Saturday, 26 October 2019

Indian Business Environment


                                               Indian Business Environment

The face of the Indian economy has changed drastically since 1991.

Earlier, pricing in India Notes was governed by administered price mechanisms, but market forces today govern pricing.

India's external position is also significantly stronger.

Exports, specifically of services, have grown substantially in 2004-05.

Growth in services has largely been fueled by the information technology boom in which India has emerged as a world leader.

The thrust of reforms in the financial sector relates to privatization and restructuring.

Public sector banks have been permitted diversified ownership by law subject to 51 per cent holding of Government/RBI/SBI.
IFCI and IRBI were converted into public limited companies.

The process by which organization monitors their relevant environment to identify opportunities and threats affecting their business is known as environmental scanning.

Analysis is done by means of a search of verbal and written information, spying, forecasting and formal studies and information system.

Various changes take place in the environment and it is difficult, cumbersome and a costly affair to keep a regular eye on every aspect of these changes.

So it is essential for a strategist to rate the environmental factors on the basis of criticality and then invest time and resources in environmental analysis.

Changes in the microenvironment may be systematic or discontinuous.

Gradual changes, changes in a phased manner, or those that are predictable are systematic changes.

ETOP is designed to present programs that foster development of new cost-effective environmental technologies.

It is an education-based organization.

It concentrates on workplace skills and job competencies.

It is important to 'scan' the external environment before creating business plans or when evaluating existing ones.

Doing this takes the form of a SLEPT analysis and thus there is a scanning or an investigation of the Social, Legal, Economic, Political, and Technological influences that can be or likely to be on a business.

Some management gurus believe that in today's turbulent business environment the best scanning method available is continuous scanning.

This allows the firm to act quickly, take advantage of opportunities before competitors do, and respond to environmental threats before significant damage is done.

When we refer to environmental scanning, we usually refer just to the macro environment, but it can also include industry and competitor analysis, consumer analysis, product innovations, and the company's internal environment.

Planning in India dates back to the 1930s.

Even before independence, the colonial government had established a planning board that lasted from 1944 to 1946.

Private industrialists and economists published three development plans in 1944.

India's centralized planning process is governed by seven cardinal policy objectives: growth; social justice & equity; modernization; self-reliance; food; productivity and employment.

These would continue to be the guiding principles for the Eleventh Plan (2007-12) which commences from 1st April, 2007.

Ad-Hoc Scanning: Short term, infrequent examinations usually initiated by a crisis Business Environment: Aggregate of all conditions, events and influences that surround and affect a business Notes Complementary Products: Products that add value to some other product Continuous Scanning: Continuous structured data collection and processing on a broad range of environmental factors Corporate Intelligence: Technique of adopting industry/research expertise to analyse the information available on competition Critical Success Factors:   Areas in which good results will help ensure an organization's success against competition Environment Scanning: Process by which organization monitors their relevant environment to identify opportunities and threatsETOP: Environmental Technology Opportunities Portal External Environment: Factors external to the industry having significant impact on the firm's strategiesInternal Environment: Internal to the organisation and can be controlled Macro Environment:   Environment, which an organization faces in its specific arena Regular Scanning:Studies done on a regular schedule SLEPT Factors: Social, legal, economical, political and technological factors Spying: Corporate espionage Strategic Groups: Clusters of competitors that share similar strategie Substitute Products: Products that can replace another product     

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