Category: Industry

A business manager lives, moves and operates in an environment and does not function in a vacuum. The success or failure of a manager depends upon a number of factors which may not be always within his control. A manager who takes decision cannot neglect the importance of his environment. Economic Environment Environment refers to the sum total of all factors— economic, political, social and cultural—which are external to and beyond the control of the individual business enterprises and their management.Environment furnishes the macro- contexts, while the business firm is the micro-unit. The environmental factors are ‘given’ within which the firm operates. Image Source: abc.net.au ADVERTISEMENTS: The environmental factors are numerous and complex. Some of these factors are static while others are dynamic.The environmental factors generally vary from country to…

The differences between the small-scale and cottage industries are basically two:(a) While small-scale industries are mainly located in urban centres as separate establishments, the cottage industries are generally associated with agriculture and provide subsidiary employment in rural areas and(b) While small-scale industries produce goods with mechanised equipment employing outside labour, the cottage industries involve operations mostly by hand which are carried on primarily with the help of the members of the family. ADVERTISEMENTS: The Fiscal Commission (1949) also made a distinction between small-scale and cottage industries in this manner:A cottage industry is one which is carried on wholly or primarily with the help of members of the family either, as a whole or part- time occupation. Image Source: cdn.shareyouressays.comA small-scale industry, on the other hand, is one which is operated…

External Causes: 1. Power Cuts: A large number of industrial units, particularly in West Bengal and Bihar, face power cuts from time to time. Power cuts are necessitated by the fact that generation of power is much below its actual requirements. Image Source: i.vimeocdn.com 2. Erratic Supply of Inputs: Lack of regular supply of raw materials and other inputs disturb the production schedule causing losses to the unit. This is particularly the case of units depending upon the supply of imported inputs. Also transport bottlenecks sometimes affect the supply of inputs. 3. Recession: General recessionary trends in the market adversely affect the demand for most of the goods resulting in unsold stocks and losses to individual units. Products with high prices like cars, tractors, VCR etc. depend for their sustained…

An important case of imperfect competition is that of oligopoly. While monopolistic competition is more frequently found than pure competition in modern industry, however, it is not the typical market form. Oligopoly is the typical market form, many of the markets being oligopolistic.A large proportion of output in a modern industrial economy is accounted for by industries where all or most of the output is produced by a small number of large firms.Here, competition is much less impersonal than in monopolistic competition because the number of producers is fewer. If any firm cuts its price, the other firms will know who the price cutter was. Image Source: financialtribune.com ADVERTISEMENTS: Each firm, therefore, has to watch closely what its competitors are doing because any action by one of the competitors is…

Government is a very powerful institution which can create a favourable business environment. We can study its role under the following heads: Role 1. Government: Regulator of Business: The entire regulatory legislations and policies stand covered under this segment. On the one hand, there is a very large indirect area of government control over the functioning of private sector business through budgetary and monetary policies.But against this there is also a fast expanding area of direct administrative or physical controls through which the government seeks to ensure that private investment and production in industry and the use of scarce resources conform to government’s basic socio-economic objectives. Image Source: frozenfoodeurope.com ADVERTISEMENTS: They have become necessary tools in a system which seeks to avoid total nationalisation of resources.Government’s regulatory functions with regard…

Important factors that are involved in demand forecasting: Factors (i) Period of forecasting: Demand forecasting may be short-term or long-term. A short-term demand may cover a period of three months, six months or one year but not exceeding one year and long forecasting covers a period exceeding 5 years.A business should forecast short term as well as long term sales/demand for its products to have a clear view of business activities. ADVERTISEMENTS: An alternative method may be to associate the long term and short term forecasting with certain types of decisions.Thus, short term forecast is one which provides information for day to day operations within the limits of resources currently available. Whereas long term forecasting is more concerned with decisions extending or reducing the units of resources. Image Source :…

Criticism 1. Does not provide comprehensive solution of unemployment: Keynes theory does provide solution of all types of unemployment. It deals with only cyclical unemployment.Keynes did not attempt to solve frictional, technological unemployment and chronic unemployment of under-developed countries.Keynes did not elaborate how to secure fair employment. A complete theory should explain how to get both full and fair employment. Image Source : peacechild.org 2. Unrealistic assumption of perfect competition: In real business world imperfect competition is found instead of perfect competition even in capitalist economics. Therefore, it is not applicable in advanced economies. 3. No determinate functional relationship between effective demand and employment: Critics point out that there cannot be a definite functional relationship between ED and employment. Keynes did not provide any evidence of this functional relationship.There is…

The National Tourist Organisation (NTO) is the body responsible for the formulation and implementation of national tourist policy. It is the proper agency and instrument for the execution of the national government’s responsibilities for the control, direction and promotion of tourism.All countries which are engaged in tourism have a national tourism organisation which plays a leading role in both the formulation and the implementation of the government’s tourism programme.This organisation is also responsible for coordinating the different activities of all the bodies interested in tourism development. The national tourist organisation may be a full- fledged ministry, a directorate general, a department, corporation or board. ADVERTISEMENTS: There is, however, no set formula as to what constitutes the most satisfactory constitutional arrangement for the national tourism body. Tourism ranks as a full…

This Act has been brought into force from November, 1986. Its salient features are:(a) Conferring powers on the Central Government to:(i) Take all necessary measures for protecting quality of environment, ADVERTISEMENTS: (ii) Co-ordinate actions of States, officers and other authorities under this Act,(iii) Plan and execute a nationwide programme for prevention, control and abatement of environmental pollution,(iv) Lay down standards for discharge of environmental pollutants, Image Source: fresenius-kabi.com ADVERTISEMENTS: (v) Empower any person to enter, inspect, take samples and test,(vi) Establish or recognise environmental laboratories,(vii) Appoint or recognise government analysts, (viii) lay down standards for quality of environment,(ix) Restrict areas in which any industries, operations or processes may not be carried out subject to certain safeguards, ADVERTISEMENTS: (x) Lay down safeguards for prevention of accidents and take remedial measures in…

Under Section 22 of the Chartered Accountants Act, 1949, professional misconduct has been defined as, ” For the purpose of this Act, the expression ‘professional misconduct’ shall be deemed to include any act of omission specified in any of the Schedules, but nothing in this section shall be construed to limit or abridge in any way the power conferred or duty cast on the Council under sub-section (i) of section 21 to enquire into the conduct of any member of the Institute under any other circumstances.” Clause – 1: ADVERTISEMENTS: “If he allows any person to practice in his name as a Chartered Accountant unless such person is also a chartered accountant in practice and is in partnership with or employed by himself.” According to this clause, no member of…