Lately, many companies have planned for significant investments in organised retailing in India. Several factors have prompted their decision in this regard. Customers income is rising. People have developed a taste for better quality products even though they may have to pay more. The aspiration levels have increased. The government has also liberalised its economic policies in this regard and permitted even cent-percent foreign direct investment in some sectors of retailing.
(a) Identify changes in the business environment under different heads: economic, social, technology, political and legal that have facilitated the companies decisions to plan significant investments in organised retailing.
(b) What has been the impact of these changes with regard to globalisation and privatisation?
Lately, many companies have planned for significant investments in organised retailing in India. Several factors have prompted their decision in this regard. Customers income is rising. People have developed a taste for better quality products even though they may have to pay more. The aspiration levels have increased. The government has also liberalised its economic policies in this regard and permitted even cent-percent foreign direct investment in some sectors of retailing.
(a) Identify changes in the business environment under different heads: economic, social, technology, political and legal that have facilitated the companies decisions to plan significant investments in organised retailing.
(b) What has been the impact of these changes with regard to globalisation and privatisation?
(a) Changes, which have taken place in various areas are as follows:
Economic changes
(i) Increase in disposable income of the people.
(ii) Liberalisation of economic policies.
(iii) Increase in demand for branded products.
(iv) Increased globalisation and integration of world economics.
Social changes
(i) Increased aspiration levels due to an increase in incomes.
(ii) Changes in consumption habits.
(iii) Changes in lifestyle.
(iv) Increase in the number of nuclear families.
Technological changes
(i) Advances in food packaging and processing technologies.
(ii) Advancements in supply chain management.
(iii) USe of more flexible and customised manufacturing process.
Political changes
(i) Acceptance of organised retailing by a decisive number of political parties.
(ii) Favorable attitudes of Indian corporate sector towards competition from foreign companies in organised retailing.
Legal changes
(i) Abolition of license, permit, and quotas.
(ii) Liberalisation fo foreign investment laws with regard to organised retailing.
(iii) Changes in existing economic legislations permitting investment in organised retailing.
(b) Due to globalisation and privatisation, more retailers from India and abroad are encouraged to make investments in organised retailing. The competition has increased, the consumers are more demanding and expert working force is required in order to cope up with the changes, which have taken place and are further changing.
(a) Changes, which have taken place in various areas are as follows:
Economic changes
(i) Increase in disposable income of the people.
(ii) Liberalisation of economic policies.
(iii) Increase in demand for branded products.
(iv) Increased globalisation and integration of world economics.
Social changes
(i) Increased aspiration levels due to an increase in incomes.
(ii) Changes in consumption habits.
(iii) Changes in lifestyle.
(iv) Increase in the number of nuclear families.
Technological changes
(i) Advances in food packaging and processing technologies.
(ii) Advancements in supply chain management.
(iii) USe of more flexible and customised manufacturing process.
Political changes
(i) Acceptance of organised retailing by a decisive number of political parties.
(ii) Favorable attitudes of Indian corporate sector towards competition from foreign companies in organised retailing.
Legal changes
(i) Abolition of license, permit, and quotas.
(ii) Liberalisation fo foreign investment laws with regard to organised retailing.
(iii) Changes in existing economic legislations permitting investment in organised retailing.
(b) Due to globalisation and privatisation, more retailers from India and abroad are encouraged to make investments in organised retailing. The competition has increased, the consumers are more demanding and expert working force is required in order to cope up with the changes, which have taken place and are further changing.
