GLOBAL COMPETITON AND ITS IMPACT ON INTERNATIONAL BUSINESS MANAGEMENT IN SMES

This paper outlines the context of global competition and it impact on international business. Its key focus is the challenge for Small-to-Medium Enterprises (SMEs) to operate successfully in international markets. The paper paints a background of the current business environment; it explores the macro and micro economic factors driving and inhibiting global competition, such as emerging economies, research and development costs, and time-based competition. It then introduces management practices that were, in their time, considered to be examples of business excellence. Then the major part of the paper investigates the context of 21st century business, and how companies can respond in international markets. Business excellence can be characterised as - understanding customers and markets; and knowing how to 'deliver' what is needed. The paper identifies three key areas of management, namely people and organisations, processes and relationships where attention is necessary. These are explored and developed, based on research conducted to investigate the presence and nature of business excellence in SMEs. Using examples it explores the management, operations and capabilities necessary for SMEs, when their objectives are to be successful in international markets. The paper concludes by pointing to good practice and business excellence present in SMEs operating internationally.