Sme,s in India aare passsing through a very crusual time this presentation was given to CICU- Young business leader forum at Ludhiana

2. SME Competitiveness
• Globalization and trade liberalization has made it crucial
for most enterprises, including SME,s to become
internationally competitive even when operation wholly in
the domestic market
• In a knowledge based economy, competitiveness of
enterprises, including SME,s is increasingly based on
ability to provide high-value-added products at
competitive price.

3. Growth Strategies for SME,s
• Build a strong Corporate culture(written goals & plans)
• Good Hr. Practices
• Reasonable technological strength
• World level marketing
• Completive Sourcing Strategies
• Sound financial strategies
• IPR

4. Build a strong Corporate culture
o Culture determines the overall “feel” of the organization, although it
may vary across different segments of the organization
o Culture is a powerful force that can shape the firm’s overall
effectiveness and long-term success.
o Growth by Professional Approach
o Values, beliefs, behaviors, customs, and attitudes that help the
members of the organization understand what it stands for, how it
does things, and what it considers important
o Develop a clear idea of what kind of culture you want to create

5. Build a strong Corporate culture
o Adopt new slogans, stories, ceremonies, and purposely break
with tradition
o Develop a written code of ethics
o Stay current with internal and external information, reports, etc.
o Communicate regularly with colleagues, subordinates and
customers
o External and internal inelegance
o Bring in outsiders to important managerial positions

6. Companies with strong Cultures
• Culture is very difficult to Build but it helps
Organizations in many ways like .building
brands, retaining peoples, satisfying Customer
Extra.

7. SME- Business Strategies
• NORMALLY SME’s DO NOT HAVE A BUSINESS PLAN OR
WRITTEN GOALS.
• IT IS VERY IMPORTANT TO HAVE A BUSINESS PLAN IN PLACE
AND WE MUST REVIEW IT FROM TIME TO TIME.
• WE SHOULD HAVE :-
– SHORT TERM BUSINESS PLAN
&
– LONG TERM BUSINESS PLAN

8. Some of Good Hr. Practices
o Fair Evaluation System For Employees
o Performance Management Feedback System
o Safe, Healthy And Happy Workplace
o Open Book Management Style
o Performance Linked Bonuses
o Knowledge Sharing
o Highlight Performers
o Open House Discussions And Feedback Mechanisms
o Reward Ceremonies
o Delight Employees With The Unexpected

9. Professionalism without Accountability

10. Reasonable technological strength
o Implementation of latest Technology over traditional
o Straightening internal Technologies
o Technology transfer from developed countries
o Solid, Reliable System Infrastructure
o Use of information technology(Example Card.)

11. World level marketing
• Advertisement in industrial magazine (s)
• Use of internet for marketing
• Develop informative website
• Participation in exhibitions / trade shows

12. VICTORINOX story
before
&after 9x11

13. Sourcing Strategies
• Buy/make decision process
• Effective procurement strategies
• To Identify Opportunities for Savings
• Qualifications of operating management
• Internet Enabled E-Procurement

14. Financial Strategies
• Authentic balance sheet
• Strong financial Audit Mechanism
• Leverage by P.E ,Share Capital
• Company Valuation
• Mergers and Acquisitions
Low
invest
ment
Less
value
additi
on
Low
profit
Less
funds
for
invest
Equity
req. to
break

15. IPR
• IP Strategy should be an integral part of overall business
strategy of an SME
• The IP strategy of an SME influenced by its creative /
innovative capacity, financial resources, field of
technology, competitive environment etc.
• Ignoring the IP system altogether, as is often the case for
SSI,s is in itself an IP strategy and may eventually prove
costly

16. Trademarks are valuable business assets
• Interbrand 2003 Annual Survey of the world’s most
valuable global brands:
Coca-Cola: 70.45 billion(378000 Cr.) US$ Microsoft : 65.17 billion US$
IBM: 51.71 US$.
IPR Advantage

17. Importance of Knowledge
Pre- Industrialization Era (70,s-80,s) Industrialization Era
The Knowledge Economy

18. Never Forget Survival
of the Fittest

19. SME-Business Strategies
• Moral of story is to capture values with Knowledge and
modern techniques and work in smarter ways.

20. Thanks