School Programmes, Syllabi & Academic Information.

BUSINESS STUDIES & ECONOMICS

BUSINESS STUDIES & ECONOMICS (81 Hours )

COURSE DESCRIPTION AND AIM:

The aim of the Business part of this course is to review and increase understanding of key concepts in contemporary business, management and marketing and show how economic reasoning can be applied to decision making processes.

The course introduces the basic concepts necessary to analyse and understand the functioning of organisations. Fundamental aspects of management are discussed, such as management of change, ethics, team operation and decision making, among others. Based on this knowledge, the course will deal with challenges faced by managers of contemporary organisations, in particular issues relevant to organisational studies and the management of people within organisations, by analysing the roles of operations and information management.

The Economics part of the course is at the introductory level and surveys the economic environment within which business enterprises operate, providing insights into some of the methods and instruments that governments use to influence the economic environment. It discusses price controls, monopoly and unemployment and lays emphasis on the key conceptual tools used by economists and on the analytical techniques of Economics in order to enhance understanding of the production, consumption and monetary aspects of the market.

Specifically, this part is divided into the two main units of Microeconomics and Macroeconomics. The former introduces the students to key microeconomic issues, such as scarcity and choice, demand and supply, free markets and price controls, as well as to the laws governing different market structures. The latter focuses on teaching macroeconomic concepts such as measurement of economic activity and national income, the role of the government in the economy as a whole and the nature of money and its supply and the influence of all of these on interest rates and inflation.

Using the case study methodology, the course intends to enable students to solve real world business problems by integrating the use of key concepts and tools of analysis. In addition, it aims to cultivate appreciation for how corporations and economic processes work together in a business environment. The development of critical skills is of paramount importance in the course, in an effort to ensure that students succeed in their academic studies in the UK. These skills include building team expertise, making effective oral presentations, developing critical thought processes, thinking strategically and adhering to ethical codes in solving business problems.

LEARNING OUTCOMES:

Upon completion of this course, students will:­

  • understand issues bearing on the financial management of firms
  • appreciate market dynamics, consumer behaviour and marketing processes in the context of their significance in the management of changing environments
  • comprehend issues related to organisational studies and the management of people within organisations
  • analyse the role of operations and information management within an organisation
  • analyse an organisation’s environment and demonstrate awareness of strategy
  • be aware of contemporary issues in management such as those bearing on the management of change and business ethics, among others
  • show critical awareness of management knowledge, such as that relevant to consumption or organisational studies
  • understand how resources are used and how households and firms behave and interact, both at the individual and collective levels
  • study the factors influencing income, wealth and well-being
  • inform business and organisational decision making and the design and implementation of economic policy by government agencies
  • understand and critically evaluate the allocation and utilisation of scarce resources and the consequences of related decisions on business and social outcomes
  • apply modern methods of business and economic analysis, including a high degree of numeracy and confidence in data handling
  • use appropriate tools of analysis to tackle issues and problems of economic decision making and policy through a range of generic skills, analytical skills and the ability to select and use appropriate models to solve real world problems

SYLLABUS:

  1. Microeconomics
  • Introduction to Microeconomics, Scarcity & Choice. Opportunity Cost.
  • Production Possibility Curve Positive – Normative Economics.
  • Tools of Economic Analysis. Models & Data, Index Numbers. Nominal & Real Numbers Diagrams, lines, equations.
  • Demand (Law – Determinants – Shifts in the Demand Curve) Supply (Law – Determinants – Shifts).
  • Demand & Supply – Equilibrium price & Output. Price Controls (price ceilings – floors).
  • Elasticities of Demand and Supply. Point, Arc, Cross Elasticities.
  • Theory of Production. The short – run Production Function. Average – Marginal product. Law of Diminishing Marginal Returns.
  • Cost Theory. Fixed – Variable Marginal cost (short-run)
  • Economies, Diseconomies of Scale. Returns to scale (long-run).
  • Revenue (Total, Average, Marginal, Profit Maximization)
  • Market structure. Perfect competition – Monopoly (short-run, long-run, supply decisions).
  • Monopoly – Oligopoly – Cartels – Monopolistic Competition (short-run, long-run, supply decisions). Analysis of Factor Markets.
  1. Macroeconomics
  • Introduction to Macroeconomics Circular Flow Model. Measuring the Macro-economy (basic indicators). Ways of Calculating GNP.
  • Determination of National Income. Simple Keynesian Analysis. National Income (consumption function). Multipliers.
  • Aggregate Demand + Aggregate Supply Schedules.
  • Money Supply. Money and its Functions. Money Multipliers
  • Unemployment – Inflation. Types – Definitions – Costs – Phillips Curve
  • Open Economy Macro. The Foreign Exchange Market. Floating and Fixed Exchange Rates.
  • The Balance of Payments (components – items).

III. Topics in Business Studies 

  • Basic principles of Management and Marketing.
  • The Human Factor in the Business environment.
  • External & Internal Business Environment, Competition, SWOT Analysis.
  • Marketing – The 4 Ps
  • Industry and Services – Presentation and differences.
  • Principles of Accounting.
  • The Balance Sheet
  • Management: Functions, Motivation, Decision Making
  • Leadership in Management: Qualities, Styles
  • Business Ethics

Resources and Booklist suggestions:

  1. Betty J. Brown & John E. Clow, Introduction to Business, McGrow Hill Glencoe 
  2. Andrew Gillespie, 2010, Business Economics, Oxford University Press
  3. Business Basics: A study guide for degree students, Economics, BPP Publishing
  4. Begg David, Fisher Stanley, Dornbusch Rudiger, ECONOMICS, 5thedition, McGraw Hill
  5. Baumol William, J. Blinder Allan S., ECONOMICS: Principles and Policy, 4E, 1988, Marcourt Brace Jovanovich.
  6. Gwartney Jouyes, Clark J.R., Stroup Richard, ESSENTIALS OF ECONOMICS, 2E, Marcourt Brace Jovanovich.
  7. Samuelson Paul. A.Nordhaus William D., ECONOMICS, 13E, McGraw Hill Int.
  8. M. Pride, R.J Hughes and J.R. Kapor, BUSINESS, International Student Edition, Houghton Miffling Company, 4thedition 1993.
  9. Essentials of Accounting, Robert N. Anthony, Addison-Wesley