Ministry of Education and Science of Ukraine
M.Ye. Zhukovsky National Aerospace University
“Kharkiv Aviation Institute”
Department № 601 “Economic Theory”
APPROVED by
prorector of academic teaching and research
_______Pavlenko V.M.____
«
» _______________2015
Economics and Management of Enterprise
(name of subject)
PROGRAM
for normative academic discipline
for the level of ______Bachelor______________
(educational qualification level)
Area of study: 0511 «Aviation and Aerospace Engineering»
(area code and name)
Major: 6.051101 «Aircraft and Rocket Engineering»
(major code and name)
Kharkiv 2015
DEVELOPED AND INTRODUCED: M.Ye. Zhukovsky National Aerospace University
“Kharkiv Aviation Institute”
PROGRAM AUTHORS: economic sciences candidate, professor, chairman of the
Department of Economic Theory Safronov Y. V.; lecturer of the Department of
Economic Theory Shvedova D.S.
Program for academic discipline was discussed at the faculty meeting at the
Department of Economic Theory
Protocol № 12 from “ 25 ” June 2015
Chairman of the Department of Economic Theory, economic sciences candidate,
professor
___________________________
(Y. V. Safronov)
(signature)
(name and initials)
Program for academic discipline was discussed at the faculty meeting at the
Department № 103
Protocol № __ from “ __ ” _____ 2015
Chairman of the Department № 103, doctor in engineering sciences, professor
___________________________
(signature)
(A.G. Grebennikov)
(name and initials)
Discussed and recommended for publishing by Scientific and Methodological
Presidium commission in «Aviation and Aerospace Engineering» area of study
Protocol № 1from “26” 08. 2015
“ __ ” _____ 2015
(Date)
Head of the commission __________ (V.M. Pavlenko)
(signature)
INTRODUCTION
The program for normative discipline of “Economics and Management of Enterprise” is
compiled according educational and vocational training program for _____ Bachelor ___,
(name of educational qualification)
major # 6.051101 «Aircraft and Rocket Engineering».
The discipline’s subject of study is an optimal solution to a given managerial problem such
as production, inventory, accountancy, capital management or human resources management in
aerospace industry.
Interdisciplinary relations: theoretical economics, macroeconomics, microeconomics,
management, statistics, organizational behavior.
The program for the course (academic discipline) has the following content:
1. Module №1
2. Module №2
1. Aim and objectives of the course
1.1.
The course of Economics and Management of Enterprise is judged by its ability to
help the managers to make better decisions. As economics and management of enterprise
concentrates only on the study of a firm, it is microeconomics in character. The firm's operations
are limited by the macroeconomic conditions such as government, inflation etc. So it works
against the backdrop of macroeconomics. 'Models' are built to reflect the real life complex
business situations and case study methods are also employed to conceptualize the problem,
identify the alternative and determine the best choice in decision-making.
1.2.
Economics deals with theoretical concepts. Economics and management of
enterprise deals with the practical application of the concepts. Microeconomics is the source of
various concepts such as elasticity of demand, various market forms etc. Macroeconomics plays
a significant role in the area of forecasting. Economics helps the managerial economist in
decision-making and understanding the general economic environment within which the firm
operates.
1.3.
According to the required educational and professional program students are:
to have knowledge in:
– contemporary development of aerospace industry, current and future problems facing the
aerospace industry;
– economic foundations of production: evaluation of production, equipment, personnel,
distribution methods and forms of wages;
– basic economic categories (labor productivity, capital productivity, cost and product
price, profit, profitability, etc.);
– ways to improve production efficiency, effective use of all types of production resources;
– methods for evaluating investments and measuring higher efficiency;
– requirements for the organization and management of enterprise;
– calculations of the duration of production cycles;
to be able to:
– conduct technical and economic calculations;
– develop a business plan for new types of production;
– conduct economic analysis and choose among entrepreneurial, scientific, technical and
organizational decisions based on economic criteria;
– develop and implement measures to increase the effectiveness of production and
implementation technologies that safe resources;
– perform calculations in organization of production and labor.
to understand:
– modern methods of system analysis of production indicators, the use of computer
technology for calculations of costs and revenues;
– how to use these techniques for the measurement and optimization of economic decision
variables;
– how to improve effectiveness of production, apply modern methods of production
processes and evaluation of labor.
For the study of the course 144 hours / 4.0 credits ECTS are given.
2. Course contents for the academic discipline
Module 1.
Introduction to the discipline "Economics and Management of Enterprise".
Aims of modern industrial production. Main means of putting into effect the economic
strategy of the state. Subject and objectives of the course. Course content and its relationship
with other disciplines. The role of the course in training specialists of aerospace industry
(organizational and economic). The aerospace industry’s place in the machine-building industry
and its role in scientific and technological progress and increasing welfare. Aerospace industry,
its development prospects. Factors that define the scale, growth rate and technical level of its
products.
Unit 1. Business types
Sole proprietorship. Partnership. Joint stock company. Advantages & disadvantages.
Sources of company’s finances. Stocks and bonds.
Unit 2. Consumer behaviour and demand analysis
Demand, determinants of demand, elasticity of demand and demand forecasting,
consumer's behavior. Objective of demand analysis. The analysis and forecasting of demand for
a given product.
Unit 3. Major funds of an enterprise
Composition of assets: fixed and circulating funds. Classification and structure of the
main assets in aerospace industry. Assessment of assets: total and original, residual, replacement
values.
Unit 4. Depreciation of fixed assets
Depreciation rates. Depreciation fund, its purpose. Performance indicators of fixed assets.
The accounting and analysis of effective use of equipment.
Unit 5. Composition and structure of working capital
Importance of working capital. Need of working capital for aerospace manufacturing.
Financing of working capital. Capital budgeting. Performance indicators of working capital. Pay
- back period method. Accounting rate of return (ARR) method. Discounted cash flow
techniques. Net present value method. Internal rate of return method. Accelerated turnover of
working capital. Concept of capital investment.
Unit 6. Production capacity
The concept of production capacity. Production capacity of industry, business, shop.
Production capacity and product application. Analysis of production program. The development
of production program.
Unit 7. Labor forces, labor productivity of an enterprise
Staff of a company, its composition and structure. Planning the number of workers in
different categories. The concept of warehouse workers and future warehouse workers. Labor
productivity, its measuring , factors that determine the level of productivity. Ways to improve
labor productivity.
Unit 8. Wages in industry
The tariff system. Tariff grid. Wage-rate guides. Forms and systems of payment for labor.
Time charges. Premium system, bonuses. Improving the system of payment for labor.
Module 2.
Unit 9. Theory of production function and cost analysis
9.1. Production function. Law of diminishing returns. Law of variable proportions.
Optimum decisions concerning production, materials purchase and handling.
9.2. Classification of costs. Costs in short run, costs in long run. Break-even analysis.
Cost minimizing decisions cost concepts and classification, production functions and cost
control.
Unit 10. Cost of products and pricing in aerospace industry
Classification of production costs by economic elements. Estimation of production costs.
Types of prices and how to establish prices for products in an aerospace industry.
Unit 11. Market structures
Classification of markets. Equilibrium point. Features of perfect competition. Role of
time factor in determination of price. Imperfect competition. Strategy-based pricing.
Unit 12. Production and sales under market conditions.
The nature and value of production and sales. The range of products, production volume
indices: products sold, product, gross output. Measuring the volume of output.
Unit 13. Profit and profitability.
The economic content and types of income. Profit as a source of state budget.
Enterprise’s revenue. The profitability of production. Indicators of profitability. Ways to
improve profitability.
Unit 14. Methods for determining the cost-effectiveness of new technology.
Economic justification of progressive, scientific, technical, technological decisions and
economic effect of economic efficiency. General and comparative cost-effectiveness. Common
and comparable indicators of economic efficiency.
Unit 15. Management
Management as a tool of market economy. Concepts and essence of management. The
economy as an object of management. The problems of economics and management. The
meaning of categories: control and management, manufacturing management, finance
management, human resources management, innovation management, accounting management,
sales management.
Unit 16. Business plan
Development of the business plan. Contents of the plan. The main parts. Basic technical
and economic parameters for enterprise’s activity in the business plan.
3. Suggested or required reading
1.
Bhat M.S., Rau A. V. Managerial Economics and Financial Analysis. – 2008 – 363 p.
2.
McConnell C. Economics: Principles, Problems, & Policies / [Campbell McConnell,
Stanley Brue, Sean Flynn] // McGraw-Hill Series in Economics; 20 edition. – McGrawHill/Irwin ––2014. –– 996 p.
3.
Maier M. Introducing economics: A critical guide for teaching. / Maier M., Nelson J. ––
New York, London, England : M.E.Sharpe Armonk. –– 2007 (1956). –– 281 p.
4.
Mankiw N. G. Principles of Microeconomics / N.G. Mankiw. –– Harvard University
Press : 2008. –– 528 p.
5.
Mankiw N. G. Principles of Economics / N.G. Mankiw / [6th edition]. – UK. : Cengage
Learning. –– 2011. –– 890 p.
6.
McConnell C. Economics: Principles, Problems, & Policies / [Campbell McConnell,
Stanley Brue, Sean Flynn] // McGraw-Hill Series in Economics; 20 edition. – McGrawHill/Irwin ––2014. –– 996 p.
7.
MIT OpenCourseWare. Electronic resource: Access address: http://ocw.mit.edu
8.
Economics of enterprise. Tutorial. / [Ya. Safronov, V. Koupriyanova, L. Kornilov, T.
Pavlenko, V. Voronko]. –– Kharkiv: “KhAI”. –– 2014. –– 54 p.
9.
The Oxford Handbook of Entrepreneurship / [Mark Casson, Bernard Yeung, Anuradha
Basu]. –– Oxford Handbooks Online. –– 2008. –– 790 p.
10. Сафронов Я. В. Экономическое обоснование бизнес-проектов в машиностроении /
Я. В. Сафронов, В. Н. Гавва, В. А. Пильщиков – Х. : Нац. аэрокосм. ун-т им. Н. Е.
Жуковского «Харьк. авиац. ин-т», 2002. – 114 с.
11. Экономика предприятия : сборник задач / А. И. Бабушкин,
А. Н.
Березюк, В. Н. Гавва и др. – Х. : Нац. аэрокосм. ун-т им. Н. Е. Жуковского «Харьк. авиац.
ин-т», 2001. – 188 с.
12. Экономика предприятия : учеб. для вузов / под ред. В. Я. Горфинкеля,
В. А. Швандара. – 3-е изд., перераб. и доп. – М. : ЮНИТИ-ДАНА, 2001. – 718 с.
13. Экономика предприятия : учеб. для вузов / Л. Я. Аврашков, В. В. Адамчук,
О. В. Антонова и др. : / под ред. В. Я. Горфинкеля, В. А. Швандара. – 2-е изд., перераб. и
доп. – М. : Банки и биржи, ЮНИТИ, 1998. – 742 с.
14. Экономика предприятия : учебник / [под ред. проф. О. И. Волкова. – М. : ИНФРАМ, 2001. – 520 с.
4. Final estimation after successful course completion – pass/fail.
5. Ways of examining students’ progress.
Conducting oral test quizzes during seminars, paper assignments and module tests.