The Pros and Cons of Sme
[Pick the date]
|[Type the document subtitle] | Yasmeen Sayed |
TABLE OF CONTENTS
Page
1. Executive Summary 3 2. Introduction………………………………………………………………………….. 3. Drivers for going global 4. Understanding the Political, Legal and Regulatory environment in International Business……………………………………………………………………………...3 5. International Market Research 4 6. The 4 ps of International Marketing 4 7. The other Ps of International Marketing 4 8. Market Entry Strategies 5 9. SWOT ANALYSIS- PROS AND CONS 5 10. xxxxxxx 5
EXECUTIVE SUMMARY
Many, if not most, small to medium-sized enterprises (SMEs) are subject to the impacts of globalization. This paper seeks to explore the extra dimension of challenge to their already difficult environments when they have to venture into the world-trade system
We will discuss the concerns of expansion of SMES by examining the pros and cons for going global, by briefly studying the macro and micro economic factors, the drivers that have contributed to Globalization, the strategies and methods adapted by SMES in order to go international and in what ways can the SMES manage the intense international competition.
The following findings:
Research findings include the stretching of capabilities in supporting customers in unfamiliar markets, the internal competition for funds in pursuing multiple international markets, the importance of word-of-mouth marketing, and the pressures on R&D functions.
This paper identifies common pressures and challenges facing SMEs when going global, and uses causal loop diagramming to capture the drivers and consider longer-term dynamic implications.
We will choose a particular market and evaluate the pros and cons for entering and gloing global.
Small businesses are usually confronted with unique challenges in the area of international markets. These challenges are associated with the size of these organizations.
Major changes have taken place in the institutional framework governing world trade and production during the 1990s. Increasing market integration associated with the formation of regional trading blocks and the successful completion of the Uruguay Round and the ensuing liberalization of trade combined with significant advances in communications and information processing have effectively reduced the significance of national boundaries. The opening up of international markets has expanded the scope for greater cooperation and/or intensification of competition. Within this context, enterprises have had to adopt an international perspective. Even businesses that focus primarily, or even exclusively, upon the domestic market must be internationally competitive in order to secure long-term survival and growth (Karagozoglou and Lindell 1996).
However, whereas large firms and particularly transnational companies (TNCs) have had considerable experience in global markets, the majority of small firms have only recently adopted an international perspective in their strategies. More specifically, a growing number of publications suggests that these firms are confronted with greater difficulties in accessing international markets than their larger-scale counterparts (Smallbone and Wyer 1995). Small businesses are usually confronted with unique challenges in the area of international markets. These challenges are associated with the size of these organizations. More specifically, uncertainty is a key feature of the small business environment. The inability to control prices because of lack of market power, dependency upon a relatively smaller customer base, and, finally, limited access to policy makers cause the external environment of a small firm to be more uncertain than that of a large business.
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|[Type the company name] |the pros and cons of sme’s going international |
|[Type the document subtitle] | Yasmeen Sayed |
TABLE OF CONTENTS
Page
1. Executive Summary 3 2. Introduction………………………………………………………………………….. 3. Drivers for going global 4. Understanding the Political, Legal and Regulatory environment in International Business……………………………………………………………………………...3 5. International Market Research 4 6. The 4 ps of International Marketing 4 7. The other Ps of International Marketing 4 8. Market Entry Strategies 5 9. SWOT ANALYSIS- PROS AND CONS 5 10. xxxxxxx 5
EXECUTIVE SUMMARY
Many, if not most, small to medium-sized enterprises (SMEs) are subject to the impacts of globalization. This paper seeks to explore the extra dimension of challenge to their already difficult environments when they have to venture into the world-trade system
We will discuss the concerns of expansion of SMES by examining the pros and cons for going global, by briefly studying the macro and micro economic factors, the drivers that have contributed to Globalization, the strategies and methods adapted by SMES in order to go international and in what ways can the SMES manage the intense international competition.
The following findings:
Research findings include the stretching of capabilities in supporting customers in unfamiliar markets, the internal competition for funds in pursuing multiple international markets, the importance of word-of-mouth marketing, and the pressures on R&D functions.
This paper identifies common pressures and challenges facing SMEs when going global, and uses causal loop diagramming to capture the drivers and consider longer-term dynamic implications.
We will choose a particular market and evaluate the pros and cons for entering and gloing global.
Small businesses are usually confronted with unique challenges in the area of international markets. These challenges are associated with the size of these organizations.
Major changes have taken place in the institutional framework governing world trade and production during the 1990s. Increasing market integration associated with the formation of regional trading blocks and the successful completion of the Uruguay Round and the ensuing liberalization of trade combined with significant advances in communications and information processing have effectively reduced the significance of national boundaries. The opening up of international markets has expanded the scope for greater cooperation and/or intensification of competition. Within this context, enterprises have had to adopt an international perspective. Even businesses that focus primarily, or even exclusively, upon the domestic market must be internationally competitive in order to secure long-term survival and growth (Karagozoglou and Lindell 1996).
However, whereas large firms and particularly transnational companies (TNCs) have had considerable experience in global markets, the majority of small firms have only recently adopted an international perspective in their strategies. More specifically, a growing number of publications suggests that these firms are confronted with greater difficulties in accessing international markets than their larger-scale counterparts (Smallbone and Wyer 1995). Small businesses are usually confronted with unique challenges in the area of international markets. These challenges are associated with the size of these organizations. More specifically, uncertainty is a key feature of the small business environment. The inability to control prices because of lack of market power, dependency upon a relatively smaller customer base, and, finally, limited access to policy makers cause the external environment of a small firm to be more uncertain than that of a large business.
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|[Type the company name] |the pros and cons of sme’s going international |