Macro Policy Intervention for Strategic Micro Business Environment Building Engineering

Macro level intervention through advocacy and lobbying to reduce Social cost is a tool to build up positive business environment and increase market share of micro level investors in rural parts of India and Russia. To engineer that from grass root to policy making authority’s level, we need to break some myths.

 

When we think of a flowing river’s curative engineering of toxic pour into her by diluting the concentration of toxin (read disintegrating molecules in smaller parts), we see how she decrease the quantum of intolerable dose to tolerable limit. Here we get the idea of business strategy required to intervene the markets with relatively low purchasing capacity.

 

For an example : An expensive branded Vodka of one litre bottle is unimaginable to access for rural Indian after paying huge tax and duties. Therefore they purchase locally brewed illegal spirit, many times found toxic and causing death and sickness adding huge social cost.

 

Arguably, without compromising quality of the brand, it can be marketed in small quantum (e.g. ‘peg’ size bottling) which is within their economic reach and provide them a perceived prestige, therefore huge increase of market share of the brand is expected.

 

Macro policy intervention scope :

 

(a)   Introduction of social cost reduction through incentivize micro level business as a policy matter taken by both governments.

 

It can be done through advocacy and lobbying bilateral administration level.

 

(b)   Create pressure to governments to invest more in advertisement and encouraging grass root level NGO’s to increase awareness.

 

In turn it will work as a tool for market education.

 

©    Threat : Mostly, politically influential are involved in illegal spirit business and will be hinderer to the initiative.

 

In next discussion we shall discuss about ‘scope of business in self sustaining economics of India and Russia for mutual growth in recent time of volatile world trade situation – steady state modeling’.

 

Thanks.