explain cause of industrial sickness
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Answer:
Some of the external causes of industrial sickness are:-
1. Recession in the Market 2. Decline in Market Demand for the Product 3. Excessive Competition in the Market 4. Erratic Supply of Inputs 5. Government Policy Unforeseen Circumstances 6. Shortage of Finances from the Banks 7. Frequent Industrial Strikes and Labour Unrest
8. Natural Calamities like Drought, Floods etc. 9. Increase in the Burden of Taxation such as Excise Duty, Sales-Tax, etc., without Corresponding Increase in Selling Price 10. Chronic Power Shortage 11. Transport Bottlenecks 12. Fiscal Duties 13. Market Saturation 14. Technological Obsolescence 15. Political Situation 16. War.
Some of the internal causes of industrial sickness are:-1. Faulty Planning 2. Incompetent Entrepreneurs 3. Problems Relating to Management 4. Financial Problems 5. Labour Unrest 6. Easy Approval Granted to Small Scale Industry 7. Lack of Experience 8. Lack of Management Skills 9. Lack of Financial Planning 10. Diversion of Funds
11. Implementation 12. Problem of Raw Materials 13. Marketing Problem 14. Lack of Skilled Manpower 15. Choice of Inappropriate Technology 16. Problem of under Utilisation of Capacity 17. Incompetence 18. Poor Marketing Skills 19. Mismanagement 20. Fraudulent Practices.