- Books Name
- BUSINESS STUDIES-XII
- Publication
- ABCD CLASSES
- Course
- CBSE Class 12
- Subject
- Business Studies
Impact of Government Policy Changes on Business and Industry
- Market orientation
- Earlier firms used to produce first and go to the market for sale later.
- Now firms have to study and analyze the market first and produce goods according to customer needs
- McDonald TIKKI Chat in Indian context
- Increasing competition:
- New industrial licensing and entry of foreign firms have increase competition for Indian firms in service industries like telecommunications, airlines, banking, and insurance.
- Maruti is facing competition from both Tata Motors and Hyundai
- Reduction of budgetary support to the public sector :
- The central government’s budgetary support for financing the public sector has declined
- To survive and grow, PSU’s will have to be more efficient and generate their resources
- Important for change:
- After 1991, firms have to continuously modify their operations through mergers, acquisitions, takeovers to grow
- Understanding the needs of Indian customers CoKe takeover thumbs up, Limca from
- Need for developing human resources:
- Need for developing human resources: Indian enterprises have suffered for a long with inadequately trained personnel.
- The new market conditions require people with higher competence and greater commitment. Hence the need for developing human resources.
- Demanding customers:
- With awareness and Increased competition in the market
- Customers have a wider choice in purchasing better quality goods and services.
- Price war in the telecom sector
- Adopt the Rapidly changing technological environment:
- Increased competition forces the firms to develop new ways to survive and grow in the market. New technologies make it possible to improve machines, processes, products and services.
- The rapidly changing technological environment creates tough challenges before a smaller firm