Recently many companies have planned for significant investment in organised retailing in India. Various factors which have encouraged companies to take these decisions are customer income is increasing, rise in standard of living of people. People are ready to pay high price for quality goods, government policy of liberalisation regarding MNC entry and FM, etc.
(a) Explain briefly changes in business environment under different heads that have facilitated the companies decision to plan significant investment in retailing.
(b) What has been the impact of these changes with regards to globalisation and privatisation?

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(a) Explain recent changes in various environment heads, i.e., economic, social, political, legal and technological.
(b) Explain the topic, impact of change in government policy/economic policy.

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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?

Recently, many companies have planned for major investment in retail business. Increasing incomes, rise in living standards, government policy of liberalisation and its favourable attitude towards modernisation has favoured their decision.

Identify the various dimensions of business environment and explain their effect on business.

An established pharmaceutical company from the United States has done scanning of its business environment and realises the following factors of potential growth in India.

(i) Government in India is encouraging NRIs and foreign investors to invest in Indian companies.

(ii) There would be an improvement in the quality of life of people in India.

(iii) The ruling party is encouraging the foreign companies in India.

(iv) A law has been passed in the parliament relating to delicensing policy on industries.

(v) Procedure for import and export of technology has been simplified.

What are the various dimensions of the business environment? Give an example of each.

Choose the most appropriate option.

(i) The past two decades of globalisation has seen rapid movements in

(a) goods, services and people between countries.

(b) goods, services and investments between countries.

(ii) The most common route for investments by MNCs in countries around the world is to

(a) set up new factories.

(b) buy existing local companies.

(iii) Globalisation has led to improvement in living conditions

(a) of all the people

(b) of people in the developed countries

(d) none of the above

Q. A company manufacturing consumer goods has grown in size. It was a market leader but with changes in economic environment and with the entry of MNCs its market scheme is declining. The company was following a centralized business model as even the minor decisions were in the hands of top level. Before 1991 this model was suitable for company but now company is under pressure to reform.
What organisational structure changes should the company bring about in order to retain its market share?

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(a) Explain recent changes in various environment heads, i.e., economic, social, political, legal and technological. (b) Explain the topic, impact of change in government policy/economic policy.

(a) Explain recent changes in various environment heads, i.e., economic, social, political, legal and technological.
(b) Explain the topic, impact of change in government policy/economic policy.