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Business In India

Overview of Indian Economy During


Independence
• Outdated technology & unscientific management of the industries
• Poor transport & communication facilities
• Lack of adequate educational & health care institutions
• Poverty
• Unemployment
• Low GDP
• PCI
• Low standard of living
Stages & Development of Business in India
• Mixed economy
• Industrialization
• The planning commission of india & year plan
• Public sector enterprises
• Licensing system
• Nationalization of banks -14 banks - 1969
• Nationalization of insurance companies – Jan 19,1956
• NEP
• Technological process
Role of Public Sector
• Balanced regional development
• R&D
• Employment
• Social welfare
• Capital formation
• Infrastructure development
• Export promotion & import substitution
• Contribution to government
Role of Private Sector

• Improved Standard of living


• Easy availability of goods
• Better value for human capital
• Employment generation
• Service sector development
• Innovation
• Better education
• Trading
• Infrastructure
Role Cooperative Sector

Economic Role
• Provide financial assistance
• Fulfills the needs of the members
• Increase saving habits Social & Political Role
• Employment opportunities
Liberalization
• Increase national & PCI
• Make nation self-sufficient
• Eradicate the problem of unemployment
• Eradicate the problem of poverty
• Improve standard of living & achieve BED
• Reduce the exploitation of people & resources
Benefits

Positives Negatives
• Increase in FDI • Increase unemployment
• Rise in economic growth
• Loss to domestic unit
• Efficiency of domestic firms increased
• Maximum use of resources • More dependence on foreign
country
• Removed the obstacles
• Reduce tax rates • Unbalanced development
Privatization
Objectives of Privatization
• To increase efficiency & competitive power of the enterprises
• To strengthen industrial management.
• To earn more & more Foreign currency.
• To make optimum use of resources
• To achieve rapid industrial development of the country.
Privatization

Advantages Disadvantages
• Reduction in economic burden • Monopoly
• Reduction in sense of irresponsibility • Lack of social welfare
• Improve efficiency • Increase in inequality
• Shareholders pressure • Increase in unemployment
• Reduction in Political Interference • Lack of dividends
• Encouragement of new Inventions • Exploitation of weaker section
Globalization

Advantages Disadvantages
• Increase in trade • Affect farmers
• More flexibility • Inequality
• Employment • Financial stability
• FDI • Trade deficit
• Increased competition • Affects small firms
Assignment
• Outsourcing
• Advantages
• Disadvantages
Business Ethics
Features of BE
• Code of Conduct
• Based on moral values
• Protection to social groups
• Provides basic framework
• Voluntary
• Need education & guidance
• Relative term
Need, Importance or Advantages
Factors Influencing Business Ethics
• Legal system
• Codes of conduct
• Organizational culture
• Religion
• Vision, mission & values
• Ethical leadership
• Competition
• Political system
Principles or Rules of BE
• Avoid exploitation of consumers • No bribe
• Avoid profiteering • Discourage secret agreement

• Encourage healthy competition • Service first


• Practice fair business
• Ensure accuracy
• Avoid monopoly
• Pay taxes regularly • Fulfill customer needs
• Audit accounts • Respect consumer rights
• Fair treatment to employees • Accept social responsibilities
• Keep investors informed • Satisfy consumer wants
• Avoid discrimination • Service motive
• Utilization of resources
Woodrow Wilson Rules
• Rule of publicity
• Rule of equivalent price
• Rule of conscience in business
• Rule of spirit of service
Social Responsibility of Business
Principles of SR
• Honoring the rights
• Sustainability
• Integrity
• Fairness
• Co-operation
• Charity
• Safety
Need or Benefits SCR
• Boon to society
• Improves employee performance
• Long term investment
• Public image
• Moral responsibility
• Sustained growth
• Satisfaction
• Environment friendly
Responsibility Towards Interest Groups
• Owners
• Investors
• Government
• Creditors
• Employees
• Suppliers
• Customers and competitors
Arguments for & against SR
Business Research
• Systematic investigation into and study of materials and sources in order to
establish facts and reach new conclusions

• A close and careful study


Objectives
Importance
• Gather information
• To make changes
• Improving standard living
• For a safer life
• To understand the truth
• Decision making
• Understanding the past events
• Applicable for business
Types of Research
• Financial
• Consumer
• Product
• Industry
• Competitive
Elements
• Is board
• Formal
• Informal
• Research is replicable
• Scientific enquiry
Types of Reserach
• Pure Research
• Applied Research
• Exploratory
• Descriptive
• Empirical
• Analytical
Research Process

• Formulating the Research Problem


• Literature Survey
• Developing Hypothesis
• Preparing Research Design
• Selecting sample design’
• Collecting data
• Analysis of data
• Hypothesis testing
• Interpretation
• Preparation of Report
Research Report
Qualities of Good Report
• Clarity
• Continuity
• Consistency
• Brevity
• Readability
• Interest and Appeal
• Judicious selection of material
• Avoiding personal opinion
• Focus on central ideas
• Proper references
Types of Report

• Oral
• Written
• Technical
• Popular
• Interim
• Summary
Parts or Components of RR
1. Primary section
Tittle Page
Declaration
Certificate of the Guide
Acknowledgement
Content
List of Abbreviations
List of Tables of Diagrams
Parts or Components of RR
2. Main Text
• Introduction
• Methodology
• Findings
• Conclusion
3. End Matter