MGT601 SME Management Solved Assignment No. 2 Spring 2013
SME MANAGEMENT (MGT601) ASSIGNMENT NO. 02 for SEMESTER SPRING 2013 is announced and DUE DATE is 21ST JUNE, 2013. Total MARKS: 30
The small and medium enterprises (SMEs) are considered as the engine of
prosperity for the vast majority of people, particularly in case of the disadvantaged
segment in developing and developed countries alike. They accelerate economic
activity, job creation and capital formation for the common good rather than
increasing surplus for the few.
Taiwan, a small island country, hosts 97.8% SMEs. Taiwanese SMEs contribute
85% to the country’s GDP by engaging about 85% of non-agricultural labour force.
The vibrant SMEs of Taiwan have expedited economic growth making Taiwan the
sixth largest per capita ($16,400) earner in Asia and holder of the fifth largest
foreign exchange reserves in the world.
What does it really take to make a business successful? This is not an easy
question to answer, as each entrepreneur has a different definition of success. The
answer of success is too simple: “The key to a successful business is customer
service and retention. That is so much more important than marketing. An
entrepreneur is one man show, who has to make all decision regarding the
enterprise (Finance, Procurement, Marketing, HR, Supply chain etc).
Consider that you are the head of a small enterprise (Ayan Art Furniture) in the
furniture sector, who are planning to serve the classical furniture requirements of
homes and offices. The entrepreneur has facing a stiff competition from competitors
in term of getting sales and also lacks its marketing ability to actively locate its
business and find potential customers. The economy is dwindling, inflation is at its
peak, power crisis is prevailing and purchasing power is decreasing overtime.
In the light of above what kind of actions Ayan Art Furniture has to take to establish
its SME setup. Also what can be possible draw backs in selecting new venture
At least mention five possible SME’s sectors in Pakistan, which have tremendous
potential for growth.