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Indian Economy

Notes public sector unit can be efficiently restructured or whether it has to be closed down. As on
November 30, 1999, 240 cases of public sector units were mentioned to the BIFR, of these, 170
were recorded and 29 of these cases were suggested for winding up.
To assuage resentment among workers, the government has established a National Renewal
Fund (NRF). This fund is to be utilised for retraining and redeployment of economised labour
and to offer compensation to public sector employees attempting voluntary retirement.

Memorandum of Understanding

You need to know that the concept of Memorandum of Understanding was launched in 1988. The
main goal of the MOU was to decrease the Quantum of control and improve the quality of
accountability. Through the MOU, more autonomy was given to PSUs. It intends at moving the
management of public enterprises from the management by controls and processes to
management by results and goals.

Self Assessment

Fill in the blanks:
1. In 1991, …………………… were also brought within the jurisdiction of the Board for
Industrial and Financial Reconstruction (BIFR).
2. The concept of …………………… was introduced in 1988.

3. The main objective of the MOU was to reduce the …………………… of control and increase
the quality of accountability.
4. Through the MOU, more autonomy was given to …………………….
5. The objective of operational measures is to improve …………………… of the organisation.

Caselet Domino’s: The case of the Impact of Socio Culture
Environment

omino’s the 50 year old Pizza Brand is continuously reinventing itself in a bid to
stay abreast of the changing times. Since April 2008, the Pizza chain has added 93
Doutlets in 23 cities. Dominos is the fastest growing pizza chain in South Asia. As
per the Food Franchisee report, Domino’s have a 65% market share in the Pizza delivery
segment. Domino’s is present in 55 cities and have over 274 stores. Domino’s Pizza India
Ltd. a subsidiary of the US based Domino’s Pizza Ltd. began operations in India in 1996
under the Shyam Bhartiya and Hari Bhartiya – promoted Jubilant Group. Over the years,
Indian Private Equity Fund and Indocean Pizza Holding bought a 32% stake in it (the
promoters own an approximately 67% stake).
Jubilant food is planning to raise ` 300 crore through IPO to reduce its debt burden and
fund its ambitious plans. In next 18 months, it plans to grow to 440 outlets with aggressive
expansion into Tier II and Tier III cities. In future, the company wishes to introduce other
local and international cuisines to its product portfolio and widen its distribution to make
itself available at metros, railway stations and airports.

Pizza was doing well with young people. Pizza is seen as a snack and not considered as a
meal option. In a survey at New Delhi in a Pizza Chain, it is found that in 67% case Pizza
Contd...

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