Impact of Government Policy changes on business and industry:
Change is a permanent rule of nature. Change occurs everywhere. The change may be natural or deliberate. It may be revolutionary or evolutionary. It may be for better or for worse. It may be internal or external.
The changes in business and industry are inevitable. Change is a process, which every type of organization has to go through & therefore organizations should be alert & should be prepared to accept & face these changes.
As time and tide wait for none but it is accepted by everyone, similarly change can be denied by none but has to be accepted by every organization. Each and every plan decided by the entrepreneur for betterment of the organization has to be changed by the change in time. The organizations also make their plans and policies flexible. A business organization, if not able to adjust with change can not survive in long run.
The changes in business and industry may be one of the following changes:-
- Social changes
- Economic changes
- Political changes
- Legal changes
- Technological changes
(1) Social changes: The changes in tastes, likes, dislikes, fashion, culture, values, benefits, traditions, attitude, norms, morals, etc. are known as social changes. The organization must check and adopt all these social changes.
(2) Economic changes: The changes that take place in economic environment, in income levels, in profit of the organization, total turnover, economic policy, etc are termed as economic changes.
(3) Political changes: Most of the times government is found to be unstable and these changes in government, political parties, political leaders, opposition pressure, press, media, etc, are the main reasons for political changes. These political changes also affect the business and industry adversely.
(4) Legal changes: Every organization in the country has to follow a set of defined policies. These policies are decided by the government. The changes in rules, regulations and various business policies are termed as legal changes. Every organization has to incorporate these changes without any delay. Any negligence in complying with any changes in rules and regulations will result in heavy penalties
(5) Technological changes: The changes influenced on account of developments in science and technology are termed as technological changes. These changes do not affect only on production but also affects the profitability of the organization at large. Science and technology has revolutionized present business environment. Use of atomic machines for production purpose in place of manual operated machines, use of DVD, use of cellular phones, use of computers, etc. have witnessed unbelievable technical changes. Besides this mass media, email, internet and facsimile has brought the world and world wide organizations very close where changes have become like fashion.
These are the impact of government policy changes on business and industry
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