Impact of government policy

Question

Clarify the impact of government policy?

Answer 1

The impact changes on the basis of business and industry of government policy are:-

a. Increasing Competition: The level of competition for Indian firms has been increased because of De-licencing and entry of foreign firms in Indian market.

b. More Demanding Customers: Now customers are more conscious, they keep maximum information of the market which result of which now market are buyer/customer oriented. Now products are manufactured by keeping in mind the demands of the customers.

c. Rapid Changing Technological Environment: Rapid Technological advancement has been improved/changed the manufacturing process by which as a results maximum production is possible at minimum cost but it leads to tough challenges in front of small firms.

d. Necessity for change: After the new policy of industries the market forces (demand & supply) are varying at a very fast rate. Changes in the numerous mechanisms of business environment has made it necessary for the corporate firms to adjust their policies and operations from time to time.

e. Need for Developing Human resources: The changing market environments of today require people with higher capability and greater assurance, hence the requirement for developing human resources arise, which would increase their efficiency and productivity.

f. Market orientation: The place is taken by the marketing concept but earlier selling concept was famous in the market. Today firms manufactures those goods and services that are required by the customers.

g. Reduction in budgetary Support to Public Sector: The budgetary support which is given by the government for the public sector is continuously reducing and thus the public sector have to survive and grow by utilising their own resources efficiently.