MBA II SEMESTER

BUSINESS ENVIRONMENT

Hours / Week Marks

Year Semester C
L T P/D CIE SEE Total
I I 3 - - 3 40 60 100
Pre-requisite Nil
COURSE OUT COMES:
1. Define the business and related factors; and business’s dependency on the interactions
with different environmental variables.
2. Develop analytical skills and widen the understanding of macro environmental issues by
applying the knowledge of macroeconomic policies and their impact on business
organization and strategy.
3. Evaluate the Political, Economic, Legal, Technological, Social and International
environment with focus on their impact on business.
4. Appraise the business environment prevailing in India and in the world understand its
implications to business
5. Summarize Indian Industrial policies and their implications on business

UNIT-I: Overview of Business Environment: The Nature of Business Environment –

Significance of Business Environment –Types of Environments: internal Environment–
External Environment. Competitive Structure of Industries: Competitor Analysis –
Environment Analysis.

UNIT-II: Industrial Policy and LPG: Five year planning in India –Industrial policy up to
1991 – Industrial licensing policy –Significance and Role of FDI –Factors affecting
International investments –evaluation of new FDI policy - Indian trade Policy

Liberalization, Privatization and Disinvestments, LPG in India, Special Economic Zone

(SEZ)and their role and impact in International Business Environment, World Trade
Organization (WTO).

UNIT-III: Economic Environment of Business: Economic Growth & National Income –

Economic Systems &Business Environment –Economic Reforms & Structural Adjustment in
India. Fiscal Policy –Union budget & Taxation, Monetary Policy – Banking Sector Reforms
in India.

UNIT-IV: Political and Legal Environment of Business: Critical elements of Political

Environment – constitutional framework of India – the role of Government in Business –
Changing Dimensions of Legal Environment in India – MRTP Act –FEMA Act – Consumer
Protection Act – Competition Act 2002.

UNIT-V: Socio-Cultural and Technological Environment of Business: Elements of Social

–Cultural Environment – Consumerism in India – Corporate Social Responsibility -
Technological Environment in India – Policy on Research and Development – Patents laws -
Technology Transfer.
TEXT BOOKS:
1. Justin Paul: Business Environment – Text & Cases, TMH, 2009
2. Shaikh & Saleem -Business Environment (Pearson, 2ndEdition)

REFERENCE BOOKS:
1. K. Aswathappa: Essentials of Business Environment, 9/e. Himalaya, 2009
2. Misra&Puri: Indian Economy, Himalaya, 2009
3. Palmer, Professor Adrian, Hartley, Bob, The business environment, McGraw-Hill
Education
4. Saleem, Shaikh, Business Environment, Pearson Education India.
5. Sundaram, Black, The International Business Environment: Text and Cases,Pearson
Education India.