DEPARTMENT OF BUSINESS MANAGEMENT

MANIPAL UNIVERSITY JAIPUR

Course: Business Environment
Course Code: MB2205

Course - MBA
November, 2014 February, 2015
(37 sessions of 60 minutes each)

Instructor: Mr. Rahul Sharma

Mail: rahul.sharma@jaipur.manipal.edu

A. Course Perspective - Increasing competition & changing dynamics of business environment has
created lot of scope for the management students to understand the implications of business
environment on business decisions, the conversion of world into global village has made
businesses more vulnerable to the changes in global environment as well. This course will enable
participants to develop an understanding of the dynamic environment in which the businesses
exist & understand the policies and regulations which governs the business. This course will
enable participants to understand the dynamics related to business environment, understand the
policies, develop an overview regarding International investments & to learn about the policies of
infrastructure development and policies. Management of businesses has become more challenging
and demanding in recent times. The familiarity with the concepts, policies and understanding of
environmental aspects in which businesses operate are the pre-requisites for the effective and
efficient management. This course is designed with the objective to provide the understanding of
business environment to the budding managers so that they can operate as an effective managers
in todays business scenario and can take better decisions while taking care of their respective
business environments.
B.The course is divided into four modules: (a) Introduction to Business Environment, (b)
Policies & regulations governing the business, (c) International investments, (d) Infrastructure
development & policy
C.The Learning Outcomes: On completion of the course the participants shall be able to:
A. Understand & Familiarize with the different types of business environment.
B. Develop an understanding regarding the competitive structure of industries through Porters
five forces model.
C. Learn about the different policies and regulations which governs the business.
D. Understand the need & importance of foreign capital in an economy, factors affecting the
international investment in a country.
E. Develop an understanding about the portfolio investments of companies, cross border M & A
& foreign investments which have been done by Indian companies.
F. Gain knowledge about the different aspects of social, economic & technical infrastructure & to
be equipped with the knowledge of recent trends in infrastructure development policy.
G. Developing an understanding and insight of the policies regarding coal, power,
telecommunications, posts, roads and transport ports infrastructure.
D.Course Outline
Introduction: A glimpse of business environment: internal and external, micro and macro
environment, competitive structure of industries: competitor analysis, environmental analysis
Environmental Analysis, Political and government environment, nature and technological
environment, social environment, cultural environment, global environment; Policies and
Regulations governing the business: Industrial policy, monetary and fiscal policy, labour policy
MRTP and Competition commission of India, FEMA, The Companies Act, EXIM policy, price
and distribution controls, patent and trade and marks, Environment policy, WTO; International
investments: Need for foreign capital, factors affecting international investment, growth of
foreign investment, FDI, Portfolio investment, cross border M &A, foreign investment by Indian
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companies; Infrastructure Development and Policy: Social, economic and Technical

infrastructure, recent trends in infrastructure development policy and policy of coal, power,
telecommunications, posts, roads and transport ports infrastructure

E. Session Plan
Session
No.
1.

Topics
Introduction

to

2.

environment.
Introduction

to

Pedagogy

References

Learning Outcomes

business

Discussion Q-A and

Examples

T1

Develop an understanding of the

business environment.

business

Discussions,
examples &Lecture

T1

Acquire knowledge about the

different types of environment
internal, external, micro & macro.

Discussion,
examples &
Lectures

T1

To apply the knowledge of different

types of environment and will also
be able to identify the different types
of environment.

Discussion, Q A &
Lecture

T1

Learn about the competitive

structure of industries & the factors
which affect the competition.

Discussion &
Lectures

T1

Understand the factors which

determine the power of buyers in an
industry & threat of substitute
products.

Discussion &
Lectures

T1

Student will learn about the factors

which determine the power of
supplier in an industry & the factors
which impact the rivalry among the
existing firms in the industry.

Discussion & Q-A

T1

Discussion, Lecture
& Q-A

T1

Students will learn about the

different factors which have
impacted the two-wheeler industry
& how Bajaj responded to them.
Student will understand the concept
of strategic group implications of
strategic groups on industry
analysis, understanding competitor
analysis
for
preparing
right

environment: Internal & external

environment & micro, macro
3.

environment.
Introduction

to

business

environment: Class exercise on

understanding
external,
4.

of

micro

environment.
Competitive

Internal,

and
structure

macro
of

industries: Porters five forces

5.

model, threats of new entrants.

Competitive
structure
of
industries: Porters five forces
model, determinants of buyer
power & threat of substitute

6.

products.
Competitive

structure

of

industries: Porters five forces

model, determinants of supplier
power & rivalry among the
7.

existing firms
Case study on Bajaj

8.

Strategic groups, Implication of

strategic

groups,

competitor

analysis & value chain.

9.

Environmental

analysis

&

Discussion, Q A &
Lectures

T1

government

Discussion, Q A &
Lectures

T1

Discussion lecture,
& Q-A

T1

Lecture, discussion
and class exercise

T1

Student will learn about the concept

of time lags in technology how to
introduce
the
appropriate
technology,
technological
adaptation, impact of technology on
globalization & how the transfer of
technology takes place.

Lecture, discussion
& class exercise.

T1

Student will learn the implications

what social and cultural environment
caqan have on the business

Lecture, discussion
& Q-A

T1

Student will understand the concept

of global environment & its
implications on the business
decisions.
Student
will
develop
an
understanding about the impact of
different
environments
on
businesses.

forecasting

10.

Political

and

environment

11.

Natural

and

technological

environment:

Overview,

innovation,
leadership

technological
and

technology
advantage,
12.

followership,

and

competitive

sources

of

technological dynamics.
Natural
and
technological
environment:

time

lags

in

technology
introduction/absorption,
appropriate

strategies & determining right

positioning for the firm in the
industry.
Student
will
also
understand the concept of value
chain for companies.
Student will learn scanning the
external
environment
of the
organization & the different
forecasting techniques which can be
used for forecasting.
Student
will
develop
an
understanding about the functions of
state, economic roles of the
government, government and legal
environment & economic roles of
government in India.
Student will learn about the different
aspects
of
technological
environment, how the firms use
technology to become the leaders in
their industry and gain competitive
advantage & sources which lead to
technological dynamics.

technology

and

technological adaptation, impact

of technology on globalization
13.

& transfer of technology.

Social & cultural environment:
Business

and

society,

technological development and

social change, business and
culture, impact of social and
cultural
14.

environment

business decisions.
Global Environment

on
&

impact on business decisions.

15.

Case Study II

its

Discussion & Q-A

16.

Quiz 1

Class exercise

T1

17.

Industrial Policy

Discussion, lecture
& Q-A

T1

18.

Case Study III

Discussion & Q-A

T1

19.

Monetary

Lecture, discussion
& Q-A

T1

Lecture, discussion
& Q-A

T1

Lecture, Discussion
& Q-A

T1

policy,

policy:

measures

Monetary
of

money

stock, monetary policy & money

supply, Instruments of monetary
20.

policy.
Fiscal policy:

Understanding

fiscal policy, the union budget,

state budgets, financing of state
and union budgets, the finance
commission,
21.

budget.
Labor

importance

policy,

competition

of

MRTP

&

commission

of

India

22.

Case Study III

Discussion & Q-A

T1

23.

FEMA & companies act

Lecture,
Class
Discussion, Q-A

T1

24.

Exim

Lecture, Discussion,
Q -A

T1

Discussion & Q-A

T1

Lecture, discussion,
Q-A

T1

policy,

price

&

distribution controls, patent &

trade marks
25.
26.

Case Study IV
Environment policy, WTO

27.

Case Study V

Discussion & Q-A

T1

28.

International Investments : Need

Lecture, discussion,
Q-A

T2

Evaluation of the topics which have

been taught in the class till now.
Concept of industrial policy impact
of industrial policy on the economy
of country.
Student will learn about the
transformation of Indian economy
after the new industrial policy.
Student will understand the concept
of monetary policy, develop an
understanding about the measures of
money stock, how monetary policy
controls money supply & the
understand the concepts of different
monetary policy instruments.
Student will learn the concept of
fiscal policy, union budgets and state
budgets, how the finances are
arranged for state and union budgets,
understanding the functions and
importance of finance function &
importance of budget.
Student will develop an overview
about the labor policy, impact of
labor policy on economy and
industries they will develop an
understanding
of
MRTP
&
competition commission & impact
of these acts on business.
Student will understand the impact
of different policies and regulations
on industries.
Student will learn about FEMA the
implications it have on businesses &
the companies act.
Student will learn about the exim
policy, price and distribution policy
and will develop a conceptual
understanding of patents and
trademarks and how they are used as
a tool by the industries.
Student
will
understand
the
implications of patent rights on
business.
Student will get familiar with the
environmental
policy,
WTO,
decisions taken by WTO and their
implications.
Impact of global environment on
businesses with special reference to
the recent global economic crisis
and recent environmental changes.
Student will develop a knowledge
about need of foreign capital in a

for

foreign

affecting

capital,

factors

country, factors which affect

international investments & growth
of foreign investments in a country.

international

investment, growth of foreign

29.

investment
International Investments : FDI,
difference between FDIs &
FIIs, portfolio investment, cross
border
M&A,
foreign
investment by Indian companies

Lecture, discussion,
Q-A

T1

30.

Social, economic & technical

infrastructure, current status as
compared to the world & recent
trends.

Lecture, discussion,
Q-A

T2

31.

Policy of coal, power &

telecommunication, ports, road
& transport infrastructure.

Lecture, discussion,
Q-A

Hand out

32.

Case study VI

Discussion, Q-A

33.

Quiz 2

Class exercise

34.

End term project presentation

group 1, 2 & 3
End term project presentation
group 4, 5 & 6
End term project presentation
group 7, 8 & 9
End term project presentation
group 10, 11 & 12

35.
36.
37.

Student
will
develop
an
understanding towards FDI, will
also learn to differentiate between
FDIs and FII, portfolio investment,
cross border merger and acquisitions
and foreign investments which have
been done by Indian companies.
Student will develop understanding
towards
different
type
of
infrastructures, current status of
India as compared to world in
infrastructure and recent trends in
Indian in infrastructure.
Student will learn about different
policies which are followed in the
country regarding coal, power,
roads,
ports
and
transport
infrastructure and implications of
them to the economy.
Student will develop the practical
implications of foreign investments
and infrastructural development with
reference India & China.
Evaluation of the subject knowledge
which have been taught till now.

F. Evaluation - Instructor led continuous evaluation

Quizzes (2)
20% (After 16th & after 33rd session)
Term Paper
20%
Midterm examination
20%
End term examination
40%
G.Students role and responsibilities
1.
2.

Shall read the topics in advance before coming to the class.

Shall participate in discussions.
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3.
4.
5.
6.
7.
8.
9.

Shall be regular in the class (85% attendance).

Shall complete all the assignments in time.
Shall work in team.
Shall undertake field and real time projects.
Shall be punctual in class.
Classroom doors shall be closed after 5 min. of the start of the class.
Shall be expected to teach.

H. Text Book
1. Cherunilam, Francis: Business environment, Himalaya publishing house.
2. Vivek Mittal: Business environment, Excel Books.
I. Reference Books
1. Business Environment Text and Cases Suresh Bedi Excel Books 2012
2. Essentials of Business Environment, K.Aswathappa, Himalaya Publishing House 2011.
J. Additional Readings
a. Michael E. Porter, competitive Strategy: Techniques for Analysing Industries and
Competitor, New York, The Free Press, 1980, p. 234
b. Hill, Charles W. (2008) 7th ed. International Business: Competing in the Global
Marketplace. Chicago: Irwin.
c. Roger Enrico: The other guy blinked: How pepsi won the cola wars.
d. Morrison, Janet; Morrison, Janet; The global business environment : meeting the
challenges.
e. Oliver, Jamie; Goodwin, Tony; How they blew it : the CEO's and entrepreneurs behind
some of the world's most catastrophic business failures.
f. Bryce G. Hoffman: Alan Mullaly and the fight to save the ford motor company.
g. International Journal of Business Environment
h. The economist.
i. Walker Mullins Boyd Larreche: Marketing strategy a decision focused approach.
K.Term Project
Student will be required to divide into group of four. There will be 10 marks for file and 10 marks
for the presentation.
Take an organization of your choice:
a. Identify the environmental factors and classify them into different categories.
b. Analyze the factors which have an impact on that organization in respect to Porters five
forces model. Study in detail all the factors keeping Porters five forces model in mind.
c. Do the competitor analysis of the organization chosen? Make special note of recent moves
taken by the competitor & how the organization which you have selected counterstriked
the move of competitor?
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d. Study the recent changes which have taken place in the business environment of chosen
organization, impact they had on the organization functions and how organization
responded to those changes?
e. Identify the major policy changes which have taken place in a country in last one year.
What prospects it has developed for the country in front of the global world?
f. Imagine you are a CEO of an organization & there has been a major environmental policy
decisions taken by the UN council regarding carbon emission. As a CEO how will you
follow for execution regarding this policy in your organization?
g. Assume yourself as a financial advisor to prime minister. Prepare a report regarding the
measures which India should take to promote the foreign investment in the country?
h. Prepare a report focusing on Indias social, economic & technical infrastructure.

Faculty Details:
Rahul Sharma
e-mail: rahul.sharma@jaipur.manipal.edu
Contact Timing: Wednesday to Friday 4 5 P.M