Strategic Management-A Tool for Growth of Micro Small and Medium Enterprises [MSME] A Study

Pushpa Hongal; Dr.Poornima Charantimath

Abstract

Indian Micro, Small, Medium and Micro enterprises [MSME] play a predominant role in the economic development of country. It contributes nearly 45% of industrial output, 35% of exports , 42 million in employment, create one million jobs every year and produces more than 8000 quality products for the Indian and international markets. Today MSMEs are exposed to greater opportunities for expansion as the fundamental nature of competition is changing. The Indian market is growing rapidly and Indian industry is making remarkable progress in various Industries. It is becoming very difficult to determine the boundaries for industries and countries, therefore borders between different countries are vanishing. It is throwing a huge challenge for MSMEs to make their remarkable progress. Though huge opportunity is there for MSMEs to grow, they are facing a problem of lack of professionalism, adaptation of proper strategies at the right stage and severe competition from large scale industries. This particular research is undertaken to evaluate strategic planning as a management tool for MSMEs, with a view to help them to achieve more competitive advantage over a long run. The main objective of this research is to appraise the value of strategic management concepts and techniques, as applied to MSMEs & provide guidelines for them to apply strategic management to prevent major crisis and business failures which generally happens in Indian MSMEs. This conceptual research was supported by interviews of senior business professionals, research papers and review of research articles to arrive at conclusion. The conclusion is that strategic management is most relevant to MSMEs. If proper implication of strategic management is done in various stages of business it is possible to avoid threats and crisis and MSMEs can achieve competitive advantage over a long run. To solve the problem of MSMEs stage wise implementation of strategic management is proposed, by considering the ground reality in India.

Keywords

Lack of professionalism, stage wise implementation, competitive advantage,

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Cites this article as

P. H. , D. C. , "Strategic Management-A Tool for Growth of Micro Small and Medium Enterprises [MSME] A Study", International Journal of Innovative Research in Engineering & Management (IJIREM), Vol-1, Issue-2, Page No-5-9, 2014. Available from: