Académique Documents
Professionnel Documents
Culture Documents
1 The External Analysis examines opportunities and threats that exist in the
environment. How is it done? What should business managers do to access the business
environment?
One part of the SWOT analysis, involves managers identifying the business' opportunities
and threats. In other words, managers are to conduct an external analysis. The manager's
starting point will be to analyse the industry that the business operates in. There are various
factors within the industry that may pose as opportunities or threats to your business are:
The bargaining power of buyers: If your buyers have the power to bargain prices or
demand higher quality products and services, this will pose a threat to your business
and it will result in a decrease in profits. However, if buyers have little power, this
may present some opportunities for your business.
may lead to your business losing some of its market share, which will
result in a loss of profit. Therefore, new entrants pose a threat to your
business. On the other hand, if there is a minimal risk of new entrants into
the market, this may present your business with new opportunities.
What kind of framework can assist the management in understanding the business
environment complex answers often lie in their simplicity of approach. Here are 3 steps that
can help:
1. Understand where your company is: Really understand. Taking complete stock of a
companys current situation as regard to product innovation, customer buying
patterns, PR branding, what are you selling and what you can sell.
2. Compare the company with the leader in the business: A critical comparison with
the market leader will bring out the areas where most attention needs to be paid,
because most often, the leading business has read the business environment right.
3.
Engage with stakeholders: Constant dialogue with all stakeholders will lead to
understanding the companys niche and positioning in the competitive market.
6. Neutrality of Money
7. Equal Income Distribution
These are the general objectives which every central bank of a nation tries to attain by
employing certain tools (Instruments) of a monetary policy. In India, the RBI has always
aimed at the controlled expansion of bank credit and money supply, with special attention to
the seasonal needs of a credit.
3 What is a mixed economy? Discuss the merits and demerits of mixed economy.
Mixed Economy is neither pure capitalism nor pure socialism but a mixture of the two
system. In this system we find characteristics of both capitalism and socialism. Mixed
economy is operated by both, private enterprise and public enterprise.
That is private enterprise is not permitted to function freely and controlled through price
mechanism. On the other side, the government intervenes to control and regulate private
enterprise in several ways. It has been realised that a free functioning of private enterprise
results in several types of problems.
According to J. W Grove, One of the presuppositions of a mixed economy is that private
firms are less free to control major decisions about production and consumption than they
would be under capitalist- free enterprise, and that public industry is free from government
restrains than it would be under centrally directed socialist enterprise.
Merits of Mixed Economy:
(1) Best Allocation of Resources:
Since a mixed economy incorporates the good features of both capitalism and socialism, the
resources of the economy are utilised in the best possible manner. The price mechanism, the
profit motive, and the freedoms of consumption, production, and occupation lead to the
efficient allocation of resources within the economy.
(2) General Balance:
A mixed economy maintains a general balance between the public sector and the private
sector. There is competition as well as cooperation between the two sectors which are
conducive for achieving a high rate of capital accumulation and economic growth
(3) Welfare State:
A mixed economy contains all the features of a welfare state. There is no exploitation either
by the capitalists as under a free enterprise economy or by the state as under a socialist
economy. The workers are not forced to work, Workers are provided monetary incentives in
the form of bonus and cash rewards for inventions.
Globalization has drastically, improved the access to technology. Internet facility has enabled
India to gain access to knowledge and services from around the world. Use of Mobile
telephone has revolution used communication with other countries.
2. Growth of international trade:
Tariff barriers have been removed which has resulted in the growth of trade among nations.
Global trade has been facilitated by GATT, WTO etc.
The term liberalization in this context implies economic liberalization. Economic
liberalization constitutes one of the basic elements of the new Economic policy (NEP)
which the Indian Government launched in the middle of the year 1991.
Effects of liberalization are:
-Promotes competition, which leads to lower costs and prices for consumers
In the event of globalization privatisation has become an order of the day. Privatisation can
be defined as the transfer of ownership and control of public sector units to private
individuals or companies. It has become inevitable as a result of structural adjustment
programmes imposed by IMF.
The effects of privatization include:
-better quality products
-lower priced products
-more efficient firms which have lower costs
-makes costs lower for other firms who use the product the privatized firm produces
-this increases employment and incomes across the economy
-Government no longer needs to subsidize product
-Government makes revenue from asset sale to spend on health, education etc
-Promotes technological advancement, again creating jobs and growing incomes
challenges as well as advantages is its growing young population. India targets creation of
500 million skilled workers in 2022.
The need to train fresh graduates in new skills and ensure that they remain employable is
important since the US$ 118 billion Indian information technology (IT) industry added about
180,000 new employees in 2013-2014, 70 per cent of which were fresh hires, according to
Nasscom.
Indias IT firms are working with academic institutions and setting up in-house institutes to
groom the right talent as these companies move to social media, mobility, analytics and cloud
(SMAC) technologies. Tech Mahindras infrastructure management services academy set up
in 2014 has inked partnerships with five universities to hire students trained on a codeveloped curriculum and also various government initiatives are being adopted to boost the
growth of distance education market, besides focussing on new education techniques, such as
E-learning and M-learning.