JUST LIGHTING CASE STUDY ( Domestic and International Sourcing) Just lighting is
ID: 334333 • Letter: J
Question
JUST LIGHTING CASE STUDY ( Domestic and International Sourcing)
Just lighting is an enterprise in London Ontario which currently sells light fitting from various manufactures to a growing market of contractors and developers. It has grown from a $1 million turnover to a $5 million turnover organization. It does not have any borrowing or loans as it has a sound cash flow. Just lighting owns a facility comprising of an office block, a small warehouse and a large packing area for future expansion. The owner of Just Lighting has always been recognized as an honest and religious man and has run his business the same way. However, he retired a year ago and his son-in-law has taken over the CEO position on the board.
One product which is very price sensitive in the market is a fluorescent surface mounted light fitting called the Con fitting, which makes up 30% of their turnover. The largest volume comes from the 4 foot, 2 lamp (36 watt) fluorescent range.
The marketing Manager, Sparky has recently reported that one of their largest customers has just landed a five year contract to refurbish a number of large low cost commercial buildings which need to upgrade their lighting, to meet the new code. The order is pending subject to Just lighting giving a firm price on 500,000 units. The requirements for this project are the same for each year
As Just lighting wants to grow its market share but sees this order as strategic, it has decided to set up a cross functional team made up of the Marketing Manager, Accountant, Inventory and Logistics Manager and the Purchasing Manager, to come up with a plan. The Purchasing Manager, Chris is responsible for compiling a proposal for the CEO recommending outsourcing or insourcing the additional volume of Con fittings.
Sparky has recommended that Just Lighting should continue to purchase the fitting from the existing supplier, Strip Lighting Manufactures. See exhibit for pricing history. Strip Lighting has been the only supplier of the Con fitting range and the relationship has been a good one although the Accountant, Bookie, has been expressed his concerns about the dinners the supplier lays on for the Just Lighitng customers and some senior staff at expensive restaurants. Sparky responded that is how business is done and the new CEO really enjoys his parties. He added, “Besides, if you don’t then you will lose your customers.”
Chris, did some research to ‘feel out the market’. One option, which showed potential, was to import the Con fitting from INCO Lighting in South Africa (See exhibit 2)
INCO Lighting had a good reputation but it would mean having to employ a person to manage the shipments and logistics, not mentioning a potential problem with the existing warehouse space if too many containers come all at once.
The Inventory and Logistics Manager, Sharon, suggested Just Lighting make their own 2 lamp 4 foot Con fittings. Bookie did some calculations with input from Chris to analyze the cost of setting up a fabricating and assembling lines at Just Lighting (See exhibit 3). Sharon became the concerned about how she would cope with all the addition components, volumes as well as the increased value tied up in inventory. However, she remembered about ABC analysis from her Fanshawe College days and she decided to look it up in her textbook.
Strip Lighting had just put on a large Christmas party for all of Just Lighting customers and senior staff and this year gave each wife a Zumba robotic vacuum cleaner. They were surprise that Just Lighting was even considering other options!
Exhibit 1
Details of Strip Lighting are as follows:
Quoted Price: $50.00 FOB Destination (Canadian Dollars)
Quantity Discount Structure: See chart below
Warranty: covers the free replacement of nay faulty product.
Inventory Costs: Strip Lighting uses a Third Party Logistics Provider, which operates a JIT (Just-in-time) process to the customers
Discounts Offered
Amount Spent
Discount offered
Up to
$2,500
2.5%
Up to
$5,000
5.0%
Up to
$7,500
7.5%
Up to
$10,000
10.0%
Up to
$20,000
12.5%
Up to
$30,000
15.0%
Over
$30,000
15.0%
Total Cost Analysis - Outsourcing Local
Cost Description
Unit Cost
Net Price
Quality Costs
Inventory Safety Costs
Inbound Transport Costs
Total Cost
Exhibit 2
Details of INCO Lighting are as follows:
Quoted Price: USD 28.00 CIF INCO Terms 2010
Exchange Rate: 1 Canadian Dollar = 0.80 USD
Additional importing costs including customs clearing, forwarding agents fees and inbound transport is estimated at $4.50 per fitting.
Quantity Discount Structure: $200 per faulty fitting
Supplier’s Defective level: 5000ppm
Inventory Costs: Assume one month’s average stock level, which costs 15% per annum on the value of Inventory.
The additional workload will require one imports controller costing $50,000 per annum plus 30% benefit costs.
Total Cost Analysis - Outsourcing Overseas
Cost Description
Unit Cost
Net Price
Inbound Transport Costs
Quality Costs
Inventory Safety Costs
Additional direct labour
Total Cost
Exhibit 3
The information on the direct material is as follows:
Steel: Pre-Painted Cold Rolled 0.8mm coil from the United States supplier Steel Coils
Price: USD 520/MT FOB Shipping Point (MT = Metric Ton)
Exchange Rate: 1 Canadian Dollar = 0.80 USD
Steel Mass for each fitting: 5kgs
Inbound Transport: $100/MT
Electrical direct materials (Ballasts, Wiring harness, lamp holders and starters) $20 per fitting
Assembly line runs 320 units per day at a cost of $5.20 per unit.
Factory Overheads are estimated at $5.20 per unit
No degreasing or painting is required
Tooling Costs: All tooling costs = $500,000 and will last for 500,000 units.
Depreciation cost: 8 x CNC Punching and bending machines with de-coilers. Life expectancy for each CNC machine is five years. Each CNC machine cost $200,000.
Finance costs were considered not necessary or important to the decision by the team. However, Bookie protested.
Learning Curve
Units
Total Labour Hours
Average Labour Hours
Learning Rate
10
3
20
5.4
40
9.7
80
17.4
160
31.2
320
56
640
100.6
1280
181
Total
Total Cost Analysis - Insourcing
Cost Description
Unit Cost
Steel Direct Material
Electrical Direct Material
Machine Operators
Direct Assembly labour
Factory Overhead
Degreasing and Painting
Tooling Costs
Depreciation of the equipment
Total Cost
Questions:
1. Identify the immediate issues and other issues concerns.
2. Perform the situational Analysis (SWOT, PESTLE and POTERS 5 forces)
3. Determine the all total cost analysis (insourcing & Outsourcing) in briefly manner with all calculation steps.
4. Identify at least three alternatives which are well described and clearly related to the organizational goals and developed from the situational analysis.
5. Make a final recommendation. Identify the risk management processes and its matrix.
6. Make an implementation timeline chart and conclusion.
Discounts Offered
Amount Spent
Discount offered
Up to
$2,500
2.5%
Up to
$5,000
5.0%
Up to
$7,500
7.5%
Up to
$10,000
10.0%
Up to
$20,000
12.5%
Up to
$30,000
15.0%
Over
$30,000
15.0%
Explanation / Answer
Lesson 1
BUSINESS AND ITS ENVIRONMENT
NATURE OF BUSINESS
Business may be understood as the organized efforts of enterprise to
supply consumers with goods and services for a profit. Businesses vary in size,
as measured by the number of employees or by sales volume. But, all businesses
share the same purpose: to earn profits.
The purpose of business goes beyond earning profit. There are:
• It is an important institution in society.
• Be it for the supply of goods and services
• Creation of job opportunities
• Offer of better quality of life
• Contributing to the economic growth of the country.
Hence, it is understood that the role of business is crucial. Society cannot
do without business. It needs no emphasis that business needs society as much.
BUSINESS TODAY
Modern business is dynamic. If there is any single word that can best
describe today’s business, it is change. This change makes the companies spend
substantially on Research and development (R & D) to survive in the market.
Mass production and mass marketing are the norms followed by business
enterprises. The number of companies with an annual turnover of Rs.100 crore
each was only three in 1969-70.The figure has gone up by hundreds these days.
Today’s business is characterized by diversification, which may be:
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Concentric Diversification - It refers to the process of adding new, but relates
products or services.
Horizontal Diversification - Adding new, unrelated products or services for
present customers is called horizontal Diversification.
Conglomerate Diversification - It refers to adding new and unrelated products
or services.
Going international is yet another trend followed by modern business houses.
Business houses are exposed to global competition, which argues well for
consumers. Also occupying a major role is science in the global economic
scenario.
BUSINESS IN 21ST CENTURY
Large organizations, with a large workforce will not exist. They will be
‘Mini’ organizations. Business during the 21st century will be knowledge-based,
tomorrow’s manager need not spend his time on file pushing and paper-shufling.
Information technology will take care of most of that work. Organizations will
become flat. Linear relationship between the boss and manger and authority
flowing downwards and obedience upward will disappear. Employees will have
no definite jobs. Most of the jobs will last for two to five years. Remuneration
will depend on one’s contribution to organization.
BUSINESS GOALS
Profit - Making profit is the primary goal of any business enterprise.
Growth - Business should grow in all directions over a period of time.
Power - Business houses have vast resources at its command. These resources
confer enormous economic and political power.
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Employee satisfaction and development - Business is people. Caring
for employee satisfaction and providing for their development has been
one of the objectives of enlightened business enterprises.
Quality Products and Services - Persistent quality of products earns
brand loyalty, a vital ingredient of success.
Market Leadership - To earn a niche for oneself in the market,
innovation is the key factor.
Challenging - Business offers vast scope and poses formidable
challenges.
Joy of creation - It is through business strategies new ideas and
innovations are given a shape and are converted into useful products and
services.
Service to society - Business is a part of society and has several
obligations towards it.
BUSINESS ENVIRONMENT
Environment refers to all external forces, which have a bearing on the
functioning of business. Environment factors “are largely if not totally, external
and beyond the control of individual industrial enterprises and their
managements. The business environment poses threats to a firm or offers
immense opportunities for potential market exploitation.
TYPES OF ENVIRONMENT
Environment includes such factors as socio-economic, technological, supplier,
competitor and the government. There are two more factors, which exercise
considerable influence on business. They are physical or natural environment
and global environment.
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Technological Environment
Technology is understood as the systematic application of scientific or other
organized knowledge to practical tasks. Technology changes fast and to keep
pace with it, businessmen should be ever alert to adopt changed technology in
their businesses.
Economic Environment
There is close relationship between business and its economic environment.
Business obtains all its needed inputs from the economic environment and it
absorbs the output of business units.
Political Environment
It refers to the influence exerted by the three political institutions viz., legislature
executive and the judiciary in shaping, directing, developing and controlling
business activities. A stable and dynamic political environment is indispensable
for business growth.
Natural Environment
Business, an economic pursuit of man, continues to be dictated by nature. To
what extend business depends on nature and what is the relationship between the
two constitutes an interesting study.
Global or international Environment
Thanks to liberalization, Indian companies are forces to view business issues
from a global perspective. Business responses and managerial practices must be
fine-tuned to survive in the global environment.
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Social and culture Environment
It refers to people’s attitude to work and wealth; role of family, marriage,
religion and education; ethical issues and social responsiveness of business.
ENVIRONMENT – BUSINESS RELATIONS
Business is the product of the technological, political-legal, economic, social –
cultural, global and natural factors amidst which it functions. Three features are
common to this web of relationship between business and its environment.
• There is symbolic relationship between business and its environment and
among the environmental factors. In other words, business is influenced
by its environment and in turn, to certain degree, it will influence the
external forces. Similarly, political-legal environment influences
economic environment and vice versa. The same relationship between
other environment factors too.
• These environmental forces are dynamic. They keep on changing as
years roll by, so does business.
• The third feature is that a particular business firm, by itself, may not be
in a position to change its environment. But along with other firms,
business will be in a position to mould the environment in its favor.
IMPORTANCE OF ENVIRONMENTAL STUDY
The benefits of environmental study are as follows;
• Development of broad strategies and long-term policies of the firm.
• Development of action plans to deal with technological advancements.
• To foresee the impact of socio-economic changes at the national and
international levels on the firm’s stability.
• Analysis of competitor’s strategies and formulation of effective countermeasures.
• To keep oneself dynamic.
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ENVIRONMENTAL ANALYSIS PROCESS
The analysis consists of four sequential steps:
Scanning
It involves general surveillance of all environmental factors and their
interactions in order to:
• Identify early signals of possible environmental change
• Detect environmental change already underway
Monitoring
It involves tracking the environmental trends, sequences of events, or streams of
activities. It frequently involves following signals or indicators unearthed during
environmental scanning.
Forecasting
Strategic decision-making requires a future orientation. Naturally, forecasting is
an essential element in environmental analysis. Forecasting is concerned with
developing plausible projections of the direction, scope, and intensity of
environmental change.
Assessment
In assessment, the frame of reference moves from understanding the
environment- the focus of scanning, monitoring and forecasting – to
identify what the understanding means for the organization. Assessment,
tries to answer questions such as what are the key issues presented by the
environment, and what are the implications of such issues for the
organization.
7
Lesson 2
CORPORATE GOVERNANCE, SOCIAL RESPONSIBILITY AND
BUSINESS ETHICS
CORPORATE GOVERNANCE
Corporate failures and widespread dissatisfaction with the way many corporate
functions have led to the realization, globally, of the need to put in place a
proper system for corporate governance.
Corporate governance is concerned with holding the balance between
economic and social goals and between individual and communal goals.
The governance framework is there to encourage the efficient use of
resources and equally to require accountability for the stewardship of
those resources.
The aim is to align as nearly as possible the interest of individuals,
corporations, and society. The incentive to corporations and to those who
own and manage them to adopt internationally accepted governance
standards is that these standards will help them to achieve their corporate
aims and to attract investment.
The incentive for their adoption by states is that these standards will
strengthen the economy and discourage fraud and mismanagement.
RELEVANCE
At least three reasons have triggered off concern in corporate governance
in our country.
• Since 1991, the country has moved into liberalized economy and
one of the victims of the market-based economy is transparent fair
business practice. Several instances of mismanagement have been
alleged, with some well-known and senior executive being hauled
8
up for non-performance and /or non-compliance with legal
requirements.
• Both domestic as well as foreign investors are becoming more
demanding in their approach towards the companies in which they
have invested their funds. They seek information and want to
influence decisions.
• Interests of non-promoter shareholder and those of small investors
are increasingly being undermined. Several MNCs have sought to
set up 100 percent subsidiaries and transfer their businesses to
them .In many cases, there was no thought of consultation with
non-promoter shareholders.
In this context, some norms of behavior to ensure responsive behavior
are of great help. Hence, corporate governance.
FOCUS
Corporate governance is concerned with the values, vision and visibility. It is
about the value orientation of the organization, ethical norms for its
performance, the direction of development and social accomplishment of the
organization and the visibility of its performance and practices.
Corporate management is concerned with the efficiency of the resources use,
value addition and wealth creation within the broad parameters of the corporate
philosophy established by corporate governance.
IMPORTANCE
• Studies of firms in India and abroad have shown that markets and
investors take notice of well-managed companies, respond positively to
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them, and reward such companies, with higher valuations. In other words
they have a system of good corporate governance.
• Strong corporate governance is indispensable to resilient and vibrant
capital markets and is an important instrument of investor protection.
• Corporate governance prevents insider trading.
• Under corporate governance, corporates are expected to disseminate the
material price sensitive information in a timely and proper manner and
also ensures that till such information is made public, insiders abstain
from transacting in the securities of the company.
• The principle should be ‘disclose or desist’. Good corporate governance,
besides protecting the interests of shareholders and all other
stakeholders, contributes to the efficiency of a business enterprise, to the
creation of wealth and to the country’s economy.
• Good corporate governance is considered vital from medium and longterm
perspectives to enable firms to compete internationally in sustained
way and make them, not only to improve standard of living materially
but also to enhance social cohesion.
PRE-REQUISITES
A system of good corporate governance requires the following:
• A proper system consisting of clearly defined and adequate structure
of roles, authority and responsibility.
• Vision, principles and norms, which indicate development path,
normative considerations, and guidelines and norms for performance.
• A proper system for guiding, monitoring, reporting and control.
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SOCIAL RESPONSIBILTY
Social responsibility is the obligation of decision-makers to take actions, which
protect and improve the welfare of society as a whole along with their own
interests. Every decision the businessman takes and every action he
contemplates have social implications.
Be it deciding on diversification, expansion, opening of a new branch, and
closure of an existing branch or replacement of men by machines, the society is
affected in one way or the other. Whether the issue is significant or not, the
businessman should keep his social obligation in mind before contemplating any
action.
ARGUMENTS FOR SOCIAL RESPONSIBILITY
• Business has to respond to the needs and expectations of society.
• Improvement of the social environment benefits both society and
business.
• Social responsibility discourages additional governmental regulation and
intervention.
• Business has a great deal of power, which should be accompanied by an
equal amount of responsibility.
• Internal activities of the enterprise have an impact on the external
environment.
• The concept of social responsibility protects interests of stockholders.
• Social responsibility creates a favorable public image.
• Business has the resources to solve some of society’s problems.
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• It is better to prevent social problems through business involvement than
to cure them.
ARGUMENTS AGAINST SOCIAL RESPONBILITY
• Social responsibilities could reduce economic efficiency.
• Social responsibility would create excessive costs for business.
• Weakened international balance of payments
• Business has enough power, and social involvement would further
increase its power and influence.
• Business people lack the social skills necessary to deal with the problems
of society.
• Business is not really accountable to society.
SOCIAL STAKEHOLDERS
Managers, who are concerned about corporate social responsibility, need to
identify various interest groups which may affect the functioning of a business
organization and may be affected by its functioning. Business enterprises are
primarily responsible to six major groups:
• Shareholders
• Employees
• Customers
• Creditors, suppliers and others
• Society and
• Government.
These groups are called interest groups or social stakeholders. They can be
affected for better or worse by the business activities of corporations.
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SOCIAL RESPONSIVENESS
Social responsiveness (SR) is “the ability of a corporation to relate it operations
and policies to the social environment in ways that are mutually beneficial to the
company and to society”.
In other words, it refers to the development of organizational decision processes
whereby managers anticipate, respond to, and manage areas of social
responsibility. The need to measure the social responsiveness of an organization
led to the concept of social audit.
The social responsiveness of an organization can be measured on the basis of the
following criteria:
• Contributions to charitable and civic projects
• Assisting voluntary social organizations in fund-raising
• Employee involvement in civic activities
• Proper reuse of material
• Equal employment opportunity
• Promotion of minorities
• Direct corporate social responsiveness investment
• Fair treatment of employees
• Fair pay and safe working conditions
• Safe and quality products to consumers
• Pollution avoidance and control
BUSINESS EHTICS
The two issues - an organization’s social responsibility and
responsiveness- ultimately depend on the ethical standards of mangers. The term
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ethics commonly refers to the rules or principles that define right and wrong
conduct. Ethics is defined as the “ discipline dealing with what is good and bad
and with moral duty and obligation”. Business ethics is concerned with truth and
justice and has a variety of aspects such as expectations of society, fair
competition, advertising, public relations, social responsibilities, consumer
autonomy, and corporate behavior in the home country as well as abroad.
TYPES OF BUSINESS ETHICS
Moral management
Moral management strives to follow ethical principles and precepts, moral
mangers strive for success, but never violate the parameters of ethical standards.
They seek to succeed only within the ideas of fairness, and justice.
Moral managers follow the law not only in letter but also in spirit. The moral
management approach is likely to be in the best interests of the organization,
long run.
Amoral management
This approach is neither immoral nor moral. It ignores ethical considerations.
Amoral management is broadly categorized into two types – intentional and
unintentional.
• Intentional amoral managers exclude ethical issues because they think
that general ethical standards are not appropriate to business.
• Unintentional amoral managers do not include ethical concerns because
they are inattentive or insensitive to the moral implications.
Immoral management
Immoral management is synonymous with “unethical” practices in
business. This kind of management not only ignores concerns, it is actively
opposed to ethical behavior.
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NEED FOR BUSINESS ETHICS
• Ethics corresponds to basic human needs. It is human trait that man
desires to be ethical, not only in his private life but also in his business.
These basic ethical need compel the organizations to be ethically
oriented.
• Values create credibility with public. A company perceived by the public
to be ethically and socially responsive will be honored and respected.
The management has credibility with its employees precisely because it
has credibility with the public.
• An ethical attitude helps the management make better decisions, because
ethics will force a management to take various aspects- economic, social,
and ethical in making decisions.
• Value driven companies are sure to be successful in the long run, though
in the short run, they may lose money.
• Ethics is important because the government, law and lawyers cannot do
everything to protect society.
ETHICAL GUIDELINES
• Obeying the law: Obedience to the law, preferably both the letter and
spirit of the law.
• Tell the Truth: To build and maintain long-term, trusting and win-win
relationships with relevant stockholders.
• Uphold human dignity: Giving due importance to the element of
human dignity and treating people with respect.
• Adhere to the golden rule: “Do unto others as you would have others
do unto you”
• Premium Non-Nocere: (Above all, do no harm)
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• Allow Room for participation: Soliciting the participation of
stakeholders rather than paternalism. It emphasizes the significance of
learning about the needs of stakeholders.
• Always Act When You Have Responsibility: Managers have the
responsibility of taking action whenever they have the capacity or
adequate resources to do so.
TOOLS FOR ETHICAL MANAGEMENT
• Top management commitment: Managers can prove their commitment
and dedication for work and by acting as role models through their own
behaviors.
• Codes of Ethics: A formal document that states an organization’s
primary values and the ethical rules it expects employees to follow. The
code is helpful in maintaining ethical behavior among employees.
• Ethics committees: Appointment of an ethics committee, consisting of
internal and external directors is essential for institutionalizing ethical
behavior.
• Ethics Audits: Systematic assessment of conformance to organizational
ethical policies, understanding of those policies, and identification of
serious deviations requiring remedial action.
• Ethics training: Ethical training enables managers to integrate employee
behavior in ethical arena with major organizational goals.
• Ethics Hotline: A special telephone line that enables employees to
bypass the normal chain of command in reporting their experiences,
expectations and problem. The line is usually handled by an executive
appointed to help resolve the issues that are reported.
16
Lesson 3
ECONOMIC SYSTEMS
MEANING
Economic system is a social organism through which people make their
living. It is constituted of all those individuals, households, farms, firms,
factories, banks and government, which act and interact to produce and
consume goods and services. Individuals and households put their
resources (land, labour, capital and skill) to one or more of their
alternative uses and make their living; firms buy factors of production
and organize them in the process of production, produce goods and
services, and sell them to their users to make projects.
Consumers are able to get the goods and services of their requirement; producers
are able to produce and sell various kinds of products in appropriate quantities
and so on. The system is operated by, What Adam Smith called “ invisible
hands”, the market forces of demand and supply.
A modern economic system is enormously complex. Millions of people
participate and contribute to its working in different capacities – as producers,
traders, workers, consumers and financers and so on. Thousands of people are
involved in production and distribution of single commodity. A community,
before it reaches its final consumer, passes through a complex process of
production and through a number of intermediary hands.
KINDS OF ECONOMIC SYSTEMS
Free Enterprise Economy
This economic system works on the principle of Laissez Faire system, i.e., the
least interference by the government or any external force. The primary role of
17
the government, if any, is to ensure free working of the economy by removing
obstacles to free competition.
A free Enterprise Economy is characterized as follows:
• Means of production are privately owned by the people who acquire and
posses them
• Private gains are the main motivating and guiding force for carrying out
economic activities
• Both consumers and firms enjoy the freedom of choice; consumers have
the freedom to consume what they want to and firms have the choice to
produce what they want to
• The factor owners enjoy the freedom of occupational choice, i.e., they
are free to use their resources in any legal business or occupation;
• There exists a high degree of competition in both commodity and factor
markets and
• There is least interference by the government in the economic activities
of the people; the government is in fact supposed to limit its traditional
functions viz, to defence, police, justice, some financial organizations
and public utility services.
Government Controlled Economy
The government-controlled economies are also called as Command, Centrally
planned or Socialist economies. Such economies are, in contradistinction to the
free enterprise economies, controlled, regulated and managed by the government
agencies.
The other features of a pure socialist economy are:
18
• Means of production are owned by the society or by the state in the name
of the community – private ownership of factors and property is
abolished;
• Social welfare is the guiding factor for economic activities – private
gains, motivations and initiatives are absent,
• Freedom of choice for the consumers is curbed to what society can
afford for all, and
• The role of market forces and competition is eliminated by law.
Mixed Economy
A mixed economy is one in which there exist both government and private
economic systems. It is supposed to combine good elements of both free
enterprise and socialist economies. A mixed economy is widely known as one,
which had both “public sector” (the government economy) and “private
sector” (the private economy). The private sector has features of a free
enterprise economy and the public sector has features of socialist economy. It is
important to note here that most economies in the world today are Mixed
Economies.
There are two different forms of the Mixed Economies.
• Mixed Capitalist Economies
A mixed Capitalist economy is a varient of the free enterprise economic system.
To this category fall the highly developed nations like the United States, U.K.,
France, Japan etc. though these economies have a very large government sector,
their private sectors work on the principles of the free enterprise system. The
government plays a significant role in preserving capitalist mode of production,
ensuring a workable competition in factor and product markets, providing
infrastructure for promotion of private sector economic activities.
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• Mixed Socialist Economies
To the category of the Mixed Socialist Economies belong the countries which
have adopted “ socialist pattern of society: and economic planning as he means
of growth and social justice (e.g. India) and the former communist countries (eg.
Russia and china) which have of late carried out drastic economic reforms and
liberalized their economies for private entrepreneurship. The government of
these countries takes upo
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