Question

Lately many companies have planned for significant investment inorganised retailing in India. Several factors have prompted theirdecisions in this regard.Customer income is rising. People have developed a taste forbetter quality products even though they may have to pay more.The aspiration levels have increased. The government has alsoliberalised its economic policies in this regard and permitted evencent percent foreign direct investment in some sectors of retailing.Questions1. Identify changes in business environment under differentheads — economic, social, technological, political andlegal that have facilitated the companies’ decisions to plansignificant investments in organised retailing.2. What has been the impact of these changes with regard toglobalisation and privatisation?

Answer 1

Answer:

An auto company C Ltd. is facing a problem of declining marketshare due to increased competition from other new and existingplayers in the market. Its competitors are introducing lower pricedmodels for mass consumers who are price sensitive. For qualityconscious consumers, the company is introducing new models withadded features and new technological