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1
Reproduced in this document is an example of a students PhD proposal which has
since been
developed successfully, and the student has now graduated from Hull. The work
developed a lot
from the original proposal for example, it became more interpretive and
qualitative in nature.
You will work with your supervisor during the course of your PhD to develop your
work
appropriately. The proposal below therefore should be read in this context. We are
making it
available to give you an idea of the sorts of things you need to think about inconstructing your
proposal. A good proposal will show that you have a decent understanding of what
you want to
explore and how you might do that, that you have engaged with the relevant
literatures, and that
you can say why you think your study will be significant or interesting.
You might also want to take a look at the Academic Profiles of CMOL faculty
members and see the
range of work they are engaged in, the sorts of methods they use, and try to
identify how your
study might relate to their interests.2
PROPOSAL FOR Ph.D. THESIS
Area of Study
MANAGEMENT IN THE LOCAL GOVERNMENT
Proposed Title:
STRATEGIC MANAGEMENT PRACTICES IN THE LOCAL
AUTHORITIES IN MALAYSIA:
FACTORS ASSOCIATED WITH THEADOPTION OF
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STRATEGIC MANAGEMENT PRACTICES IN THELOCAL
AUTHORITES IN MALAYSIA3
1. INTRODUCTION
Strategic management has been touted as one of the effective management tools
in strengthening organization performance through effective decision making and
systematic strategic formulation and implementation. Although strategic
management was more prevalent in the private sector since the concept was first
developed, the interest of using strategic management in the public sector has
increased over the last decade (Smith, 1994). Since 1980s there have been a
series of reforms taking shape in the public sector, resulting from increased
awareness on the importance of quality in the public sector. According to Osborne
and Gaebler (1992), that strategic management appeared to be part of a package
management innovations design to reinvent or modernize the public sector.
Strategic management was found to be an effective management tool in
transforming a bureaucratic public sector to a more responsive and innovative
administration.
Local Authority in Malaysia (LA) is a government at local level in the
Malaysian Three-tier, Administrative System. It is responsible in providing urban
services as well as implementing economic, social, physical and urban
development within its gazetted administrative boundary. The role of LAs as the
catalyst of economic development as well as political and social stability is
undoubtedly critical given its status, as the government at the third level with
certain
autonomy power measured to enhance the increasing demands from the
communities for a more customer-oriented and higher standard of urban services. It
is this context that the study intends to investigate to what extent strategic
management is being adopted and practiced by the LAs in Malaysia and to
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determine factors associated to LAs in adopting a strategic management framework
as suggested by the western literature.
2. PROBLEM STATEMENTS4
While strategic management is widely practiced by firms and other profit oriented
organizations in this country, its adoption by public sector particularly in
government
agencies at operational level is less understood. Strategic planning in Malaysia is
still insubstantial and unknown in the sense that there is an absence of documented
proof of its practice (Mohamad , 1988).
This study is undertaken to fill this knowledge gap. It is imperative to study on how
strategic management is being adopted by government agencies as a tool of
enhancing performance their performance. LAs are chosen as the setting because
of their significant role as the third tier government in Malaysia. Not only LAs are
important in the provision of urban services to the taxpayers, they are also critical
as a catalyst in economic growth and well-being for the country.
3. RESEARCH QUESTIONS
a) What is the extent of adoption of strategic management practices among the
LAs in terms of:
i) Completeness of systems;
ii) Established direction and mission;
iii) Depth of analysis;
iv) Implementation task and skills; and
v) Control and feedback mechanism
b) What are the contributing and impeding factors in the LAs in successfully
adopting the strategic management practices;
c) How do factors such as leadership traits, organization culture and organization
structure have impact in the degree of adoption strategic management by the
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LAs.
4. RESEARCH OBJECTIVES5
The main objective of the study is to examine the adoption of strategic
management
practices in the Local Authorities in Malaysia. In so doing, the study will seek:
a) to investigate the extent to which strategic management is adopted by the LAs,
in line with the strategic management framework that suite its environment;
b) to ascertain factors that contribute and impede the smooth adoption of strategic
management in the LAs;
c) to see how factors such as leadership traits, organization culture and
organization structure have impact in adopting strategic management in the
LAs; and
d) to highlight any other finding that are of interest and contribute towards the
subject of strategic management in government agencies.
5. SIGNIFICANCE OF THE STUDY
Finding of the research will add to the knowledge and understanding of the subject
of strategic management and its application by the LAs. This study should be
significant in the sense that it will:
a) Allow the identification of the concept and framework of strategic management
that takes into account the nature of work and environment of the LAs;
b) Support and enrich theory and model of strategic management in public
organizations that have similarities in their nature of service with the LAs;
c) Generate greater awareness among public organizations on the importance of
having a proper and practical strategic management framework as a vehicle to
organizational effectiveness;6
d) Provide useful knowledge on factors that might have impact and contribute to
the successful adoption of strategic management in public organizations.
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6. SCOPE OF THE STUDY
The study will take all the organization of LAs in Peninsular Malaysia as the setting.
Organization of the LAs will confine only to the office of the LAs, being secretariat or
the administrative arms of the LAs.
7. THEORETICAL FRAMEWORK OF THE STUDY
The objective of the study is basically two-pronged. Firstly s to examine the extent
of adoption of strategic management practices in the LAs and secondly is to see
how factors such as leadership traits, organization culture do and organization
structure have impact in the adoption of strategic management that suite the
environment of the LAs.
Gathering of data on the extent of strategic management adoption in the LAs
will be based on models of strategic planning by notable strategic management
gurus such as Steiner (1979) and Glueck (1982). Amongst the dimension to be
investigated are:
vi) Completeness of systems;
vii) Establish direction and mission;
viii) Depth of analysis;
ix) Implementation task and skills; and
x) Control and feedback mechanism
The theoretical framework of the study is depicted by the diagram below:7
Factors Associated With the Extent of Strategic Management
Adoption in the Local Authorities in Malaysia
Leadership Traits
Organization Culture Size
Organization Structure Income
INDEPENDENT MODERATING DEPENDENT
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VARIABLES VARIABLES VARIABLES
8. DEFINITION OF VARIABLES
The dimensions of each independent variable are have been identified as follows:
a. Leadership Traits
- Degree of ability
It refers to ability to organize, supervise and dealing with issues. This variable is
adopted from Jameson and Soule (1991);
- Degree of Visionary
It refers to ability to redefine the purpose of organization and embody new
purposes into structure and systems; ability to design long-term plan and ability
to forecast incoming issues. This variable is adopted from Bryson J.M (1988);
- Locus of Control
Locus of Control refers the extent to which individuals believe that they can
control events affecting them. Individuals who have a high internal locus of
control or referred to as internals, believe that the event in their lives are
primarily the result of their own behaviour and actions.
Individuals who have a high external locus of control or referred to as external,
on the other hand believe that the events in their lives and organizations are
Extent of Adoption of
Strategic
Management
Framework8
primarily determined by chance, fate or other people. This variable is adopted
from Julian Rotter (1966) and Burger J.M. (1986).
b. Organization Culture
- Level of Team work.
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Refers to desirability of the personnel to work in a group accomplishing a given
task or assignment.
- Level of Commitment,
Refers to willingness among the personnel to complete the task at their level
best and having sense of pride for achieving organizational task.
c. Organization Structure
- Degree of Authority.
Refers to clarity of line authority from top management to the lowest level;
clarity of duties, responsibilities and authorities of each role in the organization
and degree to which authority is delegated. Degree of structural flexibility in
terms of adopting changes. Adopted from Fayols fundamental management
functions.
- Extent of Coordination.
Refers to level of interdependence in work situations. How programs and tasks
are coordinated and what are the tools or mechanisms used to coordinate.
Adopted from Fayols fundamental management functions.
- Level of Communication
Refers to the existence of a strictly upward, downward and multidimensional
communication as oppose to a little two-way communication. Also refers to
level of participation of personnel in organization communication. Adopted from
Likerts Model of Organization Design.
d. Dimensions of Dependent Variable
The dimensions the dependent variable i.e. the extent of adoption of strategic
management by the Las will comprise of completeness of systems; established 9
direction and mission; depth of analysis; implementation task and skills; and
Control and feedback mechanism.
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The determination of those dimensions were based on Certo and Peter
(1990).These dimensions has been adopted with some modification from earlier
working of Steiner (1979), Van Gigch (1978) and Glueck (1982).
9. RESEARCH METHODOLOGY
Research Population
The population of this study is all Local Authorities (Las) in Malaysia. Currently
there 143 LAs nationwide with the break down of 97 in Peninsular Malaysia and
46 in Sabah and Sarawak. Nevertheless, this study will only take all Las in
Peninsular Malaysia as the setting. This is to ensure uniformity and
homogeneity as all Las in Peninsular Malaysia are created and governed by the
same law, i.e. Act 171 as opposed to LAs in Sabah and Sarawak which are
established and administered by their own states ordinance. All the 97 LAs in
Peninsular Malaysia come within three principal categories, namely City
Councils, Municipal Councils and District Councils. Table II shows the
distribution of local authorities according to various states in Peninsular
Malaysia.
Table II: Peninsular Malaysia: Local Authorities by States, 2004
State
No. of Local Authorities
City
Council
Municipal
Council
District
Council
Total
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Johore 1 4 9 14
Kedah 1 2 8 11
Kelantan 1 11 12
Malacca 1 1 1 3
N. Sembilan 3 5 8
Pahang 2 9 1110
Perak 1 3 11 15
Perlis 1 1
Penang 2 2
Selangor 1 7 4 12
Terengganu 1 6 7
Fed. Teritory 1* 1
Total 6 27 64 97
* Kuala Lumpur City Hall Source: Ministry of Housing and Local Government.
Unit of Analysis
Unit of analysis is organization i.e. the Local Authorities in Malaysia.
Data Gathering
A perception survey will be conducted to measure variables using structured
questionnaire. Questionnaire will be sent to all LAs via post. Measurement will use
Likert Scale. In addition, interviews will also be conducted at selected LAs to solicit
views from selected respondents especially top management in the LAs. Other
data will be gathered from records at Public Complains Bureau (BPA), departments
files, records and other documents. Secondary data will be obtained from relevant
Parliament Acts, relevant research and seminar papers, annual reports, statistical
abstract, magazines, newspapers and journals.
10. LITERATURE REVIEW
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Strategic Management An overview
Strategic management is defined as a systematic process for managing the
organization and its future direction in relation to its environment in a way that will
assure continuous success as well as secure from surprises (Ansoff 1984, Berry
1995). Strategic management encompasses the process of determining
organizations mission and goals; managing strategy formulation; strategy
implementation; and strategy control.11
Strategic management can be viewed as a series of steps covering the tasks
of analyzing the opportunities and threats that exist in the external environment;
analyzing the organizations strengths and weaknesses within the internal
environment; identifying agency stakeholders; establishing organizations mission
and goals; formulating strategies by matching the organizations strengths and
weaknesses with the environments opportunities and threats; implementing the
strategies; and finally engaging in strategy control activities to measure the
implementation progress and ensure achievement of the stated goals.
Ansoff (1984), clarifies that the first step in the evolution of strategic
management is known as strategic formulation, it began in 1950s when firms
started to invent a systematic approach in deciding on how and where the firms will
do its future business. The progress of which managers jointly formulate the
strategy was known as strategic planning. The term strategic management was
subsequently introduced to include environmental assessment and strategy
implementation. Thus, strategic management is defined as being where strategic
planning is coupled with strategy implementation.
Steiner (1979) and Barry (1986), argue that strategic planning and
management, regardless of why public and not profit organization engage in it, can
help an organization achieve the clarify future direction; think strategically and
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develop effective strategies; establish priorities; deal effectively with rapid
changingCircumstances; build teamwork and expertise; and solve major
organizational problems; and improve organizational performance.
Chart I: Generic Model of Strategic Management12
ENVIRONMENTAL OPPORTUNITIES
AND THREATS
Macroenvironment Industry
Environment
ORGANIZATIONAL DIRECTION
Mission and Goals
STRATEGY FORMULATION
Corporate Strategy
Formulation
Business Strategy
Formulation
Functional Strategy
Formulation
STRATEGY IMPLEMENTATION
Organization Structure
Leadership
Power
Organizational Culture
STRATEGY CONTROL
Performance
Local Authority in Malaysia
As the study will focus on strengthening the local Authorities, a general
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overview on the Local Authority in Malaysia is essential to form a context of the
study. Beginning with the creation of Committee of Assessors in Penang in 1801,
the administration of LA was subsequently governed by Sanitary Board Enactment
in 1907, before it was grouped into two major classifications namely Town Board
Enactment in 1945.
The administration of LAs falls under the jurisdiction of the State
Governments. In its capacity as a local government, LAs, perform a wide range of
functions. LAs are the provider of various urban services; the authorized parties in
the formulation of local and structural plan; catalyst for social and economic
development; caretaker of urban environment protection and cleanliness; and tax
and revenue collectors. Apart from Act 171 mentioned above, there are two more
prominent laws that form the power of LAs, namely the Town and Planning Act
1976 and the Street Drainage and Building Act 1974. In performing their
multifaceted functions, the LAs derive their revenues from various sources,
including
taxes, rents and license fees, profit from trade, services and undertakings, income
13
from property assessment and revenue from federal and state governments
(Ahmad Kamaruddin, 1999)
The issue on weaknesses of the LAs have been discussed time and again
by many interested and effected parties. The Chief Secretary to the Government, in
his opening speech at the Annual Working Meeting or Senior Officials of Local
Government Authorities in 1998, reiterated on the importance of LAs to improve
their service to the people through a strong communication and feedback system;
effective enforcement; high integrity and transparency; prudent financial
management system; enhancing people participation in their programs; and
continuous efforts in inculcating quality culture in their organizations. Further to
that,
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Dr. Mohd. Zin Mohamed in his paper, called for a re-examination of the LAs in
various areas including the organizational structure; the scheme of services; the
competency building program; and the new dimension of managing LAs in the
current changing environment. This study is undertaken to fulfil those expectations,
in line with governments policy to bring quality to the lower levels of the
administration, under the spirit of Excellent Work Culture Movement.
Creating strong and excellent LAs will benefit many parties including the
taxpayers; stakeholders; and the country as a whole. The roles of LAs in the
revitalization of the current economic slow down is highly critical. As the authority in
approving various permits and licenses for many types of trades and business, as
well as the authorized agency in issuing the Certificate of Fitness (CF) to all
residential, commercial and industrial buildings before they can be occupied and
operationalized, one could understand how an effective LAs could contribute to the
well-being of the country. As a frontline organizations dealing with the public at
grass-root level, the performance of LAs cannot but reflect the image and credibility
of the entire government.
Strategic Management in States and Local Governments14
The importance of strategic planning and management practice as an
effective tool in strengthening the performance in the states and local governments
has become a subject of interest in many developed countries since the last fifteen
years. In the US, concerted efforts have been undertaken to empower states and
local governments aimed at enhancing the capacity of these authorities. Much of
such efforts were sparked by the idea of strategic management and organizational
transformation inspired by Osborne and Gaebler in their Reinventing Government
(1992).
Wechsler conducted a survey in 548 state agencies in the United States in
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1995 to assess their experience in strategic planning and implementation. The
survey discovered that a majority of the agencies (60%) currently use strategic
planning and management in their organizations. It was also found that leadership
in the individual agency is the main factor (88%) for state agencies to initiate
strategic planning in their organization, while almost all respondents chose desire
to set program and policy direction as the most important objective of strategic
planning and management. It was also agreed almost unanimously that
clarification
of direction and goals is the most important outcome that strategic management
help achieve in their agency.
In the United Kingdom, a survey by Flynn, Talbot and Colin (1996) of over 600
UK public service senior managers in 1994 identified the element of competition as
a main driving force for local governments to revisit their existing service delivery
system. It was discovered that competition generates the need for a new strategic
thinking, strategy formulation and implementation. However, it was also revealed
that the undertaking of strategic planning in most local governments is normally by
state governments.15
Strategic Management Implementation Model
The Harvard Policy Model and the Stakeholder Management Model are two
common approaches to strategic management in the public sector (Bryson 1989).
The Harvard Policy model was developed as part of the business policy courses
taught at Harvard Business School since the 1920s. In the Harvard policy,
strategists assess organizational strengths and weaknesses, identify opportunities
and threats, and seek to coalign the organization with its environment.
Orgranization are rejoined to build on strengths, overcome weaknesses, exploit
opportunities, and block threats (Nutt & Backoff, 1992). Stakeholder approach to
strategic planning are concerned with identifying individual and organization actors
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who have an interest or in the focal organization and it strategic program. This
model placed important role on the leadership of an organization to maintain good
relationship with the stakeholder who have influence in agencys direction and its
capacity for realizing its strategy.
Factors that influence the successful implementation of strategic management from
internal organization point of view relate quite closely with the generic organization
development model suggested by management experts such as
Mc Kinsey, de Bono, Ishikawa to mention a few. Summary of factors contributing
to organizations excellence under generic organization development model is
tabulated in the table below.16
Variables Explanation Sources
Leadership Leadership is the main driver of organizations change.
Leadership will lead the direction, influence and
motivate the behavior of personnel to channel their
efforts into the desired direction.
Kroll (1992), Howe
and Kaufman, (1979),
Ansoff, (1965, 1984),
Bryson (1989)
Culture/
Behavior
Identification of the right attitudes and behavior of the
people is essential towards achieving strategy and
objectives.
Kroll, (1992), Hamel
& Prahalad (1994)
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Systems/
Process
Ability to perform and operate effectively rely heavily on
superior work systems and process
Kroll (1992), Howe
and Kaufman, (1979),
Ansoff, (1965)
Organization
Structure
An organization structure (OS) must be aligned to put
the strategy into effect. OS will cover responsibility and
authority; job definition and description; and line of
command.
Kroll, (1992) Ansoff
(1965)Bryson (1989)
Human
Resource
Architecture
Human resource is the ultimate resource. Thus a strong
organization must be supported by an effective HR
Management.
Hamel & Prahalad
(1994) Bryson (1989)
Technology
Architecture
Technology is key in coping with dynamic competitive
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situation
Ansoff (1984), Hamel
& Prahalad (1994)17
11. ORGANIZATION OF THE STUDY
The organization of the study is planned as shown below:
PART I: RESEARCH BACKGROUND AND METHODOLOGY
Chapter 1: Introduction, Objective and Scope of the Study
Problem Statements
Research Focus
Objective, Scope and Significance of the Study
PART II: LITERATURE REVIEW
Chapter 2: Local Government in Malaysia
History of the Local Authority (LA) in Malaysia
LA in the Malaysian Three-tier System of Government
Laws and Regulations Governing the LAs
Roles and Functions of LAs
Issues Confronting LAs
Chapter 3: A General Overview of Strategic Management
Concept and Definition of Strategic Management
Historical and Evolution of Strategic Management
Schools of Thought in Strategic Management
Strategic Management Model and Dimensions
Chapter 4: Research Methodology
Research Design
The Population
The Survey and Interview Techniques
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Data Analysis18
PART III ANALYSIS AND FINDINGS AND CONCLUSION
12. CONCLUSION
This proposal is the first step of an endeavour to embark on a comprehensive
study on strategic management adoption in the LAs in Malaysia. It important to
see the extent of adoption and organizational factors that influence the application
of a practical strategic management practice in the LAs. It is hoped that the output
of study will be beneficial to all parties concerned while at the same time
contribute to the knowledge enhancement in the academic world.
13. BIBLIOGRAPHY
Ansoff, H. Igor (1965), Corporate Strategy, Penguin Books.
Ansoff, H. Igor (1984), Implanting Strategic Management, Prentice Hall.
Barry B.W. (1986), Strategic Planning: Workbook for Non-Profit Organizations, St.
Paul, Minnesota.
Berry, FS and Wechsler, B (1995), State Agencies Experience with Strategic
Planning: Finding From A National Survey, Public Administration Review,
MarchApril, 1995, Vol.55, No.2.
Bryson, J.M. (1989), Strategic Planning for Public and Non Profit Organizations,
Jossey-Bass Publishers.
Certo and Peter (1990), Strategic Management Process, Singapore, Mc Graw-Hill.
Flynn, N and Talbot, C (1996) Strategy and Strategists in UK Local Government,
Journal of Management Development, _ Vol. 15, Issue 2.
Glueck, W.F., et. Al (1982), Four Faces in Strategic Management, in Journal of
Business Strategy, Winter.
Joyce, P. and Woods, A. (2001), Strategic Management, Kogan Page Limited,
London.19
Kamaruddin, Ahmad, Bringing Quality to the Local Level, in Muhammad Rais
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Abdul Karim (ed.) Reengineering the Public Service: Leadership and Change in an
Electronic Age (1999), Pelanduk Publications.
Khandwalla, P.N. (1977), The Design of Organizations, Harcourt Brace Jovanovich,
Inc., New York.
Zin, Mohamad, in MAMPU, (1998), Laporan Mesyuarat Kerja PihakBerkuasa)
Tempatan, Kuala Lumpur: Malaysian Administrative Modernization and
Management Planning Unit.
MAMPU, (2000), Laporan Mesyurat Kerja PihakBerkuasa Tempatan, Kuala
Lumpur: Malaysian Administrative Modernization and Management Planning Unit.
Mohamad, Zainal Abidin (1988), Strategic Planning: An Exploratory Study of Its
Practice by Agro-Based Enterprises in Malaysia. Thesis submitted for the Ph.D.
degree in Business Studies, University of Edinburgh.
Nutt, Paul C. And Backoff, R.W., (1992) Strategic Management of Public and Third
Sector Organizations, Jossey-Bass Publishers, San Francisco.
Osborne, D and Gaebler, T (1992), Reinventing Government, Addison-Wesley,
Reading, Mass.
Peter, W., Pringle, CD, & Kroll, MJ (1992), Strategic Management,Text and Cases,
Allyn & Bacon.
Smith R.J. (1994), Strategic Management and Planning in the Public Sector,
Longman, Harlow.
Steiner, G. (1979), Contigency Theories of Strategy and Strategic Management, in
Schendel D.E. & HOFER, C.W. (eds), Strategic Management: A View of Business
Policy and Planning, Boston: Little Brown.
Van Gigch (1978), Applied General Systems Theory, New York: Harper and Row.
Wilkinson D, and Pedler, M (1996), Whole Systems Development in Public
Service, Journal of Management Development, _ Vol. 15, Issue 2.20
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SYNOPSIS OF
GROWTH OF In2O3, CuInSe2 AND CuIn3Se5 FILMS AND
ION BEAM STUDIES OF THEIR INTERFACES WITH Si
A THESIS
to be submitted by
P. MALAR
for the award of the degree
of
DOCTOR OF PHILOSOPHY
DEPARTMENT OF PHYSICS
INDIAN INSTITUTE OF TECHNOLOGY MADRAS
CHENNAI-600 036, INDIA
1. INTRODUCTIOn
2.
3. 2. OBJECTIVES AND SCOPE OF THE WORk
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IMPACT OF GLOBAL FINAICIAL CRISIS IN INDIAN
SME(SMALL AND MEDIUM COMPANIES/ENTERPRISES)
WITH SPECIAL REFERENCE TO TEXTILE SECTOR IN
TAMILNADU
Name of the Author ;G.Vairava Subramanian
Degree applied for ; PHd In Economics Dept
Date of submission ; 05/08/2011
Version Status ;Draft
Document Version ; MS word
Intruduction
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Small & midsized companies with the overall revenue of 1 crore-100
crores are there in India which is contributing to overall
GDP(Gross Domestic Product) to the tune of 8-8.5 %. Being the
major source of employment provider for the semi skilled and
unskilled labor population of India, this segment is the most
respected segment in India.
The sector is more or less dominated in to all ancillary units for
almost all the segment across India, very precisely,
manufacturing segment. The promoter of this type of companies
are basically, the domain experts and they have very thorough
knowledge in their segment of operation. Basically this type of
entrepreneurs are getting developed by way of their previous
experience in to some other companies and with their contact
getting developed with the parent companies, gaining theconfidence about their marketability, this companies are getting
started.
The promoters are investing very small amount of money as their
initial investment and engage only semi skilled labour along with
their personal involvement in the business in the initial stage of
operation. Over the period of time, when they start growing,
they start expanding their operation.
The impact for this specific sector was mainly because of sudden boost in
pre melt down period. Some of the key and note worthy activitieshappened in the sector during pre melt down period are as follows
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The industry was over optimistic because of the over demand for
their products,( pre melt down period.) Without thinking
professionally, the promotor started expanding their capacity
with additional manpower, without understanding the fact that,
in case of failure.
The manpower was also expanded very aggressively, with the future
need of employment, also competing with big giants in terms of
salary.(Normally, this industry is not the highly paid industry and
the employees are also understanding their capacity more
precisely, the employees of this segment are more loyal to their
promotor, suddenly, when there was an increase in labor
shortage for the bigger giants, they started looking to hire this
space employees, Because of the compulsion, where, the small
entrepreneur was forced to retain the labor by way of increasingthe salary and other perks without foreseeing the negative
impact expected in to India).
The entrepreneur has also been encouraged by the huge order book
for his products from their parent companies, thereby started
expanding his capacity in terms of business as well as his
personal wealth, (expecting huge profit from the business
looking in the size of order to his company, he started
expanding his personal wealth by way of increasing in life style,
change of car, change of House, buying Jewells, entertainmentetc, which resulted in to huge monthly outflow of funds for his
personal wealth creation in addition to his corporate liability)
Increased facilities for the labour like, lunch, pickup-drop from their
houses, tea/coffee/snacks etc, has definitely dented the profit of
the company.
Due to enhanced order book, working capital requirements has to
be met with high cost borrowing from the private lender, with
the assumption of increased profitability will support forservicing the high cost borrowing.
Delay in payment has also increased their interest liability with the
bankers by way of excessive out flow of money as interest.
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Excessive raw material ordered for the enhanced production has
also pare allay made the entrepreneur to earmark excess funds
for the payment to be made, resulted in to more inventory than
the normal level of maintenance.
Shortage of power supply in the last 2-3 years in entire India hasresulted in to low productivity with higher labor cost, as labor
will sit ideally during the electricity failure.
RESEARCH AREA
The specific research to be done
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8/3/2019 Impact of Global Finaicial Crisis in Indian Sme
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8/3/2019 Impact of Global Finaicial Crisis in Indian Sme
27/27