PPT on Commercial Terms

1. PRIVATISATION
 In private sector the ownership & management of
enterprises are with individuals.
 They are allowed to take all decisions & manage the
business within the legal framework available.
 The major policy changes introduced since july 1991
are favourable to the process of privatisation.
 Disinvestment is an important aspect of privatisation

2. LIBERALISATION
 Liberalisation is one of the important feature of New Economic
Policy introduced in 1991 in India.
 The old “License and permit Raj” was removed
 Foreign exchange rule were made simple and liberal
 Automatic free entry for starting new ventures
 Delicensing of business
 Removal of old and outdated regulations and controls
 Wider scope for independent decision making
 Controlled economy to free market economy

3. OUTSOURCING
 Outsourcing implies obtaining goods or services by contract
from an outside source.
 REASONS FOR OUTSOURCING
1) Accessibility to world-class capabilities
2) Enjoy lower costs
3) Less dependency on internal resources
4) Increasing flexibility
5) Free management from day to day operations
6) Improve credibility
7) Use of expertise
8) Acquire innovative ideas
9) Exercise greater control

4. INNOVATION
 Innovation is the process of taking creative idea &
turning it into a product or a process that can be used
or sold.
 A consumer passes through five stages in order to
adopt innovation:
1) Awareness
2) Interest
3) Evaluation
4) Trial
5) Adoption