|MANAGERIAL ECONOMICS, BASIC COURSE||MIOA01|
The aim of the course is to give a general economic overview. The students should, from an economic perspective, arrive at an understanding of the interplay of the various part systems in the enterprise. The course is intended to give a basic ability to understand and utilize economic and business concepts. Basic models used in this context are also included in the course. Relying on this basic knowledge, the students must be able to form judgements taking into account the whole of the enterprise. Special stress is laid on the basic knowledge of economics, which will be necessary in the professional life of a Master of Engineering Science.
Knowledge and understanding
For a passing grade the student must
Skills and abilities
For a passing grade the student must
After a general introduction of the enterprise as an object for study, a number of basic economic concepts and models are introduced. The areas of business plan, strategy, organization and marketing are first covered.
New models are created arising out of contacts with entrepreneurs and with understanding given to entrepreneurial conditions and driving forces.
Thereafter, the basic concepts of cost and income analysis, followed by outcome-planning models, describing how these basic economic concepts are influenced by volume. Product calculation is treated comprehensively. Both self-cost and contributory calculations are described in order that the student should be able to apply the models and understand their strengths and weaknesses.
When one is acquiring data for various calculations and models, one needs an overall comprehension of how economic information is stored within a company. This knowledge is supplied by a general description of the accountancy law including, amongst other things, exercises where students have to apply a running account and balance the books. Stress is laid on external reporting. A general run through of the basic plan is included in the course. An overview of the content of the law on annual accounts is given. The focus, here, is on the understanding of the annual report of the enterprise and on being able to carry out an analysis of the accounts. The students are invited to apply these basic skills in business accountancy in a laboratory exercise, where, in groups of two, they are given the opportunity to simulate business transactions in a limited company. Every business transaction is noted and, during the game, a number of balance sheets are drawn up. A follow-up on how the enterprise is doing is carried out, using key values.
Throughout the course, special stress is laid on the basic knowledge of business administration, which will be necessary for the professional activities of a Master of Engineering Science. This is especially noteworthy when treating of investment decisions. Here, the basic static models of investment decision-making are comprehensibly described, as it is very important that a person with Master of Engineering Science should be able to carry out profitability calculations, as the basis for decision-making in investment situations. If this basis for investment is to be complete for a manufacturing enterprise, it is often necessary to make estimates of capital requirements. Detailed analysis of the requirement for capital is comprehensively treated during the course. Means of financing the activities of an enterprise are also described.
Möller, J (red): Övningar i Industriell ekonomi, Liber-Hermods, 2002.
Olsson, J & Skärvad, P-H: Företagsekonomi 100 Faktabok, Liber-Hermods, 2007.
Becker,M (red): Kompendium i Industriell ekonomi AK, 2007. (Compendium)
Higher education credits: 6. Grading scale: TH. Assessment: Approved examination, containing both theoretical questions and problem solving.
Higher education credits: 3. Grading scale: UG. Assessment: Approved article portraying an entrepreneur.