Impact of Government policy changes on business and industry
(i) Increasing Competition: As a result of liberalisation, privatisation and globalisation number of players increased in all sectors and increased competition for everyone.
(ii) More Demanding Customers: Increased competition in the market gives the customer wider choices in purchasing better quality of goods and services, which makes them more demanding.
(iii) Rapidly Changing Technological Environment: New technologies help to improve machines, process products and services. The rapidly changing technological environment creates tough challenges before smaller firms.
(iv) Necessity for Change: After 1991, the market forces have become turbulent as a result of which the enterprises have to continuously modifying their operations.
(v) Need for Developing Human Resource: The new market conditions require people with higher competence and greater commitment. Hence, the need for developing human resources emerged.
(vi) Market Orientation: Earlier, production was taken up first and then selling was done. Now, due to increasing competition and more demanding customers firms have to study and analyse the market first and produce goods accordingly.
(vii) Loss of Budgetary Support to the Public Sector: Public sector have less of budgetary support from the Central Government. Now, they have to generate their own resources and be more efficient in order to survive and grow.
