Course 2025-2026 a.y.

• The horizontal boundaries of firms and corporate diversification
• The vertical boundaries of firms and make-or-buy decisions
• Alternatives to vertical integration
• Industry entry and exit
• Five-Forces analysis
• Competitive advantage and value creation
• Cost and benefit advantage
• The resource-based theory of the firm
• Agency theory and managerial incentives
• Organizational structure

• Define the basic structure of firms and how they carry out their activities.

• Identify the roles of individuals, organizations, and institutions in modern economic systems.

• Explain decision-making concepts and the drivers of a firm's economic performance.

• Analyze different strategies that firms can adopt in their macro and industry environments.

• Compare the various elements that make up a business organization.

• Connect firm strategies to pressures and trends in their economic environment.

• Analyze organizational structures and processes within firms.

• Evaluate managerial decisions using conceptual tools and models.

• Lectures
• Practical Exercises
• Individual works / Assignments
• Interaction/Gamification

The course is based on active teaching methodologies aimed at maximizing students’ participation. In addition to theoretical sessions, students are involved in the discussion of case studies and incidents based on real-life examples. Theory and practice are combined dynamically, making room for quantitative exercises and in-class assignments to apply concepts.

The final grade is based on two components:

• Partial written exam: 50%
• End-of-term written exam: 50%

Students must pass both written exams. Students who fail or skip the partial exam will take a comprehensive general exam covering all course material. In this case, the comprehensive exam counts for 100% of the final grade.

The written exams assess students’ understanding of firms, the role of key actors in the economic system, managerial decision-making, and firm strategy. Exams include multiple-choice questions, exercises, and short-essay questions (e.g., conceptual questions or short case analyses). Exercises and case analyses evaluate students’ ability to apply concepts to real business situations, including organizational structures, processes, decision-making, and strategic assessment.

Students can earn up to 2 bonus points through individual in-class quizzes (multiple-choice and reasoning questions). These quizzes test the ability to apply and understand all course concepts.

Dranove et al. (2017), Economics of Strategy, 7th edition, Wiley (all chapters except for 1, 5, 7, 10, and 14).