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प्रश्न
Attempt the following:
Impact of new economic policy on business and industry.
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उत्तर
(A) Introduction: On July, 1991, the Government of India announced its New Industrial Policy. It brought about radical changes in the Economic Policy. The three main pillars of Economic reforms are L-P-G- (Liberalisation, Privatisation, and Globalisation). The main purpose was to modernise India’s Industrial system, implement new techniques, remove unproductive control, encourage private investment, and integrate our economy with the global economy.
(B) Impact of changes in Government Policy on Business and Industry:
(1) Budgetary Support: The Central Government’s budgetary support for financing the public sector outlays have declined over the years. In order to survive and grow, PSUs have to be more efficient and self-sufficient so as to compete with the private sector.
(2) Increase in Competition: Competition for Indian firms has increased due to the changes in the rules of industrial licensing and entry of foreign firms. for e.g. Service Industries like Insurance, Banking, Telecommunications, Hotel, and Airlines, etc. which were earlier in the public sector are now facing, competition from private players such as Bajaj Alliance, Max Life, Star Life, Insurance, low-cost airlines like Indigo, etc.
(3) New Trade Policy: The new trade policy has helped the Indian Firms to enter into foreign markets and earn the foreign exchange required for importing raw materials, spare parts and components they needed t for keeping their production lines going.
(4) Demanding Customers: Today’s market is customer-oriented as customers are well informed and there is a growing awareness among them about the malpractices adopted by traders, consumer rights, consumer education, and so on. Moreover, competition in the market gives the customer a wider choice in purchasing good quality products and makes customers more demanding.
(5) Need for Human Resource Development: New technologies require expert knowledge and skill in various fields. Moreover, newer markets made it compulsory for companies to acquire trained personnel with a high degree of competence and commitment. Hence, there is a need for well-trained staff and thereby develop human resources.
(6) Change in Technological Environment: Increased competition and advancements in the field 0f technology have forced the business units to develop new ways to survive and grow in the market and keep pace with the latest technological developments.
(7) Change in the Concept of Marketing: Earlier business organisations were production oriented but due to the fast-changing business world it has now become market-oriented. This changed to a societal concept where the needs of society are kept in mind by the producers. The latest is relationship marketing whereby it is not only producing goods for consumers but maintaining long term relationships with them so as to sustain them.
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संबंधित प्रश्न
What is meant by business environment?
Name any two Specific forces of business environment affecting business.
Explain any three features of the business environment.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| A) Internal environment | 1) Knowledge of law |
| B) Political environment | 2) Taxation policy |
| C) Legal environment | 3) Technology |
| D) Economic environment | 4) Traditions |
| 5) WTO | |
| 6) Controlled by business | |
| 7) High cost | |
| 8) Ideology of political party |
State whether the following statement is True or False.
External factors of business environment are controllable factors.
State whether the following statement is True or False.
Business is the product of different environmental factors.
Compete the sentence.
Geographical and Ecological factors are included in ____________ Environment.
Study the following case/situation and express your opinion.
Make in India is an initiative launched by the government of India. It focuses on job creation and skill development and it is in twenty-five sectors of the economy. Under the initiative, brochures on these sectors and web portal were released. The initiative aims at high quality standards and minimizing the impact on the environment. It also seeks to attract foreign capital investment in India.
- Identify dimensions of the business environment.
- Comment on it.
Justify the following statement:
Political stability builds up confidence among business people.
Answer the following.
What is the business environment? Explain the importance of the business environment.
The sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance is known as ______.
Read the following text and answer the following question on the basis of the same:
The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine-free Coca-Cola, Diet Coke Caffeine-free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design, and creative advertising.
Identify the feature of Business Environment which The Coca-Cola Company managed to get in their favour.
Which of the following does not characterise the business environment?
Which of the following are the characteristics of business environment?
Which of the following statements is incorrect?
"The components of business environment keep on changing due to changes in various circumstances." This shows that business environment is ______.
Assertion (A): Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones.
Reason (R): Business environment is dynamic, i.e., it keeps on changing in consumer preferences.
Which of the following is an example of an external factor in the business environment?
