International Journal of Business, Management and Social Sciences Vol. 1, No. 1, 2010, pp. 59-64
INTERNATIONAL JOURNAL OF BUSINESS, MANAGEMENT AND SOCIAL SCIENCES www.ijbmss-ng.com © 2010 MultiCraft Limited. All rights reserved
A SWOT analysis of small and medium scale enterprises implementing total quality management S. D. Kalpande1*, R. C. Gupta2, M.D. Dandekar3
Department of Mechanical Engineering, MET’s Institute of Engineering, BKC, Nashik, Pune University, Pune, 422003, INDIA Department of Industrial and Production Engineering, Shri G. S. Institute of Technology & Science, Indore M.P., 452003, INDIA 3 Department of Industrial and Production Engineering, Shri G. S. Institute of Technology & Science, Indore M.P., 452003, INDIA * Corresponding Author: e-mail: firstname.lastname@example.org, Tel +91-9209293782 2 1*
Abstract Small and Medium scale Enterprises (SMEs) playing a vital role in nation’s economy. Many studies have demonstrated the positive impact of Total Quality Management (TQM) practices on Small and Medium scale enterprises. These have relied on manager’s self assessment of performance in reaching the objectives of study. It is also observed that many SMEs are ineffective and some are closed down. The main problem of those SMEs seems to be the low quality of their product and rise in competition in the market. To stand in the market, it is necessary for SMEs to face new challenges by adopting proper strategy. SWOT (Strength, Opportunity, Weakness, and Threats) analysis is one of the techniques to undertake a more structural analysis to formulate the best strategy. SWOT is the combination of four major terms as Strength, Opportunity, Weakness and Threats. The study shows that “Competition” and “Rise in expectation of Customers” are the major external issues for the SMEs of this region. The main threats observed are competition from large & multinational businesses, financial stringency and technological obsolescence. The aim of SWOT analysis is to identify the extent to which the current strategy of an organization and its more specify strength and weakness are relevant to, and capable of dealing with the changes taking place in the business environment. Every unit must be aware of their Strength, Opportunity, Weakness and Threats. To succeed in any field, weakness must be overcome through strength and threats must be transferred into opportunities. Keywords: SMEs, TQM, SWOT Analysis, Structural Analysis. 1. Introduction Total Quality Management also known as TQM, is a continuous effort to improve quality and achieve customer satisfaction. It is primarily an organizational strategy considered as a change program to achieve excellence by producing quality service as defined by the customer (Garg, 2008). On the study of TQM effect on organizational performance, most research has focused on analyzing the relationship between the implementation of different and several types of performance (Poonsook et al., 2005). The causal analysis result shows that dynamism, munificence and complexity influence the degree of implementation of the main TQM principles. The most relevant effects emerge as a result of the environmental dynamism, and the least effects are due to munificence. Similarly, the dimensions of TQM have an impact on different types of performance. The model can be used by organizations to assess their level of TQM success depending on specific environmental characteristic. Study report shows that there is a growing number of SMEs in India yearly. In spite of this, it is also observed that many SMEs are ineffective and some are closed down. The main problem of those SMEs seems to be the low quality of their product and rise in competition in the market. Ineffectiveness may result in the locking up of resources, wastage of capital assets, loss of production and increasing unemployment. In addition the ineffective units are mainly affected by the reduction of loan-able funds by financial...
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