Discussion Questions and Guidelines
Description Elm Inc., as a small to medium-sized enterprise (SME), overcame the limitations of its size and (rural) location to achieve global success. Elm’s new business model enabled the company to capture more than 80 per cent of the global market for disc repair devices. Elm is now looking to diversify into other markets (such as LED lights), for sustainability and growth going forward.
Preparation for the class discussion (on Wednesday, 02/08/2017)
• You should familiarize yourself with the case and prepare some bullet points about what happened. • You should be able to identify the issues that required resolution and what decision rules might have been used to reduce the number of issues to be negotiated. • Also, you need to be able to share your thoughts about the major lessons.
A good preparation for the class discussion will help you prepare a well-developed and sensible answers to the assignment questions. Nevertheless, there are no right or wrong answers; there can be logical and illogical answers!
Your task:
1. First, provide a brief ‘Situation Analysis’ summarising the key facts that comprise the case. You may use bullet points (about 150 words). [10 Marks]
2. Discussion Questions (< 200 words each, but you should cover all the necessary points).
a. Successful SMEs such as Elm Inc. tend to target niche markets. Discuss the advantages of having a niche strategy. [20 Marks]
b. Explain the benefits to the firm and the region when a regionally based company such as Elm internationalises. [20 Marks]
c. What have been the key success factors for Elm? Do you think other SMEs can emulate its success? [25 Marks]
d. While SMEs can target global markets, it is difficult to remain successful in those markets. How can a firm such as Elm continue to succeed internationally? Discuss. [25 Marks]
[TOTAL: 100 Marks]
In your assignment, please clearly indicate the question number.
Page 2 of 2
Important Note: It is expected that in the case analysis, you should use the existing literature to support your arguments, evaluations and suggestions. Here is a suggested reading list for Week 2 FLO Live Case analysis. You are advised to use at least 2 references.
Suggested references (available on the FLO) Crick, D. and Spence, M., 2005. The internationalisation of ‘high performing’UK high-tech SMEs: a study of planned and unplanned strategies. International business review, 14(2), pp.167-185. Fernández, Z. and Nieto, M.J., 2005. Internationalization strategy of small and medium‐sized family businesses: Some influential factors. Family Business Review, 18(1), pp.77-89. Maurel, C., 2009. Determinants of export performance in French wine SMEs. International Journal of Wine Business Research, 21(2), pp.118-142. O’Cass, A. and Weerawardena, J., 2009. Examining the role of international entrepreneurship, innovation and international market performance in SME internationalisation. European Journal of Marketing, 43(11/12), pp.1325-1348. Zucchella, A. and Palamara, G., 2006. Niche strategy and export performance. In International Marketing Research (pp. 63-87). Emerald Group Publishing Limited.
Please go through the Topic Guide, Statement of Assessment Methods and Assignment 3 Case Analysis Grading Rubric for more information about this assessment.