Please solve this case study with explanation ....
Q7. Recently many companies have planned for significant investment in organised retailing in India. Various factors which have encouraged companies to take these decisions are customer income is increasing, rise in standard of living of people. People are ready to pay high price for quality goods, government policy of liberalisation regarding MNC entry and FDI , etc.
(a) Explain briefly changes in business environment under different heads that have facilitated the companies' decision to plane significant investment in retailing.
(b) What has been the impact of these changes with regards to globalisation and privatisation?
Dear Student,
(a)INCREASE IN THE INCOME OF CONSUMERS: There is an increase in the income of consumers due to various reasons that have lead to the increase in the demand of high quality goods . Now consumer demands luxury goods and more technological advanced goods ,this lead to significant investment in retailing sector.
(b) SOCIAL TASTE OF CUSTOMERS ARE ALSO CHANGING: Social taste of consumers are also changing . As he is getting more exposure to outside worlds his tastes are changing.
(c)TECHNOLOGICAL ADVANCEMENT:Technological advancements have led to advanced ways of counting,checking which are convenient for the customer and also retailer
(d)POLITICAL GOVERNMENT: Political government policies are encouraging developers to go for mass construction in retailing industry.
IMPACT OF THESE CHANGES WITH REGARDS OF GLOBALISATION AND PRIVATISATION:
Due to globalisation people have more exposure of various goods and have developed a taste of various goods so Indian organisations also tend to have their significant share in retailing business.
Due to globalisation and privatisation new technologies are also coming along with the foreign investors and this also led the increase in competition in the market.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards
(a)INCREASE IN THE INCOME OF CONSUMERS: There is an increase in the income of consumers due to various reasons that have lead to the increase in the demand of high quality goods . Now consumer demands luxury goods and more technological advanced goods ,this lead to significant investment in retailing sector.
(b) SOCIAL TASTE OF CUSTOMERS ARE ALSO CHANGING: Social taste of consumers are also changing . As he is getting more exposure to outside worlds his tastes are changing.
(c)TECHNOLOGICAL ADVANCEMENT:Technological advancements have led to advanced ways of counting,checking which are convenient for the customer and also retailer
(d)POLITICAL GOVERNMENT: Political government policies are encouraging developers to go for mass construction in retailing industry.
IMPACT OF THESE CHANGES WITH REGARDS OF GLOBALISATION AND PRIVATISATION:
Due to globalisation people have more exposure of various goods and have developed a taste of various goods so Indian organisations also tend to have their significant share in retailing business.
Due to globalisation and privatisation new technologies are also coming along with the foreign investors and this also led the increase in competition in the market.
Hope this information will clear your doubts on this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
Regards