Small & medium enterprise (SME) is very important in every country because SMEs contribute most in the country's economy. The characteristics of SMEs include: managed by owner in a personal way, relatively small market size, independent, free from outside control, and company size is not large.
Besides, the SMEs should consider the Porter Five Forces in order to ensure survival:
1) Potential of entry (barriers)
2) Power of supplier
3) Power of buyer
4) Potential for substitutes
5) Existing rivalry in industry
Moreover, SMEs have their own lifecycle. So they have to implement the right strategy so that the company can survive in the industries. Besides strategy, financial planning, operation, human resource & quality, and sales & marketing are important to the SMEs too. The graph below shows that all the components linking and affecting each other.
Furthermore, leadership is also very important to the SMEs, as a charismatic leader, they possessed the characteristics show as bellows:
In this paper, we are going to benchmark a SME.
The reason for benchmarking is because we can learn more from the SMEs regarding how they start up and operate their business. By the way, the thing that we should learn is the SME's key success factors, which they implement it in their business very successful and the best practise. Best practice helps the firm to flourish in the industry. The process or cycle of benchmarking is shown as below:
In addition, SMEs normally do not prefer or use 4Ps, they prefer to apply innovation and change, and apply others to satisfy customers' needs and wants. Innovation and change is very critical to the success of SME. In order to compete with others, creativity always offset obsolescence. The connection showed as below:
As a conclusion, SME has to make good...