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Showing posts from September, 2010

Video Lecture on Fiscal Policy

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.

New Industrial Policy

New industrial policy was applied on 24th July 1991. There were many amendments in this industrial policy. New industrial policy is very different from old industrial policy.

Objectives of New Industrial Policy

1. Main objective of new industrial policy is to free industrial economy from unnecessary control of Indian administrators.

2. To reduce the weak points of different industries in India.

3. To start liberalization for connecting Indian Industries to foreign industries.

4. To remove the restrictions on direct foreign investment.

5. To remove the restrictions of MRTP act on domestic trades.

6. To try best to increase employment in industries.

7. To increase competitiveness in international trade.

8. To make the provision for increasing the profit of public organisations.

9. To 100% use of domestic resources of India.

10. To do more research for effective use of internal resources.

Economic Reforms

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, …

Introduction to Economic Planning

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.

Introduction to Economic Environment

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.

Introduction to Environment Scanning

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…

Introduction to Business Environment

Business environment may be defined as the set of external and internal factors which affects the decisions of business. We can divide business environment into two parts

A. The Micro Environment of Business

These are powers which are deeply related with company and company can control these type of environment by improving its capacity and efficiency.

1. Suppliers

Suppliers are the persons who supply raw material to company.

2. Customers

Customers are the persons who buy goods from company.

3. Market Intermediaries

Market intermediaries are those person who helps company to sell its products.

4. Financial Intermediaries

Financial intermediaries are those institutions who provide loan, credit and advance to company.

5. Competitors

Competitors are those who also sell same product of company.

6. Public

Public is those group of people who can buy or who can show their interest to buy the products of company.

B. The Macro Environment of Business

Macro environment of business means all exte…

How to Do Conflict Management

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

Conflict management is the process to reduce the problems of channel of distribution by solving them effective ways.

Main conflicts

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

Channel Management

Definition of Channel Management

Channel management means to select good middlemen and distribute the goods through them at cost effective.

Function of Channel Management

1. Selecting channel members

Before selecting good middlemen, check intermediary's experience and past reputation.

2. Training channel members

To train channel for proper work

3. Motivate channel members

4. Evaluate channel

Types of Marketing Channels

A. Conventional Channel or Non- Integrated Channel

1. Manufacturer to Consumer

In this channel there is no intermediary. Manufacturer makes the goods and directly distributes to consumers.

2. Manufacturer to Retailer to Consumer

Retailer is the intermediary between manufacturer and consumer. He purchases goods from manufacturer and sells to consumer.

3. Manufacturer to Wholesaler to Retailer to Consumer

In this channel, there are two option, one is wholesaler and other is retailer. Wholesaler buys large scale and sells to retailer and the retailer sells to consumer.

4. Manufacturer to Wholesaler to Consumer

Consumer can buy easily and directly from wholesaler. So, in this channel there is only one intermediary and he is wholesaler.

5. Manufacturer to agent to wholesaler to retailer to consumer

B.  Integrated Channel or Non conventional channels

Integrated channel are modern channel for distribution of goods. These channel can be divided into two parts.

1. Vertical Channel

Vertical chann…