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Module Catalogue

EC229-12 Economics of Strategy

Department
Economics
Level
Undergraduate Level 2
Module leader
Ilan Kremer
Credit value
12
Module duration
10 weeks
Assessment
100% exam
Study location
University of Warwick main campus, Coventry

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Introductory description

EC229-12 Economics of Strategy

Module web page

Module 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.

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The module will typically cover the following topics:

  • Business economic approaches to business performance and strategy; Internal economics of firms.
  • Costs in long run.
  • Investment in physical and human capital. Intertemporal decisions; Firms and consumers in the market place.
  • Indifference curve analysis of product choice and savings.
  • Imperfect information; Exposure and macroeconomy recap of economics for business; Interest rates and financial markets; Understanding aggregate demand and aggregate supply.
  • Price levels, inflation and unemployment. The importance of expectations; Exchange rates, exchange rate regimes fixed and floating.
  • 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.
  • Differentiation, monopolistic competition and monopoly, barriers to entry; Strategic rivalry.
  • Oligopoly, game theory, entry deterrence; Growth strategies.
  • Horizontal and vertical growth, diversification; Governance and regulation.
  • Market failure and government failure; Imperfect labour markets.
  • The economics of trades unions; Summary of the economic approach to strategy.
Learning outcomes

By the end of the module, students should be able to:

  • Key Skills:...communicate knowledge and understanding of economics in written, spoken, graphical and in elementary mathematical forms. The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essays, Group Projects, Tutorial discussions and presentations. The assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essays, Group Projects, Summative: Summer Examination.
  • 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. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, Reading, Exercise question sheets, Tutorial discussions, Essays, Group projects. The assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essays, Group Projects, Summative: Summer Examination.
  • Subject knowledge and understanding:...demonstrate knowledge of economic trends, institutions and policies, especially in the context of strategic decisions of businesses. The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essays, Group Projects, Tutorial discussions and presentations. The assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essays, Group Projects, Summative: Summer Examination.
  • Subject knowledge and understanding:...abstract and simplify basic economic problems through the application of simple theoretical models. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, Reading, Exercise question sheets, Tutorial discussions, Essays, Group projects. The assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essays, Group Projects, Summative: Summer Examination.
  • Key Skills:...present the output of their own work to an audience. Work effectively on team projects. The teaching and learning methods that enable students to achieve this learning outcome are: Group Projects, Tutorial discussions and presentations. Group Projects. The assessment methods that measure the achievement of this learning outcome are: Formative: Group Projects, Tutorial presentations.
  • Key Skills:...conduct individual and collaborative research into an Economic topic, using world wide web and library resources. The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essays, Group Projects. The assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essays, Group Projects, Summative: Summer Examination.
  • Subject-Specific/Professional Skills:...produce concise and analytical reports relating to economic problems and issues. The teaching and learning methods that enable students to achieve this learning outcome are: Essays, Group Projects, Tutorial presentations. The assessment methods that measure the achievement of this learning outcome are: Formative: Essays, Group Projects, Summative: Summer Examination.
  • Cognitive Skills:...analyse and formulate models for understanding and solving problems. The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essays, Group Projects, Tutorial discussions and presentations. The assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essays, Group Projects, Summative: Summer Examination.
  • Cognitive Skills:...analyse competing models and hypotheses in a critical way. The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essays, Group Projects. The assessment methods that measure the achievement of this learning outcome are: Formative: Essays, Group Projects, Summative: Summer Examination.
  • Subject-Specific/Professional Skills:...select and apply appropriate economic models and techniques to particular problems relating to business and industry. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, Reading, Exercise question sheets, Essays, Group Projects, Tutorial discussions and presentations. The assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essays, Group Projects, Summative: Summer Examination.
Indicative reading list

Please see Talis Aspire link for most up to date list.

View reading list on Talis Aspire

Subject specific skills

Students will have the opportunity to develop skills in:
Analytical thinking and communication
Analytical reasoning
Critical thinking
Creative thinking
Strategic thinking
Problem-solving
Abstraction
Policy evaluation
Analysis of incentives
Analysis of optimisation
Understanding of Uncertainty and Incomplete Information

Transferable skills

Students will have the opportunity to develop:
Research skills
Numeracy and quantitative skills
Data-based skills
IT skills
Written communication skills
Oral communication skills
Mathematical, statistical and data-based research skills

Study time

Type Required
Lectures 10 sessions of 1 hour (8%)
Seminars 8 sessions of 1 hour (7%)
Private study 102 hours (85%)
Total 120 hours
Private study description

Private study will be required in order to prepare for seminars/classes, to review lecture notes, to prepare for forthcoming assessments, tests, and exams, and to undertake wider reading around the subject.

Costs

No further costs have been identified for this module.

You must pass all assessment components to pass the module.

Students can register for this module without taking any assessment.

Assessment group BB
Weighting Study time
Online Examination 100%

A paper which examines the course content and ensures learning outcomes are achieved.

~Platforms - AEP

  • Students may use a calculator
  • Online examination: No Answerbook required
Feedback on assessment

The Department of Economics is committed to providing high quality and timely feedback to students on their assessed work, to enable them to review and continuously improve their work. We are dedicated to ensuring feedback is returned to students within 20 University working days of their assessment deadline. Feedback for assignments is returned either on a standardised assessment feedback cover sheet which gives information both by tick boxes and by free comments or via free text comments on tabula, together with the annotated assignment. For tests and problem sets, students receive solutions as an important form of feedback and their marked assignment, with a breakdown of marks and comments by question and sub-question. Students are informed how to access their feedback, either by collecting from the Undergraduate Office or via tabula. Module leaders often provide generic feedback for the cohort outlining what was done well, less well, and what was expected on the assignment and any other common themes. This feedback also includes a cumulative distribution function with summary statistics so students can review their performance in relation to the cohort. This feedback is in addition to the individual-specific feedback on assessment performance.

Past exam papers for EC229

Pre-requisites

EC131 Economics for Business

This module is not available for Economics students.

To take this module, you must have passed:

Post-requisite modules

If you pass this module, you can take:

  • EC238-15 Economics 2: Microeconomics
  • EC205-15 Development Economics (Macroeconomics)
  • EC335-12 Managerial Economics
  • EC204-30 Economics 2
  • EC335-15 Managerial Economics
  • EC239-15 Economics 2: Macroeconomics

Courses

This module is Core for:

  • UIBA-N201 BSc in Management
    • Year 3 of N230 Management with Finance
    • Year 3 of N250 Management with Marketing
  • UIBA-N202 BSc in Management (with Intercalated Year/UPP)
    • Year 4 of N231 Management with Finance (with Intercalated Year)
    • Year 4 of N251 Management with Marketing (with Intercalated Year)
  • Year 4 of UIBA-NN36 Undergraduate Accounting and Finance (with Intercalated Year/Undergraduate Partnership Programme)
  • Year 2 of UIBA-N140 Undergraduate International Business
  • Year 2 of UIBA-N1R1 Undergraduate International Business with French

This module is Core optional for:

  • UIBA-N203 BSc in International Management
    • Year 2 of N203 International Management
    • Year 2 of N203 International Management
    • Year 4 of N203 International Management
    • Year 4 of N203 International Management
  • UIBA-N201 BSc in Management
    • Year 2 of N201 Management
    • Year 2 of N230 Management with Finance
    • Year 3 of N201 Management
  • UIBA-N202 BSc in Management (with Intercalated Year/UPP)
    • Year 2 of N202 Management (with Intercalated Year)
    • Year 4 of N202 Management (with Intercalated Year)
  • Year 3 of UIBA-NN35 Undergraduate Accounting and Finance
  • UIBA-NN36 Undergraduate Accounting and Finance (with Intercalated Year/Undergraduate Partnership Programme)
    • Year 4 of NN36 Accounting and Finance (Intercalated)
    • Year 4 of NN37 Accounting and Finance (Undergraduate Partnership Programme)
  • Year 3 of UIBA-N20A Undergraduate Management (with Foundation Year)

This module is Optional for:

  • Year 3 of UESA-HN11 BSc Engineering and Business Studies
  • UIBA-MN34 Law and Business Four Year (Qualifying Degree)
    • Year 3 of MN34 Law and Business Studies Four Year (Qualifying Degree)
    • Year 4 of MN34 Law and Business Studies Four Year (Qualifying Degree)
  • Year 2 of UIBA-N4N4 Undergraduate Accounting and Finance (with Foundation Year)
  • Year 2 of UIBA-N211 Undergraduate Information Systems Management and Innovation
  • UIBA-N214 Undergraduate Information Systems Management and Innovation (with Intercalated Year)
    • Year 2 of N214 Information Systems Management and Innovation (with Intercalated Year)
    • Year 3 of N214 Information Systems Management and Innovation (with Intercalated Year)
  • Year 2 of UIBA-N140 Undergraduate International Business
  • UIBA-N1R1 Undergraduate International Business with French
    • Year 2 of N1R1 International Business with French
    • Year 4 of N1R1 International Business with French
  • UIBA-N1R2 Undergraduate International Business with German
    • Year 2 of N1R2 International Business with German
    • Year 4 of N1R2 International Business with German
  • UIBA-N1R3 Undergraduate International Business with Italian
    • Year 2 of N1R3 International Business with Italian
    • Year 4 of N1R3 International Business with Italian
  • Year 2 of UIBA-N1R4 Undergraduate International Business with Spanish
  • Year 3 of UIBA-MN31 Undergraduate Law and Business Studies
  • UIBA-MN32 Undergraduate Law and Business Studies
    • Year 3 of MN32 Law and Business Studies (Four-Year)
    • Year 4 of MN32 Law and Business Studies (Four-Year)
  • UIBA-MN37 Undergraduate Law and Business Studies (Qualifying Degree) with Intercalated Year
    • Year 2 of MN37 Law and Business Studies (Qualifying Degree) with Intercalated Year
    • Year 4 of MN37 Law and Business Studies (Qualifying Degree) with Intercalated Year
    • Year 5 of MN37 Law and Business Studies (Qualifying Degree) with Intercalated Year
  • UIBA-MN35 Undergraduate Law and Business Studies with Intercalated Year (3+1)
    • Year 3 of MN35 Law and Business Studies with Intercalated Year (3+1)
    • Year 4 of MN35 Law and Business Studies with Intercalated Year (3+1)
  • UIBA-MN36 Undergraduate Law and Business Studies with Intercalated Year (4+1)
    • Year 2 of MN36 Law and Business Studies with Intercalated Year (4+1)
    • Year 4 of MN36 Law and Business Studies with Intercalated Year (4+1)
    • Year 5 of MN36 Law and Business Studies with Intercalated Year (4+1)
  • Year 3 of UMAA-G1NC Undergraduate Mathematics and Business Studies
  • Year 4 of UMAA-G1N2 Undergraduate Mathematics and Business Studies (with Intercalated Year)
  • Year 3 of UPXA-F3N1 Undergraduate Physics and Business Studies

This module is Core option list A for:

  • Year 2 of UIBA-N202 BSc in Management (with Intercalated Year/UPP)

This module is Option list A for:

  • Year 2 of UIBA-N201 BSc in Management
  • Year 2 of UIBA-N202 BSc in Management (with Intercalated Year/UPP)
  • Year 2 of UIBA-NN35 Undergraduate Accounting and Finance
  • Year 3 of UIBA-N4N4 Undergraduate Accounting and Finance (with Foundation Year)
  • UIBA-NN36 Undergraduate Accounting and Finance (with Intercalated Year/Undergraduate Partnership Programme)
    • Year 2 of NN36 Accounting and Finance (Intercalated)
    • Year 2 of NN37 Accounting and Finance (Undergraduate Partnership Programme)
    • Year 3 of NN36 Accounting and Finance (Intercalated)
  • Year 4 of UPXA-F3ND Undergraduate Physics and Business Studies (with Intercalated Year)