Smes and Large Organizations

2502 Words Jun 23rd, 2013 11 Pages
smeQUESTION 1
SMEs AND LARGE ORGANIZATIONS
Small and Medium Enterprise (SMEs) and large enterprise might operate in the same market, but there are certain differences in the two. Certain parameters are used in differentiating a small company from a big company. Such parameters include:
BUSINESS SIZE: Organization size can be determined by the number of employees and IT staffs that work in it. SMEs have lesser employees; say from 10 employees to 200. But large corporations have larger number of employees and IT staffs ranging from 500 to thousands.
Large companies have larger capital investment and higher financial resources; they can source for capital through sales of shares and corporate bond while SMEs have smaller financial
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Sales and Operation – monitor sales, availabilities of stocks, management of customers and suppliers, improving utilization of resources etc.
Although all these functional areas have sub group under each, the various functional groups seems to be classified in respect of to the structure of Engineering SMEs. Larger Engineering organizations have a more complex and sophisticated hierarchy of organizational structure.
Other higher level classifications of functional areas are used by other vendors, the two leading vendors are oracle suite and SAP suite. Although this grouping has some element of contrast and often use inconsistent terminologies, they both work towards identifying of basic functions within organisation information systems.
In medium- sized engineering organisation, these functional groups also referred to as departments often stand as a unit, having their own directors, but in smaller organizations these functional areas may be combined e.g. finance, design and manufacturing may be combined.
Basically, this classification shows the company’s strategic mode of operation, span of control, division of labour and specialization. It shows an overall structure in which a small-medium Engineering SMEs operate and how each functional area is integrated to form a unified working entity that is capable of delivering its purpose in a strategic dimension.
In addition to this, in this
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