Financial and Strategic SWOT Analysis: MNC Versus SME
Introduction:
This report looks at the benefits and challenges SME in working with MNCs, and examines strategies for establishing SME-MNC connections and relationship, allowing them to open new horizon & improve their abilities to expand and prosper. For MNCs, working with SMEs can bring benefits such as lower costs, enhanced innovative capacity, and increased flexibility in responding to changing conditions. The JAR submission format would layout are in following sequence of: Introduction; Reason for choosing the article; Article Summary; Article Critique; Concluding Comments and last but not lease, References.
Reason for choosing the article:
It was a clear decision to select this article mainly due to:
* Working in MNC(Hewlett Packard Singapore) for many years aliasing with SME, subsidiaries(Agilent) and vendors very often for support on purchasing equipment, components and engaging services to my manufacturing department.
* Upon completing reading the article, I’m very much do feel strongly related to the issues faced by SME (eg: realism with clarity on view of SME constraint mentioned in the article faced by them which I did not take into much consideration before during the process when working with them.)
* Feeling connected with this article as when going into details during article selection process, eager and motivated to naturally want to do more researching on other reports and review and I felt very fruitful even after completing this article review.
Article Summary:
Shameen, Prashantham & Julian, Birkinshaw, both the authors of this article conducted five years research on the many attributes, hurdles & issues on SME connecting relationship and fostering collaboration with MNC. As globalization of trade & investment accelerates and for SME to grow & combat in a highly competitive business environment, decision on available investment opportunity options like focusing on home markets segments,
This report looks at the benefits and challenges SME in working with MNCs, and examines strategies for establishing SME-MNC connections and relationship, allowing them to open new horizon & improve their abilities to expand and prosper. For MNCs, working with SMEs can bring benefits such as lower costs, enhanced innovative capacity, and increased flexibility in responding to changing conditions. The JAR submission format would layout are in following sequence of: Introduction; Reason for choosing the article; Article Summary; Article Critique; Concluding Comments and last but not lease, References.
Reason for choosing the article:
It was a clear decision to select this article mainly due to:
* Working in MNC(Hewlett Packard Singapore) for many years aliasing with SME, subsidiaries(Agilent) and vendors very often for support on purchasing equipment, components and engaging services to my manufacturing department.
* Upon completing reading the article, I’m very much do feel strongly related to the issues faced by SME (eg: realism with clarity on view of SME constraint mentioned in the article faced by them which I did not take into much consideration before during the process when working with them.)
* Feeling connected with this article as when going into details during article selection process, eager and motivated to naturally want to do more researching on other reports and review and I felt very fruitful even after completing this article review.
Article Summary:
Shameen, Prashantham & Julian, Birkinshaw, both the authors of this article conducted five years research on the many attributes, hurdles & issues on SME connecting relationship and fostering collaboration with MNC. As globalization of trade & investment accelerates and for SME to grow & combat in a highly competitive business environment, decision on available investment opportunity options like focusing on home markets segments,
References: Brouthers, K.D & Nakos, G (2004) SME Entry Mode Choice and Performance: A Transaction Cost Perspective. Entrepreneurship Theory and Practice. Robert M. Grant. (2010) Contemporary Strategic Analysis, 8 Edition, John wiley & Sons Ltd. Husain, I.(2003) Pakistan’s Export Competitiveness in Global Markets, http://ishrathusain.iba.edu.pk/speeches/globalization/29-may-03-2.pdf. Pakistan National Environment Plan (PNEP), 1991. Pakistan National Conservation Strategy, 1.p.3. [15 Feb 2013] Hollenstien, H. (2005) Determinants of International activities: are SME´s different? Small Business Ecoomics (24) 5, p. 431-450. O 'Dwyer, Michèle & O 'Flynn, Eamonn, 2005. "MNC-SME strategic alliances - A model framing knowledge value as the primary predictor of governance modal choice," Journal of International Management, Elsevier, vol. 11(3), pages 397-416, September. Shameen, Prashantham & Julian, Birkinshaw, 2008. “Dancing with Gorillas: HOW SMALL COMPANIES CAN PARTNER EFFECTIVELY WITH MNCS.” CALIFORNIA MANAGEMENT REVIEW VOL. 51,NO. 1 CMR.BERKELEY.EDU. FALL. The Conference Board of Canada, Small Companies, Big Connections: The Benefits and Challenges for SMEs in Working With MNCs, 32 pages, September 2009. http://www.conferenceboard.ca/e-library/abstract.aspx?did=3208. [17 Feb 2013]. World Bank. (2007) Doing Business in South Asia 2007. http://www.doingbusiness.org/southasia. Small and Medium Enterprise Development Authority, (2007).Developing SME Policy in Pakistan, SME Issues Paper - for Deliberation by SME Task Force., Policy Planning & Strategy Department, Small and Medium Enterprise Development Authority. http://www.smepolicy.net.pk/SME_Issues_Paper.pdf. [15 Feb 2013]