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Silvine A Business Analysis

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William Sinclair and Sons Stationers

A Business Analysis

MODULE: Entrepreneurial Studies

TUTORS: Chris Whitworth and Paul Dix

ID Number

Contents

1. Introduction…………………………………………………………………………...…4

2. What is an Entrepreneur? .................................................................................................4

3. Characteristics of the Entrepreneur in association to the Business……………………...…5

4. Taking on the Projetc

……………………………………………………………….…...6

4.1 Personnel Refletc

ion…………………………………………………………………6

4.2 Comparison to Other Groups………………………………………………………...6

5. Successful Teams…………………………………………………………………….…6

6. Current Trends……………………………………………………………………….…7

7. Identifying the position in the market…………………………………………………..8

8. Recommendations…………………………………………………………………....…9

9.Conclusion……………………………………………………………………………...10

10. Bibliography……………………………………………………………………….…11

11. Appendices………………………………………………………………………..…12

Appendix 1; Grants………………………………………………………………………12

Appendix 2; Personnel Refletc

ion……………………………………………………….13

Appendix 3; Notes taken from Managing Diretc

ors interview………………………….17

Appendix 4: Land valuation……………………………………………………………..18

Appendix 5 ; Land Rover………………………………………………………………..18

Appendix 6; Printing Services…………………………………………………………...19

Appendix 7; SME Definition………………………………………………………..…...21 Appendix 8; Belbin Report current MD, Jonathan Medley………………………...……22 Appendix 9; Current Wm Sinclair Organisation Structure………………………………24 Appendix 10; Catchments Area………………………………………………………….25 Appendix 11; Authors Belbin Report……………………………………………………26

1.Introduction

This report is based on an SME, William Sinclair and Sons Stationers (Silvine). Silvine operates in the paper and paperboard industry, in the paper stationary setc

or and has done for over 150 years. According to the Companies Act 1985, setc

ion 248 Silvine qualifies as a medium sized entity, as it has a yearly turnover of no more than Ј11.2 million and employs no more than 250 people (appendix 7).

The report will identify the characteristics and attributes of an entrepreneur, how the characteristics of previous Silvine entrepreneurs have become traditional managerial roles for today’s managing diretc

or and so shaped the business, and what entrepreneurship has been shown by current managing diretc

or. The author continues this topic by a basic discussion of personnel refletc

ions of his own characteristics, and what learnt throughout the course. These points covering the topic of: The personnel characteristics, values and qualities of the entrepreneur or leader.

The report shows analysis of the current trends of the industry, within the UK market. Examines other markets available and reviews were Silvine stands in the market segments. To complement this recommendations are given for future growth areas with competitive advantages. These points covering the topic of: Growth setc

ors for small firms.

Other topic available were, Sources of finance and sources for growth this was touched upon but in no real detail in recommendations, Networking within the small business community and exporting issues and opportunities were not assessed due to concentration on other topics and lack of date (appendix 2).

A point touched upon was successful teams, but due to lack of information no critical analysis was taken.

Many sources were used throughout the compilation of the report all of which are present within the appendices and references.

2. What is an Entrepreneur?

To offer a definition for an entrepreneur presents an immediate problem. This is not that a definition is not available, but rather that there a too many.

Casson (1982) states,” The characteristics typical of a successful entrepreneur are the ability to take risks, innovation, knowledge of how the market functions, manufacturing know-how, marketing skills, business management skills, and the ability to co-operate.

To compliment this, Caird (1988) mentions a good nose for business, the desire to take risks, the ability to identify business opportunities, the ability to corretc

errors effetc

ively, and the ability to grasp profitable opportunities as characteristics of an entrepreneur. Bird (1989) divides risks into five types, four of which are clearly relevant to any potential entrepreneur: economic risk, risks in social relations, risks in career development, plus psychological and health risks”. (Littunen, H, 2000).

A social side to entrepreneurs is stated by, Kao (1993) defined entrepreneurship as “the process of adding something new [creativity] and something different [innovation] for the purpose of creating wealth for the individual and adding value to society”. This helps explain why social entrepreneurs can be found in:

• Profit-seeking businesses that have some commitment to doing good and helping society and the environment with their strategies and financial donations;

• Social enterprises which are set up with a largely social purpose, but which are still businesses;

• The voluntary setc

or.

(Thompson, J.L, 2002)

3. Characteristics of the Entrepreneur in association to the Business.

Entrepreneurship is the creation of economic wealth by adding value and involves risking capital, time and energy. Drucker (1985) states when this activity takes place in an organisation it is referred to as intrapreneurship. The intrapreneur often has to succeed in a bureaucratic environment which tends to stifle innovatives and dynamics. Both entrepreneurs and intrapreneurs can be considered in a broad sense, to be leaders. They lead the value-adding capabilities of an organisation, the development of new ideas and ways of solving old problems. They often lead people in accepting novel solutions and new way of operating. (Val Finningan, 2002).

Peter Drucker (1985) dispelled the myth of entrepreneurs are born with exceptional personal qualities. He states many managerial and leadership qualities are something which are to be learnt. Where as success owes more to hard work than a romantic notion of sheer entrepreneurial talent.

Drucker (1977) identified three board managerial tasks:

• Satisfying the goals or missions of the organisation;

• Enabling the workers to achieve focus on productivity;

• Managing social responsibilities

In order to fulfil these fundamental roles, Drucker suggests managers are required to: set objetc

ives; organise; motivate and communicate; measure and develop people. (Finningan, V, 2002).

The three broad tasks mentioned above are those which Silvine’s senior management and board are concentrating. Silvine are a long standing business of there local area and have a mission statement of providing employment for the Otley people since 1854. Focus on productivity of workers has more recently become a priority due technological advancement in the industry has become stagnant. Therefore Silvine employed an engineering team to conduct a “factory floor workshop”, this concentrating on everyday tasks focusing on efficiency for productivity. Also managing social responsibilities, there is an environment response link on the home page promoting “green” activities. Social factors of this relate to employees and trust in the work force, by giving each factory machine its own set of tools it shows trust to the employee’s. The trust brings a better working environment, so greater moral and efficiency in the work place. This was demonstrated in Octicon, with the appointment of Lars Kolind as president in 1988. (Oticon case.doc).

These characteristics show the managing diretc

or is fulfilling a managerial role rather than one of an entrepreneur. By following these traditions of the company he is working on a triple bottom line concept. The triple bottom line captures an expanded spetc

rum of values and criteria for measuring organizational (and societal) success - economic, environmental and social (wikipedia). These values/ guideline continued from his brother who followed on from his father. These have been continued from and throughout the 19th century and are so dated in the present UK economy.

The 19th century went through high economic change, competitive markets, more decerning customers, development of technology and government change. This has led to Silvine concentrating on a scientific management style of Frederik W. Taylor (1856-1915). This technique separates planning from doing, job design with maximum task fragmentation reducing job to simplest constituent elements. (Finningan, V, 2002).This demonstrated above in workshop technique. As Sivine has no longer got its competitive advantage of technology and has a production costs burden of the UK government legislations, an entrepreneurial attitude is needed.

As stated by Casson (1982) entrepreneurs must be able to innovate and take risks, these are the skills needed to gain competitive advantages and determined growth for the survival of the business.

The father of the MD diretc

ed Silvine from after the world war 1948 through till 1989. The brother of the current MD then diretc

ed the business till 2005, when the current MD took charge.

This pattern shows that after Thatcherism had taken place and as it ended in 1990, the father past the business on for new age management for new ideas as the UK economy had major changes. These management changes never happened and with old management styles still in place market consolidation strategies set in. This is showing strategic drift, where strategies have progressively failed to address the strategic position of the organisation and performance is deteriorating in line with competitors. This is now leading Silvine into the flux stage, strategies change but no diretc

ion, only consolidation of market segments. A transformation stage is now needed to address the real issues of the business.( Johnson, G. Scholes, K. and Whittingham, R,2005).

The current MD has the opportunity to take Silvine on with an entrepreneurial attitude innovate and take the risks that are needed. The Belbin analysis of the current MD produced a shaper, giving entrepreneurial qualities of inspiring action, and highly motivated (appendix 8). This wasn’t the impression given when interviewed (appendix 2).But throughout the workshop stage customisation of machines where applied, which is a small sign of an entrepreneurship but not a large enough measure. He has only been in charge since 2005, so time is needed to take diretc

ion. Time is a fundamental dimension, when studying the lives of individuals and newly established firms states Bird, (1992); Butler (1995),( Littunen,H,2000 ).

4. Taking on the Projetc

.

4.1 Personnel Refletc

ion

The author’s course has widened his view on entrepreneurs and helped him under stand how SME’s relate to society. With a combination of his degree it has helped him apply the skills he has learnt in terms of finance support, links with the community, stages of development and the strategies to apply all these qualities. Some of the things learnt were;

• The fact that SME’s are an important part of our economy, and the difficulties of sustaining one in the strong UK economy with high foreign competition.

• The factors of knowing the market, short-term goal orientation to react to new market condition, and networking in the local community and economy to achieve growth advantages is vital.

• Implementing various strategies and models into a business and its policies.

This has made the author excited to get into the real world to test this knowledge. This will allow him to experience how effetc

ive academic experience is and how easy it is to apply.

The author has supplied an Belbin report taken before studying the course.(appendix 11).

Throughout the course, refletc

ive notes were kept describing the authors feeling, attitude and reactions of events as they were happening (appendix 2).

4.2 Comparison to Other Groups.

When compare to other groups the author compare the businesses studied. The first being the age of the business, non of the other businesses studied were the age category as Silvine, the majority seemed to be no older than 5 years.

Secondly was the setc

ors, the majority in this case was the food industry. The three exceptions to this were a photo copier shop, mountain bike specialist and a kitchen appliances store.

The third comparison was the fact of location, all groups were based in the Leeds catchments area apart from two, this gives groups with a Leeds based business an advantage of communication with the entrepreneur. The two based outside Leeds were Birmingham and further a field China. As the business is based in China a hands on visit to get a feel of the business wouldn’t of been available and so an disadvantage when evaluating.

The common characteristic between the set of businesses studied were that each entrepreneur had previous business experience excluding one, Enjays Creperie.

5. Successful Teams.

In this setc

ion the author had planned to express which model our group identified in relation to group stages. Tuckman (1965) a popular modal, relates four stages of Forming, Storming, Norming, and Performing. Adding a fifth stage with Jensen (1977) as Ajouring. Other model consist of Belbin (1982, 1993), Bass and Ryterband (1979), Benne and Sheats (1948), Glass (1996), Obeng (1994), and Woodcock (1979). Handy (1993) also identifies a number of major organisational purposes for groups and teams (Finnigan, V, 2002).

The author had also planned and asked the group to take a Belbin questionnaire, but he had no success. He then planned to compare this with his previous Belbin results and discussed how the course had influenced his entrepreneurial attitude as life experiences or learning curves change ones attitude.

Personality characteristics are formed by the interplay between the individual and the environment. In this interplay life situation, experiences, and changes in the individual’s life play a central role as stated by Rotter (1975, 1990) (Littunen, H , 2000 ).

The author decided to leave the analysis of this as he never had sufficient information on the team to produce a critical analysis.

6. Current Trends.

UK

The paper and paperboard industry is one of the UK's key manufacturing setc

ors. In 2001, the UK consumed 12.6 million tonnes of paper and paperboard products, while its papermaking industry produced a total of 6.2 million tonnes of paper and board. These consumption and production figures signal the first decline in UK papermaking output and consumption in over 10 years. Between 2000 and 2001, the volume of paper consumed fell by 2.3% and the amount manufactured in the UK fell by 6.1%. In value terms, the apparent UK market was worth an estimated Ј5.38bn in 2001, following several years of decline.

Since the late 1990s, the paper industry has had to endure extremely difficult trading conditions. A combination of factors has combined to create less than favourable market conditions, including rising production costs — many of which have resulted from EU legislation, which the UK has tended to implement more strictly and sooner than its EU counterparts — and the strength of sterling against the euro and other foreign currencies.

As a result of the difficult trading conditions and in order to achieve greater economies of scale, many companies have been involved in mergers or acquisitions and a number have been forced out of the industry altogether. Consequently, the market for paper and board manufacturing is becoming increasingly concentrated, dominated by fewer, but larger players (Keynote).

With this in mind one would of thought a government support system would be in place to aid the UK companies and jobs, Prime Minister Tony Blair and Chancellor Gordon Brown have drawn attention to the invaluable role of social entrepreneurs in society.

“The mark of the Millenniums explosion in “acts of community” that touch people’s lives”

We query whether Prime Minister Blair’s “explosive act” can happen without more substantial support (Thompson, J.L, 2002).

There are no structural fund EU grants available in this area for Silvine as it does not fall into one of the three categories of the EU support system (appendix 1).

Silvine are not eligible for point 5 of the further grants in the area (appendix 1), but could be if they changed there strategy. At the moment Silvine are in a market consolidation strategy, namely reducing the number of segments. This reducing the targeted market size and so effetc

ively reducing there work load. Unless they were to take the majority of this segment which would be difficult in the present condition of high competition from large multi-nationals. This will be discussed in a later part of the report (Mintzberg, H et al, 2003).

Eastern European.

The paper and paper board industry, in the eastern European community is not a distinct manufacturing setc

or. The main advantages of such markets:

• Is that they fall in to the EU’s objetc

ive 1 category for grant support.

• The labour rates are much lower than the UK

• Health and safety legislations are less stern, along with waste disposal. These two factors being a high production cost within the UK.

Silvine would be able to take advantage of the difference in the markets, as did one of there major UK competitors moved there source to Estonia. This is a similar strategic move as the large corporation of IKEA, based in Scandinavia, Sources in eastern European, and the markets of W European and N America.

This is a form of geographic expansion strategy, carrying the existing product offering new geographical advantage. Geographical rationalization to locate different business functions in different places, sometimes known as a global strategy. (Mintzberg, H et al , 2003)

This would then take away there competitors competitive advantage, of price differentiation strategy. This is discussed later in report.

Most Western companies planning investment in Eastern bloc countries will do so along established industry lines to take advantage of in-place transportation, labour, raw materials, and energy resources. A concern should be the lack of a labour force skilled in standard Western business practices, valuation of state-owned assets, opposition from anti-reformist officials, and the vagaries of operating in an environment rife with corruption. Though improving quickly, telecommunications are still far below Western norms.( Farhad M.E. Raiszadeh, Marilyn M. Helm, Michael C. Varner, 1995) These could all produce hidden costs for Silvine and so needs to be carefully evaluated if investment is to be considered.

7. Identifying the position in the market.

According to the life-cycle model (Johnson, G. Scholes, K. and Whittingham, R., 2005) Silvine has reached maturity. This is shown through saturation of users, by having a long standing position in the small scale high quality paper segment. This was once the core competence of the business with leather back bound hand crafted books. A company's core competency is the one thing that it can do better than its competitors. If a core competency yields a long term advantage to the company, it is said to be a sustainable competitive advantage (wikipedia). A second sign of market maturity is repeat purchase reliance; Silvine shows this from one of our high street supermarkets and an education setc

or.

The market competitive conditions are high with a difficulty to gain/take more market share, a fight to maintain the current share and an emphasis on efficiency and low costs (appendix 3, Johnson, G. Scholes, K. and Whittingham, R, 2005 ). These are all traits of Silvines market, many competitors have been bought out by large multinationals from main land Europe and US. They are using market penetration strategies of “take over” technique to penetrate the market, this makes it easier, but more expensive to penetrate a mature market. Once into the market the large multi nationals are able to use economies of scale for price differentiation strategy. This is the most basic and cheapest way to gain a competitive advantage.

As Silvine is unable to compete in price differentiation, they adopted a market development strategy (Mintzberg, H et al, 2003). There are two types of this strategy elaboration and consolidation, opposites. Silvine is currently consolidating as they have been pushed out of all other setc

ors through price differentiation combined with economies of scale (appendix 3).

The market in which Silvine operates is segmented into a large scale and small scale, combined with high quality and low quality. Silvines niche is the low scale high quality. These contracts are acquired through few long term contracts and an auction system making the competition even higher. The other setc

ors are taken by foreign competitors in less developed economies and the large multinationals (appendix 3).

Silvines situation is Porters framework of ‘generic strategies’ this has become quite widely used, these constitute strategies to distinguish the core business. Porter believes there are but two “basic types of competitive advantage a firm can posses: low costs or differentiation”(1985:11). The combine with the “scope” of a firms operations (the range of market segments targeted) to produce “three generic strategies for achieving above average performance in an industry: cost leadership, differentiation, and focus”. (Mintzberg, H et al, 2003)

Silvine has been pushed out of the cost leadership so differentiation and focus is needed.

8.Recommendations

Silvine must implement differentiation and focus, Sykes (1999) identified a three-stage entrepreneur process. Thompson (2002,) amended and extended this to four key contributions:

(1) Envisioning – clarifying a need, gap and opportunity.

(2) Engaging – engaging the opportunity with a mind to doing something about it.

(3) Enabling – ensuring something happens by acquiring the necessary resources, such as people and money and, if necessary, premises.

(4) Enacting – championing and leading the projetc

to a satisfactory conclusion.

(Thompson, J.L,2002)

For Silvine to capture new market segment and growth, the three stage process should be applied.

To sustain this, Catlin and Mattews (2001) suggest that if the entrepreneur is to remain in charge of the expanding business they have to:

• Develop strategies, products/services, customers and markets

• Develop organisational processes for planning and also the infrastructure to accommodate growth and expansion.

• Recruit new people and develop teams

• Create a business culture to align people and teams to have an effetc

ive team.

Adapt their leadership styles.

With these in mind Silvine has begun to differentiate and focus. Concentrating on quality making it not fundamentally different, just better. In this industry making the paper a weight of 90-100 grams, any heavier gives good drawing paper (appendix 3). A second is design differentiation, Silvine are the first and only company in this industry to make bound pads of water proof paper. This very unique feature and may progress into a core competency.

A recommendation would be to continue with quality differentiation, and the waterproof giving it time to test the market. Silvine could sub-contract out the waterproof paper to maybe American firms as this is a large market and more advanced economy, as through discussion there is not massive demand for the product in the UK. Silvine are able to implement this by using innovation in marketing technology and methods (Obasi A, Richard S. Allen, Marilyn M. Helms, Samuel A, Spralls III 2006), researching potential companies, organisations, and governments for new contracts as did Land Rover Ltd (appendix 5). To restrict costs to Silvine, a market research company could be used.

A second recommendation is further advancements in product development strategies (Mintzberg, H et al, 2003) could be concentrating on the historical core competence of hand crafted leather bound personalised books. Targeting the high class hotel of Europe in place such as Venice, Paris, Milan, and London. Take the approach of being in business since 1837, hand crafted over 150 years experience, could give a sustainable competitive advantage. This would be a combination of quality/design differentiation strategy (Mintzberg, H et al, 2003).

A third recommendation would be to buy-in or merge,( Pike, R. and Neale, B, 2003) foreign competition of less developed countries such as India. This would enable greater competition against large multinationals, improve price differentiation, and so giving greater market share and turnover. Funding is later mentioned. A less aggressive move would be to agree on sub-contracts to the Indian company, therefore using Silvines prestigious name.

A fourth recommendation would be to venture into a new market, this is an innovative and risky attempt to give an sustainable competitive advantage. New digital technology enables pens to store letters and numbers in a memory within the pen. These pens need digital paper to function, the paper has a digital matrix embedded into it which the pen recognises. This maybe an area Silvine could venture towards if introduced to the British market. An intensive investment appraisal and risk analysis should be taken on board. Finance support could come from company producing pens, or re-mortgage the property owned mention later.

A fifth recommendation is geographical expansion strategy (Mintzberg, H et al, 2003) used to set up different business functions throughout the world. This basing the head office, Sales department and Accounts and company name in the UK, therefore keeping some employment in Otley. Taking the source, being the works and production departments into eastern European market (appendix 9). To take advantage of the cheaper labour, grants and less stern legislations cutting production costs. This brings the business back into competition in price differentiation and greater market share, thus maybe enabling further support in the UK for growth strategies of the business and further Otley employment. Financing the projetc

shouldn’t be a significant problem as all the business in owned, non of factories or head office is leased. Silvine sits on 250,000 sq/ft of land (appendix 3).This was given an estimate value of Ј1.25 million for “bricks and mortar (appendix 4).This is all based in Otley (appendix 3).

A final smaller scale recommendation is a diversification strategy (Mintzberg, H et al, 2003) taking advantage of the very large factory warehouse available (exact figure weren’t supplied, were requested), able to rent an amount of floor space to another entity. A further measurement would be to take advantage of the delivery vehicle so enabling a 168 hour week, this could be achieved by renting to another business.

9. Conclusion

SME’s have the ability to innovate, diversify and create new jobs (Garavan and O’Cinneide, 1994). If this attitude is taken by the current managing diretc

or combined with Cassons (1982) typical characteristics of an entrepreneuer. It is a recipe of success for Silvine when implemented with the corretc

strategy, not following dated traditions.

Knowing the current market trends, markets available, where positioned in the segments of the market will take Silvines growth forward to more market share if implementing the recommendation most suited to give a sustainable competitive advantage. These decisions can only be made by Silvines senior management and board as they have the insider knowledge of financing such projetc

s.

10.Bibliography

Catlin, K and Mattews, J. (2001) Leading at the Speed of Growth: Journey from Entrepreneur to CEO, John Wiley & Sons.

Finningan, V.(2002) Organisational Dynamics: Level 2.Pearson.

Garavan, T.N. and O’Cinneide,B.(1994) Entrepreneurship Education and Training Programmes: A Review and Evaluate- Part 1, Journal of European Industrial Training, Vol.18,No8,pp.3-12

Johnson, G. Scholes, K. and Whittingham, R.(2005) Exploring Corporate Strategy; Text and Case 7th Ed. Prentice Hall.

Mintzberg, H et al (2003) The Strategy Process; Concepts, Context and Cases 4th Ed(Global).Pearson.

Pike, R. and Neale, B.(2003) Corporate Finance and Investment; decisions and strategies.4th Ed. Prentice Hall.

Wickham, P.A (1998) Strategic Entrepreneurship: A Decision-Making Approach to New Venture Creation and Management. Pitman.

Obasi A, Richard S. Allen, Marilyn M. Helms, Samuel A, Spralls III (2006) Critical tactics for implementing Porter's generic strategies. Journal of Business Strategy.[Internet],N/A, Volume 27 (Number 1) 2006, pp. 43-53. Emerald Group Publishing Limited. Available from:< www.emerald-library.com>Accessed[01/01/06].

Thompson, J.L (2002) The world of the social entrepreneur. International Journal of Public Setc

or Management.[Internet],N/A, Volume 15 (Number 5) 2002, pp. 412-431. MCB UP Ltd. Available from:< www.emerald-library.com>Accessed[20/12/05].

Farhad M.E. Raiszadeh, Marilyn M. Helm, Michael C. Varner.(1995) Critical issues to consider when developing business operations in Eastern bloc countries. European Business Review.[Internet],N/A, Volume 95 (Number 6) 1995, pp. 12-20. MCB UP Ltd. Available from:< www.emerald-library.com>Accessed[01/01/06].

Littunen, H (2000) Entrepreneurship and the characteristics of the entrepreneurial personality. International Journal of Entrepreneurial Behaviour & Research. [Internet], N/A ,Volume 6 (Number 6), 2000, pp. 295-310 MCB UP Ltd. Available from:< www.emerald-library.com>Accessed[20/12/05].

Oticon case.doc.(1988). Sourced on a Managing Change module handout.

N/A, Keynote[Internet],N/A, Available from:< www.keynote.co.uk>[accessed].[24/12/05]

N/A, Wikipedia (2006) [Internet], Available from:< en.wikipedia.org>[accessed].[24/12/05]

11. Appendices

.

Appendix 1; Grants

The categories are categorised into three objetc

ives:

• Objetc

ive 1 Poorest Regions (those regions with a GDP per capital of less then 75% of the European Union average);

• Objetc

ive 2 Large job losses (where traditional industries have been lost);

• Objetc

ive 3 Social factors (disadvantaged individuals anywhere in the UK).

Yorkshire has fallen into these categories in the past, South Yorkshire being part of the Objetc

ive 1 programme from 2000-2007. But due to a high increase in the Gross Domestic Product it fell out of this category last year.

The only other way grants are available for this area are if the business:

1. Is part of the advanced manufacturing setc

or, which relates to Sheffield’s steel industry. Or;

2. If the business is involved with Bio-Science, this also due to Sheffield as one of its universities has a large bio-science department. Or;

3. Creative and digital content development. Or;

4. Environmental Setc

or. This is a Corporate Social Responsibility index Or;

5. A high growth strategy is implemented, with high volumes of jobs.

(source Government Office for Yorkshire and the Humber Social Inclusion Coordinator).

Your industry Setc

or (UK)

Funding is limited and subjetc

to restrictions in certain setc

ors defined by European Commission. Any applications that are made for grants will be closely inspetc

ed by the commission. These setc

ors include:

• Retail

• Motor vehicles

• Synthetic fibre

• Ship building

• Coal and Steal

• Agricultural and Food processing

• Transport-Air, Maritime, Rail and Inland waterway

Print industry not included

www.businesslink.gov.uk/bdotg/action/detail?r.s=sl&type=RESOURSES&itemId=1072791555

Appendix 2; Personnel Refletc

ion

First Seminar: We were asked to group together into groups of fours. We then went on into more detail about what the group would be doing. And what was expetc

ed from the individual report.

The group report was what I expetc

ed, general business report of an entity from an entrepreneurial view. The individual report wasn’t expetc

ed at all, first thought was believed there would be examinations. Instead I was asked to refletc

? First reaction was general confusion but once thought about believed to be a good method of assessment.

I believe the general idea to be good, although this will be a challenge to apply myself too as never really approached anything in such away.

My reason behind this to being an excellent idea as refletc

ion is a large part of entrepreneurial ship. I think this as once into a business the environment is ever changing, as far as legislations and Porters five forces etc

. Therefore you will need to refletc

on your entity to keep it a going concern.

Second Seminar: We were asked to form groups for the assignment. As our group was formed we decided to take the opportunity to get a head start and take a closer look into our chosen business.

Doing this we brainstormed some relevant topics which are suggested

-Sources of finance and assistance for growth

-Exporting issues or Opportunities

This opened a wide range of ideas and questions involving the entity. Questions, we can put forward to senior management.

This proved to be a good use of time as many ideas/ questions were created, which should take us a step closer to knowing the in’s /outs of the entity.

As a group we decided to not review Networking within the small business community because of lack of data from Silvive, due to no real business relations are made locally.

The experience was productive and positive as we did what we set out to do. These questions should open ‘new doors’ which we can take advantage of later.

Factory visit 3rd week: First impressions didn’t seem positive. The question we put forward seemed to give a negative response. This wasn’t expetc

ed. The main view I received was manufacturing was a dieing trade in the UK as opportunities were taken by foreign competition. Unable to compete with places such as India due to less legislation to follow and a lot more loop holes making business with fewer overheads. The foreign companies are now able to compete with the UK firms on the lower quality work of large mass, including the less developed countries.

There were three major competitors in the UK market until recent due to a take over from a large French trader, so now able to enter market. There isn’t a sufficient amount of trade over the channel making it a very expensive overhead and channel to cross.

General persona seemed to be moral was down, and the government had ‘pushed’ manufacturing out of the UK giving no real support or grants. Leaving Silvine in the position of no longer chasing business but allowing it to come to them, concentrating on good quality service and on time.

The feedback I received was they gave up on exports and have concentrated on the UK market as one of our questions showed that exports were less than one percent, with 99 % of there trade going to large UK supermarkets or retailers. There is almost no foreign opportunity as the need to make a 40% knock down from UK prices with additional overheads.

As a result the entity is in reverse down sizing were possible, with more smaller batch work of higher quality rather than the large batch with less quality.

General thoughts after visit was seemed to be a dieing trade, and almost impossible to compete in export market and as UK markets now become more competitive leaves concerns of whats the next step. This is a difficult business to expand on and as it is over 130yrs old entrepreneurial skills were in affetc

many years ago. First ideas are an organisation restructuring of a long standing family owned and run business would be difficult.

This has shown me that the world is changing and making manufacturing of such product to be at a challenging stage. Due to new legislation and cheaper economies, with the factor of family base.

Third Seminar

In this weeks session some are still concentrating on group development. Therefore our group moved out of the class into the library.

In this session are discussed the factory visit and had a re-think about the projetc

and what our aims of achievement should entail.

We have decided to change our topics from the original two which were:

-Exporting issues and opportunities

-Sources of finance and assistance for growth

To:

-The personal characteristics, values and qualities of the entrepreneur or leader.

-Exporting issues and opportunities.

We decided for this change because of how old the business is and the business is, ans the issue of that less than 1% of trade is exporting.

This will allow us to examine how the attitude of the leader(s) may have changed, and how the profits are being used to date

It will also allow us to look into the issue of exporting, what if any support is available, and if any ideas can break some of the barriers which seem to be set on this dieing UK trade.

We then brainstormed these subjetc

s, using the notes and quotes from the factory visit (10th Oct 2005). Setting out a plan of action and general layout of the report. We know move onto research.

I believe both the seminar work and the factory visit especially, gave us a much better understanding of the business as a whole and what kind of predicament it is in.

“down sizing with surplus of supplies”(machinery).

Main reasoning loss of large bulk trade, to lower quality. To smaller size of higher quality. But supplying on time.

The situation in my view is that in order to keep competitive in all areas would to be to expand to Europe of further a field, for the cheaper tax and labour.( but as a long-standing family business in UK, determined to stand ground).

The general POA, for the group seems a good route to be on and should under cover more problems out maybe some solutions to Silvine.

Some ideas available are maybe retail market diretc

ly, prestigious hotels, large corporations, private schools, further government contracts.

Week 4

This week internal factors where discussed which the group, and myself, have brainstormed. This gave us diversifications and the boundaries for this.

-what is Silvines strength within the market as the entity is over 150yrs old.

-strengths/weaknesses

-keeping on top of modernisation and efficiency. Has it been effetc

ive? ( gave market edge, private engineer’s, self modernisation).

-Also the deliver vehicle does operate, but not sure if efficient as suppose to be 168 hrs/week)

This week a positive sessions as it has been effetc

ive and producing, bringing new ideas to the projetc

.

Week 5

This week we continued with the presentation, and research some text on entrepreneurial concepts. The letc

ure was based on external factors such as locations, and skills available. I believe this doesn’t have a major effetc

on our chosen business, as the majority of the employment/sales skills. The specific trade in the entity which is small scale is the engineers which work on the machinery who are a group of operators.

It is sometimes to take into considerations, but I believe it won’t be a major contributing factor.

Managing change was the second factor of the letc

ure, which may be more influential factor, as the may have to be some management or other change implemented to become part of the competitive market once again.

Week 6

We are on the stage of gathering our research and continuing it, to make sure everything is covered.

These past weeks I have been researching mostly the internet looking for government support which seems none existent, which would explain the lack of this trade in the country.

Although whilst researching I went on the trade and investment web page recommended in the handout and found that Print, paper industry accounts for 1.4% of the GDP. This not a majority from our setc

ion of paper stationary.

Week 7

After further research and have a think about refletc

ion on the entrepreneurial process, it has downed on me that the printing industry seems to have stopped in its foot steps in the technology front no more major steps being made anymore in the automated machinery department. There is only so much an machine can do as far as cutting and binding paper. They have become efficient, as the raw material stands at only recycling 13%, this figure is reasonable considering the machines will be universal and are set for various amounts of jobs, with human surveillance. The figure is set to drop to 10 % in the future through “workshop”.

This entailed a group of engineers, working with the factory floor staff on a Q n A week, of why, when, and how the staff go through there day. This giving maximum efficiency, with time to tell if effetc

ive.

This process entailed modifying the machinery for Silvines processes, which involved cutting away pieces from machine to move more freely, placing tools in practical places, and having enough to go around. This was solved by leaving a full set of tools within arms length of the machinery. Which saves only minutes in a day, but a production line over years.

A second incentive to leaving the tools on factory floor was a trust benefit. The idea if followed on from major corporations such as Octicon, with trust in a relationship brings better moral and a better workforce.

Silvine does have a USP, but only lie’s within the UK, this is one of the machines is unique to the UK, so urgent jobs must come through Silvine.

Early in the projetc

we brainstormed ideas, one of which I though was a digital pen. A pen which when written with doesn’t mark paper with ink, but imprints the letters, numbers etc

in the pen, ready for computer download. With research we’ve found Nokia have expanded on this.

Week 8

This week was the date in which the presentation was to be handed in. The group decided that we would present our as soon as possible which placed us second in line. I disagreed with this as I didn’t believe that we hadn’t had sufficient time to present it confidently, we put it to a vote.

After presenting we had some personnel feedback from Paul once other groups had left, generally I felt confident of a good mark as only one or two points were negative. But on the whole was told a good report. The “negative” feedback;

1. Poor referencing, this was I lesion learnt for myself as due to I and one other member spent time structuring, other members finalised the last couple of slides and was meant to reference both the report and presentation. The report referencing was concentrated on whilst presentation “missed” out. The second point on referencing was to reference to the whole room not just the assessor. This is something I hadn’t experienced before, and well noted for future as in a work placement would be relevant.

2. Exporting, “went off a bit”. This is something I didn’t particularly agree with. The reason being was that whilst interviewing the Managing diretc

or of Silvine he highlighted the issues, and opportunities they had taken, which we presented. We also researched these issues from the 10th October, which was the date of the interview. Secondly the further opportunities to be taken were highlighted in the future growth areas. A lesion to be learnt from this would be to discuss more about the issues/ opportunities with the tutor to see what they related to the subjetc

, to give a wider view of the situation.

My general feelings taken away from this was a little disappointment, but as highlighted to be a “good presentation” a good mark expetc

ed.

Week 9-10

These week were spent doing intensive research on a wider view of the entrepreneur and characteristics. Whilst researching I examined Journals, Text books, and the world wide web. This brought through a wide range of views of entrepreneurs, how the attitudes “rub off” on the business. Before doing so I was planning to research moral shown in Silvine, but now it has brought about the Social side of entrepreneurship which link to Silvine keeping to traditions of Otley employment. Also brought to mind how these traditions are set in it restricts Silvines innovation to take risks and diversify.

The further context of the report seems to be in good measure following discussion with Chris after letc

ures, as there is limited time in seminars to discuss with Paul do to continuous presentations. Following the discussion with Chris I have arranged to discuss further with his self in a meeting with him in his room on 9th December.

Week 11

Following further research I had a wide range of topics in varied details to discuss with Chris about my individual report. I also wanted to discuss the group presentation mark with him as we received a mark of 50% on the 8th December, which I didn’t expetc

from the feedback given from Paul on the day of the presentation and the pure amount of research applied to the projetc

.

With respetc

to the presentation mark Chris acted professionally and stated that he never witnessed the projetc

and so therefore could not discuss any marking as he did not mark it, any discussion should be through Paul. With this in mind I tried to arrange a meeting with Paul that week with no success.

In discussion of the individual work, general feedback was good. A comment of good research applied, appropriate model ideas but emphasis to concentrate on specific topics not to varied. With this in mind I went away confident and ready for the challenge.

Week 12

This is the final week in term and I am currently applying models, research and views to Silvines format. This is a time consuming process, I have almost gathered all information needed except for group information. I put forward to the group to take part in a Belbin analysis therefore roles in the group could be identified, this wasn’t successful.

I am also having difficulty contacting Paul this is a little frustrating as I would like to learn from my mistakes and so apply this to my individual report in terms of exporting. This way I can see what I have done wrong and so take on the exporting issues and opportunities corretc

ly enabling me to critically analysis, evaluate effetc

ively. Without this feedback I don’t feel confident enough to take on that setc

ion of the individual report, as this report is the majority of my final mark.

Christmas Holidays

Over this period I have made good progress, I have decided to leave out the team analysis and exporting. This is due to lack of feedback from the group and tutor. Time has taken its toll and ran out.

Chris kindly took time out of his holiday to review my reports context to give feedback, this was very helpful gave good ideas on structure. Limited feedback was given, this understandable due to cannot tell me whats wright and wrong as this would be unfair.

Final Thought

This course had widened my view on entrepreneurs and helped me under stand how SME’s relate to society. With a combination of my degree it has helped me apply the skills I have learnt in terms of finance support, links with the community, stages of development and the strategies to apply all these qualities. This has made me excited to get into the real world to test this knowledge. This will allow me to experience how effetc

ive academic experience is and how easy it is to apply.

Appendix 3; Notes taken from Managing Diretc

ors interview

Exporting is difficult because it is expensive

1% of sale is export

A lot of export to the middle east but now the middle east import from India

Export to Cyprus, although have put a discount of 40%

More tough to get money from other countries

No business in EU – product are not unique enough

Doesn’t actively seek new business now

Packaging costs etc, costs more work and paperwork for less money!

If a co from another country enquire then will bid for it

Comparison between paper from here and abroad, less quality from abroad

The machines are more automated

Don’t bother any 2 days work just for a quote sierra leone

More exports are exercise books

Charity want it cheap – books warning of land mines

Recently lost big contact because a customers business was taken over by foreign company, already have supplier base

Used to get grant in Ireland, but not now – moving to Estonia

In Germany can have cheaper rent grants

Received grants when in deprived

Employees – 160 at the mo peak 220 in summer for school books and main workers are on hols

Machinery – last 5 years looking after machinery better than ever, used to last 10-12 years. Policy is to smash them up so they can’t be used again by a competitor. May have to the machines for 20 years now. Machinery not moved on. Only change is in health and safety eg guards. Have plan end month of how to maintain machinery

Workshop – to clean, then run machine and watch normal procedure, then have q + a to try to see why they did what they did and where could save time e.g quick release mechanism – must prove cost effetc

ive. Now have goals and targets for machinery. 4 or 5 engineers have to update and make more efficient. Don’t like many activities engineers seeing this as they could implement it into their new products, therefore increase efficiency for any competitors who buy it.

Normal lines – should be in stock available one week.

3rd party lines – for high street, also in stock. Try to keep 1 months stock on the floor but if too much then no good. Some jobs may make a years worth as not worth as not worth changing machine. Special work takes up to 6 weeks. Do you want your machine tied up for that long?

Competitors

2 main in this country but 1 taken over by Hamelin – by French co but losing

money so tried to buy market share.

Downsizing to make money rather than lots of work – busy fools.

High volume – low profit

Cost of time

Pro’s and con’s from abroad e.g no delivery quality + service + consistency, they don’t have to order massive amounts but warns that abroad will get better.

Some manufactures trial new machines abroad. Have birthday for massive because so important. Abroad do not buy from sustainable forest. Must adhere to lots of legislation.

Re-cycling

13% of raw material sent for re-cycling. Aim to get down to 11/10% but they do get paid for waste eg paper, plastic sorted, wooden pallets. -Ј100,000 per year.

Ave cost of paper Ј490 per tonne

Ave cost of plastic paper Ј4000 per tonne.

Further information was acquired personally through the phone,

• such as the square footage of land.250,000 sq/ft,

• good quality paper with a weight 90-100 grams,

• Father of MD finished 1989, brother finished 2005, when current MD took charge.

Appendix 4: Land valuation

Silvine sits on 250,000 sq/ft of land (interview)

Dacre,Son & Harley. The Estate Office, Station Rd, Otley.Leeds LS21 3DR

Tel: 01943 463321 Priced land in Otley Ј3-Ј15 / sq feet

The price range is on conditions of “brick and mortar”

Defined land worth from Ј750,000- Ј3,750,000

Eddisons. Pennine House, Russel St. Leeds LS1 5RN

Tel: 0113 243 0101 Priced land in Otley Ј3-Ј5 / sq feet

Defined land worth from Ј750,000-Ј1,250,000.

Advised wont be price range of Ј15 due to scale and would have to be Brand new.

Try other agencies, but wouldn’t value.

Appendix 5 ;Land Rover.

Innovation in marketing technology and methods

Land Rover, Ltd., a differentiated, upscale SUV manufacturer, used its database marketing system to identify 4,000 Range Rover owners meeting a particular profile. Rover invited the seletc

ed owners to a special marketing event and sold 1,000 new Land Rovers priced on average, at $52,000 each. Rover's $150,000 investment in its database and mailing systems returned $52 million in sales (Knilans, 1997). Thus the innovation in marketing methods further supported and enhanced their differentiation strategy.

(Obasi A, Richard S. Allen, Marilyn M. Helms, Samuel A, Spralls III ;2006)

Appendix 6; Printing Services

THE UK PRINTING INDUSTRY

The products of printing are everywhere, from the magazines, newspapers and books that we read to the packaging that seems to cover everything we purchase, and print is an important medium for education, entertainment and information. Some of the main areas of print in the UK include:

• advertising literature

• binders, folders, file covers

• books, brochures, leaflets

• bookbinding and finishing

• business forms

• calendars

• composition and platemaking

• giftware

• graphic services

• greeting cards, postcards

• maps, charts and globes

• newspaper

• packaging (food, consumer goods, pharmaceuticals etc.)

• paper stationary (exercise books, diaries etc.)

• periodicals

• printed labels

• programmes and tickets

• pictures, designs and photographs

• security printing

• transfers

CONTACTS:

Department of Trade & Industry (DTI)

The DTI's printing, paper and paper board industries unit is located in the Business Relations Group of DTI. The overall aim of the unit is to work in partnership with the UK printing, paper and paper board industries, in order to encourage their sustainable growth, their competitiveness and the exploitation of market opportunities.

Ivan Lima

Department of Trade & Industry (DTI)

tel: 020 7215 1371

email: ivan.lima@dti.gsi.gov.uk

UK Trade & Investment

UK Trade & Investment is working with print industry representatives and trade associations to explore how its global network may be able to make a valuable contribution to the UK print industry's international agenda. Tell us how we can help. If you have any queries or suggestions regarding this process please contact:

Jamie Cribb

Setc

or Manager, Business & Consumer Services

UK Trade & Investment

tel. 020 7215 4595

email. jamie.cribb@uktradeinvest.gov.uk

Trade Associations

Graphical Paper & Media Union (GPMU)

tel: 01234 351522

www.gpmu.org.uk

British Printing Industries Federation (BPIF)

tel: 020 7915 8319

email: lizzy.hawkins@bpif.org.uk

Packaging & Processing Machinery Association (PPMA)

tel: 020 8773 8111

email: import&export@ppma.co.uk

PICON

tel: 01483 412 000

email: info@picon.co.uk

Screen Printing Association (UK) Ltd

tel: 01737 240 792

email: spa-uk@msn.com

UK Trade & Investment Contact: jamie.cribb@uktradeinvest.gov.uk

Publication date: 22/12/2004

Alastair,

Your best bet would be to contact Graphical, Paper & Media Union GPMU or British Printing Industries Federation BPIF or check their websites:

www.gpmu.org.uk

www.britishprint.com

Regards,

Jamie

Jamie Cribb

Setc

or Manager, PPP Promotions & Business Services

Service Industries Diretc

orate

UK Trade & Investment

Tel: 020 7215 4595

Fax: 020 7215 8447

jamie.cribb@uktradeinvest.gov.uk

UK Trade & Investment is the Government organisation that supports both companies in the UK trading internationally and overseas enterprises seeking to locate in the UK

Whereas every effort has been made to ensure that the information given herein is accurate, UK Trade & Investment or its sponsoring Departments, the Department of Trade and Industry and Foreign and Commonwealth Office, accept no responsibility for any errors, omissions or misleading statements in that information and no warranty is given or responsibility is accepted as to the standing of any firm, company or individual mentioned.

Appendix 7;SME Definition

Setc

ion 248 of the Companies Act of 1985 states that a company is "small" if it satisfies at least two of the following criteria:

• a turnover of not more than Ј2.8 million;

• a balance sheet total of not more than Ј1.4 million;

• not more than 50 employees

A medium sized company must satisfy at least two of the following criteria:

• a turnover of not more than Ј11.2 million;

• a balance sheet total of not more than Ј5.6 million;

• not more than 250 employees

For statistical purposes, the Department of Trade and Industry usually uses the following definitions:

• micro firm: 0 - 9 employees

• small firm: 0 - 49 employees (includes micro)

• medium firm: 50 - 249 employees

• large firm: over 250 employees

(http://www.grb.uk.com/sme_job_market.0.html)

Appendix 8; Belbin Report current MD, Jonathan Medley.

Screenshots of the Beblin Roles System that the Managing Diretc

or completed.

Appendix 9;Current Wm Sinclair Organisation Structure

Appendix 10; Catchments Area

Wm Sinclair & Sons (Stationers) Ltd

Address Details & Location

Wm Sinclair & Sons (Stationers) Ltd

Silvine Works, PO Box 1,

Otley, West Yorkshire,

LS21 1QF

Telephone: +44 (0)1943 461144

Fax: +44 (0)1943 850017

(http://silvine.co.uk/location.php)

Summary information for LSOA Leeds 004A: Area code search on web page below.

As at the 2001 Census, Leeds 004A had:

• 1,663 residents;

• 745 households;

• 72 per cent of residents describing their health as 'good';

• 17 per cent of 16-74 year olds having no qualifications; and

• an unemployment rate of 1.7 per cent of all economically active people aged 16-74

• In the Index of Multiple Deprivation 2004, it was ranked at 19,007 out of 32,482 LSOAs in England, where 1 was the most deprived LSOA and 32,482 the least deprived.

(

http://neighbourhood.statistics.gov.uk/dissemination/AreaProfile1.do?tab=1)

Appendix 11; Authors Belbin Report

This report was taken 17th Feb 2005.



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