...ENTRY STRATEGIES OF POLISH SMES TO FOREIGN MARKETS To: Prof. Ewa Baranowska-Prokop Ph.D. Performed by: Alexander Omelyashko 50803 Warsaw 2013 Entry strategies of Polish SMEs to foreign markets Introduction The number of SMEs operating on the international markets is constantly skyrocketing since friendly policy of the EU authorities towards small firms and diminishing barriers of the international trade. Nowadays the percentage of SMEs to the whole number of all enterprises is constantly rising, playing a decisive role in EU economic development and competitiveness: in the EU they constitute about 98% of businesses (more that 20 million SME’s), providing two thirds of the total employment and 80% of new created jobs. This number in Poland is high as well. According to surveys Enterprises give out more than 70 percent of all GDP, and 72 percent of them were SMEs, which are 99.9% of all enterprises. STRUCTURE OF GDP IN POLAND IN 2012 CUSTOMS 11% MICRO 32% ENTERPRISES 70% OTHERS 19% MIDDLE 11% SMALL 8% BIG 19% OTHERS CUSTOMS MICRO SMALL MIDDLE BIG The competition is harsh, and enormous number of new enterprises is coming up every year. Thus, no doubt that that is crucially important for an SME to choose the right entry strategy in order to operate the internalization process successfully. The appropriate entry strategy will have great consequences on the development of the firm, its revenues and the way it will hold on the stark market. It’s essential...
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...Strategies for Small and Medium-Sized U.S. Businesses Interested in Investing in China: Lessons That Can Be Learned from Taiwanese Companies Xun Wang Department of Sociology/Anthropology University of Wisconsin -Parkside David A. Ralston Management Department Michael F. Price College of Business University of Oklahoma Investing in China has been one of the hottest and most critical issues in the ever-changing business world since the early 1980s. Huge amounts of foreign investment poured into China during this period primarily because of China's huge market, plentiful cheap labor, and rapid economic development (Davies, 1998; Luo, 1998; Shi, 1998; Sun & Tipton, 1998; Wang & Ralston, 1995). From 1980 to 1988, the number of foreign-joint ventures approved in China increased from 348 to 15,955, and the amount of foreign capital pledged increased from $1.7 million to $28.2 million (Pomfret, 1991). The foreign investment in China totaled $27.5 in 1993 and that amount rose to $37.5 billion by 1995. At present, there are over 318,000 foreign funded companies in China with the total amount of realized foreign investment from 1978 to 1998 totaling $250 billion (Shi, 1998). While the interest in investing in China is worldwide, two major investors are the U.S and Taiwan (Pomfret, 1991; Shi, 1998; Sun & Tipton, 1998; Walker, 1996; Wang & Ralston, 1995;). What is also interesting to note is that while almost all U.S. companies investing in China are large multinational corporat...
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...other hand, the State will be a producer of public goods, play a regulatory role to level the playing field and create conducive environment for the private sector to take the lead in driving economic growth. This philosophy is evident in almost all policy statements made since 1986 and in particular after 1996. The private sector has started playing an ever- increasing role in creating incomes and employment. Small and Medium Enterprises (SMEs) account for a large share of the enterprises active in Tanzania. In fact Small and Medium Enterprises are the emerging private sector and do form the base for private sector-led growth. 3. SMEs, important as they are to the economy, have been facing a number of problems despite the on-going reform programmes. This is due to a number of factors, one of which is a persistent culture that has not recognised the value of entrepreneurial initiative in improving the lives of the people. Other factors include complex, bureaucratic and costly legal, regulatory and administrative environment where SMEs are at a greater disadvantage than their counterparts that are larger in size. The high cost of compliance to...
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...SMES' MARKET ENTRY STRATEGY: SUBSTITUTION INSTEAD OF NICHING Guan H Lim, Khai S Lee and Soo J Tan Abstract Existing research seems to suggest that the obvious strategy choice for SMEs, given the fact that they do not have plentiful resources, is to is to seek market niches. However, the very fact that SMEs do not have plentiful resources may mean that they would not be able to niche successfully beyond the short term. The bigger firms who have initially neglected the niches may try to wrestle the niche away from the SMEs, especially if the SMEs have successfully developed the market into a size that is sufficiently big and profitable. A better strategy choice for the SMEs might be to offer products/services that are substitutable to, but differentiated from, that offered by the incumbent bigger firms. This paper, through the use of deductive logic and actual case examples, shows why a substitution strategy might indeed be a better strategic choice for the SMEs. Introduction Conventional wisdom (see for examples Perry, 1987; Waterworth 1987; and Kotler, 1996) suggests that niching is the strategy choice of SMEs given that SMEs have limited resources. They do not have plentiful financial resources, and very often are also short on manpower especially those with the necessary managerial skills and marketing expertise. However, it is this very lack of resources that may impede the SMEs' ability to niche successfully and sustain its market entry in the long run This is because, in...
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...(Business Monitor International, 2006). As a result, China's SMEs are now facing an economy flooded with foreign capital, and with a more open economic climate than in previous years, but also a much more competitive economy, where many of their previous practices are no longer relevant. This piece aims to examine the effect of these changes on the strategies of Chinese SMEs by first examining the role of the SME in the economy, then analysing the strengths and weaknesses of the Chinese SMEs, and the opportunities and threats that have arisen from China's WTO membership. The piece will then examine Chinese SMEs from a strategic perspective, and the impact the the WTO membership has had on said strategies. Finally, the piece will give strategic recommendations for Chinese SMEs that wish to take advantage of the opportunities that WTO membership offers, and also for those SMEs that wish to avoid the challenges it poses. The Role of SMEs in both the International Perspective and the Chinese Perspective Academics have long realised that small and medium enterprises grow to become the major corporations and businesses of the future (Davis et al., 1985). As a result of this view, greater attention has been given to the role of small and medium sized enterprises (SMEs) in contributing to the economic growth of countries over the past twenty years in countries all over the world. Due to the importance of the role that SMEs play, for the last 15 years governments have urged by academics...
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...EG1413 Critical Thinking and Writing Assignment 2: Position Paper Social Media: An Unexplored Marketing Tool by local SMEs E12 Team Members: Anthoni Giam (A0085111U) Chen Ziyang (A0086387M) Ying Chuan Ong (A0074798H) 1. Background Small and Medium Enterprises (SMEs) have always been crucial for the case of Singapore and as seen from Figure 1, they make up about 99% of the enterprises in Singapore (Singstat, n.d.). SMEs here refer to businesses with annual sales turnover of not more than $100 million or employing no more than 200 staff (SPRING, 2011). Moreover, the importance of SMEs in Singapore’s economic landscape is highlighted by how SMEs “form an important pillar of the city-state's economy, employing 56 percent of workforce and contributing 42 percent of gross domestic product (GDP).” (People, 2007) If the SMEs lose their competitiveness, many workers in the SMEs can be adversely affected and even lose their jobs which could destabilize the society. This is also highlighted by Singapore's Deputy Prime Minister and Finance Minister, Tharman Shanmugaratnam who said that the transformation of Singapore's SMEs is also essential to the incomes and living standards for Singaporeans (TodayOnline, 2012). Note: Adapted from “Composition of Enterprise Size,” by Singstat (n.d.). Social media has a huge role in the marketing field today as it allows companies to interact with in a casual manner while publicizing the companies’ products. It is defined to be...
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...(B) Small Medium Enterprise (SMEs) 9 (C) Social Media and SMEs 10 Methodology 12 Findings 13 Discussion 21 Conclusion 25 Recommendation 26 Reference 27 Abstract The purpose of the study is to determine the effectiveness of social media as marketing tool for Small Medium Enterprise (SMEs) Companies in Malaysia. The objectives of the study are, first, to determine the level of influence social media on customer knowledge towards the Malaysian SMEs companies brand, products and services and second, to investigate the causes and effects of the usage social media as marketing strategies for SMEs companies in Malaysia. The study was conducted based on a quantitative approach. A set of questionnaire was distributed to 30 random respondents. In addition, the research pointed out that there are a lot of factors influencing the success of social media as a marketing strategy. The conclusion drawn from the research was that internal and external factors are affecting the effectiveness of social media as one of the marketing tools. One of the major limitations encountered in the research was time constraint. Future researchers are advised to conduct this research for a longer period of time in order to collect more data. Keywords: effectiveness, social media, SMEs in Malaysia, quantitative Introduction In today’s technology driven world, social media have become a venue where retailers most of them use it to expand their marketing strategies or campaign to acknowledge their...
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...CLUSTERING STRATEGY IN SME DEVELOPMENT : An Integral Development Supports By: Noer Soetrisno Presented at : 2004 APEC INFORMATIZATION POLICY FORUM FOR SMALL AND MEDIUM ENTERPRISES July, 15-16, 2004 SMEs in Economic Development 1. There is no Regional or Global Consensus on SME The Coverage of SME definition are Commonly Associated With : - SMI (Manufacturing Industry) - SMI + Services (Selected) - All Sectors Except Agriculture - All Sectors Include Agriculture 2. Variable to Measure SME - No of employee (Industry) - Assets (Fixed Asset, Asset other than lands building) - Sales 3. The Role of SME in Economic Development - Contributor to Value added (Growth) : About 57% of GDP - Provider of Employment : Contribute to 99.5% of total employment - Potential Contributor to Export : Share about 16-21% of total export - Flexibility and Resilience to Shocks : continue to survive during the crisis, micro and small enterprises more resilience, but medium enterprises are not fully recovered from the crisis up to 2003 •SME Cluster Development in Indonesia - Cluster development approach has been adopted since 1970’s * Small industry zone * Export processing zone * Agglomeration of SME activities - At present exist about 9800 units of Small Industry Cluster : * 78% Low technology group * Productivity / worker : • Low technology IDR 970 Thousand (100) • Medium technology IDR 2 Million (212) • High technology IDR 8.24 Million (849) Government Policies...
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...A brand orientation typology for SMEs: a case research approach Ho Yin Wong and Bill Merrilees Department of Marketing, Griffith Business School, Griffith University, Gold Coast, Australia Purpose – This research paper aims to discuss the role of branding strategy in small and medium size enterprises (SMEs). Design/methodology/approach – The literature on traditional brand management and strategic branding are first reviewed. Four critical constructs are identified, namely brand distinctiveness, brand orientation, brand-marketing performance and brand barriers. The literature, in combination with (eight) case research interviews, has been synthesised to develop a new theory of SME branding. Findings – The paper reveals that the theory identifies the ladder of SME brand orientation, moving from minimal brand orientation, to embryonic brand orientation to integrated brand orientation. Further, it is suggested that most SMEs will be on the lower steps of the ladder. A model of the brand strategy process has been formulated, specifying links between brand barriers, brand distinctiveness, brand orientation and brand-marketing performance. The study puts forward some propositions about the pre-conditions to move higher up the ladder, particularly to an integrated brand orientation. Research limitations/implications – The major limitation of this research is that it is based on eight case studies. It is suggested that a quantitative survey be carried out to enhance the generalisability...
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...International Journal of Business and Management Tomorrow Vol. 2 No. 7 Scope and Strategies in Financing of SMEs by Banks Onkar Chand Rana, Asst. Professor, Sri Sai University, Palampur, H.P. Professor K. Ravi Sankar, IGNOU, New Delhi Abstract Scope and Strategies in Financing of Small and Medium Enterprises by Banks- a case study of State Bank of India at Pathankot, was conducted with a view to examine the problems of SMEs of Pathankot area, examine the scope of further financing SMEs by Banks in Pathankot area and devise requisite strategies for financing of SMEs by Banks in Pathankot area and thereby increase their SME loans portfolio which would help the banks and ultimately the country to achieve the projections as per Indian vision 2020- a document by the Planning Commission according to which the Industry share in GDP which is 26% at present is projected at 34% and the service sector share which is at present 46%, is projected at 60% by the year 2020. On the analysis of the secondary data, which was obtained from Banks Performa Reports, Annual Returns and Annual Credit Plans, it was observed that huge scope exists for the banks in Pathankot centre for intensive financing of SMEs which is observed from the data that at present CD Ratio at the centre is 58.71% (below the prescribed national average of minimum 60%) and the share of SMEs to total advances being 31.58%, which need to be increased to at least 50%. The primary study was conducted on the basis of random...
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...enterprise (SME) in Malaysia. The first category comprises agriculture, services, information and communication technology (ICT) with less than 50 full-time employees or annual sales turnover fewer than RM 5 million. The second included manufacturing and agro-industries with less than 150 full-time employees or annual sales turnover not exceeding RM25 million. Small and medium sized enterprise (SME) is the engine for economic growth. Development of SME brings technology development and employment creation. Michael and John (1998) have noted that relative to larger firms, SMEs are well prepared for facing the challenges of increasing competition and globalization of markets. Planning is usually done first by entrepreneur when decided to start a SME. This is because everything else will be depends on the planning makes by the entrepreneur. A business plan plays an important role in obtaining funds and as a blueprint for the enterprise operates towards success. As Peel and Bridge (1998) and George and Jonathan (2002) reported, there is a strong connection between the success of a SME and its long-term planning. In Malaysia, National SME Development Council (NSDC) was established in June 2004. It acts as the highest policy-making body to chart the direction and strategies comprehensive and coordinated development across all sectors of the economy. Some examples of successful SMEs in Malaysia are Unico Holdings (Unico) and Hockpin Precision Sdn Bhd (HP). A SME have better...
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...Marketing Strategies and the Difference Level of Sales and Profits Performance of the Batik SMEs in Malaysia. Mohd Zulkifli Mokhtar & Wan Nur Syahida Wan-Ismail Faculty of Management and Economics, University Malaysia Terengganu, Malaysia Correspondence: Mohd Zulkifli Mokhtar, Faculty of Management and Economics, University Malaysia Terengganu, Mengabang Telipot, 21030 Kuala Terengganu, Terengganu, Malaysia. E-mail: zulkifli@umt.edu.my Abstract In this research, the business owners of batik SMEs were analyzed on their marketing strategies. The objective is to examine if the marketing strategies of high performance batik SMEs differently from low performance batik SMEs. The high and low performance batik SMEs were categorized based on their annual sales and profits for three consecutive years. For this purposes, the questionnaires were distributed among 186 batik business owners in Malaysia. The data collected were then analyzed using Mann-Whitney U Test and Chi-Square Test. The result found that the high sales and profits performers are not only focused in local market, but they expand their sales out-of their states. For high sales performers, they are frequently advertised their businesses and using various promotional tools. Hence, efforts should be made by the low performers to find and expand their sales outside of their states, advertise their businesses more frequently and not only depends on personal network as promotional tools. Using various promotional...
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...Internationalization of SMEs Overview: 1. Introduction 2. Motivation for Internationalization of SMEs 3. Strategies for Internationalization of SMEs 4. Risks and Opportunities 5. Internationalization of SMEs – Best approach 6. Conclusion 7. References Introduction In Europe companies with less than 10 employees are considered to be micro-firms, those with less than 50 employees are small-firms and those with less than 250 employees are considered as medium-firms. In the US however the size of small firms sums up to 100 employees and medium sized firms may have less than 500 employees. SMEs are key actors in the world economy because they are an important part of GDP and play a big role for employment. Since today’s world becomes more and more globalized it is important that firms can compete on an international level. Big enterprises often choose to internationalize their business but for them this process mostly isn’t as risky as for SMEs, because while big firms may lose parts of their firm budget if something goes wrong, SMEs have to fight for their existence and may disappear at all if they choose a wrong approach of internationalizing. Usually small start-up companies do not survive longer than the first 5 years therefore it is very important for SMEs to take the right steps in order to become successful. Motivations for Internationalization of SMEs There are different types of motivations for going international. These are...
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...Customs Clearance Procedure for Exports Prepared By: Policy Planning & Strategy (Revised on July 15, 2002) Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pk HEAD OFFICE Waheed Trade Complex, 1st Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore Tel: (042) 111-111-456, Fax: (042) 5896619, 5899756 Helpdesk@smeda.org.pk REGIONAL OFFICE PUNJAB Waheed Trade Complex, 1st Floor, 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore. Tel: (042) 111-111-456 Fax: (042) 5896619, 5899756 helpdesk@smeda.org.pk REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE NWFP Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk Customs Clearing Procedure for Export Policy, Planning & Strategy TABLE OF CONTENTS 1. Introduction to SMEDA 2. Role of Policy Planning and Strategy Group 3. Custom Clearing Process for Exports 4. Flow Chart Custom Clearing Process of Exports 5. Annexes: Sample Forms & Certificates 02 02 03 05 06 1 Customs Clearing Procedure for Export Policy, Planning & Strategy Introduction of SMEDA The Small and Medium Enterprise Development...
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...also called small and medium enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. These are the most common businesses found across most of the world’s economies. The World Bank Review on Small Business Activities establishes the commitment of the World Bank Group to the development of the small and medium enterprise (SME) sector as a core element in its strategy to foster economic growth, employment and poverty alleviation. In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization. So we can say that the role of Small and Medium Enterprises (SMEs) is indispensable for overall economic development of a country particularly for developing countries like Bangladesh. It has drawn a lot of interest among policy makers, academics, businessmen and people in general. Government of Bangladesh has highlighted the importance of SME in the Industrial Policy-2005. SMEs have been identified by the Ministry of Industries as a ‘thrust sector’. As the SME sector is labor intensive, it can create more employment opportunities. For this reason government of Bangladesh has recognized SME as a poverty alleviation tool. As a result they will enhance the standard of living in rural areas. SMEs (Around the world) : Although the definition of what an SME is varies across nations, the most widely used...
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