Assignment:

1.What do you mean by the term ' Corporate governance '. Why is it important to have a governing
body in a corporate set up . Give examples.
Ans: Corporate Governance is the interaction between various participants (shareholders, board of
directors, and company’s management) in shaping corporation’s performance and the way it is
proceeding towards. The relationship between the owners and the managers in an organization
must be healthy and there should be no conflict between the two. The owners must see that
individual’s actual performance is according to the standard performance.
Corporate governance allows companies to put their positive traits on display. Corporate
Governance deals with determining ways to take effective strategic decisions. It gives ultimate
authority and complete responsibility to the Board of Directors. In today’s market- oriented
economy, the need for corporate governance arises. Also, efficiency as well as globalization are
significant factors urging corporate governance. Corporate Governance is essential to develop
added value to the stakeholders.
Corporate Governance ensures transparency which ensures strong and balanced economic
development. This also ensures that the interests of all shareholders (majority as well as minority
shareholders) are safeguarded. It ensures that all shareholders fully exercise their rights and that
the organization fully recognizes their rights.

 Good corporate governance ensures corporate success and economic growth.

 Strong corporate governance maintains investors’ confidence, as a result of which,
company can raise capital efficiently and effectively.
 It lowers the capital cost.
 There is a positive impact on the share price.
 It provides proper inducement to the owners as well as managers to achieve objectives that
are in interests of the shareholders and the organization.
 Good corporate governance also minimizes wastages, corruption, risks and
mismanagement.
 It helps in brand formation and development.
 It ensures organization in managed in a manner that fits the best interests of all.

EXAMPLES:
Financial Management: One of the main applications of corporate governance to small businesses
is transparency of financial practices and controls placed on how transactions occur.
Conflict of interest: Board members, partners, owners and key executives should sign conflict-of-
interest disclosure statements as part of any company’s corporate governance.
Hiring practices: As part of good public relations, corporate social responsibility and meeting any
state or federal hiring guidelines, corporations should write and publicize hiring statements that
assert the company’s commitment to fair hiring practices and non-discrimination.
2. What do you think were the primary reasons for the shut down of BSNL? Where did it go wrong
? Where do you think they should have worked upon ? If you were the manager - brand building ,
What would you have done to get the business back on track ?
Ans: The primary reason for the shut down of BSNL are:

 BSNL is in serious financial trouble.

 BSNL has been witnessing rough waters since the last few years.
 With the arrival of Reliance Jio on the scene, the condition has only worsened for BSNL.
BSNL has been in trouble since the last 10 years due to poor government policies and delays in
bringing new infrastructure. The inferior infrastructure, as well as the company structure, have
further resulted in this situation.

The company has been in this situation for a while and the condition has worsened to an extent
that it is not able to pay salaries to its employees. In fact, BSNL has requested the government's
assistance for a financial aid, which in turn has turned to the banks for help.
The telecom operator has been witnessing rough waters since the last few years. With the arrival
of Reliance Jio on the scene, the condition has only worsened for BSNL. Compared to its rivals,
BSNL has been lagging way behind in terms of services and technological advancements. In an
era where everyone is preparing for 5G network, BSNL is testing its 4G network across the
country.

The BSNL should have worked upon

 Advancements of technology.
 Satisfying the customers with latest services.
 Should have worked on how to compete with the competitors.
 Should have hired skilled employees.
 Should have made a proper alternative plans.
As a manager I would have taken few steps, they are:
 Identifying the actual problem.
 Invested in advancement of technology.
 Adopted the strategies of the competitors in order to compete with them.
 Make a new marketing plan.
 Hired skilled employees.
 Identified more alternatives.
 Made strategies in advance to face the crisis.
  Risk would have been taken in order to expand the business because no business can be
successful without risk.
3. Why do you think that a growing economy like India where more then 60 percent of the
population is below the age of 35 is having issues with employment / slow GDP / inconsistency
in development / poor health facilities ? What are the factors contributing to the same ? And
what according to you is the solution for the same ?
Ans: The main reasons that people are facing employment issues/ slow GDP/ inconsistency in
development/ poor health facilities are:
 Caste system
 Slow economic growth
 Increase in population
 Agriculture as a seasonal occupation
 Poor infrastructure
 Low productivity and weak human capital
 High inflation and Persistent trade deficit
 A key reason behind the poor health of the average Indian is the low level of public
investments in preventive health facilities such as sanitation and waste management, as
well as in medical care facilities such as primary health centers and health professionals.
Economists generally agree that economic development and growth are influenced by
four factors: human resources, physical capital, natural resources and technology. Highly
developed countries have governments that focus on these areas.
Unemployment is affected by factors such as aggregate demand, global competition, education,
automation, and demographics. These factors can affect the number of workers, the duration
of unemployment, and wage rates.
Enabling factors denote variables which engender the use of health services and include family
income, proximity, availability, costs, motivational benefits, free health care, health insurance, and
third party influence.
Solution for the above problems are: Commented [BA1]:

 The solution for unemployment is, of course, to create new jobs. Usually, a healthy
economic growth rate of 2% to 3% is enough to create the 150,000 jobs needed to prevent
high unemployment.
 Reducing the caste discrimination.
 The engineer students can open their own units.
 The other people who wants to open their own business but couldn’t open due to any
reasons my suggestion is to somehow open their business, initially in every business there
is struggle.
 Improving infrastructure of the economy.
 Conducting awareness programme related to unemployment, health care, slow growth of
GDP etc.
 The organizations should increase their productivity which in return they require human
resources.
4. Explain in detail ( a pictorial description will be an added advantage )What is industrial
revolution? Liberalization ? How it affected the economy ?How has India changes after the
policies of 1991 ?Show us what has been the most significant developments since the
introduction of the policy.
Ans: The Industrial Revolution was a period of major industrialization and innovation that took
place during the late 1700s and early 1800s. The Industrial Revolution began in Great Britain
and quickly spread throughout the world.
The Industrial Revolution was characterized by a complex interplay of changes in
technology, society, medicine, economy, education, and culture in which multiple
technological innovations replaced human labor with mechanical work,
replaced vegetable sources like wood with mineral sources like coal and iron, freed
mechanical power from being tied to a fixed running water source, and supported the injection
of capitalist practices, methods, and principles into what had been an agrarian society.
Affects of Industrial Revolution:
The Industrial Revolution impacted the environment. The world saw a major increase in
population, which, along with an increase in living standards, led to the depletion of natural
resources. The use of chemicals and fuel in factories resulted in increased air and water
pollution and an increased use of fossil fuels.

Liberalization is the removal or reduction of restrictions or barriers on the free exchange of

goods between nations. These barriers include tariffs, such as duties and surcharges, and
nontariff barriers, such as licensing rules and quotas. Economists often view the easing or
eradication of these restrictions as steps to promote free trade.
Liberalization is a process whereby a state lifts restrictions on some private individual
activities. Liberalization occurs when something which used to be banned is no longer banned,
or when government regulations are relaxed. Economic liberalization is the reduction of state
involvement in the economy.

Affects of Liberalization:
 Liberalization has opened up the Indian economy to the foreign investors.
 It has also opened up the economy to the foreign companies who now have greater access
to the Indian markets.
 It has increased foreign trade.
  It has increased the job opportunities for the people.
 Free flow of capital.
 Stock market performance.
 Politically risk reduced.
There was a lowering of tariffs and import taxes, promotion of private investment, an overall
lowering of taxes, an increase in foreign investment and FDI, deregulation of markets, etc.
Liberalization has been responsible for the economic growth of the country after 1991.

The most significant developments since the introduction of the policy are:
 Government reduced the import duties.
 Reserve sector was opened for the private players.
 The Indian currency was devalued in order to increase the exports.
 There was a move towards higher economic growth rate and to build sufficient foreign
exchange reserves.
 Economic stabilization was achieved and the economy was converted into a market
economy by removing all the necessary restrictions.
 There was international flow of goods and services, capital, human resource and
technology without any restrictions.