See under 'onderwijsleeractiviteiten' ('activities')
Order of enrolment:
The following course units should be:
* successfully completed: /
* taken before: /
* at least taken at the same time: /
Basic knowledge of microeconomics
See under 'onderwijsleeractiviteiten' ('activities')
Articles and literature
Examples and samples
Toledo / e-platform
Is also included in other courses
- Study Abroad Programme in European Culture and Society (PECS)
- Master of Economics (Major 1: General Economics) 60 ects.
- Master in de economische wetenschappen (Major 1: General Economics) 60 ects.
- Master in de toegepaste economische wetenschappen (Major: Strategy, Innovation and Entrepreneurship) 60 ects.
- Master in de toegepaste economische wetenschappen (Minor: Marketing) 60 ects.
- Master in de toegepaste economische wetenschappen (Minor: Strategy, Innovation and Entrepreneurship) 60 ects.
- Master in de toegepaste economische wetenschappen: handelsingenieur (Minor: Strategy, Innovation and Entrepreneurship) 120 ects.
- Master in de toegepaste economische wetenschappen: handelsingenieur in de beleidsinformatica 120 ects.
- Master of Business Economics (Major 1: Strategy, Innovation and Entrepreneurship) 60 ects.
- Master of Business Economics (Minor 1: Strategy, Innovation and Entrepreneurship) 60 ects.
This course explores the overlapping areas of industrial economics and strategic management. It is designed to provide students with an understanding of the economic principles underlying strategy formulation. Based on an analysis of the factors shaping the industry environment, firms assess their positioning relative to their rivals, and formulate strategies in order to achieve a durable competitive advantage. In choosing between strategies, firms have to take into account the possible reactions of rivals to their strategic decisions. The course provides students with the tools to analyse the positioning and performance of firms in different industry environments. These tools mainly rely on economic theories (theories of industrial organization, basic concepts of game theory, transaction cost theory, and the resource based theory of the firm). The course covers various topics in strategy formulation, such as product positioning and differentiation, diversification, vertical integration, pricing, strategic commitments, entry deterrence, and entry into foreign markets.
Upon completion of this course, students are able to:
1) show they understand the economic principles underlying industry structure and strategy formulation
2) use the necessary skills in analysing the drivers of the competitive environment and in identifying sound corporate strategies
3) apply theoretical and empirical contributions in academic research to real world cases and to find solutions to real world cases in theory, with good judgement
4) develop a critical attitude and an ability to formulate research questions and conduct research independently
5) use the necessary skills in searching for, and making good use of, publicly available information on firms and industries
6) expose team work and presentation skills.
Description of learning activities
The teaching philosophy for this course is partly based on problem based learning methods. Instead of an emphasis on theory lectures, students are encouraged to work with theory themselves, independently or in teams. In preparation for class, students are asked to attempt to find answers to predetermined theory and case questions using the textbook and case material. The questions point to the most important concepts in theory, and application of these concepts to the cases aims to foster a better understanding of the importance of economic analysis for strategic decision making. A number of student teams will be asked to hand in their answers to some of the questions and/or to prepare a short presentation describing their answers and to present their views in class. Since students may come up with diverging answers to these questions, this invites discussion and encourages a more critical attitude towards the usefulness and applicability of theory. Teaching methods based on problem based learning principles have been shown to provide students with a better applicable and durable knowledge base. Implementing this method in this course is facilitated by a comprehensive and accessible textbook and is complemented by a number of (mini-)lectures in which the more complex parts of theory are explained. Teams of students furthermore conduct a strategy project in which they thoroughly and critically analyse the strategy followed by a chosen firm in a particular industry, using the theoretical tools provided in the course, and culminating in a strategy recommendation. The teams deliver a report on their analysis in the last week of the semester.
Besanko, David, David Dranove, Mark Shanley, and Scott Schaefer, 2010, Economics of Strategy, 5th Edition, New York: John Wiley & Sons (ISBN: 978-0-470-48483-8).
Belderbos, R., 2010, Competitive Analysis and Strategy, Acco.
(reader containing cases, syllabus, and theory slides)
Determination of grades
* The grades are determined by the course holder(s) (titularis), as announced via Toledo and the examination schedule. The result is computed and expressed as a whole number on a scale of 20.
* The in-class participation (presentations & assignments) count for 20% of the final grade, the project paper counts for 35% of the final grade, and the final exam counts for the other 45%. If there is a deficit score (<10/20) for the final exam, this exam grade becomes the final grade for the course. Hence, a minimum grade of 10 for the final exam is required to pass the course.
* Based on peer assessment (team self evaluation) a correction can be made to the grade for the in-class participation and paper. The correction will correspond to the magnitude of the peer evaluation of the student contribution to the team work, and will be communicated via Toledo.
Evaluation third examination period
* During an academic year, the student has 2 chances to participate in the exam: a first time during the first or second examination period, and a second time during the third examination period.
* The characteristics of the determination of grades in the third examination period are similar to those of the first or the second examination period. The grades for the in-class participation and paper of the first- or second examination period remain valid in the third examination period.
*Deadline: Term of deliverance and deadline will be determined by the lecturer (titularis) and communicated via Toledo.