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“Need of Management Consulting in the field of Small and Medium Scale Enterprises- An empirical study in Uttarakhand”
Submitted To: Dr. Bhavana Sindhu Faculty, IBS Submitted by: Santanu Chowdhury Enrollment No: 08PMC03654 Class Of 2010
ICFAI BUSINESS SCHOOL, DEHRADUN
A REPORT ON “Need of Management Consulting in the field of Small and Medium Scale Enterprises- An empirical study in Uttarakhand”
By Santanu Chowdhury 08PMC03654
The report is submitted in partial fulfillment of the requirements of MBA Program of the ICFAI University, Dehradun
The Management Research Project (MRP) is proving to be extremely rewarding experience for me in terms of learning and industry exposure. I would like to thank my MRP guide Dr. Bhavana Sindhu, ICFAI Business School who gave her valuable inputs in preparation of the questionnaire for market research survey and preparation of the report. I am also grateful to Mr. D.P. Mamgain, Manager of District Industrial Centre (DIC) for providing me valuable data relating to all the SME‟s here in Dehradun. This d ata is of immense help for doing this research which needs hefty amount of data and reports. I am also like to thank some of the officials of SIDCUL, Dehradun for giving me direction to complete this project. They have shown their keen interest for this project. I am also really grateful to Mr. Mohit Raja, CMD of Gemini Consultancy Services, Dehradun where he runs an SME consulting unit for providing me some key ideas to carry forward this project. Finally, I would like to thank all my colleagues those who helped me to complete my project and put forward their valuable suggestions towards the report.
I, Mr. Santanu Chowdhury, the student of MBA- IBS Dehradun, declare that the project titled “Need of Management Consulting in the field of Small and Medium Scale Enterprises- An empirical study in Uttarakhand” has been prepared based on the primary data and detailed literature review and the sources benevolent to the study as shown in the bibliography remarks, analysis and interpretation in this project to prove the concept true as per law. This is to certify that the matter of the study did not form the basis of any other previous report by anyone else. This is a complete bonafide research work and is my personal efforts. Moreover, I also declare that the said project is not submitted anywhere else for the award of MBA degree.
Name Santanu Chowdhury Enrollment No 08PMC03654
Indian economy and MSME Page no.4. Introduction 8-10 2.2 References Annexure: .1 3.3 4. 2 Background and Literature Review 2. List of Respondents 3. 6 1.4 Introduction to Management Consulting Role of Management Consultants in the Growth of SME‟s 12-55 Management Consultants or Business Development Service Providers (BDSPs): Who Does and Who Pays Matrix Overview of Business Development Service Market Overview Uttarakhand pharmaSME‟s: Present Dehradun Pharma Cluster Snapshot Some Business Strategies to improve the Competitiveness of the SME‟s Factor Analysis through SPSS: Evaluation of the Home region of 57-68 the SME‟s Contingency Table: Consultant and Contribution cross tabulation Suggested Solutions for SME‟s: 71-74 Following are the some initiative those are to be implemented as soon as possible: Suggestions to the Management Consultant or Business Development Service Provider: 75-76 1.2 3. 2.5 2. 1.3 4.3 2. Suggestions and Recommendations 4.8 2.7 2. Questionnaire 77-81 2.1 2.2.Table of Content Chapter Part 1.1 4.6: 2.9 3 Findings and observations: 3.1 1. Location Map 5 Topic Executive Summery Need Of the Study Objective Source of the Data Limitations of this study.3.2 1.
market opportunities. many SMEs face difficulties arising from liberalization-induced adjustments. To preserve their narrow profit margins. Constituting as high as 90% (1) of enterprises in most countries worldwide. The purpose of this paper is to develop a conceptual framework that highlights the importance of distinguishing both roles and the implications for management consulting firms and for their clients 6 . isolation. insight in these different roles and the impact of these roles on clients‟ competitive positioning in their industries is required. standards/ quality. SMEs are the driving force behind a large number of innovations and contribute to the growth of the national economy through employment creation. Their contribution to poverty reduction and wider distribution of wealth in developing economies cannot be underrated. Management consulting firms may assist clients in these efforts. Therefore. logistics and technology innovation. capabilities. supply chains. investments and exports. However. the roles that management consulting firms fulfill in these processes can differ considerably and are underresearched. coherent region-wide approaches to address their problems have been difficult to craft. Left on their own. The focus in research upon resources.Executive Summery Small and medium-scale enterprises (SMEs) occupy an important and strategic place in economic growth and equitable development in all countries. environment (urban or rural based) and organizational structures (in the case of cooperatives). the potential of SMEs is often not realized because of problems commonly related to size. With SMEs varying widely in size. dynamic capabilities and competences has challenged firms to apply these concepts to improve their competitive position. small-scale entrepreneurs in developing countries do not opt to innovative products and processes and resort to tactics that deters their growth in the long run. However.
CHAPTER: 1 Introduction 7 .
Introduction: 1.1 Need of the Study:
In recent years, small and medium enterprises (SMEs) that represent some 90% of local enterprises have contributed a lot to the economic development. However, they are facing many difficulties in securing loans from banks, getting access to new technologies and necessary information, competing against foreign counterparts in both domestic and foreign markets and improving their managerial and technical skills. It‟s a growing industry in this scenario and because of recession there is hue and cry for the techniques to survive in this situation and Global consulting industry revenues (including HR, IT, strategy, operations management and business advisory services) were about $330 billion in 2008, according to Plunkett Research estimates.
1.2 Objectives of the study:
The overall objective is to study the need of management consulting in SME ’s in India and its response to sector like Pharmaceuticals. To provide suggestions in how to increase the share of SME ’s in Indian economy through the help of Management consulting firm. To help SME’s to understand the strategic fit between SME ’s and Management consulting firm i.e. they will come to know what are the ways a management consulting firm can make them a viable enterprise.
To examine SME’s attitude towards management consulting. and the SME‟s need for the advisory service and what difficulties SMEs are facing and what the advisory service could do for these SMEs.
1.3 Source of data:
Research always starts with a question or a problem. Its purpose is to question through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. Marketing research is the function which links the consumer, customer and public to the marketer through information- information used to identify and define marketing opportunities and problems generate, refine, and evaluate marketing actions, monitor marketing actions, monitor marketing performance and improve understanding of market as a process. Marketing research specifies the information required to address these issues, designs, and the method for collecting information, manage and implemented the data collection process, analyses the results and communicate the findings and their implication. The study has been obtained from both primary data and secondary data. i) Primary data is collected through Questionnaire Personal/Telephonic Interview ii) Secondary data is collected from Different websites of SME‟s Government websites of Micro, Small, Medium Scale Enterprises SIDCUL and District Industrial Centre
Economic survey of India.
1.4. Limitations of this study :
Time is an added constraint of this study i.e. except Saturdays and Sundays I can‟t visit any in SME. And on Sunday by and large all the SME‟s are closed. There is every possibility that the SME can hide their important information like they may not provide their true profit and investment, no. of laborers employed etc. In the websites even in ministry of MSME (Ministry of Micro, Small, and Medium Scale Enterprises) only the data of SSI is given and very less data on Medium scale enterprises are given. Another biggest limitation is only the Annual report of 2006-07 is available, no recent data is available in Ministry of MSME.
Background and Literature Review
88 0.com/UserFiles/File/ESR%20Inducing%20Factors/UNIDO_Concpt%20N ote_Business%20schools. No Characteristic Annual Survey of Industries Census of SSIs 20012002 3 4.1 Indian economy and MSME Micro. lakhs) as per ASI 200001 Employment per Rs.48 12 .04 1 2 3 Per unit employment Per unit output (Rs. A recent concept note prepared by UNDP observes that MSMEs in Indian economy contribute: • 40% in terms of volume. lakhs) Per unit investment (Rs. (2) [Available at http://www.39 5 6 11.22 2.49 0. export etc.43 1. employment generation.weplayfair.pdf as on 20-06-08] Table 1: Comparative Characteristics of Large Scale Industries and MSMEs in India Si.2 1. Small and Medium Enterprises (MSMEs) have a significant role in the Indian economy in terms of output.2. one lakh investment as per ASI 2000-01 Output per employee as per ASI 2001-02 Investment to Output as per ASI 2000-01 61 730 304 4 0. • 80% in terms of employment. • 60% in terms of export and • 92% in terms of number of enterprises.
30 million are employed in this 13 . MSMEs are broadly classified in two categories (MSME 2007): one category consists of manufacturing enterprises and the other category is composed of service based MSMEs. These two categories of MSME are further divided into micro. Number of MSMEs according to new definition reached to 13 million approximately.As per the third MSME Census document.pdf. Consumption of energy by MSMEs also appears to be considerably lower than that of their large-scale counterparts (Table 1). small and medium enterprises depending on the investment ceiling for plant machinery and equipments used therein. Table 2: Classification of Enterprises into Different Categories (New Definitions) Type of enterprise Engaged in manufacture or production of goods Investment in plant and machinery Does not exceed 25 Lakh rupees More than 25 Lakh rupees. Investment-output ratio also appears to be a shade better for the MSMEs. using both the present and earlier classification of the enterprises. but does not exceed 2 Crore rupees Micro enterprise Small enterprise Medium enterprise More than 5 Crore rupees but More than 2 Crore rupees but does not exceed 10 Crore does not exceed 5 Crore rupees rupees (Source: http://dcmsme. It amply captures the importance of MSMEs in India. but does not exceed 5 Crore rupees Engaged in providing or rendering of services Investment in equipment Does not exceed 10 Lakh rupees More than 10 Lakh rupees. the MSMEs are classified in the manner explained in Table 2.in/ssiindia/MSME_OVERVIEW. According to present definition (effective from 02 October 2006).gov. Out of a total labour force of 509 million.) Table 3 below captures the present profile of the MSME sector. employment-investment ratio is about seven times for MSMEs compared to that found in big industries.
Further.gov.Table 3: Present Profile of the MSME Sector (as in September 2007) Under Old Definition Number of micro and small enterprises Employment Production(at current price) Export Shares in GDP Share in manufacturing output 39% Share in Exports 33% 40% 12. promotes individual initiatives.) Since 1990s Indian MSMEs have been facing a robust competition due to globalization and subsequent policy actions that de-reserved many sectors earlier closed to big industries. Some scholars found post-globalization performance of Indian MSMEs to be encouraging because it created new opportunity for MSMEs (Subrahmanya et al 2005). has the potential to be a training ground for managerial skills. and encourages rich personal relations.pdf. it facilitates nurturing of entrepreneurship.0 million NA NA 8-9% 45% (Source: http://dcmsme. it can be used as an instrument for alleviating regional disparities in development etc.in/ssiindia/MSME_OVERVIEW. Indian MSME sector has still been suffering from a host of problems which keeps them lagging behind. which could emerge from within.0 million $140 billion $ 33 billion 6% 41. It has been further pointed out that “SME has many other benefits: it can be started with relatively less capital. a SME is flexible in production. Sadana & Daskanya (2007) lists the following problems of SMEs 14 . it is often promoted as a source of technological innovations in industrialized economies” (ibid P 471). Therefore.8 million Under New definition 13 million 31.
factors considered both important and lacking. These problems need to be taken care for a sustainable growth of MSMEs. bank loans. 4. High cost of borrowings. customer loyalty and quality employers. innovation. Market related problems: Lack of information.com/general/storypage. 2. lack of innovations.1. distribution etc. apathy and 6. These obstacles need to be addressed to ensure their sustainable growth and competitive position in the global marketplace”. (2) [Source: http://www. According to the survey. According to a survey published in Business Standard (April 11 2007) on the constraints faced by Indian SMEs in financing their businesses • 57% identified state bureaucracy and red tape in processing applications. preservation. product development. problems related to equity.business-standard. Technological constraints: Product design. Infrastructure constraints 5. Management constrains: lack of qualified workers. networking and cooperation among SMEs 3. lack of efficiency. Finance problems: Non availability of finance on soft terms. lack of transportation infrastructure.php?&autono=280816 ] 15 . • 40% mentioned state insufficient collaterals and • 34% rued the lack of institutions willing to lend to small businesses”. The main concerns to keep the business in right track are quality of the service. Indian SMEs also face problems in supply chain management and 42% of SMEs in India experienced difficulty in forecasting demand which affects the efficiency of their supply chain. processing technology. Govt. Management finance. As per the survey “SME leaders in India cite a lack of supply chain efficiency and transportation infrastructure as the biggest obstacles to their competitiveness.
arrives at some qualitative conclusions vis-à-vis the nature and characteristics of technology adoption in some selected clusters. De-reservation is followed by a fall in the growth rate of imports of the de-reserved items. As per the census.Debroy et al (2006) while studying the effect of de-reservation for small scale industries found that 1. The reserved sector from all available evidence continues to be less efficient than the unreserved sector 3. Moreover. Roy and Banerjee (2007) is an interesting study that looks into the role of national laboratories in developing regional MSME clusters. there were 1374974 registered units in 2001-02.” Source of Technological Know-how After reviewing the literature it is found that not many studies have been undertaken to understand the issue of availability of technology to the MSME sector. The dataset captures information about 1348447 such units. 5. A few industry classifications account for the bulk of the reserved output and units producing reserved items. “The Reserved SSI sector is a minor component of the SSI sector 2. 6. 4. The present study is an attempt to capture the quantitative perspectives of technology adoption in Indian MSME using enterprise level data from 3rd MSME census.in other words past de-reservation has not harmed the sector. Some large units have professed an interest in entering the reserved sector but not to a large extent. However. The estimated number of unregistered units stands at 9146216. Out of them a sample of 168654 16 . the study. De-reservation has not been followed by any significant SSI output fall in most de-reserved product segments . it did not compare across the different broad sources of technology. using a few case studies.
• Investment required to create one unit of employme nt potential is found to be the lowest for “traditional” technology at Rs. They are: • From abroad • From domestic collaborating company/unit • From domestic R&D institutions/specialized agency/organization • From none [MSME Census identifies them as traditional] The study reveals the variations among the registered and unregistered MSMEs across the differences in source of technology. However. 17 . Our analysis is based on the information available for these units. Same trends are observed in respect of the unregistered units as well. 28167. Incidentally the shares of technology procured from different sources are not identical across different sectors. Census data identifies four sources of technology for the MSME sector. • The same trends are observed in respect of average market value of fixed assets and average employment per unit.units were identified and relevant information was recorded about them during the Census operations. it is the lowest for “traditional” technologies. For the registered units • Average original purchase value of plant and machinery appears to be the highest for technologies procured from abroad. As expected. followed by those procured from domestic R&D institutions. Investment required to procure plants and machineries to create one unit of employment opportunity is substantially lower though. the scope of employment per unit is considerably lower for the unregistered units.
watches and clocks (both Registered and unregistered units) 8. • Units across an industry group procured more technologies from domestic collaborating companies or units than what they obtained from domestic R&D institutions/specialized agencies and organization. Manufacture of paper and paper products (Unregistered units) 2. Manufacture of basic metals (Unregistered units) 5. printing and reproduction of recorded media (Unregistered units) 3. Health and social work (both Registered and unregistered units) (3) **Source: [Can Indian Micro Small and Medium Enterprises (MSME) Sustain Globalization with the Present Technology Mix? – A disaggregated study according to sources of technological know-how Indranil Biswas & Milindo Chakrabarti. gas. steam and hot water supply (Registered units) 9. Notable exceptions are: 1. Electronic copy available at: http://ssrn. barring a few exceptions. • Least number of the technologies is procured from abroad for all the sectors.com/abstract=1284892] 18 . Publishing. Manufacture of chemicals and chemical products (Registered units) 4. television and communication equipment and apparatus (Registered units) 7. accounting and computing machinery (both Registered and unregistered units) 6.Salient features of sector specific distribution of technologies according to source are: • Most of the technologies used in any sector by both registered and unregistered units are traditional – not procured from any of the other three sources. Manufacture of office. precision and optical instruments. Manufacture of medical. Computer and related activities (both Registered and unregistered units) 10. Manufacture of radio. Electricity.
boosting employment and leading to more equitable income distribution • Provide livelihood opportunities through simple. One study empirically examines the cultural influences on the judgement of Australian. through linkages between small and large enterprises while their significant economic contribution is well understood. value adding processing activities in agriculturally based economies. as some authors argue (Leutkenhorst. While individually each of these SME‟s may not be a significant influence like the large corporations. In developing countries. This conceptualization allows us to capture the phenomena at two levels – at the level of individual managers and their institutions and at the level of the organization and the sector. Fisher. Shirole & Bhupatkar.the ethical behaviours of the corporation and the Corporate Social Responsibility (CSR) practices that it adopts. and • Support the building up of systemic productive capacities and the creation of resilient economic systems. This is already being witnessed in the textile belts and the chemical belts in India. their cumulative social and environmental impacts could be significant. 2004. A review of the literature indicates that a few studies have examined the value orientations and ethical stances of Indian managers in large corporations (Monga. 2004) the contribution of SME‟s towards employment generation is significant because they • tend to use more labour intensive production processes than large enterprises.The contribution of the Small and medium enterprises (SME‟s) to the economic growth of a nation is well recognized. 2001). Malaysian and Indian SME 19 . their responsible business practices have not been extensively studied for any meaningful interpretation to be drawn. There is an urgent need therefore to understand the responsible business practices adopted by the SME‟s. • Nurture entrepreneurship. Responsible business practices can be conceptualized as consisting of two dimensions ---.
however. 2007). no discussion in the paper about the significance of the choice of SME managers.] Much of the anecdotal evidence in India on SME managers appears to suggest that the ethical orientation of the SME‟s is a product of the ethical orientation of its owner. There is a need for more research in this area. There is however. 20 . (Pandey. [Vasanthi Srinivasan is an Associate Professor at the Indian Institute of Management Bangalore. the CSR practices in SME‟s in India have gained a lot of attention.managers to whistle blowing as an internal control mechanism (Chavan & Lamba. This paper attempts to draw up on the existing body of knowledge. the SME‟s have increased from about 80. Diana Joseph is a consultant with The Fourth Wave foundation. In recent years. 2007). As per the Third All India Census of Small Scale industries conducted in 2004.000 units in the 1940‟s to about 10. with no specific behavioral uniqueness attached to them. the SME managers appear to be just a sample. In the sports goods and garments sector their contribution to exports is as high as 90% to 100%. The SME‟s alone contribute to 7% of India‟s GDP. The Government of India since 1951 has encouraged and supported the SME‟s through its various policy initiatives.52 million units. both from the academic and the popular literature in India to identify the CSR practices and develop a research agenda for responsible business practices in the SME sector in India. Since the ownership structure of SME‟s varies significantly. Their total employment is about 25 million and they produce about 7500 products including high technology products. Since the findings are at the level of cultural influences. it is likely that the stringent Governance norms that apply to large corporations may not be relevant and therefore supports the view that the owner/managers in SME‟s determine the ethical orientation of the firm. They constitute 90% of the industrial units in the country and also contribute to about 35% of India‟s exports.
26 16.94 3.150 such clusters for intervention and improvement.46 3.63 9323.67 3.65 2.85 18.87 6454.78 22.48 444.22 20.58 4626.39 Employment (Million nos) 213.00 4.08 3.000 SME clusters of artisan-specific.48 2998.42 489.72 17.44 861. employment and export during the last decade is indicated below.38 2.6086 (http://mpra.00 599.87 12138.00 14019.78 712.56 4118.80 2. Performance of Small Scale Sector Year 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 No of Units ( Million Nos) 2.37 3.83 4. 2007 Pandey A P (2007) Indian SME’s and their uniqueness in the country.uni-muenchen.90 21.65 15.00 16.93 14. The Government of India has identified 3.37 Production (Billion Rs) (at current prices) 416.07 20. production.22 8243.18 4.03 NA NA NA NA (Source: Pandey.68 364.17 Exports (Billion Rs) (at current 253.15 17. village and small enterprises in the country and has taken up 1.41 5206.86 3626.Since 2005.54 10600.ub.78 22.de/6086/) 21 .57 2.21 3. The performance of the Indian small scale sector in terms of critical economic parameters such as number of units.79 542.56 19.07 prices) 290.96 6905.50 5728.70 392. MPRA Paper No.
Sood & Arora. Corporate Philanthropy is widely prevalent in the SME sector in India. the authors draw up on anecdotes and information from the popular press and the reports of various initiatives that are underway to present a deeper insight in to the phenomena as it is unfolding. very few of them 22 . it was found that the general impression among SME's is that following mandatory Government laws makes them socially responsible. Arora & Puranik. Most SME owners significantly complement the work of the Government and the NGO‟s in the towns/villages/cities they operate in. religious institutions and temples cannot be undermined. with the phenomenal growth of the SME‟s in recent times. Very few companies had social reports. 2004) One of the unique characteristics of SMEs is that their functioning is centered on the role of the owner who in most cases heads the organization and their CSR policies are centered around his/her knowledge. A lot of SME's are of the opinion that philanthropy and CSR are one and the same. they tend to ignore them. education. code of conduct or stated ethical practices. There is a paucity of academic research in this field in India. However. 2001). Since many of the SME's are at a stage where they are struggling to establish themselves and do not have the manpower or resources to address these issues. In this section. But the study points that many of SME's are involved in some development activity or the other. British Council et al. Apart from following prescribed government norms. 2006. there has been an increased awareness of CSR in SME‟s. (Revenkar. Many the SME's are unable to see any clear benefits by following or practicing CSR. Many of the CEO's of these SME's were members of Rotary or Lions clubs and supported various developmental activities initiated by these clubs. Their significant contributions to the health. 2007. 2004. 2002. Kumar et al. values and interests.Corporate Social Responsibility in SME’s: The evolution and growth of CSR in large corporations in India has been well documented (Mitra. In a report on CSR in SME‟s done in the Pune Industrial belt by the NGO Business Community Foundation.
The role of industry associations in influencing the practice of CSR in SME‟s is significant. 1999). sector specific skills etc. information technology and marketing. faced with common opportunities and threats which can: a) give rise to external economies (e. In 2007. innovation and collective learning approach to SME‟s. counseling. 2004) in the last decade.followed ethical codes as they did not have the resources to follow or implement them. Business in the Community had in 2007 undertaken a project with 20 select SME‟s. Another perceptual study undertaken at the Okhla manufacturing hub near Delhi also indicates a similar pattern (Tarun Kumar.). The intention was to build capability in these SME‟s over a period 23 . c) create a conducive ground for the development of inter-firm cooperation and specialization as well as of cooperation among public and private local institutions to promote local production. specialized suppliers of raw materials. the Government is actively promoting cluster development as a strategy to grow SME‟s. The study drives home the point that there is a need to popularize the concept of CSR among SMEs and the benefits it can bring for them. UNIDO‟s role and contribution to this effort has been significant (Russo. in particular Small and Medium Enterprises (SME). It is expected that awareness education on CSR in SME would begin. The Sports good cluster in the State of Punjab had a multi-stakeholder engagement on CSR in 2008. components and machinery. The Bombay Chamber of Commerce and Industry along with the UK NGO. they did not give much priority for CSR or ethical code of conduct at they were tied down by various constraints ranging from finance. Clusters can be defined as sectoral and geographical concentration of enterprises. UNIDO along with the Swiss Development Corporation has embarked on a thematic cooperation to identify and disseminate good practices and operational suggestions to improve the participation of the SME‟s in the CSR movement.g. administrative and financial services. b) favour the emergence of specialized technical. Moreover.
Last. (4) 24 . most exporters comply with these standards. carpets. This implies that the reality of codes and standards in India as it exists now covers a very small fraction of the Indian market (Sood & Arora. The brand and corporate image of the buyer is impacted in the supply chain and therefore. and textiles etc that are produced for export. There are hardly any examples of organizations which adopt these codes of conduct while manufacturing for the domestic market. The impact of these codes is the highest in consumer goods industries like garments. but not the least has been the influence of codes of conduct and certifications on the ethical practices of SME‟s in the export sector.of time (BCCI. 2007). 2006).
technology transfer and incentives have been adopted. This should result in visible and tangible impacts over the next few years. government and the industry associations may force SME‟s to act responsibly in areas related to the environment. in future the pressure from the local community. However. From the view point of practice. codes of conduct. it appears that a large number of ethical and social responsible initiatives ranging from education. In the export sector. From a theory building point of view. The fragmentation of the labor market and the large participation of the work force in the informal sector in India would mean the need for Human resource practices which provide social security to employees.Implications for the future: There is a clear and evident trend of an increased emphasis of expectations of CSR from SME‟s in India. The high levels of air and water pollution in many cities in India in the last decade has caused a great deal of concern. CSR education has been undertaken by the industry associations and this could result in more SME‟s engaging in CSR activities related to the environment. there may be opportunities for researchers to engage in meaningful action research. 25 . it appears that a number of initiatives related to CSR have been launched in the last few years. Instances of enlightened SME‟s and owners appear to be by far very few.
This includes measures addressing concerns of credit. the Government is also keen on making the operating environment conducive to the conduct of business by SME units. Capacity building of MSME Associations and support to women entrepreneurs are the other important features of this package. cluster-based development. fiscal support. (2) MSEs operated or owned by women (3) All loans in the North-East Region. (iii) To make the Credit Guarantee Scheme more attractive. the following modifications have been made: (a) Enhancing eligible loan limit from Rs. infrastructure. 25 lakh to Rs. With a view to improve the prospects of SME units.Recent Initiatives Taken by the Government: Policy Package for SMEs: The policy makers have recognized the need to support the SME sector through a package of fiscal and financial incentives so as to help them to address the challenges being faced by the sector. and 26 . Further. the Government of India has recently announced a package for stepping up credit to the SME sector. and marketing. technology. Small and Medium Enterprises Development (MSMED) Act. 50 lakh. 2006 (ii) A “Package for Promotion of Micro and Small Enterprises” was announced in February 2007. They include: (i) Implementation of the Micro. 5 lakh. (b) Raising the extent of guarantee cover from 75 per cent to 80 per cent for (1) Micro enterprises for loans up to Rs.
iii. The package targets a minimum 20 per cent year-on-year growth in credit to the SME sector. (5) 27 .000 crore by 2009-10 i.600 crore in 2004-05 to Rs.67.5 per cent to 0. Towards this end. The policy has recognized and laid emphasis on cluster based financing approach since it has the possibility of reduction of transaction costs and mitigation of risk. the package has indicated that a debt restructuring mechanism for SME units would also be set up. over a period 10 years. ii.(c) Reducing one-time guarantee fee from 1. v. (iv) The phased deletion of products from the list of items reserved for exclusive manufacture by micro and small enterprises is being continued. the policy proposes to link pricing to credit rating of the unit. provided the industrial unit is viable or potentially viable. Under the Scheme. On the lines of Corporate Debt Restructuring Mechanism.e.35. The policy targets increase in credit from Rs.1. all accounts. except those that are classified as loss assets. With a view to help SME units to obtain pricing for their loans. vi. SIDBI would be setting up a credit rating agency. appraisal and monitoring system for small and tiny enterprises to reduce transaction cost as well as improved flow of credit to the sector. Some More Salient highlights of the package are as under: i. iv. will be eligible for restructuring.75 per cent for all loans in the NorthEast Region. The policy also lays emphasis on usage of technology for delivery of credit to SME sector and has proposed an IT-enabled application. a movement from small-scale industry to small and medium enterprises has been contemplated. With a view to fall in line with the international practice. 125 items were de-reserved.
strategy development. although the transferability of such practices from one organization to another is the subject of debate Consultancies may also provide organizational change management assistance. where the hiring of more permanent employees is not required. and to serve as the basis for recommendations for more effective or efficient ways of performing business tasks. Organizations hire the services of management consultants for a number of reasons. and less collaboration with.2. including gaining external (and presumably objective) advice. proprietary methodologies or frameworks to guide the identification of problems. technology implementation. and a facilitative approach at the other. the client(s). In the expert approach. Because 28 . with an 'expert' or prescriptive approach at one end. compared to the facilitative approach. the consultant focuses less on specific or technical expert knowledge. consultancies are also said to be aware of industry "best practices". the consultant takes the role of expert.2 Introduction to Management Consulting: Management consulting refers to both the industry of. Management consultants generally bring their own. or operational improvement services. development of coaching skills. and more on the process of consultation itself. and provides expert advice or assistance to the client. Because of their exposure to and relationships with numerous organizations. and the practice of. or simply as extra temporary help during a one-time project. with. primarily through the analysis of existing business problems and development of plans for improvement. Approaches: In general. helping organizations improve their performance. less input from. With a facilitative approach. various approaches to consulting can be thought of as lying somewhere along a continuum. access to the consultants' specialized expertise.
1996. Van den Bosch. the extensive literature on management fads and fashion (e. Kipping and Engwall. Kieser 1997). Van den Bosch. are still relatively unexplored. 2001. and Elfring.. The consulting firms listed above are closer toward the expert approach of this continuum. The second axis is an industry focus: for example. process improvement. Clark and Fincham.. executive leadership. however. 2002. Previous research investigated how management consulting firms can build their competences by gaining knowledge from client relationships (Sivula. e. 2002.' with Edgar Schein being considered the most well-known practitioner. [Source: Wikipedia: Management Consultancy] The rapid growth of the management consulting industry during the last decades has led to an increase of academic interest in management consulting (e. sales. Abrahamson. 1997. 2003. technology. talent management. where one 'axis' describes a business function or type of consulting: for example. retail. Together. operations. these form a matrix. Baaij & Volberda. Engwall et al. etc. a facilitative approach is also often referred to as 'process consulting. Van den Bosch. strategy. Much of this research focuses on the role of management consulting firms in the creation and dissemination of management rhetorics..of this focus on process. the purpose of this paper was to develop a conceptual framework to address the following research questions: (1) what are the internal requirements of management consulting firms to build and leverage competences for their clients? 29 . 2005). 2001). The roles of management consulting firms in the building and leveraging of the competences for their clients..g.g. with consultants occupying one or more 'cells' in the matrix. oil and gas. automotive. Many consulting firms are organized in a matrix structure. To contribute to an understanding of these roles and their expected impacts.g.
when requested. analyze such problems. TWO ROLES OF MANAGEMENT CONSULTING FIRMS: INTERNAL REQUIREMENTS AND CURRENT TRANSFORMATION OF THE INDUSTRY In this paper the Researcher define management consulting as “an advisory service contracted for and provided to organizations by specially trained and qualified persons who assist. and present a conceptual framework. Author completed this section with a description of the trends with respect to these roles. the boundaries between delivering an advice and implementing an advice are blurring. In the following section the author investigated the impact of the roles on the competitive position of clients and on their industries. The Author illustrated the conceptual framework in the context of the strategic renewal processes of incumbent firms in the financial services industry.And (2) what is the impact of these roles on the competitive position of the clients and on the competitive dynamics of the clients‟ industries? This study distinguishes the competence building role and the competence leveraging role of management consulting firms. The most important source of knowledge accumulation for management consulting firms is previous assignments. in an objective and independent manner. For each generic role we identify the internal requirements for the management consulting firms. Based on this framework we develop propositions. The management consulting industry comprises a broad spectrum of services. the client organization to identify management problems. in the implementation of solutions” (Greiner and Metzger. In many of these services. They can leverage this knowledge to otherwise disconnected domains 30 . and help. Management consulting firms have privileged access to the most recent knowledge about the competences of the best performing firms. ranging from outsourcing IT systems to strategy consulting. 1983: 7).
In case of high involvement of consulting firm in competence building. Hargadon. In general. The competence building role of the management consulting firm may be associated with Maister‟s „brains‟ projects. Management consulting firms can assist their clients in imagining the new competences that will be the basis of the “industries of the future”. 1998. 1999).g. Sarvary. competence building will imply a higher level of interaction between consulting firm and client than in the case of competence leveraging. From the perspective of the management consulting firm two distinct roles can be identified: competence leveraging and competence building for clients. Maister (1993) distinguishes a spectrum ranging from the almost unique „brains‟ projects that are carried out by experienced. An example of the competence building role is the assignment of an international management consulting firm for Nokia Mobile Phones. we may speak of „value co-production‟ (Ramirez. 31 . 2002). This conceptual distinction between the two roles of management consulting firms may be associated with Maister‟s (1993) spectrum of projects.(e. The competences may be new to the client. to the „procedural‟ projects that are highly standardized and can be executed by a large number of junior consultants under the supervision of a more senior consultant. Management consulting firms can assist their clients in adopting existing competences that are best practices within or outside their clients‟ industries. senior staff. but they are not new to the management consulting firm. idiosyncratic competences for their clients. In contrast. This consultancy assisted in the development of competences to create new and unconventional perspectives on the industry that enabled the client to shape the future of that industry (Strategos. 1999). The competence leveraging role may be associated to a larger or smaller extent with „grey hair‟ or „procedural‟ projects. The competence leveraging role relates to facilitating the leveraging of best practice competences within or from outside the client firm‟s industry. the competence building role facilitates the creation of new.
A management consulting firm.depending on the characteristics of the leveraging. is not necessarily restricted to delivering services related to one role. the required organizational form of the assignment. The lack of experience can be compensated by the institutionalization of knowledge within the management consulting firm. Clients may have different demands. Competence leveraging role assignments that resemble Maister‟s „procedural‟ projects (1993) require to a lesser extent experienced consulting staff. This role puts high requirements on the seniority of the individual consultants. depends to a 32 . and organization and management of the client assignment? To address this question. The skills required for a competence building role assignment do not lend themselves to codification in IT-based knowledge management systems and they cannot be easily exchanged through an intra-firm expert network. however. then he distinguished between: the required skills of the consultants on the assignment. depending on the demands of the client assignment. The imagination of new competences that are the basis of a client‟s future competition requires highly capable and knowledgeable individuals possessing an above average individual absorptive capacity (Van den Bosch. With regard to the internal requirements for the client assignment. and the required management perspective. The generic roles and the internal requirements for management consulting firms What are the implications of the two generic roles for the requirements of these roles in terms of skills of consultants. Volberda. the two generic roles place different internal requirements on the management consulting firm in terms of skills of consultants. the Researcher focused on the individual consulting assignment as the unit of analysis rather than the whole management consulting firm. However. and De Boer. the deployment of the existing knowledge base. The competence building role. that is. therefore. A management consulting firm may fulfill either role. and organization and management of the client assignment. 1999).
1961. As this role implies a lower leverage. The competence leveraging role implies a relatively high leverage of the assignment. The competence building role is associated with organic organization structures (Burns and Stalker. the competence building role is about discovery and innovation. Leverage is defined as the number of consultants per partner. Volberda. management will tend to be driven towards efficiency („product driven‟). 1998). each individual assignment will be highly client specific („client driven‟).large extent on highly qualified individuals. Availability: Academic. REPEC ERIM Series Webpage] 33 . Volberda. 1961. Not only the ratio but also the distance between junior consultants and partner in terms of both experience and hierarchy is relatively large in a competence leveraging role assignment. SSRN ERIM Series Webpage Research Papers in Economics (REPEC). In contrast. 1998) for the client assignments as the nature of these assignments require hierarchical organizational forms. Volberda.J. both roles also have different implications for the organizational form of the assignment. (7) [Source: How Management Consulting Firms Influence Building and Leveraging of Clients‟ Competences Towards a conceptual framework Marc G. The competence leveraging role is likely to be facilitated by a mechanistic organization structure (Burns and Stalker. 2001). and. Baaij. Frans A. As competence leveraging assignments are relatively standardized. The nature of the assignments and knowledge processes involved require a networked form of organizing (Van Wijk and Van den Bosch. as a consequence. van den Bosch and Henk W. Repository at Erasmus University (DEAR). DEAR ERIM Series Portal. The internal requirements in terms of the management perspective used in the assignments are also likely to be different between both roles. Besides differences in required skills. Social Science Research Network (SSRN). competence building assignments are likely to reduce the distance between junior consultants and partner in terms of both experience and hierarchy.
raw material. To make this knowledge usable to other parties seeking to do business with the clusters. This may even be better than that of the entrepreneurs since the Management Consultants would have an independent and neutral perspective. legal structuring of enterprise. these clusters develop organically around some common factors such as a particular skill. and above all. Management Consultants can organize similar camps for budding entrepreneurs to educate them about the finer aspects of setting up an enterprise. need hand-holding. It is.3 Role of Management Consultants in the Growth of SME’s A) Handhold SMEs to Growth Phase: SMEs. This hand-holding takes the form of advice to prospective entrepreneurs with regard to the line of business. More often than not. etc. research laboratories. investment clinics are often held where concepts of safe and sound investing are explained.2. availability of knowledge in the form of proximity to universities. While institutions and lending agencies can seek to develop expertise in this area. Management Consultants work in local markets. given their financial acumen and linkages with the outside world. Coming to the financial world. the Management Consultants may develop a deep knowledge of the clusters. We have often seen medical camps being organized where the emphasis is on awareness and preliminary prevention. therefore. This calls for skills beyond 34 . for the general public. For existing entrepreneurs. patronage. etc. such information and knowledge would have to be made in presentable form i. B) Develop and Leverage Special Knowledge for Clusters: SMEs are often located in clusters. conceivable that over the years.e. key contracts. especially often the smaller ones. with proper packaging. they can help them with regard to running of the businesses. compliance with laws and regulations. I see a great role for Management Consultants in this regard. growth strategy. Clusters have their own dynamics and peculiarities. local expertise matters most.
Their way of looking at things is different. Banks would need all the support that they can gather in reaching the goal of doubling the credit to the SME sector within five years. Indeed such trends are already visible in some areas of banking business and there is tremendous scope for replicating this in the entire SME sector for the credit delivery chain. (D) Develop a Role Within Credit Dispensation Process: In an earlier part of this article. There is a unique opportunity for the Management Consultants to bring both of them in dialogue on a common platform for the good of both the parties. bankers. This creates unnecessary dichotomy and results in wastage of time and other national resources. Whereas bankers gain customers and can take comfort in the fact that a Management Consultants has shown due diligence. Management Consultants can become an integral part of the credit delivery process taking over some of the functions from the banks. Management Consultants understand the requirements of the bankers and know the business of the entrepreneur. for the overall benefit of the SME sector. This would be a win-win situation for the three parties i. C) Act as Bridge between Banks and SMEs: It is a fact of the lending business that SMEs and banks sometimes do not speak the same language even if they agree. the importance being given by the Government of India to increase the flow of credit to the SME sector has been highlighted. Therefore. we must seek to develop such mechanisms.e. entrepreneurs can concentrate on their business. Management Consultants and the SME sector as it also meet the national goals. 35 .financial matters and into the management knowledge domain that is also available in abundance with the Management Consultants.
The emphasis today is on cutting costs. This would benefit both. prepare transparent accounts with adequate disclosures with the long-term future of the enterprise in mind. 36 . In this backdrop. (G) Promote Good Governance in SMEs: The most important function and role that I see for Management Consultants is in the area of promoting good corporate governance in the SME sector. It is only Management Consultants who can impress upon SME entrepreneurs to follow good governance. The solution for these people lies in turning entrepreneurs. F) Develop Synergies Between Small and Large Businesses: SMEs and large corporates operate in the same business universe and have considerable interdependence and inter-relationship. The broad contours of this relationship could be outsourcing both for production as well as processes. However. However. employment often remains a problem. maximizing profits and shareholder value. A good idea could be that local branches of the Consulting Companies take initiative in this direction and find a suitable mechanism for this mode of nation-building. Management Consultants operating in a particular region could get together and promote a platform where such exchanges can take place between the corporates and SMEs in a structured fashion. Management Consultants can help in cementing the relationship between the two for mutual benefit.E) Help Technocrats to Become Entrepreneurs: Today India has a large pool of technical manpower. etc. their efforts are often defeated due to the fact that they have only technical knowledge and do not know much about how to handle any other aspect of business. joint sharing of facilities.
Testing Labs (2) 3. Auditing firms (50) 2. Transport Services (20) 4. Technical institutions (6) 5. DIC 6. (institution/association) or Unorganized (individual). Labour Contractors (5) 1. Their presence in the cluster is as given below: Strategic and Generic BDS Providers or Management Consultant in the Cluster: Generic Strategic 1. SIDCUL 37 . Financial Institutions (60) 4. The strategic BDS providers are public and private in nature. Good Manufacturing Practices (GMP) Consultants (4) 2. Legal advisors (100) 5. Telecommunications (4) 3. The private strategic BDSPs are organized.2.4 Management Consultants or Business Development Service Providers (BDSPs): Strategic Management Consultancy Service is provided by strategic and embedded Business Development Service Providers.
5 Who Does and Who Pays Matrix BD Services Finance/Taxation Who does Chartered Accountants Tax Consultants Advocates Technical Consultants Who Pays SMEs Payment Mechanism Direct Direct Legal Advisors Technology improvement Quality Assurance SMEs SMEs Direct Direct WHO-GMP consultants Quality Testing Centres ISO Certification Training Institutes Labour contractors Marketing Consultants Common testing lab facility through PPP mode SMEs Direct Human Resource SMEs Direct Marketing Development Infrastructure SMEs Direct DC-MSME Business Member Organizations Grant Direct Contribution 38 .2.
some time even the existence. Therefore to make the BDS affordable by SMEs. Hence. many a times these service providers are not in the reach of SMEs. profitability and sustainability. At present the cluster firms are having reasonable linkage with the banks in availing term loan. the SMEs can improve their productivity. Dehradun district has a larger concentration of bank branches in the urban regions. the service providers are inadequate to the cater the industry. SMEs are 39 . however due to lack of awareness relating to this scheme. The banks have positive attitude towards the cluster firm. As the demand for various categories of BDS providers are increasing due to presence of large base of small and medium enterprises in every sector. it is suggested to empower existing BDS service providers. Cluster firms are utilizing the services of the banks and financial institutions. Public Business Development Service (BDS) Providers a) Small Industries Development Bank of India (SIDBI) SIDBI provides financial support for SMEs under different schemes. b) Other Banks & Financial Institutions Uttarakhand state had a presence of 55 bank branches in the cluster area. very few (7%) cluster firms have utilized the services of SIDBI products. but due to the high interest rates. cash credit and other non-fund based limits. the SMEs have to depend on Management Consultants or Business Development Service provider (BDS) to meet some requirements.6 Overview of Business Development Service Market or Management Consultant in Uttarakhand: As the regulatory requirements and technology of SME‟s are fast changing on a regular basis.2. to understand and adopt the same is difficult for SMEs as they can afford to employ qualified personnel exclusively for this purpose. By address these changing requirements. Due to short of service providers and high demand of available service providers.
Dehradun At present the services of DIC are confined to registering of EM2 for cluster firms. implementation of government promotional schemes. a government of Uttarakhand enterprise was incorporated as a limited company in the year 2002 with main objective to promote industries and develop the infrastructure. coordination with banks and conducting awareness programs on government Schemes for the benefit of local SMEs. But no such services are available with DIC. environmental related services. The initiations of the Lead Banks lead to growth of the SME‟s. SMEs request the banks for separate financial package with subsidized interest rates. To meet this objective SIDCUL has established 6 industrial estates. d) State infrastructure & Industrial Development Corporation of Uttarakhand Limited. and knowledge base services from DIC. SMEs are expecting the high range of services like energy audits. (SIDCUL): State infrastructure & industrial Development Corporation of Uttarakhand Limited. The lead banks of the cluster districts are Punjab National Bank and State Bank of India. arranging required licenses through single window scheme. c) District Industries Center (DIC). SMEs are utilizing the services of the DIC. (8) 40 .postponing of the investment on the facilities required for GMPs. wherein large number of pharma SMEs has set-up their facilities. (SIDCUL).
Assessment of BDS Market Services BDS Category Availability Utilization status Finance/ Taxation Chartered Accountants Tax Consultants Advocates Technical Consultants Locally available Medium Legal Advisors Technology Improvement Quality Management Locally available not available Low Low Quality Testing Centres ISO Certification WHO-GMP Not locally Available Locally available Low Low Human Resource Marketing Development Research & development Manpower Training Marketing Consultants Scientists Available Not Locally available Low Low Not available Nil 41 .
e. The Pharmaceutical cluster of Dehradun has spread in two districts i. 42 . Garhwal and Kumaun).2. development. during the visit to Uttaranchal form 29th to 31st March.SMEs: Uttarakhand is the 27th state of the Republic of India and was carved out of Uttar Pradesh on 9th Nov 2000. 2002. The new initiatives provided as per the required incentives as well as an enabling environment for industrial development. Dehradun and Haridwar (Haridwar and Roorkee town) in a radius of 60-65 km. The industries eligible for such incentives will be environment friendly with potential for local employment generation and use of local resour ces” In pursuance of the above announcement.7 OVERVIEW OF UTTARAKHAND PHARMA. The state has a population of 8. it has been decided to provide the following package of incentives for the states of Uttaranchal and Himachal Pradesh. financial concessions and to provide easy market access. The state is bordering Himachal Pradesh in the north-west and Uttar Pradesh in the South and has international borders with Nepal and China. improve availability of capital and increase market access to provide a fillip to the private investment in the state. had. with 13 Districts. infrastructure. History of the Cluster The Hon”ble Prime minister. inter alia. inter-alia made an announcement that “Tax and Central Excise concessions to attrac t investments in the industrial sector will be worked out for the special category states including Uttaranchal.5 million with average density of 159 persons per sq km. The State has two Divisions (viz. Accordingly. discussion on strategy and Action Plan for Development of industries and generation of employment in the states of Uttaranchal and Himachal Pradesh were held with the various related Ministries/agencies on the issue.
30 lakhs. Maharashtra. (At present stamp duty concessions available only in the selected Hilly areas and special IT Zones) Interest incentive @ 3% with a maximum of Rs. provided they have availed loan form state level financial institutions or banks operating Uttaranchal and not defaulted in payment of principal or interest installments. Exemption from entry tax on plant & Machinery for setting up industry or undertaking substantial expansion and modernization Land use conversion and development charges regime will be rationalized. Stamp duty concessions will be provided in respect of land in specialized commodity parks. Failing which the government will have the right to recover the entire amount of incentive availed. 2 lakhs per annum per unit provided to new Small Scale Industries (SSIs) and existing SSI s for modernization and substantial expansion. To take the advantage of these benefits many pharmaceutical units form states like Gujarat. Central Transport subsidy extended till 2007. including IT parks. However for SSI units and units notified as Trust industries being set up in remote areas. 3 lakhs /annum. and Andhra Pradesh etc. The interest incentive shall be admissible to the unit only if it remains in operation for a minimum of three years from the date of disbursement of last installment. Capital investment subsidy @ 15% with a maximum of Rs. the interest incentive shall be granted @ 5% with a maximum Rs. established expansion units within Uttarakhand setup by 43 .Uttarakhand offered attractive fiscal incentives and concessions to new investors which included 100% Central Excise exemption for 10 years 100% Income Tax exemption for first 5 years and 30% for nest 5 years for the companies and 25% for others.
Hyderabad) State infrastructure & industrial Development Corporation of Uttarakhand Limited. To meet this objective SIDCUL has established 6 industrial estates. Remaining 21 percent of the entrepreneurs came from regions/ states including NCR region(8%) Madhyapradesh (8%) and West Bengal (5%). 32 percent have come from southern states like Tamilnadu (10%) and Andhra Pradesh (22%). 22 percent of the entrepreneurs have came from Western states like Maharashtra (12%) and Gujarat (10%). 44 . To take the advantage of these benefits. entrepreneurs came from other states and established their units. (Source: Pharmexcil. (SIDCUL).the entrepreneurs form outside Uttarakhand. Water. Communication facilities etc) in a big way. a government of Uttarakhand enterprise was incorporated as a limited company in the year 2002 with main objective to promote industries and develop the infrastructure. Most of these units have started their production form 2007 and have built up excess manufacturing capacities keeping in view of their future growth. Roads. SMEs are utilizing the services of SIDCUL (Power. 25 percent of the entrepreneurs are from Uttarakhand. wherein large number of pharma SMEs has set-up their facilities.
of Employee 10-99 100-199 27 25 Source: Questionnaire/Field data No.com 6 3 178 112 Rs. 740 crores Rs. Haridwar Districts Tablets Capsules Liquid orals Ointments Injectables Nature / Type of firms Formulations/ Manufacturing No. 445 Crores Rs. 672 Crores Rs.com Cluster Location Products Dehradun. of Small enterprises No. of Medium enterprises Investment in Small enterprises Investment in Medium enterprises Annual turnover in Small enterprises Annual turnover in Medium enterprises Total annual turnover of SMEs Employment in Small enterprises Employment in Medium enterprises Total employment in SMEs Presence of BDSPs Utilization of BDSPs by SMEs Source: http://www. industrial estates occupied by Pharma units No.2.8 Present Dehradun Pharma Cluster Snapshot Place Dehradun Haridwar Roorkee Total As per Registrations 55 95 140 290 Small units 19 27 66 112 Medium Enterprises 25 18 30 73 Loan licenses 11 50 44 105 (9) Source: http://www. 1008 Crores Rs.dehradunbds. of Associations in Pharma sector No. 1748 Crores 8010 members 8064 members 16074 members In adequate Low 45 .dehradunbds.
105/-) implementing GMP compliances (10) Source: www.com 46 .dehradunbds. Value Chain for a formulation unit A which (Assumption: Cost of Raw Material assumed as Rs.Comparative Value Chain Analysis More than 80% of the Dehradun cluster units are not GMP Complaint. The comparative value chain analysis of a unit which is following Good Manufacturing Practices (GMP) with other unit which is not following appears below. 100/-) implementing GMP compliances Value Chain for a formulation unit B which not (Assumption: Cost of Raw Material assumed as Rs.
even though the cluster firm A spends higher production cost. The cluster firm A not only realizes higher profit margins and also command better market respect. Due to some reasons.dehradunbds. Considering overall situation. The cluster firm A prescribed test methods to test the quality of their raw materials whereas the Firm B does not follows as prescribed. The chances of product failure and product return are very less. The cluster firm A realizes higher profit margins than the firms B in selling through trade network. This provide some cost saving. which is normally will be slightly higher price. The cluster firm A procures raw materials from approved vendor whereas the other cluster firm B is procuring raw materials from open market. if the product fails during its life time. whereas the firm B needs to depend on local traders to market their product. the final profit realization is higher compared to the other firm B.com) 47 .The value chain has been analyzed and the following are conclusions: Out of the two cluster firms one is following good manufacturing practices as prescribed whereas the other is not following. (10) (Source: www. The cluster firm A can able to sell their product through profitable mode. the reasons for failure can be investigated very easily.
support institutions.2. The Ahmedabad formulation cluster in Gujarat can be considered as a benchmark in parameters like technology. association BDS provision etc. Learning from Benchmark cluster Cluster Ahmedabad Formulation Local Raw Material High Availability Adherence of Current High (all 600 units) Good Manufacturing Practices (cGMP) 600 units 160 out of 600 WHO-GMP Availability of High Manpower Dehradun Formulation Low Presence of Pharma manufacturers associations Knowledge Workshop Information Dissemination Own office infrastructure Weekly new bulletin Membership booklet Availability of Testing Labs local market High High Yes Yes Yes Yes Agenda for intervention Strengthening the Raw material suppliers Low (20% of Strengthening BDS the 290 units) support for achieving current good 290 units manufacturing 70 out of 290 practices certification Low Improve the availability of trained manpower through trainings Capacity building of Associations Low Low No No No No 14 High 02 Low Business Development High Service providers or Management Consultant Low Facilitate improve easy testing facilities Assist in creating network for market promotion Introduction of new BDSPs and Capacity building of potential local 48 .9 Some Business Strategies to improve the Competitiveness of the SME’s : Benchmarking: Benchmarking is the process through the best practices in the industry can be adopted to beat the competition or to have long term sustainability.
in existing and/or new markets – there are four possible product/market combinations. existing products): Market penetration occurs when a company enters/penetrates a market with current products. presence of local market. The matrix consists of four strategies: Market penetration: (existing markets. Product-Market Growth Matrix: The Ansoff Product-Market Growth Matrix is a marketing tool created by Igor Ansoff and first published in his article "Strategies for Diversification" in the Harvard Business Review (1957). The matrix allows marketers to consider ways to grow the business via existing and/or new products. The best way to achieve this is by gaining competitors' customers (part of their market share). with 49 . This matrix helps companies decide what course of action should be taken given current performance. good number of BDS providers or Management Consultants.Adoption of Quality control norms. vibrant industry associations. Other ways include attracting nonusers of your product or convincing current clients to use more of your product/service. are the major advantages of Ahmedabad formulation cluster which are found lacking in Dehradun pharmaceutical cluster. good testing labs. strong local knowledge base in the form of national level knowledge institutes.
Product development: (existing markets. product development (requiring. As a result it almost invariably leads to physical and 50 . Diversification (new markets. Igor Ansoff stressed that the diversification strategy stood apart from the other three. in effect. In his original work. Market development: (new markets. Lucozade was first marketed for sick children and then rebranded to target athletes. While the latter are usually followed with the same technical. diversification usually requires new skills. new techniques. that the element of risk increases the further the strategy moves away from known quantities . new products): The matrix illustrates. This is a good example of developing a new market for an existing product. Again. the market need not be new in itself. in particular. financial. Thus. and diversification (new product and new market) generally carries the greatest risk of all. a new product) and market extension (a new market) typically involve a greater risk than `penetration' (existing product and existing market). existing products): An established product in the marketplace can be tweaked or targeted to a different customer segment. as a strategy to earn more revenue for the firm. Market penetration is the least risky way for a company to grow. and merchandising resources which are used for the original product line. For example.advertising or other promotions. new products): A firm with a market for its current products might embark on a strategy of developing other products catering to the same market (although these new products need not be new to the market.the existing product and the existing market. the point is that the product is new to the company). the point is that the market is new to the company. and new facilities. which did not use the matrix form.
It is useful to use Porter's five forces in conjunction with SWOT analysis (Strengths. Three of Porter's five forces refer to competition from external sources. Weaknesses. (11) [Source: Ansoff. A very unattractive industry would be one approaching "pure competition". Attractiveness in this context refers to the overall industry profitability. Strategies for Diversification. Opportunities.organizational changes in the structure of the business which represent a distinct break with past business experience. Porter referred to these forces as the micro environment. It uses concepts developing.113-124] Porter's five forces: Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. to contrast it with the more general term macro environment. pp. The remainder are internal threats. and Threats). 35 Issue 5. Sep-Oct 1957. I. Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market.. Vol. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. They consist of those forces close to a company that affect its ability to 51 . Porter of Harvard Business School in 1979. Harvard Business Review.
business model or network to achieve a profit above the industry average. The Five Forces: The threat of substitute products or services The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. as online product can easily replace material product.three forces from 'horizontal' competition: threat of substitute products. requires a business unit to re-assess the marketplace given the overall change in industry information. A change in any of the forces normally. and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. Porter's five forces include . 52 . Firms are able to apply their core competencies. The other elements are the value chain and the generic strategies. This five forces analysis is just one part of the complete Porter strategic models. profitability is low and yet individual companies.serve its customers and make a profit. and the threat of new entrants. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. by applying unique business models. have been able to make a return in excess of the industry average. Information-based products are more prone to substitution. As an industry. A clear example of this is the airline industry. the threat of established rivals.
The existence of barriers to entry (patents. today competitors need only a website to enter a market 53 . which eventually will decrease profitability. the more profitable the industry the more attractive it will be to new competitors Internet era. the profit rate will fall towards a competitive level (perfect competition). Unless the entry of new firms can be blocked by incumbents. This results in many new entrants. rights.)The most attractive segment is one in which entry barriers are high and exit barriers are low.Substandard product Quality depreciation The threat of the entry of new competitors Profitable markets that yield high returns will draw firms. Few new firms can enter and nonperforming firms can exit easily. Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Customer loyalty to established brands Absolute cost advantages Learning curve advantages Expected retaliation by incumbents Government policies Industry profitability. etc.
This applies to products and services. and innovation. Competition between online and offline companies.brick-andmortar Level of advertising expense. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival. Companies that are successful with introducing new technology are able to charge higher prices and achieve higher profits. click-and-mortar -v. Powerful competitive strategy used by a company which can intensify competitive pressures on their rivals. Sustainable competitive advantage through innovation. particularly in industries with high fixed costs 54 . Technological advances protect companies from competition. quality. the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Examples of recent technology advantage in have been mp3 players and mobile telephones. which also affects the customer's sensitivity to price changes.The intensity of competitive rivalry For most industries. The bargaining power of customers (buyers) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure. How will competition react to a certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price. until competitors imitate them.
labor. or.The bargaining power of suppliers The bargaining power of suppliers is also described as the market of inputs.ability to forward vertically integrate and cut out the buyer (12) [Source: Wikipedia and Business Strategy. Suppliers of raw materials. and services (such as expertise) to the firm can be a source of power over the firm.g. components. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Supplier concentration to firm concentration ratio Employee solidarity (e. e.g. Suppliers may refuse to work with the firm. ICFAI Centre for Management Research] 55 . labor unions) Supplier competition . when there are few substitutes.. charge excessively high prices for unique resources.
CHAPTER 3 Findings and observations: 56 .
Mainly Factor Analysis. 4. And these barriers should be well recognized early for development of the SME‟s. 1. 7.Findings and observations: Data collected through the Questionnaire is in vein if it is not analyzed. ANNOVA and Charts are being used in this study to analyze the data. According to the survey. 8. MS-Excel. Lack of management skill Lack of proper marketing skills Low purchasing power of the population Source: Field Data/Questionnaire These are some of the barriers according to the respondents‟ are resistant force for SME‟s. 2. According to the respondents the common barriers to the growth of SME‟s are given below in the most significant to least significant manner: Si No. the respondents have pointed out some barriers to the development of SME‟s in India. Barriers Lack of qualified human resources Difficulty in accessing to credit Lack of clear government SME program Low coordination between organizations supporting SMEs 5. The suggestions to remove or decrease these barriers are given in the later part of this project report. 57 . 3. so analysis of the data is done through SPSS.
0. new process.1 Factor Analysis through SPSS: Achievement of the SME’s during last two years: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Whereas KMO value signifies that the data that have been collected through questionnaire are relevant.318 88. 58 .570 10 . Bartlett's Test of Sphericity Approx. According to theory KMO value has to be in the range of 0. new technology. In the world every company have some key success factors as a base. ChiSquare df Sig. From the above table it is concluded that the achievement of the SMEs is being explained by 71.030 4 . sales growth and profit. sales growth and profit maximization (Independent variables) by which the key success factor is being explained by 71.098 43.155 43.098 2. In this case with taking into consideration some factors like new product development.553.712 3 .614 71.712 1. Variables are new product.5<KMO<1.712%. It signifies the all the variable taken for research attributes are relevant to this study. adopting new technology.000 Extraction Method: Principal Component Analysis. . introduce new technique.000 Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings Componen % of Cumulative % of Cumulative t Total Variance % Total Variance % 1 2.553 74.267 95.712% by the variables.098 2 1.235 4.431 28.3.816 16.431 28.098 43.363 7. In this case the research has got the KMO value of 0.297 5 .155 43.703 100.614 71.
587 . From the rotated component matrix table we can conclude that new products.5 1.0 0.069 technology Process .173 .049 Sales growth .5 2.916 Profit .Scree Plot 2.5 0. Rotated Component Matrix (a) Component 1 2 . new technology and process have come under component 1 and sales growth and profit have come under component 2.0 1 2 3 4 5 Component Number The Eigen Values from the Total Variance explained has been put in this Scree Plot and the Scree plot justifies that all the parametres taken for the research purpoes are appropriate for the study. a Rotation converged in 3 iterations.033 .829 .941 Extraction Method: Principal Component Analysis.882 .0 Eigenvalue 1. Rotation Method: Varimax with Kaiser Normalization.116 New products New . To have good market share SMEs must invest good amount of money on R&D for 59 .
587).034 1. As new Business Processes and the new technology is highly co-related with increase in Sales growth and also the qualified manpower is also lacking in this SME ‟s. Bartlett's Test of Sphericity Approx.071 50.059 1.201 24. So there is a urgent need to improve in these field.622 12.682 87. ChiSquare df Sig.026 50. 3.882) is also .059 3 .034 26.885 4 .433 100.173) is highly related to the objectives followed by profit maximization (0.000 Total Variance Explained Comp onent Initial Eigenvalues Rotation Sums of Squared Loadings % of Cumulative % of Cumulative Total Variance % Total Variance % 1 1. Variables are Competitiveness as a location of 60 . introducing new process (0.innovation.538 7.829) and adopting new technology (0.941 18.299 25.989 2 1.2 Evaluation of the Home region of the SME’s Factor Analysis: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.989 25. .826 68. From the above table it is concluded that the Components of the Home Region for the SMEs is being explained by 50.934 18.204 24.567 5 .302 26.000 Extraction Method: Principal Component Analysis. To achieve at the market leader position one has to concentrate on sales growth because sales growth (0.033) new product development (0.059% by the variables.616 10 . That will effect in increasing sales and making profit.
61 .5<KMO<1.companies. Whereas KMO value signifies that the data that have been collected through questionnaire are relevant.8 0. It signifies the all the variable taken for research attributes are relevant to this study. Scree Plot 1.0.538.0 0. Availability of qualified personnel. Availability of suppliers. According to theory KMO value has to be in the range of 0. Transportation Connectivity. In this case the research has got the KMO value of 0.4 1.6 1 2 3 4 5 Component Number The Eigen Values from the Total Variance explained has been put in this Scree Plot and the Scree plot justifies that all the parametres taken for the research purpoes are appropriate for the study.2 Eigenvalue 1. Availability of suitable premises and plots.
531) and location (. From the rotated component matrix table it can be concluded that qualified personnel (. From the rotated component matrix table we can conclude that Location. suppliers (. So a SME has to take care of location while setting up a production house and searching for qualified labour. Here it is found that location and qualified labour have more relation with the productivity of the company.087 .556) has negative relation to efficiency of the home region of the company. premises to have bulk production capacity and qualified and skilled employees.131 Suppliers . qualification and premise have come under component 1 and suppliers and transportation have come under component 2.746 .251 Qualified Labour .821).408 Premise -.651) positive relation and premise (-0.045 .531 Extraction Method: Principal Component Analysis. To have good market share SMEs must have good location. Rotation Method: Varimax with Kaiser Normalization. 62 .Rotated Component Matrix (a) Component 1 2 Location . They must have good network in time delivery of the final products and have good suppliers.746). transportation (.821 Transportation .556 .651 .
those who is taking the services and who is providing the services to work for the mutual benefit. So. Poor Services 5.e. 58% are satisfied. 23% percent are not so satisfied and only 4% have said that the services are poor and 0% have said that they are dissatisfied with the services of the Management consultant. 63 . the Business development service provider or the management consultants has to design their advisory service to these SME‟s is such way so that it increases the satisfaction of the SME‟s by and large. Dissatisfied According to the survey of 52 SME‟s. It is advisory for the both the players i. The management consultants or BDSP‟s should not be biased while providing the advice. 8% are fully satisfied.Satisfaction Level of the SME’s: While judging the Satisfaction level o f the SME‟s those who have used the services of the Management Consultant or Business Development Service provider the following result has come out Source: Field Data/Questionnaire 1) Fully Satisfied 2) Satisfied 3) Not so Satisfied 4.
So using the services of t he BDSP‟s or Management Consultants has many positive implications and benefit. proper utilization of the services is vital to get the optimum benefit. It is found that out of 37 SME‟s. 64 . So.Contribution of the Management Consultant to the SME’s: While judging the Contribution of the Management Consultant or Business Development Service providers on SME‟s those who have used the services of them. 11 SME‟s believed that the services of the Management Consultants have facilitated the accessibility of loan and 15 of them believed that it has increased their work efficiency and 3 of them believed that it has increased their productivity. 8 SME‟s believed that the services of the Management Consultants have increased their Market Share. the following result has come out: Source: Field Data/ Questionnaire In this research it has been also examined the contribution of Management Consultant or Business Development Service Providers.
3. 65 . its contribution to SME‟ s in Uttarakhand. Alternative hypothesis: There is no significant relationship between management consulting firm and contribution by the consulting firm. the following hypothesis has been formed: Hypothesis: Null hypothesis: There is a significant relationship between management consulting firm and contribution by the consulting firm.e.3 Contingency Table: Consultant and Contribution cross tabulation Easy Accessibility Market Work to loan Share Productivity Efficiency Total 1 1 1 2 5 Accountant/Auditors Advertising and Promotion Service Provider Banks and Financial Institution Law Firms SME Service Centre Talent Market/Employment Training Service Provider Total 2 2 1 3 2 0 11 1 2 1 3 0 0 8 0 1 1 0 0 0 3 2 2 1 4 1 3 15 5 7 4 10 3 3 37 To prove the worth of Management Consulting firm i.
1592138 0.8108108 0.8108108 4.0384384 Training Service Provider 0.006574142 0.059167275 0.701972243 0.4076577 0.0300983 0.0211149 1.657414171 0.837838 -0.027027 -0.4864865 0.64865 0.0003604 Advertising and Promotion Service Provider 2 1. of sample 66 .108108 1.83784 -0.21622 0.2382883 0.420745069 0.3243243 1.795471147 0.027027 0.5135135 0.972973 2.0060811 0.0810811 -0.701972243 0.1773956 1 1.6216216 2.8918919 -0.0060811 0 0.236669102 0.81081 -0.18919 0.227903579 1.2432432 -0.456537619 0.456537619 0.3246622 0.0810811 1.002921841 0.08108 0.1891892 0.018261505 0.8720721 0.3767404 0.24324 0.0002457 0.982188 2 The value of CHI-SQUARE is ∑ (fo -fe) /fe= 12.420745069 0.6486486 0.046749452 0.2432432 -0.6162162 12.6486486 0.64865 0.675676 -0.035792549 0.982 Degree of freedom is (no of row-1)*(no of column-1) = (7-1)*(4-1) = 18 Talent Market/Employment fe = (Row Total*Column Total)/Total no.006574142 0.0007207 Banks and Financial Institution Law Firms SME Service Centre 0.24324 0.594595 2.3243243 2.353542732 0.6486486 -0.006574142 0.2473616 0.00073046 (fo-fe)2/fe 0.05405 0.059167275 0.62162 0.2162162 -0.236669102 0.6486486 -0.38641344 0.2432432 1.4054054 2 2.89189 0.1621622 0.02703 0.027027 -0.08108 0.2432432 1.4076577 0.003159 0.40541 0.08108 0.263696129 0.164353543 0.2162162 1.783784 3.181884587 2.8918919 0.0540541 -0.0810811 -0.02703 (fo-fe)2 0.00073046 0.fo Accountant/Auditors 1 1 1 2 fe (fo-fe) 1.4054054 -0.00073046 0.675676 -0.8378378 1.486486 0.135135 0.8918919 1.8648649 0.48649 1.0003604 2 2 1 2 1 1 1 1 3 3 0 4 2 0 0 1 0 0 0 3 2.4054054 0.4864865 -0.513514 0.1563707 1.
e. 67 . with the proper utilization of capable Management Consulting firms can contribute to the growth of weak SME‟s. By analyzing the questionnaire the value of Chi-square is 12.05 12.982 28.From the Chi-Square distribution table the value of Chi-Square at 18 degrees of freedom and 0.982. 0.869. In this hypothesis testing also the result is with the Management Consulting firms or Business Development Service Provider.05 significant levels is 28. there is a significance relationship between management consulting firm and contribution by the consulting firm.869 From the above analysis it can be said that null hypothesis is accepted i. . (Applying one tailed test). So.
SWOT Analysis .availability of Skilled Manpower Week linkages between BDS providers and SMEs Week linkages between industry and institutions No shared industry vision Lack of Public testing and research laboratories No professionals management in so many business operations Dependence on contract manufacturing Possibility of high attrition rates Opportunities Exploring international markets Drugs going off-patent Opening out of domestic market Improving industrial infrastructure in the state Cost reduction initiatives Stiff competition to drive Competitiveness Fully utilizing banking infrastructure Central and State level incentives and concessions for new investments Threats External competition / import substitution Regulatory ceilings on product prices Changing Government Policies 68 .Dehradun Pharmaceuticals Cluster Strengths Experienced and qualified entrepreneurs Large manufacturing capacities Availability of Technical institutions Weaknesses Poor adoption of GMP and regulatory norms In adequate availability of Raw materials and BDSPs locally Non.
CHAPTER 4 Suggestions and Recommendations 69 .
Suggestions and Recommendations: The Research has come out with some very serious issues which need prompt attention. Cluster firms are having shortage of skilled manpower problem due to inadequate availability of trainers and also the non linkage of SMEs with training institutions. 70 . Difficulty in accessing to credit The local Raw material suppliers/dealers are supplying the inactive materials against the orders. their investment levels are low and they are not in a position to fulfill the requirement of the industry of APIs. Quality Compliance Non compliance of the GMP regulations 3. Some actions are required to be implemented as soon as possible: Area Pressure points 1 HRD Shortage of skilled manpower 2. Low coordination between organizations supporting SMEs 4.
if possible Marketing i) Facing competition from MNCs and other GMP certified firms. ii)Low profit margins iii) High dependency on contracting firms.1 Suggested Solutions for SME’s: Business operation Problems being faced by firms in the present mode Non availability of bulk drugs locally Cost of raw material is high due to transportation cost Local raw material dealers are supplying only inactive materials Suggested Solution Required BDSPs / Management Consultant interventions Strengthening them in getting financial assistance for enhancing their capacities Create linkage with raw material suppliers of benchmark cluster Raw Material Organizing dealers meet Conducting small SME group meetings/ work shops to test facility of common procurement Facilitating establishment of Raw material hub. Quality compliance No entrance to international market Low level margins i) Conduct workshops on modern marketing trends to SMEs by Marketing Consultants ii) Group formation of GMP/ WHO GMP firms Market search Conduct awareness camps on GMP and linking the identified GMP consultants to SMEs Training of Chemists / Analysts i) Interaction with marketing consultants Interaction with GMP consultants 71 .4.
Tie Ups with Transportation Authority like Uttarakhand Bus Service 72 .Finance No proper financial Planning management Organize interaction meet with CAs /Bankers Enhancing of skills to the existing staff Linking SMEs with training institutes Create skilled to Pharma manufacturing firms Conduct Orientation camps for linking Financial consultants to SMEs Facilitating the BDSPs in conducting the skill development training through training institutions Man power Non availability of trained manpower Non availability of Manpower contractors/ Agencies Infrastructure i)In adequate availability Of Premises ii) Lack of common Testing laboratory iii) Lack Of Transportation Facility Felicitating in establishment of common testing lab Locally.
e.2 Following are the some of the initiatives which are required to be implemented as soon as possible: To empower at-least 15-20% of the SMEs (i. 73 . Systems & Processes Facilitate the cluster firms to establish raw material consortia for procuring quality raw materials at a competitive price. Facilitate the cluster firms to establish common testing laboratory on PPP mode. around 50-60 cluster firms) of Dehradun Pharmaceutical Cluster to practice the set National and International regulatory requirements through current Good Manufacturing Practices (cGMP). Facilitating in establishment of common waste management system on PPP mode Creation of awareness among SMEs on advantages in engaging BDS Creating Awareness on Good Manufacturing Practices (GMP) Identification of BDS providers from outside of the cluster Skill up gradation of the Existing manpower of SMEs Capacity building of Ancillary units to act as BDSP or Management Consultants.4.
So the consulting firm should a lways work for the interest of the SME‟s without any biasness for the upliftment for the both i. despite high fees. and also from management scholars in this study also SME‟s are quoting about their dissatisfactions although the percentage is less . there is often an expectation that the consultants audit the project results going forward for a set period of time to ensure their efforts are sustainable. They may fail to prioritize their responsibilities. it is difficult to implement because of the disconnect between the client and consulting firm after the project closes. At the end of an engagement between the client and consulting firm. These consultants bring few innovations." A number of critical books about management consulting argue that the mismatch between management consulting advice and the ability of business executives to actually create the change suggested results in substantial damages to existing businesses. Another concern is the promise of consulting firms to deliver on the sustainability of results. and a failure to develop plans that are executable by the client. Although sustainability is promoted by some consulting firms. the SME‟s and the Nations because SME‟s are contributing a huge amount to the nations GDP 74 .e. reliance on and propagation of management fads. placing their own firm‟s interests before the clients'. They are often charged with "stating the obvious" and lacking the experience on which to base their advice. Ostracized consulting firms are often accused of delivering empty promises. "Management consultants are often criticized for overuse of buzzwords. and instead offer generic and "prepackaged" strategies and plans that are irrelevant to the client‟s particular issue.4.3 Suggestions to the Management Consultant or Business Development Service Provider: Despite consistently high and growing revenues. both from clients. management consultancy also consistently attracts a significant amount of criticism.
Tata Energy Research Institute. „Micro and Small Enterprises in India. 5/6 iii) Kumar R.com/abstract=1284892 4) British Council. Personnel Review.in/ (6) Wikipedia: Management Consultancy 75 . British Council. http://dcmsme. CII & PwC.com/UserFiles/File/ESR%20Inducing%20Factors/UNIDO_Concpt%2 0Note_Business%20schools. Confederation of Indian Industry (CII) & Pricewaterhouse Coopers (2002) Corporate Social Responsibility Survey .in/ssiindia/MSME_OVERVIEW.References: 1) Ministry of MSME. 2001. . Murphy D F & Balsari V (2001) Altered images: The 2001 State of Corporate Responsibility in India Poll. by Ministry of MSME. United Nations Development Programme (UNDP).gov. of India. New Delhi i) Bombay Chamber of Commerce and Industry (2007) Socially Responsible business: from an SME Model to a Model SME using the Corporate Responsibity framework Mumbai (ii) Fisher C M. Govt.2002. Electronic copy available at: http://ssrn.weplayfair. New Delhi (5) Annual Report. 30. An overview 2007‟.pdf 2) http://www. Shirole R & Bhupatkar A P (2001) Ethical stances in Indian Management Culture.pdf as on 20-06-08] 3) Can Indian Micro Small and Medium Enterprises (MSME) Sustain Globalization with the Present Technology Mix? – A disaggregated study according to sources of technological know-how Indranil Biswas & Milindo Chakrabarti. UNDP. URL:http://msme.gov.
website: http://indiabudget.com (11) Ansoff. August 26.in 76 . URL:http://www..dehradunbds. SMERA. REPEC ERIM Series Webpage (8) Uttaranchal Overview. ICFAI Centre for Management Research Following are the some of the Literatures from which inference has been taken for the study purpose: Fueling the Growth of Small and Medium Enterprises by Linda Segre & Swati Mylavarapu Silicon Valley Microfinance Network. Harvard Business Review.(7) How Management Consulting Firms Influence Building and Leveraging of Clients‟ Competences Towards a conceptual framework Marc G. 2006. “UPS Asia biz monitor: Indian SMEs still Bullish” Economic Survey of India 2007-08 for Recent Initiative and projects.smera. Social Science Research Network (SSRN). I. van den Bosch and Henk W. SSRN ERIM Series Webpage Research Papers in Economics (REPEC).com (10) Source: www. Strategies for Diversification. Chapter 85. pp.dehradunbds.J. Baaij. Saturday Sep 27 2008. Repository at Erasmus University (DEAR).113-124 (12) Wikipedia and Business Strategy. SepOct 1957. DEAR ERIM Series Portal. Micro and Small Enterprises. Volberda. Availability: Academic.nic. Frans A. 35 Issue 5.in/ Business Standard. Vol. RATING CRITERIA FOR CHEMICAL INDUSTRY. Industry. Pdf (9) Source: http://www.
Other (what exactly?)____________________ 7. I am a student of ICFAI Business School. Training service providers D. Too high cost of money O. please circle the corresponding letters) A. Company name Telephone#___________________ E-mail________________________ 2. Talent market/employment agency E. In your opinion. 100-199 Position: D. Lack of management skill M. 200-499 E. Unstable legal environment B.An empirical study in Uttarakhand”. SME Service Centers G. Accountant/auditors H. Type of activity A. Lack of proper marketing skills E. Have you ever asked support from any of the following service providers? ( If yes. Insufficient support from local authorities H. 10-99 C. Private consulting Firms C. Lack of market information N. Lack of clear government SME program L. commerce & trade D. >500 4. Main products & Activities _________________________________________________________________ 6. <10 B. Person contacted______________ 3. Banks and financial institutions F. please circle the corresponding letters) A. what are the barriers to the development of the small and medium scale business in India (several answers possible) (if yes. Law Firms B.Annexure: QUESTIONNAIRE Dear Sir/Madam. conducting a marketing survey on “Need of Management consulting in the field of Small and Medium Scale Enterprises. I request you to fill this questionnaire & I assure that this data will be used only for study purpose & it will be kept confidential. Advertising and promotion service providers 77 . Number of employees A. Low purchasing power of the population G. 1. Uncompetitive products C. High level of taxation D. Difficulty in accessing to credit supporting SMEs I. Service C. Lack of qualified human resources K. Manufacturing B. Others (Please Specify) 5. Low coordination between organizations J.
20. 37. For what type of services you have asked that service provider to help? (Please circle the corresponding letters) A. Training F. Availability of suppliers E. 9. 1. 7. 1. 31. If you have sought services from this SME service provider/s than are you satisfied from them i) Fully Satisfied ii) Satisfied iii) Not so Satisfied iv. Evaluate the following characters of the home region of your company (Choose: 1 = very bad…5 = very good) A.5. We have achieved sales growth E. 21. 17. 19.8. 46. 1. 2. Dissatisfied E. 5. 2. 28. 29. 5. 41. Information for access to financing 9. 4. 5. Availability of qualified personnel C. 3. 4. 34. 45. 26. 5. 22. 33. 2. 8. 5. 1. 4. 38. 4. We have achieved increase of profit 1. Poor Services v. 78 27. 3. 2. 18. 12. Information on company creation B. 1. 15. Competitiveness as a location of companies 1. We have developed new business processes D. 3. 3. 10. 5. Business consulting G. 3. 3. 4. Company Achievements: Evaluate the following statements related to achievements of your company during last 2 years (Choose: 1 Strongly disagree………………………5 Strongly agree) A. 4. 12. 6. Please judge the area of contribution of the management consulting firm on your Enterprise i) Increase in Profit ii) Market Share iii) Easy Accessibility to loan iv) Work Efficiency v) Productivity 11. 2. 32. 4. 4. 3. Information about Indian legislation planning H. 2 3. 4. 13. 5. 36. 4. 40.2. 4. 2. 39. 24. 14. 2. 3. 3. 3. 11. 5. 1. Thank You . 5. 42. 16. Transportation Connectivity 1. 30. We have implemented new technologies C. B. 25. 5. 1. We have developed new products/ services B. 2. Search for information about other Indian or foreign companies D. 43. Search for partner/distributor C. 2. 44. 2. 35. Availability of suitable premises and plots D. 23. 1. Business If Not Satisfied then please specify the reason/s: 10.
Hema laboratories Pvt. Oasis Laboratories M/S Regent Health care Ltd. G. Amit Bajaj Mr. Gupta Mr. Ashok Kumar Mr. Mr. S. Pramod Khalani Mr. U. Household Pharmaceuticals Elder Pharmaceiticals M/S Adroit Pharmaceuticals Concord Drugs Ltd. I. Sunesh Babu Mr. Anil Gupta Mr.ANNEXURE 2: List of Reposndents Si No. M/S Cu-V-Kar Genetic Medicines Pvt Ltd.Sandeep Ahuja Mr. Anuj Goel Mr. Navanita Mr. Umesh Sanghi Place Pharma City Selaqui Pharmacity Selaqui Selaqui UPSIDC IND Area Selaqui Selaqui Selaqui Dehradun Selaqui Selaqui Selaqui Bhagwanpur Puhana Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Bhagwanpur Selaqui Selaqui Selaqui Selaqui Bhagwanpur Selaqui Selaqui Selaqui Selaqui 34 M/S Bajaj pharmaceuticals 35 M/S Pulse pharma 36 UNI CURE India Pvt. Ltd Rodec Pharmaceuticals M/S Windiass Biotech ltd. Harish Tiwari Mr. Sumit Mr. Jaspreet Singh Mr. Iyer Mr. Partha Mr. Kapil Mr.ltd Needs Pharma Pvt. Sanjeet Mr. Bhatia Mr. Ltd Panther Healthcare Pvt. Pankaj Mr. Abhilash Shah Mr. Balachandram Mr.Deepak kukreja Mr. Dinesh Tyagi Mr. Ltd Omega biotech Ltd Concent Pharmaceuticals Oxford Pharmaceuticals Omux Pharmaceticals M/S Crish Pharma India ltd. Vishal Miss. Jitendra Kumar Mr.Ramanadhan Mr. RamChandran B. Ltd 79 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Name Sharon Pharma Super Max Lab Cooper Pharma Ennature BioPharma Ltd East African(INDIA) Business Unit Innova Life Sciences Suncare Formulations M/S Secure (Pvt) Ltd. M/S Coronet Labs Pvt. Harshad Vaid Mr. Vinod Khalani Mr. Bhupendra Mr.Ravi Kumar Mr.ltd M/S Vance Health Contact Person Miss Swati Mr. Sanjay Sikaria Mr.L. Mahesh Kapil Mr. Madhusudhan Rao Mr. Ltd. K. Nitin Kr. Premier Neutricals India Glycols ltd. B. Ankur Agarwal Mr.Reddy Mr.S. M/S Octis Research Laborateries M/S Coral Laboratories Cotex Healh Care Pvt. N. Globin Pharma Pvt.
P. Pritpal Singh Mr. Vinay Gupta Dr. 45 Modhike pvt. Ltd.Kumar Mr. 40 Sarvear Pharmaceuticals 41 M/S Rhydburg Pharmaceuticals 42 M/S Natco Pharma Ltd. V. 51 M/S Vanguard Phamaceuticals 52 Mepromax Lifesciences pvt. Ltd. Ltd.N. Srivastav Mr. Ltd. Mr. Harish Mr.Agarwal Mr.Koteshwara Rao Anil Patel Selaqui Selaqui Selaqui Selaqui Selaqui Bhagwanpur Bhagwanpur Selaqui Selaqui Selaqui Selaqui Selaqui Selaqui Selaqui Selaqui Selaqui 80 . 48 HAB Pharmaceuticals & Research Ltd.37 M/S Yash pharma Laboratories Pvt. 50 Defodils Laboratories Pvt. 49 Panjon Pharma ltd. Sailesh Bansal Mr. Manoj Kothari Mr. Ltd. Y. Shahani D (Delhi) Ltd. Sanjay Dr.V. Ltd. 43 M/S Sidmak Laboratories 44 M. 39 M/S Surakha Pharma Pvt. K.Srinivas Mr. Ramesh Goel Mr. Rajesh Thadani Mr. Rahul MR. Ltd.G. 38 M/S Apple Formulations pvt. N. Amit K. 46 ABCO India 47 Kalindi Medicure Pvt.Shah Mr.
Location Map: 81 .
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