When I use the word environment the first thing that comes to my mind is a simple 2 line explanation stating, ‘anything that surround us is called as our environment’ so now just attach this word to business and we get Business Environment, so how do we explain it? Anything that surrounds our Business is termed as business environment.
What does this anything comprise of? It comprises of raw materials and the person who sends it, the transport that is used to send it, the marketer who markets it after it is ready, the warehouse where it is stored, the customer who buys it, the competitor who launches something similar to it- basically everything or everyone who deals with the company from the outside of the company is a part of the companies external environment.
If there is something called external environment what about those who work within the company? They are termed as internal environment factors, so the employees, workers, machines and technology, etc all form a part of the internal environment of the company.
Why is environment important? No business operates in isolation every business deals with all of the internal and external factors to be able to function smoothly, these environmental factors impact the business in a positive or a negative manner depending on the circumstances and the condition of the market and hence this environment is very important.
Why Should I Study this subject?
As future managers in making of India Inc. it s very important that we know what is the business environment like and what factors impact the functioning of a business. As a part of any industry or any organization we will have to deal with certain factors that are a part of a particular environment and so it is essential that we are aware of all of it right from the beginning.
This subject deals with Constituents and Evolution of Business Environment, International Business Environment and Indian response to the Business Environment. In this subject one can study about the Social and Cultural factors, Political ideology, Challenges for Indian Economy and Government Policies.
It helps you learn about the various human activities like production, extraction or purchase or sales of goods that are performed for earning profits.
Is it Boring To Study Business Environment?
No! Business environment is a pure theory subject that is not at all boring, yes it has a lot of concepts and theories to learn and is quite lengthy too but definitely not boring.
Is it Difficult?
Yes, it is a little difficult to study and learn this subject and a lot of time needs to be devoted to this subject in order to score good marks.
Do I need to join a Coaching Class for Business Environment?
No, there is no need for joining any coaching class for this subject?
What is the Syllabus for this Subject?
This subject is divided into 4 Units as follows:
Unit 1: Constituents of Business
Unit 2: Evolution of Business Environment in India
Unit 3: International Business Environment & India
Unit 4: Indian Response to the Evolving Business Environment
You can find the entire syllabus and the list of reference books HERE!
Are there any Notes I can refer to for this subject?
BMS.co.in – Business Environment Notes -1
How can I Study this Subject?
For your internal exams you can revise the given set of questions for half an hour everyday for 15 days prior to the exam, it will be very helpful in scoring good marks if you do the syllabus of your 25 marks well.
External Semester Exams:
If you are someone who loves theory subjects then this is the perfect subject for you to score really good marks. You need to be able write lengthy answers full of concepts and theories for which you need to start studying well in advance.
An hour a day everyday is what your dose of B.E comprises of if you want to score good marks. You need to start up one unit at a time and make note simultaneously, since there is a lot of theory if you do not make notes you will get really confused as to what is to be revised on exam day and you will get blank while attempting the paper.
You can make notes by writing down each answer in point format and covering the gist of the answers in your notes. Make the notes as concise as possible and try including diagrams and colorful arrows or highlighted text so that making and reading the notes becomes fun.
The easy units are unit 1 and 3 and the lengthy ones are 2 and 4, go in any order but make sure you cover all four units. Whenever there are doubts do clarify with your subject professors or clarify on the internet, this is important as we can’t possibly write lengthy answers when we have no idea of what we are writing.
If you don’t like theory then this is going to be your sore subject as it is a very important, very lengthy yet pure theory subject. Its better you accept that you have to do it and start spending an hour a day on it, if you avoid it you will end up with a lot of pending syllabus and no time and then all the cramming up will result in very little marks or maybe a KT, which we surely are not aiming for.
Smita Rao who is a BMS alumni says, “You cannot ignore Business ethics to the last minute or it will haunt you! I myself did not like theory at all and I ignored it all the time. For me subjects like business environment were more effective than sleeping pills to put me off for good! But as exams started coming near I started realizing that something had to be done I did not want to end up with a Kt so I forced myself to start reading the textbook like a novel. It would ensure I would remember something on exam day, so 15 days before the exam I forcefully started reading the textbook.
Slowly after the second day I began understanding what I was studying and so I read the first chapter twice and this ensured that I could remember all my answers well, so then I applied this system to all the chapters, it took a lot of my time as I used to read each chapter twice and revise the answers but at the end of 15 days I achieved good marks in the theory paper that used to scare me the most.
Sometimes I wonder if I would have started taking theory as fun and doing it my way, I would have started scoring O grade in the earlier semester’s as well!”
If you dislike theory then do the Units in this order 1,2,4 and 3 so you have a easy unit to start with and an easy unit to look forward to when you complete the two difficult ones in between. You need to keep reading and making notes, try solving the case studies at the end of each chapter; they help in retaining whatever you have learnt in the entire chapter using practical examples from the case.
“I have been working all the three years of my BMS education as my parents did not wish to educate me and wanted me to sit at our shop with my father. I’ve wanted to start my own thing and become big,” says BMS alumni from L.N. College, who wishes to stay anonymous. “My father did his own thing too and I really admire him but I wanted to become really big in life and I figured to do that education and professional training was a must. I took up BMS full of hopes for a brighter tomorrow but realized that the studies are really difficult and as I was working to pay up my fees it was very difficult to devote many hours to studies, that is when I figured out that smart work is the key to success and it applies o your BMS studies too!
I have always studied at that last minute yet never gotten a KT in all the 6 semsters, it just needs dedication and focus. You may give one hour but that one hour should be devoted 100% to what you are doing and you will be surprised at the scores you get!”
If you are someone who has a very few days at hand and have not started studying then you can still pass in this subject. You need to follow these 5 steps in order to help you pass:
- Read through unit 1 and 3 and learn all the answers from there very well.
- Spend about 3-4 hours every day on this subject and do these two units very well.
- Start next with unit 2 and do all the answers you consider as important from there
- Repeat the same procedure with unit 4
- Try and arrange for a question bank of important questions from your college and do those thoroughly, it will be a big help.
L-P-G and the Indian Economy
We have all heard praises of the introduction of the L-P-G or Liberalization, Privatization and Globalization that was adopted by the Indian government in the year 1991 to save the falling economy from shattering. By means of liberalization we had freedom from the red-tapism and bureaucracy that was crippling the nation. Privatization freed us from the tiresome and stagnant public sector dominated services and Globalization brought in new and better markets and market leaders to help in the growth and development of the Indian economy.
With the advent of the three of these the Indian economy today has truly grown from what it was before 1991 but there yet is a huge scope for growth and a lot of untapped potential that we have been ignoring for quite some time now. Today we have a booming I.T sector, but is that all india has to it’s credit/ various service industries such as tourism and banking have yet not received the required push that can take us to the top, media and entertainment has grown quite famous but can yet be developed further.
Manufacturing is a sector where China has world dominance and that is primarily because of the cheap labor it can provide, the Indian economy too can do the same we have cheap labor plus the advantage of having an English speaking population which China does not have, so we can definitely do much better in the manufacturing sector as well.
Encouragement of medical tourism also can promote the Indian economy but the question is when and how, for so many of the industries we are talking about. Globalization brought with it FDI and FDI took away the employment opportunities from the small sale Indian retailers and artists or craftsmen. It also increased the speed of brain drain from the Indian economy so we are loosing out on certain parameters, with the L-P-G model but the benefits are way more than the disadvantages to be crying over.
The Major Changes post the L-P-G were:
- Foreign Technology Agreements were signed.
- Foreign Investment was welcomed.
- MRTP Act, 1969 was amended.
- Industrial Licensing was permitted on a larger scale.
- Beginning of privatization for the economy
- Opportunities for overseas trade was opened
- Steps to regulate inflation were put into practice
- Tax reforms took place
- License -Permit Raj was abolished forever.
FDI in a Nutshell:
FDI or foreign direct investment is basically the direct investment of a company into the economy of another nation. especially beneficial to the developing and under developed economies of the world, FDI helps drive and grow the upcoming economies. India opened gates to FDI with the welcome of the L-P-G reforms in the year 1991. today we have a lot of MNC’s functioning and providing employment, technology and foreign exchange to our country.
FDI brings with it the exchange of culture, traditions, technology and foreign currency on a big level. It is highly criticized for taking away employment opportunities from locals but is a boon for a lot of economies across the world, India included.