• Analyze the industry in which a particular SME operates

Small and medium enterprises also referred to as SMEs, have been on a tremendous rise in the recent past. This is after several governments and federal states are working round the clock to provide incentives that encourage investors to invest in micro enterprises. in this case, we will analyze a SME in the manufacturing sector. Splendor Beauties is a SME that manufacture perfumes and other beauty products. Over the years, the enterprise has made great progress in terms of profits and increase in number of products sold.

In order to have a clear industry analysis, the porter’s five forces will be an effective tool for analysis. This is an analytical tool that is concerned with five forces in an industry namely; .competition within the industry, new entrants, bargaining power of suppliers, bargaining power of customers and threat of substitutes.

The industry is faced with a very stiff level of competition. This is because of the numerous organizations involved in manufacturing of beauty products. However, it is important to understand Splendor Beauties have been competitive due to the best pricing strategy and high quality products offered by the micro enterprise.

Potential of new entrants to the industry is very high. This is due to low capital requirement, little start up bureaucracy and there is existence of ready market as well as raw materials. To cope with this problem the firm must ensure that it maintains high quality product. The micro enterprise has also adopted a great differentiation strategy that promoting its brand.

Power of suppliers is also significant and has resulted to decrease in level of profits. The availability of so many firms in the industry leads to increase in demand for raw materials thus giving suppliers an upper hand in terms of bargaining. Splendor Beauties has however tried to cut its production costs in other areas such as human resource (Zapf, 2011).

Power of customers is also at significant levels. This is as a result of the increased number of producers. To deal with this menace, the firm has adopted a strategy of maintaining high quality product thus leading to brand loyalty. This will help maintain customers and still have a significant bargaining power in terms of prices.

Threat of substitute product is another factor considered in the industry analysis.  Perfumes and other beauty have high demand especially with the ladies and have no close substitutes. This serves as an advantage to this SME since it is likely to remain competitive and sustainable for longer periods. There are no substitutes to beauty products since consumers can only change brand. It is for this reason that the micro enterprise has over the years maintained high brand loyalty.

• Carry out a stakeholder analysis of a SME

Stakeholders are very important for the success of an SME. In order to have a common rhythm and agenda, it is important to carry out a stakeholder’s analysis.  This involves understanding the whole market chain as well the actors and institutions that influence the Operations within the SME.

In this case, the first actors in this SME are the suppliers of raw materials. These are very important players since they determine the continuity of the production process. Their efforts ensue that the SME is sustainable and it is in full operation. Any supply breakdown could be very detrimental to the success of the organization.

Extension workers and research and development team forms another important class of stakeholders. This is because they are involved in determining the new ways to improve on quality and invention of new products. This will play a great part in ensuring market expansion and increase in profitability.

The group of stakeholders is the marketing team. This team is supposed to ensure that the SMEs sales increase daily. This is by ensuring that they acquire new markets and ensure that they retain the already existing market. They play a great role in ensuring continuity and sustainability of the micro firm.

1.3 Analyze and evaluate a SME’s current marketing strategies

Marketing strategy is very essential for increased profitability and continuity of a firm. This is achieved through increase sales and achieving sustainability after combining organizations marketing goals into one comprehensive plan. A good marketing strategy can only be realized after proper understanding of the enterprise objectives.

In the recent past, the SME has been involved in extensive advertising and promotion as its marketing strategy.  The enterprise has adopted print and digital media advertising, online advertising, bill boards as well as road shows and promotions. The enterprise have also embraced the advantages associated with the social media such as twitter, face book and istagram.  This has been a very effective tool since its profitability is increasing every day.

1.4 Develop a marketing strategy to increase customer value for a SME

Customer value is very essential for sustainability,perpetuity and growth of an enterprise. One of the best marketing strategies that create customer value is creating value chain for an organization. Value chain is created as a component of company activities that create value and add costs in an organization. These activities include;

• Bringing materials to the firm
• Converting materials into finished products
• Shipping out finished products
• Marketing the products
• Servicing the products

These primary activities should be supported by other secondary activities such as procurement, human resource management, technology development and firm infrastructure. All these leads to value chain which creates value for customers. It is a very essential monitoring tool since you can compare your performance to that of competitors thus determining a competitive edge.

2.1. Identify the critical success factors for the SME

SMEs constitute of more than half of the businesses operating in many countries. It also constitutes more than 60% of GDP earned in different countries thus is a leading source of employment. One of the critical success factor associated with Splendor Beauties is its ability to maintain a sharp focus on the market.  The organization has over the years strived to improve its market share and position. This has ensured that the SME has remained competitive and sustainable over the years.

Another important success factor associated with the SME is its continuous efforts to active in innovation and inventions. Over the years, the enterprise has developed new and quality products which have entered the market by storm. The firm’s research and development team is always busy designing new products to be offered in the market. Adoption of new technology and increase in innovations has kept competitors at bay. These among other critical success factors have been essential for the success of Splendor Beauties.

2.2 Identify issues for an SME in a particular industry and implement strategies to

Mitigate such issues for business success

Though several SMEs have been a success story, it is also important to understand that there are numerous underlying issues that affect smooth running of the SMEs. One of the most common issues is lack of working capital to expand the operations of the business. For instance, the operations of Splendor Beautiies are limited due to lack of financial muscles. The initial funding f the firms operations is from the entrepreneurs pocket and may not reach the desired levels.  Unlike not-for profit organizations and public sector organizations the financial sources for SMEs are limited. To mitigate this issue, the entrepreneurs must ensure that they have adequate financing before engaging in production. These funds can be obtained from loans as well as ploughed back profits.

Market saturation is another non-financial critical issue that affects SMEs. The availability of raw materials and lack of bureaucracy in terms of licensing have lead to increase in the number of SMEs in the industry. The market saturation has led to decreased profits which may result to some SMEs being unsustainable. To mitigate this issue, the entrepreneurs should be encouraged to be innovative and work in the line where saturation is very low. Entrepreneurs should be creative and innovative in creating business ideas to reduce market saturation.

3.1 Define the cultural, political and organizational aspects of public sector marketing

A public sector is a business entity that is fully owned and managed by either local or central government. In most cases, it is involved in provision of very essential goods and services which are not or cannot be left to private sector. The cultural aspects in public sector refer to the norms and values that are associated with the sector.  In most cases, these cultural aspects influence the service delivery or delivery of products. Political aspects also play a great role in the public sector. These aspects determine which part of political divide will have access to certain service or product. The same case applies to organizational aspects a it defines the role of the public sector in terms of service or product delivery.

3.2 Design a theoretical construct that covers cultural, political and organizational

Dimensions

Provision of goods and services in the public sector should ensure that every person in a certain republic have access to the commodity. However, it sounds stupid to ignore the role played by cultural, political and organizational aspects that will affect the distribution of such resources. In order to have all the factors considered, it is important to have a theoretical construct that entails the entire dimension in public sector.  For instance, the cultural differences existing among the citizens will influence the distribution of resources. For instance, there are some religions that do not seek modern medication and other health services which is mostly a function of the public sector. On the other hand, it is obvious for political players to reward their loyalists with government provided goods and services as compared to the oppositions. The organizational aspect will be guided by the norms and values that govern the operation of the sector.

3.3 Assess how theoretical constructs can ensure customer orientation in the public

Sector

Customer orientation is a very important aspect in marketing. It involves understanding the numerous group actions taken by business to support sales and service delivery ensuring utmost level of customer satisfaction. This is also a very important aspect in the public sector since it is the obligation of government to ensure citizens’ issues are addressed promptly and their complaints and queries responded to immediately. The theoretical construct can be a very essential tool in enhancing customer orientation in the public sector. This is because the cultural, political and organizational aspects affecting delivery of goods and services in the public sector are outlined the construct.

3.4 Develop customer oriented strategies for the public sector to improve performance

The public sector like any other sector is concerned with improved performance and high levels of customer satisfaction.  One of the most important strategy that can be adopted by the public sector is the introduction of the balanced score card. This is a management tool that provides senior people in the management with a periodic assessment of how well the sector has progressed towards realizing its objectives. The score card defines the four progressive areas that include customer, financial, growth and internal process. The customers must also be given a platform where they can make comments and compliments on the kind of goods and services they receive from the public sector.

4.1 Assess the effectiveness of marketing in a public sector organization

Marketing is very important in the public sector just as it is important in the SMEs and the not-for profit organizations. This is because failure to have an effective marketing in the sector will make service and product delivery not to achieve the desired levels. Most federal governments have been actively involved in marketing products and service offered in the public sector and hence great levels of effectiveness have been achieved.

The increased level of marketing has brought a lot of influence in the minds of citizens to consume public products. The increased sensitization programs have resulted too many people looking after government provided goods and services in different parts of the world.

The marketing strategy adopted by several governments and public sector has resulted in increase adoption of e-Government. This has been a major step towards successful marketing since majority of citizens can access services digitally which has increased accessibility substantially. The levels of decision making have also been taken to another level since the management of government affairs have been made easier. The level of justice has also increased substantially as a result f effective marketing strategy since most of the population are aware of what they expect from the public sector thus overcoming challenges paused by political and cultural differences.

4.2 Identify current or possible issues relating to marketing in a public sector

Organization

The public sector just like other forms of business is also faced with issues in marketing. One of the greatest challenges faced by the public sector is the digital marketing. The current levels of technology have resulted to digital marketing as being the most used marketing tool. However, this kind of marketing has numerous challenges that give the governments something to ponder on. For instance, not all the population in a country is literate and thus illiteracy denying substantial population very essential information. Maintaining and sustaining such marketing strategy is also quite expensive which is a great undoing to the economy.

Another issue is that the marketing in public sector may be driven to achieve a certain political objective rather than serve the people universally. This can lead to realization of social effects which at times is not good for national interests.

4.3 Develop marketing strategies to overcome identified issues in a public sector

organization and consider suitable marketing theories

In order to mitigate the above vice, it is important for the public sector to have a good marketing strategy. For instance, the public sector can employ marketing skills developed from the private sector. These employees can promote products and services delivered by the public sector. Use of graphic designs, nail shots and advertising can also be a good marketing tool. This will save the government on the costs used to host and maintain digital websites. The use of graphics can help get the message reach to the less literate population in the society and political differences are also reduced substantially (Kotler, 2007).

 

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