This research paper acknowledges Small and Medium Sized Enterprise (SME) of Yorkshire and Humberside.

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ACKNOWLEDGEMENT.

I take this profound pleasure and opportunity to thank one and everybody who help me for their guidance and contribution to successfully complete my dissertation in time.

First, I would like to express my gratitude to my professor and supervisor Mr. Lawrence Bellamy who showed great interest in me to take me up in his project. I was introduced to be part of a team to work together and individually. The topic was very challenging and of research worthiness. I was very excited to discover myself working in a research group along with 2 of my colleagues Shaleen Chugh and Darshan Panchole, under the watchful guidance and co-ordination of our professor. Without his dedication and countless hours of hard work reading through all my drafts, and making critical comments, insights and encouragement, I could not have developed this thesis successful.

I will also thanks Dr. Akamavi for his precious time and resource in educating me in a special software called SPSS, without which my dissertation would have been in complete.

I also want to thank those who contributed their time to answer my questionnaire, which help me to access my dissertation on time.

Last, but not the least, my heartiest thanks to my colleagues Shaleen and Darshan who did a very good job with all the co-ordination, understanding and team work we executed under the guidance and leadership of Mr. Bellamy in successfully completing and submitting the dissertation in time.

EXECUTIVE SUMMARY

Introduction: -

This research paper acknowledges Small and Medium Sized Enterprise (SME) of Yorkshire and Humberside. It is about the various characteristics and operational functions they undertake in relation to customer orientation. Previous research and study indicates that SME do undertake the process of sales and customer orientation to gain competitive advantages and market share.

This research paper investigates and find out by ways of forming hypothesis and by doing a questionnaire survey about the concept of customer orientation being done by the SME of Yorkshire and Humberside region.

The main objective of this research paper is does customer orientation provides a competitive advantage to the SME in Yorkshire and Humberside region. After a brief overview of the literature in SME customer orientation and competitiveness, the research method aims what are the ways this research is carried forward for a formidable hypothesis and its implications from the primary data collected. The paper concludes by discussing the findings and key issued resulted out the research, that sales and customer orientation are being practised by the SME quiet satisfactorily to provide a competitive advantage for the owner /managers, so as providing high and effective services to its customers. The region of West Yorkshire shows more competencies than rest of the region.

Maintaining quality standards and training process needs to be developed and practised more with making more awareness and support from external sources to be more competent and have market share. This is an area where the owner /managers are behind which could be various complications like finance, planning, other resources.

This research paper concludes by advocating future recommendations for the SME, where they are lacking behind, solutions to the problems and also further study and research can be conducted in this area.

.0 Introduction. 3

LIST OF FIGURES AND TABLES:

FIGURE 1:

TERMS OF REFERENCE: -

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.0 Introduction.

This research paper advocates and focuses in the field of customer orientation of Small And Medium Enterprise (SME) in Yorkshire and Humberside. The study examines and discusses various relations and characteristics of SME's.

It has been argued and established by authors that role of customer orientation and 'centric' is central to the success of business and implementation of strategies, basically this is so because current business environment is very competitive which demands continuos delivery of superior quality services and products. It is the play of market dynamics and the intensity of competition to get set up, operate, overcome problems and manage to survive is the overall background of this research paper, signifying the basic interest of customer orientation of SME, extending to how it is done by the owner / managers, trends and success.

In this section of introduction, the reader will encounter a general idea of SME's, what are they, SME's in the UK, and further focus on the region of Yorkshire and Humberside (which is the base region of this research paper). Then it states about the position and perception of this study the researcher is going to take the interest in the topic. Last but not the least, is the research structure that how I am going to do the research, tools to be used, systematic procedure in relation to the guidelines stated out, its limitations and advantages.

.1 What is an SME: -

SME stands for Small And Medium Size Enterprise category (micro, small and medium) which is economically fair to name and provides certainty to the law of enterprise.

It can be said as: -

Including all types of enterprises, whatever their legal status, and clarifying the definition of micro-enterprises, family business etc.

Introducing a clear method to calculate the relevant ceilings in order to increase legal certainty and guarantee equal treatment across Europe,

Designing a method so as to favour investment, in SMEs, innovation training and clusters of enterprises, elements that are considered particularly important in the context of economic development, modernisation and employment prospects and standard of living, innovation and entreprenureship and growth.

.2 SME in U.K.

In the United Kingdom, it has remained one of the main destinations of FDI inflows. The ability of the region to attain and retain investment and skilled people reflects on the quality of life and environment and perceptions of the region as a good place to live and do business.

The U.K. labour govt. have made it known that the future U.K. economy will become increasingly reliant upon SME's with the formulation: -National Skill Task Force. (The opportunity to networks and access to world class value-adding information.)

The perception or estimates held is that there are around 37 million business regarded as active, with 25.000 are medium sized with 50-250 employees in U.K.

www.countryside.gov.uk.

Sara Carter, Dylan Jones - Evans, Enterprise and Small Business, Principle Practice and Policy. Financial Times. Prentice Hall.

1.3 Focus on Yorkshire and Humber: - SME.

This region is clearly defined sub-regions, West and North Yorkshire, Humber and South Yorkshire. This region has experienced significant economic upheaval in the last decade, running down of the coal industry, decline in heavy industry, restructuring of steel industry.

The majority of SME employ permanent fulltime staff with stable employment profile, the region broadly follows national trend like growth in service sector. It is like land based industries such as fishery, agriculture are significant in rural areas, manufacturing, and real estates, whole sale and retail trade, construction are of great importance in the urban areas.

The main stock of business are agriculture, retail and real estate which are at the top, followed by construction and manufacturing, hotel, transport, health and social work, education, finance and fishing. This includes the type of competition characterising the market generally, and the basis on which the SMEs' saw themselves competing, with respect to marketing information, quality of product and services, employee training, customer satisfaction and orientation.

www.innovating-regions.org/download/SecondStage.doc

www.yorkshire-forward.com/display.

www.dti.gov.uk/sectors_automotive.html

In today's world of competition and survival, putting the customer at the centre of business is a receipt of success, to customise the future, like what the customer wants, make and develop products to satisfying pricing and quality level and an effective sales support, in short "customer centric". It is the principle of making customer satisfaction the fundamental business objective to which everything is directed, and how it provides a competitive advantage and edge to do business and sustainable market growth for the SMEs' in Yorkshire and Humber.

.4 Over all aim: -

The position and perception of this report is to look at that CRM (customer relationship management) customer orientation is a growing area in SME, its giving an edge and benefit to business operations and what advantage of competition does it provide being 'customer centric' in being successful and survive among competitors. This is because previously it was only marketing and sales, but in today's world of competition it is essential to attack and retain customers. It is one to one relationship marketing, a benchmark of customer satisfaction and loyalty and how information is being used to improve forecasting of needs and satisfactions.

This paper intends to investigate areas like how long the SME has been operating in this region, in relation to profit of the company, employee training - support, how do they provide service to customers (effective and potentially), maintain value and quality standards, does the companies are being innovative in planning and operations management. How much the concept of relation marketing is used by SME, to what effect and how much really they are into it and application and providing a competitive advantage over competitors.

.5 Research Structure: -

It is to highlight the whole process of the report would be carried out in a systematic way, boosting its research worthiness. From this introduction heading, the reader will encounter headings and studies like the Literature review, which primarily indicates what do we already know about the topic or issue of research, to is precise, previous work done in this field of interest. It is specifically to generate an area of study and interest and investigate what research has been done. The next topic, which draws attention, is the Research Methodology. It is in short an orderly approach to data so that information can be obtained from it, processed, polished and manipulated and then to dip upon criteria and critically find and think upon, e.g.: competitive advantage on a respective issue to be discussed. This will make clear of what I am going to do and how. So the aim is clear follows the process I am going to adept and practice in order to gather and generate data. After the big data is collected the next big step is data analysis, which by using tools and techniques to give a definite framework and structure to the data. A well set of data and information helps to understand and discuss its usefulness and will provide an evidence base for my main aim, which is the Discussion section, where this paper chooses to correlate its own findings with previous findings and research (literature) to come to a Conclusion.

It is to conclude at the end by saying about the gap found (if any), from my position and perspective, against previous research.

2.0 Strategic Management. (Literature Review)

2.1 Introduction: -

In this Literature Review section, the reader will encounter various research work being done by authors and management gurus of their study and findings in the my research area of customer relationship, 'orientation'.

The main areas I will highlight in this area are of SME the segment they operate, market dynamics and competitiveness, (how competitive is the segment basically) and what does the competition offer to, customer behaviour. Other topics to explore are in their operations in the market, service mechanism, what authors have stated in this contexts in relation to my research topic. The literature will highlight what previous work and studies of various authors have said is what the reader will encounter.

During the last decade, a significant change in management thought has been the realisation that organisations often fail to focus on the customers and market they serve. A market focus is directing the efforts of the firm to meet customer needs and wants. This change in management perception of the customer developments started by an increasingly competitive global business environment, fast technological developments, which have shortened product life cycles and the difficulty of many organisations to survive and sustain superior performance.

As stated by the author and referred from RUEKERT (1992) it defines the orientation as the degree to which the organisation obtains and uses information from customers, develops a strategy which will meet customer needs and implement that strategy to satisfy customer 'needs and wants'.

It is argued that customer relationship management and orientation is a strategic management approach, its implementation has an effect on the overall operation of the firm.

2.2 SME in service

While service quality has proved an essential ingredient in convincing customers to choose one organisation over another, organisations have realised that maintaining excellence is essential if they are to gain customer loyalty. In the present competitive situation, creating and maintaining a long-term relationship with customers, stakeholders are vital to an organisations market leadership. It is not only to improve, but to innovate product services and anticipate customer needs on a continuo basis.

Here the authors states and emphasis that competition constitutes the basis of a firm' success or failure. To state that a focus on competitive advantage through anticipation, innovation and relationship will prove the means to sustainable and 'unequivocal' market leadership.

This is so because quality today no longer is a competitive weapon, but a basic core offering. An organisation ability to enhance the value of the results continuously, 'customer value' is the critical factor. Thus what establishes a firms' competitive advantage is their ability to serve customers' present and future needs, that requires consistent and continuos investment.

But I will argue to say that in the urgency to satisfy customer needs, organisations concentrate on what service they offer, and it is the 'job' which is being offered. But from a customer' point of view, what is being offered is not the main issue, how it is being offered is the main intention, and this is what distinguishes a firm from its competitors. According to porter (1985), competition is essential for business; it is the presence of competitors that checks a firm against complacency with the present standard of performance. So in business, anticipation is a process of orientation into the future needs has become the leading concept of business superiority.

A good example is - In the best selling book 'in search of excellence', Peters and Waterman (1982) reported on 43 of the best-run companies in USA. Within 2 years of the books' completion, 14 of the companies were in financial trouble and on verge of closing down. A subsequent study conducted by Business Week factor which was very common to all the 14 failing companies, that is: a failure to anticipate, react and respond to change in the work and market place. IBM is also a notable example of that. Products and services offered in the market have become increasingly complex; organisations offer a collection of products and services in order to compete. So what matters is the creative bundling of a firms' core competencies and a need for a focus on the factors that signal or give value to the customers. This is so, because, organisations have realised that it is five times more expensive to attract a new customer than it is to retain an existing customer, with additional benefits like increased purchasing, reduced cost, word of mouth vibe (loyal customer) employee retention and also lifetime value of a customer.

(Kwaku Appiah-Adu, Satyendra Singh) - customer orientation and performance: a study of SME.

(Jay Kandamputty, Ria Duddy) - competitive advantage through anticipation, innovation and relationship.

2.3 General Competitive Issues In U.K. (SME)

In recent years, the subject of market orientation has received a great deal of attention from researchers and scholars in U.K. There is a continuos change in market conditions, increased interest in this area, it is a fact that 95% of firms in U.K. are considered to be small and medium sized enterprises. There is a general agreement in the literature that a market orientation firm is one in which all employees are committed to the continuos creation of superior value to customers, which included 3 key behavioural attributes: - 'customer orientation, competitor orientation and inter-functional co-ordination'. (Kohli and Jaworski, 1990).

It is well documented that SMEs have unique characteristics that differentiate them from conventional marketing in large organisations (e.g. Carson, 1990). These characteristics may be determined by the inherent characteristics and behaviours of the entrepreneur or owner/manager; and they may be determined by the inherent size and stage of development of the enterprise. Such limitations can be summarised as limited resources (such as finance, time, marketing knowledge); lack of specialist expertise (owner-managers tend to be generalists rather than specialists); and limited impact in the marketplace.

In addition, SME marketing is haphazard and informal because of the way an owner-manager does business; they make most decisions on their own, respond to current opportunities and circumstances and so decision making occurs in a haphazard and apparently chaotic way, according to personal and business priorities at any given point in time (Scase and Goffee, 1980). Clearly such limitations will influence, and determine the marketing characteristics of an SME. Since the late 1980s' the U.K. and several other advanced and developed economics have adopted policies highlighting the central role of the entrepreneurial small firm in furthering economic prosperity. The author asserts that despite the impact of the small business on nations' economics, the small business venture risky. In this view, the increasingly competitive thrust of the marketplace small businesses is likely to face greater threats for survival.

Yorkshire and Humberside has developed against a background of National and European policy which aims to improve competitiveness of the region through innovation. The long-term aim is to strengthen the regional economy within a global market place, to create a climate for wealth and job creation.

For a strong regional economy, it is crucial that business is not only vibrant and strong but also involved at a regional level.

(http://www.innovating-regions.org/download/SecondStage.doc.)

2.3. SME Marketing: -

For the SME in this region, the marketing concept holds that the key to organisational success is through the determination of the needs of the target market. The author states that if a business is to achieve profitability, the entire organisation must be oriented towards satisfying customer needs, wants, and aspirations. Most significantly, the research study hinted the use of personal contacts, a strong selling focus, awareness of some aspects of formal marketing are the key characteristics of what can be termed as SME marketing. The author goes on discuss what differentiate a small and large firm in this region, which are mainly uncertainty, innovation and evolution.

There is no doubt uncertainty is a big feature for small firms followed by limited resources.

(Charles Blankson, David Stokes) Marketing Practices In the U.K. Small Business Section.

(Jim Hill) A multidimensional study of the key determinants of effective SME marketing activity.

2.4. Communications in SME: -

Another important issue that needs to be highlighted and discussed is how do the SME use and practise communication channels and networks with their customers and key clients which might enhance their marketing prospects both strategically and at the operational level to achieve competitiveness, customer service (after sales).

It is well stated by (Hill and Fallis, 1995: and Penley et al., 1991) that communication is a foundation level competency. Communication (internal or external) is vital for competent marketing to occur, like communication through e-mails, send out information packs of goods and services being offered, make phone calls when essential or courtesy calls for relationship building, trust, listening to needs and requirements of the customers.

It is with reference to (Joshi and Stump, 1996 and Hall and Rao, 1993) and mainly by (Levitt, 1993, p. 111) who stated that 'the relationship between a buyer and seller seldom ends when the sale is being made... The sale merely consummates the courtship, and then the marriage begins....'.

(International Journal of Entrepreneurial Behaviour & Research) Volume-7, Number- 6. Copyright (c) MCB University Press.

I would like to support this again with the service management literature, which agues that customer satisfaction is the result of a customer's perception of the value received in a transaction or relationship, best be achieved my effective communication and contacts. (Blanchard and Galloway, 1994, Heskett et al., 1990.)

So in a way, a good communication channel and practise makes things happening for an SME's profit growth, success and over all market shares, because from a customer's belief the quality of value received from one supplier or company is greater than from another supplier. Advantage for a SME is it increases profit, reduces costs to acquire customers, and also decreases costs to serve customers familiar with a firm's product /service delivery system.

2.5. Customer orientation and SME.

SME in U.K. are usually characterised by relatively simple organisational structure and more cohesive cultures. In addition, SME businesses have limited range of product and services, thus minimising the need for a formal procedure developed to gather and process customer or market information for decision-making.

It relation to this I can say SMEs' in this region full exploit and enhance the ability for a customer oriented culture. It is argues that SME are noted for their lack of long range focus, strategic orientation, systematic decision making, so customer orientation could be a critical determinant for performance. The author states and the main objective is that a business which improves customer orientation will enhance its performance, and it will be a vital determinant for success because such firms generally lack the financial resources to explore sources like research and development, competitive advantage, low cost leadership. So under such conditions will the practice of customer orientation provide a good competitive advantage and high survival rate?
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Customer orientation calls for a company to understand and satisfy customer needs and it is assumed so that the firm will benefit in the form of profits. A company to perform, it must create a sustainable superior value for its customers. (Porter, 1985)

Because a relationship developed with a consumer/customer can be an avenue to gain competitive advantage. The best prospects could be the current consumers of the firm, because at least one point of time the service or product was attractive enough to use or buy it. However it is know that markets spent more time ...

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