The document discusses foreign collaboration and business environment. It defines foreign collaboration as an alliance between domestic and foreign entities formed for mutual benefit. It notes the learning objectives are to understand the significance of foreign collaborations and the concepts of business environment. The document outlines different types of collaborations including technical, marketing, financial, and consultancy. It also discusses takeovers and acquisitions. Assessment includes homework, tests, quizzes, group discussions and attendance.

1. DISCOVER . LEARN . EMPOWER
INSTITUTE –University School of
Business
DEPARTMENT -Management
M.B.A
Faculty Name : Dr Ramneek Ahluwalia
(Assistant Professor)
1
UNIT-1
Business Environment

2. LEARNING OBJECTIVES & LEARNING OUTCOMES
After studying this chapter, you should be able to:
• The student will understand the significance of foreign collaborations.

3. 3
Business
Environment
Course Outcome
Will be covered in this
lecture
https:// IMS Proschool
CO
No
Statement
CO1 To understand the concept and components of business
environment.
CO2 To apply the relevant environmental analysis and forecasting
techniques.
CO3 To analyse the economic legal environmental dynamics to
develop suitable business policies.
CO4 To examine business policies in international environment.

4. Foreign Collaboration
In general, the definition of foreign collaboration can be stated as follows. “Foreign collaboration is
an alliance incorporated to carry on the agreed task collectively with the participation (role) of
resident and non-resident entities.”Alliance is a union or association formed for mutual benefit of
parties.
Foreign collaboration is such an alliance of domestic (native) and abroad (non-native) entities like
individuals, firms, companies, organizations, governments, etc., that come together with an intention
to finalize a contract on some tasks or jobs or projects.
Foreign collaboration is a mutual co-operation between one or more resident and non-resident
entities. In other words, for example, an alliance (a union or an association) between an abroad based
company and a domestic company forms a foreign collaboration

7. Types of collaboration
• Technical collaboration: Technical collaboration is a contract whereby the developed
country agrees to provide technical know-how, sophisticated machinery and any kind of
technical assistance to the developing country. Technical collaboration enables to
undertake research and development activities and innovation
• Marketing collaboration: Marketing collaboration is the agreement where the foreign
collaborator agrees to market the products of the domestic company in the international
market. Marketing collaboration creates value for customers and builds strong customer
relationship. Marketing collaboration promotes export.
• Financial collaboration: When the foreign contribution is in the form capital
participation, that contract is known as foreign collaboration. When the foreign company
agrees to provide capital or financial assistance to the domestic company that
collaboration is known” as financial collaboration.

8. • Consultancy collaboration: A Consultant is a professional who provides advice in a particular
area of expertise such as management, accountancy, human resource, marketing, finance etc.
Consultancy collaboration is the agreement between the foreign and the domestic company where
the company agrees to provide managerial skills and expertise to the domestic company.
• Take Over/Acquisition:
Acquisition is a growth strategy in which a strong company acquires all the assets and liabilities of
another company. When one company takes over another company and clearly established itself as
the new owner, the purchase is called an acquisition.
Takeover is a form of acquisition

9. References
• Paul, J. 2018. Business Environment: Text and Cases, 4thEdition, Tata McGraw
Hill, India,
• Cherunilam, F. 2017. Business Environment: Text and Cases.26thEdition,
Himalaya Publishing, India, ISBN: 978-9352733361.
• Business Environment, 13th Edition, Pearson Education India, India, ISBN:
9788131731581.
Text book:
Text book:

10. Assessment Pattern
10
Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks
Max. Marks 10 10 6 4 4 4 2 40