Units of Assessment

Weighting Towards Module Mark (%)

 

Examination (2 hours)

75%

Coursework tests

25%

Alternative Assessment

In the event of a student failing the coursework unit of assessment tests similar to those taken during the programme will be set to be undertaken during the resit period.

Qualifying Condition(s) 

A weighted aggregated mark of 40% is required to pass the module.

The module aims are to help students:

 ·        to understand how economic analysis can be used to illuminate decision-making within firms

 ·        to understand how these decisions interact with the firm’s environment, providing the information available to the firm’s managers/staff to influence strategy, tactics and performance.

 ·        to provide an introduction to practical management issues relating to the firm’s objectives, the markets it will serve and associated decisions of product, price and promotion

·        to apply and critically evaluate neo-classical market models and alternative pragmatic decision making in firms

By the end of the module students will be able to:

 ·              discuss the difference between the neoclassical theory of the firm, Coasian theory, managerial theories and behavioural theories of the firm.

 ·              discuss how the concepts of transactions costs, and asset specificity may affect the boundaries of the firm.

 ·              explain the concepts of monopsony and efficiency wages

 ·              describe and assess competition policies used in the

 ·              assess whether the market for corporate control is able to control firms' management.

 ·              evaluate alternative approaches to competitive advantage: environmental ‘fit’ and resource based ‘stretch’

 ·              discuss how/why economic theory outcomes may differ from business practice in respect of product, promotion and pricing strategies

Indicative topics:

 ·              Overview: alternative theories of the firm:

 ·              The neoclassical theory of the firm: costs, revenues and profits; contestability and entry barriers.

 ·              Managerial discretion and non-profit maximising behaviour; the principal agent issue, stakeholder theory and social responsibility

 ·              Transaction costs and the horizontal and vertical boundaries of the firm

 ·              Joint ventures, franchising, partnership alliances, mergers and acquisitions

 ·              The analysis of firm behaviour using game theory

 ·              Competitive advantage: Porter’s generic strategies, environmental ‘fit’ and resource based theory

 ·              Managerial decision making: the marketing mix: product positioning, product analysis; the role of promotion and advertising, pricing theory and pricing practices

 ·              Competition policy in the UK

A series of one to two-hour lectures supported by tutorials, group discussions, case studies and exercises.  Formative assessment will be through tutorials providing feedback on levels of understanding while the mini-case studies will challenge students’ ability to apply the concepts to real business situations.

 Summative assessment will be through coursework and examination.

 Lecture notes will be made available for each session and will be available on ULearn.

 Total student learning time 100 hours. 

 Assessment Strategy:

 The coursework will be composed of two in-course activities.  The first will provide students with a list of  short answer questions typical of those posed in Part A of the examination.  Three of these will be presented to the students in the form of a mock exam. This will provide students with formative assessment of their understanding of basic concepts and models, indicated in the learning outcomes and module content.  The second in-course activity will mirror Part B of the examination.  Once again students will be given a number of in-depth questions to research from which two will be chosen in the form of a mock exam.  These questions will require a more evaluative approach to the module content and satisfy the higher level elements of the learning outcomes. Both of these courseworks have the benefits of consolidating knowledge and allowing the student to plan how they will deal with the demands of the final examination. 

Essential text

 P. Cashian Economics, Strategy and the Firm. 2007. Palgrave. Macmillan.

 Recommended reading:

 Rickard, S.,  2006. The Economics of Organisations and Strategy. London : McGraw-Hill.

 Roberts, J., 2004. The Modern Firm: organisational design for performance and growth. Oxford University Press.

 Brassington, F., and Pettitt, S.,  2006. Principles of Marketing.  4^th Edition.  Prentice Hall.

 Background reading:

 Moschandreas, M., 2000.  Business Economics.  2^nd edition.  London : Thomson Learning.

 Perman, R., and  Scouller, J.,  1999.  Business Economics, Oxford University Press .

 ISBN 0-19-877524-5

  Besanko, D.,  Dranove, D., and Shanley, M., 2000. Economics of Strategy. 2^nd edition. New York : John Wiley & Sons Inc.

 Douma, S., and Schreuder, H., 2002. Economic Approaches to Organisations. 3^rd Edition. Prentice Hall.

 Johnson, G., Scholes, K., and Whittington, R., 2008.  Exploring Corporate Strategy.  8^th Edition.  Prentice Hall.

 Wilson, R.M. S., 2005. Strategic Marketing Management.  Butterworth Heinemann.

www.open.ac.uk

 Free learning resources from The Open University

www.businessballs.com/changemanagement.htm

Principles, process, tips and change theories.