Business Environment

1 Introduction to Business Environment
• Business: Meaning, Definition, Nature & Scope, Types of Business
Organizations
• Business Environment: Meaning, Characteristics, Scope and Significance,
Components of Business Environment
• Micro and Macro Environment: Definition, Differentiation, Analysis of Business
Environment, SWOT Analysis.
• Introduction to Micro-Environment:
 Internal Environment: Value system, Mission, Objectives, Organizational
Structure, Organizational Resources, Company Image, Brand Equity
 External Environment: Firm, customers, suppliers, distributors,
Competitors, Society
• Introduction to Macro Components: Demographic, Natural, Political, Social,
Cultural, Economic, Technological, International and Legal)

2 Political and Legal environment
• Political Institutions: Legislature, Executive, Judiciary, Role of government in
Business, Legal framework in India.
• Economic environment: economic system and economic policies. Concept of
Capitalism, Socialism and Mixed Economy
• Impact of business on Private sector, Public sector and Joint sector
• Sun-rise sectors of India Economy. Challenges of Indian economy.

3 Social and Cultural Environment, Technological environment and Competitive
Environment
• Social and Cultural Environment: Nature, Impact of foreign culture on
Business, Traditional Values and its Impact, Social Audit - Meaning and
Importance of Corporate Governance and Social Responsibility of Business
• Technological environment: Features, impact of technology on Business
• Competitive Environment: Meaning, Michael Porter’s Five Forces Analysis,
Competitive Strategies

4 International Environment
• International Environment –
 GATT/ WTO: Objective and Evolution of GATT, Uruguay round, GATT v/s
WTO, Functions of WTO, Pros and Cons of WTO.
 Globalization: Meaning, Nature and stages of Globalization, features of
Globalization, Foreign Market entry strategies, LPG model.
 MNCs: Definition, meaning, merits, demerits, MNCs in India
 FDI: Meaning, FDI concepts and functions, Need for FDI in developing
countries, Factors influencing FDI, FDI operations in India,
• Challenges faced by International Business and Investment Opportunities for
Indian Industry.