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Topic : Activity Based Costing and Management
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Accountablility by Government bodies

 
Functional Area : India
Activity:  3 comments  159 views  last activity : 04 18 2011 11:30:00 +0000
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What Indian Business Education don’t provide for the Environment.

Value generated and transacted in Business is the hallmark and pillar of the skill generated from a Business education. A business when it sell products in India, they don’t worry about the affordability of their wares by the masses let alone functionality which may be part of it.

A business incurs around 40% of fixed cost component along with may be 30% variable cost and probably the rest as ‘conversion cost’. What Business education teach us and what is followed in  Efficient economies is they fix a breakeven point say 100 units of sale. These 100 units will provide the years cost incurred. After this point they will start giving discounts say 10% or so, so that more of products will move at lowered costs.

If products are priced far above these three costs then the demand will subside and the production line will stagnate even for normal production.

Two things are required in the environment for this process to work. One is ‘buying power’ for citizen and ‘transparent business processes’. If the government don’t provide the first through  political-will of ‘endowing citizen’ then the companies will find it risky to price their  products at the original value imbued in it because expandability of market for their product will become a problem. This too is one reason inflation is part of every body’s life in an economy like  India.

Also, if business are old family run times, they who settled on ‘captive channels’ and ‘market’ modern business practices tend to become riskier for them for the above reason. So modern business trained personal tend to be a liability than an asset for Indian organization, in planning and daily administration throughout.

So, one has no choice other than request organizations to lobby the government to ‘endow the citizen’ so that modern business practices can be incorporated into business, so that externalities like high inflation can be slowed down. Moreover ones the citizen get endowed the present infrastructure of the economy need to be expanded so that ‘modern business practices’ which can make the Economy more efficient can be incorporated in Business environement.

 
3 comments on "What Indian Business Education don't provide for the Environment !!!"
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 04 18 2011 11:30:00 +0000
One cannot leave out corporate governence issues as a 'paradox' in the environment, the confusing branching as to which branch one should choose. That in itself is an absurdity to be present in an economy which threaten the sane progress of a nation state. There are so many seminars and getogethers conducted by the business bodies and they can resolve these issue on an academic philosophy basis. Then there liye the problem of academic philosophy not in tune and again the question why so arise? which lead one to the quesion of political will and direction the populace need to make our of their life and choices. So basicaly it is confusion all around, then citizen exists as and how it fit their momentery needs and events not according to any rational directions they choose in life. I think you can see the implications moving from confusion in resolving an already resolved issue elsewhere to confusion in political will which is also basicaly resolved elsewhere to confusion among citizen as to how they should exists. So it tantamount to 'existential' question which if not resolved according to scientific consciousnes or philosophy can be debilitating on the citizen making life really confusing, non productive and inefficient. Thanks Mr. Bhatia for the thoughtful answer.
  Commented by  akshaya bhatia, Program Manager (GM Projects-IT), fsl    | 04 16 2011 05:41:39 +0000
Good insight,.. it is more related to a rigid policy that accounts for imbalances in the various individual means of earnings in relation to instincts of spending among different strata of people coupled with the lack of social security on every front regardless of social or economic standings.   

Typically, any business is conducive to a rolling economy. At times, in Governance, there is confusion whether to persist with a social viewpoint of economy or radically transform to a capitalist view point. 

Although there is a drastic change in mode and style of modern Governance, that is absolutely distinct from the earlier aristocratic or autocratic systems, the archaic rules of taxation still continue without many relevant changes. 

Governance policies determine the business rules and practices. Confusions in adopting to different view points of economy lead to lacunae in Governance policies. Even if it has to be an adequate mix or overlap, it needs to be appropriately defined so that efficient policies for the businesses can be laid following which businesses can adopt the business practices that could be mutually benefit for the buyers as well.  

Incidentally, goals of businesses are always in alignment to interests of buyers, therefore sagacious businesses adopt for customer orientation and build their strategies focusing primarily on customer satisfaction and nowadays even targeting for the customer delight.
  Commented by  manish kumar, freelancer    | 04 15 2011 08:30:16 +0000
thanks for this info sir.
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