Annexure ‘CD – 01’

FORMAT FOR COURSE CURRICULUM

L T P/S SW/FW No. of TOTAL

PSDA CREDIT
Course Title: Business Environment, Policy and Practices Credit UNITS
Units:04 3 1 0 0 0 4

Course Level: UG Course Code:

Course Objectives:

The objective of this course is to acquaint students about factors comprising business environment and how business relates to economics. The other
important objective is to familiarize students with the basic concepts of Economics and role of economics in equipping a business manager in optimal
decision making.

Pre-requisites:

General awareness of business and the symbiotic relationship between business and its environment

Course Contents/Syllabus:
Weightage (%)
Module I : Environment of Business 20%

Descriptors/Topics
Business environment: Concept and components; Internal and external environment, Micro and macro environment. Need
and techniques of Environmental analysis (ETOP, SWOT, PESTLE Analysis).

Module II : Macroeconomic environment of business 20%

Descriptors/Topics
Circular flow of Income: two-sector model, National income concepts, Business cycles: phases, types, and reasons; Inflation
and its effects on business. Monetary and Fiscal Policy: objectives and instruments.

Module III : Demand and Supply 20%

 Descriptors/Topics
Concept of demand, Law of demand, elasticity of demand: price, income and cross elasticity. Supply, law of supply,
determinants of supply, market equilibrium.

Module IV: Production and cost analysis 20%

Descriptors/Topics
Production function, Law of variable proportions, Concept of isoquants, Marginal Rate of Technical Substitution, Producer’s
equilibrium through isoquants. Cost concepts, cost-output relationships in short run and long run, economies and
diseconomies of scale.

Module V: Revenue and market structures 20%

Descriptors/Topics
Revenue concepts, revenue-output relationship under different market forms. Different market structures (features and price
determination under each): Perfect competition, Monopoly, Monopolistic Competition, and Oligopoly.

Student Learning Outcomes:

On successful completion of the course, students will be able to:

 Judge different factors affecting business environment and techniques of conducting environmental analysis.
 Demonstrate basic concepts of economics that are used by the managers in business decision making.
 Explain how an economy works and grows, and would also understand the role of macroeconomic policies in influencing business and
shaping the economy.

Pedagogy for Course Delivery:

The class will be taught using theory and case based method. In addition to assigning the case studies, the course instructor will spend considerable time in
understanding the concept of innovation through the eyes of the consumer. The instructor will cover the ways to think innovatively liberally using thinking
techniques

Lab/ Practicals details, if applicable: NA

Assessment/ Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%) End Term Examination
30% NA 70%

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term
Examination

Component
(Drop down) Mid- Project Viva Attendance
Term
Exam

Weightage
(%) 10% 10% 5% 5% 70%

Text Reading:
 Francis Cherunilam (2018), Business Environment, Himalaya Publishing House
 H.L. Ahuja (2017); Managerial Economics Analysis of Managerial Decision Making, S. Chand

References:
 K. Aswathappa (2019), Essentials of Business Environment (Text, Cases & Exercises), Himalaya Publishing House
 N. Gregory Mankiw (2015), Principles of Economics, Cengage Learning India Pvt. Ltd
 D.N. Dwivedi (2015); Managerial Economics, Vikas Publishing