Firm Analysis and Strategy

3 Credits · Level: Graduate

Firm Analysis and Strategy is an integrative course that presents concepts related to microeconomics and competitive strategy. Microeconomics is the fundamental discipline (or “mother tongue”) of all business. Understanding basic microeconomic concepts allows managers to make better business decisions. Moreover, microeconomics represents the basis for developing understanding in several other business disciplines, including finance, strategy, and operations management, among others. Competitive strategy is concerned with managing the competitive position and long-term development of the business enterprise in order to ensure its survival and success. Every firm must create and sustain competitive advantage if it is to survive and prosper over the long-term. The course provides frameworks, tools and concepts to make economically sound business decisions, and ultimately to identify or create sources of competitive advantage. The course begins with essential microeconomic concepts, including economic costs, market demand and profit maximization. It then builds on these concepts to examine how different types of industry structures provide better or worse profit-making opportunities for industry participants; how firms position themselves in particular industries; how firms optimally set price and output levels; whether firms should enter or exit industries and under what circumstances; how firms build resources and capabilities important for competitive advantage; how firms optimally respond to their competitors; and how firms navigate the policy and non-market environments; among others.