Introductory description

EC229-15 Economics of Strategy

Module web page

Module aims

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:

• 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.

Indicative reading list

Reading lists can be found in Talis

Specific reading list for the module

Subject specific skills

Applied Economics
Economic information
Economic principles
Research and debate
Abstraction
Analysis of incentives
Analytical reasoning
Analytical thinking and communication
Creative thinking
Critical thinking
Policy evaluation
Problem solving
Strategic thinking

Transferable skills

Data-based skills
IT skills
Numeracy and quantitative skills
Research skills
Information technology
Math, Statistical, data-based research skills
Oral communication
Written communication