MBA630A - Economics Of Business Policy

Internationally, a lot of integration is taking place between economic theory, particularly industrial organization theory and management strategy theory. On the one hand, industrial organization theorists are trying to draw on real life management practices to develop never and more relevant theories. On the other hand, management strategy theorists are coming to depend on industrial organization theory to provide a general framework for organizing the otherwise incoherent mass of facts available to them. In this context, Economics of Business Policy seeks to provide management students an introduction to the interface between industrial organization theory and strategic management theory. It uses the business related tenants of economics (old and new) to develop a coherent analytical basis for the formulation and evaluation of the external and internal strategies of the firm. This is true with respect to both a firm’s external market environment and its internal organization. The course emphasizes practical managerial applications of topics from industrial economics and strategy: economics of scale and scope, industry analysis market structure commitment dynamic competition entry/exit the economics of competitive advantage incentives in firms internal labour markets and executive remuneration.