Vipin's Ppt on Economics

8/8/2019 Vipin's Ppt on Economics

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THE IMPACT OF TECHNOLOGICAL

CHANGE Tech change may involve new products,

improvement or cost reductions for existing

products or better ways of managing theoperations of a business.

Electronic co. must be competitive in using the

new digital technologies for their audio and

video equipment. Automobiles manufacturers

survive only if they keep cost down by using

advanced robotics for assembly.


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Tech change, productivity and

economic growth Tech change allow the firm to produce the same

rate of output using fewer input

Tech change may be input natural labor saving orcapital saving

Labor productivity is the ratio of output to laborinput

Total factor productivity compares change inoutput to changes in both capital and labor

The single most important source of economicgrowth in the U.S. has been tech change


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Requirement for

successfulinnovation Innovation involves developing useful products.Diffusion is the process whereby new product

become widely available

Often the key to successful product innovation canbe marketing and the ability to provide service.

Profitable process innovation involves secrecy and

being able to exploit economies of scale

Innovation is more likely to be successful if the firm

stays with in its core competencies


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FOR EX. RCCola was the first company to sell

cola drinks in a can and also the first to

introduce a diet cola, butCoca-Cola and Pepsi-Cola responded so quickly that the smaller firm

never gained any significant advantage from its

innovation.


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LOCATING THE FIRM IN A GLOBAL

ECONOMY: INTRODUCTION Locating a business in right place is important

because the cost of moving output and people

across space is significant. For ex. The best site for a retail store generally

is one that is in close proximity to a large no. of

people who are the potential customer of the

store.


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Ranking industrial location

determinants Percentage of Executives surveyedlocation factors who rated these factors accordingto importance

Geographic location 64

Availability of transportation 54

Stable state govt. 38

Skilled Labor availability 32

Raw material availability 28

Tax exemptions 27

Unskilled labor availability 22

Water supply 17

Availability of rail transportation 16{Source: M.L. Goldstein, choosing the Right Site, Industry Week

(Apr.16, 1985)}


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LOCATING THE FIRM IN GLOBAL

ECONOMY Many large U.S. and foreign firms now

produce and sell a significant share of their

output in other countries. This is accomplishedby setting up subsidiaries in foreign countries,

entering into joint ventureswith producers in

those countries, or by licensing foreign firms to

produce and market their products.


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IMPACT OF TECHNOLOGICAL

CHANGE ON AUTOMOBILE SECTOR


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Maruti Suzuki India ltd. Is a publicly listedautomaker in India. It is a leading four-wheelerautomobile manufacturer in south Asia. Suzukimotor corporation of Japan holds a majority stakein the company.

Maruti Suzuki Plant in Gurgaon


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Technological changes: Authorized service stations: Maruti has 2628

listed authorized service stations and 30 expressservice stations on 30 highways across India.

Maruti insurance: National insurance co., Bajajallianz, New India assurance and RoyalSundaram.

Maruti finance: Maruti tied up with ABN Amro

Bank, HDFC bank, ICICI Ltd., Kotak Mahindra,Standard chartered bank, andSundaram to startthis venture including its strategic partners in carfinance.


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Maruti DrivingSchool:

Maruti Exports:Maruti Exports Ltd. A maruti driving school in chennai

is the subsidiary ofMaruti Udyog ltd.

With its major focus on export and it

does not operate in the domesticIndian market. Angola, Benin, Europe,

Kenya, Sri lanka, Uganda, Chile, Costa

rice, and El Salvador are some of the

markets served byMaruti Exports.

Maruti suzuki has helped indiaemerge as the fourth largest

exporter of automobiles in asia


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CHANGE ON BANKING SECTOR


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CHANGE ON BANKING (COND..)

Debit & Credit card

Branch less bankingATM Services

E-Payment service

E-Bank transaction Internet banking

Mobile banking


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Vipin's Ppt on Economics

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