Briefly discuss the impact of Government policy changes on business and industry.
Impact of Government policy changes on business and industry
(i) Increasing Competition As a result of liberalisation, privatisation and globalisation number of players increased in all sectors and increased competition for everyone.
(ii) More Demanding Customers Increased competition in the market gives the customer wider choices in purchasing better quality of goods and services, which makes them more demanding.
(iii) Rapidly Changing Technological Environment New technologies help to improve machines, process products and services. The rapidly changing technological environment creates tough challenges before smaller firms.
(iv) Necessity for Change After 1991, the market forces have become turbulent as a result of which the enterprises have to continuously modifying their operations.
(v) Need for Developing Human Resource The new market conditions require people with higher competence and greater commitment. Hence, the need for developing human resources emerged.
(vi) Market Orientation Earlier, production was taken up first and then selling was done. Now, due to increasing competition and more demanding customers firms have to study and analyse the market first and produce goods accordingly.
(vii) Loss of Budgetary Support to the Public Sector Public sector have less of budgetary support from the Central Government. Now, they have to generate their own resources and be more efficient in order to survive and grow.
How would you characterise business environment? Explain with examples, the difference between general and specific environment.
Identify changes in business environment under different heads – economic, social, technological, political and legal that have facilitated the companies decisions to plan significant invstments in organised retailing.
What has been the impact of these changes with regard to globalisation and privatisation?
What are the essential features of
(a) Liberalisation
(b) Privatisation
(c) Globalisation
How would you argue that the success of a business enterprise is significantly influenced by its environment?
Why it is important for business enterprises to understand their environment? Explain briefly.
What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?
Why it is important for business enterprises to understand their environment? Explain briefly.