MSME Q1 REVIEW

Strategy

Intelligent allocation of resources through a unique system of activities to achieve a goal

World Bank - Micro

no more than 10 employees, total assets no more than 100k, annual sales no more than 100k

Philippines - Micro

1-9 employees, up to 3M assets and sales

World Bank - Small

No more than 50 employees, annual income and sales no more than 3M

Philippines - Small

10-99 employees up 15M assets and sales

World Bank - Medium

No more than 300 employees annual income and sales no more than 15M

Philippines - Medium

100-199 employees, up to 100M sales and assets

Supply Chain Management, Human Resources, Cashflow 

Major problems of MSME

Digital Transformation

The adaption of Industry 4.0 technologies and business models

Green Economy

Accelerate adoption of green, circular, and climate-smart approaches in MSME operations

Economic Diversification

Increased export activities, and participation in value chains

Inclusivity

Promote lasting and shared prosperity through inclusivity and formalization

Resilience Building

strategic and effective plans and investments

Financing

Improve accessibility of sustainable financing for MSME

Marshall & Johnston’s Planning Framework

 a planning framework is a structured process that guides managers in making marketing decisions.

Analyze

Collect data (market trends, customer behavior, competition)

Plan

Develop strategies (segmentation, positioning, targeting)

Implement

Put plans into action (campaigns, sales channels)

Control

Measure performance (KPIs, ROI, adjustments)

ENVIRONMENTAL SCANNING or
INDUSTRY ANALYSIS

To develop a finite list of opportunities that could benefit a firm and threats that should be avoided

Competitive Forces

Characteristic of the most competitive companies

Competitive Intelligence

is a systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goals

Internal Assessment

To be able to evaluate the firms’ strength and weaknesses in the functional areas of the business

Internal Audit Process

This process gives opportunity for representatives to better understand the job or their department, position fits into the organization

Marketing

Described as the process of defining, anticipating, creating, and fulfilling customers’ needs and wants for products and services

Financial condition

best measure of a firm’s competitive position and overall attractiveness to investors

Investment Decision

Also known as capital budgeting, is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization

Financing Decision

determines the best capital structure for the firm and includes examining various methods by which the firm can raise capital

Dividend Decision

Dividend decisions determine the amount of funds that are retained in a firm compared to the amount paid out to stockholders

Production / Operation

This consists of all those activities that transform inputs into goods and services.

Process

These decisions include choice of technology, facility layout, process flow analysis, facility location, line balancing, process control, and transportation analysis. Distances from raw materials    to production sites to customers are a major consideration.

Capacity

These decisions include forecasting, facilities planning, aggregate planning, scheduling, capacity planning, and queuing analysis. Capacity utilization is a major consideration.

Inventory

These decisions involve managing the level of raw materials, work-in-process, and finished goods, especially considering what to order, when to order, how much to order, and materials handling.

Workforce

These decisions involve managing the skilled, unskilled, clerical, and managerial employees by caring for job design, work measurement, job enrichment, work standards, and motivation techniques.

Quality

These decisions are aimed at ensuring that high-quality goods and services are produced by caring for quality control, sampling, testing, quality assurance, and cost control.

SWOT Analysis

Tool to identify an organization, department, product or service’s strengths, weaknesses, opportunities and threats

SO Strategy

use a firm’s internal strengths to take advantage of external opportunities

WO Strategy

aims at improving internal weaknesses by taking advantage of external opportunities

ST Strategy

use a firm’s strength to avoid or reduce the external threats

WT Strategy

defensive tactics directed at reducing internal weakness and avoiding external threats