Development of a Successful Business Environment - Case Study Example

Business environment Development of a successful business environment with the help of government The Government, the business group and the general public have an important role in creating a successful business environment. Mutual trust and belief between government, public and the business group, are required for the healthy business environment A successful business environment should be benefitted to the public, the government and the company. The government should provide basic necessities for the operation of a business Government have the dual role of assisting and creating successful business environment. . Bureaucracy is one of the main parts of a government which is directly linked with the success of a healthy business environment Government’s involvement in business sector is not a narrow question. It is a wide question Introduction Business environment has been changed a lot in the past decade under the influence of Globalization, Privatization and Liberalization. People or countries all over the world are coming under one umbrella. Whatever the development happening in one country whether it is positive or negative will affect the other countries as well. Now anybody irrespective of his country of Business environment 2 origin or culture can work anywhere in the world and can establish business firms as well. The restrictions up on foreign investment is been liberalized by most of the countries. The fluctuations in world economy in the past decade affected almost all types of business badly not only in U.S. but all over the world. Even the multi billionaire companies found it difficult, to exist in the market. The companies are looking for alternate solutions. Some of them looking for diversification, some others went for mergers with counterparts. Most of the governments are now encouraging the private sector participation in more areas though some of the critical sectors still they keep under the control of governments. A suitable business environment should be created by the government to capitalize the advantages of Globalization and Liberalization. “An effective work environment is vital to the success of small businesses and large corporations alike. When problems remain unsolved and rules never get implemented, the result can be an unproductive staff and a stale work environment” (David Kingston-Creating a positive, productive and successful work environment) Successful business environment A positive work environment does not depend on the number of employees the organization have. It is the management who are responsible for conducting things to promote the people’s spirit. Without a chance to grow, workers will not live up to their successful potential. People working together with a common aim will accomplish tasks with ease. If the management offer employees the opportunity for advancement, then they are more likely to say that they will still be working for company. Mutual trust and belief between the management and the employees is important for a healthy business environment. Strict rules and an autocratic approach of Business environment 3 management will never helpful for a successful business environment. This will destroy whatever the motivation the employee’s have and ultimately will result in lower productivity. Promotion within the company is always a good idea as it motivates people who want to do their best so that they can make it to the next level. The trust the management have in its employees will encourage employees to sacrifice anything to assist the company. I know a person who was working for an organisation as a sweeper. This fellow even on holidays will come to the organisation though it is closed. He will just watch the surrounding and will ensure that nothing went wrong at least at the surrounding. Once when he was conducting his routine checkups on a holiday found some smoke coming out of a window. Immediately he called his manager and the fire force and they were able to put off the fire without much damage to the company. This incident clearly shows how important and useful the management-employee relationship is. It is important for companies to take a careful look at the work atmosphere on a regular basis. This helps reduce the possibility of lawsuits and lost assets. People generally need some sort of challenge to motivate themselves. The effective leadership will provide the people the chance to grow. Recognize their contribution with positive feedback, raises, and advancement to more challenging positions. It is not easy to define a successful business environment. But it should be mutually benefitted. The organizations that are ready to invest should get their money back and at the same time their business interests should not be a hindrance to any social setups. The government should provide single window clearance to all the required formalities to set up a business. The bureaucratic dominance and corruptions should not be a barrier to the investors. Business environment 4 Unionism and idealisms should not affect the business. Some countries, especially the communist countries, are still looking suspiciously to the privatization policies. In their opinion majority of the business sector also should be under the government control. The excess trade unionism in such countries will create problems to the private organizations. The government should ensure that such unionism should not be a barrier for the investors. The government should provide basic necessities for the operation of a business. This include, land, electric power, water, etc. at affordable price. The success of a business always lies in the infrastructure provided. The proposed “Smart City” project by Dubai Internet City at Kerala (India) is a best example for the business culture and environment provided by a government. DIC (Dubai Internet City) has approached the previous government in Kerala, which is led by right democrats (Indian National Congress). But the leftists who were at the opposition at that time have opposed strongly against the DIC’s entry and that led the government to keep the project in pending. But the people of Kerala have generally supported the entry of DIC due to the immense employment opportunities to the unemployed youths offered by DIC. In the next election the leftists came to power and because of the immense pressure from the public they were forced to allow the entry of DIC. Now the DIC has got enough land, power, single window clearance for all the legal issues and the entire required infrastructure from the left government who opposed them once, to start the project. Main players of a successful business environment Business environment 5 We can see from the above example that the general public, the government and the organization itself are the main players responsible for creating a successful business environment. No business group can sustain their activities by avoiding the interests of the people. They should keep the public interests intact before implementing any new strategies. The multinational giant Coca Cola has been sacked from Kerala because of their failure to identify the people’s interests. They have exploited the ground water resources of the public immensely and the pure water shortage led the public to protest against Coca Cola. Finally they were forced to close down their activities. The organizations have a moral responsibility not only to the public and the government, but also to the environment as well. From the above example it is clear that both the government and the business sector have equal responsibility in creating a successful business environment. The government should ensure that proper infrastructure is being provided to the business group based on their requirement. But at the same time it is the duty of the business sector to fulfil the commitment to the society. The business group should not focus fully on the profit side, but at the same time they must ensure that their activities do not make any problems to the public or to the environment. The public also should contribute to the business environment by avoiding unnecessary problems to the business groups in the name of ideology or something else. They must understand that, for the economic development privatization also required. The government alone cannot do all the things and the government have limitations for that. Business environment 6 Government’s Role Government have the dual role of assistance and creation. It is the government’s duty to create the business for the private people. The government should identify the areas where the privatization can be implemented and then they should invite the proper business groups to execute the government’s plan. Their role is not finished by that only. The government should provide the necessary assistance also to the private business group. Without the government’s assistance no business group can be successful. One of the leading automobile manufacturers in India, The TATA Group has planned to manufacture an economical car (Nano Car) worth of Rupees 100000. The West Bengal (one of the Indian state) government has offered land, power and everything to the TATA group. The factory has set up and almost all the formalities have been completed to start the production. But one of the opposition political leader, who afraid of his political future, has sponsored an agitation against the TATA group. In his opinion lot of farmers have to vacate the place for the car factory and he gathered some farmers and started agitation against the car factory. Fed up with the government’s inefficiency and the protests of the people finally TATA group shifted their operations from West Bengal to Gujarat (Another state in India). The Gujarat government has welcomed the TATA group with both hands and provided more land and facilities to the TATA group. Now the factory has been established and the production has started without any problem. When analysing the above example we can see the impacts of one Government’s negligence and also another Government’s positive approach. Though both the states are in India Business environment 7 the governments are led by different parties of different ideologies. But the political parties should understand that their ideology should not be a barrier to the development of their country. The ideologies which were originated more than 100 years before may not be suitable for the present society. They should revise it to cater the needs of the modern society. Main parts of government that are concerned with business environment Bureaucracy is one of the main parts of a government which is directly linked with the success of a healthy business environment. What all policies formulated by the government is implemented by the bureaucrats. Corruption in bureaucracy can create lot of problems to the private business group. The government should ensure that the policies and proposals of the government do not rest in the files of the bureaucracy. The ministers of the related portfolios also have an important role in creating the healthy business environment. The ministers should co-ordinate each other to ensure that no barriers are created to the business group in their departments. The local governing bodies also have definite role in creating the environment. The vision of the government should be implemented by all the concerning departments. Government’s involvement in business sector is not a narrow question. It definitely has wide aspects for discussion than what we have discussed above. The government definitely have lack of resources in the case of developing or economically backward countries. But they can attract foreign investment to their country with the help of proper strategies without affecting the interests of the people. Only the government have the proper picture about the countries economics and they should utilize the opportunities provided to them in the label of Globalization, Liberalization and Privatization, judiciously. Business environment 8 Conclusion In the modern century we are leaving in a society of high technological advancement and opportunities for every one irrespective of whether they are living in which corner of the world, or in which country (rich or poor) they are living. To exploit the current situation which is benefitted to all, proper governance is required. It is the duty of the people to vote for the political parties who has the correct vision and mission to lead them to the prospects of growth provided by the one world ideology. Business environment 9 Sources 1. David Kingston-Creating a positive, productive and successful work environment Retrieved on 14/11/08 http://www.the-success-factor.com/successful_work_environment.htm Read More