BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS

BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management classes.

Today, we are going to provide a business environment in management notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSINESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT, BASIC NOTES FEATURES THE NATURE OF THE BUSINESS ENVIRONMENT, BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT, BASIC NOTES DIMENSIONS OF THE BUSINESS ENVIRONMENT, BASIC NOTES ECONOMIC ENVIRONMENT INDEPENDENCE IN INDIA, BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS

BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS
BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS

A policy of liberalization, privatization, and globalization of the Government has made a vital impression on the working of industries in business and industry. The Indian corporate sector has come face-to-face with many challenges due to government policy changes. The factors and forces of the business environment have a lot of influence over the business. The modern influence and impact of such changes in business and industry are defined below:

Increasing Competition

After the new policy, Indian companies owned to face all-around competition that involves competition from the internal market and competition from the MNCs. The companies that could adopt the latest technology and having large numbers of resources could only survive and face the competition. Many companies could not look at the competition and had to leave the market.

As a result of changes in the rules of industrial licensing and entry of foreign firms, competition for Indian firms has increased separately in service industries like telecommunications, airlines, banking, insurance, etc., that were earlier in the public sector.

More Demanding Customers

Prior to the new economic policy, there were very few enterprises or production units. As a result, there was a shortage of products in every sector. Because of this lack, the market was producer-oriented i.e., producers became key persons in the market. But after the new economic policy many more businessmen joined the production line and many foreign companies also set their production units in India. As a result, there was a surplus of products in every sector. This shift from lack to surplus brought another shift in the market i.e., producer market to buyer market. The market became customer-oriented and many new plans were made by companies to attract the customer. Nowadays products are produced/manufactured keeping in mind the requirements of the customer.

Customers now have shifted more demanding because they are well-informed. Improved competition in the market gives the customers a wider choice in purchasing better quality goods and services.

Rapidly Changing Technological Environment

Before or prior to the new economic policy there was a small internal competition only. But after the new economic policy, the world-class competition started, and to stand this global competition the companies need to adopt world-class technology. To adopt and implement world-class technology the investment in the R & D department has to increase. Many pharmaceutical companies increased their investment in the R and D department from 2% to 12% and companies started spending a large amount for training the employees.

Increased competition makes the firms develop new ways to survive and grow in the market. Modern technologies make it possible to upgrade machines, processes, products, and services. The rapidly changing technological environment produces tough challenges for smaller firms.

Previous to 1991, business industries could follow stable policies for a long time of the term but after 1991, the business enterprises have to modify their policies and operations from time to time.

Necessity for Change

In a managed environment of the pre-1991 era, the firms could have almost stable policies and practices. After 1991, the market forces have become hard as a result of which the enterprises have to continuously modify their operations.

Need for Developing Human Resources

Before 1991 Indian enterprises were managed by inadequately practiced personnel. Newmarket conditions require people with higher support skills and training. Hence Indian organizations felt the need to improve their human skills.

Indian enterprises have suffered for a long time with inadequately trained personnel. The new market situations require people with higher support and commitment. Hence the need for improving human resources.

Market Orientation

Earlier firms were following the selling concept i.e., produce first and then go to market but now companies follow marketing concept i.e., planning production based on market research, need, and want of the customer.

Previous firms used to provide first and go to the market for sale later. In other words, they had production-oriented marketing operations. In a fast-changing world, there is a shift to market orientation as the firms have to study and examine the market first and produce goods accordingly.

Loss of Budgetary Support to Public Sector

Before 1991, all the losses of the public sector were used to be made good by the government by sanctioning special funds from budgets. But now the public sectors have to survive and grow by using their resources efficiently otherwise these companies have to face disinvestment. On the whole, the policies of liberalization, Globalization, and Privatization have carried definite impacts on Indian business and industry. They have become more customer-focused and have started providing importance to customer satisfaction.

The central government’s budgetary support for funding the public sector outlays has decreased over the years. The public sector undertakings have realized that to survive and grow, they will have to be more efficient and generate their resources for the purpose.

On the whole, the impact of Government policy changes particularly in respect of liberalization, globalization, and privatization has been positive as the Indian business and industry has shown great resilience in dealing with the new economic order. India enterprises have developed strategies and adopted business processes and procedures to meet the challenge of the competition. They have become more customer-focused and adopted to improve customer relationships and satisfaction.

Export a Matter of Survival

The Indian businessman was facing global competition and the new trade policy made the external trade very liberal. As a result, to earn more foreign exchange many Indian companies joined the export business and got a lot of success in that. Many companies increased their turnover by more than double by starting an export division.

Conclusion

In today’s business environment and the businessman can survive and remain in the market only by:

  • Appointing qualified professional experts.
  • By using the latest technology keeping in mind the global competition.
  • By building or creating a brand image in the brain of the customer.
  • By understanding the requirements and needs of the customers and constantly trying to satisfy the customers.
  • By keeping their workers satisfied by paying them fair compensation.

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management classes.

Today, we are going to provide a business environment in management notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSINESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT, BASIC NOTES FEATURES THE NATURE OF THE BUSINESS ENVIRONMENT, BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT, BASIC NOTES DIMENSIONS OF THE BUSINESS ENVIRONMENT, BASIC NOTES ECONOMIC ENVIRONMENT INDEPENDENCE IN INDIA, BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS

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