Academic Year 2015-16
COURSE SYLLABUS
Course Code and Title
ECON 611 ECONOMICS FOR MANAGERS (MANAGERIAL
ECONOMICS)
Level (undergraduate/
graduate)
Graduate course
MBA
Credits
Length (in hours)
Course Description
3
20/(+15 Macro Part = 35)
Competition has fundamentally intensified over the past years.
Many companies today spread out their value chains across
numerous locations. Itegrating theory and practice has never
been more important - regardless whether the decisionmaking unit is an individual, household, firm, non-profit organization, or government. The integrative approach used in
this course will help business students to recognize that important managerial decisions are interdisciplinary as effective
management is seen to involve an integration of the accounting, finance, marketing, personnel and production functions.
Therefore, the business firm is treated as a unified whole, rather than a series of discrete, unrelated parts.
In order to build an intellectual fundament, the students will
learn conceptual frameworks (business scenarios) that are
based on microeconomic theories, i.e., the underlying economic behaviour of actors participating in individual markets:
individuals (theories of supply and demand), firms (production, cost and pricing), and industries under different forms of
market structure (competition vs. monopoly). Real-world examples are used to support this problem-based approach. For
example, an IT company’s strategy will be analyzed to introduce basic ideas on corporate strategy and industry analysis
and transformation, competitive strategy, and competitive dynamics. Furthermore, we shall broaden our knowledge of real
business applications of economic analysis by expanding the
scope of inquiry to cover business’ role and engagement in
society. Students are exposed to cutting-edge research that
provides practical and innovative approaches to current business issues. They will examine relevant managerial economic
principles, problems and issues related to “Creating Shared
Value” (CSV) and advanced social responsibility of business.
On successful completion of this course, students will be able
to:
1. Demonstrate critical thinking and problem solving skills,
applying appropriate analytical methods and tools to new
situations.
2. Demonstrate skill in leadership and in working collaboratively toward achieving shared objectives of a group.
Learning Outcomes
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3. Have a global perspective and will be able to work in and
adapt to a multicultural environment.
4. Have mastery of critical management theory and practice,
and of business functions and processes.
5. Understand the importance of ethical, responsible and professional behavior.
6. Be able to communicate effectively and professionally.
Course Prerequisites
Graduate level
Required
Course Materials
(Textbook, Cases, …)
Paul G. Farnham, Economics for Managers, 3rd. ed., Pearson
2014 - (Global ed.) (ISBN 9781292060095)
E-book version can be "rented":
http://www.coursesmart.co.uk/9781292060095?__hdv=6.8&__professorview=false&
__instructor=4714737&__referringfirstname=Ingo&__referringlastname=Bobel&__isr
eferringinstructor=true
Required Case: “INTEL Corporation 1968-1997” – HBS Case
(703427)
Additional
Resources
(recommended books,
articles, websites, ….)
M. Porter (2008), The Five Competitive Forces That Shape
Strategy, HBR (January)
M. Porter (1996), What is Strategy?, reprinted in: Competitive
Strategy, HBS Publ. 2002
M. Porter (1979), How Competitive Forces Shape Strategy,
reprinted in: Competitive Strategy, HBS Publ. 2002, pp. 75-86
M. Porter and M. Kramer (2011), Creating Shared Value, HBR
(December)
M. Porter, On Competition, HBS Press 2008
M. Porter (1998a), Competing Across Locations: Enhancing
Competitive Advantage through a Global Strategy, in: M. Porter, On Competition, HBS Press 1998
Ingo Böbel (2015), Business Strategy Reimagined, IUM Discussion Paper (paper is currently under review for publication)
ADDITIONAL SOURCES AND REFERENCES WILL BE GIVEN
DURING CLASS, POSTED THROUGH TWITTER AND ARE
AVAILABLE
THROUGH
THE
COURSE
WEBSITE
AT:
http://ibobel.pbworks.com/w/page/5692456/FrontPage
Instructor’s name,
highest degree
Instructor Contact
Information
Professor Ingo BÖBEL, Dr. rer. pol., Dr. rer. pol. habil.
Website: http://ibobel.pbworks.com
Professor’s Email : ibobel@monaco.edu
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Follow me on Twitter: Follow@ibobel
Office: Room 204 – Tel. +377 97 986 986
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Academic Year 2015-16
Attendance Policy
Attendance is compulsory and will be taken at each class. It is
ultimately the student’s responsibility to make sure all of the
work for each course is completed.
Students are expected to attend all examinations, presentations
and in-class exercises.
Missed quizzes, examinations or any in-class exercise will result
in a 0% mark. Make-up examinations will only be permitted in
exceptional cases and with the prior written approval of the
Program Director or the Academic Committee.
At the Undergraduate level, points are subtracted for absences. For more details, please consult the Handbook of Academic Policies and procedures
Class Behavior
Students and the instructor must respect and preserve the integrity of the learning environment of the classroom. Accordingly, disruptive behavior is not permitted, in particular, late arrivals and generally entering or leaving the classroom
without authorization, any use of mobile phones, using
computers for activities other than those of the class are
not permitted. Hats should be taken off in class.
Academic Honesty
IUM views any form of academic dishonesty - cheating and plagiarism - as unacceptable and subject to disciplinary action that
will impact the course grade. Repeated incidents of academic
dishonesty may lead to the student dismissal. For more details,
please consult the Handbook of Academic Policies and procedures.
Grades are given as percentage according to the US grading
system described in the below table:
Grading
Letter
Grade
Percentage
Range
Quality of Work
A
95-100%
A-
90-94%
Outstanding/ excellent performance
B+
87-89%
B
83-86%
B-
80-82%
C+
77-79%
C
73-76%
C-
70-72%
D+
67-69%
D
63-66%
4
Good work
Acceptable work
Poor work.
Academic Year 2015-16
D-
60-62%
F
< 60%
5
Fails to meet minimum requirements
Academic Year 2015-16
Course grade
breakdown:
Assignment Requirements and mode of
submission:
The final course grade is consists of the following components and
relative weight:
Assessment event
Relative Weight
(coefficient)
Final Exam
30
Class Participation
20
Group Project
30
Preparedness (indiv. Homeworks)
15
Attendance
5
TOTAL
100
Assignments should be submitted on time and in a professional manner. Details will be given in class.
Course outline:
Session
number
1
Date
Topics covered/ Activity planned
Readings / Assignments
(Chapter readings are related to course textbook by
Farnham)
Getting Organized and Introduction to the Course
Review of Syllabus/
Remarks on Readings and Literature/
Course Website/Organizing
Group Work
2
Introduction to a new business model: Creating Shared
Value
Discussion of the Group Project
6
M. Porter and M. Kramer
(2011), Creating Shared
Value, HBR (December)
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3
Causes of Market Structure:
The “Basic Conditions” of
Demand and Supply Revisited
Foundations of Economic Analysis
Law of Demand; Demand
Curve; Demand and Income;
Income Changes; Normal vs.
Inferior Goods; Other Factors in
Demand; Complements and
Substitutes; Advertising; Durable Goods; Supply Curves; Market Equilibrium; Shift in Demand, Shifts in Supply; Comparative Statics; Demand, Supply and Equilibrium;
The Concept of the Elasticity
Ch. 1 and 2 in Farnham
Ch. 3 (pp. 76-107)
4
The Firm and the Supply DeCh. 5 (pp. 144-171)
cision (short-run)
The Production Function
Inputs and Outputs, marginal
products, diminishing returns to
an input
From the Production Function to
Cost Curves
Supply, Output and Costs: Short
Run Costs; Fixed vs. Variable
Costs; Other Key Concepts:
Marginal Cost and Average Cost.
5
Production and Cost Analysis
in the Long Run
Model of a long-run production
function and cost function
EOS, MES
7
Ch. 6 (pp. 172-190)
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6
The Economics of Competition and Monopoly
The Model of Perfect Competition:
Necessary Conditions (Homogeneous Product; Many Buyers and
Sellers; Free Entry and Exit;
Equal Information)
Ch. 7 (pp. 200-220)
7
Monopoly and Monopoly
Pricing
Ch. 8 (pp. 226-251)
The Meaning of Monopoly:
Sources of Market Power
Monopoly
Pricing:
Revenue;
Costs; Profit-Maximization; Demand and Cost Changes; Planning Horizon; the inefficiency of
monopoly pricing.
Market Structure-Effects of Restricted Competition; Price-Cost
Margin
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Firms and Industries: Indus- Intel Case
try Competition, Strategy and
Location
History of the Computer Industry
“INTEL Corporation 1968-1997”
- CASE DISCUSSION
Go through the following assignment questions:
1. Why was Intel initially successful in DRAMs?
2. How did Japanese companies
come to be the international
leaders in this business? Why
couldn’t Intel (or other American
companies) recover?
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3. How did Intel build a competitive advantage in microprocessors? How has the company
managed to sustain the advantage over time?
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“INTEL Corporation 19681997” - CASE DISCUSSION
(c’td.)
4. Why did U.S. companies dominate the microprocessor business from the beginning, with
Japan unable to gain a major
position?
5. What explains the different
outcomes in the DRAM and microprocessor industries? What
are the lessons for government
economic policy?
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Final Exam
Syllabus latest updated on: Oct. 4, 2015
9
Intel Case