UNIT IV
Socio-Cultural Environment in India
The socio-cultural environment includes social customs, values, codes of conduct, beliefs, traditions and more. All businesses are affected by the socio-cultural environment. Therefore, it is imperative to investigate the environment and develop strategies accordingly. People's education level, values and attitudes, work ethic, and family structure define the socio-cultural environment. Social practices, beliefs, and related factors help promote a particular product, service, or idea. Marketing success depends heavily on success in terms of changes in social attitudes and values.
Business failures and dissatisfaction with many corporate functions have led to a global recognition of the need for an appropriate system for corporate governance. Corporate governance refers to the process of balancing an organization, stakeholder interests in achieving its goals, and social goals. The governance framework is to encourage and promote the efficient and effective use of scarce resources, as well as to demand accountability and transparency for the management of those resources. The motivation is to protect the interests of individuals, businesses and society. An operating company functions and acts to achieve social benefits along with the traditional economic benefits that the operating company is interested in. The concept of social responsibility is based on the idea that a company functions in society and uses the physical and human resources of society to do business, and has an obligation to serve society. The concept of social responsibility is also based on the idea that what a company does for society is good for the company itself in the long run.
Culture is a very important part of any business. You need to have a good understanding of the cultural aspects of making important business decisions. According to E.B., Tyler states, "Civilization culture is a complex whole, including knowledge, beliefs, art, morals, law, customs, and other abilities, as well as customs acquired by humans as members of society."
The customs, traditions, values, beliefs, customs, behaviours, poverty, literacy, etc. that exist in the population are in a socio-cultural environment. The social values and structures that society respects have a great impact on the functioning of a company. For example, at Diwali, the demand for new clothes, sweets, fruits and flowers is very high. The increased literacy rate has made consumers more aware of the quality of their products. In addition, consumerism has increased significantly. All of these factors have significantly increased the demand for different types of household items. People of different social structures and cultures have very different consumption patterns, clothes and lifestyles. This leads to the generation of demand for different types of products.
Individual behaviour and attitudes, and their relationships, determine the socio-cultural environment. Factors responsible for creating a sociocultural environment include social beliefs, values, norms and traditions. These factors determine how individuals and organizations relate to each other. These factors have a significant impact on your business. For example, the demand for goods and services is heavily influenced by factors such as customer habits, values, norms and preferences.
The important socio-cultural factors that have a significant impact on business operations are as follows.
Salient features of Indian Culture and Values and their Implications for Industrialization and Economic growth:
Many things can be included while explaining the distinctive features of Indian culture. However, it is true that India is a fusion of ideas and ideologies. It is a very vast and diverse culture full of knowledge, devotion, emotions and emotions. It is the broad mind of Indian culture that it absorbed all of their characteristic features without any hesitation exposed from various other cultures and shaped them in a unique way.
India did not believe in aggression or war to spread its culture, religion, ideology, or anything else. It treated all living things with the same equality and compassion of Indian culture:
1. Life and continuity.
2. Unification in diversity.
3. Tolerance.
4. Fusion of spirituality and materialism.
Value of Indian culture:
In recent years, many scholars and specialists engaged in the study of cultural values have emerged in China. As a result, a significant number of treatises and works have been published that analyze the value of Chinese and Western culture. However, few people deal with Indian cultural values, say those who systematically and comprehensively explain Indian culture and its values and conduct comparative studies on them in international cultural studies. Not even. So, as far as I know, I would like to explore this topic for advice from experts and colleagues.
Knowledge of cultural values determines the patterns, factors, and characteristics of a particular value in many aspects, including politics, morality, religion, nation, equality, justice, truth, goodness, and beauty. However, it can still be generalized to three main aspects. As the former Soviet Union scholar Tugarenov wrote in his book "On the Values of Life and Culture," all cultural values are material, social and political, and spiritual. It can be divided into two categories. The next paragraph uses these three criteria to advance the study of the value of Indian culture.
Material value:
The material value that Indian culture emphasizes is the complete dedication / dedication of human beings. The enjoyment of material values is part of India's cultural values, but it is only part of it, and it does not represent the ultimate goal of India's cultural values, the realization of the full dedication of human beings. you cannot. Most Indians raised by traditional Indian culture are less interested in possession and enjoyment of material values. Therefore, there is a strong national spirit of helping those who are suffering and those who are at risk. In India and other countries, it is not surprising that wealthy people, even very wealthy people, are handing over their property for social welfare.
Social and political value:
In order for the social and political values of Indian culture to reach the ultimate stage of unity with Brahman Atman, humans use the eternal laws of the universe to normalize and harmonize their actions. It means that you need to be intended to create an environment. On the one hand, India attaches some importance to practical interests and desires. On the one hand, more importantly, not for personal pursuit or interest, but for the prosperity of society and the well-being of posterity, everyone endures in his life and takes on the obligations of his family and his country. We will spare no effort to promote that.People must obey and obey the law. We will comply with the social rules and morals stipulated by eternal law. It is not just a civil law, it covers all meanings of human mission and justice, relationships, society and so on. order. Therefore, India's traditional cultural values can only create a harmonious environment in which his actions are truly in line with social and political values, only by selfless devotion to society. I strongly emphasize what you can do. Mental values
The ultimate goal pursued by the spiritual values of Indian culture is to achieve Brahman-Artman unity, the only way for ultimate salvation. India is a religious country. As early as the Vedic period, Indians had a strong belief that some kind of personality existed after death. It was thought to be the primitive human soul. This belief evolved into the idea of heaven at the end of this era. In Atharvaveda, it was said that the souls of the dead could live in heaven, on earth, in the air, but heaven is the most ideal place. In Rigveda, it was believed that those eligible to enter heaven were the trained Sadhu, but some soldiers who died on the battlefield and believers who did not hesitate to sacrifice their property to Brahmin. I was able to enter heaven.
Later, the concept of "karma" began to appear in Atharvaveda. It argued that humans must take responsibility for both good and evil karma on their own, and that evil acts must be punished accordingly. Based on this concept, the round of death and rebirth began. The bad guys have to be punished either by being sent to hell or by being transferred to humble things like pigs, dogs and mud, but those who do good will be rewarded by paradise. The Upanishad era, when issues such as punishment and reward deadlines, souls and salvation were developed and clarified emergence of the Upanishads had some positive implications because the text was based on the three main guiding principles of Brahmanism. It was the result of the efforts of some Brahmin scholars who were eager to seek advanced ideas for interpreting the ultimate meaning of the "forest treatise" that is part of the Vedas. These treatises contained philosophical ideas and were therefore also called Vedanta philosophies. After it was completed, Vedanta philosophy argued that Brahman was dominant in heaven, earth and air.
It's invisible and undisclosed, but it appears anytime, anywhere. The material world and everything in it was just an illusion. The individual soul was essentially one with Brahman. This was the idea of "Brahma Artman's identity". Therefore, Hinduism regards the self-actualization of Brahman Atman's identity as the highest goal of reaching salvation. However, because of "karma", one cannot experience and recognize Atman. "Under the influence of karma, Atman cannot return to Brahman after death and identify with it, so humans must either suffer a round of death and rebirth or be reborn as birds, beasts, bugs, and fish." For that matter, Indians consider life a pain and to find a way to reach the identity of salvation and Brahma Artman so that they can "escape" from the suffering of the round of death and rebirth. I think I have to work hard. To achieve this goal, a new path was proposed for the classic Hindu work Bhagavad Gita. They were the path of action, the path of dedication, and the path of knowledge-way of action. Believers must adhere to moral norms and devote themselves to the gods. Because behavior comes from freedom, Hinduism encourages people to participate in all kinds of labor practices, love their work, and concentrate on their work. This is quite different from Buddhist salvation by quitting work to eliminate the cause of "karma."
The way of wisdom:
The Way of Wisdom is very popular among Indians today. For most intellectuals, they feel the urgency to unknowingly acquire knowledge and open the door to wisdom not only to find favorable living and working conditions, but also to approach and identify with God.
The way of dedication:
If Hindus love God and submit to extreme piety, this is also a way to reach salvation in the favor of God. Taking good care of God, doing everything for him, and reading His name quietly every minute is an effective way to equate him. Nonviolent thinking in Indian cultural values.
Nonviolence is a goal that Indian cultural values are trying to achieve and states. According to Vedanta's philosophy, everything in the world is self-derived and should be friendly and equally disposed of by others. People should be kind and love each other because all true qualities are sacred and have true, good and beautiful moral behavior. In addition, the spirit of friendliness and love should extend to beasts and birds, flowers and plants. Therefore, killing is prohibited.
Key takeaways:
There is no doubt that technology has reshaped the consumer and retail industry. Mobile technology and social media allow customers to shop wherever they want, when and how they want. They have access to make comparisons, read reviews, and influence product and service ratings. This unprecedented consumer power means that those who accept it can thrive, and those who ignore these changes are at risk of failure.
Beyond technology, the global market has shifted. New demand for consumer goods is being driven by emerging markets, but developed markets are lagging behind. Asia is expected to overtake Western Europe as a major consumer market. Global competition for resources can also create shortages and supply chain volatility affecting the consumer goods industry. Techedge has helped consumer goods clients understand the power of these markets and the context of business processes and technologies that can lead to outstanding solutions.
Significant technology turmoil, changing global demand trends, and expected workforce and supply chain fluctuations all represent a continuous and fundamental transformation of the industry. Understanding industry trends, along with processes, systems, and technologies that can form the right solution, is just the starting point. The approach and thinking of a solution partner can be a decisive factor in achieving breakthrough results. Consumer Goods Trends and Ideas
CPG companies are suffering from digital turmoil as the boundaries between manufacturers, retailers and consumers are blurred. Online and mobile sales are growing at a remarkable rate. Emerging markets will soon add a billion consumers and a new wealthy middle class. Digital and mobile channels overcome the millions of physical stores needed to serve these new consumers. Next-generation solutions address this challenging environment through the following features:
Restructure corporate organizations and processes in line with consumer and market fragmentation, rather than channels and geographies.
Showrooming and the web with vertical and horizontal multi-channel options, leveraging seamless customer experience across channels (horizontal) as well as profitable cross-channel hopping along the purchasing process (vertical) Identify the proper balance of rooming.
The product range expands as the constraints set by physical space continue to decrease. The assortment of long tail products is becoming increasingly important for building attractive consumer relationships in the shopping experience.
Context-based marketing that enables mass customization (eg, individual pricing and promotion based on customer behavior and external factors) and facilitates a co-creative approach (eg, product customization for individual features).
Theory of Consumerism:
It is most often associated with the Western world, but it applies to far more economic systems around the world, not just the West. Consumerism began to rise significantly after the Industrial Revolution when commodities were manufactured in large quantities, at lower prices, and delivered to the masses.
Consumerism has its advantages:
However, consumerism also has its drawbacks.
What is consumerism?
Consumerism is the idea that increasing the consumption of goods and services purchased in the market is always a desirable goal, and human well-being and well-being basically depends on the acquisition of consumer goods and physical possessions. is. In an economic sense, it is primarily related to the Keynesian belief that consumer spending is a major driver of the economy and that encouraging consumers to spend is a major policy goal. From this perspective, consumerism is a positive phenomenon that promotes economic growth.
Understand consumerism:
In general, consumerism refers to the tendency of people in a capitalist economy to engage in an excessive materialistic lifestyle that revolves around reflexive, wasteful, or significant overconsumption. In this sense, consumerism is widely understood to contribute to the destruction of traditional values and lifestyles, the exploitation of consumers by large corporations, the deterioration of the environment, and the negative psychological consequences. For example, Thorstein Veblen was a 19th century economist and sociologist. He is known for his book "Conspicuous Consumption" (1899), where he coined the term "conspicuous consumption". Conspicuous consumption is a means of demonstrating one's social status, especially if publicly exhibited goods or services are too expensive for other members of the same class. This type of consumption is usually associated with the wealthy, but it also applies to all economic classes. After the Great Depression, consumerism was largely ridiculed. However, with the US economy kickstarted by World War II and post-war prosperity, the use of this term in the mid-20th century began to have positive implications. During this time, consumerism emphasized the benefits that capitalism must provide in terms of economic policies that prioritize improved living standards and consumer interests. These predominantly nostalgic meanings have since been out of common use.
The influence of consumerism
According to Caines' macroeconomics, boosting consumer spending through fiscal and monetary policy is a major goal of economic policy makers. Private consumption accounts for the majority of aggregate demand and gross domestic product (GDP), so increasing personal consumption is considered the most effective way to drive the economy to growth.
Consumerism sees consumers as the subject of economic policy and the dollar box of the corporate sector with the sole belief that increased consumption will benefit the economy. Savings can even be considered detrimental to the economy, as they sacrifice immediate consumer spending.
Consumerism also helps shape some business practices. Planned obsolescence of consumer goods can replace competition among producers to make more durable products. Marketing and advertising can become more focused on creating consumer demand for new products rather than informing them.
Economist Thorstein Veblen has developed the concept of conspicuous consumption, in which consumers buy, own, and use products as a way of demonstrating their social and economic status, not for direct value in use.
As living standards improved after the Industrial Revolution, consumption increased significantly. A high percentage of conspicuous consumption can result in wasted zero-sum or negative-sum activity. The actual resources are not worth their use, but rather are exhausted to produce the images they portray.
In the form of conspicuous consumption, consumerism can impose enormous real costs on the economy. Consuming real resources in a zero-sum or negative-sum competition for social status can offset the benefits of commerce in the modern industrial economy and lead to disruptive creation in the consumer and other commodities markets.
Key takeaways:
Development of Business Entrepreneurship in India
Self-made individuals who take financial risks when starting a business for profit entrepreneur. Today, India has witnessed the success of many start-ups amid the economic downturn. Stories from Flipkart, OYO, Ola Cabs, BookMyShow, Nykaa, Big Basket, Swiggy to and more Please list some. However, not all self-employed people can call themselves entrepreneurs. The Growth and potential economic impact really define the entrepreneurial business. “Start-ups have emerged as a driving force for the growth of our economy. Entrepreneurship has always been.
It was India's strength. Even today, young men and women are giving up on more environmentally friendly meadows other places that contribute to India's growth. They are at risk and destructive solutions to difficult challenges. We recognize knowledge, skills and risk-taking ability of our youth. He is no longer a job seeker. He is (a) the creator of work. Now we hope to create more opportunities and remove obstacles from his path. "Nirmala Sitharaman, Minister of Finance of India
In recent years, entrepreneurs have faced countless obstacles in their business environment. Extreme harassment from tax officials was a budgetary issue. "Our government wants to reassure taxpayers that we are committed to continuing to take action our citizens are free from any kind of harassment. – Nirmala Sitharaman.
The purpose of entrepreneurship:
Despite the challenge, entrepreneurs decide to leap forward and endanger everything to make it bigger. There are several markets to enter. Learn at the Institute for Outstanding Entrepreneurship Development. This is the first step in understanding the complex world of entrepreneurs. Fore school of New Delhi management offers an entrepreneurial development MDP program.
For understanding various markets. Local markets, street markets, shopping centers:
Social Responsibility of Business:
Corporate social responsibility means the obligation of a business owner to protect the interests of society.
According to the concept of social responsibility, management's purpose in making business decisions is not only to maximize profits and shareholder value, but also to other members of society, such as workers, consumers and the entire community. It is also about serving and protecting the interests.
Thus, the Sachar Commission on Enterprises and MRTP Law appointed by the Government of India said: In today's corporate economic development environment, the corporate sector is no longer functioning in isolation. If a company accepts a claim that it serves its social purpose, it can only be determined by testing its social response to the needs of society. "
It should be noted that some Indian sociologists and economists associate Gandhi's concept of trust with the idea of business social responsibility. According to Mahatma Gandhi, the capitalist class owns wealth and capital as the trustees of society. According to him, the resources and capital they use to produce goods and services should be used for the greater benefit of society, not for maximizing their interests.
But in our view, it is too ideal to expect a company to be purely guided by the benefits it gives to society through its activities. The concept of social responsibility used in business science is that a company needs to maximize profits, provided that it works in a socially responsible way to promote it.
Their business activities should not harm other groups such as consumers, workers and the general public. Narayana, Chairman of N.R. Infosys, made the concept of corporate social responsibility very clear when he said at a corporate social responsibility conference: Workers, consumers, communities, governments, and the environment he points out further. "
Working in harmony with the communities and environment around us and not deceiving our customers and workers may not yield anything in the short term, but in the long term it will bring greater profits and shareholder value.
Social Responsibility for Business and Social Contracts:
As is clear from the above, corporate social responsibility means that the company must serve the interests of non-general shareholders. We need to maximize profitability, value, or wealth, as well as general shareholders.
But in today's world, we need to protect and promote the interests of other stakeholders, communities and the environment. Corporate social responsibility to various stakeholders and society in general is believed to be the result of social responsibility. Corporate responsibility to stakeholders and society in general contracts.
Corporate Responsibility for Stakeholders and Society in General
A social contract is a set of rules that define an agreed interrelationship between various elements of society. Social contracts often include a quid pro quo (that is, one given in exchange for another). In a social contract, one party to the contract gives something and expects certain things and behavior patterns from the other.
In the current context, social contracts relate to relationships between companies and various stakeholders such as shareholders, employees, consumers, governments, and society in general. Companies happen to have resources because societies of different stakeholders give this right, and therefore expect companies to use them to serve the interests of all stakeholders. I am.
All stakeholders, including society, are affected by the business activities of the company, but management may not accept responsibility for them. Corporate social responsibility means that business owners must promote the interests of all stakeholders, not just the shareholders who own the company.
1. Responsibility to shareholders:
In the context of good corporate governance, businesses need to recognize shareholder rights and protect their interests. We must respect shareholders' right to information and respect their right to submit proposals for voting and asking questions at the Annual General Meeting of Shareholders.
Companies must adhere to the best code of conduct when dealing with shareholders. But the company's board and management
To increase profits and shareholder value, but in pursuit of this goal, they need to protect the interests of employees, consumers and other stakeholders. Its special responsibility is that it must not pollute the environment in its efforts to increase profits and shareholder value.
2. Responsibility to employees:
The success of a company depends heavily on the morale of its employees. Employees make a valuable contribution to the activities of the company. Companies need to have fair and equitable employment practices and labor relations in order to be productive. We must recognize the freedom of association and the rights of workers or employees to free collective bargaining. Also, do not discriminate against different employees.
The company's most important responsibility to its employees is to pay them fair wages and provide them with healthy and good working conditions. Companies need to recognize the need to provide essential labor welfare activities to their employees, especially to care for female workers. Moreover, companies must prepare for proper training and education of workers in order to improve their skills.
However, keep in mind that few companies in India follow many of the above good practices. Indian industry captains generally complain about the low productivity of their employees, but little has been done to address their problems. Ajith Nivard Cabraal correctly wrote: Laws that are widespread in the country. This is probably one of the areas where good governance practices can have a significant impact on a country's business environment. "
3. Consumer Responsibility:
Some economists consider consumers to be the king who directs businesses to produce goods and services to meet his desires. But in modern times this may not be true, but companies must acknowledge their responsibility to protect their interests in conducting production activities.
Inspiring the concept of social contracts, management expert Peter Drucker said: Only he is working. To meet the needs and needs of consumers, society outsources wealth-producing resources to businesses. From the above, companies need to recognize consumer rights, understand consumer needs and wants, and produce goods and services accordingly.
The following corporate responsibilities to consumers are worth mentioning:
1. Offer consumers goods and services at reasonable prices and do not try to form cartels and abuse them. This is more appropriate for companies that produce essentials such as life-saving medicines and vegetable oils, as well as essentials such as electricity supplies and telephone services.
2. Do not supply consumers with crude and dangerous products that may harm them.
3. We need to provide consumers with the necessary after-sales service.
4. Consumers should not be misleading through inappropriate and misleading advertising.
5. They need to arrange an appropriate distribution system for their products to prevent traders from black markets and profits.
6. We need to recognize the right to listen to consumers and take the necessary steps to correct a true complaint.
Despite the above responsibilities, which are generally regarded by business professionals as good marketing practices, Indian companies generally do not pay attention to them, and as a result, consumers are often dissatisfied or disappointed. I am. There is a growing awareness of consumer rights.
An organized movement to protect consumer rights, called consumerism, was the result of companies' negligence in their liability to consumers. Moreover, the indifference of businesses to consumer rights has forced governments to enact consumer protection legislation to protect consumer rights and prevent their exploitation by businesses.
4. Environmental obligations:
A company's primary responsibility is to ensure that it does not harm the environment, and for this purpose production activities need to reduce air and water pollution as much as possible. To avoid pollution, do not dump toxic waste into rivers or streams. Environmental pollution causes great health damage to people. Environmental pollution poses a major health hazard to people and causes some respiratory and skin diseases.
Economic theory considers environmental pollution to be a social cost that must be minimized. Currently, there is a growing awareness of reducing environmental pollution. Recent findings show that high emissions of carbon dioxide and other pollutants are causing climate change.
Therefore, companies need to adopt a high level of environmental protection and ensure that they are enforced regardless of the enforcement of environmental laws passed by the government. Many countries, including India, have passed laws to protect the environment, but they have not been properly and strictly enforced.
Companies trying to maximize profits pollute the environment recklessly and negligently. Therefore, in order to protect the environment, the government is required to take strict measures and strictly enforce environmental laws.
5. Responsibility to society in general:
Companies work with the consent of the public with the basic purpose of producing goods and services that meet the needs of society and provide employment to people. The traditional view is that in performing this function, the business maximizes profits or shareholder value so that it does not act in a socially irresponsible way. According to Adam Smith, who often cites the invisible hand theorem, the invisible hand for businessmen to maximize profits while promoting the interests of society. To quote his words, "Individuals or businesses are generally not intended to promote the public interest and do not know how much he promotes it ... he is in his own interest. Only intended and, as in many other cases, guided by the invisible hand to promote purposes that are not part of his intentions by pursuing his own interests. Frequently promotes the interests of society more effectively than when he really intends to promote it. In today's world, where the product and element markets are monopolized and oligopolistic, and there are externalities, especially harmful externalities such as environmental pollution caused by corporate activities, maximizing private interests does not necessarily mean maximizing social interests. Not always connected.
Conclusion:
Social responsibility is related to the concept of ethics. Ethics is a field dealing with moral obligations and obligations. Social responsibility means that a company strives not only to maintain business ethics and maximize profits and shareholder value, but also to promote the interests of other stakeholders and society as a whole.
Two examples of the lack of social responsibility of business witnessed in India are worth mentioning. One refers to the tragedy of a Bopar gas leak. On December 2, 1984, a pesticide plant owned by Union Carbide Limited (UCL), a multinational company in Bhopal, leaked toxic gas from the plant, killing more than 2,000 poor people and about two. The Laks were seriously injured and crippled.
This is because the company did not introduce any safety measures. Union Carbide sought to show that it was not responsible. After a long court battle, Union Carbide was eventually held liable by the court and asked to pay $ 650 million in damages to the victims.
Another recent example of the lack of corporate social responsibility in India and the failure of good corporate governance in India is provided by Satyam Saga. Ramalinga Raju, chairman of Satyam Computers, has committed hundreds of billions of rupees of fraud, causing great losses to the company's shareholders and lenders. Due to this criminal activity, Raju was in jail and his company was hijacked by Mahindra.
This Satya fraud raises the issue of corporate governance failure in India, especially the role of independent directors in ensuring good corporate governance. The above two examples should serve as an awakening call for Indian companies to take responsibility for their customers, employees, other stakeholders, and society as a whole.
Key takeaways:
Preface:
The Indian research ecosystem offers great opportunities for multinational corporations around the world with the intellectual capital available in India. A corps of Indian engineers working around the world emphasizes highly trained personnel available at competitive costs. As a result, some multinationals are shifting or shifting their research and development (R & D) locations to India. These R & D centers either develop products that serve the domestic market or help overseas parent companies quickly bring new and innovative generations of products to markets around the world.
Market size:
India accounted for 40% (US $ 13.4 billion) of total US $ 34 billion in globalized engineering and R & D in 2016. #
With a total of 25 innovation centers in India, it is ranked as the top innovation destination in Asia and the second largest new innovation center in the world. * This country accounts for 27% of the new innovation centers in Asia.
India climbed to 60th place in the 10th Global Innovation Index (GII) in 2017 and may be on the list of the top 25 countries in the next 10 years. %
India ranks second among the countries with the highest increase in contributions to quality scientific research. ^ ^
India-based R & D services companies, which account for almost 22% of the global addressing market, have grown much faster at 12.67%.
The Indian engineering R & D (ER & D) company market consists primarily of pure PES companies such as Cyient, Quest and eInfochips, as well as large IT companies that utilize PES such as Wipro, TCS and HCL. India's ER & D services market is expected to reach US $ 15-17 billion by 2020, and North America remains the largest market, contributing 55% of revenue.
Recent investment and development:
Intel India will invest Rs 1,100 (US $ 170.59 million) to expand its R & D center to Bangalore, the largest R & D center outside the United States.
Tata Motors has partnered with Microsoft to improve the in-vehicle connected experience using connected car technology and artificial intelligence (AI) capabilities.
Robert Bosch Engineering and Business Solutions (RBEI) opens a new reliability test lab in Naganathapura, Bangalore, builds for US $ 3.5 million, and electronic components used in automobiles, aircraft, consumer electronics, and other similar systems. You can test the unit (ECU).
Government initiative:
Some of the major initiatives taken by the Government of India to promote the R & D sector are:
The Government of India aims to develop India into a global innovation hub by 2020 against the backdrop of effective government measures taken to provide an environment that enables R & D growth in India, Said YSChowdary, Minister of State for Science and Technology, Science, Government of India.
India and Israel will provide US $ 1 million from their respective sides to support new research and development (R & D) projects in the areas of big data analytics in healthcare and cybersecurity in science and technology over the next two years. Agreed to strengthen bilateral cooperation.
Future road:
With government support, all of India's R & D sector is ready for strong growth over the next few years. According to a study by management consulting firm Zinnov, the Indian engineering R & D market is estimated to grow at a CAGR of 14% and reach US $ 42 billion by 2020.
India is also expected to witness strong growth in the agricultural and pharmaceutical sectors as the government invests heavily to establish dedicated research centers for research and development in these sectors. The Indian IT industry is also expected to contribute to the development of the R & D sector.
Key takeaways:
The Problem of Selecting Appropriate Technology.
(1) Insufficient capital:
This makes it difficult to adopt new technologies. Professor Nurkse said: “If we are short of capital, know-how development alone cannot drive economic growth. Only with the help of capital can we realize the benefits of know-how and develop our production processes. "
(2) Usage issues: Technology development was a very slow process in developed countries. Therefore, their social, political and economic institutions have great difficulty in adopting the changing technological scenarios of the country. However, in developing countries, traditions and customs still have a strong influence on the institutional setting of these countries.
Therefore, the adoption of such new technologies is not a smooth voyage process. People are so bound by their common sense that they cannot easily adapt to changing situations. Still, many want to stick to traditional manufacturing methods. This causes many other problems.
(3) Functional illiteracy:
Most of the population of developing countries is uneducated. It's difficult to get them to know new technologies. Therefore, the government's first mission is to generate enthusiasm among the general public for new ways of doing things in developing countries. This should be adopted especially in the agricultural sector.
(4) Various conditions:
The technology was developed in developed countries to meet their needs and means. However, the needs and means of developing countries are different from those of developed countries. Therefore, many types of technologies developed in developed countries may not be suitable for the developing world. Therefore, the various conditions prevailing in both countries pose many obstacles to the adoption of new technologies.
(5) Obsolescence issues: It has been observed that in developed countries technology develops very rapidly and existing technology quickly becomes obsolete. When new technology reaches the undeveloped world, it is declared as a vintage variety in developed countries.
As a result, undeveloped people cannot fully enjoy the benefits of so-called new technologies. Therefore, it is desirable for non-developers to develop their own technology and avoid importing new technology.
(6) Lack of competent innovators: The discovery and adoption of new technologies presupposes the presence of competent innovators. They need a lot of capital for the successful implementation of their program. However, not only is there a shortage of capital, but developing countries also lack talented innovators and entrepreneurs.
(7) Capital intensive: In developed countries, technology is the most capital intensive. Wage rates are high in these countries due to labor shortages. In contrast to abundant human resources, developing countries need labor-intensive technology. Capital-intensive technology is not very suitable for them.
Suggestion-
(1) Use of labor-intensive technology:
In the early stages of growth, developing countries should prefer to adopt labor-intensive technology. Such technologies should be developed independently whenever possible. Technology should aim to maximize employment opportunities, primarily in developing countries.
(2) Adjustment of various methods:
Certain technologies cannot be successful in developing countries alone. Appropriately consider the existing cultural and social environment of the country when developing new technologies. You need to coordinate different possible techniques to accelerate the growth process. In addition, the new technology must be compatible with the existing technology.
(3) Survey:
In developing countries, appropriate modifications may be made to adopt the technology of developed countries. This requires “investigation” at various levels of adoption of new know-how. Therefore, we are seeking the help of developed countries. Governments in developing countries need to open research centers with trained personnel to facilitate the adoption of new technologies. Special incentives may be given for good research.
(4) Training facilities:
Developing countries should provide workers with maximum training facilities. This makes it easier to adopt new technologies. Many engineering institutions should be established in the country.
(5) Minimum cost:
Developing countries need to choose production technologies that equalize the marginal productivity of the factors in alternative applications. In these situations, manufacturing costs are kept to a minimum.
(6) Technology imports:
We must strive to import technology from abroad, but only from countries that guarantee continuous maintenance of high-tech machinery and equipment.
(7) Maximum Remainder:
Developing countries should adopt technologies that generate the largest surplus possible. This will stimulate capital formation and growth.
(8) Appropriate plants:
Developing countries should invest in such plants within limited means. They should not be overly enthusiastic about investing in large plants beyond their capacity.
These factories employ the latest technology to help increase production and absorb the most trained people. Professor Nurkse argued that in the early stages of growth, developing countries should rely more on simple tools and tools than modern ones.
The Multinationals as a source of Technology:
A multinational corporation is a company established in one country (called your home country). However, its business goes beyond its home country, and it operates in other countries (called host countries) in addition to its home country.
It should be emphasized that the headquarters of multinational corporations are in their home countries.
Characteristics of multinational corporations (MNC):
The main functions of MNC are as follows.
Huge assets and sales:
Multinational corporations operate on a global basis and therefore have enormous physical and financial assets. This also results in huge sales (sales) for multinational corporations. In fact, in terms of wealth and sales, many multinationals are larger than the national economy of some countries.
International operations through a network of branches:
MNC has production and marketing activities in several countries. It operates through a network of branches, subsidiaries and affiliates in the host country.
Unification of control:
The MNC features a unified control. Multinational companies manage the business activities of their overseas branches through their headquarters in their own country. The management of the branch operates within the framework of the parent company's policy.
Strong economic power:
MNC is a powerful economic agent. They continue to increase their economic strength through the constant mergers and acquisitions of companies in the host country.
Advanced and sophisticated technology:
In general, multinational corporations have sophisticated and sophisticated technology under their command. We use capital-intensive technology in manufacturing and marketing.
Professional management:
The MNC employs professionally trained managers to handle huge amounts of money, advanced technology, and international business operations.
Aggressive advertising and marketing:
Multinationals spend huge amounts of money on advertising and marketing to secure their international business. This is probably the greatest strategy for the success of multinational corporations. Because of this strategy, they can sell any product / service, they produce / produce.
Better quality of product:
The MNC must compete at the world level. Therefore, special attention should be paid to the quality of the product.
Benefits of MNC-
Job creation:
Multinationals create large-scale employment opportunities in host countries. This is a great advantage for multinational corporations for each country. Where there is a lot of unemployment.
Automatic inflow of foreign capital:
Multinational corporations provide the very necessary capital for the rapid development of developing countries. In fact, with the entry of multinational corporations, the influx of foreign capital is automatic. As a result of the entry of multinational corporations, India is attracting foreign investment, for example in the millions of dollars.
Proper use of idle resources:
With a high degree of technical knowledge, multinational corporations are in a position to properly utilize the idle physical and human resources of the host country. This will increase the national income of the host country
Improving balance of payments:
The MNC helps host countries increase exports. This helps the host country improve its balance of payments position.
Technology development:
MNCs have the advantages of technological development in 10 host countries. In fact, multinational corporations are a means of transferring technology development from one country to another. Poor host countries are also beginning to develop technologically because of multinational corporations.
Business development:
The MNC uses the latest management techniques. People employed by multinational corporations do a lot of research on management. In a sense, they help professionalize management in line with the latest lines of business theory and practice. This will lead to business development in the host country.
The end of local monopoly:
The entry of multinational corporations leads to competition in the host country. The local monopoly of the host country begins to improve the product or lowers the price. Therefore, multinational corporations put an end to the exploitative practices of local monopolies. In fact, multinationals are forcing domestic companies to improve efficiency and quality.
In India, many Indian companies have obtained ISO-9000 quality certificates for fear of competition by multinational companies.
Improving living standards:
MNC helps improve the standard of living of people in host countries by providing ultra-high-quality products and services.
Promoting international brotherhood and culture:
The MNC integrates the economies of different countries with the world economy. The MNC promotes international brotherhood and culture through international transactions. And it paves the way for world peace and prosperity.
Multinational corporation as a source of technology:
Throughout history, technological changes and transfers leading to mechanization and industrialization have led to economic change, innovation, improved knowledge and skills, and increased productivity from an industrial perspective. In addition, technology transfer by multinational corporations (MNCs) not only helps developing countries carry out sustainable development, but also helps protect the environment and improve the quality of life for current and future generations. I will. It has played an important role in the formation of society (UNIDO / WBSCD, 2002) and the development of the country. Technology transfer involves a two-way relationship between sending and receiving technology between companies, industries, and governments. However, technology transfer to developing countries depends on many factors, including governments, their economies, markets, R & D, and national infrastructure.
Technology transfer by multinational corporations to developing countries not only brings about economic change, but also promotes productivity growth. Although the process of invention and creation is still a developed state. But in developing countries, productive knowledge and subsequent innovation occur. These processes are, in effect, the driving force for sustainable growth and change in developing countries.
Technology is at the heart of competition and development. Technology transfer by multinational corporations enhances a country's technological capabilities by providing product and / or process innovations. Manufacture of new products and services and improvement of the quality of existing ones may lead to the improvement of the technological technology industry in developing countries. Innovation can also lead to the establishment of a more competitive industry, which can bring profits to hosts (developing countries). Countries like China, for example, are attracting foreign direct investment (FDI) for cheap mass production that has been gradually established due to its innovative capabilities. China is fully aware of the threat and has taken steps towards innovation. Innovation is seen as a central vehicle for economic growth in both developed and developing countries. Developing countries can sustain economic growth through their unique innovation capabilities.
You can expect constant growth by creating new products that expand your knowledge of technology and products and reduce the cost of innovation. It is believed that the transfer of knowledge and skills is necessary to adopt new technologies in developing countries. In the case of MNC, there is an increasing reliance on knowledge and skills to make good use of the product. Therefore, companies must be taught productive knowledge and skills to employees, local suppliers of inputs required for the production process, and new technologies to effectively use the company's products. You can invest in diversification. A particularly direct impact is on the labor force of the host country. Transferring knowledge and skills to local suppliers and workers forms the basis of the spillover effect of technology. This spillover upgrades existing knowledge and skills so that the host country can enjoy the true potential of the transferred technology. Highly skilled and knowledgeable economies are a key feature of the 21st century to increase the growth and competitiveness of developing countries.
Apart from technological innovation and transfer of knowledge and skills from multinational companies to developing countries, it brings technological changes to production facilities, production methods and final products that bring economic benefits. It is possible to expand the scale of production by improving technology and improving the knowledge and skills of workers. Technical inputs can be used in the production process to directly increase productivity.
Technology transfer by multinational corporations makes a difference in fostering sustainable development in developing countries. Technical cooperation is recognized as one of the key tools in the context of sustainable development. Sustainable development can lead to the creation of new solutions to the socio-economic needs of developing countries. Sustainable development is progress, economic growth, efficient use of resources, and helping the economy escape poverty and environmental degradation.
The MNC provides developing countries with mutually beneficial environmentally clean and economical technologies. Some multinationals are pioneering eco-efficient, process-oriented, low-pollution technologies that have been relocated to developing countries. For example, British Petroleum provides solar energy and upgrades basic facilities in remote areas of the Philippines.
With the help of this technology, we provide remote parts with energy-related infrastructure such as lighting equipment, school equipment, and water pumps. We also provide technology knowledge through training and community development programs to help local community members manage technology. The contribution of environmentally friendly technology is associated with sustainable development. This will improve the quality of life and long-term benefits of current and future generations.
Key takeaways:
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