30450 - FUNDAMENTALS OF MANAGEMENT
Department of Management and Technology
Course taught in English
Go to class group/s: 13
Course Director:
ROBERTA PISANI
ROBERTA PISANI
Mission & Content Summary
MISSION
The course provides a comprehensive introduction to the economics and management of business firms.
After an overview of the main theories of the firm, the course equips students with the main analytical tools used in managerial accounting.
Then, the course provides a comprehensive analysis of corporate strategic decisions.
The course blends theoretical and analytical approaches with real-life insights and applications from the business sector. Students are encouraged to take an active part in the learning process.
The educational objectives of the course are the following:
1. Provide students with knowledge about the role and functioning of business firms in modern economic systems;
2. Gain knowledge on the main theoretical and analytical tools required for the economic analysis of firms' activities, and learn how to use them in practical situations;
3. Provide a comprehensive overview to the wide range of firms' strategic decisions.
CONTENT SUMMARY
- The structure and governance of firms.
- Theories of the firm: stakeholders and shareholders.
- Agency and corporate governance mechanisms.
- Learning to read financial statements (income statement and balance sheet).
- Measuring performance through financial ratios.
- Strategic analysis and managerial decisions.
- Economies of scale and production capacity.
- Economies of scope and diversification decisions.
- Vertical integration.
- The competitive environment: market structures and industries.
- Creating and sustaining the competitive advantage.
- Organizations and values.
- Organizational structures.
- Leaders and top management teams.
Expected Teaching Plan
|
Class |
Topic |
Instructor |
Material |
|
1 |
Course presentation An introduction to the economic activity
|
Pisani
|
Slides |
|
2 |
Firm Objectives The corporation and its stakeholders
|
Pisani
|
Slides
|
|
3 |
Corporate governance mechanisms |
Pisani
|
Slides
|
|
4 |
Case discussion: Patagonia |
Pisani |
Case study |
|
5 |
Case discussion: Parmalat |
Pisani
|
Case study
|
|
6 |
Understanding the purpose and the system of financial statements |
Pisani
|
Walsh: 1 |
|
7 |
Learning to read a balance sheet |
Pisani
|
Walsh: 2, 3 Appendix 1 |
|
8 |
Understanding how the profit and loss account works |
Pisani
|
Walsh: 4 Appendix 1 |
|
9 |
Exercise Practice
Introduction to performance measurement |
Pisani
|
Exercises
Walsh: 5 |
|
10 |
Performance Measurement |
Pisani
|
Walsh: 5, 6, 7 |
|
11 |
Understanding cash flows
Evaluating asset structure and financial strength
Financial leverage and corporate valuation |
Pisani
|
Walsh 8, 9, 10, 12, 13 |
|
12 |
Exercise |
Pisani
|
Exercises |
|
13 |
Cost structure and breakeven point |
Pisani
|
Walsh 15 |
|
First Partial Exam |
|||
|
14 |
Economies of scale and learning Diversification |
Smith
|
Besanko: Chapter 2 |
|
15 |
Vertical integration |
Smith
|
Besanko: Chapter 3 |
|
16 |
Alliances, joint ventures, and contracting |
Smith
|
Besanko: Chapter 4 |
|
17 |
Case discussion: Queal |
Smith
|
Case Study |
|
18 |
Competitors and Competition |
Smith
|
Besanko: Chapter 5
|
|
19 |
Entry and Exit |
Smith
|
Besanko: Chapter 6
|
|
20 |
Market structure and industry analysis
|
Smith
|
Besanko: Chapter 8 |
|
21 |
Exercises |
Smith
|
Exercises
|
|
22 |
Case discussion: Delta Airlines |
Smith
|
Case study |
|
23 |
Strategic positioning for competitive advantage |
Smith
|
Besanko: Chapter 9 |
|
24 |
Case discussion: Apple |
Smith
|
Case study |
|
25 |
Strategy and structure |
Smith
|
Besanko: Chapter 13 |
|
26 |
Review Session |
Smith
|
Slide |
|
Second Partial Exam/General Exam |
|||
Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
- Know about the role and functioning of business firms in modern economic systems.
-
Know the basic concepts and language of the economic analysis of firms' processes.
-
Discern the most relevant tools in management accounting.
-
Understand the economic rationales behind a wide array of corporate strategic decisions.
-
Know the wide range of decisions faced by managers and of the underlying economic analysis supporting them.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
- Develop an awareness of the complementary roles that different actors play in modern economic systems.
-
Assess the financial condition of firms by using analytical tools and methods from management accounting.
- Being able to take basic managerial decisions, using the tools and decision-making models developed during the course.
- Apply the theoretical notions of management to the analysis of practical business cases.
Teaching methods
- Lectures
- Practical Exercises
- Collaborative Works / Assignments
DETAILS
Class sessions will be interactive and will rely upon the ideas and examples provided by class members.
A number of exercises, teaching cases, simulations, and practical illustrations will be used.
Class will include:
- Face-to-face lectures.
- In-class exercises: quantitative exercises on the most common management decisions.
- Case-study discussions: discussion of real company cases, including analysis of their governance structure, strategy, and performance.
Assessment methods
| Continuous assessment | Partial exams | General exam | |
|---|---|---|---|
|
x | x |
ATTENDING AND NOT ATTENDING STUDENTS
ATTENDING STUDENTS
The assessment of attending students is based on a written exam with a mix of open and closed questions (alternatively, two partial - 45 minutes each - or a single final general exam – 90 minutes).
The exam consists of theoretical and practical open and/or closed questions with analysis of real or realistic business cases, as well as exercises on a financial statement.
The exam allows to assess students’ knowledge of the basic concepts and language of the economic analysis of firms' processes, and of the wide range of decisions faced by managers and of the underlying economic analysis supporting them.
Through exercises, it is possible to assess the ability to take basic managerial decisions, using the tools and decision-making models developed during the course.
NOT ATTENDING STUDENTS
The assessment method for non-attending students is based on a final written exam.
It is composed of open and closed theoretical questions related to concepts, models and examples contained in the texts and exam materials, plus exercises.
Both open and closed questions are mainly aimed at verifying the learning of the concepts, methods and tools illustrated in the teaching material and their correct understanding, and therefore the full achievement of the expected learning outcomes of the course.
Teaching materials
ATTENDING AND NOT ATTENDING STUDENTS
-
Besanko D., Dranove D., Shanley M., Schaefer S. “Economics of Strategy”. Wiley, 2016
-
Walsh J. “Key Management Ratios”. Prentice Hall, 2016
- Case studies from the Harvard Business School Case Library.
Last change 20/05/2024 09:34