IMPORTANCE OF MANAGERIAL SKILLS AND KNOWLEDGE IN MANAGEMENT FOR SMALL ENTREPRENEURS Zuzana Papulová Matej Mokroš Comenius University Faculty of Management Department of Strategy and Entrepreneurship Bratislava, Slovakia
Abstract Small enterprises are generally considered to be more operative, can respond quicker and are more flexible than big companies, which form their strategies for years ahead. Limited focus on operations can have its advantages, but can also prevent enterprise to exploit new unseen opportunities. Development of market economy in Central and Eastern Europe has been suspended for decades, while for the rest of the world the problems of small and medium enterprises are in the centre of discussion for almost half of century. Problems with existence and development of small enterprise could be solved with closer attention to vital managerial skills and management knowledge for the small entrepreneurs. Support and provision of further education in these areas could help small entrepreneurs overcome initial development difficulties. “Entrepreneurs who have tried and failed are part of the risk taking economy, but it is not necessary to accept the current failure rate as normal” John Baldwin Introduction Various experts describe today’s global economy as one in transformation to knowledge economy. Information systems and information technology have become at the beginning of the 21st century the most important factors for economy functioning in developed countries. However, it is not only the information systems and information technology, but actually working with information itself, which convey the change of thinking and creation of value in modern approaches to business and management. These changes are reflected in current economy. The utilization of resources is being shifted from current capital strategic resources to strategic resources in the form of information, knowledge, creative thinking and innovation. Skills and knowledge belong to critical factors of production. Enterprises can gain competitive advantage by implementing continual and on-going innovations and the managerial skills and knowledge are in the centre of this process of innovations. Many times these facts are underestimated by small entrepreneurs and overlooked by support programs for development of this size of entrepreneurship. Small enterprises, as part of small and medium enterprises (SME), form considerable part of state economy and they are also considered an important source for development of economy. Development and support programs for small enterprise should also focus on the area to help of skills and knowledge. Whether these assertions are justified and the neglect of managerial skills by small enterprises affects their success are the questions which we would like to cover in this contribution.
E-Leader, Prague 2007
1. Level of management of small enterprises
1.1. Situation of small enterprises in Slovakia
Small enterprises are part of larger category of small enterprises and medium enterprises. They all together form 98.8% of all companies in European Union. They are considered to be the engine for society development. Because of higher flexibility they can achieve competitive prices when manufacturing smaller batches. Small and medium enterprises (SMEs) play significant part in employment and professional training of young people. Compared to big companies, they employ more women, young people and part-time employees. SMEs are closely connected with the region than large employers and therefore have significant influence on further the region’s development. Fiscal decentralization of the regions of Slovakia creates pressure on municipalities and mayors, who must pay a closer look on actual needs of all employers doing business in the particular region. Only this ways the mayors can secure loyalty of these employers and support them in their business. SMEs as the largest employer...
...working in this company at certain position. As the Company’s Operations Manager and Sales Manager received an E-mail on their website regarding the enquiry of exporting the cheese to India. My Boss ordered me to create a report for Board of Directors on the ‘conduct, financing and settlement of finances’ on the portion of this opportunity. In this report, I am going to lay out certain prospects like Business Strategies, Financing and Letter of Credit to export the cheese to India.
Benefits to export in India: The benefits of exporting the Kiwi cheese to India are mentioned as follows:
Globalization: By Exporting Kiwi cheese to India can be helpful in economic growth of the company as well as of New Zealand and it may be helpful in widen the product range and services by the company. The widespread availability of global goods, services may positively impacts the lifestyle of citizens.
Trade Relationships and Agreements: Trade agreement between two or more countries can be known as Free Trade Agreement(FTA). It makes international trade easier and more efficient. It can set certain rules between New Zealand and India which is good for both economically. FTA can be benefitted for exporters as well as importers. (Mfat, 2013)
International Consumers: By expanding the customer base internationally gives an opportunity to the company to optimise economies of scale. It will increase the number of...
...audience, then the decision maker doesn’t have enough information to go off of.
Seventh, the findings must be presented unambiguously. If the report is vague and spoken in generalizations, then once again, the report’s credibility can be questioned. Eighth, the conclusions must be justified. In a study of 600 people, one cannot apply the findings to a national level.
Finally, is the researcher experienced? Credibility increases with the researcher’s reputation. Taking these factors into account will allow the decision maker to determine the quality level of the research report, and ultimately will provide a higher level of life-insurance satisfaction.
Cooper & Schindler (2011) define a management dilemma as the problem or opportunity that requires a management decision. For this reason, there are a few management dilemmas that raise a concern for an area sales manager who also conducts research for sales potentials. Foremost is the concern for conflicts of interest that may arise from being the sales manager and the researcher. An area sales manager has goals that are consistent with keeping themselves employed and promoting their own position. They are responsible for facilitating sales and the activities that lead to them (Cooper & Schindler, 2011). One activity may be that of obtaining new products to market. The desire to sell a certain product due to its attractiveness and sales potential, or its potential to generate more income,...
...or Prospects of Foreign Exchange Department of BASIC Bank Limited (Tanbazar Branch).
Firstly this report consists of the introduction, objectives, rationale, scope, limitation and study methodology of the report. Here I included the purpose of preparing this report, the limitations I faced during the preparation and the method of gathering the information.
Then this report contains brief information about the background and approach of BASIC Bank Limited, the name and number of branches, and a brief description of Tanbazar Branch and analysis of its performance for last five years. The organizational structure & culture, the functions of the Bank is also discussed in this chapter. At last of chapter two the strengths, weaknesses, opportunities, and threats of the bank are presented.
After that this report consists of the internship position & duties which I did during my internship program in Foreign Exchange Department. Foreign exchange department plays significant roles through providing different services for the customers. With the globalization of economics, international trade has become quite competitive. Timely payment for exports and quicker delivery of goods is, therefore, a pre-requisite for successful international trade operations. To ensure this purpose BASIC Bank Ltd transmits L/C through SWIFT (Society for Worldwide Inter bank Financial Telecommunication) to the advising bank.
The analysis of the report titled “Foreign Exchange...
...Sociology of Deviance and Crime: Essay
Question: Write a social sciences essay based on a documentary or film. Explore how deviance and/or crime are presented in this text and relate your findings to the various sociological perspectives and theories studied in class.
Choice of text: Easy A (2010 movie)
Deviance is an unavoidable part of human nature, and as such, is a fascinating and essential social phenomenon to study. The film Easy A explores how a high school student turns to deviance in order to benefit in popularity and financially. A number of sociological theories are recognisable in this film. It demonstrates clearly the motivations behind how primary deviance leads to secondary deviance. The text raises the theories of social exclusion and marginalisation, with specific relevance to adolescent years.
The teenage years are a big transition for people, as they mature from children into adults. This period is often a time of self-discovery or experimentation, as illustrated by the movie Easy A (2010). We are introduced to the protagonist, Olive, an unknown and unpopular schoolgirl. She starts to become noticed when she lies about losing her virginity, and the fibs begin to escalate. Through a number of lies and rumours, Olive gains a reputation for her false promiscuity, and this has a number of repercussions on herself and her peers. Olive's deviant acts clearly demonstrate a number of sociological theories and...
...them to make decisions through the viewpoint of employees.
The drawback in P&G case is that the CEO dose not directly work with the market, he just get the information through the global vice president so the accuracy may occur in the process of making decision. In addition, the chairman and CEO’s advisor is not related to any operation departments, so he may not efficiently in helping the CEO make decision. A company's overhead cost typically increases because of the need for double management. The extra salaries an organization must pay can put a strain on its resources. The sharing of employees may cause unhealthy competition between managers within a company.
To individual, the specialized management in each department have an opportunity to show their ideas. For example, MOD in different regions have different developmental strategies the matrix structure is that it can result in internal complexity. Some employees may become confused as to who their direct supervisor is. For example, an employee may receive different directions concerning the same thing from supervisors in different departments.
P&G establish a smart organization in which each market area has a MOD in order to manage and develop products in each region. There is also a vice president who manages and collects information of all those market to provide for CEO. There are four product lines that are separately managed. The CEO directly manages four products...
...internally or it can grow externally. Nowadays, growth usually has international implications. A corporation can select from several strategic options the most appropriate method for it to use in entering a foreign market. There are six methods of entering a foreign market; exporting, licensing, franchising, joint ventures, turnkey projects, and wholly owned subsidiaries. Exporting is becoming increasingly popular especially for small businesses because of modern communication, transportation technologies, and gradual decline in trade barriers.
The international market is normally so much larger than the firm's domestic market that exporting is nearly always a way to increase the revenue and profit base of a company. By expanding the size of the market, exporting can enable a firm to achieve economies of scale, thereby lowering its unit cost (Hill, 2006). Firms that do not export often lose out on significant opportunities for growth and cost reduction (Pope, 2002).
Exporting is sending goods and services from one country to another (Daniels, et al 2006). According to Campbell (et al, 2002), it is the transfer of goods (services) across national borders from the home production facilities.
As said before, exporting is one of the methods to enter foreign markets and it has become a growing trend for companies which are large and small. There are many specific goals by doing...
One of the most difficult tasks in life is choosing a career path. Individuals often question which skills, values, traits, and other qualities they possess that may or may not match up with a possible job that would spark a life-long interest. Even for myself, I am still questioning which direction I am meant to take. I started my original journey at higher education at Slippery Rock University of Pennsylvania in an Exercise Science program destined to eventually end up with some sort of Occupational Therapy Degree because I failed at being accepted in to the Music Department. My journey quickly led me from one major to the next, to the next, and on, and on. Even as I am quite confident that Nursing is my niche, exploring other options is a highly recommended tool to ease the decisions I make in my adult life.
Determining my options depended on my other interests and what else I could do as a career. In some aspects this is the point I had to be slightly realistic in terms of the responsibilities of adult life. Since I currently work as a Correctional Officer, logically a degree in the realm of Criminal Justice would best suit me as my back-up plan should my primary plan fail. As this began to become a more prominent idea, conversations with Shawn Sidelinger, a peer at Main Campus of Lock Haven University currently declared as a Criminal Justice Major, helped me to determine if this notion of mine would be a good fit for me or...
...incentive to help trading is absolutely lawful Lack of knowledge of overseas markets Language barriers Inclination to corrupt business associates Legal protection for breach of contract or non-payment is low Effects of unpredictable business environment and fluctuating exchange rates Sovereign risk - the ability of the government of a country to pay off its debts Natural risk – due to the various kinds natural catastrophes, which cannot be controlled
Free Trade It occurs when a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.
Exporting vs Importing; Merchandise vs Service
Exporting - A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation's gross output. Importing - A good or service brought into one country from another. The higher the value of imports entering a country, compared to the value of exports. the more negative that country's balance of trade becomes.
Merchandise – physical goods Services - acts, efforts, or performances exchanged from producer to user without ownership rights iIclude media, entertainment, financial services, computer software
and foreign tourism