Business Environment

Course Description:

This course examines the external and internal factors that influence business decisions and operations. It covers the economic, political, legal, technological, socio-cultural, and global environments in which businesses operate. Key topics include government policies, regulatory frameworks, business ethics, corporate governance, and globalization. The course enables students to analyze how environmental forces impact strategic planning and organizational performance, preparing them to make informed decisions in a dynamic and competitive business landscape.

Course Curriculum:

Module 1: Introduction to Business Environment

• Meaning and scope of business environment
• Importance and impact on decision-making
• Types of environment: Internal and external
• Environmental scanning: Purpose and techniques
• Micro and macro environment components

Module 2: Economic Environment

• Economic systems: Capitalist, socialist, and mixed
• Key indicators: GDP, inflation, interest rates, unemployment
• Monetary and fiscal policy
• Economic reforms in India (LPG model: Liberalization, Privatization, Globalization)
• Industrial policy and economic planning

Module 3: Political and Legal Environment

• Role of government in business
• Political institutions: Legislature, executive, judiciary
• Legal environment: Overview of major business laws
  • Companies Act, Contract Act, Competition Act, Consumer Protection Act
• Regulatory bodies: SEBI, RBI, IRDAI
• Impact of political stability and governance on business

Module 4: Socio-Cultural and Technological Environment

• Social environment: Demographics, education, attitudes, and cultural trends
• Impact of values and beliefs on consumer behavior
• Corporate social responsibility (CSR) and ethics
• Technological environment: Innovation, R&D, automation
• Impact of technology on business processes and competitiveness

Module 5: Global and Natural Environment

• Globalization and its impact on Indian business
• Foreign trade policy and FDI trends
• Role of international organizations: WTO, IMF, World Bank
• Environmental concerns: Sustainability, climate change, pollution
• Environmental laws and green business practices