strategic analysis is
the process where organisation tries to understand the market so that they can make strategies
accordingly. Business environment is very competitive and complex (Rhommadhonni and
Dhewanto, 2019). It is filled with many uncertainties which become risk for small and
medium organisation. This is a reason that why Oak cash and carry limited give focus on
strategic analysis. For that purpose they need to analyse external environment as well as
internal environment. They also consider the analysis of industry competitiveness. So that
they can come on their conclusion that stated what to do for the growth and success of
organisation. In addition to this, Oak cash and carry limited found some important tools and