MS60047E: Growth and Sustainability of Vectair Holdings SME

This report examines the growth and management of Vectair Holdings, a UK-based small and medium-sized enterprise (SME) specializing in hygiene products. Using secondary research, the report identifies the company's competitive advantages, such as innovative products and effective pricing strategies, and its contributions to the UK economy. It also addresses the challenges faced by Vectair, including technological advancements and budget constraints. The report concludes with recommendations for future growth, emphasizing the importance of financial planning, expert advice, technology adoption, employee training, and strategic marketing. The UK government's support for SMEs through schemes and subsidies is also highlighted. Desklib offers similar solved assignments and study resources for students.

MANAGING SMALL
AND MEDIUM SIZE
ENTERPRISES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
FINDINGS.......................................................................................................................................3
CONCLUSION................................................................................................................................6
RECOMMENDATIONS.................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
The SME which has taken in this report is Vectair Holdings. Vectair Holdings is the
small medium enterprise of United Kingdom. Company manufacture Hygiene related products.
It is the private limited company and have less employees as compared to large organisations.
This is the renowned company which produce innovative products in order to increase their
market share. They are the producer and supplier of hygiene and aircare products and cover
complete UK. Company is famous for its good quality and innovative products. From last 30
years this company is trading. They have experts which concentrate on odour control, surface
care, hand washing, infant care, sanitary disposal and other products which are specifically made
to complete home spaces. The data for this research is collected through secondary research.
Secondary research is been selected because it will provide detail information of the selected
topic. Another reason of selecting secondary research is that it consumes less time and also cheap
as compared to primary research (Thoo, Sulaiman, Choi and Kohar, 2017). The aim of this report
is to ascertain the growth and managing SME. SME's plays vital role in the country. They
provide employment to many people and also help in the economic development of the country.
The objective of this report is to identify the growth and sustainability of SME. Another
objective is to identify the challenges in managing small and medium enterprises.
FINDINGS
Small and medium-sized enterprises are independent kind of firms which are deals in the
market place with the involvement of fewer employees. Although, the number of employees are
completely depended upon the countries in which they are operating. Small companies are
generally consists of minimum of 50 employees while the micro enterprises consists of 10 or
sometimes even 5 employees only as well. Vectair holdings limited is one of the small and
medium-sized enterprise who basically deals in providing services to buildings and dwellings,
administrative and support services, waste management services as well as building component
cleaning services to different required people within the market space. Company currently
consists of 35 employees working within their organization and generates of about $32 million of
sales all across their business (Short and Gray, 2018). The firm is a private limited company and
works for the betterment of the society by providing them a hygienic place to live. From the
above research, it has been identified that the small and medium-sized enterprises are highly

unique as they are passionate about their business activities. Same as other SME's, Vectair
holdings limited also persistent in their business activities along with good at dealing with their
clients. The company really works hard in collaborative, adaptable and empowerment manner.
The company shares world renowned innovator firm, manufacture and supplies of air-
care and hygiene goods and services in numerous sectors who are capable enough to provide
efficient services to their clients. The company delivers their effective services for over more
than 30 years in appropriate manner. The services are presently situated in over 130 countries.
They are a innovative manufacturer and pays complete attention towards regulatory affairs as
well as compliance of the goods and services. They work really hard by ensuring on their
ingredients that they are extremely accurate in nature and does not provide any kind of harm to
any people in the society. The firm offers skin care, infant care, sanitary disposal as well as
surface care products. In context of company products sources of competitive advantages, the
company shares unique products that are highly standable within the market space (Saridakis,
Idris and et.al., 2019). In order to take competitive advantages, company offers certain products
that are rich in quality as well as shares effective pricing strategies which are able to attract more
and more consumers towards the products and services offered by the company.
The products are efficient enough that the consumers are ready to pay for their offered
goods and services. The company works with their charity partners like The Eve Appeal
Gynaecological Cancer Research Charity. These action also enhances the company brand value
and image among the society and the customers are more likely interested to choose the
company products in most effective manner. The research study helps to identify about the
Agmet that their products are extremely in demand as the company completely focused towards
the needs and desires of the people essentials demand and thus provide them basic goods
according to their requirements. Although the company offers normal goods that are easily
available in other brands as well and thus due to this reason, the company have so many
competitors in the market premises. But the uniqueness of their products makes the firm different
form others and hence successful as well (Yadav and et.al., 2018). The company is highly
focused towards the price of related goods that has been offered by other competitive firm in the
market and according to which the firm adopts their effective pricing strategies for the
betterment of the firm as well as for the people living in the society.

The economy of the UK shares huge part of small and medium-sized companies such as
the firms are around 99% of the overall business population all across the UK. Hence, Agmet
also is one of the SME's who are successfully running their business activities all across the UK
as well as other 130 countries (Stoian and Gilman, 2017). Vectair holdings effectively align their
objectives and aim of the business towards the maximization of the profitability and also increase
their market share with its growth opportunities in order to take corrective measures. The
company consists of efficient employees who shares their business goals while making plans to
implement necessary changes within the organization in context of products, services as well as
business operations. The company also deals in providing original equipment manufacturing
services under which the customers are allowed to design their own style of product by the firm
and all the products have been manufactured by utilizing the latest technologies from state of art
facilities.
However, as all other businesses, the Vectair also faced certain challenges while running
their business in the UK economy as apart from small and medium-sized firm, the company have
to great;y focuses towards their technological advancements. And because of lack of budget
constraints, the company have certain limitations while adopting changes and innovations into
their business activities. The company is running in an independent market and thus does not
have any kind of backup or support when something goes wrong at any particular point of time.
Apart from all of this, lack of capital also have been faced by the enterprise as the innovations
and modifications requires certain amount of capital through which they are effectively able to
run their business actions within the market space.
Apart from all the challenges, the Vectair Holdings limited manages to run their business
activities in most efficient manner. They are effectively managed their revenues, assets and their
employees in a way through which the company is able to focus on their firm goals and
objectives of achieving sustainability, consistency, high sales and profit margin generation.
Hence, the research about the small and medium-sized businesses helps the scholar to identify
the current growth and development strategies of the businesses are that the firm tries to expand
their market share so that they can achieve high profits margins. Moreover, with the help of joint
ventures, product franchising, manufacturing franchising as well as other expansion strategies
the firms along with the Vectair Holdings tries their maximum to expand their market share. And
due to such strategies, right now, the UK shares around 1.4 million SME's all across the UK

which contribute approximately 45% of the overall business (Maldonado-Guzmán and et.al.,
2019).
It is observed that government provide major support to SME because they contribute in
increasing the economy. They also provide employment to the citizen of the country.
Government have launched many schemes under which small and medium enterprises gets small
loans on low interest rates. Government understand the value of SME and they also knows it
very well that for growth capital is required by every company. So that is why they have started
schemes so that SME can get small and medium term loans at blower interest rate. Government
also make policies in favour of SME (Ali, Omar, Nasir and Osman, 2018). They also provide
various subsidies to them. SME requires support in their initial years. So UK government
provide complete support. Government aims that every SME becomes large organisation so that
is why they provide support to every SME. By using subsidies which is provided by the
government, companies can also purchase raw material and other equipments in comparatively
lesser price. So that is why it can be said that government support SME at every step.
CONCLUSION
Through this report it can be concluded that the aim of this report is to identify the growth and
challenges which is faced by small and medium companies. SME refers to small companies
which employ fewer people and generate low revenue. Government also support SME because
they contribute in the economic growth. SME are highly supported through government scheme
so that they grow and become large organization in the future. Competition is at its peak and
competition is not only in larger companies but it is also there is SME. It can be said that SME's
are operating in highly competitive market. They major challenges which is faced by SME is
they have less access to new technology. As they cannot afford the adoption of advanced
technology. They are also not having access to various marketing platforms which large
companies have.
RECOMMENDATIONS
For the future growth and development SME should work on filling the financial gap. Capital is
the vital thing to run the business and also to attain growth and expansion. While taking finance
from the market SME should carefully evaluate each option. They should ignore such options in

which they have to pay large interest amount (Chung and D’Annunzio-Green, 2018). As SME
have limited resources so that they should have take external advice for the purpose of growth.
There are various experts in the market which provide expert services, experts will provide
proper guidance to SME in regards of how to use resources and capital effectively to attain
growth and success. It is very important for SME to adopt advanced technology. New technology
will help company in manufacturing more products and getting higher profits. Management of
SME should have always open to invest in new technology. Technology brings positive changes
in the company. So never refrain from adopting new technology. Technology also helps to solve
complexities within the organisation and promote growth of the business. Vectair holdings
should have also provide training and development to their employees. When employees are
trained properly then they know their job role (Bada and Nurse, 2019).
Training also provide knowledge and skills to the employees which they can use to carry
their regular work. Although training will costs to the company but it will provide good results to
the company in the longer run. Company should also focus on marketing strategies. Marketing
practices is the most vital thing for every business because it contributes in increasing sales of
the company. When company will receive high sales then it will also high their profits. Social
media marketing can be used by the company because it is cheap and also helpful in covering
large audience easily. Users of social media is also increasing day by day. Social media also
helps in connecting company and their customers. Company can also run marketing campaign on
social media. Vision of the company should have also frame in regards of growth and
development (Tarhini, Yunis and El-Kassar, 2018). Management should have growing approach.
Company should make sure that they are retaini9ng their existing employees by giving them
rewards and recognition so that they did not leave the company. Top performer employees are
the asset of the company so company should make sure that they are satisfied and motivated so
that they work hard and organisation can achieve growth and development.

REFERENCES
Books and Journals
Ali, H., Omar, E.N., Nasir, H.A. and Osman, M.R., 2018. Financial literacy of entrepreneurs in
the small and medium enterprises. In Proceedings of the 2nd Advances in Business
Research International Conference (pp. 31-38). Springer, Singapore.
Bada, M. and Nurse, J.R., 2019. Developing cybersecurity education and awareness programmes
for small-and medium-sized enterprises (SMEs). Information & Computer Security.
Chung, K.L. and D’Annunzio-Green, N., 2018. Talent management practices in small-and
medium-sized enterprises in the hospitality sector: An entrepreneurial owner-manager
perspective. Worldwide Hospitality and Tourism Themes.
Maldonado-Guzmán, G., and et.al., 2019. Innovation capabilities and performance: are they truly
linked in SMEs?. International Journal of Innovation Science.
Saridakis, G., Idris, B., and et.al., 2019. SMEs' internationalisation: When does innovation
matter?. Journal of Business Research, 96. pp.250-263.
Short, H.J. and Gray, D.E., 2018. HRD in SMEs: A research agenda whose time has
come. Human Resource Development Quarterly, 29(1). pp.7-13.
Stoian, C. and Gilman, M., 2017. Corporate social responsibility that “pays”: A strategic
approach to CSR for SMEs. Journal of Small Business Management, 55(1). pp.5-31.
Tarhini, A., Yunis, M. and El-Kassar, A.N., 2018. Innovative sustainable methodology for
managing in-house software development in SMEs. Benchmarking: An International
Journal.
Thoo, A.C., Sulaiman, Z., Choi, S.L. and Kohar, U.H.A., 2017, June. Understanding supply
chain management practices for small and medium-sized enterprises. In IOP
Conference Series: Materials Science and Engineering (Vol. 215, No. 1, p. 012014).
IOP Publishing.
Yadav, N., and et.al., 2018. Drivers of sustainability practices and smes: A systematic literature
review. European Journal of Sustainable Development, 7(4). pp.531-531.