In this module students will be introduced to economic analysis that enables them to systematically and strategically determine how best to position the firm and effectively manage its resources. The module covers how markets work, consumer demand, productivity and costs, pricing and market competition and associated decision making and investment planning. It addresses profitability under different market structures and also reviews the impact of government policies and international trade on markets, taking note of the particular economic challenges facing businesses in developing countries. The quantitative data analysis involved in this module does not require the use of calculus.
Module Aim
The aim of the module is to enhance a student's ability to understand market forces and to apply economic analysis to support critical decision making on pricing, costs, productivity and investment that will impact the firm’s short-term and long-term profitability and inform its marketing strategy from both a global and developing country perspective.
Module Learning Outcomes
Upon completion of this module, the student should be able to:
1. Explain market mechanisms and resource allocation in a firm.
2. Apply the tools of economic analysis and interpreted their results to inform business decisions on Pricing, Costs and Production, Investment, Strategic positioning of the firm, Marketing strategy.
3. Assess supply and demand factors operating in a market and prioritise expenditures according to their impact on a business.
4. Evaluate the impact of pricing decisions on the market and on the profitability of the firm and create relevant pricing strategies for products.
5. Explain the concept of product life cycle and a business cycle.
6. Perform risk analysis on a firm, asses the causes of market failure and how they may be addressed.
7. Analyse the links between trade, international finance, economic growth, and globalisation, with a particular emphasis on business experiences in developing countries.