Analysis of SME Management: Oak Cash & Carry Limited Case Study

This report delves into the realm of small and medium enterprises (SMEs), examining their establishment, management, and the various challenges they encounter. The report uses Oak Cash & Carry Limited, a grocery wholesaler in the UK, as a case study to illustrate key concepts. It explores the nature of entrepreneurship, the business start-up process, and the competitive advantages SMEs can leverage. Furthermore, the report analyzes the competitive environment using Porter's Five Forces model, highlighting challenges such as competition, supplier and customer bargaining power, and the threat of new entrants and substitutes. The report also addresses the challenges SMEs face in managing and running their businesses, including financial constraints, marketing limitations, and customer acquisition. The report highlights the importance of innovation, effective decision-making, and strategic planning for SMEs to navigate these challenges and achieve sustainable growth. The report provides an overview of government support for SMEs, discusses organizational growth policies, financing sources, and the crucial role of entrepreneurs in driving business success. It also provides insights into the current level of demand and the competitive environment faced by SMEs. The report uses primary and secondary research to provide relevant data and information.

Managing small and
medium enterprises

Executive summary:
As the report is about the small and medium enterprises that are established with limited
investment, employees and resources. There is proper structure and process is followed by the
organisations to establish business. Organisations are evaluated various external environmental
factors than all strategies and planning are developed that help business to take competitive
advantages. As the organisation face various challenges in running as well as establishing
business so, government formulated number of schemes and programmes that facilitates the
business to overcome challenges in effective and efficient manner.

Contents
INTRODUCTION...........................................................................................................................3
Findings...........................................................................................................................................3
Conclusion.......................................................................................................................................6
Recommendations............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Small and medium-sized enterprises are defined as the businesses that maintain various factors
such as revenue, assets and a number of employees below a certain threshold. Every country has
its own definition of small and medium scale enterprises. There are different types of business
that are defined by their size such as small, medium as well as large sized enterprises having
various goals and objectives. SMEs are classified on the bases of their investments as well as
turnover in specific sector such as small business sectors which investment range is 1 Crore to 10
Crore and turnover range is between 5 to 50 Crore on the other hand, medium sized
organisation’s investment range which is between 10 to 50 crore and turnover is 50 to100 crore
estimate. SMEs are divided in various kind such as ownership such as proprietorship, companies,
cooperatives as well as partnership. In this report the chosen organisation is Oak Cash & Carry
limited which is found in 19th October 2000. The organisation is situated in Banbury, United
Kingdom that is a part of food wholesaler industry. It has 54 employees who generate 5.13$
million by sales. The organisation is deal in groceries wholesaler. The entrepreneur of Oak Cash
& Carry limited is Nicholas John Dale who established the enterprise and having the innovative,
motivated, having clear vision and mission (Bratianu, Prelipcean, and Bejinaru, 2020).
Respective organisation faced various challenges and problems such as lake of financial
expertise, financial solutions, technological advancements, labour issues, instance competition
and government regulations that affect the performance and profitability of organisation in
various manner. There are various challenges faced by the small and medium scale enterprises
that affect running and management of organisation so, government passed many policies to
support these enterprises in to order to ensure smooth working as well. In this report different
contemporary issues of small and medium enterprises and government support to address these
issues, organisational growth policies, methods of growth and different source of finance of
SMEs are covered in this project report. In this project primary as well as secondary research is
used that provide most relevant and effective data and information.

Findings
There are various aspects are covered in findings that facilitates to understand the whole
topic in appropriate manner. Oak Cash & Carry limited in a grocery wholesaler organisation all
other aspects of organisation are discussed below:
Nature of entrepreneur:
Entrepreneur is an individual who creates new business and have courage to take risks and enjoy
rewards as well. The entrepreneur of Oak Cash & Carry limited is Nicholas John Dale who states
the business is a dedicated entrepreneur is enough motivated to achieve all defined goals and
objectives with time period as well as inspire other people also to contribute in business
effectively (Brink, 2017). He is passionate towards it goals and think innovative ideas to
accomplish these goals more efficiently and properly. His visions are specific, clear, measurable
and attainable that he wants to attain and have clear methods to achieve these objectives and
which resources are used in accomplishment. Entrepreneur has enough confidence in own self
and on the respective product and services that is produces by him. Effective and efficient
decision making is the required nature or characteristics that enables entrepreneur to take quick
decisions to gain opportunities (Centobelli, Cerchione and Ertz, 2020). All these skills and
natures are essential in entrepreneur to perform all organisational task in defined manner.
Business start-up process:
There is a defined procedure that is followed by the entrepreneur to establish small as
well as medium sized enterprises. In order to establish Oak Cash & Carry limited the
entrepreneur perform all activities such as first of all, entrepreneur conduct market research to
evaluate all current market trends, identify all current opportunities as well as gather relative
information about potential customers as well as competitors that are operating in the same area.
All these research outcomes facilitate the organisation to gain various sustainable competitive
advantages. After analysing all market information appropriate business plan is formulated that
is the foundation of a business. The business plan is a roadmap that instruct whole organisation
to perform all activities in defined to attain goals and objectives efficiently (Crane, 2019).
business plan helps the organisation to identify the need of finance and evaluate all financial
sources such as banks, financial institutions, venture capital firms, small business loans and other
corporate societies. When all finance needs are fulfilled then the location of business is decided
that is the most important decision to start a business that affects legal requirements, taxes

policies and revenues. Then appropriate business structure is decided such as partnership, limited
company and many more than the suitable name is designed by which the organisation is
recognised. Once all these formalities are done than the next step is to make legal as well as
protect it by register it with government. After registering business bank accounts are opened and
apply for the licence procedure. Whole process is followed by an entrepreneur to start a new
business.
Business concept and competitive advantages:
Oak Cash & Carry limited organisation distributing food and various related products to
their customers and other businesses on wholesale bases. The respected industry distributing
number of durable and non-durable to specialized them in product category. It used various
online modes to provides their products and services. Competitive advantages are defined as the
factor which facilitates the organisation to produce better quality goods and services at low price
than its respective rivals. This allows the business to generate more production and enhance sales
as well as gain more margin as compared to competitors. Competitive advantages of Oak Cash &
Carry limited conduct its business activities through effective organisational cost structure,
quality of products, customer services, branding and distribution network that are unique to make
differentiates market positioning of organisation in respective market and provide various
competitive advantages as well.
Innovation in business process and activities are required to sustain in competitive
environment. Oak Cash & Carry limited company includes various technological aspects in its
business process and provide better quality product and services to its customers to retain them
with organisation in order to gain various sustainable competitive advantages (Lai, 2021). As the
Oak Cash & Carry limited provides groceries product and services on wholesale bases, the
organisation active on various social media pages to enhance awareness of their brand. It
maintains effective relation with other organisations and customers to increase its customer base.
So, there are various opportunities for the respective organisation to develop in competitive
environment as well.
The current level of demand and the competitive environment
As Oak Cash & Carry limited company provides groceries products and services to
customers and tries to retain them for long period of time. Respective organisation offers range
of better-quality products that enhances the current level demands of products and services. In

competitive environment Oak Cash & Carry limited faces various challenges such as high
bargaining power of customers and suppliers, threat of new entrants as well as competitors that
affect the organisational performance and productivity level. Respective organisation uses
Porter’s five forces model to understand all competitive forces and factors that help business to
formulate effective competitive strategies and facilitate strategic decision-making to attain
sustainable competitive advantages. It facilitates the organisation to identify the competitive
positioning among all rivals. All these five forces are discussed below:
Competitive rivalry: This force helps Oak Cash & Carry limited to examine competitive
level among the industry. It finds all existing competitors at the workplace as well as evaluates
all strategies and working procedure. Competition is depends upon various factors such as
number of competitor, switching cost and demands of customers respectively. For Oak Cash &
Carry limited competitive level is high because there are huge number of business are exist in
industry that provides similar products and services and customers easily switch their
organisation with having low switching cost. In high competition respective organisation
formulates various attractive strategies and publish advertisements and promotions to spread
awareness among market.
Bargaining power of supplier: Bargaining power of supplier is determined as the power of
business suppliers and analysis their control on material prices that affect the profitability and
performance of Oak Cash & Carry limited organisation. It depends upon the number of suppliers
that provides raw materials and resources to produce final products. Oak Cash & Carry limited
organisation has multiple suppliers that reduces their power efficiently because they switch their
suppliers at low cost.
Bargaining power of customers: Bargaining power of supplier is related to examine the
power of suppliers that affect overall pricing as well as quality aspects of organisation. The
power of customers for Oak Cash & Carry limited is low because it provides groceries products
and respective organisation have huge number of customers so, it gets new customers at low cost
efficiently. respective organisation involves various new features in their products that enhances
the loyalty and retainment rate as well.
Threat of new entrants: The respective force is related to analyse easiness and difficulty of
respective competitors to inter in specific market place. it depends upon various factors such as
barriers of entries, strict regulations and high competition in respective market place. For Oak

Cash & Carry limited organisation high threat of new entrants that reduces the profitability and
enhance competition level as well.
Threats of substitutes: Threat of substitute product and service is defined as the factor
such as easiness of customers to switch a business products and services from other competitors.
The demand of groceries product is very high in market so, the threats of substitute is depends
upon the number of competitors, their product prices, quality and customers services as well. So,
threat of substitute product is high for Oak Cash & Carry limited organisation.
Challenges of managing and running the SME and current growth and development strategy
Small and medium scale enterprises faced various challenges and problems to run and as well
as manage all organisational functions and activities in smooth manner. These challenges affect the
business performance. Oak Cash & Carry limited face different challenges such as cash flow
issues to handle all organisational functions is effective manner, as the small enterprise it do not
have enough financial sources, finding appropriate, skilled and experiences employees as well as
potential customers and retain them for long run is difficult for small enterprises (Ardyan and
Sugiyarti, 2018). Maintain and balancing growth, development and quality of product and
services, excess overheads and motivating employees is challenge for respective organisation
that affect its performance as well. Money management performance management and all rules
and regulations that are passed by government affect Oak Cash & Carry limited to carry all
functions in defined manner. Some challenges are discussed below:
Lack of proper marketing: Lack of marketing is the biggest challenge that is faced by the
respective organisation. As small organisations are established with low investment
comparatively so, they organisation cannot afford high-cost marketing strategy and procedures to
reach their products and services to perspective and potential customers. There is insufficiency of
proper knowledge among employees regarding marketing strategies that impacts on business.
Getting and retaining customers: As customers are important assets for every
organisation. Small and medium scaled business faces challenge to cover wide potential
customers as well as retain the existing customers for long period of time (O’Reillyand
Cunningham, 2017). Oak Cash & Carry limited not publishing any advertisement and promotion
that spread products awareness among customer and enhance organisational productivity as well
as profitability.

Money and time management: Time and money management is the essential factor that
impacts on business functions and activities. As Oak Cash & Carry limited organisation has
limited resources as well as lack of skilled and experienced employees that helps business to
enhance the ability to managing time as well as resources efficiently.
There are various other challenges such as performance management, rules and
regulations of government affect the business performance as well as profitability (Sinkovics,
Sinkovics and Archie-Acheampong, 2021). All these challenges are examined and evaluated by
Oak Cash & Carry limited organisation than suitable strategies and planning are developed in
order to attain desired overcomes and face challenges in effective manner.
All these challenges are evaluated by respective organisation properly and appropriate
strategies are formulated to overcome these challenges and problems as well. There are various
strategies are implemented by the Oak Cash & Carry limited to ensure its growth and development
within market place that provides it sustainable competitive advantages. The respective
organisation executed Porters’ generic model to remain competitive within market, it includes
differentiation, cost leadership and focus strategies that provide competitive advantage then other
competitors (Santoro, 2018). To analyse external factor PESTLE analysis is conduct that provide
all information about all external factors apart from these Ansoff matrix strategy also used by the
respective organisation that consist various other strategies such as market development, market
penetration and product development as well.
Greiner’s Growth Model: Greiner’s growth model is defined as the process that consist
various phases of organisational growth and development. It is the most popular strategic
management tool that facilitates the Oak Cash & Carry limited organisation to take effective
decisions that help them to attain all organisation goals and objectives in effective and efficient
manner. There are six factors that guide respective organisation to ensure growth and
development that are described below:
Growth through creativity: This phase Oak Cash & Carry limited organisation focus
upon the organisational structure and providing better quality of products and services that
enhances customer loyalty level. As business in its growing position so creative ideas and
strategies are adopted that make organisation more competitive.

Growth through direction: In this phase all effective and experienced functional
management department is created that controls all organisational functions and primary
processes as well. At every stage specific rules and procedures are implemented.
Growth through delegation: Delegation of responsibilities or decentralisation of authorities to
the middle managers plays important role in growth and development of Oak Cash & Carry
limited organisation. It enhances their responsibility to attain all tactical as well as operational
aims and objectives (Tjahjadi, 2020). Proper decision are taken through the support of
employees.
Growth through coordination and control: In this phase of respective model Oak Cash
& Carry limited organisation focus on the coordination between all organisational unites. As
there are various department in the organisation that are controlled as well as managed by the
divisional managers that ensures smooth working and growth.
Growth through corporation: In this step effective corporation is maintained between all
line and staff departments as well as matrix structure is formulated for the purpose of completing
defined task in specific manner. Mutual understanding is developed by the Oak Cash & Carry
limited organisation that facilitates employees to achieve all defined objectives in efficient
manner.
Growth through creating alliances: Oak Cash & Carry limited organisation ensures its growth
and development through developing effective external contacts and alliances with potential
employees as well so they contribute in efficient manner in organisation growth and
development (Toke and Kalpande, 2021). All these strategies facilitates the Oak Cash & Carry
limited organisation to attain all defined goals and objectives in effective and efficient manner as
well as ensures growth and development to take various sustainable competitive advantages.
Government support schemes that may be available to the business
Small and medium sized business provide employment to number of employees as well as
help in the development of an economy. So, government formulated various schemes to support small
scale industries such as provide them financial assistance, research opportunities and create different
legislation to offer training for employees in order to endure development of industry.
Government provides economic development programs to help small business to start, grow
as well as relocate their business entity in specific area, various incentives and financial assistance is
also provided for infrastructure improvement, permitting licence and train their employee for specific

task. Loan guarantee program in which government offer loan to the small industries to establish their
business or for its expansion. Apart from these policies various other programs are conducted by the
government such as education and training programs for employee, provide funding for improvement
of infrastructure and offer grants for research and development. Government provides conducts
various programmes that make them dependent as well as enhance its revenue. These schemes are
credit support schemes that provides financial support, provides technological upgradation and quality
certificates that enhances trust of customers in organisation. Marketing promotional schemes,
entrepreneurship and skill development programmes, infrastructure development programmes that
facilitates Oak Cash & Carry limited organisation deal with all challenges in effective manner
and ensures the smooth growth and development of organisation to gain sustainable competitive
advantages.
Conclusion
As per the above finding, it can be concluded that small and medium sized organisation are
defined as the business which personnel numbers are decided under certain limits. Entrepreneur
have various characteristics and specific nature that helps to start a new venture. The
entrepreneur must be innovative, having leadership qualities and analytical as well as effective
decision-making and risk-taking abilities (Santoro,Ferraris, Giacosa and Giovando, 2018). All
these qualities facilitate him to establish new business through follow the whole start-up process
that contains number of activities such as preparing effective business plan select location, get
finance from reliable sources and registered business in order to make it leal entity. There are
various challenges are faced by the organisation that small and medium organisation to manage
as well as run business effectively. Organisations formulate number of strategies and planning
overcome all challenges and problems to ensure growth and development of organisation.
Government starts and various interventions as well as develop number of schemes to support
small and medium scale organisations that are related to provide financial as well as technical
assistance to establish and run business of competitive environment. Apart from that policies
regarding loan, infrastructure improvement and training is also provided by the government to
make organisation more competitive and to ensure their sustainable growth. Various
development strategies are developed by the Oak Cash & Carry limited organisation to run all
business activities in efficient manner (Zhang, 2021). Government conducts range of

programmes and schemes that facilitates the respective organisation to face all challenges and
overcome their negative impacts on organisation as well.
Recommendations
Designing a growth policy for an Small and medium enterprises:
From the above report, it can be recommended that growth and development of small and
medium scale industry is required for the development of respective economy as well. So, there
are number of growth and development policies are formulated that facilitates the organisation to
sustain in competitive environment and contribute in economic growth also. Strategies that are
used to develop small scale enterprise are expansion, diversification, joint venture, merger and
acquisitions and franchising (Townsend, McDonald and Cathcart, 2017). Expansion is the most
important strategy that ensures the internal growth through enlargement the business in same line
that includes various aspects such as expansion by market penetration, market development,
developing new products or modifying them to order to meet all organisational goals and
objectives. In order to ensure growth Oak Cash & Carry limited organisation should adopt
through diversification that enables the organisation to expand business beyond any limit that
facilitates to assure effective utilisation of resources and reduce risk as well as strengthen
business to remain competitive.
Joint venture is another way to ensure external growth of business by conducting long term
contractual agreement with other organisations that provide technological aspects and reducing
risk through sharing it among all partners. Merger and acquisition also help the enterprise to lead
towards growth and development by complying two or more enterprises into an entity (Ju,
Ferreira and Wang, 2020). It facilitates the Oak Cash & Carry limited to enhance value of stock,
investment, reduce competition level as well as avail different tax concessions.
Understanding about how to manage change issues in an SME context
In current business environment various internal as well as external factors that affect the
business activities and performance of small and medium enterprises. There are continuous
changes are happened in these factors according to requirements. Implementation of these
changes in business are not easy task, Oak Cash & Carry limited formulate various strategies and
effective planning to manage these changes and gain various competitive advantages than its
competitors. In order to manage these changes effectively organisation properly communicate all