question_answer

Sanjay has just completed his MBA. His father is a businessman. He suggests Sanjay also to do his own business. But he claims that starting and operating a business his age was different from now. These days there is stiff competition and consumer is the king in the market. Many other aspects of business have also changed. His father claims that things have changed but they had different kind of challenges like too many government intervention and paper formalities, lack of technology, non-availability of infrastructural facilities etc. But running a business was a challenge and still is a challenge.

(a) In the light of above discussion, which era do you think Sanjay and his father belonging to?

(b) How has business environment changed in these two eras?

Answer:

Ans.     (a) Sanjay's father would have operated before 1991 and Sanjay would be operating in the era of Liberalization, globalization and privatization.

(b) Before 1991, major challenges for a business were as follows:

(i) Lack of infrastructure facilities

(ii)Too many government rules and regulations

(iii) Lack of technology

After 1991, challenges are:

(i) Too much competition

(ii) Rapidly changing technology

(iii) Frequent changes in technology

(iv)Exceptionally demanding consumers