The TopThreeBusinessBenefitsof ClearlySettingandAligningOrganizationalGoalsAcrossYourCompany: 1.

IncreasedOperatingMargins Employees who clearly understand their individual goals-and how they relate to those of your company-naturally become more engaged with their work. Once employees see how they can make a direct contribution to your company's success, they begin to focus on finding ways to work smarter and more efficiently. This boost in employee productivity will naturally lead to increased operating margins and profitability for your company. To achieve these results, your company must put a performance management process in place that:

Increases employee engagement with "SMART" goals Provides visibility up, down and across reporting levels Creates shared accountability between employees by "cascading" goals from one employee to another when relevant

Communicates expectations clearly during every phase of goal completion

2. QuickerExecutionof CompanyStrategy Tighter goal alignment and goal visibility allows for quicker execution of company strategy by enabling your management team to more effectively allocate labor resources across various projects. By exposing redundant business initiatives, it also increases overall efficiency by ensuring employees are not duplicating the efforts of others. Plus, goal alignment strengthens the leadership at your company by allowing managers to:

Understand more clearly all responsibilities associated with specific goals Eliminate redundancies across job titles Focus their staffs on your company's most pertinent goals

3. ReducedEmployeeTurnover The business value of having employees engaged in their work cannot be overestimated. As proof, a recent Gallup poll showed that companies with large numbers of dissatisfied workers experience greater absenteeism and lower productivity-as well as a 51% higher employee turnover rate 2.

Fortunately, clear goal alignment can remedy this situation by helping to create greater employee ownership in your company's ultimate success. Goal alignment also lets you establish a true pay-forperformance culture at your company by providing the foundation for closely linking reward systems with both individual and team performance.

Five Business Goals That Will Turn Noise into Music Businesses content marketing goals will vary greatly; however, here are five solid goals that businesses of any type can plan for: 1. Brand Awareness: This is one of the most common goals of a content marketing strategy. In fact, arketing!rofs and "unta#$ found that brand awareness was the %o. & goal for B$B marketers in %orth 'merica. Thats because high()uality, purposeful content can showcase your companys e*pertise, leaving readers asking, +,ho wrote this-. 2. Brand Loyalty: ,hen readers find themselves consistently reading a brands content, they start to see that brand in a new light, not only in terms of credibility but also likability. The social media tool Buffer is a great e*ample of this. ' few years ago, Buffer invested in an industry blog that featured clever posts like +The /istory of To( 0o 1ists. and +2ommon istakes 3ur Brain akes and /ow to 4i* Them.. ,ith entertaining, informative content that actually provides value outside of its product offering, Buffer has developed a huge following in addition to a loyal customer base. This says a lot when everyone 5 and their grandmas 5 is busy developing +groundbreaking. social media tools. 3. usto!er "ducation: 'n educated client makes a happy client 6and keeps your customer service team from running to the bar after work7. 1ucky for you, educating potential customers is one of the most efficient ways to put content marketing to work. 8tart off by writing down the )uestions your sales team hears from clients. I guarantee those )uestions will spur ideas for articles that would be valuable to your audience. They may even convince a few hesitant customers. #. usto!er "n$a$e!ent: !ublishing an article and then responding to comments or )uestions with current or potential customers is an opportunity to connect. This type of engagement humani9es your company logo 5 giving it

an opinion, e*pertise, and 6most importantly7 a personality. 2ustomers want to buy from people, not a brand. %. Talent &ecruit!ent: :se content to showcase your company vision and culture via meaningful, no(B.8. content. 0o you really want people who love a good fluff piece working for you- ;ou want employees who appreciate thoughtful, honest content. ,e wrote about our team members contributing to a douchebag <ar when they said crappy things to each other. =reat talent saw this article and identified themselves as the right fit for our team.

Five goals to add to your business plan

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By Business View Share

Help get your business on track by embedding five goals into your business plan. In the current business climate, businesses need to plan and out-think the competition or risk being left behind as others steal market share. Setting goals can help you trim the financial fat and strengthen your organisation.

Goal catcher
Actioning the following goals could help your bottom line.

Goal 1: Conduct a detailed cash flow forecast

Know what revenue you need to achieve to be profitable and don t take on too much debt ! your business must be able to operate in tough financial times. "on t leave budgeting to your accountant to manage either. #ake it your responsibility to know your cash levels at any given time. $evisit your business plan monthly, updating it according to market behaviour, and keep some cash in reserve to buffer against future global economic turmoil, political instability, foreign e%change volatility, seasonal fluctuations, natural disasters and unforeseen I& advancements that could impact your business. 'e vigilant in reviewing where you can make savings and where you can reduce inefficiencies in the supply chain and buying process. 'uild up a variety of both suppliers and customers to protect cash flow in case you lose a ma(or client or supplier, and know the difference between core and non-core cash flow. )ay your invoices on time and ensure your loans are at optimal interest rates and fle%ibility too. If in debt, seek help straight away. And don t be afraid to learn from your investment mistakes.

Goal 2: Spend money on your business s point of difference

*here does your business e%cel+ Know your point of difference and know how you can translate that strength into profit. *ork out what makes your operation better than others, clarify how you can do business with larger organisations and discover how you can embed innovative thinking throughout your organisation.

Goal !: "mbrace digital

#ake a dynamic, measurable digital strategy core to your business plan. Spend money on I& to do it correctly and, most importantly, ensure the digital strategy is tailored to meet your ob(ectives. &ake time to understand how I& tweaks could financially benefit your business ! from cloud computing, to online promotions or sales, to launching your own app. 'e ready to respond to customers needs online, as I& has made business a ,-./ global proposition.

Goal #: $romote staff instead of recruiting e%ternally

Invest in training e%isting staff rather than recruiting e%ternally0 upskilling current staff embeds goodwill in your organisation. It can also be a wise investment move as it s often less e%pensive to retrain current staff than employ new staff and reduces the need to compete for e%ternal staff as the skills gap worsens.

Goal &: 'nvest resources into researching new mar(eting opportunities

&ake the time to tap into lucrative sales opportunities with new customers, products or services, or markets.

)he ! Goals of *ny Business *ctivity

October 20, 2010 by Charlie Gilkey 31 Comments

Do you know how to assess the value of potential business activities? 1et s say you re thinking about going to a conference. &here are a lot of reasons why you might want to go, but how can you tell if it makes business sense to do so+ 2r maybe you re thinking about where you re going to put your operational resources for the ne%t 3uarter. Is it better to create a new product or enhance your current service offer+ Is it better to go on an outreach push or to use that time, energy, and attention on working on your internal business processes+ 2r perhaps you re (ust sitting there wondering what you should do for the rest of the day and are tired of aimlessly hanging out on 4acebook or &witter. 5ou ve got the capacity to make something happen, but it s not clear what you should do with an unfinishable &o"o list in front of you. Assessing these opportunities on the fly can be really challenging without a framework, but it turns out there is a 3uick framework to help

out here. &o develop it, though, we ll need to get out of the trenches of our work and think about the goals of our business activities. Any given business activity can have at least one of these three goals6 7. ,. 8. &he activity can generate cashflow &he activity can generate opportunities &he activity can generate visibility

As a 3uick hint, if it s not clear how an activity in your business leads to one of the goals above, it s time to determine whether you should continue to do that activity. "oing something that isn t worth doing comes at the cost of something worth doing. 1et s consider each in turn.

Cashflow
*hen you re thinking about cash flow, it s always important to think aboutpositive cash flow. All too often, people focus on revenue, but revenue isn t necessarily positive cashflow. I ve seen people generate thousands of dollars in revenue only to turn around and have nothing to show for it after they pay support, payroll, and logistical costs. &he additional reason I want you to focus on positive cashflow is that it keeps you looking at how to get your working capital rather than having a bunch of I29s and potential payments out there. :ashflow is such a powerful word because it combines two tangible facets of your business0 the fact that money in the bank is what matters and that it flows. If you re not proactive about it, it ll flow out and not in. I don t need to stress the value of cashflow-generating activities because most people in business get it already. *hat I do need to stress is that cashflow-generating activities aren t the only thing you should be doing. #any people focusentirely on the activities that will generate short-term cashflow, and while this pays the bills, it sets them up for a later fall.

A growing business needs positive cashflow , but it s not the only thing it needs. It needs opportunities and visibility, too, so you should focus on getting them at the same time you re focused on making short-term money .

+pportunities
An effective entrepreneur or e%ecutive is a master at creating opportunities where there seem to be none rather than always waiting for the opportunity to happen. *hen you re assessing an activity using opportunity as a lens, you should ask yourself what new realities or conse3uences might result from you doing the activity in 3uestion. $ather than thinking in terms of point-to-point opportunities, think in terms ofopportunity chains. $emember, an opportunity chain is a set of cascading opportunities that are synergistic. 4or instance, I m in the process of writing a book on entrepreneurial strategy, leadership, and success. 4inishing the book will set up future speaking and service opportunities. :ompare writing a book with (ust focusing on service opportunities0 the latter has some immediate and important benefits ! cashflow, primarily ! but unless it s coa%ed, it doesn t have nearly the opportunity value of writing a book. Also keep in mind that you need to generate opportunity chains that are in alignment with your vision, values, and mission. It does you little good to generate opportunities that tilt your business in a direction that s out of alignment with what it s about. )ursuing those opportunities will both cost more of your resources and keep you from building on what you ve already done ! the likely result is that any success you have there will be much more terminal rather than cumulative. 5our momentum depends on cumulative growth and opportunities. It s better to have an opportunity and not need it than not have one and need it. &he more right opportunity chains you set up, the faster and more smoothly your business will grow.

Visibility

*hether we like it or not, to grow our business, we have to get what we re doing in front of people. If we re not in front of them, we don t e%ist to them unless we ve become a character in their stories. As visibility and momentum increase, though, you ll need to be more selective about the venues in which you get visibility. 'eing seen by your ideal customers is much better than being seen by people who aren t likely to care about what you re doing. 'ut being seen by somebody is better than nobody seeing you at all. *here I ve seen many people fall down ! especially in online business ! is that they go and get seen but they don t have their homebase in order. If you don t have something for people to hang onto once they see you, what good is being seen+ &here are times to be seen even when you don t have an offer or shingle, but at a certain point, you ll need to spend some time figuring out what the point of bringing people back to your business ;site< is if it s not setting up opportunities or cashflow. *hile I m on it, remember that the point of visibility isn t (ust to get seen by people who will buy something from you later on. =ven more important is being recogni>ed as an authority and leader0 you might not make a single sale or get a single person that follows you back to your business, but the fact that you re in a league of leaders, e%perts, and authorities increases your business s value.

3 Rules for Setting Business Goals

How to Set Business Goals That Arent Just a Waste of Time
By Susan ,ard

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;i(e setting personal goals< setting business goals provides us with direction and motivation1 But only if we set the right goals< goals that will (eep our business on trac( rather than derail it1 :ow do we (now that we=re setting the right business goals> )he right business goals follow three goal setting rules1 1 Business goals need to be rele!ant" Business owners sometimes ma(e the mista(e of choosing business goals that are pointless1 For instance< one person ' (now once set a business goal to hand out one hundred business cards a month1 ,ell he did< but so what> 'f his intention in setting this business goal was to bring in more business< we all (now that the way to do that is to establish relationships with people< and you don=t accomplish that by -ust handing someone a card1 )he whole e%ercise was -ust a waste of time1 )o be relevant< a business goal has to be profitable in some fashion1 )hat=s not to say that every business goal has to be measurable in dollars and cents< but it does have to possess a clear advantage or benefit to your business1 # Business goals need to be actionable" *n even more common mista(e when setting business goals is to choose business goals that are too vague or abstract1 Business goals such as ?*ndy=s *nti@ues will improve our customer service? sound nice 8 but if *ndy=s *nti@ues is your business< how are you going to do that> ,hen you=re setting business goals< be sure that you have developed them from general statements< such as in the e%ample above< to specific actions that can be performed and evaluated1 ASeeSetting Goals 's the First Step to *chievement to learn how to create specific goals1B Goals without action plans are -ust pretty words1 3 Business goals need to be ac$ie!able stretc$es" )he purpose of business goals is to move our businesses forward and< as ' said in the opening of this article< to motivate us1 So we have to position the bar very carefully when we=re setting business goals1

'f the bar is set too high< we set ourselves up for failure and disappointment and many of us< recogniCing this in advance< will -ust stop trying1 +n the other hand< if the bar is set too low< and all we have to do is step over it< we might not bother to do it as we won=t get enough satisfaction or recognition from the accomplishment1 * goal has to stretch us to be worth doing1 7ecogniCe that a business goal has to =feel= worthwhile and set business goals that will accomplish the dual purpose1 Follow these three rules when you=re setting business goals and you ll find that you=re automatically achieving more because you=ll no longer be wasting time setting goals that defeat the purpose of the e%ercise1 7eady to create business goals for your own business> Duic(8Start Business $lanning for Small Businesses will lead you through the process1 /ou might also want to read )op 1E .ew /ear=s 7esolutions for Business SuccessF it presents business goals to move your business ahead that you might want to incorporate into your plans1

)rivati>ation can also be called denationalization or disinvestment. All three terms describe a situation where a government decides to transfer control of a government, and thus public owned, resource to the private business sector, either partially or totally. Sometimes, the government continues to e%ert a certain amount of control over the industry or service, called municipali>ation. 4or e%ample the government may be able to limit prices and make certain demands through contracts, but private companies perform the work for a municipali>ed industry or service. &he reverse process of privati>ation is called nationalization, when a government takes control of an industry or service from the private sector. &here are many industries in the 9S that are either privati>ed or municipali>ed, and there are arguments for and against nationali>ing certain private industries, and privati>ing others. 4or e%ample, considerable debate e%ists regarding the issue of privati>ation of the social security system. Supporters for privati>ation contend that this would allow people to better fund their retirement by giving them opportunities to invest in higher yield investments. 2pponents suggest that privati>ing the system could be disastrous for those who don t make wise investments. &heoretically, a person who invests poorly could end up with no retirement income. In general, the arguments for privati>ation of an industry are as follows6 7. ?overnment run industries cost more because they have larger bureaucracies. ,. ?overnment run industries leave people with little choice in the market place. 8. )rivati>ing an industry fosters competition in the market place, which transfers to lower prices and greater choice for the consumer. -. ?overnments should not be in the business of controlling industries or services since this gives them too much control over the people. Arguments against privati>ation include the following6 7. A privati>ed industry is most concerned with profit, so while initial benefits to the consumer may occur, the industry may not be induced to keep prices low unless government controls are e%erted. ,. &he competition fostered in privati>ed industries may result in dirty or unsavory business practices.

8. )rivati>ation may limit access to certain industries for people who cannot afford them. -. &he public has little control over a private industry, and decisions in that industry may adversely affect those in the public sector. In the 9S, people point to problems encountered when certain industries have been privati>ed. *hen utility companies were privati>ed, problems began to occur, and higher prices have been noted. &here s consideration of privati>ing various industries6 education, public transportation, social security, and a slew of others. Some people, especially on the left side of the political spectrum, feel that other industries in the private sector should benationali>ed. :reating a national health plan has been proposed for several decades. In some countries, medical care is nationali>ed, and has both problems and benefits. In a nationali>ed health care plan, no one does without basic health care, access to immuni>ations, or emergency room services when needed. 4unding for such a plan is largely through increased ta%es, but people don t pay additional money to health insurance companies. :ritics of nationali>ed health plans say that one of the biggest problems is people may have to wait for several months to several years for elective surgeries, like gallbladder removal. 5et, privati>ed health plans, especially large ones, may have so many members that the same wait time e%ists0 thus this criticism may not be applicable. )rivati>ation continues to be a matter of much debate, especially in the 9S where capitalism, choice, and free market economies are valued. $ight wing politicians tend to favor denationali>ing many of the current government services or industries. 1eft wing politicians conversely support nationali>ing several of the industries currently run in the private sector.

Advantages and Problems of Privatisation

by TejvanPettinger on May 12, 2011 in economics

A look at the arguments for and against privatisation. Privatisation involves selling state owned assets to the private sector. This is often achieved through listing the new private company on the stock market. In the 1980s and 1990s, the UK privatised many previously state-owned industries such as:

B$ B) British *irways "lectricity Companies Gas companies

!otential Benefits of !rivatisation

1. ImprovedEfficiency. The main argument for privatisation is that private companies have a profit incentive to cut costs and be more efficient. If you work for a government run industry, managers do not

usually share in any profits. However, a private firm is interested in making profit and so it is more likely to cut costs and be efficient. Since privatisation, companies such as BT, and British Airways have shown degrees of improved efficiency and higher profitability. 2. Lackof Political Interference. It is argued governments make poor economic managers. They are motivated by political pressures rather than sound economic and business sense. For example a state enterprise may employ surplus workers which is inefficient. The government may be reluctant to get rid of the workers because of the negative publicity involved in job losses. Therefore, state owned enterprises often employ too many workers increasing inefficiency. 3. Short Termview. A government many think only in terms of next election. Therefore, they may be unwilling to invest in infrastructure improvements which will benefit the firm in the long term because they are more concerned about projects that give a benefit before the election. 4. Shareholders It is argued that a private firm has pressure from shareholders to perform efficiently. If the firm is inefficient then the firm could be subject to a takeover. A state owned firm doesnt have this pressure and so it is easier for them to be inefficient. 5. IncreasedCompetition. Often privatisation of state owned monopolies occurs alongside deregulation i.e. policies to allow more firms to enter the industry and increase the competitiveness of the market. It is this increase in competition that can be the greatest spur to improvements in efficiency. For example, there is now more competition in telecoms and distribution of gas and electricity. However, privatisation doesnt necessarily increase competition, it depends on the nature of the market. E.g. there is no competition in tap water. There is very little competition within the rail industry. 6. Governmentwill raiserevenuefromthe sale Selling state owned assets to the private sector raised significant sums for the UK government in the 1980s. However, this is a one off benefit. It also means we lose out on future dividends from the profits of public companies.

0isadvantages of !rivatisation
1. NaturalMonopoly

A natural monopoly occurs when the most efficient number of firms in an industry is one. For example tap water has very significant fixed costs, therefore there is no scope for having competition amongst several firms. Therefore, in this case, privatisation would just create a private monopoly which might seek to set higher prices which exploit consumers. Therefore it is better to have a public monopoly rather than a private monopoly which can exploit the consumer. 2. PublicInterest There are many industries which perform an important public service, e.g health care, education and public transport. In these industries, the profit motive shouldnt be the primary objective of firms and the industry. For example, in the case of health care, it is feared privatising health care would mean a greater priority is given to profit rather than patient care. Also, in an industry like health care, arguably we dont need a profit motive to improve standards. When doctors treat patients they are unlikely to try harder if they get a bonus. 3. Governmentlosesout on potentialdividends .

Many of the privatised companies in the UK are quite profitable. This means the government misses out on their dividends, instead going to wealthy shareholders. 4. Problemof regulatingprivatemonopolies . Privatisation creates private monopolies, such as the water companies and rail companies. These need regulating to prevent abuse of monopoly power. Therefore, there is still need for government regulation, similar to under state ownership. 5. Fragmentationof industries. In the UK, rail privatisation led to breaking up the rail network into infrastructure and train operating companies. This led to areas where it was unclear who had responsibility. For example, the Hatfield rail crash was blamed on no one taking responsibility for safety. Different rail companies has increased the complexity of rail tickets. 6. Short-Termismof Firms. As well as the government being motivated by short term pressures, this is something private firms may do as well. To please shareholders they may seek to increase short term profits and avoid investing in long term projects. For example, the UK is suffering from a lack of investment in new energy sources; the privatised companies are trying to make use of existing plants rather than invest in new ones.

>valuation of !rivatisation

't depends on the industry in @uestion1 *n industry li(e telecoms is a typical industry where the incentive of profit can help increase efficiency1 :owever< if you apply it to industries li(e health care or public transport the profit motive is less important1 't depends on the @uality of regulation1 3o regulators ma(e the privatised firms meet certain standards of service and (eep prices low1 's the mar(et contestable and competitive> Creating a private monopoly may harm consumer interests< but if the mar(et is highly competitive< there is greater scope for efficiency savings1

0efinition of ?!rivati9ation?
1. The transfer of ownership of property or businesses from a government to a privately owne entity. !. The transition from a publi"ly tra e an owne "ompany to a "ompany whi"h is privately owne an no longer tra es publi"ly on a sto"# e$"hange. When a publi"ly

tra e "ompany be"omes private% investors "an no longer pur"hase a sta#e in that "ompany.

What are the !ain Features o' New "cono!ic (olicy o' )ndia*
KA$9@A

,hat are the main 4eatures of %ew >conomic !olicy of IndiaThe main features of the new economic reforms@policy are stated below: 1. Li+eralisation: The fundamental feature of the new economic policy is that it provides freedom to the entrepreneurs to establish any industry@trade@ business venture. The entrepreneurs are not re)uired to get prior approval for any new venture. ,hat they need is that they have to fulfill certain conditions to get into a line of one?s choice. The procedure involving a case by case e*amination of the proposals for new ventures has been wiped off. 'part from this the entrepreneurs no longer need licenses to come into business. The capital markets have also been freed and opened to the private enterprises. ' new company can now be floated with new issue of shares, debentures etc. In case the entrepreneurs re)uire imported e)uipment, they are no longer re)uired to approach the central authority for foreign e*change. The area of liberali9ation is 6i7 licensing business, 6it7 4oreign Investment 6iii7 4oreign Technology 6iv7 >stablishment, erger, 'malgamation and taken over, and 6v7 8imple >*it policies. 2. ",tension o' (rivati-ation: 'nother feature of the new economic policy is the e*tension in the scope of privati9ation. %ow, the ma<ority of economic activities will be conducted by the private sector. In the wave of privati9ation, out of &A industries reserved for public sector, && industries have been given to the private sector. oreover, =ovt has also privati9ed the ownership of some public sector undertakings by the sale of capital of some selected enterprises to the private sector. The field of privati9ation has further been e*tended by offering greater opportunities of investment to the foreign private investors. >conomic !olicy seeks to accord priority role to the private sector. Tendency to e*pand private sector is evident from the following facts: .i/ %umber of industries reserved for public sector has been reduced from &A to B. !rivate sector can now set up its units in the field of iron and steel, energy, air transport, etc. .ii/ Till the end of Bth !lan, share of public sector in total investment continued to be greater than that of the private sector. It is intended to be reduced to #CD in the Eth !lan. Thus Eth !lan aims at raising the share of private sector investment to CCD of the total. .iii/ 8hares of public enterprises are to be increasingly sold to the workers and general public, with a view to increasing the participation of private individuals. .iv/ ' large part of industrial investment of the private sector to be financed by; %ational Industrial 4inance Institutions. These institutions, while sanctioning loans for the new pro<ects, used to

e*ercise their right of ?2onversion? invariably. It implied the right of converting the loans into share capital by the 4inancial Institutions. Thus, the private firms were always under the constant threat of conversion. 'ccording to the %ew Industrial !olicy, the 4inancial Institutions will not insist on the conversion clause. ,ith the e*pansion of privati9ation there is every possibility of increase in productivity and efficiency. 3. Glo+ali-ation o' "cono!y: The new economic policy has made the economy outwardly oriented. %ow, its activities are to be governed both by domestic market as also the world market. It means unification of the domestic economy with the world, economy. In fact, this has become possible by various policy initiatives taken by the =ovt. 4or instance, devaluation of rupee in "une &FF& was intended to do away with the artificially controlled overvalued e*change rate of the rupee. %ow, the rupee has been made fully convertible on current account of the balance of payments. oreover, elimination of licensing of a large number of import items has enabled the importers to import any where in the world. The reduction in custom duties on imports has also been done to bring them in line with the duties in other countries of the world. In short, globali9ation means .a/ Geduction of trade barriers with a view to allowing free flow of goods to and from the country. .+/ 4ree flow of foreign capital in terms of investment i.e., direct and portfolio for ensuring conducive atmosphere. .c/ 4ree flow of technology, and .d/ 4ree movement of labour and manpower. #. Mar0et Friendly 1tate: The role of the state is one that is confined to selected non(market areas and is largely to ensure a smooth functioning of the market economy. 's compared to past, the ownership of some selected enterprises has been transferred to private sector. Its activities as owner of resources have been confined to two types of activities. 3ne covers the activities which are badly needed for the operation of the economy and the other pertains to social services such as education, health, etc. /owever, more importantly, the state is to ensure a smooth functioning of the market. 4or this, the state has to ensure stability in the market through the use of macro economic policies. The state will also intervene in the market when it fails. %. Moderni-ation: %ew economic !olicy accorded high priority to modern techni)ues. It aims at to augment the growth rate of sunrise industries. In order to import technical dynamics to Indian industry, the =ovt, decided to clear all foreign collaborations. !rivate entrepreneurs will be free to settle the terms of such collaborations on their own behalf. oreover, =ovt has also been trying to stimulate private entrepreneurs to establish their own research and development centers by offering them various ta* concessions. >fforts are also being made to revive and moderni9e the sick industrial units both within the public and private sectors. 2. New (u+lic 1ector (olicy:

!ublic sector attracted priority. In the words of 0r. anmohan 8ingh, 4inance inister in 2ongress =ovt. that this priority was given to the public enterprises in the hope that it will help to accumulate capital, industriali9ation, economic growth and removal of poverty. But none of these ob<ectives were achieved. Thus, new economic reforms are trying to shift the emphasis from public to the private sector.

What are the features of new economic policy 1991?

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A s

Answer6 1" )iberalisation: )he fundamental feature of the new economic policy is that it provides freedom to the entrepreneurs to establish any industryItradeI business venture1)he area of liberaliCation is AiB licensing business< AitB Foreign 'nvestment AiiiB Foreign )echnology AivB "stablishment< 0erger< *malgamation and ta(en over< and AvB Simple "%it policies1 'ri!ati*ation: +i %umber of industries reser!ed for public sector $as been reduced from 1, to -" 'ri!ate sector can no& set up its units in t$e field of iron and steel. energy. air transport. etc" +ii )ill the end of Jth $lan< share of public sector in total investment continued to be greater than that of the private sector1 't is intended to be reduced to #&K in the 2th $lan1 )hus 2th $lan aims at raising the share of private sector investment to &&K of the total1 +iii Shares of public enterprises are to be increasingly sold to the wor(ers and general public< with a view to increasing the participation of private individuals1 +i! * large part of industrial investment of the private sector to be financed byF

.ational 'ndustrial Finance 'nstitutions1 )hese institutions< while sanctioning loans for the new pro-ects< used to e%ercise their right of =Conversion= invariably1 't implied the right of converting the loans into share capital by the Financial 'nstitutions1 )hus< the private firms were always under the constant threat of conversion1 *ccording to the .ew 'ndustrial $olicy< the Financial 'nstitutions will not insist on the conversion clause1 ,ith the e%pansion of privatiCation there is every possibility of increase in productivity and efficiency1 3" Globali*ation of Economy: /n s$ort. globali*ation means +a Reduction of trade barriers &it$ a !ie& to allo&ing free flo& of goods to and from t$e country" +b Free flow of foreign capital in terms of investment i1e1< direct and portfolio for ensuring conducive atmosphere1 +c Free flow of technology< and +d Free movement of labour and manpower1 0" Moderni*ation: .ew economic $olicy accorded high priority to modern techni@ues1 't aims at to augment the growth rate of sunrise industries1 'n order to import technical dynamics to 'ndian industry< the Govt< decided to clear all foreign collaborations1 $rivate entrepreneurs will be free to settle the terms of such collaborations on their own behalf1 0oreover< Govt has also been trying to stimulate private entrepreneurs to establish their own research and development centers by offering them various ta% concessions1 "fforts are also being made to revive and moderniCe the sic( industrial units both within the public and private sectors1 -" %e& 'ublic Sector 'olicy: $ublic sector attracted priority1 'n the words of 3r1 0anmohan Singh< Finance 0inister in Congress Govt1 that this priority was given to the public enterprises in the hope that it will help to accumulate capital< industrialiCation< economic growth and removal of poverty1 But none of these ob-ectives were achieved1 )hus< new economic reforms are trying to shift the emphasis from public to the private sector1