Competition has fundamentally intensified over the past years. Many companies today spread out their value chains across numerous locations. Thus, sound economic analysis has never been more important – regardless whether the decision-making unit is an individual, household, firm, non-profit organization, or government. The integrative approach used in this MBA course will help you to recognize that important managerial decisions are interdisciplinary as effective management is seen to involve an integration of the accounting, finance, marketing, personnel and production functions. Therefore, the business firm is treated as a unified whole, rather than a series of discrete, unrelated parts.
In order to build an intellectual fundament, you will learn conceptual frameworks (business scenarios) that are based on microeconomic theories, i.e., the underlying economic behaviour of actors participating in individual markets: individuals (theories of supply and demand), firms (production, cost and pricing), and industries under different forms of market structure (competition vs. monopoly). Real-world examples are used to support this problem-based approach. For example, an IT company’s strategy will be analyzed to introduce basic ideas on corporate strategy and industry analysis and transformation, competitive strategy, and competitive dynamics. Furthermore, we shall broaden our knowledge of real business applications of economic analysis by expanding the scope of inquiry to cover the process of internationalization of a company. You will examine the relevant managerial economic principles, problems and issues related to entry and penetration strategies that force a company to adapt to local circumstances.