june 18, 2009 role of business schools in developing enterprises and smes how are the business...
TRANSCRIPT
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
How are the Business Schools Relevant for the Small and
Medium Enterprises
Dr. Arif Iqbal RanaDirector, ESMEC
Associate Professor, SDSBLahore University of Management Sciences
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Size of Firm
Costs
Transac
tional
Cost
Shirking Cost
SME Competitiveness
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Hennart (1993)
Transaction Costs:The cost of measuring output in all of its dimensions and the consequence of
not measuring it perfectly.
Shirking Costs:The cost of directing and observing behavior and of failing to do so perfectly.
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Size of Firm
Costs
Transac
tional
Cost
Shirking CostHigh Scale Economies
High Scale Economies Manufacturing
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Size of Firm
Costs
Transac
tional
Cost
Shirking Cost
Low Scale Economies
Low Scale Economies Manufacturing
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Advantages of Small Scale Operations
Advantages
Flexibility
Expertise (specialization)
Cost Savings: Lower labor costs Lower Taxes Lower overheads
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Advantages Disadvantages
Flexibility Low Market Power (developing new products and markets)
Expertise (specialization) Low Scale Economies (including procurement)
Cost Savings: Lower labor costs Lower Taxes Lower overheads
Transactional Costs (including lower quality control)Production Planning and Control
Government PolicyFinancing Costs
Disadvantages of Small Scale Operations
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Business School Strengths
Teaching Material
Faculty Expertise
Student Ambitions
Personality Development
Curriculum Focus
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Business School Strengths
Teaching Material Corporate Cases
Faculty Expertise Large Enterprise Issues
Student Ambitions Corporate Job
Personality Development Risk Averse
Curriculum Focus Functional Expertise, Competitive Mindset
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
SME Needs
Teaching Material SME Cases
Faculty Expertise Small Enterprise Issues
Student Ambitions Entrepreneurship
Personality Development Risk Manager
Curriculum Focus Generalist/Multi-Disciplinary Expertise, Cooperative Mindset
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Conclusion
Need Redesign Management Programs Executive Degree
Entrepreneurship Development Program Different Focus Different Content Different Participant Different Faculty
Role of Business Schools in Developing Enterprises and SMEs
June 18, 2009
Jazak Allah Khair(Thank you)
Questions?