The creation of the post-1992 European Single Market represents a significant
change in the business environment confronting firms throughout Europe.
Although there is an extensive source of literature available on appropriate
strategic responses to the Single Market, very few of these writings contain
guidance specifically related to the situation facing small and medium- sized
enterprises (SMEs).
The objectives of this study are i) to determine important veu-iables which might
influence SME competitiveness, ii) how these may influence SME competitiveness
and iii) to identiiy the formal or informal strategic approaches of SME firms
responding to the challenge of the Single Market. To achieve these objectives a
comparative study has been undertaken across approximately 200 UK and
German SME food & drink processing firms.
The first phase of the research involves a survey aimed at identifying which
national, regional and company-specific variables may influence SME sector
competitiveness in the Single European Market envirormient. British firms
identify only a small number of crucially important vauriables whereas German
respondents identify a much larger number of variables.
Variables identified as having an important/very important influence on
competitiveness are used in the second survey to determine whether these Eire
likely to place firms in a stronger or weaker position on the competitive
continuum within the post-1992 environment. UK firms are much more
indifferent about competitive advantages and disadvantages compared to their
German counterparts. German firms, in contrast, identify a balanced portfolio of
disadvantages and advantages.
The third survey is aimed at establishing companies' strategic approaches in
terms of planning philosophy, market opportunities and internal capabilities. The
survey establishes that German firms have a more formalised planning approach.
Furthermore, most German SMEs follow a focused differentiation strategy,
emphasising premium product performance with distinctive tangible and
intangible benefits. At the same time increased emphasis is placed on making
production more cost effective and efficient.
Given that the identified strategic approach by the German firms appears to be
the most appropriate strategic option for Northern European SME firms, it may
be concluded that the latter appear to be in a stronger competitive position in the
post-1992 environment. In contrast, small UK firms appear to reject the idea of
getting actively involved in Single Market activities and continue to pursue
domestic market issues. Findings indicate that UK respondents show distinctive
gaps in their strategic approach. Hence, it can be anticipated that these firms are
in a weaker position to counteract threats to their marketplaces from foreign
competitors.
A strategic response framework for SME firms is introduced and additional
measures are discussed which may assist UK owner/managers to become more
involved in formalised strategic plarming. This may lead to a more successful
strategic response to the challenges of the Single European Market.
Date of Award | 1994 |
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Original language | English |
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Awarding Institution | |
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THE STRATEGIC RESPONSE OF SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR FIRMS TO THE SINGLE EUROPEAN MARKET - A COMPARATIVE STUDY
BRICKAU, R. A. (Author). 1994
Student thesis: PhD