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Competition & Strategy – AU EPGDM – March to May 2023 Quad C Module 1 Assignments to Students Instructions: 1) All the Questions need to be answered 2) The answers to the questions should demonstrate...

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Competition & Strategy – AU EPGDM – March to May 2023 Quad C Module 1 Assignments to Students Instructions: 1) All the Questions need to be answered 2) The answers to the questions should demonstrate application of mind – not just theory material from the books 3) Please read carefully each sub section of the Question The answers to each question must be specific – not just bullet points – but reasonably amplified with current relevant examples – But Not More than 5 sentences for each sub-question 4) If the answers appear to have been copy-pasted from internet-based sources or if there are remarkable similarities between fellow students – You will get ZERO Marks – for such answersNo queries will be entertained later – the Professor’s decision will be deemed final QUESTION 1: (6 Marks) Briefly discuss two important changes in the Indian Business Environment, impacting Indian industries, adversely and/or positively, in each of the following areas, giving live examples (Time span – since XXXXXXXXXXa) Economic 1(b) Social 1(c) Technological QUESTION 2 (4 Marks): 2(a) For Indian Carbonated Soft Drinks Industry, Which TWO factors of the Micro Environment mostly affect the Profitability of the IICSD Industry? And Explain Each of them -How? QUESTION 3: (4 marks) Take the example of any SBU of a Large Corporate 3 (a) What is Core competency of the SBU – explain briefly 3(b) What is the Distinctive competency of the SBU – explain briefly QUESTION 4: (6 Marks) 4(a) Scenario: Today US Dollar Buying rate for Payment for FOREX transactions is appx. Rs 83 By Nov 1, 2023, the Rate may move up to Rs 85. Question is: What would be the impact for the textile hosiery, knitted fabrics industry 4(b) Scenario: Artificial Intelligence technology applications are developing fast and Indian Govt is also giving a big push for the same from the current budget. Question is: What would be the impact in the number of people employed In the Public Healthcare Sector By March 2024?
Answered 2 days After Mar 20, 2023

Solution

Ayan answered on Mar 22 2023
22 Votes
WRITTEN ASSIGNMENT
Table of contents
Question 1    5
Introduction    5
Impact of WTO on Indian Economy    5
Impact of Globalization on Environment and natural resources    6
Financial    8
Positive Change    9
Negative Change    10
Social    11
Positive Change    12
Negative Change    13
Technology    14
Positive Change    14
Negative Change    15
Conclusion    17
Question 2    17
Introduction    17
Market Size and Structure    17
Consumer Preferences and Trends    18
Background    20
Bargaining power of suppliers    21
Availability of substitutes    22
Concentration of suppliers    23
Importance of inputs to the industry    24
Impact of bargaining power of suppliers on the Indian CSD industry    25
Intensity of competitive rivalry    26
Opportunities for Growth    27
Recommendations    28
Conclusion    30
Question 3    30
Core competency of the SBU    30
Introduction    30
Core Competency    31
Analysis    33
Conclusion    34
Distinctive competency of the SBU    35
Introduction    35
Distinctive Competency    36
Analysis    37
Conclusion    44
Question 4    44
Impact of US Dollar Buying Rate on Textile Hosiery and Knitted Fa
ics Industry in India    44
Introduction    44
Industry Overview    45
Challenges    45
Technological Advancements    46
Government Support    47
Analysis    48
Conclusion    50
Impact in the number of people employed In the Public Healthcare Sector by March 2024    50
Introduction    50
Impact of Forex Developments    50
Impact of AI Developments    51
Analysis    52
Implications    52
Conclusion    57
References    58
Question 1
Introduction
The process of swiftly integrating nations and events through increased international investment and commerce has been described as globalisation. It is the process of global integration that results through the exchange of ideas, goods, and other cultural elements. One of the many positive repercussions of globalisation on Indian business has been the massive inflow of foreign capital, particularly in the BPO, pharmaceutical, petroleum, and manufacturing sectors. Large-scale foreign direct investments (FDI) helped the Indian economy tremendously when they entered the Indian industry. The advantages of the effects of globalisation on the Indian economy include that many international businesses established firms there, particularly in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors, and this helped to provide jobs for many people in the nation. This assisted in lowering the nation's unemployment and poverty rates. The fact that international businesses
ought cutting-edge technology with them to India is another advantage of globalization's effects on the country's industrial sector. This has helped to develop Indian industry's technical level. The competition between domestic and international businesses intensified because of the numerous negative effects of globalisation on Indian industry. The buyer chose to purchase foreign items since they were superior to Local products. As a result, Indian Industrial businesses made less money. Specifically, the steel, chemical, industrial, and pharmaceutical industries were affected. The adverse Impacts of Globalization on Indian Industry include the fact that as technology advanced, the amount of labour required dropped, which led to many people losing their employment. The pharmaceutical, chemical, industrial, and cement sectors were the key areas where this occu
ed. Both good and negative consequences of globalisation on Indian industry have been seen. The Indian government must work to implement economic measures that will benefit rather than impede Indian industry's globalisation.
Impact of WTO on Indian Economy
The World Trade Organization (WTO) is a multilateral international body that regulates worldwide commerce (McKinsey Global Institute, 2019). The majority of the trade nations in the world negotiate, sign, and have their parliaments ratify WTO accords as the foundation of their activity. The objective is to facilitate commercial operations for exporters, importers, and manufacturers of products and services. India is a founding member of the World Trade Organization (WTO), which took effect on 1 January 2012 following the end of the Uruguay Round (UR) of Multilateral Trade Talks, and the General Agreement on Tariffs and Trade (GATT) 1947, which it superseded. India's involvement in a more rule-based system for managing international commerce aims to provide stability and predictability, which will eventually promote more trade and prosperity. The World Trade Organization (WTO) is a multilateral organisation that promotes fair trade between countries and allows the free movement of goods and services throughout the globe. It is an association with 149 members that represents all the countries in the globe that trade in commodities and services. The main goal of the WTO is to raise global income through more trade and an overall improvement in member countries' levels of wealth. WTO officially began operations on January 1st, 1995 (PwC, 2021). It is a far more powerful organisation than its predecessor, the GATT (General Agreement on Tariffs and Trade). Just following the Second World War, in 1948, 23 nations became the founding members of GATT. Up until 1994, GATT served as a framework for eight trade discussions, the latest of which, the Uruguay Round, led to the establishment of the World Trade Organization.
Impact of Globalization on Environment and natural resources
Our way of life has been significantly impacted by globalisation. Faster access to technology, better communication, and innovation has resulted from it. Along with being crucial in
inging people from all cultures together, technology has also ushered in a new era of economic wealth and offered up several routes for growth. Globalization has, however, also led to several areas of wo
y, chief among which being the effects it has had on the environment. Environmentalists have frequently
ought up globalisation in their discussions and have emphasised its wide-ranging implications. Activists have emphasised how globalisation has increased product consumption, which has had an influence on the natural cycle. Increasing production of commodities results from increased consumption, which in turn stresses the environment (World Economic Forum, 2018). The movement of food and raw materials between locations has increased as a result of globalisation. People used to eat food that was cultivated locally, but as a result of globalisation, individuals now buy things that were made in other nations. Because of the quantity of fuel used to transport these goods, the environment is now more polluted than before. Also, it has resulted in a number of additional environmental issues including noise pollution and landscape distu
ance. The need for transportation has also put pressure on non-renewable energy sources like gasoline. Along with causing the ozone layer to thin, the gases released by aeroplanes have also increased the greenhouse impact. The production-related industrial trash has been loaded onto ships and thrown into the sea. This has caused the death of numerous aquatic species and the release of several hazardous substances into the ocean. One illustration of the danger that globalization
ings to the environment is the harm that the oil that leaked from one of British Petroleum's leaky containers in 2010 did to the ecology. Globalization and industrialization have caused the soil to become contaminated with different chemicals, which has encouraged the growth of several noxious weeds and plants (Gartner, 2021). Plants have suffered significant harm because of this toxic wastes interference with their genetic composition. The available resources for the land have come under pressure. Mountains are being cut in many places of the world to create room for a passing tunnel or a roadway. Large tracts of desolate te
ain have been invaded to make room for new structures. While these developments may
ing individuals joy, they can also have long-term repercussions on the environment. Plastic is a non-biodegradable commodity, making it one of the main harmful pollutants, according to several studies conducted over the years. Yet when it comes to protecting and packing products for export, plastic is incredibly useful. This has boosted the usage of plastic, which has polluted the environment severely. It has significantly altered our lives in ways that are impossible to undo. The answer comes in creating efficient controls that can limit how much of an influence it can have on the environment. According to researchers, the solution to this issue is found inside the issue itself, i.e., how globalization itself may help the construction of a better structure that is both economically practical and environmentally beneficial (Li et al., 2021). Competition and whether some privately held businesses can take the lead in becoming environmentally friendly are key factors in globalization. Globalization is a process that involves the interchange of knowledge, things of value, and ideas on a worldwide scale. International trade and the spread of the same political, cultural, and economic paradigms have accelerated since 1960. Growth in world commerce is dependent on the heavy exploitation of natural resources and on dirty manufacturing and transportation methods. Globalization does, however, also allow for the expansion and creation of new markets, as is the case with fair trade. Almost half of the tropical forests have been lost since 1950..
Financial
One of the most significant changes in the Indian business environment has been the economic impact of the COVID-19 pandemic. The pandemic and the resulting lockdowns have had a significant impact on the Indian economy, leading to a contraction in GDP and a slowdown in economic activity. However, there have been several other changes that have impacted Indian industries positively and negatively.
One of the positive changes in the Indian economic environment has been the increase in government spending on infrastructure development (Youssef, 2021). The Indian government has announced several infrastructure development projects, such as the Bharatmala project, which aims to build new highways and improve the existing road network in the country. This increase in government spending has led to the growth of many industries such as construction, real estate, and engineering. The construction industry, in particular, has seen a significant boost in demand, leading to an increase in the number of new projects and the creation of new jobs. Another change in the Indian economic environment that has impacted industries positively is the implementation of several reforms aimed at improving the ease of doing business in the country. The Indian government has implemented several policy changes such as the introduction of the Insolvency and Bankruptcy Code, the Goods and Services Tax (GST), and the Atmani
har Bharat Abhiyan, which aims to promote self-reliance and reduce dependence on imports. These policy changes have led to a more favorable business environment for companies operating in India, leading to an increase in investment and the creation of new jobs.
However, there have also been changes in the Indian economic environment that have impacted industries negatively. One of the most significant changes has been the increase in crude oil prices. India is heavily dependent on imported crude oil, and the increase in prices has led to an increase in the cost of production for many industries such as manufacturing, transportation, and logistics (Jiang et a., 2019). The rise in crude oil prices has also led to an increase in the prices of raw materials such as plastics and polymers, which are used by industries such as packaging and consumer goods. This increase in the cost of production has adversely affected the profitability of many Indian companies. Another change in the Indian economic environment that has impacted industries negatively is the decline in consumer demand due to the economic slowdown caused by the pandemic. The pandemic and the resulting lockdowns have led to a decline in consumer spending, particularly in industries such as retail, hospitality, and tourism. The decline in consumer demand has led to a decrease in sales and revenue for many companies, leading to layoffs and closures.
Positive Change
The Production Linked Incentive (PLI) Scheme's launch in 2021 will have a significant beneficial economic impact on Indian industry. The program was started by the Indian government to enhance local production of goods and services for both domestic and foreign markets and to make Indian manufacturing more competitive. The program allows for bonuses of up to 4-6% on increased sales for qualified enterprises. This helped to create new jobs and
ought in much-needed investment for the Indian industrial industry. For instance, Foxconn and Wistron, two Apple contract manufacturers, have submitted applications for PLI incentives.
One of the most significant positive changes in the Indian economic environment has been the recent surge in foreign investment (Liao, Chen & Du, 2020). Despite the challenges posed by the COVID-19 pandemic, India has continued to attract significant foreign investment, particularly in sectors such as technology, healthcare, and manufacturing. The surge in foreign investment can be attributed to several factors, including India's large and growing consumer market, its skilled workforce, and the government's efforts to improve the ease of doing business. India's young and growing population, coupled with increasing u
anization and rising disposable incomes, have made it an attractive destination for foreign investors looking to tap into the growing consumer demand. In addition, India's skilled workforce, particularly in areas such as technology and engineering, has made it an attractive destination for companies looking to set up research and development centers or manufacturing units. Companies such as Google, Amazon, and Samsung have set up research and development centers in India to tap into the country's skilled workforce. Finally, the Indian government's efforts to improve the ease of doing business have also played a significant role in attracting foreign investment. The government has introduced several economic reforms, including the introduction of the Goods and Services Tax (GST), the simplification of the tax system, and the streamlining of regulatory procedures. These reforms have made it easier for businesses to operate in India and have improved India's ranking in the World Bank's Ease of Doing Business Index. Overall, the surge in foreign investment is expected to have a positive impact on the Indian economy, creating jobs, boosting economic growth, and supporting the development of key sectors such as technology, healthcare, and manufacturing.
Negative Change
A significant economic development that has a negative effect on Indian industry is the growing inflation rate in 2021. Following the Covid-19 pandemic, inflation has considerably grown, which has resulted in an increase in the cost of basic necessities like food and fuel, which directly affects manufacturing costs and, eventually, industry earnings. Because of this, businesses are being compelled to raise their prices, which reduces demand and lowers their profitability. For instance, the growing inflation has had a negative impact on the auto industry.
One of the most significant negative changes in the Indian Economic environment has been the impact of the COVID-19 pandemic. The pandemic has had a severe impact on the Indian economy, with several industries such as hospitality, aviation, and tourism being significantly affected. The pandemic has led to a decline in consumer demand and supply chain disruptions, leading to reduced production and job losses (Hill, Jones & Schilling, 2019). Small and medium-sized businesses have been particularly affected, with many struggling to survive due to reduced demand and cash flow constraints. In addition, the pandemic has led to a decline in foreign investment, as investors have become more cautious in their investments due to the uncertainty caused by the pandemic. Several industries, such as the automobile and real estate sectors, have seen a decline in foreign investment due to reduced demand and supply chain disruptions. The pandemic has also had a significant impact on the labor market, with many workers losing their jobs due to business closures and reduced demand. The pandemic has particularly affected workers in the informal sector, who are often not eligible for social protection programs and have limited access to financial resources. Finally, the pandemic has also led to an increase in government spending, as the government has introduced several economic stimulus packages to support businesses and individuals affected by the pandemic. The increase in government spending has led to a significant increase in the fiscal deficit and public debt, which could have long-term implications for the Indian economy. Overall, the COVID-19 pandemic has had a significant negative impact on the Indian economy, leading to reduced consumer demand, supply chain disruptions, job losses, and reduced foreign investment. The government's response to the pandemic, including economic stimulus packages and other measures will play a critical role in supporting the recovery of the Indian economy in the coming years.
Social
The Indian social environment has also undergone significant changes in recent years, impacting industries positively and negatively.
One of the positive changes in the Indian social environment has been the growing awareness of social and environmental issues. Consumers are becoming increasingly conscious of the impact of their actions on society and the environment. This trend has led to the rise of sustainable and ethical consumption practices, leading to the growth of industries such as organic farming, eco-tourism, and sustainable fashion. For example, companies like FabIndia, which promotes sustainable and ethical fashion, have gained popularity in recent years. Another positive change in the Indian social environment has been the increase in digital literacy and the adoption of new technologies (Porter, 2019). With the growth of internet penetration and the widespread use of smartphones, more people are gaining access to digital platforms, leading to the growth of industries such as e-commerce, online education, and digital marketing. This trend has also led to the growth of the gig economy, with more people working as freelancers and independent contractors. However, there have also been changes in the Indian social environment that have impacted industries negatively. One of the most significant changes has been the rise of social unrest and political polarization. The rise of social and political tensions has led to disruptions in supply chains and increased uncertainty for businesses. For example, the farmer protests that began in late 2020 have led to disruptions in the supply of food and other agricultural products, impacting industries such as food processing and retail. Another change in the Indian social environment that has impacted industries negatively has been the growing inequality and poverty in the country. Despite economic growth, India continues to have one of the highest rates of poverty in the world. This has led to challenges in attracting investment and has limited the growth of industries that rely on consumer spending. Additionally, the lack of access to basic services such as healthcare and education has limited the potential of the Indian workforce, impacting industries such as healthcare and technology.
Positive Change
The National Digital Health Mission (NDHM) will be implemented in 2021, which would mark a big societal transformation for Indian industry. Every Indian citizen will receive a digital health ID as part of the objective, allowing them to securely and conveniently access their medical records and healthcare services. This will enable the Indian healthcare sector to operate more effectively and offer its clients better services. Also, it will make healthcare services more affordable and accessible for patients. For instance, Apollo Hospitals has adopted the NDHM to give its clients a better digital experience.
One of the significant positive changes in the Indian social environment has been the growing awareness and acceptance of social issues such as gender equality, LGBTQ rights, and mental health. The increasing awareness and acceptance of these issues have led to a more inclusive and tolerant society, promoting social harmony and equality. Gender equality has been a significant issue in India, with women facing discrimination and violence in several areas. However, in recent years, several social campaigns and initiatives have been launched to promote gender equality, leading to increased awareness and understanding of the issue. For instance, the Beti Bachao Beti Padhao (Save the Daughter, Educate the Daughter) campaign aims to improve the status of the girl child in Indian society, promoting gender equality and women's empowerment. Similarly, the growing acceptance and visibility of the LGBTQ community have been a significant positive change in the Indian social environment. The decriminalization of homosexuality by the Supreme Court in 2018 was a significant step towards LGBTQ rights in India, leading to increased acceptance and visibility of the community (Barney, 2019). Several pride parades and events are now held in major cities, promoting awareness and acceptance of the LGBTQ community. Moreover, the growing awareness and acceptance of mental health issues have led to increased dialogue and understanding of the issue, reducing the stigma associated with mental illness. The government has also taken several initiatives to promote mental health, such as launching the National Mental Health Program, which aims to provide accessible and affordable mental health services to all. Overall, the growing awareness and acceptance of social issues in India have led to a more inclusive and tolerant society, promoting social harmony and equality. The increased dialogue and understanding of gender equality, LGBTQ rights, and mental health have led to significant positive changes in the Indian social environment, paving the way for a more equitable and inclusive society.
Negative Change
The Covid-19 pandemic out
eak in 2021 was a huge societal change that had a negative influence on Indian industry. Lockdowns and other limitations on public mobility have been put in place as a result of the pandemic, which has had a negative impact on the way many sectors operate. For many industries, this has led to a severe reduction in demand and earnings. For instance, one of the sectors most severely affected by the pandemic is the tourism sector.
One of the significant negative changes in the Indian social environment has been the rise of religious and caste-based violence and intolerance. The rise of right-wing nationalism has led to an increase in hate speech and communal tensions, leading to several incidents of violence and discrimination against minorities. Religious intolerance has been a significant issue in India, with incidents of violence and discrimination against minority communities, particularly Muslims, being reported frequently. The 2019 Citizenship Amendment Act (CAA) led to widespread protests and violence, with many seeing the act as discriminatory against Muslims (Teece, 2018). Similarly, the beef ban imposed by several states has led to increased tensions between Hindus and Muslims, with several incidents of violence being reported. Caste-based discrimination also remains a significant issue in Indian society. Despite efforts by the government to promote social equality, the caste system remains a significant ba
ier to social mobility, with people from lower castes facing discrimination in education, employment, and other areas. Moreover, incidents of violence and discrimination against Dalits, who are considered the lowest caste in the hierarchy, continue to be reported frequently. Furthermore, violence against women remains a significant issue in India, with incidents of rape, sexual harassment, and domestic violence being reported frequently. Despite the introduction of several laws to protect women's rights, including the 2013 Criminal Law Amendment Act, the implementation of these laws remains weak, and convictions are often rare. Overall, the rise of religious and caste-based violence and intolerance, as well as violence against women, is a significant threat to social harmony and inclusivity in India. It is essential to address these issues and promote a more tolerant and inclusive society for the betterment of all citizens.
Technology
The Indian technological environment has undergone significant changes in recent years, impacting industries positively and negatively.
One of the positive changes in the Indian technological environment has been the growth of the digital economy (Grant, 2019). With the increasing adoption of digital technologies, the Indian market has seen the growth of several industries such as e-commerce, digital payments, and online entertainment. The digital economy has also led to the growth of several startups, with India being one of the fastest-growing startup ecosystems in the world. For example, companies like Paytm, Zomato, and Byju's have gained significant market share in recent years. Another positive change in the Indian technological environment has been the growth of the Internet of Things (IoT) and Artificial Intelligence (AI). The adoption of IoT and AI has led to the growth of several industries such as healthcare, agriculture, and manufacturing. For example, IoT devices are being used in the healthcare industry to monitor patients' health remotely, leading to better healthcare outcomes. Similarly, AI is being used in the agriculture industry to improve crop yield and reduce waste. However, there have also been changes in the Indian technological environment that have impacted industries negatively. One of the most significant changes has been the increase in cybersecurity threats. With the increasing adoption of digital technologies, the threat of cyberattacks has also increased. The rise of cyber threats has led to the need for increased investment in cybersecurity, impacting industries such as finance and technology. Another change in the Indian technological environment that has impacted industries negatively has been the slow adoption of new technologies in certain industries. Despite the growth of the digital economy, certain industries such as healthcare and education have been slow to adopt new technologies. The lack of adoption has limited the potential of these industries to improve healthcare outcomes and provide better education, leading to challenges in attracting investment and growth.
Positive Change
The launch of 5G technology in 2021 will have a big beneficial technological influence on Indian companies. The technology enables organizations to deliver quicker and better services to their customers by delivering faster data rates, lower latency, and enhanced reliability. They will be able to create new services and products, like smart manufacturing and remote healthcare, which will help businesses stay competitive and boost their revenues. For instance, in India, the rollout of 5G services has already begun by telecom companies like Airtel and Jio.
One of the significant positive changes in the Indian technological environment has been the rapid growth of digital infrastructure, which has improved access to technology and digital services for the masses (Eisenhardt & Martin, 2019). The government's push towards digitization has led to the development of a robust digital ecosystem, promoting innovation and entrepreneurship. India has witnessed a significant growth in internet penetration in recent years, with over 700 million internet users as of 2021. The growth of mobile internet has been a significant factor in this regard, with smartphones becoming more affordable and accessible to the masses. The availability of low-cost data plans has also made it easier for users to access digital services, such as online banking, e-commerce, and entertainment. Moreover, the government's push towards digitization has led to the development of several innovative digital services, promoting convenience and ease of access for users. One of the significant initiatives in this regard has been the Digital India campaign, which aims to transform India into a digitally empowered society and knowledge economy. The campaign has led to the development of several innovative digital services, such as the Unified Payments Interface (UPI), which has revolutionized the payment landscape in India, making it more convenient and secure for users. The growth of digital infrastructure has also led to the development of several startups and small businesses, promoting entrepreneurship and economic growth. The availability of digital tools and platforms has made it easier for small businesses to reach a wider audience, facilitating their growth and expansion. Moreover, the government's Startup India initiative has provided several incentives and support measures for startups, promoting innovation and entrepreneurship. Overall, the growth of digital infrastructure in India has been a significant positive change, promoting innovation, entrepreneurship, and economic growth. The availability of digital services has improved access to services for the masses, promoting convenience and ease of use. Moreover, the growth of startups and small businesses has provided several employment opportunities, contributing to economic growth and development.
Negative Change
A notable technical advancement that will have a negative effect on Indian companies in 2021 is the rise in the frequency of cyberattacks. Cyberattacks have the potential to seriously harm a company's operations, as well as result in the loss of client data, monetary losses, and reputational harm. Businesses are therefore spending more money on cyber security solutions to shield themselves from such dangers. As an illustration, numerous Indian banks have been the target of cyberattacks that resulted in the loss of consumer data and monetary damages.
One of the significant negative changes in the Indian technological environment has been the rise of fake news and misinformation, leading to the spread of false and misleading information. The widespread availability of social media and messaging platforms has made it easier for false information to spread rapidly, leading to several incidents of communal violence and social unrest. The proliferation of social media and messaging platforms has created a
eeding ground for fake news and misinformation, with users sharing content without verifying its authenticity. Moreover, the lack of regulation and accountability has made it easier for malicious actors to spread false information, leading to social and political consequences. Furthermore, the growth of technology has led to several privacy and security concerns, with incidents of data
eaches and cyberattacks being reported frequently (Collins & Po
as, 2018). The lack of robust cybersecurity infrastructure and regulations has made it easier for cybercriminals to target individuals and businesses, leading to financial losses and reputational damage. Moreover, the growth of technology has also led to the displacement of several jobs, particularly in the manufacturing and service sectors. The increasing automation of jobs has led to a decline in employment opportunities for low-skilled workers, leading to social and economic inequalities. Additionally, the growth of technology has led to several health concerns, particularly among children and young adults. The increased screen time and the use of digital devices have been linked to several health problems, such as obesity, sleep disorders, and mental health issues. Overall, the growth of technology has
ought several negative consequences, such as the spread of fake news and misinformation, privacy and security concerns, job displacement, and health concerns. It is essential to address these issues and promote responsible technology use for the betterment of society. Regulations and accountability mechanisms need to be put in place to prevent the spread of fake news and misinformation and protect individuals and businesses from cyber threats. Moreover, efforts need to be made to ensure that the benefits of technology are distributed equitably, and the negative consequences are minimized.
Conclusion
The Indian business environment is constantly evolving, and businesses must stay aware of the changes to adapt and thrive in the competitive market. The changes that impact Indian industries can be economic, social, or technological, and they can have positive or negative effects. Economically, the increase in fuel prices has had an adverse impact on many industries, especially transportation. However, the introduction of the PLI scheme has provided an incentive for companies to increase production and maintain quality, leading to a positive impact on industries such as electronics and telecom. Socially, the shift in consumer preferences towards eco-friendly and sustainable products has created a new market for companies that produce such goods. However, the COVID-19 pandemic has had a significant impact on many industries, leading to both opportunities and challenges. Technologically, the rise of AI has led to increased efficiency and productivity in many industries. However, it has also resulted in job losses in certain sectors. On the other hand, the growth of e-commerce has had a positive impact on industries such as retail, logistics, and banking, creating new opportunities for growth and development. In conclusion, businesses in India must stay aware of the changing business environment and adapt to the new opportunities and challenges that come their way. By leveraging the positive changes and finding ways to mitigate the negative ones, businesses can stay competitive and succeed in the dynamic Indian market.
Question 2
Introduction
The Indian ca
onated soft drinks (CSD) industry has been an important contributor to the Indian economy, providing employment opportunities and generating revenue for the government. The industry has been growing steadily over the years, driven by changing consumer preferences, increased u
anization, and rising disposable incomes. However, the industry has been facing challenges in recent years, which have impacted its profitability and growth.
Market Size and Structure
The Indian Ca
onated Soft Drinks (ICSD) industry is a significant player in the Indian beverage market. According to a report by Euromonitor International, the ICSD industry in India was valued at $7.4 billion in 2020 (Ghemawat, 2018). The industry has been growing steadily over the years, driven by factors such as increasing disposable income, changing consumer preferences, and the rise of the Indian middle class. The ICSD industry is dominated by a few large players such as Coca-Cola, PepsiCo, and Parle Agro, with smaller players trying to establish their presence in the market. Coca-Cola and PepsiCo are the two largest players in the industry, with a combined market share of over 80%. These companies have been operating in India for several decades and have a well-established distribution and supply chain network across the country. Parle Agro is another significant player in the ICSD industry, with a market share of around 15%. The company is known for its popular
ands such as Frooti, Appy, and Bailey. Dabur, another player in the industry, has been expanding its presence in the ICSD market with the launch of its
and Real Activ and low-sugar variants of its popular fruit juices. The ICSD industry has witnessed significant investments from both domestic and international players in recent years. For example, in 2019, Coca-Cola announced plans to invest $1.7 billion in India over the next five years to expand its presence in the country. PepsiCo also announced plans to invest $2.1 billion in India over the next five years to expand its operations in the country. The industry has also witnessed significant consolidation in recent years. In 2020, Coca-Cola announced that it would acquire the juice and juice drinks business of the Indian multinational conglomerate, ITC Limited. The acquisition will help Coca-Cola expand its product offerings in the Indian market and strengthen its position in the ICSD industry. Overall, the ICSD industry in India is a significant player in the Indian beverage market, dominated by a few large players. The industry has been growing steadily over the years, driven by factors such as increasing disposable income, changing consumer preferences, and the rise of the Indian middle class. The industry is witnessing significant investments and consolidation, and companies are expanding their product offerings to cater to changing consumer preferences.
Consumer Preferences and Trends
Consumer preferences and trends play a crucial role in shaping the Indian Ca
onated Soft Drinks (ICSD) industry. The industry has witnessed a shift in consumer preferences in recent years, driven by changing lifestyles, health concerns, and growing awareness about the environmental impact of plastic packaging. Some of the key consumer preferences and trends in the ICSD industry are as follows:
· Health and Wellness: With an increasing focus on health and wellness, consumers are opting for healthier beverage options (Prahalad & Hamel, 2019). This trend has led to a rise in demand for low-sugar, low-calorie, and natural beverages. Many ICSD companies have responded to this trend by introducing low-sugar variants of their popular beverages. For instance, Coca-Cola has launched Diet Coke and Coke Zero, while PepsiCo has introduced Pepsi Max and 7UP Free.
· Flavored and Functional Beverages: Consumers are also looking for unique and innovative beverage options. This trend has led to a rise in demand for flavored and functional beverages. Many ICSD companies have introduced new flavors and variants to cater to this trend. For instance, Coca-Cola has launched Fanta Green Mango and Sprite Ginger, while PepsiCo has introduced Mirinda Orange Masala and Mountain Dew Ice.
· Environmental Sustainability: With growing concerns about the environmental impact of plastic packaging, consumers are looking for more sustainable packaging options. This trend has led to a rise in demand for beverages that come in glass bottles, cans, and other eco-friendly packaging options. Many ICSD companies have responded to this trend by launching eco-friendly packaging options. For instance, Coca-Cola has introduced its "World without Waste" initiative, which aims to collect and recycle a bottle or can for everyone it sells by 2030.
· Convenience: With busy lifestyles, consumers are looking for convenient and on-the-go beverage options. This trend has led to a rise in demand for single-serve and portable beverage options. Many ICSD companies have responded to this trend by introducing smaller-sized bottles and cans. For instance, Coca-Cola has launched its mini cans, while PepsiCo has introduced its "Bottle Up" initiative, which offers a range of portable beverage options.
· Premiumization: With an increasing disposable income, consumers are looking for premium and high-quality beverage options. This trend has led to a rise in demand for premium ICSD products such as imported and artisanal beverages. Many ICSD companies have responded to this trend by launching premium variants of their popular
ands. For instance, Coca-Cola has introduced its "Signature Mixers" range, while PepsiCo has launched its "Tropicana Essentials" range.
Background
One of the significant challenges facing the Indian CSD industry is changing consumer preferences. The consumers are becoming more health-conscious and are shifting towards healthier alternatives such as fruit juices and flavored water. This trend has impacted the demand for ca
onated soft drinks, leading to a decline in sales. Moreover, the increasing awareness of the health risks associated with consuming sugary drinks has led to a decline in the consumption of CSD. Another challenge facing the CSD industry is increased regulatory scrutiny. The government has been implementing several measures to regulate the industry, such as imposing taxes on sugary drinks, banning the sale of soft drinks in schools, and mandating the use of warning labels on packaging (Johnson et al., 2017). These measures have increased the cost of production and distribution for the CSD manufacturers, affecting their profitability. Furthermore, the industry is highly competitive, with several players competing for market share. The industry is dominated by multinational companies such as Coca-Cola and PepsiCo, which have significant
and recognition and marketing budgets. The local players in the industry face challenges in competing with these established players and capturing market share. Moreover, the low switching costs for consumers make it challenging for companies to retain their market share, leading to intense competition in the industry. In addition to the above challenges, the CSD industry is also impacted by external factors such as economic conditions, inflation, and natural disasters. The economic slowdown in the wake of the COVID-19 pandemic has impacted the industry, leading to a decline in sales and revenue. Moreover, the increased cost of raw materials and transportation due to inflation has increased the input costs for the...
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