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New Business System

Chapter 1
Introduction and Overview of Study

1. Introduction:
The opening up of the Indian economy and strong GDP growth rate has put India as one of the strongest emerging economies in the world. As a result there have been ever increased business opportunities across the globe. At the same time Indian companies have been exposed to the open competition from the world class companies in each areas of operation. Even the companies which were once controlled and protected by the government are now open to the competition. There is no certainty about future, only the fittest will survive. Therefore, companies can be classified only in two categories: first World class and another Dead class, there will not be any place for non-performing and mediocre companies. Joint ventures, Mergers and acquisitions have become routine.
In such a scenario, companies are always under pressure to perform better. They have to chalk out best strategies for themselves. Strategies result into companies’ top and bottom line only when they are executed smartly. Here lies the importance of Management Control System, which is a process by which senior managers ensure that subordinate managers; efficiently and effectively strive to attain the organization’s strategies.
Aviation industry is booming as never before. There has been multifold growth in both military and civil aviation. The defense spending has gone up substantially over the years. In past five years defense capex has almost doubled, the details are as follows:

|Year |Capital |Revenue |Total |
|2002-03 |21,569 |43,331 |65,000 |
|2003-04 |20,952 |44,348 |65,300 |
|2004-05 |33,483 |43,517 |77,000 |
|2005-06 |34,375 |48,625 |83,000 |...