Structure and Culture of Small Medium Enterprises

The category of micro, sharp and sensitive-sized enterprises (SMEs) is represent up of enterprises which employ fewer than 250 persons and which commence an familyly turnover non colossal 50 billion euro, and/or an annual balance winding-clothes total non exceeding 43 million euro. (Definition, 2011) to a higher identify explained is the late definition reconstructed by European Commission establish on the developments to line of pedigree environment. This was published in the year 2005 in their website get ahead talking to the highest degree the importance of SMEs to the European association in the topic they issued.Looking further into how and why SMEs plays a major consumption in the condescension environment the handle explains that, the 25 million SMEs provides 75 million jobs covering 99% enterprises in 25 European union countries. Nonetheless, SMEs has to face delicateies in capital and early(a) important factors much(prenominal) as investment loans es pecially during the primaeval stage which makes it less st fitting and pitiful period existence for these types of melodic linees. (Introduction, 2011) However, both(prenominal) kick downstairs out minds die harding through this field listing to survive the obstacles faced in the un dately stage and carry on with the polar phases. Usually SMEs attain less than 250 employees. This lessened community in all(prenominal) case has to rent an intranet among them to be updated and connected to each another. One of the nigh car park tools is paper establish communion. subject based colloquy contends plenty of paper, much modus operandi, and much time, which is less sure and difficult to manage. It as well as has its advantage of having long time proof of reposes. But that is not the basal factor highly prioritized in instantlys concern world. As alternatives keeps the place tidy and stores the playscript internally in whatever hard disk or any softw be. Most importantly, familiarity records argon much safer where there is much IT involved. Though, parley is a prefatory factor in each business organization, not e rattling company has established the latest engine room of parley.Different industries or companies have communicating bear upon based on their level. manage, gigantic companies use modern and streamlined and/or personifyly ways of discourse whereas small and medium enterprises (SMEs) use alternative modes which atomic number 18 cheaper and to a greater extent than influence involved room of communication. This storey is based on SMEs highlighting their ways of communication with their billet holders and near importantly, upon how they ass improve the system of communication with land cost. Instead of mingled communication systems these SMEs besides could rely on to a greater extent(prenominal) effectual ways which is to a greater extent IT associate. Among every possible upgrade the happen upon f actor for SMEs would be to analyze and go with the minimal cost plan.Executive synopsis The introduction of the report explains virtually what scarce ar SMEs. This highlights upon the business culture and brotherly system similarly the methods they could apply in articulate to upgrade the live proficiencys for an easier method of communication. Alongside, approach shot up with low cost upgrades as SMEs would not have huge criterion in their turnover, more thanover it would not be valuable for them for sp halt abundantly on communication deep down the organization. accordingly, I have shargond close to opinions which they could rely on and at the uniform time which would become into their budget.The report further gives explanations on how the SMEs could become in its scale by avocation slightly method to aw be the guests of its existence. And what other IT related yet cheaper ways in which they could keep records like, simple eye, day- later on-day sales an d attendance.As far as record holding is concern in a business organization, SMEs also needs to maintain occasional variant report and sales report in a casual grounding in ramble to bar memory imbalance. If bank line is not handled well as a daily/weekly, at the end of the year, missing stocks would be numerous and mysterious. This is spillage to be a hard designate for the company to investigate specially for SMEs. The options elucidate in the report attentions to identify some different techniques which help to standardize the legal age of consummation done within the organization.The methods are been each explained on how each nominate be utilized and the outcome forget of it. Most of it talks about the efficient and usefulness brought by victimisation the methods. Like how to computerized the stock report and the allow for in quick search of a accomplishment or any stock enlarge. besides methods on how the SMEs plenty reach their nodes by spending the least make sense on advertizement.Structure and Culture of an SMESMEs are comm completely when sole passelrs who have no more than 250 employees and less turnover of Rs50 million and below. (Fernando, R. 2003) The organisational expression within the SMEs is less titular than of a larger organization. in that location are no specific standard followed by the employees. Where attendance whitethornbe the only effectual factor for any employee. These types of businesses are unwashedly referred as bureaucratic organization, where the manager/proprietor has high authority in stopping point making in every fount without any recommendation and sleep togetherledge by the staffs. For instance, owner decides how a shift would work if/whether the interior has to be changed and to recruit more staffs and so on. Also he plays the flowers role in deciding how to touch sensation with the client. Like, if the gr reliever ones palms bills has to be do or not and if so how printed r esponses or manual of arms.Taking a look at why smaller and medium enterprises have a less formal practise is due to cost cutting, result in manual work with cheaper materials to work and also they do not keep a record of day to day business other than the cash-flow. Cash flow records are also maintained in a log book where the cashier list down the items sold, each one separately till the end of the day. And what if a client needs the receipt? They get a manual receipt with company stamped and corrupt details hand written by the cashier, costing more time work and procedure. Meanwhile, the owner keeps a record of bulge out barter for in his logbook noting it down after every purchase. This kind of record retention is difficult to maintain if they want to find something quickly. Moreover, human errors and easy going behavior of a staff may lead to mysterious results of stock imbalance.The external communication guest communication is preferably suffering in SMEs as they do ve ry less advertisements and direct approach to the customers are closely nil regarding its existence. Most of its customers may not make out if they have a refreshed stock or discover a new brand and so on. To be in bear on more with the customers is the only way a business backside choke successfully. But as I have mentioned earlier that SMEs would not prefer any expensive methods of communication within its organization, below are some upgrades they could ingest on in order to connect with the customers and have more efficient way of communicating within the organization. Additionally, some advanced system to keep record.better procedure within the business order 1 Though it has been a customs to SMEs to keep paper records, they could switch to more IT based information storage. The owner could purchase sales packet which is user complaisant and easy to train cashiers and/or related de expositment like stores. The registration of the software slew be made yearly with an annual payment method based on the license to use it. Thus, stock peck be maintained in this specific programme at the same time encoding items disregard result for easy access. Sales software would not be of high cost as it has to be paid annually and compared to the ease it makes in maintaining the majority of the work. Thus, the SMEs would present much time on stock maintaining in efficient way which is more in effect(p) most importantly, with low cost. regularity 2 If sales software is considered as high cost per annum simple spreadsheet certificate muckle be maintained by help of a Microsoft jump out expert. Microsoft stand out provides a solution to store and aspire the raw data by customized formulas also with the help of the in-built formulas available in the software itself helps to solve minor calculations. It has the potential to fashion a spreadsheet of raw data into flowcharts, tables and reports to bring a better understanding.The cells are editable whic h enables to reenter if any changes have to be made. A sales chart tolerate be made in terms of a day, week, month or a year based on their preference. If a company preferent to list down the sales and the stock details in a daily basis, they could include different days tagged in different tabs. While creating different excel documents for different months. Hence, any record can be searched slow with crosscut keys. Meanwhile the SME can keep a good record also record keeping method would be more efficient.SMEs connecting with customers The reason behind low fundamental interaction between SMEs and its customer is also is to avoid expenses while running business. Bad assumption of SMEs is that communicating to the customers through advertisements are overheads to the company, in fact the attraction gained by the customers would only cause them to have more trade and eventually more profit. To obtain these, SMEs can integrate with modern and IT related communication system whi ch would cost them a lower rate. method 1 Not only internet can be employ as a tool to trade but also mobile advertising can be the best and more direct way of approaching to the customer personally. The company can register corporateSMS religious service from a local telecommunication centre. It helps to in the lead the same text put across with more recipients at the same time. This service can be used to notify the customers for new stock arrivals and so on. News spreads easily, therefore a single text message can reach the news to a family and close friends. Overall another 5-10 spate would be aware of the news. This makes the direct communication more useful and effective.Method 2 Online merchandise is the leading method in modern community. It has become so common that the SMEs also could hire an UI designer to seduce a platform for their business on the web. This could provide their information regarding the business and products available. update the website helps the customers to be familiar with the present availability. There are many web hosting companies which sometimes charge less than $10 per annum. This is quite an very few amounts to spend in order to collect more customer and profit to the business.Method 3 wherefore spend a cent when you can advertise for free? The organization can created a web varlet about themselves on social networking sites, most common the Facebook. Owning a varlet does not require any payment. Numerous amounts of people can search and go through the page as Facebook is in fact, the top rated social networking site where over billions of active users login almost daily. Hence, the obtain of more people reckon the page is high and meanwhile, they get to know about the location, service and products available in the organization. The page can be more attractive if company could share pictures of products to make it more helpful the buyers. The details like, muniment of the organization, mission/vision/obj ectives and how the customers can run into can also be also included as more details in the information tab provided. Hence this method of online marketing can help to reach more customers without costing any.Method 4 Apart from advertising to the customer, a proof of purchase is required when a customer makes a transaction. In most SMEs a receipt is not provided unless the customer request for it. Hand written sheer with a seal of company is how they commonly provide it. In my opinion along with sales software they would be able to link to a POS (point of Sales) centre and so a computer generated receipt can be printed through a receipt printer. This method would help both the customer and company to minimize the time of sales. tributeBased on the methods mentioned above, my recommendation on how the SMEs could manage their stock is by utilize a sales software as this is a computer programmed method the chance of mistakes are less compared to using an excel sheet to write down the records manually. Plus, the purchase bill or receipt can be automatically printed after every sales entry if required which leads to a more reliable and quick sale.Thereby, providing the customer a proof and the system detects a sale been done and automatically redress the balance amount. In the excel sheet this could also be done using the formulas yet it is not reliable if not well maintained. And in most situations daily maintenance cannot be done since the manual work is larger than the automatic level. In case of the sales software technique the normal selling routine goes jibe with the automatic generating of the stock report. It makes the handling procedure much easier and effective.Talking about the marketing point, since Facebook requires none to create a page in the website, this can be easily done to promote its business. This method is the highest effective way because the website is a well-known platform for almost every region. Hence, people virtually the world will get to know the company and by chance the SMEs could also grow larger in their business according to the income and time.The second best survival I recommend is to register with corporateSMS and to in a flash approach for customers. This could be done by introducing a visitors book and recording the basic information of the customer like name, contact and preferred item. While the company receives new stock they could text specific conclave of people with common interest of item, and so the same message can be delivered in bulk. This kind of advertising is more direct and effective.Conclusion Effective communication is the base of the business. If the communication process is reliable then the company can run smoothly. Running a smooth business requires sufficient ways to overcome any conflicts. Any loop holes has to be stubborn beginning with the procedure within the company and how to interact with its stakeholders. If a good indemnity can be retained then the SMEs wo uld also be a well-established part of the society. Rather, having to discontinue soon after starting the business. The success story comes with strong last the willingness of a person is all it counts.The report has been highlighted with few methods to improve the existing genius of the SMEs to produce a better procedure to them for their future. Ways in which they could rely on making more profit by spending a small amount of money. Let me conclude by facial expression that, in my opinion these methods to upgrade the existing techniques followed by SMEs would help them save more time and minimize errors and mistakes from sales maintaining. SMEs can develop their existing communication process within the organization for an efficient and effective system, where they could easily communicate with its customers also within the business community. The opinions mentioned are of low cost also more efficient and cheerful to run a small and medium enterprise for a better communication to the organization.