Postgraduate Course: Economics of Strategy (BUST11130)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Course type | Standard |
Availability | Available to all students |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Credits | 10 |
| Home subject area | Business Studies |
Other subject area | None |
| Course website |
None |
Taught in Gaelic? | No |
| Course description | The Economics of Strategy provides a basis for the analysis of the economic roles and interactions of the stakeholders of the firm, and so it is an essential aid to the development of strategy, and a guide to tactics. Within this framework we will consider the use of economics to help managers make decisions with regard to: cost and demand, pricing including optimal mark-ups and price discrimination; product differentiation or cost based strategies; strategy in relation to rival firms; the make or buy decision and vertical integration; diversification and the implications of mergers, and the sustainability of profits. There will be an emphasis on the problems created by lack of information and how this affects contracts and hence control of suppliers or distributors (and their management).
The emphasis on the motivational analysis of each party is one way of looking at many of the problems of strategy, marketing, and public policy. The course is therefore of particular relevance to those who need to understand the workings of market competition. This would include those giving advice as consultants, investment bankers or at senior management levels. |
Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | For Business School PG students only, or by special permission of the School. Please contact the course secretary. |
| Additional Costs | None |
Information for Visiting Students
| Pre-requisites | None |
| Displayed in Visiting Students Prospectus? | Yes |
Course Delivery Information
| Not being delivered |
Summary of Intended Learning Outcomes
Knowledge and Understanding:
- Marginal Cost, Average cost, Sunk Costs, Economies of Scale
- their influence on decisions in the short and long run
- their relationship to market structure
- the nature of demand functions, for both differentiated and undifferentiated products
- the role of cost and differentiation advantage in strategic decisions
- issues involved in the make or buy decision including monopoly power and the trade-off between technical efficiency and agency costs
- Factors leading to the sustainability of profits
Cognitive Skills:
- Further development of the analytical skills required in the consideration of complex systems
- Development of analysis of cause and effect
- Ability to scan a range of scenarios and the supporting information to sift evidence logically
- Structuring of arguments both verbally in class discussion and in writing
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Assessment Information
| There will be one essay of about 1,500 words which will count for 40% of the final mark; it will apply the concepts of cost and demand to your present or most recent work, and one essay of about 2,000 words which will count for 60%. This will apply the ideas of competitive advantage to the industry in which you work. |
Special Arrangements
| None |
Additional Information
| Academic description |
Not entered |
| Syllabus |
Not entered |
| Transferable skills |
Not entered |
| Reading list |
Not entered |
| Study Abroad |
Not entered |
| Study Pattern |
Not entered |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Aristotelis Boukouras
Tel: (0131 6)51 1375
Email: Aris.Boukouras@ed.ac.uk |
Course secretary | Katie Harrison
Tel: (0131 6)50 8071
Email: Katie.Harrison@ed.ac.uk |
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