Jaypee Business School

A Constituent of Jaypee Institute of Information Technology (Deemed University) A-10, Sector 62, NOIDA, 201 307 India MBA 2012-14 Batch; Trimester IV July 09 September 21, 2013 Course Code: 13MCEC05 Course Title: Economics of Strategy Course Credit: 1.5 Session Duration: 90 Minutes Name of the Faculty: Debdeep De Email ID: debdeep.de@jiit.ac.in 1. Course Introduction The use of Economics as a guiding principle will enable students to analyze broader and new phenomena across different firms and industries with unifying framework. Thus students will be able to systematically analyze key strategic situations and suggest effective strategies across distinct industry and firm settings. 2. Course Objectives

To understand how firms in industries succeed while others fail. Use modern tools of industrial organization to analyze business strategies. To understand and implicate how firms sustain their economic profits over a longer period of time.

To develop ability to structure problems necessary to address practical questions related to firm strategies and market conduct.

3. Learning Outcome of the Course Students would be able to appreciate and evaluate alternatives to address situations pertaining to strategic decisions. They would be able assess critically with basic tools and concepts of strategy.

4. Text Book:

David Besanko, David Dranove, Mark Shanley and Scott Schaefer. Economics of Strategy. Sixth Edition, 2013.

5. Additional Readings and References:

Robert J. Michaels. Economics for Managers Transactions and Strategies, Cengage, 2012 John Lipczynski, John Wilson. The Economics of Business Strategy, Pearson Education, 2004.

6. Evaluation Details a. Teachers Assessment Quizzes/Class Exercises/case analysis Empirical Project/Term Paper 30% 10% 20% 30% 40%

b. Mid-Term Test c. End-Term Test 7. Session Plan Session No. 1 Topics

Readings Besanko Chapter 1 Besanko Chapter 2 Besanko Chapter 3 Besanko Chapter 4

Cases/Activities Class Discussion

Economic Concepts of Strategy: Basic Principles

The Horizontal Boundaries of the Firm

De Beers Consolidated Mines Pepsi-Cola Beverages Pepsi-Cola Beverages Caterpillar Tractor

The Vertical Boundaries of the Firm

4-5

Analysis of firms behaviour and strategy formulation

Industry analysis: Assessment of the competitive pressures in Besanko an industry Chapter 8 Value creation/capture framework: Consumer and firm Besanko interactions that translates economics to strategy Chapter 9 Sustaining competitive advantage Besanko Chapter 11

7-8

De Beers Consolidated Mines De Beers Consolidated Mines

9-10