Investigation on Unsuccessful Attempt of a Small Business Enterprise in Scaling-up/Strategic Diversification Plans

Abstract

Most of the Small & Medium Business Enterprises
(SMBE) are limited to their size and scale of operations by
virtue of their ancillary type of role in the products. These
industries are dependent on the main product promoted by the
bigger industries. In order to diversify into new field or a set
of products, they need to come out of their cocoon they are
living in. Some of the companies do try this and succeed, but
there are many which fail. The companies plan to expand,
diversify and modify their product line but are not able to
cope up with the change. Success will be achievable only
when one balances between needs of the core business with
the growing needs of the new business. It is also required to
balance the conflicts between the core unit and the diversified
business unit. This paper is based on my personal experiences
and is comparative study of two SMBEs trying to spread their
wings.