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MGT601 SME Management Spring 2014 Assignment 2 Spring 2014

The small and medium enterprises (SMEs) are considered as the engine of growth & prosperity
not only for the individuals but also for the countries. They accelerate economic activity, create
jobs, enhance capital formation and undoubted fully work as a back bone of economy for many
countries (Taiwan, Korea, Japan, China etc).
All the entrepreneurs are keen to consider factors that are considered essential for the success
of any enterprise, but do all these factors really take to make a business successful? This is not
an easy question to answer, as each entrepreneur has a different definition of success, however
the answer of success is too simple: “The key to a successful business is customer service and
retention that is so much more important than marketing.
An entrepreneur is one man show, who has to make all decision regarding the enterprise
(Finance, Procurement, Marketing, HR, Supply chain etc). In true sense an entrepreneur is
responsible for the success and failure of business, thus the errands increases and right decision
making becomes the need of the hour.
Considering the fact that you are running a small enterprise (Hudabia sports), who are indulged
in manufacturing Soccer balls, Beach Volley Balls, Hand balls, Rugby balls, Soccer Suits, Goal
keeper suits & Gloves and related products and a bit successful in capturing orders but it
becoming difficult to retain and attract new one due to stiff competition from competitors in
the same category and also lacks its marketing ability and limited financial resources to actively
locate its business and find potential customers. The economy is dwindling, inflation is at its
peak and power crisis is prevailing.
Being a student of Small & Medium Enterprise subject and having the strong market
knowledge,
What would be the possible hurdles for Hudabia sports in export of mentioned goods?

Solution: 

  1. Short and Medium Enterprise loans
  2. Inflation Rate
  3. Export Quotas
  4. Import Quotas
  5. Import licenses
  6. WTO agreements
  7. (World Trade Organization)
  8. Import duty
  9. Interest Rates
  10. Percentage change in Exchange rate
  11. Rebates
  12. Export of Sports Goods

What would be the strong controllable factors that Hudabia sports can use to uplift its products and exports? Justify your answer with solid arguments and relevant facts.

Within the retail industry the main independent variables that can be controlled include; store location, managing a business, merchandise managing and pricing. Each of these factors are something that the business management can make all of the decisions about and their actions will have an affect on the end result. 

For example, choosing the store location is a decision that needs good market research.
The shop opener will need to choose the 
location based on the type of customer that is already found in that location, what competitors are nearby and how the space can best be adapted to suit the retail company. 

It could be argued, however, that the money available to the store opener will have an influence on the store locations he or she can choose from. This could be said to be something out of his or her control. 

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