Section I E Module Outline plan Maharaja Surajmal Institute Affiliated to GGSIPU Delhi Course Bachelor of Business Administration Subject Module On Business Environment BBA B I 18209 Semester III Credit 4 Module Contributor s Dr Jasbir Singh Dr Suhasini Parashar July 2021 1 GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY BACHELOR OF BUSINESS ADMINISTRATION B I BBA B I 1 8 209 Business Environment Credit 4 Max Marks 75 L 4 T 0 Objectives To familiarize the students with the nature and dimensions of evolving business environment in India to influence managerial decisions and how the Indian Economy is influencing the business environment in India context Course Contents Unit I An Overview of Business Environment Type of Environment Internal External Micro and Macro Environment Socio Cultural Environment Competitive Structure of Industries Environmental Analysis and Strategic Management Managing Diversity Scope of Business Characteristics of Business Process and Limitations of Environmental Analysis Structure of Indian Economy Concept of Economic Growth and Economic Development Basic Characteristics of Indian Economy Hours 10 Unit II Concepts of Macro Economics and National Income Determination Definitions Importance Limitations of Macro Economics Macro Economic Variables Circular flow of income in 2 3 4 sector National Income Concepts Definition Methods of Measurement National Income in India Problems in Measurement of National Income Precautions in Estimation of National Income Macro Economic Framework Theory of Full Employment and Income Classical Modern Keynesian Approach Consumption Function Relationship between saving and Consumption Investment function Concept of Multiplier in 2 3 4 sector Hours 12 Unit III Introduction to Financial Markets Money market functions organization and instruments Indian money market An overview Function and form of money demand for money classical Keynesian and Friedman s approach measure of money supply Capital Markets functions organization and instruments Indian equity market primary and secondary markets Role of stock exchanges in India Hours 12 Unit IV Economic Environment Monetary Recent Credit Policy of RBI and Fiscal Policies and recent five year plan FEMA FDI WTO GATT TRIMS TRIPS Hours 10 2 TABLE OF CONTENT CONTENT Page No Unit 1 An overview of Business Environment Chapter 1 Type of Environment Internal External Micro Macro Chapter 2 Socio cultural Environment Chapter 3 Competitive structure of Industry Chapter 4 Environment Analysis and strategic management Chapter 5 Managing Diversity Chapter 6 Scope of Business Characteristics of Business Chapter 7 Economic Growth Development Sustainable development 56 69 Chapter 8 Basic Characteristics of Indian Economy Unit 2 Concepts of National Income and National Income Determination Macro 74 154 Chapter 1 Macro economics Definition importance Variables 74 81 Economic Framework Limitation Chapter 2 Circular flow of income in 2 3 4 sector 82 85 Chapter 3 Multiplier in Two Sector Three Sector in Four Sector Model 86 101 Chapter 4 National Income concept Definition Methods of Measurement 102 119 National Income in India problem in measurement of NI Precaution Chapter 5 Theory of Full Employment Income Classical Modern 120 130 Approach Chapter 6 Consumption function Saving Function 131 143 Chapter 7 Investment function and Type of investment MEC MEI 144 154 Unit 3 Introduction to Financial Markets Chapter 1 Indian money market An overview Chapter 2 Demand for Money Classical Keynes Modern Theory Chapter 3 Money Market Chapter 4 Capital Market Chapter 5 Equity Market Primary Secondary Market Chapter 6 Role of stock exchanges in India Unit 4 Economic Environment Chapter 1 Monetary Policy Objective Instrument Functions Recent credit policy of RBI 3 5 73 5 10 11 16 17 19 20 40 41 44 45 55 70 73 155 214 155 169 170 182 183 191 192 200 201 205 206 214 215 304 215 217 Chapter 2 Fiscal policies Objective Instrument Functions Chapter 3 Recent Five Year Plan Chapter 4 FDI Chapter 5 FEMA Chapter 6 WTO GATT TRIMs TRIPS MCQ Multiple Choice Question Glossory and Key Words References and Further Readings 1 Paul J Business Environment 2017 McGraw Hill Education 2 Cherulin Francis 2014 Business Environment Text and Cases Himalaya Publishing House 3 Dhingra I C 2016 Indian Economy Sultan Chand Sons 4 Ashwathapa 2012 Essentials of Business Environment Himalaya Publishing House 5 Gupta C B 2014 Business Environment Sultan Chand Sons 6 Dwivedi D N 2015 Macro Economics McGraw Hill Education 218 234 235 244 245 253 254 255 259 266 267 304 4 Unit I CHAPTER 1 TYPES OF ENVIRONMENT INTERNAL EXTERNAL Business Environment i Business Environment means a collection of all individuals entities and other factors which may or may not be under the control of the organisation but can affect its performance profitability growth and even survival Every business organisation operates in a distinctive environment as it cannot exist in isolation Such an environment influence business and also gets affected by its activities ii All business enterprises functions within an environment called as the business environment An individual business firm survives and grows within the periphery of its environment A firm is only a part of a big environment and so there are only a few factors which are under the control of the firm So the firm has no other option but to respond and adapt accordingly If business persons possess a good understanding of the business environment they can easily recognise analyse and react to the forces that affect the firm Features of Business Environment i Dynamic The environment in which the business operates changes continuously because there is a wide variety of factors that exist in the environment causing it to change its shape and character ii Complex There are many forces events and conditions that constitute business environment arising from various sources So it is a bit difficult to understand the relative influence of a particular iii Uncertain Uncertainty is an inherent characteristic of business environment because no one can factor on the operation of the organisation predict what is going to happen in future iv Multi faceted A single change in the business environment can be viewed differently by different observers because their perceptions vary v Far reaching Impact The survival growth and profitability of a business enterprise depends largely on the environment in which it exists A small change in the
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