Economics of Strategy

Code:

2M3E02

Acronym:

ES

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2022/2023 - 1S

Active?	Yes
Course/CS Responsible:	Master in Economics of Business and Strategy

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
MEEE	41	Syllabus	1	-	6	42	162

Teaching language

English

Objectives

The main goal of this course is to offer students a deep knowledge of the economic fundamentals of the strategic decisions that corporations need to address. The syllabus is organized to cover all the topics necessary for a thorough understanding of business strategy ranging from the economic theory of strategy to the application of microeconomic models and game theory to the design and evaluation of strategy. All the topical issues relevant for the today’s businesses strategic process, from pricing to R&D and innovation are covered. Whereas the topics covered assure the command of the field, teaching methodologies (formal lectures, class discussion, and case studies) assure that students are able to use the theoretical knowledge to understand, critically discuss real-world strategic choices and act as an advisor in the strategic process of businesses.

Learning outcomes and competences

Upon completion of the course, the students:

1. shall have advanced knowledge on

a)      the theory and theoretical models of business strategy;

b)     the sources of market power and its relationship with pricing in different settings;

c)      innovation strategies and recent developments on intellectual property;

d)     obtaining and sustaining a competitive advantage.

and

2. shall be able to:

a)      Discuss the forces that shape business strategic choices and their responses to changing external conditions;

b)     Critically analyze the strategic decisions of real-world businesses in terms of pricing, advertising and innovation;

c)      Present and advocate for the strategic options of businesses and evaluate their contribution to the success or failure of businesses.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Students are required to have knowledge of microeconomics at the undergraduate level.

Program

1 Strategy and Economics

2 The Horizontal Boundaries of the Firm

3 The Vertical Boundaries of the Firm

4 Industry Analysis

5 Strategic Positioning for Competitive Advantage

6 Sustaining Competitive Advantage

Mandatory literature

David Besanko; Economics of strategy. ISBN: 978-1-119-37876-1
A. G. Lafley and Roger L. Martin; Playing to Win: How Strategy Really Works, Harvard Business Review Press, 2013. ISBN: 9781422187395

Comments from the literature

The recommended bibliography will be complemented with selected articles and papers for each chapter of the syllabus.

Teaching methods and learning activities

keywords

Social sciences > Economics > Microeconomics

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Participação presencial	30,00
Teste	50,00
Trabalho escrito	20,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	100,00
Frequência das aulas	42,00
Trabalho escrito	20,00
Total:	162,00

Eligibility for exams

Students are required to attend at least 75% of classes.

Calculation formula of final grade

Distributed evaluation: The final classification corresponds to the weighted average of the marks obtained in: exercises in class (30%), individual essay (20%), and final test (50%).

Final exam: There is no exam in the normal/first season. In the recourse/second or in the special seasons, the grade of the final exam yields the final classification.