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2022/23 Taught Postgraduate Module Catalogue

LUBS5740M Economics of Strategy

15 creditsClass Size: 65

Module manager: Stuart Mills

Taught: Semester 1 (Sep to Jan) View Timetable

Year running 2022/23

Module replaces

LUBS 5754M

This module is not approved as an Elective


This module aims to provide students with an understanding of the economic environments (sectoral, national and global) relevant to the strategic management of business enterprises and to enable students to understand and to use economic concepts applicable to strategic decision-making in business enterprises.

Learning outcomes
Learning Outcomes - Knowledge/Application

On completion of this module students will be able to:
- Explain in economic terms the nature and function of business enterprises in the market economy.
- Apply microeconomic analysis to the business objectives and strategic decision-making of firms in different competitive environments
- Show an appreciation of the economic principles applicable to the ethical and responsible management of business enterprise
- Analyse the factors in the wider macroeconomic and financial economic environment which affect business and show how these influence strategic choices

Learning Outcomes - Skills

On completion of this module students will be able to:
- Demonstrate ethical awareness and apply this in different contexts


Indicative content

Preliminary induction: (Not assessed) (a) The demand and supply model of markets (b) Graphical analysis of the firm: costs, revenues and profit
Main syllabus
1. Profit, value and the market environment: The profit goal, competition, market power, competitive advantage. Standard and non-standard pricing models.
2. Economics of competitive strategy: Game theory and interdependent decisions, models with prior commitments, models of product quality competition; resources and capabilities.
3. Corporate boundaries: Transaction cost and property rights theories of ‘make-or-buy’ and the control and ownership of strategic assets; diversification, innovation, alliances and joint ventures
4. Responsible business: Managers, shareholders and the agency problem; the implications for and influence of economics on management; market failures, regulation and the social responsibility of firms.
5. The macroeconomic environment: National output and the business cycle; money, banking, inflation and interest rates; the international environment, trade, foreign direct investment, global financial governance

Teaching methods

Delivery typeNumberLength hoursStudent hours
Private study hours98.00
Total Contact hours52.00
Total hours (100hr per 10 credits)150.00

Private study

8h reading and preparation for induction sessions
3h reading per lecture
3h preparation per tutorial
24h formative assessments and final assessment preparation

Opportunities for Formative Feedback

Progress will be monitored by tutorial participations together with two opportunities for formative feedback on written coursework.

Methods of assessment

Exam typeExam duration% of formal assessment
Standard exam (closed essays, MCQs etc)3 hr 100.00
Total percentage (Assessment Exams)100.00

The resit for this module will be 100% by 3 hours examination.

Reading list

The reading list is available from the Library website

Last updated: 08/09/2022


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