Principles of management
PROF. BENEDETTO CANNATELLI; PROF. EUGENIO ANESSI PESSINA
COURSE AIMS
The first module introduces students to the broad field of management applied to
all classes of social institutions: families, firms, the State and non-profit
organizations. After giving the overall framework, the course deals especially with
the economics and management of firms; the basic concepts and theories of
modern management are presented and discussed.
The second module will introduce students to the fundamentals of financial
accounting. Students are expected to learn: (i) the nature and purpose of financial
accounting; (ii) the basics of financial accounting, with specific respect to
transaction analysis and to the preparation, use and interpretation of generalpurpose financial statements; (iii) the basic accounting terminology.
COURSE CONTENTS
I MODULE
– Economic activity and economic actors: Needs, goods and economic activity;
Assumptions on the behavior of individuals and groups; Families, Firms, State
and public administration, nonprofit organizations.
– Structure and governance of organizations: Stakeholders and governance
structures; Resources; Economic activities in organizations; Organizational
design.
– Managerial decisions: Economies of scale; Learning Economies;
Standardization and Modularity; Economies of scope; Transaction costs and
make-or-buy decisions; Break-even point analysis; Groups, alliances and
networks; Market structure and competitive analysis; Entrepreneurial formula;
Competitive advantage.
II MODULE
– Financial statements and business decisions.
– The basic financial statements: An overview.
– Investing and financing decisions and the Balance sheet. Transaction analysis
and the accounting equation.
– Operating decisions and the Income statement. The accruals concept.
– Adjustments, financial statements and the quality of earnings.
– The statement of Cash flows.
– Analysing financial statements.
READING LIST
For the first module
AIROLDI-RAVASI (editors), Introduction to management: Cases & Readings, Part I, 2010 (AR).
For the second module
J.J. WEYGANDT-P.D. KIMMEL-D.E. KIESO, Financial Accounting, IFRS Edition, Wiley, 2013, 2nd
edition, ISBN: 978-1-118-28590-9
In the two Modules further readings and exercises will be posted on Blackboard.
TEACHING METHOD
For both modules.
Teaching methods include formal lectures as well as the discussion of short cases and
exercises within supplemental recitation sessions. Class participation is strongly
recommended.
Students are expected to study all assigned materials and to complete specific homework
assignments prior to each class meeting. In addition, they are encouraged to ask questions
and to request that particular points be explained in more detail if they remain confused or
uncertain about specific items.
ASSESSMENT METHOD
For both modules.
Grading will be based on written exams.
Ideally, students will take a midterm exam after the first four weeks and an end term
exam at the end of the course. The final grade will be determined as the average of the two
exams.
Students failing the midterm exam will have to take a comprehensive exam. The
comprehensive exam will be offered on the same date as the endterm exam and
subsequently 4 more times over the academic year. Students failing the endterm exam or
dissatisfied with the final grade will also have to take the comprehensive exam.