2019/20 Undergraduate Module Catalogue

LUBS3930 Economics of Business and Corporate Strategy

20 creditsClass Size: 200

Module manager: Michael Reynolds
Email: M.M.Reynolds@leeds.ac.uk

Taught: Semesters 1 & 2 (Sep to Jun) View Timetable

Year running 2019/20

Pre-requisites

LUBS2140

Intermediate Microeconomics

This module is not approved as a discovery module

Module summary

Economics is a powerful aid to critical thinking about strategic aspects of business. This course explores the economic foundations of ideas about strategy and of strategies that firms use in practice. In two parts, it examines both business level strategy (competition between individual firms) and corporate level strategy (the firm’s choice of market and organisation). Topics in the first section include the impact of strategic commitments on performance, deterring entry, pricing and product strategies and the factors behind a sustainable competitive advantage. The second section explores the question of what businesses to own, the use of alliances and joint ventures, processes of internationalisation and diversification and internal organisational aspects of a multi-business firm. The ideas in the module are explored through real world case studies and the aim throughout is to demonstrate the use economic theory in aiding practical business choices.

Objectives

The module aims to use economic analysis to provide an understanding of how the strategic choices of firms both at the level of the individual business and of the wider corporation may influence their performance. It examines competition at the business level through models in game theory, industrial organisation and the resource-based approach and considers questions of corporate ownership and organisation by means of transaction cost and institutional economics.

Learning outcomes
Knowledge / Application

On completion of this module students will be able to:
- Interpret economic theories and concepts used in the analysis of business and corporate strategy
- Identify and appropriately employ theories and concepts in the interpretation of examples and cases in business and corporate practice
- Critically evaluate the relationship between theory and practice in the light of empirical evidence

Skills

Upon completion of this module students will be able to:

Transferable:

- Apply analytical and critical thinking

Subject specific:

- Apply economic analysis to the interpretation of business and corporate strategies and articulate the purpose of each strategy, its relevance and potential success.

Syllabus

Indicative content:

Semester 1:
Introduction to business strategy
Strategic commitment
Entry deterrence
Pricing strategy
Product differentiationː fragmenting and non-fragmenting markets
Sustaining competitive advantage: the 'resource-based' approach
Innovation and the origins of competitive advantage

Semester 2:
Introduction to corporate strategy
The Boundaries of the Firm: Vertical and Horizontal integration
The Principal Agent Problem Does Management Matter?
Superstar Firms

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	21	1.00	21.00
Seminar	10	1.00	10.00
Private study hours			169.00
Total Contact hours			31.00
Total hours (100hr per 10 credits)			200.00

Private study

For each 20 credits of study taken, the expectation is that the normal study time (including attendance at lectures and tutorials, self-study and revision) is 200 hours.

Opportunities for Formative Feedback

- Feedback will be given through the workshops, where students will have the chance to try interpreting and using the ideas covered on the module.

- There will be an opportunity to write practice essays which will not count towards the assessment for the course, but will help students learning and provide some detailed written feedback.

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Standard exam (closed essays, MCQs etc)	1 hr 30 mins	50.00
Standard exam (closed essays, MCQs etc)	1 hr 30 mins	50.00
Total percentage (Assessment Exams)		100.00

Resit by repeating failed elements.

Reading list

The reading list is available from the Library website

Last updated: 13/08/2019

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