BE module 5-1

8/7/2019 BE module 5-1

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BUSINESS ENVIRONMENT

MODULE -5

8/7/2019 BE module 5-1


OVERVIEW

Pubic Sector Enterprises.

-Evolution of PSU¶s

-types of PSU¶s

-objectives

-growth & development of PSU¶s

-role played by PSU¶s in developingour economy .

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Continued«..

LPG model

Globalisation.

-definition-step towards globalisation

-Impact of globalisation

Privatisation.-ways of privatisation

Liberalisation.

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Industrial policy-1956 &1991

WTO

-objectives

-Functions

IPR

TR IPS TR IMS

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PUBLIC SECTOR ENTERPRISES

means«

Owned managed & controlled by theGovt.

Funded by Govt Welfare oriented

Also known as Public sector

Unit/undertaking

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EVOLUTION OF PSU¶s

In 1951(1st five year plan)

Number of cpsu¶s were only 5 with

an investment of Rs.2

90 mln only.

In 1992 (8th five year plan)

Number of cpsu¶s were 246 with aninvestment of Rs.1354 mln.

In 2009(11nth five year plan) Number of cpsu¶s 244 with

investment of Rs.4211mln.

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Types of PSU¶s

Statutory corporation createdthrough acts of parliament. (HPCL,

BPCL) Department enterprises (railways)

Govt Co¶s

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OBJECTIVES

Accelarating the pace of economicdevelopment.

Helps in creating necessaryinfrastructure for economicdvelopment.

Earns return on investment and

thus generate resources fordevelopment.

Create employment opportunities.

Assist the development of small

scale and ancilliary industries.

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Gr owth and development of PSU¶s

Important role in theindustrialisation and economicdevelopment of the country.

The industrial policy resolution 1956 enlarged the role of public sector

Major part of PS investment was in

the steel,coal,minerals andmetals,power andpetroleum,telecommunications.

Predominance of investment in

crucial sectors.

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Centr al level

Number of operatingpsu¶s

213

Profit making psu¶s 158

Loss making psu¶s 54

No profit no loss 1

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Per for mance of psu¶s

investment 2009 2008 growth

Total paidup

capital

138843 cr. 131232cr 5.80%

Totalinvestment

(equity + longterm loan)

528951 cr. 455367 16.16

%

Capitalemployed

794105 cr 724406 cr 9.62%

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Role played by PSE¶s in developing our

economy

Share in National Income

Commanding heights of the

economy Pse¶s and employment

Export earnings

Balanced regional development Resource mobilisation

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LPG model

New economic reform popularlyknown as liberalisation.

privatisation, globalisation. Aimed at making indian economy as

the fast growing economy andglobally competitive

Undertaken with respect toindustrial sector,trade,fianancialsector

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Globalisation

Internationalism

Entire world as a single market so

that corporate strategy is based onthe dynamics of the global businessenvironment

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definition

IMF defines ³globalisation as thegrowing economic interdependence

of countries world wide throughincreasing volume and variety of cross border transactions in goodsand services and of international

capital flows and also through themore rapid and wide spreaddiffusion of technology.´

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Step towar ds globalisation

Devaluation.

Disinvestment.

Foreign direct investment.

Abolition of the MRTP act.

Removal of quantitative restrictions onimport.

Reduction of peak custom tariffs. Wide range financial sector reforms in the

banking,capital market and insurance.

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Impact of globalisation

Positive impact

People relied more on the market

economy International organizations playing

a vital role in the development of developing countries.

It brought varied opportunities fordeveloping countries.

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It gave a fillip for better access tothe developed markets.

Technology transfer promised betterproductivity and thus improvedstandard of living.

Free flow of information, ideas,

technologies, goods, services, andpeople.

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Negative impacts

They also thrown open varied challenges.

In equality across and within differentnations.

Volatility in financial market

Worsening in the environmentalsituations.

Majority of third world countries stayedaway from the entire limelight.

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Pr ivatisation

Transfer of ownership and ormanagement of an enterprise from

the public sector to the privatesector.

Achieves better results in terms of cost and quality of service.

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Ways of pr ivatistion

Disinvestment

Franchising

Contracting

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Liber alisation

In India during the period 1985-90,attempt were made to give

autonomy to the public sector byremoving policy constraints.

Narasimha Rao govt. took over inJune 91 and initiated the

liberalisation process.

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Means and includes mainly..

Dismantling of industrial licensingsystem built over the previous 4

decades.

Reduction in physical restrictions onimports, reduction also in the rateof import duties.

Reduction in controls on foreignexchange.

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Industr ial policy

The term refers to the govt¶s policytowards industries, their

establishment, functioning, growthand management.

Industrial development of a countrywill be shaped, guided regulated

and controlled by its industrialpolicy.

Indutrial policy resolution-Govt of india issued in April 6 1948.

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Industr ial policy 1948

Some common features

Acceptance of the dual sector.

Division of industries Small and cottage industries.

Role of foreign capital.

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Adoption of constitution

Planning began to be implemented

Socialist policy was accepted.

Govt was rich enough to invest inpublic sector

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24th july 1991-Narasimha rao govt

Mainly economic liberalisation.

Initiative steps in related areas like Industrial licensing

Foreign investment

Foreign technology agreements

Public sector policy

MRTP act

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WTO

HQ-Geneva

Embodiment of the Uruguay round

results and the successor to theGATT

Officially commenced on jan 1 1995replacing GATT which is commenced

in 1948

Organisation that intends tosupervise and liberalise

international trade.

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objectives

To ensure the reduction in tariffs&other barriers in trade

Eliminate discretionary treatment ininternational trade.

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Functions

Administering and implementing themultilateral and plurilateral trade

agreements which together makeup the WTO

Acting as a forum for multilateraltrade negotiation

Seeking to resove tradenegotiations

Monitor national trade policies

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Co-operating with otherinternational institutions invoved in

global policy making Member driven organization.

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IPR-INTELLECTUAL PROPERTY

RIGHT

Protection of IPR has become anissue on Uruguay round.

Information with commercial value. Legally protected by patents,

copyrights, industrial designs,geographical indications and

trademarks.

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TRIPS-TRADE RELATED

INTELLECTUAL PROPERTY RIGHTS

WTO agreement on trade relatedaspects of IPR.

Recognizes protection andenforcement of IPR.

Covers 7 categories:

Patents, copyrights and related

rights, trademarks, industrialdesigns, geographical indications,layout designs, trade secrets.

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TRIMS-TRADE RELATED

INVESTMENT MEASURES

Certain conditions or restrictionsimposed by a govt in respect of

foreign investment in the country.

Widely employed by developingcountries.

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Requir ements

Local current requirements.

Trade balancing requirements.

Domestic sales requirements.

BE module 5-1

Documents

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