International Business Environment (MB 223)

Test -2

Submitted by- Submitted by-Dr. Vinod Negi Nancy Bramta 2012PGMB062 MBA 2nd year (4th sem)

(Part-I) Q.No.1) Visit the market place, post offices, banks and other places of your locality and make note of the changes that have taken place due the change in Information Technology.ANS) THE CHANGES IN COMPUTER, INFORMATION AND COMMUNICATION TECHNOLOGY ARE INFLUENCING ALL ASPECTS OF THE BUSINESS WORLD, FROM MARKETING AND NETWORKING TO RESEARCH AND DEVELOPMENT. UNDERSTANDING AND UTILIZING THE ADVANCEMENTS IN THE TECHNOLOGY INDUSTRY ARE VITAL FOR ANY BUSINESS OWNER, WORKER, OR INVESTOR IF THEY WANT TO CONTINUE GROWING THEIR BUSINESS AND ATTRACTING NEW CUSTOMERS AND CLIENTS.

CHANGES- Computer has been installed everywhere in banks, post offices, and market places Data is stored and maintained in pc’s Work is done fast and accurately. Time consumption for doing work is less.

Accessibility

Advancements in mobile technology allow employers and employees to communicate in newer, faster ways. Laptops, tablet computers and mobile devices like PDAs keep workers constantly connected, raising networking to another level. Companies have access to their clients and customers on-line and vice versa, increasing the frequency and speed of communication, and making companies more available to their customers.

Application

By utilizing the connectivity offered by changes in technology, businesses can easily keep customers and clients up-to-date with the latest information and news. They can also use this access to conduct faster research on what clients are looking for, leading to more rapid business development. Many businesses are already using social networking tools like Facebook, Twitter and LinkedIn to stay in constant contact with their customers and learn more about how they can better their company

Benefits

Speed is key in both the world of business and technology. Companies are constantly developing their products and services in the hopes of reaching their desired audience first. The changes in all forms of technology today allow workers to communicate with one another and customers from all around the world quickly and easily. Advancements in communication technology in particular opens up more job opportunities, as many companies are allowing their workers to be more mobile, and a potential employee may not need to live in a certain place in order to qualify for a job. It also allows smaller businesses to compete with big business, helping them find customers outside of their neighborhood.

Potential

Technological advancements are already having a large impact on business marketing, as most companies have recognized the value of having an updated website and other on-line resources. As changes in technology allow the Internet to become more interactive, businesses will have the opportunity to interact more directly with their fellow employees, their competition and their customers. This change could help the business world become more transparent, leading to growth and development that will benefit workers and anyone who needs the services they provide.

Expert Insight

Changes in technology and their effect on the business world can be viewed from a few different perspectives. According to a study conducted by the Center for Information Systems Research at the Massachusetts Institute of Technology, three distinct perspectives include trying to improve a business or company, trying to surpass the success of competitive companies and trying to decide whether or not to join a specific business or industry.

Q.No.2) Prepare a report:Find out the raw materials being available in abundance in your area. How many industries or business units are set up based on it?

Ans) Sawra Kuddu Hydro Electric Project (111 MW) on River Pabbar in Jubbal district Shimla achieved yet another mile stone today by completing 4118.178 meter Tunnel Excavation work. The total length of Tunnel excavated so far has gone upto 10313 meter. Out of total length of 12293 meter, length of 1980 meter still remains to be excavated. The project is scheduled to be commissioned in the year 2013.The Pabbar river is in Yamuna basin in Northern region originating from Gangdari Dhar in Great Himalayan ranges in Shimla District of Himachal Pradesh. Sawra Kuddu Hydroelectric Project is a run of the river development on the Pabbar River in Rohru & Jubbal Tehsils, at a distance of 130 kms from Shimla. Hydel Potential of Yamuna basin in Himachal Pradesh has been identified as 1044.82 MW. Giri (60 MW), Andhra (16.95 MW) and Gumma (3.00 MW) are already in operation. Proposed Sawra Kuddu HEP (110 MW) development utilizes the water of Pabbar river. Shalvi (7 MW) and Renuka Dam (40 MW) are also the proposed Hydroelectric Projects of Yamuna basin which is likely to be taken up for execution in future. The MOU’s for the implementation of Tangnu-Romai (44 MW), Paudital Lassa (36 MW), and Sainj (5.50 MW) have already been signed with the various

IPPs by the H.P. Government. HPSEB has created a Special Purpose Vehicle, namely, Pabbar Valley Power Corporation for execution of Hydroelectric Projects in Pabbar Valley. It has been allotted Sawra Kuddu Hydroelectric Project (110 MW) and Chirgaon Majhgaon Hydroelectric Project (46 MW). Dhamwari Sunda Hydroelectric Project (70 MW) has also been allotted to Pabbar Valley Power Corporation (PVPC) subject to decision of the arbitration case for cancellation of Implementation Agreement with IPP. Chirgaon-Majhgaon Hydroelectric Project being a tailrace development of Dhamwari Sunda Hydroelectric Project (70 MW) can only be constructed once arbitration case for Dhamwari Sunda is decided. Thus, PVPC has taken up construction of Sawra Kuddu Hydroelectric Project.

Q.No.3) Role Play: Satish belongs to a rural area. Once he had gone to the nearest town. He saw there a very big and well maintained park. Inside the park he read a small board - ‘This Park is maintained by KCS Ltd’. He tried to recall where did he read this name before? He remembered that the charitable hospital of his village was also run by KCS Ltd. He was filled with curiosity. He decided to find out more about all this. One day he met his friend’s father.Mr. K. Mohan.Satish: Good Morning Uncle.K. Mohan: Good Morning Satish? How are you?Satish: Very fine! How about you?K. Mohan: Great! What brings you here son?Satish: Uncle, if I remember rightly you are in a company called KCS Ltd, right? K. Mohan: You are right. I am working as General Manager (Administration). But why?Satish: Uncle! Today when I went to the park, I observed that the company KCS Ltd. maintains the park and so also the charitable hospital in my village. Well, why should a company divert its attention from its regular activities and indulge in an activity which only increases its expense?K. Mohan: Well, all these are taken up by the company as a part of it responsibility towards the community, and it is called Social Responsibility of a company.Satish: Social Responsibility? What is that?(Mr. K. Mohan explained to Satish about the concept of social responsibility of business.)

Now, you are required to continue the conversation by assuming a role for yourself and one for your friend.

Ans) Me- Social responsibility is an ethical theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. A trade-off may exist between economic development, in the

material sense, and the welfare of the society and environment. Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whose any action impacts the environment. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

Friend- why social responsibility of business important?

Me- A good business is also a good citizen. As well as making a profit by supplying products or services that people want to buy, it can be a positive influence on the rest of society, including - in the case of multinationals - local communities spread across the globe. An enlightened business recognizes that it is in its own interests to be socially responsible, since an enhanced public image is more likely to be attractive to investors, employees, customers, consumers, suppliers and host governments.

Friend- Need of social responsibility?

Me- Solving social problems. Resource given by the organization to solve social problems Improve public image of firm. Assist to government to solve social, economic and political problems of country. Pressure of consumer movement-to protect consumer against malpractices like

adulteration, black marketing, unfair pricing, shortage in weight and measures. Pressure of trade union-relation between management and trade union

Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance if a company follows the United States Environmental Protection Agency (EPA) guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. “A significant element of current thinking about privacy, however, stresses "self-regulation" rather than market or government mechanisms for protecting personal information”. According to some experts, most rules and regulations are formed due to public outcry, which threatens profit maximization and therefore the well-being of the shareholder, and that if there is not outcry there often will be limited regulation.

Critics argue that Corporate social responsibility (CSR) distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful corporations though there is no

systematic evidence to support these criticisms. A significant number of studies have shown no negative influence on shareholder results from CSR but rather a slightly negative correlation with improved shareholder returns.