I taught business environment to MBA students and in business environment, when we study economic environment, at that time, we have to learn fiscal policy. In this video lecture, you will learn the basics of fiscal policy.
Economic reform means to change and adjustments in internal economic structure according to the external economic changes. Following are main economic reforms :
1. First phase economic reforms
There were many changes in international markets, organisations and production areas. India started to accept all these changes. First phase of economic reforms was started in 1985 when Rajiv Gandhi was the prime minister of India. He announced new economic policy for increasing productivity, new technology import and effective use of human resources.
2. Second phase of economic reforms
In 1991-92, govt. of narsimaharav started second phase of economic reforms for reducing fiscal deficit which was 10891 crores of rupees. Govt had to take loan of Rs. 5 billion dollars from IMF. For effective use of resources, govt. started to get foreign investment.
Before the process of reform began in 1991, the government attempted to close the Indian economy to the outside world. The Indian currency, the rupee, …
Economic planning is made for reducing economic risks. Under this planning, we can select best alternative for increasing the economic strength of company. Economic planning's other name is central planning and central economic planning.
In economic planning, we have to make plan regarding optimum use of our resources in producing of goods. We also have to make plan to produce optimum quantity of output. We can use economic planning at small level and at large level like investment decisions of Govt.
MNC uses economic planning for effective division of their resources in their different departments and branches. They also uses statistical techniques for calculating correlation of company's sale and other sale and one this basis, they make plan to increase sale.
We can introduce economic environment as all the factors which affect business due to changing the economic policies, economic system and economic conditions. In big companies, there may be large number of economist whose work is to make economic policies and economic planning. They control the prices of product of company. They also control the production level and try to best to reach it on optimum level. They monitor all external economic factors and to reduce company's economic weaknesses and risks.
Scanning means to check carefully. Environment means group of factors which affect business. Environment scanning means the process which is helpful to check and analyze all the factors which affect business. With this, we can find our risks and opportunities.
In environment scanning, we introduce small level plans and policies for analyzing the future.
Importance of Environment Scanning
1. Effective Utilization of Resources
For success of business, it is very necessary to effective use of its resources without any wasting. With environment scanning, we can find company's weak points and other risks. After this, company can make good plans and policies for removing all these weak points and other risks. After this, it is sure, company will succeed in his life.
2. Constant Monitoring of the Environment
For success, it is also necessary to monitor the environment. After constant monitoring of the environment, we can face the problems due to internal and external factors and solve i…
To remove conflict is major challenge for conflict management. First of all, concentrate all dealers on subordinate goals of company. If there is big confliction between company and dealers, then company can take some meeting with dealers and agree them by giving positive arguments.
* Diplomacy :- A person goes to dealer and resolve the confliction
* Mediation :- Solve problem by expert of third party.
* Arbitration :- Agreement between two party by giving argument and confliction by arbitrator.
Conflict management is the process to reduce the problems of channel of distribution by solving them effective ways.
Suppose company wants to achieve rapid market. In this case fix low price policy. But all dealers are seeing short run high profit. So, they are charging high profit margin and products are not sold easily by dealers. It will create confliction between dealers and company