Study materials of Management student

1. BUSINESS ENVIRONMENT
UNIT 4
ROLE OF GOVERNMENT
Dr. Kanchan Kumari
Faculty of International Business & Marketing

2. ROLE OF GOVERNMENT IN
REGULATION
 In mixed economy, private sector constitutes a largest sector of
economy.
 The role of government in the mixed economy is grouped into 2
categories. Regulatory roles and promotional or development roles.
 The Government contributes to providing political guidance and
exercising the executive function and regulatory powers.
 The Government provides significant economic policy guidance
through its budget bill and related acts.

3. REGULATORY ROLES
 REGULATORY ROLES: The Government plays a regulatory role in business
by setting and enforcing standards for fair competition and protecting
consumers from fraudulent or deceptive business practices.
 The Government also provides opportunities for businesses to compete for
contracts.
 The main aim of the regulatory measures by the government is to ensure
compliance with law, standard and guidelines design to protect public
safety, health, the environment and overall well being.
 Examples of government regulations are financial regulations, taxes, and
environmental protection regulations. Financial regulations explain the
policies that influence the operation of the financial industry applied to
banks, credit unions, insurance companies, etc.

4. PROMOTIONAL ROLE
 Government can also act as an entrepreneur by providing tax incentives, grants,
and other forms of assistance to businesses.
 This can help spur innovation and investment in certain sectors. Furthermore, the
Government can provide access to business financing, such as small business loans
or venture capital investments.
 Promotion helps increase the visibility of a business among its target audience.
It creates awareness about the products or services offered, making potential
customers more familiar for the brand.
 Governments establish many policies that guide businesses. The government can
make changes in fiscal policy which leads to changes in taxes, trade, subsidies,
regulations, interest rates, licencing and more. Businesses should be flexible
enough to respond to changing rules and policies

5. DEVELOPMENT OF BUSINESS
 business development is a process aimed at growing a company and
making it more successful. That can include seeking new business
opportunities, building and sustaining connections with existing clients,
entering strategic partnerships, and devising other plans to boost
profits and market share.
 The business development role uses many business skills, including
strategic planning, project management, and successful negotiation.

6. BUSINESS DEVELOPMENT STRATEGY
1. Craft an elevator pitch. You need a concise 30-second pitch for any
plan, including a BD plan. ...
2. List your SMART goals. ...
3. Perform a SWOT analysis. ...
4. Define your audience. ...
5. Conduct market research. ...
6. State your KPIs. ...
7. Plan a budget. ...
8. Focus on strong customer service.

7. MONETARY POLICY
 Monetary policy is a set of actions to control a nation's overall money
supply and achieve economic growth. Monetary policy strategies
include revising interest rates and changing bank reserve requirements.
Monetary policy is commonly classified as either expansionary or
contractionary.
 for example, buys or borrows Treasury bills from commercial banks, the
central bank will add cash to the accounts, called reserves, that banks
are required keep with it. That expands the money supply.

8. FISCAL POLICY
 Fiscal Policy in India is the cornerstone of its economic strategy, which
steers the country through various phases of growth, development, and
challenges. It plays crucial role in shaping the nation's development
trajectory, influencing its macroeconomic stability, and addressing socio-
economic challenges
 Fiscal is used to describe something that relates to government money or
public money, especially taxes. ... last year, when the government tightened
fiscal policy. Synonyms: financial, money, economic, monetary More
Synonyms of fiscal.
 Example: If the economy is growing too rapidly, the central bank can
implement a tight monetary policy by raising interest rates and removing
money from circulation. Fiscal policy, on the other hand, determines the
way in which the central government earns money through taxation and
how it spends money.

9. EXIM POLICY
 The EXIM (Export-Import) Policy contains guidelines governing the
imports and exports of products and services in and out of India. EXIM
Policy's primary objective is to regulate and develop foreign trade by
facilitating imports into and exports from India.
 The policy intends to promote exports through an increase in
competitiveness of Indian products in the global market and thus
generate increases in employment, which, in turn, would result in
poverty alleviation and generate prosperity for the lower rungs of the
Indian economy.

10. FEMA
(FEDERAL EMERGENCY MANAGEMENT
AGENCY)
 Foreign Exchange Management Act, 1999 (FEMA) came into force by an act
of Parliament. It was enacted on 29 December 1999.
 The primary objective of FEMA is to facilitate external trade and payments,
promote the orderly development and functioning of the foreign exchange
market, and ensure the proper utilization of foreign exchange resources in
the country.
 These regulations seek to regulate acquisition and transfer of a foreign
security by a person resident in India i.e. investment by Indian entities in
overseas joint ventures and wholly owned subsidiaries as also investment
by a person resident in India in shares and securities issued outside India.

11. START-UPS
• A startup is a company that's in the initial stages of business.
• Founders normally finance their startups and may attempt to attract
outside investment before they get off the ground.
• Funding sources include family and friends, venture capitalists,
crowdfunding, and loans.
• Startups must also consider where they'll do business and their legal
structure.
• Startups come with high risk as failure is very possible but they can also
be very unique places to work with great benefits, a focus on
innovation, and great opportunities to learn.

12. SKILL DEVELOPMENT
 Skills Development refers to the process of acquiring, improving,
and enhancing a wide range of skills and competencies. It involves
the deliberate and continuous effort to build knowledge, expertise, and
capabilities in specific areas to meet the demands of one's work or to
pursue personal and professional growth.
 When done right, skills development can reduce un- and
underemployment, increase productivity, and improve standards
of living. Investing in upskilling or reskilling people for jobs of the
future makes economic sense.

13. THRUST ON MAKE IN INDIA
 Meaning:
Create 100 million additional jobs in the manufacturing sector by 2022. Increase in the
manufacturing sector's share in the GDP to 25% by 2022. Creating required skill sets
among the urban poor and the rural migrants to foster inclusive growth.
 Pillars:
The 4 pillars of Make in India initiative are New Mindset, New Sectors, New
Infrastructure, and New Processes. Hence, the Make in India initiative not only aims to
boost the manufacturing sector but also other sectors.
 Objectives:
Raise in manufacturing sector growth to 12-14% per year.
Create 100 million additional jobs in the manufacturing sector by 2022. Increase in the
manufacturing sector's share in the GDP to 25% by 2022.

14. THANK YOU
Prof (Dr.) Kanchan Kumari