Managerial response to change in the business environment. Following are the ways in which companies are responding to change in business environment.1. Acquisitions and Mergers - To achieve the objectives of market dominance, market entry, expand product range and obtain core competencies , the Indian business enterprises are also indulging in mergers and acquisitions. Initiative for same has naturally come from managers of such companies. Examples: Mergers between ACC Gujarat, Ambuja Cement, Hindustan Aluminium Co and Indian Aluminium Co. Reliance gaining control over management of L & T is an example of acquisition.2. Diversification spree - Managers are leading diversification of their companies into various fields. For example, Reliance is now also in the business of communications, retail chains etc. Likewise, Eureka Forbes, a firm that manufactured vacuum cleaners started making water purifiers, food processors.3. Consolidation of Multinational- Due to liberalisation policy, many multinationals have entered India through joint ventures. This give the new firm the benefit of technology and finance and the MNC could take the advantage of the domestic firm’s market reach and distribution network. For example General Motors entered through a joint venture with Hindustan Motors. Ford entered with Mahindra & Mahindra. Multinationals are also entering the core sectors of the Indian economy.4. Brand building - Companies are becoming more aggressive towards brand building. Their managers are spending huge amount on same. Focus is on securing prime positions for their brands through creative media –mix, in the minds of the customers. For example heavy expenditure was incurred on launching of Korean brands such as Hyundai, LG, Samsung, etc. Indian companies are also doing likewise.5. Distribution and Selling - Increase in selling and distribution of product was taken as a core step to grab a larger share of market. Companies are now taking new initiatives in distribution such as exploring the rural markets or using direct distribution networks as adopted by companies like Amway ,Tupperware etc.6. Customer focus - Before the entry of MNC’s in the Indian market, the Indian firms would focus on higher sales and profits but nowadays, they have started manufacturing products in accordance to customer’s need and stressed on customer satisfaction. Also due to increase in competition among sellers, the rate of increase in prices of products was lesser than the general level of inflation.7. Sharply improved Compensation levels - Compensation levels for specialised managerial and technical staff improved. The starting salary of engineering and management graduated have risen significantly .Incentive schemes related to performance are being implemented very commonly now.8. Use of latest Technology - Use of latest technology has become the slogan of the successful companies. Use of latest technology has not only enabled firm to upgrade its quality but has also reduced the cost of production and distribution of goods.9. Increase Production capacity - Because of abolition of licensing and removal of restriction on expansion of business activities, companies increased their production capacity and started catering to domestic and global markets. For example Companies like Ranbaxy, Reliance industries and others increased their production capabilities and made them world class.10. Cooperation with Labour Unions - Contrary to their role in past , labour unions have become supportive to changes in the organisationbecause they have understood that finally workers will benefit due to such changes .Managers are changing their behaviour towards labour. Labour is also benefitted through higher wages and other facilities like training to upgrade their skills and job enrichment. Private sector is benefitted because of this change but public sector however was unable to adapt to these changes primarily because of political and bureaucratic interference.