Business Environment

Paper Code: 
BSG 322
Contact Hours: 
Max. Marks: 

To be able to operate business in the corporate arena, knowledge of the environmental forces and factors influencing the business operations is vital. This course has been designed to help the students identify these environmental variables and understand their influence on the business.

Unit I: 
Unit I

The Concept of Business Environment: Meaning,Nature,significance,Scope. Internal & External environment,Economic & Non-economic environment,Changing Dimensions of Business Environment, Environment scanning & Monitoring.

Unit II: 
Unit II

Economic Environment of Business: Main features of Indian Economy, Impact of Liberalisation & Privatisation on Indian Economy, Industrial Policy of 1991, Monetary Policy, Fiscal Policy, EXIM Policy, Multinational corporations, Foreign collaborations. Industrial Sickness.

Unit III: 
Unit III

Political & Legal environment of business: Business & Law, Licensing Policy & Consumer Protection act, FEMA, Role & Functions of Regulatory bodies: SEBI,TRAI,IRDA,RBI.  Financial Environment of business:Financial system- commercial banks, financial institutions, NBFC’s.

Unit IV: 
Unit IV

Socio-Cultural environment of business: Types of Social Organisations, social responsibility of business, Impact of foreign culture, social audit,Corporate governance, Relevance of social values & attitudes in management or business.Dualism in Indian Society & Problem of uneven distribution of Income.

Unit V: 
Unit V

Technological Environment: Components of Technology, Technology transfer, Technology and globalization, Competitive advantage and technology. International Environment: Globalisation and growth of Multinational Corporations (MNC).

Essential Readings: 

1. Cherunilam, Francis, Business Environment and Policy, Himalaya Publishing House, Mumbai, 2003, 4th ed.

2. Mathew, M. J., Business Environment, RBSA Publishers, Jaipur

3. Jain, T.R., Trehan, Mukesh and Trehan, Ranju, Business Environment, V.K. India Enterprises


1. Worthington, Ian and Britton, Chris, The Business Environment, Prentice Hall, 2003, 4th ed.

2. Paul, Justin, Business Environment, Tata McGraw-Hill, New Delhi, 2006

3. Aswathappa, K., Essentials of Business Environment, Himalaya Publishing House, Mumbai, 2006, 12th ed.

Academic Year: