EC229: Economics of Strategy
Jo Turrall
Module Leader
Introduction
EC229-15 Economics of StrategyPrincipal Aims
To develop the concepts and insights gained from Economics for Business which mainly explores short run business issues. This module will examine the longer run aspects of business and the economic environment in which companies operate in order to equip students with an understanding of fundamental concepts in micro and macroeconomics, as relevant for the study of strategic decisions of firms; develop a range of appropriate analytical skills, including descriptive, graphical and elementary mathematical methods used in the economic analysis of strategy; develop in students the capacity to apply analytical techniques to real world business problems and strategy choices.
Principal Learning Outcomes
Subject-Specific/Professional Skills:...produce concise and analytical reports relating to economic problems and issues.
Cognitive Skills:...analyse and formulate models for understanding and solving problems.
Cognitive Skills:...analyse competing models and hypotheses in a critical way.
Subject-Specific/Professional Skills:...select and apply appropriate economic models and techniques to particular problems relating to business and industry.
Subject knowledge and understanding:...demonstrate knowledge of economic trends, institutions and policies, especially in the context of strategic decisions of businesses.
Subject knowledge and understanding:...abstract and simplify basic economic problems through the application of simple theoretical models.
Key Skills:...communicate knowledge and understanding of economics in written, spoken, graphical and in elementary mathematical forms.
Key Skills:...present the output of their own work to an audience. Work effectively on team projects.
Key Skills:...conduct individual and collaborative research into an Economic topic, using world wide web and library resources.
Subject knowledge and understanding:...understand key concepts in Economics, such as long run cost curves, human capital investment, yield curves, IS/LM, aggregate supply/aggregate demand models, imperfect competition.
Syllabus
The module will typically cover the following topics:
鈥� Business economic approaches to business performance and strategy; Internal economics of firms.
鈥� Costs in long run.
鈥� Investment in physical and human capital. Intertemporal decisions; Firms and consumers in the market place.
鈥� Indifference curve analysis of product choice and savings.
鈥� Imperfect information; Exposure and macroeconomy recap of economics for business; Interest rates and financial
markets; Understanding aggregate demand and aggregate supply.
鈥� Price levels, inflation and unemployment. The importance of expectations; Exchange rates, exchange rate regimes fixed and floating.
鈥� Optimum currency areas; Current macro issues e.g. oil prices, global imbalances; The long run.
Illustrating how and exploring why GDP growth rates differ across countries and through time; Imperfect product markets.
鈥� Differentiation, monopolistic competition and monopoly, barriers to entry; Strategic rivalry.
鈥� Oligopoly, game theory, entry deterrence; Growth strategies.
鈥� Horizontal and vertical growth, diversification; Governance and regulation.
鈥� Market failure and government failure; Imperfect labour markets.
鈥� The economics of trades unions; Summary of the economic approach to strategy.
Context
- Core Module
- N140 - Year 2, NN37 - Year 2
- Optional Module
- MN31 - Year 3, N220 - Year 2, N140 - Year 2, NN35 - Year 2, N1R2 - Year 2, N1RA - Year 2, N1RB - Year 2, N1RC - Year 2
- Pre or Co-requisites
EC131 Economics for Business
This module is not available for Economics students.
Summary:Modules: EC131-15
Assessment
- Assessment Method
- Centrally-timetabled examination (On-campus) (100%)
- Coursework Details
- Centrally-timetabled examination (On-campus) (100%)
- Exam Timing
- Summer