Designing and Implementing SME Business Strategy

DESIGNING AND
IMPLEMENTING SME
BUSINESS STRATEGY

Table of Contents
INTRODUCTION....................................................................................................................3
PART- 1.....................................................................................................................................3
Contemporary issues and challenges small and medium sized business faced concerning
SME’s strategy.......................................................................................................................3
Strategic challenges during the development and implementation of managing goods and
service business......................................................................................................................4
PART- 2.....................................................................................................................................5
Internal and external environment of SME............................................................................5
Mode of entry into new market..............................................................................................8
Influence of CSR practices and areas in strategy for future development of new market...10
CONCLUSION.......................................................................................................................10
REFERENCES.......................................................................................................................12

INTRODUCTION
Business strategy is the composition of decisions which are taken and formed by an
organization to accomplish their business targets through which a company can secure their
competitive position within the industry. A business strategy is the backbone of an
organization which can support them in working towards the accomplishment of desired
objectives (What is business strategy. (2017)). Monzo is a banking and finance company
which was started back in 2015. Monzo bank is an online bank which was founded by Gary
Dolman, Jason Bates, Joans Huckestein, Paul Rippon and Tom Blomfield. The company
offers pre-paid cards which are connected to an application that can track the expenses and
help consumers analyze their financial activity. The company was given full banking license
in 2017. The business strategy of Monzo focuses on making banking services easier for
consumers where they can spend, save and manage their money through on app and one place
(Monzo Website. (2022)). This report will discuss the fundamentals of designing and
implementing SME business strategy. In the first part, the report will define issues and
challenges which can be faced by business due to their strategy. The challenges which will be
faced by an organization due to the management of goods and service will be also outline in
this section. In next section, the report will define internal and external business environment
with the help of selected frameworks. Lastly, the mode of entry selected by business to enter
in Netherland’s market will be discussed which will be proceeded further with defining the
influence of CSR practice.
PART- 1
Contemporary issues and challenges small and medium sized business faced concerning
SME’s strategy
There are various issues and challenge which can be faced by any SME organization
in relations to their business strategy. Some of the challenges which have been faced by
Monzo in context of their business strategy are outlined below:
 Funding- The funding options has been a challenge for an organization which made
business face issues while forming any business strategy. Such challenges affected the
operations and its continuity can be hampered. In case of Monzo, the company can face
various funding issues where the company was not able to get appropriate funds which
has bene a major concern for the strategy of the organization.

 Skilled human resource/labor issues- Lack of skilled human resource/ labor has been a
challenge for the company to plan strategies as this affects their decision making and
productivity of the organization. In case of Monzo, the banking company faced various
issues related to lack of skilled labor which affected their overall organizational
performance and position within the industry.
 Lack of trust- As the brand name and goodwill of any organization is based on customer
trust, this can hamper the ability of an organization to sustain in the industry and such
challenges affects the position of an organization within the industry (Challenges faced
by MSME sector. (2021)). In case of Monzo, the company can face various challenges
related to trust as the company is based on digitalization or online services which can
make their customers face various privacy and security issues. Such challenges have been
negatively influencing the customer base of the banking company and made business face
various challenges to keep information of their customers secure.
Strategic challenges during the development and implementation of managing goods and
service business
The strategic challenges which can be faced by any organization can hamper their
development and implementation of strategy while managing goods and services. In context
of Monzo, the banking company will be facing various strategic challenges which can create
a barrier while designing and implementing strategies for managing goods and services are
explained underneath:
 Cybersecurity threats- The rapid advancements in technology have made business
encounter various cybersecurity threats which can sacrifice their collected
confidential information (Challenges business face. (2021)). In case of Monzo, the
online banking company faces various strategic challenges of cybersecurity which can
affect privacy and security of the confidential information of their consumers
accounts and affect their management of services offered by them to their customers.
 Skill gap- The skill gap has been a major strategic challenge which have been faced
by an organization due to the lack of knowledge and expertise of the candidates which
affects their ability to perform business activities. Such challenges create a hurdle for
companies to meet their objectives and leads to poor and dull performing
organization. In case of Monzo, the company face skill gap challenges in their
employees which affects their ability to perform up to the standards and create a