Comparison of the Small and Medium Enterprises in UK and Denmark

By

ACKNOWLEDGEMENT

First of all, it would give me great pleasure to show my gratitude to my professor, for his propositions, remarks, understanding and patience. It would also be an honour to express gratitude to my parents, my mother, my father, my sister and my brother for their endless support in my life and allowing me to make all my decisions. I would also like to take the opportunity to show appreciation to my co-workers for their expert cooperation on every occasion. I would also like to be grateful to the Department, managers of the university, instructors and students who have supported me throughout this research.

DECLARATION

I declare that the content presented in this thesis/dissertation is, in my understanding and opinion, original and has not been presented for scholarly assessment in the past, either completely or partly, for an academic degree at this educational institution or elsewhere. I would also like to admit that I have studied and understood the principles, prerequisites, processes and guidelines of the University regarding the higher academic degree research award and to my dissertation. I would also like to declare that I have abided by the University's principles, prerequisites, processes and guidelines.

I certify that the work presented in the dissertation is my own unless referenced

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ABSTRACT

The process of industrialisation is concerned with the growth of the economy and the processes that occur at any geographical extent, which may range from an urban area to an entire nation.

Historically, these processes entail the initiation and development of a manufacturing sector that first specializes in basic activities that include the production of commodity-type goods. SMEs considerably add to business, financial, technical and local growth in all financial systems, whether they are developed or developing. Small and Medium scale Enterprises need to be encouraged to achieve competitive edge and long-term development under new world business policies and rapid scientific transformations. The main objective for conducting this research is to compare the business culture and management and leadership styles in the small and medium sized business organisation.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1Research Background1

1.2Research Aims and Objectives3

1.3Method Used4

1.4Purpose of the Study4

1.5Structure of the thesis5

CHAPTER 2: LITERATURE REVIEW8

2.1Significance of Small and Medium Enterprises8

2.2Business Culture9

2.3Management styles11

2.4Managing and Leading an SME12

2.4.1Autocratic or Authoritarian Style14

2.4.2Participative or Democratic Style15

2.4.3Laissez-Faire leadership style15

2.5Theoretical Considerations15

2.5.1Transformational Leadership16

2.5.2Transactional Leadership17

2.6Leadership and Effectiveness18

CHAPTER 3: METHODOLOGY21

3.1Research Method21

3.2Secondary Data Collection22

3.3Qualitative Research23

3.4Additional Online searches23

3.5Literature selection criteria24

3.6Research Limitations24

3.7Ethical Concerns25

CHAPTER 4: DISCUSSION AND FINDINGS26

4.1Comparison of SMEs in Britain and Denmark26

4.1.1Britain26

4.1.2Denmark28

4.2Business Models for success of SMEs31

4.2.1Balanced Score Card (BSC)31

4.2.2BCG Matrix Model35

4.2.3Porter's Generic Strategies36

4.2.3.1Cost leadership37

4.2.3.2Differentiation37

4.2.3.3Focus (Low Cost)37

4.2.3.4Focus (Differentiation)38

4.2.4Porter's Five Force Model38

4.2.4.1Threat of substitute products39

4.2.4.2Bargaining power of suppliers39

4.2.4.3Bargaining power of customers40

4.2.4.4Threat of new entrants40

4.2.4.5Competitive rivalry within the industry41

4.2.5Ansoff Matrix Model42

4.3Criticism on Business Models44

4.3.1Porter44

4.3.2Kaplan balance scorecard model44

4.3.3BCG matrix model44

4.3.4Ansoff's model45

4.4Application of Business Models in SMEs45

4.4.1Balanced Score Card45

4.4.2BCG Matrix Model47

4.4.3Porter's Generic Strategies47

4.4.4Porter's Five Force Model48

4.4.5Ansoff Matrix Model48

CHAPTER 5: CONCLUSION50

REFERENCES55

BIBLIOGRAPHY62

CHAPTER 1: INTRODUCTION

Small and Medium Enterprises (SMEs) are no doubt have become the most important role playing part of the economy in almost all countries of the ...