The senior management is working with the company Wahaca restaurant which has asked for producing the written report for providing the functions of the system of management accounting.
- The meaning of a system of management accounting as well as a reporting system that is used by the business.
- The explanation of the usage of the budgets for the control and planning process in business.
- The evaluation of various ways in which the company may use management accounting in order to deal with the financial issue.
In recent times, global warming is a hot issue that is the major concern for earth. From day to day the pollution level in increasing. It is highly contributing in global warming and polluting environment. it has forced countries to impose strict laws and regulations and take necessary steps to control pollution (Gunasekaran and et.al., 2015). Moreover, industries and businesses are making efforts to save ecosystem. This is main reason why government are forcing different industries especially auto mobile sector to manufacture electric vehicles. they are forcing them to produce and launch electric vehicles. it will benefit in reducing pollution level. This assignment describes about case study of India in where pollution level is arising from past years.
LO1 CASE STUDY
In recent times, there has been a high rise in temperature of earth atmosphere. This is due to global warming. There is need to reduce pollution level so that global warming can be controlled. India is country which is most populated and polluted. In a report of WHO, it has been stated that among 20, 14 cities of India are the most polluted one. There is a high rise in pollution level of country. it is due to emissions from transportation sector that has contributed to a great extent (Hair Jr and et.al., 2015). Also, India is still dependent on other countries for its oil requirement which is still 80%. Moreover, there has been high demand of petrol and diesel in transportation sector. it has raised from 40% to 70%. Thus, government is making efforts to produce electric vehicles. There are certain agencies involved in it like NEMMP and FAME. Furthermore, India is making efforts to implement concept of ecosystem. Many industries are implementing high technological devices and manufacturing electric vehicles. But from case study it can be identified that there are several problems which are being faced by government. These are classified below :-
- The major one is India is not having adequate infrastructure to launch electric vehicles. The country is lacking in many areas where they need to focus on improving its overall infrastructure ranging from electricity grids to development of roads. There is improper balance of electricity distribution (Heisig and et.al., 2016). This is due to developmental condition of states. In India there are many underdeveloped states. So, they have to depend on other states to fulfil their electricity needs. The country is having electricity failure due to overload on gird. This is the issue which is occurring for many years. It is creating problems in establishing base of electric vehicles.
- Another issue which is drawback of country is lack of natural resources. India is not having enough resources like lithium, nickel, cobalt, etc. these are crucial raw materials which are required in manufacturing battery. Without having adequate reserves of these resource, it is difficult to manufacture battery and cars. This issue is making it difficult for India to initiate EV in auto mobile sector. Therefore, in order to initiate EV concept India must requires all these sources.
- Another issue that exists in India is lack of advance technology. The country is not having enough proper and advance technological tools and equipment’s. moreover, in many rural areas there are no proper connectivity of internet (Trivedi and et.al., 2017). Alongside it, there is a hue gap between policies formulate and implemented. Other than this, it lacks manufacturing facilities of semiconductor and design. There are no such industries which are engaged in it.
From the above three issues, Indian government should focus on technological advancement. It is because with this a proper and adequate infrastructure can be set up. Through it, electricity grid and distribution system can be modified and customized. Moreover, advance software and application can be used to monitor and manage electricity consumption and distribution. Technology is the best way through which EV can be produced. Apart from it, it will enable in creating a base or platform on which EV can be implemented (Wamba and Carter, 2016). Furthermore, it will solve both the issues that is lack of technology and poor electricity infra. In addition government take reform new policies to set up battery producing industries. It will be beneficial in removing barriers and bridging gaps. Thus, having a stabilized and advance technology will fulfil basic requirement of auto mobile industry to produce electric cars.
LO2 SEARCH STRATEGY OF INFORMATION RESOURCES
Article 1- Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia.
In a research it can be analyzed that India is lacking technology in many areas. This is due to improper implementation of policy in semi urban areas. Many countries have implemented the E procurement concept. But in India there are three concerns relating to it that are lack of access to bid information, collusion among bidders, and corruption. It has given chance to business to lower their tender bid and acquire project. Likewise, it can reduce bidder collusion by providing tender information to firms outside a local cartel, allowing non-cartel firms to participate, and breaking up local bidding cartels (Meyer and Peng, 2016). There are many channels through which e procurement can be influenced. It has been identified that corruption in major issue which has restricted India in implementing e procurement. In addition to it, manual system is been highly used by business. this is due to its low cost and resources available. On other hand its cost very high for companies to apply e procurement. Hence, it has affected the quality of technology used by business. another issue is low quality of construction which is making e procurement implementation restricted. It has been analysed that there is high gap between rural and urban areas connectivity. It has made it difficult to proceed further to improve quality of construction. There are many other thing which can be used in
Business article 1 – Why India needs to take technology seriously.
In a World wealth report published on February 2018, it was claimed that India is second most unequal country in world where 54% of wealth s controlled by millionaires. It was evaluated that India national income is $1800 per year and almost 80% Indians earn low that average (Buckley and Ghauri, 2015). The rise in inequality is due to unequal growth of small business. the lack of technological infrastructure in health and education sector is escalating low quality of social life. As compared to US, India economic growth per hour of work is just 15% of it. the fall in productivity is making low growth. The lack of exports has reduced in decline in 10% of total exports. Also, the mainstay if livelihood of India people agriculture is resulted in generating low profits. the farmers are highly using labor, animals, etc. instead of technology. This has resulted in generating low output per hectare. The main problem is more than 835 of farmers hold 2 hectare of land and not capable of using technology. it might be due to unavailability of tools or equipment. Moreover, there is no innovation on technology which can be implemented or used by farmers. There is no proper system on how to give training to farmers. In addition, lack of connectivity between urban and rural areas make it difficult. Similarly, low range and poor quality of technology is resulting in failure. There are no proper policies and procedure on how to develop technology in rural areas. Aldo, due to it start ups are failing as there is lack of innovation (Kostova and Hult, 2016). This issue is leading nation in lack of technology. Thus, it can be concluded that India should take this issue very seriously. It will help them to increase their per capita income.
Business article 2- Why Indian firms don’t innovate-
There are many Indian firms who are not able to innovate in digitalization world. This is because of lack of research and development capability. Also, they do not like to invest large funds on technological development. R&D is most significant department of firm. it is because it helps in finding out growth opportunities. Furthermore, in India there is not proper facilities available to innovate. There are basically three reason behind it that are business environment, upgrading capability and quick runs. The environment in India is very complicated as it lacks opportunities. Many firms find it difficult to identify opportunities (Sekaran and Bougie, 2016). Moreover, they are not having a long term plan which allows them to innovate. Another factor is lack of upgrading capability. The Indian government are not having any programs related to upgradation for SME’s. this restricts them to initiate innovation. Moreover, many updates are done by big firms. Apart from this, many firms do not know what they have to do as they are not having any long term plan. It makes it difficult for them to innovate. Quick win is a barrier that restricts SME’s to innovate. They spend a huge amount of money on technology but it results in paying high tax. The Indian government impose high tax rate on firms who start earning more.
Lo 1 and Lo 2 CRITICAL APPRAISAL OF INFORMATION SOURCES
After analyzing case study, it can be concluded that there are several issues which is existing in India. Due to this, business environment is highly impacted. It may affect a particular industry or sector. also, it depends in government to take decision whether to produce EV or not. So, any change in external factor or core competencies affect decision taking. This is making it difficult for government as well as auto mobile industry to produce electric cars. Moreover, there is high rise in pollution level in India (Whitmore, Agarwal and Da Xu, 2015). so, if necessary, steps are not taken in particular time period it can result to major consequences. In order to determine whether India should take decision of launch of EV or not. By analyzing the article, it can be said that India will have a core competency in field of technology. there will be high quality of construction available through which connectivity can be improved. also, it will lead to improvement in agricultural sector and increasing per capita income. There will be vast number of opportunities for innovation. By this, start ups will grow and technology can be developed to enhance rural areas. Another core competency that can occur is it will bring in technological advancement in all areas. This will transform industries and businesses operating in country.
It can be described that technological change will create an evolution in India. it will assist companies in proceeding further towards developing new products and services. Its main benefit can be taken by auto mobile sector which will enable in manufacturing electric cars. For example- if decision is taken by government to launch new vehicle, it will be beneficial for other companies to start producing it. they will get an opportunity to invest in Indian market and earn profits. apart from this, it will automatically impact on business environment. Companies will use bring in advance technology and establish a base through which EV can be produced. India will gain a competitive advantage in world economy. on contrary it will not create core competency as many countries are already engaged in manufacturing EV. They are far away from India in terms of this concept. Also, India is lacking behind in terms of technological innovation and less capability of SME to innovate. This is due to few opportunities which exists in Indian economy. there are many other problems that can make it difficult for government take effective decision. Such issues like technological infra and lack of awareness, etc. it has been identified that there is not proper mechanism through which technology can be updated.
In research article it can be identified that implementation of EV requires a proper and complete structure through which project can be taken further (Mendenhall and et.al., 2017). Moreover, it can be identified that India can become a leader in technology if EV are launched. It provides a better market and opportunity for auto mobile companies to operate there. There will be high competition among them to provide vehicles at low price. Due to launch of EV, competition level will increase. it will force big firms to manufacture vehicles. Other than this, it can improve infrastructure and increase in per capita income.
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In another article it is concluded that India auto mobile sector is having an intense competition within country. there are many companies which are providing variety of cars to people. Also, the business environment of nation remains stable. The change in political factor not highly impact on auto mobile as focus is on producing EV. Alongside it, central government supports state authority to initiate these projects. For example – in Delhi CNG buses are run by government. it is helping in reducing pollution. There are key changes in laws and regulations related to emission of vehicles in India. It has forced auto mobile companies to stop production BS3 vehicles. In the future only, BS 4 and BS 6 vehicles will be allowed. So, it will create a great impact on overall industry (Wamba and Carter, 2016). Other than this, people are highly concern about protecting environment. Due to this, they are purchasing average vehicles. Furthermore, any change in social or technological factor will be beneficial for companies. Hence, it can be said that launching of new vehicles in India will give an advantage. Besides this, it has been analyzed that business environment in India is constantly changing. There are high fluctuation in oil prices and currency rate. so, it will be useful in generating high profits for business. with help of FDI, they can bring technology with them. Also, in India labor are easily available at low cost, so all these will support government and organizations to launch new vehicles.
By analyzing the above it can be stated that both core competencies and business environment can either create a positive or negative impact on auto mobile sector in India. the change in external factors will interrupt business environment. Here, it will be beneficial for sector to launch EV. Also, change will enforce other organization to produce EV. The government can take necessary steps to develop a long term plan on how technology updation will be done. Through this, an adequate structure can be built that leads to taking right decision by government in launching of new vehicles (Meyer and Peng, 2016). Increase in competition in auto mobile sector will allow business to produce vehicles at low prices. They will target middle class people and set up a standard price on basis of which vehicle will be sold.
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CONCLUSION AND RECOMMENDATIONS
It can be concluded that in India rise in pollution level in major issue. this is because of increase in population and demand of vehicles. Transportation industry is majorly contributing in pollution level. Indian government has taken major steps to initiate production of electric vehicles. But there exist many issues like lack of infrastructure and advance technology due to which it is not possible for India to implement this concept. any change in external factor or core competencies affect decision taking. This is making it difficult for government as well as auto mobile industry to produce electric cars. Also, there is no sufficient amount of resources such as lithium, cobalt, etc. Thus, these must be overcome to manufacture EV and saving the ecosystem.
Recommendation- there are several recommendations that can be followed by India. these are as follows :-
In order to fulfil their demand of natural resources, India can sign a memorandum of understanding (MOU) with countries like Brazil, Chile, etc. who are having high reserves of these. It will be beneficial for them to import it and manufacture batteries.
India should reform policies to reduce gap between local and national region related to use share of technology. Moreover, new policies must be developed to initiate industries to manufacture batteries.
India should provide subsidies to people for buying electric cars. This will encourage them to purchase it. also, government should ban vehicles which are 20 years old and ban the production of those which emits high level of pollutant in environment.
India must integrate with other countries to exchange technology so that it is beneficial for them to invest in country. this will lead to technological advancement within nation.
A separate committee or industry should be developed to monitor and provide all basic necessity or resources required to produce electric vehicles. Along with it, guidelines and policies should be issued or formed for auto mobile companies.
There must be annual proportion set by government to contribute in electric vehicle by auto mobile sector. so, that each company will make an effort in building a base for it.