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• Outdated technology & unscientific management of the industries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
• Increase in FDI
• Rise in economic growth
• Efficiency of domestic firms increased
• Maximum use of resources
• Removed the obstacles
• Reduce tax rates
Negatives
• Increase unemployment
• Loss to domestic unit
• More dependence on foreign
country
• 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
• Reduction in economic burden
• Reduction in sense of irresponsibility
• Improve efficiency
• Shareholders pressure
• Reduction in Political Interference
• Encouragement of new Inventions
Disadvantages
• Monopoly
• Lack of social welfare
• Increase in inequality
• Increase in unemployment
• Lack of dividends
• 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
• Avoid profiteering
• Encourage healthy competition
• Ensure accuracy
• Pay taxes regularly
• Audit accounts
• Fair treatment to employees
• Keep investors informed
• Avoid discrimination
• No bribe
• Discourage secret agreement
• Service first
• Practice fair business
• Avoid monopoly
• Fulfill customer needs
• Respect consumer rights
• Accept social responsibilities
• Satisfy consumer wants
• 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