M.B.A.

I SEMESTER-II
Paper - XVI
BUSINESS ENVIRONMENT

The Objective of this course is to create awareness, understanding and interpreting

ability of the students regarding the business environment in India and the global
perspective of business. It will sharpen student’s ability to grasp the changes that occur
in the economy as well as update their knowledge about the latest developments in the
economic sphere.

UNIT 1: Theoretical Framework of Business Environment:

Concept, significance and nature of business and its environment, Elements of
business environment- Internal and External Factors, Micro and Macro environment and
their interactions Environmental Scanning and monitoring. Non-economic Environment
of Business.
(Socio-cultural, Political and Legal, Demographic and Natural Environment.)

UNIT 2: Dynamics of Business Environment:

Indian Economic System and Global forces(global trade structure and global
prospects), Planning Era and changing Govt. policies- Industrial Policies, Fiscal and
Monetary Policies, Exim policy, Creation of SEZs, MSMED ACT-2006. Agriculture and
Indian Economy.

UNIT 3: Financial Environment for business:

Components of Indian financial system and recent developments in it, Financial
Market-structure-Credit market, foreign exchange market, debt market, derivatives
market.
Money and Capital Market-Features, structure and objectives of money and
capital market, Stock Markets and SEBI.

UNIT 4: International and Technological Environment for business:

Role, forms and sources of Foreign Investments in India, Multinational Corporations,
Foreign Collaborations, NRIs and Corporate Sector, Entry strategies for entering in to
Foreign Markets. International Institutes: Overview of WTO, IMF, World Bank, and
their importance for India. Technological Environment in India, Policy for Research and
Development, patent laws, Technology transfers and Outsourcing business.
Infrastructure for Business in India. Energy and Power Sector, Transport Sector, I.T. and
Telecom Sector, and professional Education in India.

Reference Books:
1. Mishra and Puri, Econoic Environment of business, Himalaya Publishing
House, New
2. Fransis Cherunilam, Business Environment, Himalaya Publishing House, New
Delhi.
3. Fransis Cherunilam, International Business Environment, Himalaya Publishing
House.
4. Suresh Bedi, Business Environment, Excel Books.
5. Shaikh and Saleem, Business Environment, Pearson, PHI, 2006