a1. Discuss internal, domestic and global environments of business revealed by this case. 1.INTERNAL [ IOC ] -bureaucracy management.

-lack of commercial sensitivity. -lack of business sensibility. -compulsion to refer matters to the government. -lack of the business urgency. Etc 2.DOMESTIC ENVIRONMENT. -demand more than supply. -seventy % of the oil is imported. -monoply of the suppliers over the demand. -government control over the price And distribution. Etc etc

3.GLOBAL ENVIRONMENT -rising demand for the energy. -rising demand for the oil. -restricted supply situation. -price is partially controlled by OPEC. -price is partially manipulated by non-OPEC SUPPLIERS. -60% of supplies are longterm negotiated Price. -40% of supplies are spot buying price. Etc

2. Discuss whether it is the domestic or global environment that hinders the globalization of Indian business. 1.70% OF THE HINDERANCE IS DUE TO DOMESTIC ENVIRONMENT. -lack of effective policy. -lack of political stability. -lack of foresight in decision making. -lack of effective coordination between the government and the business. -lack of timeliness in action. Etc etc 3.30 % OF THE HINDERANCE IS DUE TO GLOBAL ENVIRONMENT. -overseas trade laws.. -dollar fluctuations in the open market. -arranging funds. -product movements restrictions. -technology transfers. Etc

3. Even if Elf had not acquired Premier Oil, what would have been the impact of the delay in the clearance on IOC? THE IMPACT OF THE DELAY WOULD BE 1.the showing of poor commercial image in the world business.

2.the 4 mill MT will now cost 672 mill dollars instead of the original offer of 308 mill dollars----loss of saving opportunity of 364 mill dollars.

4. What would have been the significance of the foreign acquisition to IOC? 1.ADDITIONAL FLOW OF 4 MILLION MT OF OIL. 2.LESS WORRIES ABOUT THE SUPPLY. 3.OIL PRICE CONTROL. 4.BETTER CONTROL OVER THE SUPPLY. 5. What are the lessons of this case? THE SPECIAL COMMITTEE REPRESENTED BY THE FINANCE/COMMERCE MINISTRIES AND RESERVE BANK SHOULD BE -EMPOWERED TO MAKE ALL DECISIONS. -TIME LIMIT SHOULD BE PLACED FOR DECISION MAKING. -OIL COMPANY SHOULD BE REPRESENTED IN THE COMMITTEE.