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THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT Economic Enviornment of Business -Re-Examination Assignment
Paper Code: IIPM/003/EEB004 Max. Marks: 100 General Instructions: The Student should submit this assignment in his/her own handwritten (not in the typed format). The Student should submit this assignment within 2 days from the issue of the assignment. The student should attach this assignment paper with the answered papers. Write legibly and keep the length of the answer as per the weightage (in terms of marks) assigned to each question. DO NOT be unduly short or long in providing the relevant details. The student should only use the Rule sheet papers for answering the questions. Failure to comply with the above instructions would lead to rejection of assignment. Specific Instructions: There are Four Questions in this assignment. The student should answer all the questions along with their subparts. Marks are being assigned to each section of the question as well. Each Question carries equal marks (25 marks) unless specified explicitly. Question 1(A)[15Marks] Consider the following changes: The RBI decides to raise the repo rate because of which lending rates go up. Govt. decides to reduce the excise duty on cars with max length of 1.8 meters. The monsoon has been very good in 2011 The Govt. refuses to change laws which favor permanent labour. The Govt. decides to spend a huge amount of money on road network in the 12th Plan. What will be the impact of each of these factors on Maruti Suzuki? Explain logically. How should the company deal with each of these issues? Question -1(B)[10 Marks] Has Indian business benefitted by the process of LPG (liberalization, privatization, and globalization)? If yes, how? If no, why not? Explain with concrete examples. Question-2(A)[15Marks] What is Mesoenvironment? Explain forces of mesoenvirobnment for the following industries (i)FMCG.

(ii)Hotel industry (iii)Telecom industry (iv)Automobile industry

Question -2(B)[10Marks] Analyze the Airtel company with the help of five forces porter Model Question-3(A)[10Marks] Do you think Liberalization and MNCs are playing the key role in the transforming of india . if yes , explain it with the help of suitable evidences? Question-3(B)[15 Marks] Explain the following with the help of suitable examples (i)Technological Environment (ii)Micro factors of business environment (iii)Effects of inflation (iv)Government responsibility on business (v)Foreign Direct Investment Question 4 (A)[15Marks] Now answer the following questions carefully.. (i)Describe how natural environment influences functioning of a firm? (ii) Bring out the impact of privatization on economy. (iii) Critically analyze the New Industrial Policy, 1991. Question 4 (B) [10Marks] (i)Why the government should interfere in business activities?

3 (ii) Apply the Five force model of Porter to analyze the competitive strength of Coke and Maruti Suzuki. (iii) Why is social responsibility important for business? How should it deal with the issue of CSR? .ALL THE BEST