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Influence of government in China 

US based Google started providing its services in China in2000.

In 2002 Google became the leading search engine in theChinese market.

But the content of search had to pass through Chinesefirewalls, which often stalled the browser and slowed itdown.

Then the data received from US servers was then filtered byChinese government and censored the data that violated theGovt. regulations.

But this slowed down the speed of internet and the usersfound it inefficient to use.

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In 2005,a Chinese search engine company, Baido became

 popular, bcoz it was 7 times faster than Google as the

company filtered the content itself.

Google lost its market share in china but still to have its presence in china it tried to compete by having its own

servers in China.

But again after setting up the local servers, Google had to

take a license known as ³Internet Content Provider License¶that kept a restriction on sensitive data transferred by Google.

As a result, finally users found the content of Google to be

less reliable and also Google was unhappy with the services it

 provided in China and this brought end of Google- China.

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US SERVER

CHINESEFIREWALL

CHINESEINTERNET

SERVICE

TRANSPONDER

CENSORED

CONTENT

SERVICE

PROVIDER

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Other examples of how Bounded Rationality bringschanges in business decisions are :

Different players of Airline Industry recentlyincreased the air fares unexpectedly high tomaximize their profits.

But the Aviation Ministry interfered to bring downthe escalating fares and relieve the customers. Thus, the influence of Govt. limits the profit of many

companies.

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³There is no case for 

capping airfare either up or 

down in a liberalisedenvironment. However, if 

the government chooses to

do so, it will have to look 

comprehensively at bothsides of the equation," said

Vijay Mallya, chairman of 

Kingfisher Airlines.

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The idea that executives should makedecisions according to what their intuition

or gut tells them.

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Hitachi is going beyond the application of 

new technology that has been developedfor new power plants to old facilities

Hitachi is making use of IT, which has

developed rapidly in recent years, toprovide global services that contribute to

life-cycle cost minimization for powergeneration facilities

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Steve jobs the charismatic Apple founder pioneered

several industries.

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Jobs twice altered thedirection of thecomputer industry.

(i) In 1977 the Apple IIkicked off the PC era,and the graphical user

interface launched byMacintosh in 1984 hasbeen aped by every othercomputer since.

(ii)Jobs conceived of "desktop publishing,"gave the world the laserprinter, and pioneeredpersonal computernetworks.

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He persuaded themusic industry, the

television networks,andHollywood to lethim show them how todistribute their wares

in theD

igital Age withthe iTunes Music Store.

Five industries thatJobs has upended

i.computers,ii.Hollywood,Iii.music,iv.retailing,

v.wireless phones.

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We don't think in terms of power," says Jobs."We think about creating new innovativeproducts that will surprise and delight ourcustomers.

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THANK YOU!!!!!