Metlapp Networks and Technologies Ltd. is a leader in technology innov

1.	Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of market abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India. It set up its office in Jamnager with a view, to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers. (a) In the above paragraph two major concepts related to government policy have been discussed. Identify and explain these concepts. (b) Also, explain briefly any three impacts of these concepts on Indian business and industry.
Answer» (b) Impact of change in policy of the government on business and industry: (i) Increase in competitions: As a results of changes in the rules of industrial licensing, entry of foreign firms have increased especially in service industries like telecommunications, airlines, banking, insurance, etc. Which were reserved for PSU earlier sector. (ii) More Demanding Customers: Customers today have become more demanding because they are well informed. Increasing competitions in the market gives the customers wider choice in purchasing better quality of goods and services at cheaper rates. (iii) Rapidly for Changing Technological Environment: Increasing competitions forced the firms to develop new ways to survive and grow in the market. The rapidly changing technological environment creates tough challenges before smaller firms. (iv) Necessity for Change: In a regulated environment of pre-1991 era, the firms could have relatively stable policies and practice. After 1991, the market forces have become turbulent, as a result of which, the enterprise have to continuously modify their operations. (v) Need for Development of Human Resource: Indian enterprises lacked availability of trained technical personnel always. New market conditions require people with higher competence and greater commitment. (vi) Market Orientations: Earlier firms used to decide production not the demand of products. In a fast changing world, there is a shift of market orientation as much as the firms have to study and analyse the market first and then produce goods accordingly. (vii) Loss of Budgetary Support to the Public Sector: The central government's budgetary support for financing the public sector outlays has declined over the years. The public sector undertakings have realised that, in order to survive and grow, they will have to be more efficient and generate their own resources for survival.

Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of market abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India. It set up its office in Jamnager with a view, to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers. (a) In the above paragraph two major concepts related to government policy have been discussed. Identify and explain these concepts. (b) Also, explain briefly any three impacts of these concepts on Indian business and industry.

Answer»

(b) Impact of change in policy of the government on business and industry:

(i) Increase in competitions: As a results of changes in the rules of industrial licensing, entry of foreign firms have increased especially in service industries like telecommunications, airlines, banking, insurance, etc. Which were reserved for PSU earlier sector.

(ii) More Demanding Customers: Customers today have become more demanding because they are well informed. Increasing competitions in the market gives the customers wider choice in purchasing better quality of goods and services at cheaper rates.

(iii) Rapidly for Changing Technological Environment: Increasing competitions forced the firms to develop new ways to survive and grow in the market. The rapidly changing technological environment creates tough challenges before smaller firms.

(iv) Necessity for Change: In a regulated environment of pre-1991 era, the firms could have relatively stable policies and practice. After 1991, the market forces have become turbulent, as a result of which, the enterprise have to continuously modify their operations.

(v) Need for Development of Human Resource: Indian enterprises lacked availability of trained technical personnel always. New market conditions require people with higher competence and greater commitment.

(vi) Market Orientations: Earlier firms used to decide production not the demand of products. In a fast changing world, there is a shift of market orientation as much as the firms have to study and analyse the market first and then produce goods accordingly.

(vii) Loss of Budgetary Support to the Public Sector: The central government's budgetary support for financing the public sector outlays has declined over the years. The public sector undertakings have realised that, in order to survive and grow, they will have to be more efficient and generate their own resources for survival.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment