The Muamalat Newsletter Vol. 1 2024

FEM eNewsletter | June 2024 47 FromVulnerability to Viability: Strategic Tools for SMEs in Turbulent Times Richard Seow Mantissa College / Pole Paris Alternance (PPA) Business School are arguably the most susceptible to the challenges of the VUCA era, owing to their relatively limited resources and capabilities. Navigating these turbulent times demands agile and strategic responses from these enterprises. While easier said than done, the pressing question remains: how should SMEs strategize to tilt the scales in their favour? There are some who expect to find an easy fix to the situation, but most likely end up with disappointment. Addressing this question necessitates a meticulous internal and external analysis. Two potent analytical tools—PEST, which examines political, economic, social, and technological factors, and SWOT, which assesses strengths, weaknesses, opportunities, and threats— emerge as particularly relevant and valuable. By leveraging these frameworks, SMEs can better understand their operating environment and devise strategies that harness their strengths and mitigate their weaknesses, ultimately enabling them to thrive amidst ongoing uncertainty. The unforeseen advent of the COVID-19 pandemic in 2020 precipitated profound upheavals across the global business landscape (Fernandes et al., 2022). As society transitioned into what is now considered an endemic phase, many anticipated a return to pre-pandemic norms and a swift economic recovery. Contrary to these expectations, the world has instead entered a markedly different phase—one that retains some elements of familiarity but stands distinctly apart from the past. Life in many respects has shifted towards a ‘new normal’, the full implications of which are still unfolding. This state of flux is frequently characterized as an era of volatility, uncertainty, complexity, and ambiguity (VUCA) (Taskan et al., 2022). Small and medium-sized enterprises (SMEs) constitute the linchpin of numerous economies, including that of Malaysia, where they significantly bolster the national economy and play a pivotal role in employment (Yaacob & Radzi, 2022). Yet, despite their critical importance, SMEs