CHAPTER ONE
INTRODUCTION
This objective of this chapter is to highlight the aims and objectives of this research which is to create a strategic development path for an SME. The chapter explains the need for SME’s to develop a strategy. This chapter then goes on to explain the importance of SMEs in India and their growth from the past and also the issues currently faced by them.
A) Aims and Objectives:
The chemical industry of India has been in recent years one of the most booming industries. In 2003, India’s Chemical Industry was the 13th largest in the world and the third largest in Asia in terms of its size, with the industrial sector having been the focus of a number of economic reforms such as simplification of tariffs and reduced export tariffs with elimination of quantitative restrictions on imports, implemented by the Indian government over the last decade (Siddiqi, 2003). Due to this sudden boom of chemical companies across India, many small micro enterprises have also sprouted to accommodate the growing demands of the global market on chemical products. In view of these promising developments, this dissertation aims to enhance understanding of the nature and form of strategic development activity within small businesses: using the case of Lihar Organics, a micro small business in India.
The objectives of this dissertation are the following:
To examine the historical and current development of the business in terms of unfolding markets, products and processes activities, and the key external environment forces that have enabled and constrained that development
The chemical industry, just like any other industry, is constantly changing in terms of its profitability and marketability. There is always a fierce competition in the global market. Therefore, it is helpful and essential that growth and development of the business is always a top management priority to keep up with the growing demands of the market and to keep competition at bay.
To examine the nature of organisational and managerial skills and abilities which have facilitated the development of the business to date, including the nature and form of the small business strategy development processes and integral management actions
Each business, no matter how small, has its own secret of success. This may be in the form of management skills and abilities or good working relationships with the employers. Whatever it is, it is worth the time to examine and explore what makes a business shine above the rest. Business strategies are always worth noting for they may provide clues as to how the business became successful or a failure.
To identify, in the light of understanding derived from analysis of the business in its current operating context, potential strategic development paths available to the business and specific resource and management strengths and weaknesses with regard to each identified potential development path
Identification of strengths and weaknesses of a business is also important if one aims to conduct a study on its development and evolution. The success of a business lies on the proper address of the management to its strong and weak points. Early identification and acknowledgment of these shall be beneficial to the advancement of the business in terms of its production and profitability.
To contrast and compare strategic management practices identified within the participant case study firm with that embedded within the traditional strategic management literature – and to consider the implications of any similarities and differences: (a) for enhancing understanding of existing literature-based insight into small business strategic management; and (b) for enhancing strategic management capability of the case study small business.
The art or science of strategic management is crucial in every business enterprise. Without mastering any strategy, a business can fail shortly after its inception. The strategic management practices being used by Lihar Organics shall be compared and contrasted to that of existing strategic management practices found in traditional literature dealing with the subject. In doing so, it will be evaluated if Lihar Organics needs to enhance its strategies or not. An examination and dissection of Lihar’s strategic management practices will be thoroughly conducted.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment