20Nov 2018 by Reese Bannister

The Importance of a Better Economic and Political Environment for Business

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…
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20Nov 2018 by Reese Bannister

What Is The First Thing You Need To Do Before Starting Exporting? – Answered!

Marketing
Before you start exporting, you have to do many things. The first and per­haps the most crucial step are to assess the export potential of your enterprise.You may ask yourself why you need to examine you export potential when you are already familiar with your domestic market. Succeeding in your local market is a necessity but not a sufficient condition for entering foreign markets. You should, therefore, begin with an internal audit of your export potential. ADVERTISEMENTS: What is export potential? It is the company’s ability to take advantage of its business opportunities abroad.Export potential is derived from a set of enterprise characteristics such as domestic marketing performance, resources and products. It is, therefore, measurable at the enterprise level. We shall suggest what internal charac­teristics make up a successful exporter.…
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20Nov 2018 by Reese Bannister

Difference Between the Small-Scale Industries and Cottage Industries

Industry
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…
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20Nov 2018 by Reese Bannister

Top 5 External and Internal Causes of Industrial Sickness

Industry
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…
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19Nov 2018 by Reese Bannister

Export performances of principal commodities in India during April to November in 1998

Accounting
Export performances of principal commodities in India during April to November in 1998 are listed below: 1. Plantations: Plantation crops primarily comprise tea and coffee. Exports of plantation crops increased during April to November, 1998 by 31.8% in rupee terms. Exports of coffee increased by 15.3% during this period to Rs 1,225 crores from 1,062 crores during the same period of last year.Exports of tea increased from Rs 971 crores during April to November, 1997 to Rs 1,454 crores during April to November, 1998 registering a positive growth of 49.7%. Image Source: s-media-cache-ak0.pinimg.com 2. Agriculture and allied products: This group comprises a wide variety of agricultural products covering cereals, pulses, tobacco, spices, nuts and seeds, oil meals, guar gum meals, castor oil, shellac, sugar and molasses, processed food, meat and…
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19Nov 2018 by Reese Bannister

Short Essay on Oligopoly Market

Industry
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…
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19Nov 2018 by Reese Bannister

The Role of Indian Government in Shaping Business Environment

Industry
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…
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19Nov 2018 by Reese Bannister

6 Important Factors that are Involved in Demand Forecasting

Industry
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 :…
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19Nov 2018 by Reese Bannister

12 Important Criticisms against Keynesian Theory of Unemployment

Industry
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…
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19Nov 2018 by Reese Bannister

Trade-Related Aspects of Intellectual Property Rights (TRIPS)– Essay

Marketing
The development of international trade can be adversely affected, if the standards adopted by countries to protect Intellectual Property Rights (IPRs) vary widely from one country to another.Furthermore, the ineffective enforcement of such rights can encourage trade in counterfeit and pirated goods, thereby damaging the legitimate commercial interests of manufacturers who hold or have acquired these Rights.The TRIPS Agreement, negotiated in the Uruguay Round, therefore lays down the minimum standards for the protection of OPRs as well as procedures and remedies for their enforcement. Image Source: blog.consultlane.com ADVERTISEMENTS: It establishes a mechanism for consolation and surveillance at the international level to ensure compliance with these standards by member countries at the national level.The obligations of the World Trade Organisation (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) came…
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