A Study on Business Planning and Marketing Strategy in the Context of Globalization for Small and Medium Enterprises in the Select Automotive Clusters of India

Abstract

SMEs/SSBEs form the back bone of the economic development in every country across the world be it developed, emerging or developing country. Besides industrial development in the country, they have unequivocally accounted to increased employment and exports. Their importance can be gauged from the fact that in the recent budget (Financial Year 2014-15) the Indian government had announced INR 100 billion fund for creating new businesses. The government further announced to reinforce substantively the manufacturing sector to revive economy and employment opportunities. Manufacturing has a cascading effect on the service sector as well besides ensuring industrial growth and employment. This is in addition to creation of a dedicated Ministry of Micro, Small and Medium Enterprises (MSME) way back in 2006. This emphasizes the resolve of the nation to ensure that SMEs grow and become profitable, thus contributing to the national economy. Attempts are also being made by government and other stake holders to rescue dying SMEs and revive those that are now dormant to unleash the locked resources though a variety of interventions and actions. Literature on what should be done to support the SMEs in their efforts are copious and freely available. However, there is sparse literature on what the Indian SMEs could do to help themselves survive and succeed. This study seeks to cull out factors and steps that SMEs and SSSBEs, particularly in the automotive and related light engineering sectors could take to withstand the kaleidoscopic changes happening in the business eco-system. A survey of literature was done to ascertain research gaps. Based on this and expert opinion a questionnaire was designed consisting of 57 items to test the three hypotheses formulated on the Likert scale of 5. There were also 9 items on nominal scale viz. Yes/No type in the questionnaire. A pilot test of this was done to test the rigor, relevance and the ease of administration on 51 respondents.