7AAD0064: Manufacturing Strategy Report - University of Hertfordshire

This report delves into the significance of research and development (R&D) strategies in gaining a competitive advantage, particularly within the context of the SME Speedboard Assembly Services Ltd., a UK-based electronics manufacturing company. The report explores how R&D initiatives contribute to improving production processes and addressing organizational challenges. It analyzes different strategies for achieving competitive advantage, including cost leadership and differentiation, and evaluates their suitability for Speedboard. Porter’s generic strategies and VRIO analysis are applied to assess the company's position and resources. Furthermore, the report compares the benefits and drawbacks of SMEs versus global corporations, highlighting the challenges SMEs face in competing with larger entities. The analysis underscores the importance of strategic planning and adaptation in the face of global competition, emphasizing the need for SMEs to develop robust strategies to thrive in the market.

Running head: MANAGEMENT
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Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Role of R&D in gaining the strategic advantage.............................................................................3
Analyzing the competitive advantage can be gained by the company............................................4
Identification of benefits and drawbacks based on SME versus a global corporation and summary
of comparison..................................................................................................................................7
Conclusion.....................................................................................................................................10
Reference and bibliography:..........................................................................................................11

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Introduction
Research and development strategies are being introduced for improving the production process.
Through the research and development initiatives, the answers related to the current situation of
the organization can be gained (O’Connor, Parcha and Tulibaski 2017). The particular study has
been developed for critically analyzing the significance of different tools, techniques and
methods, which can help- the company to gain the competitive advantage. The particular study
has focused on the SME Speedboard Assembly Services Ltd., which is a UK based electronics
manufacturing company (Speedboard.co.uk 2020). Being the electronic manufacturing company
it offers electronic control circuits, electronic integrated circuits, project circuits, printed circuit
boards, protection circuits and digital electronic circuits (Speedboard.co.uk 2020). The company
was established in the year 2011 and after the establishment, with the total numbers of 82
numbers of employees it is operating in the electronic manufacturing sector.
Discussion
Role of R&D in gaining the strategic advantage
The crucial foundation of business gets developed based on the research and development
initiatives adopted by the companies. The research and development comes with the innovative
ideas that contribute in managing the growth process in the workplace (Harrington, Srai and
Kumar 2019). Research and development activities are being made for managing the challenges
in different business environment. In the current business scenario, gaining the competitive
advantage has become the significant strategic move that helps to ensure the sustainable position
of the company in a particular sector. In case of improving the business process, the research and

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development team can be considered as the significant contributor. By boosting the productivity,
it helps to reduce the excess expenditure and give tough competition to the competitors.
Analyzing the competitive advantage can be gained by the company
In order to gain the competitive advantage in the market basic four strategies are being adopted
by the companies. Cost leadership, differentiation, defensive strategies and strategic alliances are
the four basic tactic those help the companies to develop strong competitive position in the
market (Vuong 2018). Being the SME, adopting the defensive strategy is quite challenging for
SME Speedboard Assembly Services Ltd. On the other hand, strategic alliance approach has not
been adopted by the company. In 0order to define the suitability of competitive advantage
strategy for SME Speedboard Assembly Services Ltd, Porter’s generic strategic has been
discussed below.
Porter’s Generic competitive strategy
The relative position of the company within the industry can be analyzed through the Porter’s
generic strategy. In terms of generating the long term profitability in the market, competitive
advantage of the firm needs to be analyzed (Arjona, Flores and Valencia 2018). In order to
achieve the desired organizational performance, four segments of Porter’s Generic Strategy are
significant.
Cost leadership
The cost leadership strategy can be defined as the important strategic tool that is being used by
the companies to gain the attention of the customers. In the cost leadership strategy following the
low price strategy, the company continues to promote the better services in the market.

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Especially in case of SMEs, the cost leadership strategy is beneficial for gaining the high profits
in the market.
Differentiation
The differentiation strategy can be defined as another important strategic tool that is being used
for gaining the competitive advantage in the market. Through the differentiation strategy, the
company develops its strong brand image on the market, which makes people choose the brand
over others (Yu, Rubery and Lu 2016). This differentiation strategy is appropriate especially for
the large organization. This strategy is being applied where the competitive scope is high.
Focus
In the market, where competitive scope is narrow, in that case focus strat5egy is being adopted
by the company (Baral et al. 2016). While adopting the focus strategy, the company targets the
narrow target segment to promote its products and services.
Analyzing the current business strategy adopted by Speedboard Assembly Services Ltd, it has
been identified that gaining the high profits, the company has adopted customer centric
approach. In that case, then company has promoted its products in the lower cost in market.
Therefore, it can be said that currently the company is following the cost leadership strategy in
terms of gaining the high profits. In this case, the company has produced the same products as its
competitors in the market and brought it in the market in lower cost. Being the SME, currently
the target segment of the company is limited, however, in the long run following this particular
strategy, the company can be able to enhance its operation segment.

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VRIO analysis of SME Speedboard Assembly Services Ltd for analyzing the competitive
advantage
Subject Valuable Rare Imitable Organization
Financial
resource
Being the SME,
the company has
made significant
operation in the
market, which
has strengthen its
financial;
resources.
It is not rare
because in the
electronic
manufacturing
industry there are
various large
organizations
with huge
amount of
financial
strength.
Therefore, it is
not rate.
The financial
resources are not
that much costly
that it cannot be
imitated.
Following the
organized
financial
structure thee
company is
operating in thee
market.
Product The products
have strong value
in the market.
The products are
not rare and it
means the
competitors can
easily use the
resources.
The product is
imitable.
The company has
introduced
diversified range
of products in the
marklet.
Distribution The strong The distribution It can be imitated Both the offline

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network distribution
network is being
followed by the
company.
channel is not
rare as `reaching
the particular
distribution
channel can be
easier for other
companies.
by the other
competitors.
and online
distribution
channel is being
followed by the
company that can
promote
significant
growth in the
market.
Identification of benefits and drawbacks based on SME versus a global corporation and
summary of comparison
The economies of world created countries depend on organizations that have vanquished the
piece of the overall industry of their home nation and furthermore have extended to different
nations as MNC's (Sharp 2017). While seeking after for development, the global companies are
frequently invited by the countries, particularly less created nations, in anticipation of lift to work
and financial action. Aside from the plain gains, the secret dangers are generally anticipated
bringing about monetary destructions. In the words of Osman, Mao and Stafford (2018), One of
the dangers related to the monster multinationals is, their impact on the nearby business and the
SMEs in explicating by smothering the opposition. A large portion of the world countries are
endeavoring hard for the foundation of a protected SME segment to guarantee financial security
and development. Despite the endeavors made by their particular governments to exceed
expectations the neighborhood business, larger part of them can't accomplish the wanted

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outcomes. In the worldwide period, each organization, either SME or MNC, needs to devise their
arrangements deliberately with a worldwide vision.
Consequently, the arrangements ought to be made considering the serious rivalry that exists
between all the associations in the market regardless of whether SMEs or MNCs. The
investigation is centered around featuring the qualities of MNCs alongside the announced
deceptive hostile to serious practices that makes it hard for the household little scope substances
to remain against them rather contend. Despite the fact that it appears not reasonable enough to
contrast the mammoth MNC's and low scope SMEs, however being the players of a similar
industry and market, a cautious examination of the contenders is an absolute necessity
prerequisite (Yu, Rubery and Lu 2016).
The key characteristics incorporate their size and venture that assist them with accomplishing
potential economies of scale and degree. These economies may exist underway, promoting
improvement and so on. Different researchers further included that enormous multinationals
have a superior access to predominant assets including great quality crude material and work
with capability and particular aptitudes that are regularly uneconomical for neighborhood firms
of countries. Low cost of crude material, hardware and innovation is an extra advantage to the
MNCs that is because of their activities in numerous nations and their capacity to move assets
starting with one nation then onto the next.
In the event that nearby industry is solid, it is more averse to be influenced adversely by
worldwide organizations. This announcement shows that nations having less evolved nearby
organizations may confront leaps because of severe rivalry between the SMEs and MNCs (Yu,
Rubery and Lu 2016).

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Various parameters are utilized to characterize the extension and size of SMEs including
measure of speculation, number of representatives in the association, yearly deals or turnover
and so forth. The idea of SMEs (Small and Medium measured Entities) change from nation to
nation based on level of improvement of that nation and the accessibility of assets. Then again,
the greater part of the worldwide partnerships is presently alluded to as global economies on
account of their tremendous asset report and capital structures that commands the financial worth
of such a significant number of nations of the world. The distinction in the measure of venture
between these two kinds of associations itself is a quality of huge scale fabricating organizations
that encourages them characterize their serious stance in the market. Additionally MNCs like
Sony are enormous scope fabricating associations with activities in numerous nations. The
introduction to mass market helps in getting mass piece of the overall industry, spreading normal
expense to numerous nations including the commercials, and so forth. This moreover encourages
them accomplishing economies of scale effectively and irregular benefits (Yu, Rubery and Lu
2016). The accessibility of abundance subsidizes offers edge to MNCs over SMEs from
numerous points of view (Greiner and Julian 2017). These focal points incorporate better
framework when contrasted with the household SMEs, utilization of better innovation, enlisting
of capable faculty and human asset, use of better quality crude material, chance to offer and plan
new and imaginative top notch items, better liquidity and appropriate designation of reserves.
Another advantage to the worldwide in light of their quality in different nations is the
arrangement of acquired capital at decreased rate. In the words of Osman, Mao and Stafford
(2018), the expense of money to Sony is not as much as that of gave to the little residential firms.
Dominant part of the multinationals is the corporate clients of global banks that advantage them
in a large number of their economic issues.

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Among the negative impacts, one is their effect on rivalry particularly in under creating
economies. The capabilities of worldwide partnerships as far as their gigantic ventures, solid
R&D (research and development), advance innovation and their cost authority empower them in
confining new conceived SMEs from development and achievement. Frail legitimate condition
or poor statutory structure, that is a disaster of less created nations, additionally adds to the
qualities of MNCs. Absence of lawful consistence and arrangements making sure about SMEs
makes them a simple focus for MNCs. From the previously mentioned subtleties, it very well
may be presumed that the SMEs can add to the economy just on the off chance that they are
given reasonable full-scale condition, disparage by government guidelines reinforcing their
position, shielding SMEs interests and dispensing with dangers off their direction.
Something else, MNCs like Sony, due to their tremendous powers don't let SMEs prosper to
assume serious job against them. SMEs are gone up against by various size inborn impediment
concerning the lead of transnational exercises. Specifically, SMEs are unmistakably impeded by
scale economies and other size related possession explicit focal points. Essentially, they may
have more trouble acquiring contributions on preferred terms. And the entirety of the focal points
gave to backup and branch foundations of occupant partnerships, for example, access to
regulatory, administrative, R&D, and promoting limit, are less apparent for SMEs than for their
bigger partners. In any case, the advantages of extending their business sectors, being presented
to various shopper requests, organizing with remote partners, or more all getting to novel
wellsprings of information, unmistakably makes FDI a significant component of the panoply of
methodologies open to SMEs who need to stay imaginative in a worldwide economy.

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Conclusion
In this study, it can concluded that research and development initiatives are very important in
case of analyzing the competitive position in the market. In the particular study, comparing thye
position of Global organization and SME, the significant benefits as well as drawbacks regarded
to the financial and others resources have been identified. In case of Speedboard Assembly
Services Ltd, Cost leadership strategy has been identified as the appropriate strategic move for
gaining the competitive advantage in the market.
Reference and bibliography:
Arjona, A.L.L., Flores, E.C. and Valencia, C.C., 2018. Reducing SMEs informal economy
through institutionalization: the MNC-academia-SMEs business model. Innovaciones de
negocios, 11(21).
Baral, S., Basnyat, B., Khanal, R., Malla, Y., Gauli, K. and Grouwels, S., 2016. Efficacy of
cross-sectoral platforms on strengthening sustainable business operation in Nepal.
Dabić, M., Maley, J., Dana, L.P., Novak, I., Pellegrini, M.M. and Caputo, A., 2019. Pathways of
SME internationalization: a bibliometric and systematic review. Small Business Economics,
pp.1-21.
Greiner, M. and Julian, S.D., 2017. The Recession as Laboratory: Generic Strategies and the
Great Recession. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 13160).
Briarcliff Manor, NY 10510: Academy of Management.

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Harrington, T.S., Srai, J.S. and Kumar, M., 2019. Knowledge management in SMEs and MNCs:
matching knowledge mobility mechanisms to supply network configuration profiles. Production
Planning & Control, 30(10-12), pp.971-994.
O’Connor, A., Parcha, J.M. and Tulibaski, K.L., 2017. The institutionalization of corporate
social responsibility communication: An intra-industry comparison of MNCs’ and SMEs’ CSR
reports. Management Communication Quarterly, 31(4), pp.503-532.
Omsa, S., Abdullah, I.H. and Jamali, H., 2017. Five Competitive Forces Model and the
Implementation of Porter’s Generic Strategies to Gain Firm Performances.
Osman, S., Mao, X. and Stafford, J.R., Sony Interactive Entertainment Inc, 2018. Switching
mode of operation in a head mounted display. U.S. Patent 10,019,057.
Sharp, T., 2017. Theorizing cyber coercion: The 2014 north korean operation against
sony. Journal of Strategic Studies, 40(7), pp.898-926.
Speedboard.co.uk 2020. Retrieved from: https://www.speedboard.co.uk/about/company-mission/
[Accessed on 15th April, 2020]
Vuong, Q.H., 2018. A Compensation Game: MNC vs. SME.
Yu, T.T., Rubery, J. and Lu, L., 2016. Employment segmentation and the supply chain in the
chinese automotive industry: the changing relationships between foreign MNC manufacturers
and their local SMEs wholesale distributors in China. In Annual Conference of the International
Working Party on Labour Market Segmentation (No. 37è).