Business Environment

Course Code HRES 7028 (2-0-0-2)

Dr. Mir Khursheed Alam

PhD Indian Institute of Technology Mandi, (H.P), India
Program: BBA Core 1 Batch 2/3/4/5
Assistant Professor (Senior Scale) in Economics, Semester 1:
UPES School of Business Batch: 2024-25
Classroom: K1410
Cabin Address: K1103
Email: [email protected]

1
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Module 01

AN OVERVIEW OF
THE
FUNDAMENTALS
SESSION – 1 | Why study
Business Environment?

Soumyajit C. | Assistant Professor (Senior Scale)

Scan
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Module 01

AN OVERVIEW OF
THE
FUNDAMENTALS
SESSION – 1 | Why study
Business Environment?

Soumyajit C. | Assistant Professor (Senior Scale)

Scan
SESSION 1 SESSION 2 SESSION 3 SESSION 4 SESSION 5 SESSION 6

BROAD PLAN
OF THE COURSE

Sociodemograp
hic,
Political,
An Overview Why focus on Legal & Technological,
Technological,
of the the External Industrial and
and Economic
Fundamentals Environment? Environment International
Environment
Business
Environment
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Why study Business Environment?

1
The Big WHY?
SESSION
To be Covered The MARUTI SUZUKI Story

Flipped Approach in this

Class

Introducing Business
Environment
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WIFM?
SESSION – 1 | Why study
Business Environment?

1. Why be Curious?

2. How to Decode a Business Case?

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1 UNDERSTANDING THE PLAYING

FIELD 2 SPOTTING OPPORTUNITIES AND
THREATS
The Business Environment course equips you with a comprehensive The business world is constantly evolving. By studying the
understanding of the various factors that influence how businesses Business Environment, you gain the ability to identify emerging
operate. This includes internal factors like company structure and trends, changing consumer preferences, and potential disruptions
resources, as well as external factors like government regulations, within your industry. This allows you to seize opportunities before
economic trends, and technological advancements. With this knowledge, your competitors and proactively address potential threats that
you can effectively analyze the overall business landscape and make could hinder your business's success.
informed decisions.

WHY STUDY
BUSINESS
ENVIRONMENT?
3 STRATEGIC DECISION-MAKING
When armed with a thorough understanding of the Business
Environment, you'll be able to make strategic decisions that are aligned
4 ADAPTABILITY AND RESILIENCE
The business environment is dynamic, and businesses need to be
adaptable to survive and thrive. Studying this subject equips you
with your organization's goals. You can analyze the impact of government with the skills to analyze changing circumstances, adjust strategies
policies, economic fluctuations, and competitor actions on your business when necessary, and make your business more resilient in the
and develop effective strategies to navigate these challenges. face of unforeseen challenges.
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HOW MARUTI 800

ONCE BECAME THE
BRAND OF “PEOPLE’S
CAR” IN INDIA?​
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PM Indira Sanjay

Gandhi Gandhi
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WALK WITH
THE HISTORY
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1 2
Early Regulation and Duopoly Shift Towards Domestic Production
(1950s-1970s) (1970s-1980s)

3 4
Consumption-Driven Economy Post-Liberalization Era
(1980s-1990s) (1991 Onwards)

5
Evolving Social Identities
and Consumption Patterns
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Early Regulation and 1. Post-independence import restrictions and local focused

Duopoly requirements.
(1950s-1970s) 2. Dominance of Hindustan Motors (Ambassador) and Premier
Automobiles.
3. Ambassador car as a luxury and status symbol.
Shift Towards Domestic 4. Sanjay Gandhi's vision for an affordable 'people's car’ produced in
Production India.
(1970s-1980s) 5. Establishment of Maruti Limited in 1971.
6. Launch of Maruti 800 (joint venture w/ Suzuki) in 1983, marking it
affordable for the middle class.
Consumption-Driven 7. Rajiv Gandhi's emphasis on consumer goods for the urban middle
Economy class.
8. Maruti 800's popularity as a practical, functional, and durable
(1980s-1990s)
vehicle.
9. Social hierarchy: Ambassadors for the rich, Maruti 800 for the
10. middle
Opening class.
of India to foreign car models and investments.
Post-Liberalization Era 11. De-licensing of the passenger car segment in 1993.
(1991 Onwards) 12. Shift from frugality to aspirational consumption and increased
variety of car models.

13. Role of cars as markers of upper-middle-class status.

Evolving Social Identities 14. Veblen's theory on consumption emulation and class distinctions.
and Consumption Patterns 15. Transition from social hierarchy to diverse automobile landscape.
16. End of production for Ambassador and Maruti 800 in 2014.
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Give me Five Key

Points that made
Maruti 800 the
“People’s Car.”
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Focus on
1 2
the Indian Affordabilit
Needs y

Studying the
3 4
Collaboratio
Business
n for Quality
Environment

5
Building
Trust
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Welcome to Flipped
Approach!
This course will take a unique approach,
using real-world business scenarios to
jumpstart your learning. Get ready to
dive into case studies and then work
your way up to the theories that explain
them!
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BEFORE EACH CLASS​

As you analyze the case, consider You'll be responsible for
these questions:​ analyzing a business case
assigned before each class.
1. What factors in the business Research the case carefully,
environment are impacting this paying attention to the specific
company?​ challenges or opportunities the

2. Are there any political, economic,

Case Time business is facing.​

social, technological,
environmental, or legal factors at Think Like a
play?​
Strategist
3. What about competition? Can you I'll provide you with online
identify any competitive forces resources like short videos or
affecting the industry?​ Explore articles that introduce key
the Basics concepts related to the case. This
4. What additional information might will give you a head start on
you need to understand the understanding the underlying
situation better?​ theories.​
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IN CLASS​
Case Cracked
We'll start each class with a group discussion about the assigned case. Be
prepared to share your analysis and insights.

Theories Emerge
Together, we'll use the case as a launchpad to explore the relevant
theories from the Business Environment. We'll connect the dots between
the real-world situation and the frameworks that explain it.

Learning by Doing
Get ready for interactive activities! We might use simulations, role-playing
exercises, or group projects based on the case. This is your chance to apply
your understanding and explore different strategic approaches.
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GETTING THE MOST

OUT OF THIS COURSE​

1 2 3
Active Think Beyond Practice Makes
Participation is the Case: While Perfect: Hone
Key: Come to cases are the your analytical
class ready to starting point, use skills by applying
discuss the cases the theories you the learned
and actively learn to analyze frameworks to
engage in other business new business
learning activities. situations you scenarios.​
This is where the encounter.​
magic happens!
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What is this Business Environment

exactly?
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THIS DIAGRAM GIVES YOU THE ANALYTICAL MIND

ALWAYS USE THIS!​

MACRO ENVIRONMENT ENVIRONMENTA

L NATURE

POLITICAL
ECONOMIC SOCIETY
SOCIO-
CULTURAL
TECHNICAL
LEGAL
ECONOMY

MICRO ENVIRONMENT COMPETITORS

CUSTOMERS STAKEHOLDER
SUPPLIERS S
SHAREHOLDER
S
COMMUNITIES
MEDIA
BUSINESS
ORGANIZATIO
ORGANIZATIONAL RESOURCES N
STRUCTURES
ENVIRONMENT CULTURE
BEHAVIOR
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WHILE DECODING A BUSINESS CASE

YOU MAY START LIKE THIS!​

Level 1 (External Environment)

nt
n me Assess the external environment and its
ir o
nv impact on your organization and workgroup.
a lE
er n
Ext

Organizat
ional Level 2 (Organizational
ent
Environm Environment)
Understand how your workgroup and its
function fit into the bigger organizational
Your Imm
ediate picture.
Environm
ent
Level 3 (Immediate Environment)
Understand the purpose, goals and culture of
your workgroup.
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Next Class

Reading:
1. Internal Environment
2. External Environment
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The
The Big MARUTI
WHY? SUZUKI
Story

SESSION – 1
Flipped Introducing
Why study Business Approach Business
Environment? in this Environme
Class nt
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