Key Strategic Management In Small Enterprises Commerce Essay Example

mobility, among other factors. From a global perspective, small businesses hold a unique position in global economic affairs.

Multinational corporations dominate the global market and present a formidable challenge to small businesses in developing countries. The United Kingdom distinguishes itself by having a substantial number of small and medium enterprises (SMEs) compared to other nations. However, it is recognized that the majority of these new companies are relatively small in size. Consequently, SMEs make a lesser contribution to employment and GDP compared to OECD countries. Nevertheless, SMEs remain essential in stimulating innovation and sustaining competition within the business market.

Additionally, small and medium-sized enterprises (SMEs) have greatly contributed to fostering an entrepreneurial culture and enhancing economies' adaptability. In several countries, these small businesses are crucial for stimulating economic activity and generating employment opportunities. Consequently, there is a substantial interest in recognizing their societal impact. Political leaders, interest groups, professionals, and diverse stakeholders actively participate in advocating for the growth of small enterprises and establishing favorable work environments.

The scientific community is also involved in these endeavors, which may be slightly confusing to some. Many small business owners resist the push for growth and are content with staying small. Health and safety policies are often met with strong opposition from small businesses, even though many have good relationships between owners and employees. Previous research on environmental analysis in SMEs has looked at the relationship between different environmental conditions and the use of different information sources by executives for developing competitive strategies. The research found that in highly changing and unpredictable conditions, executives used low rich information sources less frequently. In contrast, under stable and expected circumstances, they used low

rich information sources more than high rich ones. The findings suggest that the environmental conditions influence the type of information sources (low rich or high rich) used by executives in selecting a competitive strategy (such as cost leadership or differentiation).

Jennings and Lumpkin ( 1992 ) argued that the information sought by CEOs varies depending on the competitive strategies of their companies. This indicates that strategy can influence scanning behavior and be influenced by it.

Objectives of the study

Interest in small-scale enterprise in the UK has significantly grown in recent years. This has been accompanied by a substantial increase in research focused on this type of economic activity. However, much of the research conducted lacks high quality due to researchers' failure to acknowledge the unique challenges posed by studying small businesses.

Despite the UK's little concern addition, its importance in the economic system is often underestimated (Storey, 1994). One reason for this is that there is still a tendency to view little concerns as less significant compared to the focus of newspapers and television business programs. The main objective of this paper is to examine and evaluate little endeavors and their operational strategies.

Research Questions

• What is the basis for comparative advantage for little endeavors?
• How effective is strategic management for little endeavors?

Methodology

• The methodology of this thesis involves both secondary research and primary research.
• Firstly, through a literature review (secondary research), potential characteristics of the thesis are identified.
• A literature review helps prioritize aspects of the observed situation deemed worthy of inclusion.

While it would be ideal to use

a large number of administrations, it is not practical.The ability to detect and initiate actions restricted the research worker's speed and accuracy.

So, only the most important and relevant points will be included because it is impossible to include everything. Previous research and old theories determined which characteristics of the simulation deserve the focus of attention.

Structure of the thesis

This paper discusses issues in small businesses and examines the effectiveness of the strategic management process through literature review and research on companies in Parc Menai Bangor.

Chapter 2 - literature Review

Research on small businesses has been progressing over the past twenty years. There are various academic journals that specifically focus on small businesses in national economies.

There is a belief that these studies encompass all aspects of the subject. However, upon examination, there are still areas that require further development in this subject. Additionally, there is a significant need for more practical research in management and marketing issues faced by small enterprises. These issues, although they have occurred before, are not widespread enough to be considered numerous. It must be noted that these problems, particularly those related to strategy and planning, are undoubtedly valuable but still insufficient.

Traditionally, the research referring scheme has been based on world-famous, successful corporations. Craven et al (1994) emphasize that the concept and experience of the scheme have focused on the issues and experiences of large companies. The research in entrepreneurship has discussed the distinctions between entrepreneurial and small business ventures for some time. It concludes that entrepreneurial ventures are small, growth-oriented, strategically-innovative companies, while small business ventures are neither growth-oriented nor strategically advanced.

However, scholars often treat both types of ventures similarly in terms of both concept and theory, which creates clear problems given their differences.

The failure to understand the application of strategic direction theories to entrepreneurial and small business ventures has led to missed opportunities for advancement in the understanding of new house endurance and growth. This is particularly true for small houses, as there is a greater focus on the strategies of larger houses. However, this presents a significant opportunity to refine strategic direction theory for the contexts of entrepreneurship and small businesses. Therefore, this paper aims to explore the extent to which small houses can engage in strategic pursuits for competitive advantage, in order to assess the relevance of strategic direction theories. Both entrepreneurial ventures and small businesses play important roles in economic growth and job creation in society (Solomon, 1986; Storey, 1994). Given their significance, it can be assumed that not all small houses are lacking innovation or strategy, as stated by Carland and colleagues (1984). If most houses face competition in some form, then it is reasonable to expect that all small houses should theoretically pursue some form of strategy.

If previous research focused on comparing non-growth-oriented little houses with growth-oriented houses, there may have been missed opportunities to better understand how theoretical perspectives in strategic management apply to entrepreneurial and small business ventures.

Theory development

The constellation approach in small businesses.

The constellation approach is characterized by terms like holistic, universalistic, integrative, synergistic, universal. It evolved from older approaches which were replaced by quantitative methods in business management. The concepts of this approach lost influence in the second half of the 20th century. Nowadays, similar but

updated approaches are gaining popularity in both German and English management literature. The constellation approach allows for a dynamic perspective: The growth of a company should be seen as a series of constellations over time.

The company's history is the history of a series of constellations, similar to demands of the resource-based position. However, the entrepreneur's interventions will steer the company's development towards the desired constellation. Typically, each constellation is unique, but similar constellations can be grouped into typologies. Familiarity with certain types of constellations can help identify the strategic position of a particular venture and assess its prospects for future growth. Additionally, it can help determine interventions in the sequence of typical phases in the history of constellations to avoid risky paths and move towards favorable ones.

The constellation attack can be easily combined with the life rhythm attack in strategic direction theory. Smaller houses are likely to differ in the types of schemes they pursue, but growth is a fundamental premise of strategic direction theories. Although the majority of houses are and remain small, they pursue schemes to survive and may not successfully achieve the growth schemes of larger houses.

Such strategies for survival can be characterized by techniques such as utilizing minimum operating expense ( Ebben ; A ; Johnson, 2006 ; Winborg ; A ; Landstrom, 2001 ) , selecting an attractive industry ( Stearns, Carter, Reynolds, ; A ; Williams, 1995 ) , and building a loyal customer base ( Liao ; A ; Chuang, 2004 ) . On the other hand, strategies for small business growth can be characterized by tactics such as focusing on management and workforce training to increase

the size of the employee base, issuing equity to external stakeholders to fund growth, developing technological expertise to monitor and manage growth, seeking flexibility to adapt to new Small Business Strategies and changing markets, and introducing new products ( Storey, 1994 ) . Since most small businesses appear to pursue survival strategies ( Carland et al. 1984 ) , and survival primarily depends on a loyal customer base ( Reider, 2008 ) , we decided to narrow our focus of small business strategies to concentrate on exploring two strategic approaches consistent with building a loyal customer base -- providing the highest possible quality, and offering better customer service ( Liao & A ; Chuang, 2004 ) . Since another strategic approach to small business survival includes minimal use of resources ( Ebben & A ; Johnson, 2006 ; Winborg & Landstrom, 2001 ) , we also include this approach within the scope of our study.

Within the following subdivisions, we will conduct a literature review on various schemes and propose testable hypotheses regarding the impact of their usage on the durability and success of a small house. By examining how these prevailing business strategies relate to endurance and growth, we aim to shed light on the distinctions and applicability of strategic management theory in the small business context.