Economics for Business Strategy

Catalog description

Introduction to microeconomic and macroeconomic environments of business, pricing determination, market structures, and formulation of competitive strategy. This course is concerned with the economics way of thinking, the economics of effective management, the economic foundation of business strategy, and the economic environment of business. It draws on, and integrates, microeconomic and macroeconomic principles to bring new insights to business strategy and effective management. It provides a study of how markets are structured, how competitors and market participants behave, how prices and levels of activity in the business firm are determined, and how pricing is used by firms as a competitive strategy. The elements of the demand-and-supply framework are used to explain and resolve issues concerning production and sales levels, resource acquisition and allocation, and new value propositions. Also introduced are the basics of macroeconomics in the analysis of business cycles and in an understanding of government policies intended to influence the economic environment and affect where and how firms choose to compete. The effects of the global context (e.g., exchange rate policies, etc.) on economic conditions and business landscapes are analyzed. Throughout this course, students will be engaged in discussion of economic concepts and theories relevant to the concepts of competitive forces, competitive advantage, and competitive strategy, as well as the industry environment (market and competitors and their behaviors) and the industry's general economic environment. They will gain an understanding of how markets affect the elements of the firm's internal operations and how markets shape the firm's external environments which are often challenging and complex. They will also learn how to use the concepts and theories covered in this course to formulate a business strategy for the firm.