Post on 22-Dec-2015
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Small & Medium Enterprise (SMEs)ManagementDr. Dina Preston-Ortiz
Dr. Dina Preston-Ortiz
Introductions◦ Faculty
Academic Background Small Business Owner
U.S. Small Business◦Small Business Defined◦Summary
Agenda
U.S. Small Business Ownership Definition What is a small business?
◦ Home-base to several hundred employees◦ Independently owned and operated◦ Not dominant in the field◦ Meets specific industry size and standards for
income and number of employees (SBA)
Small businesses serve as an entry point into the U.S. economy for new or previously slighted workers:
◦ women-owned small businesses; for instance; generate nearly a trillion dollars in revenues annually and employ more than 7 million workers.
Contribute to innovation◦ Small businesses produce 13 to 14 times more patents per employee than do
large firms.◦ Small businesses employ 39 percent of high-tech workers
scientists; engineers; and information technology workers; generating the majority of innovations that come from U.S. companies.
These businesses are able to pioneer new alliances and partnerships
According to the U.S. Small Business Administration (2012), small firms represent:
99.7% of all employers, generate 60% to 80% of new jobs annually and account for 97% of all U.S. exporters.
The U.S. service exports have grown more than 289% faster than exports of goods and play a major role in fortifying the U.S. economy.
Since 1971, the U.S. service sector has generated a trade surplus that has consistently reduced the U.S. trade deficit. (p.1-8)
Examples of U.S. Export Services
U.S. Economic Impact of SMEs Business
Accounting TechnicalAdvertising Health CareBusiness services FinancialConsulting Professional ServicesEngineering Public RelationsEntertainment Telecommunications
Closed System/Mechanistic◦ Bureaucratic
centralized information Open System/Organic
◦ Virtual/technology environments decentralized
Changing shape of organizations in 21st Century◦ Hourglass◦ Cluster◦ Virtual Organization◦ Learning Organization
Management Implications? Flexibility Awareness of how culture influences behavior (Cultural Intelligence)
High context vs. low context Individualist vs. collective cultures Monochronic vs. polychronic time dimensions Internpersonal space Language and religion
SME Globalization & Management Structures
SMEs Entrepreneur & SME Business
Entrepreneurs, Intrapreneurer business owners, and managers.
Characteristics◦ Risk takers◦ High tolerance for failure◦ Resourcefulness◦ Good with people◦ Deals well with
uncertainty
Pros◦ Flexibility◦ Superior customer service◦ Development innovative
products◦ Fill small market niches
Cons◦ Fewer resources◦ Financial limitations◦ Management
inadequacies◦ Tax burdens
Characteristics Pros & Cons
Small Business Process
Small Business Start-Up Process Crafting a Business Plan
Select an Idea Start-up Buy existing Franchise
Build a Business Plan Marketing plan/ financials
Obtain Financing Debt Equity Venture Angel
Build Resources Factors of Production
Executive summaryIntroductionMarketingFinancialsStaffing NeedsResume of the principals
Small Business Management
• Management Skill• Technical• Knowledge• Human Relations• Conceptual• Decision Making
• Management Functions• Planning• Organizing• Directing/Leading• Controlling
• Organizational Culture
Top Management Long range strategic
plans Public relations
Middle Management Intermediate goals
tactical plans/processes
First Line Managers Short-term goals
Operational
SMEs Planning & Business Decisions
• Strategic• Primary objectives• Mission Statements• SWOT Analysis
• Tactical• Implements strategic plan• Outlines what organization must
address• production, marketing,
personnel, finance and plant facilities
• Operational• Day to day activities
• Adaptive/Contingency• Plan B• Crisis management
• Address the problem• How it will be fixed• Communication to the public
• Programmed decisions• Nonprogrammed
• Problem/opportunity recognition
• Develop alternative course of action
• Evaluate alternatives• Select and implement
alternative• Follow-up
Decision Making Planning Levels
SMEs Strategic Planning Process
Complete SWOT Analysis:◦Strengths (internal)◦Weakness (internal)◦Opportunity (external)◦Threats (external)
Define organization’s mission statement◦ What business are we in?◦ What customer do we serve?◦ How do we develop the organization’s capabilities and focus it’s efforts?
To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (Starbucks, n.d.)
Google’s mission is to organize the world’s information and make it universally accessible and useful.
(Google, n.d.)
Complete a SWOT Analysis on your University Department Strengths Weakness Opportunities Threats (T)rends
Write a mission statement that will lead the college department in the upcoming year based on your results. Share with class
Apply
Define Small Business U.S. Economic Impact of SMEs Business SME Globalization & Management
Structures Small Business Process Small Business Management SME Planning Levels & Decision Making SWOT Analysis: Strategic Planning Tools
Summary & Questions
Kreinter, R. (2012). Management. New York, New York: Houghton Mifflin.
Ebert, R. & Griffin, R. (2012). Business Essentials. Upper Saddle New Jersey: Prentice Hall.
Starbucks (n.d.) Our Starbucks Mission Statement. Retrieved from http://www.starbucks.com/about-us/company-information/mission-statement
Google (n.d.) Google Company. Retrieved from http://www.google.com/about/company/
References