Recently many companies have planned for significant investment in organised retailing in india. Various factors which have encouraged companies to take these decision are customer income is increasing, rise in standard of living of people. People are ready to pay high price for quality goods, government policy of liberalisation regarding MNC entry and FDI, etc.
(a) Explain briefly changes in business environment under different heads that have facilitated the companies' decision to plan significant investment in retailing.
(b) What has been the impact of these changes with regards to globalisation and privatisation ?

Explanation

(a) Changes, which have taken place in the various areas are as follows:
Economic changes
(i) Increase in disposable income of the people.
(ii) Liberalisation of economic policies
(iii) Increase in demand for branded products.
(iv) Increased globalisation and integration of world economies.
Social changes
(i) Increased aspiration levels due to increase in incomes.
(ii) Changes in consumption habits.
(ii) Changes in lifestyle.
(iv) Increase in the number of nuclear families
Technological changes
(i) Advances in food packaging and processing technologies.
(ii) Advancements in supply chain management.
(iii) Use of more flexible and customised manufacturing processes
Political changes
(i) Acceptance of organised retailing by a decisive number of political parties.
(ii) Favourable attitudes of Indian corporate sector towards competition from foreign companies in organised retailing.
Legal changes
(i) Abolition of license, permit and quotas.
(ii) Liberalisation of foreign investment laws with regard to organised retailing.
(iii) Changes in existing economic legislations permitting investment in organised retailing
(b) Due to globalisation and privatisation, more retailers from India and abroad are encouraged to make investments in organised retailing. The competition has increased, the consumers are more demanding and expert working force is required in order to cope up with the changes, which have taken place and are further changing