Management as a Revival Catalyst for Loss Making Firms with Special reference to Select Companies in present Context

Abstract

The policies of liberalization, globalization and marketization brought out fundamental changes in the business environment in which industries operate. It has also substantially changed the rules of business games as far as entry, pricing and most of other decision variables are concerned. This changed the market structure, character and focus of marketing strategies. The changed economic environment has forced Indian corporate to cope up with economic liberalization and globalization policies of the globe. In India too, the entry of MNCs have been promoted and encouraged while impacts of MNCs on business and industrial development have resulted in increased competition and equity participation in manufacturing, processing and marketing of goods and services. These steps were expected to not only improve domestic but even global competitiveness of Indian industry and tied over the perennial foreign exchange problems. Indian Industry has been undergoing a very turbulent phase in the several years. The economic reforms created euphoria in the industry though de-regulation and de-reservation. This was further heightened with the reduction in import restrictions both of capital as well as consumer goods. New business opportunities also emerged on account of interest of foreign players to operate in India. Alongside a serious threat also emerged to the public sector companies on account of governments reluctance to fund losses, keenness to privatize them, and reduction in preferential treatment to them in government purchases etc. newlineAfter liberalization, the pressure of competition has increased and its nature has also changed with several ramifications. These phenomena have instilled a variety of fears in the minds of entrepreneurs and industrialists, some of which were the exposure to competition; the sudden opening up of the economy; the loss of protected environment which means encroachment on their protected turf by other players; in some cases loss of monopolistic control over the market; loss of market share th