Although extant literature on small and medium-sized enterprises (SMEs) suggests that strategic management positively affects organizational outcomes, evidence supporting this suggestion is limited to a few qualitative case studies. As many SMEs struggle with limited access to resources and with it no opportuni-ty to enact a large and complex strategic management concept. This thesis develops a strategic management concept that considers these limitations. Drawing on resource- related arguments this study presents a frame-work for how a strategic management concept can be designed and implemented at a high-tech SME.
Methods: A single case study at a German technology company was applied, in which the strategy was formu-lated with the strengths-, weaknesses-, opportunities- and threats- (SWOT) analysis and further, the strategy was employed with the Balanced Scorecard. Therefore, an expert interview with the chief execution officer (CEO) was conducted, and a team out of high-level employees of the enterprise was assembled to discuss the steps of the developing processes.
Results: As it was possible to design and implement a framework that includes strategy -formulation and -implementation with limited resources of the case company, this study extends the literature by providing a reference case for other companies, especially SMEs. Furthermore, the paper provides evidence how the SWOT analysis and BSC theories can be applicated in a practical case.
Table of Contents
1. Introduction
2. Theoretical Framework
2.1. Definitions
2.2. Designing a Strategic Management System
2.2.1. Enterprise Philosophy
2.2.2. Strategy Formulation
2.2.3. Strategy Implementation
2.3. Designing and Implementation Problems
3. Research Method
3.1. Research Design
3.2. Research Site
3.3. Data Collection and Analysis
4. Results
4.1. Current Situation of the Case Company
4.2. Strategy Formulation
4.2. Strategy Implementation
5. Discussion
5.1. Theoretical Implications
5.2. Managerial Implications
5.3. Limitations
6. Conclusion
Research Objectives and Themes
This work aims to develop a practical strategic management framework specifically tailored to the resource constraints of high-tech SMEs. The primary research question investigates which strategic management methods are suitable for SMEs and how they can satisfy their specific strategic needs.
- Application of SWOT analysis for strategy formulation in SME environments.
- Implementation of the Balanced Scorecard (BSC) to translate strategies into actionable goals.
- Methodological use of action research within a real-world case study context.
- Evaluation of resource-efficient strategic management practices for SMEs.
- Optimization of business processes and organizational structures in growing technology enterprises.
Excerpt from the Book
SWOT Strategy Formulation
SWOT analysis examines both internal and external factors of an organization. The prioritized SWOT factors are used to formulate alternative strategies. Weihrich (1982) developed the TOWS matrix as the next step of the SWOT analysis in developing strategies. The TOWS matrix provides means to develop strategies based on logical combinations of factors related to internal strengths, or weaknesses, with factors related to external opportunities, or threats (Weihrich, 1982). To create strategies, the TOWS matrix identifies four conceptually distinct strategic groups: Strength- Opportunity (SO), Strength – Threats (ST), Weaknesses- Opportunities (WO) and Weaknesses- Threats (WT) (Fig.2).
The SO strategies use the internal strengths to take advantage of external opportunities and the WO aim strategies at reducing internal weaknesses by taking advantage of external opportunities. On the other hand, ST strategies entail using the strengths in order to avoid or reduce the effects of external threats whereas WT strategies are defensive tactics aimed at reducing internal weaknesses and external threats.The primary advantage of this approach is the influence of prioritized internal and external factors embedded in strategies (Weihrich, 1982); (Gomatesh M. Ravanavar & Dr. Poornima M. Charantimath, 2012).
Summary of Chapters
1. Introduction: Outlines the economic significance of SMEs and identifies the strategy deficit and lack of practical management frameworks for these enterprises.
2. Theoretical Framework: Reviews literature on SME strategic management, defining key concepts and justifying the selection of SWOT analysis and the Balanced Scorecard.
3. Research Method: Explains the action research approach and the design of a three-month case study conducted at a high-tech SME.
4. Results: Details the practical application of SWOT and BSC at the case company, including mission definition, strategy formulation, and goal assignment.
5. Discussion: Evaluates the theoretical and managerial contributions of the study and addresses the limitations of the implemented approach.
6. Conclusion: Summarizes the study’s findings, confirming that the combined SWOT and BSC framework is a suitable, resource-efficient tool for high-tech SMEs.
Keywords
Strategic Management, Small and Medium-sized Enterprises, SME, SWOT analysis, Balanced Scorecard, Strategic Planning, Strategy Formulation, Strategy Implementation, Action Research, High-Tech SME, Business Performance, Corporate Strategy, Resource Efficiency, Organizational Structure, Case Study
Frequently Asked Questions
What is the core focus of this research?
The research focuses on developing and implementing a strategic management concept specifically designed for small and medium-sized enterprises (SMEs) that face limited resource availability.
What are the central themes of the work?
The central themes include strategic planning, resource-constrained management, the integration of SWOT analysis with the Balanced Scorecard, and the practical implementation of these tools in high-tech firms.
What is the primary research goal?
The goal is to determine which strategic management methods are suitable for SMEs and to prove that they can effectively satisfy the needs of high-tech companies in practice.
Which scientific method is utilized?
The study employs an action research methodology, conducting a three-month single case study at a German technology company.
What is covered in the main body of the work?
The main body covers the literature review on strategic frameworks, the practical execution of a SWOT analysis with an internal team, and the subsequent implementation of a Balanced Scorecard to translate strategy into measurable goals.
Which keywords define this work?
Key terms include Strategic Management, SMEs, SWOT analysis, Balanced Scorecard, Strategic Planning, and Strategy Implementation.
Why is a "Brainstorming Team" used in this study?
The team is used to facilitate active participation of high-level employees, ensuring that the developed strategies are based on real insights and gain high acceptance within the company.
How does the case company benefit from this framework?
The framework provides the company with a clearer strategic orientation, structured long-term planning, and measurable objectives, helping it manage rapid growth and increasing complexity.
- Citar trabajo
- Anonym (Autor), 2019, Designing and Implementing a Strategic Management Concept in an High-Tech SME, Múnich, GRIN Verlag, https://www.grin.com/document/513648
