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This report highlights the study of Printstop India Private Limited Company for the analysis of Small and Medium Enterprise. The analysis was based on asking the Interviewee, Mr. Milap Shah a set of questionnaire so that the purpose would be served. There are various aspects which are covered in this report such as; brief history of the company from the day of existence, followed by an introduction of the report which states the objective which is, the difference between Small and Medium Enterprise management in compared to well-established company, and ability factors of the Small and Medium Enterprise. It ends with a conclusion, which states actuality of Small and Medium Enterprise in India.
TABEL OF CONTENT
A brief history of the companyâ€¦.â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.â€¦â€¦â€¦. 5
9.1 New draft discussion guideâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 18
9.2 Old draft dicussion guideâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 23
10. Meeting Logsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦... 29
A brief history of the company
Printstop is classified as a Small and Medium Enterprise under Ministry of MSME government of India,SMEs in India plays an important in generating employment, provide value edition, creating income and making healthy contribution to the economy. In India there are around 2.6 crore SMEs, which accounts forâ€¨95 % of the industrial units, 45 % of manufacturing sector output, 40 % of exports, 60 million employments. Creating 8000 valuable products.Whose investment in plant and machinery is not beyond 10cr.MSME.gov.in (2012) Print-stop Indiapvt.Ltd.Which is part of Small and Medium Enterprise. Printstop India as a family business the owner had to carry forward helm of Ratnadeep digital, which was a small Xerox shop run by Chandu Shah the owner's father, which paved way for creation of Print-stop Indiapvt.Ltd the company formed by young blood of energetic entrepreneurs and directors of the company are Milap Shah, Pratik Shah & siddhi Shah. Printstop indulged in the Making of visiting cards, corporate Stationary, brochures, posters, folders, Booklets, indoors and outdoors branding. It is also involved in gifting products, product Service &Brochures, Flyers.Printstop (n.d.)
Printstop was incorporated in the year 2007 as a family business by Mr. Milap Shah, Pratik Shah and Siddhi Shah with the idea to do something exciting in India, which was successful internationally. The company was initially formed in the January 2007, where their first store came-up in May 2007 later at present the company has around 5 major stores with one mini store in Mumbai (India) along with online presence With total employees strength of 40 working full time and having its presence in the printing and making of corporate stationeries with the annual turnover of 5cr. Justifies the company as Small and Medium Enterprise (SMEs) according to MSME government of India. The company as SMEs also faces issues pertaining to cash flow,Government Regulation issues, HR issues, which the company tries to learn and adapt on how to deal with these issues The company goal for success in future is to inventing and re-inventing products offered to its retail customer segments and corporate customers such as McDonald, kottak Mahindra bank, deustscheBank, icici bank etc. and attract more clients to its business in near future.Printstop (n.d.)
Chell and Baines 2000, states that Networking is the action by which an owner-founder of an enterprise develops and maintains formal and informal way of contacts for transaction and business expansion purposes.
The primary purpose for entrepreneurship network is for resources, capital, skills and capabilities, knowledge and information with core function is for seeking ideas for initiating business start-ups/ opportunity with continuous innovation for economic renewals, networking at times helps in overcoming financial constrains allows to get access to resources at a limited cost otherwise leading to decrease in innovation development resulting in sustainability of the SME in the market. Walse, S. (2012)
SME networking often reflects by owner/founders personal networks. Networking of SME is often based strong ties and weak ties. Where strong ties are related to capital bonding within family and friends.Kirkels, Y. (2010), Mr. Milap Shah uses his strong ties; his father who provided the financial base for the company during the initial start-up stage.Whereas, the weak ties of a SME are often referred to bridging capital within competitors, suppliers, worker, customers, membership organization, and partner's organization endorsing social relationship alongwith it. Kirkels, Y. (2010),Varamaki and Vesalaimen (2003) state that a business network as "certain co-operative groups which may consist of firms with a vertical or horizontal relationships and whose member firms have a common interest and together seek some means to achieve a higher level of performance by using multilateral group design" Mr. Milap who thinks business networking for a Small and Medium Enterprise is very crucial since it helps to maintain interaction with the customers with the help organizational membership where he himself is a active member in organizations like TiE (The Indus Entrepreneurs), BMPA (Bombay Master Printers Association), SLP (Startup Leadership Program) etc., Milap also thinks that suppliers plays a very crucial role in the networking system according to Milap a loyal supplier may help an owner manger in negotiating in cost of the raw material.
In order to understand the concept of networking SMEs should deeply know social networking process where Small and Medium Enterprise requires coordinating to acquire market knowledge and competencies that are usually difficult to obtain through partners who lack required knowledge. A SMEs can use their knowledge for their own advantage by using brokers i.e. mediators who facilitates networking.Kirkels, Y. (2010), With respect to print-stop, networking through brokerage has allowed them to access their market and resources in the form of specialized information did not limit his company to one particular location and extended Printstop India to different locations like Sion, Kandivali, Vile Parle, and Lower Parel. To extend their networking reach they have created a virtual digital store which in turn not only creates their presence in their present network by allowing corporate business to register online which has also creates an opportunities for future networks and helps in determining the need of the market and to enter in other market segment in near future.Printstop (n.d.)
Print stop India has adopted online means to maintain a proper network with its clients by reflecting how they trust their company and increasing their customer-based network by providing them special offers and idea of online feedback process.
After initial phase of Printstop India the company when started its expansion activities which required Milap Shah and the other owner to rely on external source of network for the knowledge which came from the market analysis, infrastructures information from the mediators with the viewpoint of best possible location and capital from bank loan as debt which should that owner weak ties were becoming its strong ties through the external networking source.
According to Milap his father sources of networking helped him a lot to gather skilled worker who were able to operate the printing machines, the suppliers who use to supply the raw material previous to his father eg: - Paper suppliers and ink suppliers in his initial formation stage of the company were very helpful since his father had a small printing business earlier before allowing Printstop India experimentation to take place.
Drucker, (1985) argued that innovation is the means by which entrepreneur either creates new wealth producing resources or by provide existing available enriched resources for creating wealth.
Innovation in Small and Medium Enterprise are often crafted through innovation or seek innovative activities continuously. Innovation in SMEs assists to create quality jobs and adds value to its existing product and service provided by continuously involved in innovative activities. Economic Impacts of Innovative SMEs and Effective Promotion Strategies (n.d), which Printstop India as a small business enterprise continuously tries to come up with the creative ideas to outstand along the crowd with the help of their core team member which coordinates with the other departments and also allows creative people to innovate, design and provides opportunities in implement of their ideas and making the employees new processes allowing the challenges to exists so that innovative activates are in tune with the company growth and ever changing demands of the industry.
Schumpeter (1934) stated in his 'new combination' that innovation is way a new quality of product, new market and new source of supply of raw material is formed which reflected how Milap Shah as a co-founder used innovative style as its entrepreneurial skill in his company.As a SME the Printstop India thrives to innovate and keeps on trying new disruptive means to get more Business, more Clients with help of their technology for instance Printstop India was the first to buy the bizhub c8000 machine in Maharashtra, India with the capacity to produce 10000 copies of 13 x 9 inch sheets which isn't available through Mumbai for such bulk production with high standard quality. Printstop (n.d.)
Exploitation of new technologies by small and medium business is mean for sustenance and reduction in the cost. Which includes, Internetas medium to sell the product reducing the cost incurred during the transitions, customizing the individual product leading to positive technological innovation.Brooger (2009), where Printstop India integrated in their SME since their whole backend, quality is based on hardware technology used in making of corporate stationaries and print quality products, which helps the company in operational efficiency, scalability is because of Software Technology. The company has created a virtual digital store online for customer and corporate companies to place their orders in bulk via free registration so that the customers are updated about the product and track their delivery with facilities of online payment, providing online design packages for star-up with the aim of providing end to end service design as a one stop solution for its customers by incorporating a separate wing for design solution in the company known as the 'pehchaan'founded in the year 2010 for start-ups to create brand collateral within their budget with the purpose of bridging the gap between DTP operation and expensive agencies. The company has also started online solution for corporate companies providing them with professional and innovative printing solutions and allowing companies to try their personalized services and the online custom storefront model with delivery in both domestic and international market. Printstop (n.d.)
Competitive business environment is to attract investment and people to build and sustain economic and industrial progress Innovation, Creativity and Leadership (2008) where Printstop India takes competitive business environment in positive way where it creates a healthier and more innovative business landscape for the company by being transparent in their work by providing a fixed rate card for the logo design, corporate stationaries, other design such as flyers,poster, calendars, brochure, invitational card, standee and banners and also providing email deign in statistic jpg format with the html coding; people in uniform providing products rather than services, so you can find products like Business Cards, envelopes, Flyers etc.
To sustain in the market SME financing is done at various stage of an SME life cycle, which includes the initial startup, the early development phase, and the growth and maturity phase. SME financing differ by the stages the SME is developing their business. Ruis, A. et al. (2009),
SMEs financing enhances the entrepreneur desire to achieve objective of the company, promoting economic growth, competitiveness, entrepreneurship and innovation, and in creation of new jobs. The most traditional way SMEs funds their business in the seed or start-up stage is through informal equity, where capital are raised from family and friends to be invested in the business.Ruis, A. et al. (2009), Milap Shah who started his company in January of 2007, as a printing firm, where he implemented bootstrapped strategies as form informal equity in the initial stage. Bootstrapped is a method using saving for funding the initial development and growth of a business. As an internal form of investment, which came from owner's father Mr. Chandu Shahwho used to run a local print shop which provided a base for starting the firm, where Milap as an owner use to assist his father in the print shop which allowed him to know about the of the working of an printing organization and about the printing industry with independence and freedom given by his father paved the way for the Milap and other owners for creation of Printstop India pvt. Ltd.Peacock, D. et al. (2008)Â
After reaching certain scale in market a medium size organization are often provided bank loan for expanding their business based on their business cycle with aim for reducing the credit ratio of the firm. Ruis, A. et al. (2009), In the early years of the company, Milap required refinancing for the expansion of business; as the saving were not enough to fund his aspirations, due to lack in assets, credit records and limited time since start of operations and risk associated with the business because the enterprise deficit wealth. Hence he resorted to debt financing to bring in additional capital to the business, which was obtained by taking a bank (business) loan using his personal assets as collateral mortgage. After reaching the desired scale the company decided to expands its small size organization by opening its first store in Sion in 2007 followed by setting up stores in lower parel in February 2008, vile parle store in October 2010, powai store in December 2010 and shifting their corporate business hub from Sion to lower parel and setting up their mini-store in Kandivali 2012 all this was possible with the help of debt financing which bought additional capital to the business. Eakins, D. et al. (2008), During the phase of expansion, for raising the capital for business Mr. Milap also faced certain financial constrain; various government policies restricted the growth of the company, the fluctuating rate of the banks for the borrows and the lenders and the cash flow issues in the business but with the strong education background with wealth of experience from his father the owners of Printstop India were optimistic about the working of the financial business model for their organization.
To maintain the cash flow in near further the company has started investing in the business by upgrading their printing equipment's with new modernized equipment with aim for more output per unit and acquiring the other business in the digital segment of the print industry to increase their customer's base so that the company will be in a position to avoid uncertainty in near future. The witness in the growth of Printstop India in 2011 by 50 % that declined to 20 % in 2012 with a moderate growth was due to lack of flow of capital leading to underutilization of finance and the market condition.
Kiran, V., Majumdar, M. & Kishore, K., (2012) argues that Marketing is the process of promoting the entire business from the viewpoint of the customer. Therefore the concern and a responsibility of marketing must be spread throughout the entire business. Marketing is a process of fulfilling the desire of the stakeholders by creating value for them.
Printstop provides personalized and customized products to both the market segments; Retail Customer Segments (B2C) and Cooperate Customers (B2B). They provide their target market with various product ranges like; visiting cards, stationery, broachers, posters, certificates, presentation, training manuals, calendar & many more. To make it easy for the B2C customer accessibility, Printstop has opened their brunches at Sion, Lower Parel, Vile Parle, Powai and Kandivali. They have well understood that Cooperate Customers are very busy with their own work and therefore provides online services to them. This makes the corporate customer or other customers to take advantage of the opportunity, which is being available.
The market in which Printstop is operating in is influenced by the market force (i.e. demand and supply). To stimulate the demand of the customer Printstop practices in-house marketing activities to reduce the cost. A well-established company can have its own formal marketing network, media campaigns, and sales forces, but a Small and Medium Enterprise may have to depend totally on personal efforts and resources, making it informal and flexible Kiran, V., Majumdar, M. & Kishore, K., (2012). Since Printstop is a small and medium scale enterprise it cannot afford to market its product through large mediums, therefore the marketing communication adopted by Printstop to interact with its customers are word of mouth, website, e-mail, cinema advertisement, bus advertisement and participation in exhibitions. The most active form of communication is words of mouth and website.
Hulbert states that it is increasingly recognizing that marketing is perceived and undertaken by entrepreneurs in different concepts rather than using marketing model presented in conventional marketing textbooks Hulbert et al., (1998). Stockes argues that Small businesses owners shy away from formalized promotional campaigns and rely instead on Word Of Mouth to develop the customer base through recommendation Stokes et al., (1997). Printstop believes in maintaining its loyalty among its B2B customers and B2C customers by updating them about their new offering and new products. They believe in this statement because of the faith in word of mouth. Even though word of mouth doesn't cost a firm anything, but still it holds a significant role because of the benefits, which arise from it. To a small-scale business like Printstop loyalty equals to more customer. The reason behind this belief is that when customers are satisfied from a company like Printstop, these customers would generate more customers through recommendation process.
Malosi, K., (1999) Claimed that Internet is growing faster than all other communication technologies that have preceded it. This promotional tool is efficient, cost effective and its reach is unassuming and overwhelming In this competitive era, it is very crucial to understand the benefit, which arises from the use of Internet, and take advantage of it. Printstop having an India online presence which provides the customer with all the detail required about the company and the products, and also give a user friendly appearance so that users can easily access all the areas of the website. Other than providing details about products, it also updates the website on the basis of making it more interactive; "Make your own design", and also update on new products. Other than those facilities, customers can even make an order, personalize the order and get frequent update on when the delivery would be with help of free online registration at the company's website.
The report reflects upon the various issues and challenges faced in the management of a Small and Medium Enterprise, due to availability of resources, funds and government policies. Small enterprises are the essential part of the Indian economy as the maximum employment is created many firms. Hence it is very important for the government to create infrastructure, nurture the start and growth of these enterprises. The four areas where entrepreneurs need to develop expertise are namely networking, innovation, finance and marketing.
The project revolves around an entrepreneur Milap Shah and the challenges and various opportunities faced or received by him while running a Small and Medium Enterprise. With annual turnover of 5cr. with 40 employees in his organization; networking was the most important aspect of his business from the initial start-up stage to the expansion stage with both his strong-ties and weak ties utilized by him in his business. Using innovative ideas to differentiate from the competitors and taking the business to whole new level, Printstop India started taking orders through the internet and delivering those ordered product using Just In Time strategy with 'pehchaan' as a separate deign section of the company differentiated his business and his products from the rest. Mr. Milap Shah had heaps of problems in accumulating finance for start is organization and running it without any hick-ups; he had to use all his family savings and even put his house as collateral to accumulate funds and later used bank loan for the business. As a Small and Medium Enterprise Mr. Milap Shah chose to market his company through Word of Mouth marketing as their main priority to retain customer, email and advertisement over Internet and hanging poster on buses, which was economical and effective for the company, which has made Mr. Milap Shah and the other owners to be successful in running the enterprise.
The report was an effective learning curve for us to learn about the Small and Medium Enterprise functioning and the management style required in running a small business with motive to be successful in the market.
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