Start up and Entrepreneurship Management

Unit - 4
Assignment – 4 : Case Study
Name: Stephen A
SRN: PES3UG21BC184
Class: 3rd Semester, 'D' Section B'Com

1. What are the types of Sick companies identified?

Solution:
TYPES OF SICK COMPANIES
Depending on the situation, we may locate several sorts of sick firms here. They are listed
below.
1. Born Sick: Industrial Sickness is not always an attribute of the postpartum period. This
suggests that certain industrial initiatives are unhealthy from the start due to poorly thought
out plans, the incorrect industry idea, the wrong geographical decision, unskilled promoters, a
lengthy gestation time, unproductive capital assets, inadequate market research, the wrong
product selection, etc.
2. Become Sick: Some projects become ill for internal reasons. They are predicated on
certain conditions, such as poor management, bad intentional fund-diversion practises, poor
hiring practises, and flawed management rules are accountable for the disease.
3. Made Sick: Some industrial projects are not ill at birth or by nature; rather, illness is
pushed upon them by a variety of outside factors outside the administration of the
organisation. This might involve sudden adjustments to governmental policy, shifts in fashion
or technology, etc.
2. Which region has reported maximum no of sick industries?
Solution:
The overall number of sick industries increased in 2011 in Andhra Pradesh (11305),
Maharashtra (10,136), and likewise in 2013 (32,200). Maharashtra had a high outstanding
balance in small sick units in 2011 (876.84 cr ), Tamilnadu had one in 2012 (1439.24 cr ),
and Maharashtra had one in 2013. (2540.75 cr.). In 2011, there were 714 ill units in
Maharashtra, 1467 in Uttar Pradesh, and 1367 in Rajasthan (6824).
3. Why was the study conducted and what were the objectives?
Solution: Failure of corporate companies is a big issue for both developed and developing
nations worldwide. Due to increased competition and the shifting economic, political, social,
cultural, legal, and global environments, failures are rising daily. But the main problem arises
here is sickness of companies. It is a dangerous problem to the growth of the nation. The
major purpose of this study is to explore the reasons of sickness in industrial sector. This
paper may give accurate reasons behind the sickness of companies in India.
Objectives of the Study:
 To present the industrial sickness position in India.
 To illustrate the causes of industrial sickness in India.
 To suggest preventive measures for industrial sickness.

4. What are the reasons for sickness of industries?

Solution: There are various elements as a justification behind industrial sickness. It will be
feasible to forestall industrial sickness in the principal example, and if tragically, sickness
influences a few industrial units, a legitimate and address conclusion would help the approach
producers to handle the issue of industrial sickness effectively. Industrial units may end up
being sick because of different reasons. As per V.N Nadkarni, "… .a few industrial units are
born sick, some accomplish sickness and-some have sickness pushed onto them". Reasons for
industrial sickness are generally partitioned into two classifications. They are inside causes
and outside causes. The outer elements which start outside the unit and in this manner, are not
heavily influenced by the unit, for example, power cuts, request, downturn, sporadic
accessibility of information sources, government strategies, and so forth the inner elements
incorporate which begin inside the unit and can consequently be supposed to be heavily
influenced by the unit like creation, the board, promoting and finance.
5. What are the adverse effects of industrial sickness?
Solution: The Adverse effects of industrial sick are as follows:
 Effect on Banks and Financial Institutions
 Wastages of Scarce Resources
 Effect on Employment Opportunities
 Adverse Effect on Prospective Investors and Entrepreneurs
 Wastages of Scarce Resources
 Loss of Revenue to the Government
 Emergence of Industrial Unrest

6. What are the suggested preventive measures?

Solution: "Prevention is superior to Fix". This adage is appropriate if there should be an
occurrence of Sick companies. The organization should be very cautious when it shows any
sort of side effects in regards to sickness. The preventive measures are as per the following:
 Severe checking of sick companies is expected in each phase of its capabilities.
 Selections of Present day supplies, innovation, creation interaction and foundation
improvement are around the current unit. Satisfactory management input cost and embracing
economy of scale and sharp perception of new market patterns required.
 Presenting of legitimate work culture and morals with amazing skill and making
responsible to concern expert in the association is required in light of conditions
 Find creative techniques and changing examples of existing strategies before others do
 Attempt to be more reasonable about market interest of your item instead of relying on
research completely
 Attempt to keep up with own circulation place and cost seriousness with on time
conveyance of the items.
 Be an expert in development with regards to item and cycle. Item development implies
presenting new items or sending off of new items. Process advancement implies tracking
down better and more productive methods of delivering the current items.
 Centre a lot of around consolidate inventive plans to extend business instead of zeroing in
on reception of new innovation into business
 Treatment of workers issues in well-suited manner is one more significant component here.
Defence of compensation structure, compensation organization and enrolment of
exceptionally prepared faculty is required.
 Fitting monetary administration framework is expected to fill the hole of working capital
and deny its illegal application
 Ideal assembly of assets with appropriate monetary preparation and profit circulation
strategy required.
 R and D exercises are fundamental piece of any association however the consumption
ought to be taken care of.
 Sufficient framework is expected for appropriate check, balance and ideal enhancement.
 For advancing the companies and its items the administration ought to take on promoting
strategies and advertising techniques with the assistance of sound, video and print media and
so on.
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