GLOBAL BUSINESS SCHOOL (GBS), HUBLI

(Business Environment for Managerial Decision Making)

Batch: 2018-2020
Semester: I Semester
Course Name: Business Environment for Managerial Decision Making
Course Code: A2
Credits: 4 Credits
Course faculty: Prof. Rashmi Fattepur
PART 1
INTRODUCTION TO THE COURSE:
This course attempts to provide students an insight of the Nation’s business environment with micro
& macroeconomic concepts, tools, techniques and models that are relevant for managers in applicability.
Microeconomics analyzes how households and firms make decisions and interact within specific markets. In
contrast, Macroeconomics provides a powerful and coherent framework for monitoring and understanding
the regional, national, and international forces that drive cycles and trends in the overall economic
environment.
Students are involved in the process of classroom discussions to have a clear understanding of
various aspects and its applicability while decision making. Project work-In Class exercise will be assigned to
students, which will enable them to focus on market situations in the diversified economy. Students will be
guided through the process of market cases in developing the capability to analyze the scenario and in this
process they are expected to present their learning and implications in both, written and oral form, suiting
the requirements of the course and the business world.
Finally, economics demonstrates how to approach real-world business problems in a structured and
rigorous manner, and therefore this course can improve your ability to think analytically.

COURSE OBJECTIVES (CO):

CO-1: To familiarize students with basic concepts and techniques of micro and macro economic analysis in
the business environment and its applications in managerial decision making.
CO-2: To enable students understand the significance and implementation of managerial economics while
decision making.

COURSE LEARNING OUTCOMES (CLO):

By virtue of learning gained in this course, the student should be able to:
CLO-1 Articulate the aspects of managerial economics & integrate the different concepts of various
subjects in the Business situations while decision making. (CO-1)
CLO-2 Understand the application & impact of concepts on the Nation’s business environment in terms of
monetary system and monetary status -income, employment, policies & market structure. (CO-2)
CLO-3 Analyze the case & make decisions based on the learnt concepts. (CO-2)

1
BRIEF COURSE CONTENT:

1. Overview of basics & significance of managerial economics, with demand analysis & forecasting.
2. Behaviour & theories of business firms, with their objectives.
3. Production & cost analysis under long run & short run with economies of scale concepts.
4. Market structures and price-output decisions.
5. Overview of macroeconomic concepts. In particular, macroeconomic models generate important
insights regarding fundamental business issues such as unemployment, inflation, interest rates,
investment decisions, business cycles, long-term economic growth.
6. Government policies to dampen cyclical fluctuations and promote growth.
7. National Income
8. Consumption function.
9. Monetary system of India and concepts of trade.
(** Syllabus is attached in the part:3 as Supplementary information)

PRESCRIBED TEXT BOOK:

P1: D.N Dwivedi Managerial Economics Vikas Publications (7th edition).

REFERENCE BOOKS:

R1 : Geetika, Piyali Gosh and Purba Choudhary (2nd edition)- Managerial Economics- McGrow
Hill Publication for both Micro and part of Macro economics.
R2 : S.K. Misra and V.K .Puri –(33rd revised edition) - Indian Economy- HPH.
R3 : D.M. Mithani - Managerial Economics, Theory & Applications -HPH
R4 : N. Gregory Mankiw-( 6th Edition)- Principles of Micro economics – Cengage

OTHER READINGS AND REFERENCES:

RBI Bulletin for Monetary Policy and other macroeconomic information like BOP, rates etc.
Business Line News paper for daily updates on Macro Economics

LINKS:
www.economywatch.com
www.india.gov.in
www.indiabudget.nic.in

JOURNALS & MAGAZINES:

The economic journals
 Annual review of economics
 Socio-economic review
Economic and political weekly
Journal of Applied econometrics
Journal of economic growth
Journal of business and economics studies

2
POLICY ON PLAGIARISM:

Plagiarism of any kind and to any extent in this course attracts severe penalty. The assessment can
range from being awarded a ‘zero’ for that particular component for both parties identified with plagiarism,
with no further opportunity to improve. Repetition of the offence would result in holding up IA for such
candidates.

ASSESSMENT SCHEME AND WEIGHTAGE:

{a} END-TERM COMPONENT

Evaluation Marks Duration (in minutes)

End-Term 50 180

{b} INTERNAL ASSESSMENTS (Total IA Marks: 50)

Unit of
S. No. Evaluation Item* Weight Session CLO
Evaluation

Assessed across all

1 Class Participation Individual 5% (2.5M)
sessions
GMG Across the entire
2 (Co-curricular Individual 5% (2.5M) semester
activities)

3 As per table in
Class Attendance Individual 10% (5M)
Part-3

30% 10th,11th,18th & CLO 3

4 Case Analysis (2)* Group (5+5=10M) 19th Sessions
(2.5 * 2=5M)

30% 12th, 27th & 35th CLO 1

6 Quiz (2) Individual
(5+5+5=15M) Sessions
44th to 46th CLO 2
7 Collage Activity * Group 20% (10M)
Sessions
*Note: Rubrics & details of IA for above assessment shall be attached below.

3
 PART 2: SESSION PLAN

Readings from Pre-reads, Post reads

Session Topic Pedagogy
text book &references/links
Introduction to the Course
Outline Pre-read: Few articles
Lecture & Class
1 Overview, definition, Ch.No.1 from news paper
Discussion
nature and scope of Post-read: R1- Ch.No.1
Managerial Economics.

Demand Analysis and Pre-read: P1- Ch.No.7

demand distinctions, Lecture & Class Ch.No.7 & 8 &8
2
Elasticity concepts: Price Discussion Post-read: R1- Ch.No.3
and income. &5

Demand forecasting:
Methods, Factors affecting Pre-read: News articles,
Lecture & Class
3 demand, Demand Ch.No.9 P1-Ch.No.9
Discussion
forecasting over Product Post-read: R1- Ch.No.6
Life Cycle.

Pre-read: News articles,

Behaviour of the Firm:
Lecture & Class P1-Ch.No.2 & 14 Post-
Nature and Objectives,
4 Discussion Ch.No.2 & 14 read: R1- Ch.No.2 &
Theories & alternate
Compiled Article
theories of the Firm
document-1

Profit Theories: Profit

Pre-read: Compiled
theories, Profit Lecture & Class
5 Ch.Nos.2 &14 Article doc-2
maximization as an Discussion
Post-read: R1- Ch.No.2
objective.

Production Functions:
Pre-read: P1-Ch.No.10
Cobb-Douglas Production Lecture & Class
6 Ch.No.10 Post-read:
Function, cost-input Discussion
R1- Ch.No.7,8 &15
relationship

4
 Returns to scale & factors
of productivity.
7 Cost concepts: Cost- Lecture & Class
Ch.No.10 & 11 Post-read: R1- Ch.No.8
Output relationships in Discussion
the short run.

Cont..Cost-Output
Lecture & Class
relationships in the short Ch.No.10 & 11
8 Discussion
run.
Cost-Output relationships Lecture & Class
9 in the long run , Discussion Ch.No.11
Lecture & Class Pre-read: all concepts of
Discussion with cost & production
Few problem analysis from P1-
10 Economies of scale
Caselets A : In-Class Ch.No.11 Ch.No.11
Exercises R1- Ch.No.8
– IA (2.5 marks) (pg no.261-264)
Case Analysis 1: Pre-read: all previous
Class Discussion & concepts & case: New
New production Paradigm-
11 In-Class Exercises – production Paradigm-
Automobile Industry in
India(PT)
IA (5 marks) Automobile Industry in
India(PT)

Market Structure and Lecture - ppt & Pre-read: all previous

Pricing Theory: (Price
12
output decisions under
different Market
Structure): Introduction
Perfect competition:
13 Features and pricing
Monopoly : Features and
14 pricing
Monopolistic competition:
15 Features and pricing
Monopolistic competition
16 Oligopoly – Concepts with
features
Kinky demand curve
17
Class Discussion
Ch.No.13 concepts(Quiz) &
P1-Ch.No.13
IA-Quiz-1
Post-read: R1- Ch.No.9
(5 marks)
Lecture - ppt & Pre-read: P1-Ch.No.13
Class Discussion Ch.No.13 Post-read: R1- Ch.No.9
Lecture - ppt & Pre-read: P1-Ch.No.13
Class Discussion Ch.No.13 Post-read: R1- Ch.No.10
Lecture - ppt & Pre-read: P1-Ch.No.13
Class Discussion Ch.No.13 Post-read: R1- Ch.No.11
Pre-read: P1-Ch.No.13
Post-read: R1- Ch.No.12
Lecture - ppt &
Post-read:R3-pg.no.711-
Class Discussion Ch.No.13
713
Pre-read & Post-read:
Lecture Ch.No.13
R1- Ch.No.12

5
 Class Discussion &
Case Analysis 2: Pre-read : Case : Riding
In-Class Exercises –
18 Riding the high tide-Indian the high tide-Indian Cement
IA (5 marks) (MS-O)
Cement (MS-O)
Pre-read: Caselet B : The
Pricing Theory Class Discussion Indian Audio Market(PS) :
19 Caselet B : The Indian Audio In-Class Exercises – Ch.No.13 & 15 Will be provided
Market(PS) : Will be provided IA (2.5 marks) Post-read : R1- Ch.No.9-
12 & 14
Pre-read: P1-Ch.No.18
Ch.No.18 & 19
Overview, definition & Lecture & & 19
20 +
Nature Class Discussion Post-read : R1-
R2-D.M.M(All) Ch.No.17

Ch.No.18 & 19 Pre-read: P1-Ch.No.18

Lecture &
21 Scope of Macroeconomics + & 19 Post-read: R1-
Class Discussion
Ch.No.17
R2-D.M.M(All)

National Income:
Concepts, Basic Lecture - ppt & Pre-read: P1- Ch.No.20
22 Ch.No.20
Terminology, Income and Class Discussion Post-read: R1- Ch.No.18
Product Concepts,

Fundamental National
Lecture - ppt & Pre-read: P1-Ch.No.20
23 Accounting Identities and
Class Discussion Ch.No.20 Post-read: R1- Ch.No.18
measurement.
Post-read: Compiled
Income, Price Level and
24 Lecture - ppt & article doc-3 &
Employment: Ch.No.21
Class Discussion R1- Ch.No.19
consumer income
(pg.no.570-577)

25 consumer price index, Lecture - ppt &

Ch.No.21 Post-read: R1- Ch.No.19
Employment & types Class Discussion
(pg.no.570-577)

26 Government of India Lecture - ppt & Post-read: R1- Ch.No.19

Ch.No.21
policy & unemployment Class Discussion (pg.no.570-577)
Lecture-ppt & Class
Macroeconomic policies Discussion
Ch.No.34 Post-read: P1-Ch.No.34
27 in India: IA-Quiz-2
(5 marks)

6
 Pre-read: P1-Ch.No.34
Details of Monetary & Lecture-ppt & Class Post-read: Compiled
Ch.No.34
28 Credit policy Discussion article doc-4

Monetary system: Pre-read: P1-Ch.No.34

Lecture-ppt & Class
Concepts of Money Ch.No.34 Post-read: Compiled
29 Discussion
Supply article doc-4

Lecture-ppt & Class Pre-read: RBI Bulletin &

30 Central Bank- RBI Ch.No.34
Discussion www.india.gov.in
Post-read: P1-Ch.No.34

Lecture-ppt & Class Post-read: R2- Part 6

31 Money market
Discussion (mod 45-47)

Banking system &

Lecture-ppt & Class Post-read: R2- Part 6
32 Banking sector reforms in
Discussion (mod 45-47)
India,

Compiled article doc-5

Lecture-ppt & Class
33 Fiscal policy Ch.No.33
Discussion Post-read: R2- Part
7(mod 53)

Overview on Union Lecture-ppt & Class Post-read: R2- Part

34 Ch.No.33
budget Discussion 7(mod 53)

Lecture-ppt & Class

Direct and indirect taxes, Discussion
35
revenue and expenditure IA-Quiz-3
(5 marks)

Budget (union budget)

Guest Lecture
Direct and indirect taxes,
36 & 37 (Analyst/expert) RBI Bulletin
revenue and expenditure
of union government

Lecture & Class R2- Part 5 (mod

38 LPG policy Post-read: D.M.Mithani
Discussion 38)

Lecture & Class R2- Part 5 (mod

39 EXIM policy
Discussion 38)

7
 Pre-read: Ch.No.15
Balance of Payment: Lecture-ppt & Class
40 Ch.No.15 Post-read :R2- Part 5
concept Discussion
(mod 37)

Components of BOP, trend Lecture-ppt & Class Pre-read: R2- Part 5

41 Ch.No.15
in balance of payment Discussion (mod 37)

Lecture - ppt,
Class Discussion
IS-LM analysis Post-read: R1- Ch.No.17
42 With problem
IS-Model (pg.no.498-514)
Caselet

Lecture - ppt,
Class Discussion
IS-LM analysis Post-read: R1- Ch.No.17
43 With problem
LM-Model (pg.no.498-514)
Caselet

In-Class Exercise
44 – 46
Presentations and
Collage Activity Discussions
3
Sessions
IA (10 marks)

Trade Blocks. Digital / Lecture &

47
Cashless Economy Class Discussion

48 Conclusion Session & Feedback

PART 3: SUPPLEMENTARY INFORMATION

COURSE CONTENT:
Title: Business Environment for Managerial Decision Making
MODULE 1

Overview, definition, nature and scope of Managerial Economics. Demand Analysis and Forecasting
Factors affecting demand, demand distinctions, Price and income elasticity of demand, Methods of
demand forecasting, Demand forecasting over Product Life Cycle. Project on Demand Forecasting

MODULE 2

Production Functions, Cobb-Douglas Production Function, cost-input relationship Returns to scale,

factors of productivity Cost concepts – cost output relationships in the short run and the long run,
economies of scale
8
 MOUDLE 3
Market Structure and Pricing Theory Market Structure – perfect competition, monopoly,
monopolistic competition oligopoly, Kinky demand curve, Price output decisions under different market
structures

MOUDLE 4
Behaviour of the Firm and Profit Theories, Nature and Objectives of the Firm, Theories of the
Firm, Overview of the alternate theories of the objectives and behaviour of the firm, Profit
theories, Profit maximization as an objective

MODULE 5.

Overview, definition, nature and scope of Macro economics

MODULE 6

Macroeconomic policies in India: Fiscal policy, Budget (union budget) Direct and indirect taxes, revenue
and expenditure of union government, exim. policy, LPG policy

MODULE 7

National Income; Concepts, Basic Terminology, Income and Product Concepts, Fundamental National
Accounting Identities and measurement. Income, Price Level and Employment: consumer income,
consumer price index, employment, types of employment, government of India policy, unemployment
MODULE 8

Consumption Function: Aggregate Investment, Multiplier Concepts,

MODULE 9

Monetary system: Concepts of Money Supply, Central Bank, Banking System; Money Markets ,
commercial banks in India, banking sector reform in India and RBI, Balance of Payment: concept,
component, trend in balance of payment. Monetary and credit policy, Money and Interest Rate, IS
– LM Analysis, Aggregate Supply and Price Level. Trade Blocks. Digital / Cashless Economy.

IA component details:

**Case Analysis:
 Team of 6 students. **(Team formation- faculty)
 Each team shall be given with one Case study related to the concepts dealt in the previous sessions.
 Case shall be given to the students as a pre-read initially and asked to give write-up of case concepts
like case facts, problem statement, concept that can be applied to that case, proximate solution/s to
the case.
 Students shall be given 10 minutes for the discussions in their newly formed group and should come
up with the all possible solutions with the brief write-up, which is to be submitted as a team.
 Case discussion starts after the posers raised by the course faculty.

9
**Collage Activity :
 Team of 6 students.
 Each team shall be given with 6 topics related to the concepts dealt in the previous sessions.
 Students shall be referring latest (last 60 days) news paper, collect news paper cuttings on each
allocated topics and prepare a collage with some write-ups/captions (In A2- Sheet).
 Each student in the team will be presenting at least 1 topic with the details and explanation.
 Based on the student’s performance, they shall be assessed & evaluated in 3 verticals referred
under rubrics.

** Class Participation
 Assessed individually across all sessions.
 Bringing current News updates to the class.
 Relevant and quality answers given w.r.t previous discussed concepts.(Q & A)
 Active participation during the sessions with quality inputs to the class.

Policy of Discipline:
**Note: In any of the assessments - Arrogance / Negative attitude / Indiscipline / Delay towards academics
will lead to negative marking.

Attendance Assessment

5 Marks (10% weightage) for Attendance component will be awarded in the following gradation –

Attendance Award of Marks

Less than 70% Zero
Between 71 to 75% 1
Between 76 to 80% 2
Between 81 to 85% 3
Between 86 to 90% 4
Between 90 to 100% 5

Submitted by : Prof. Rashmi G. Fattepur

Signature & Date:________________________

10