StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Globalisation and Small Medium Enterprises - Essay Example

Cite this document
Summary
Globalization is an ongoing process that presents opportunities; as well as risks and challenges. It has expanded the prospect for technological advances and for effective integration into the international economy. It has increased prosperity and the potential for countries to benefit…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Globalisation and Small Medium Enterprises
Read Text Preview

Extract of sample "Globalisation and Small Medium Enterprises"

Download file to see previous pages

executives are required to make frequent visits to foreign markets to meet foreign distributors and to participate in trade missions and trade shows. Global strategic planning is increasingly becoming essential for SMEs.IntroductionGlobalization as a business concept came to the forefront some twenty years ago. There is much more to globalization than just business conducted through export-import activities and foreign direct investments (FDI). Globalization of enterprises means the set of operations or coordinated actions, which an enterprise may take to make its presence felt in other markets or to benefit from resources originating from other markets.

And for the SMEs, with their limited resources, it is one of the toughest choices to make because of the numerous risks inherent in it. A number of SMEs, which are quite prosperous locally, fail to rise in foreign markets. Emerging SMEs in the new economic order in most of the growing market economies as well as in countries in transition are constantly in pressure to cope with the challenges of the opening market economies, especially in wake of the enlargement of the EU. For instance, Austria's inclusion into the EU brought fresh opportunities for the Austrian SMEs, however it brought considerable threats as well, for they come into confrontation with a more complex and dynamic environment.

This demands an adapted system of planning and control-tool to secure and strengthen their competencies on part of the marketing-management in SMEs. In recent years, a slew of international strategies for the SME have been analyzed and forwarded by OECD countries, however, there exist a considerable variance regarding the importance and the utilization. Yet, an area, which deserves a fair. They are worried, that there will be an effect of exclusion of SMEs, which will be pushed to the margin of this process to the advantage of better financed and more internationalized giant corporation.

In some cases this risk may be a real one." "the majority of our sample enterprises have experienced an evolution in line with the Internationalization Stages Theory, they equally use many other types of inter-enterprise accords (strategic alliances).These more flexible methods insert themselves between the more "popular strategies" within the Internationalization Stages theory (see figure 2). It is plausible to believe that the utilization of accords, as well as alleviating the problem of constraints on resources, which is a frequent problem among SMEs, opens the path towards the adoption of more important strategies as the enterprises commits itself more and more in the foreign market.

"5 "Often their (that means Entrepreneurs) first attempt at moving outside their local market is to Europeanise their activities. At a European level we are trying to make it easier for them to make that leap forward. It began with the single market process that generated a great deal of excitement at the beginning of the 1990s.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Globalisation and Small Medium Enterprises Essay”, n.d.)
Globalisation and Small Medium Enterprises Essay. Retrieved from https://studentshare.org/miscellaneous/1524682-globalisation-and-small-medium-enterprises
(Globalisation and Small Medium Enterprises Essay)
Globalisation and Small Medium Enterprises Essay. https://studentshare.org/miscellaneous/1524682-globalisation-and-small-medium-enterprises.
“Globalisation and Small Medium Enterprises Essay”, n.d. https://studentshare.org/miscellaneous/1524682-globalisation-and-small-medium-enterprises.
  • Cited: 0 times

CHECK THESE SAMPLES OF Globalisation and Small Medium Enterprises

The Ways Of Competitive Advantage Development

hellip; Small and medium enterprises exhibit a variation in terms of market orientation as well as brand orientation.... In addition, commercial banks, investment banks, and other financial institutions help the enterprises through the provision of credit facilities and guidance on feasible investment destinations (Reijonen 2012).... enterprises have adopted unique policies and practices that have to ensure their stability or growth.... These enterprises are vital to the process of driving innovation and competition not only in the US but also in the world at large....
7 Pages (1750 words) Assignment

Small and Medium Enterprises

Small and medium enterprises (SMEs) are considered a key component of the local market, as they serve the customised needs of the local people and local industries.... mportance of SMEsSmall and medium enterprises (SMEs) play an important role in a nation's economy.... hellip; But times have changed with the globalisation regime multinational enterprises have made a distinctive mark on the local markets as well.... The global financial crisis has also impacted the functioning of this sector quite adversely, because they do not have the desired backup of resources, which is available to the larger enterprises....
5 Pages (1250 words) Essay

Small and Medium Enterprises of Switzerland

The author explains the importance of SME enterprises in Switzerland and the strategic importance of SMEs and identifies the sector and geographical region they are operating.... nbsp;… SME either Small or the Medium-Sized enterprises generally serves as the whole Switzerland, by providing the full range of various services and products from the fixed-line and also from the mobile communications to data service, internet, maintenance as well as the operation of the whole IT infrastructure....
14 Pages (3500 words) Assignment

Small Business enterprice

Though the definition of such companies vary from country to country and from industry to industry but predominantly, the companies that have work… The growth and prosperity of the small and medium enterprises have been more felt in the developed nations as it is perceived that the success of such organizations contributed towards the success of The Contribution of the Small Business Sector to the UK Economy The present world has witnessed increasing influence of the small and medium enterprises towards the development of the economies....
2 Pages (500 words) Essay

Employment Problems in Small and Medium-Sized Enterprises in the UK

The Department for Business and Skills estimated the SMEs to be 99% of all enterprises contributing £1,589 billion to the UK economy as of 2008.... The European Commission and McQuaid (2003) gave distinctions to a small and medium sized enterprise.... However, the growth of SME… According to Boyes & Melvin (2002, p....
5 Pages (1250 words) Essay

How Globalization Affects small businesses

Many small and medium enterprises are not able to realize how this phenomenon is influencing the business environment.... Cost reduction measure versus high quality output is a major goal of the profit oriented small enterprises operators.... ?? Such an approach to discussing the issue of globalization will evoke the interest of the reader due to the sensitivity of the question in respect of the widespread startup firms and increasing competition in small and medium enterprise in this era of globalization (Friedlander, Edward and John 56)....
2 Pages (500 words) Essay

Factors Affecting the Growth of Small Medium Enterprises

The aim of this research "Factors Affecting the Growth of small medium enterprises " is to identify factors that determine the business success of SMEs.... Aims of the research include: to find out the factors affecting SMEs business success; to find out the extent to which these factors affect SMEs....
8 Pages (2000 words) Research Proposal

Global Challenges Impacting SMEs

This report is aimed at identifying and analysing the different kinds of challenges that are being faced by the Small and Medium Scale enterprises while functioning in the present day dynamic, intensely competitive, concentrated and demanding integrated global business environment.... … As the report declares small and medium sized enterprises (SMEs) are businesses in which the number of human resources employed for below certain pre-defined limits.... For this purpose, the SMEs have to first identify the challenges and sources of challenges and prioritise the same so that they can prepare suitable strategic management plans and business development plans which are to be implemented for reinforcing the sustainability, growth and success of these enterprises....
10 Pages (2500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us