All programmes > Competitive Analysis and Strategy

Competitive Analysis and Strategy (B-KUL-D0R43A)

6 ECTSEnglish39 Second termCannot be taken as part of an examination contract
Belderbos Rene
OC Toegepaste economische wetenschappen FEB Campus Leuven

Aims

Upon completion of this course, the student:

1) is able to understand the economic principles underlying industry structure and strategy formulation;

2) has developed skills in analysing the drivers of the competitive environment and in identifying sound corporate strategies;

3) is able to apply theoretical and empirical contributions in academic research to real-world cases and to find solutions to real-world cases in theory, with sound judgement;

4) is able to formulate research questions and conduct research independently;

5) has developed skills in searching for, and making good use of, publicly available information on firms and industries;

6) has further developed team work and presentation skills.

Previous knowledge

Basic knowledge of microeconomics.

Is included in these courses of study

Activities

6 ects. Competitive Analysis and Strategy (B-KUL-D0R43a)

6 ECTSEnglishFormat: Lecture39 Second term
Belderbos Rene
OC Toegepaste economische wetenschappen FEB Campus Leuven

Content

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 new markets.

Course material

Required reading:

  • Besanko, David, David Dranove, Mark Shanley, and Scott Schaefer, 2017, Economics of Strategy, 7th Edition, New York: John Wiley & Sons (ISBN: 978111978761). 
  • Case Reader available for purchase at the Case Centre
  • Additional course material (such as theory and summary slides) is distributed via Toledo.

Toledo:

Toledo is being used for this learning activitity.

Format: more information

The teaching philosophy for this course is partly based on problem based learning methods. Students are encouraged to read through the theory and consult online mini-lectures in advance, independently or in teams. In preparation for class, students are asked to attempt to find answers to 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 prepare a short presentation of 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 online lectures and slides, available on Toledo, in which the more complex parts of theory are explained. Teams of students furthermore conduct a strategy project in which they 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.

Evaluation

Evaluation: Competitive Analysis and Strategy (B-KUL-D2R43a)

Type : Partial or continuous assessment with (final) exam during the examination period
Description of evaluation : Written, Paper/Project, Report, Presentation, Self assessment/Peer assessment, Participation during contact hours
Type of questions : Open questions
Learning material : None

Explanation


Features of the evaluation

The evaluation consists of:

  • In-class participation (hand-ins and presentations, team work)
  • A project paper (team work)
  • A written, closed-book exam

The written exam is taken in two parts. Half of the exam will be scheduled in the middle of the semester during a scheduled class and the other half is scheduled in the exam period in June.

Deadlines and terms of deliverance will be determined by the lecturer and communicated via Toledo.

Determination of final grades

The grades are determined by the lecturer as communicated via Toledo and stated in the examination schedule. The result is calculated and communicated as a whole number on a scale of 20.

 

The final course grade is a weighted score and consists of:

  • ­The in-class participation, counting for 20% of the final grade
  • ­The project paper, counting for 20% of the final grade
  • ­The written exam, integrating the scores on the two parts, counting  for 60% of the final grade.

 

If there is a deficit score (<10/20) for the written exam, this exam grade becomes the final grade for the course. Hence, a minimum grade of 10 for the 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 project paper. The correction will correspond to the score a student receives by fellow students in the team for his/her contribution to the team work. The details of the peer evaluation will be communicated via Toledo.

If the student does not participate in the exam scheduled during the exam period, the final grade of the course will be NA (not taken). If the student does not participate at the in-class participation, project paper, or the partial exam during the semester, the grades for this/these partial evaluation(s) will be 0 in the determination of the final course grade.

If one of the set deadlines is not respected, the grade for that respective part will be 0 in the determination of the final course grade, unless the student  is granted a new deadline by the lecturer. Requests for a new deadline need to be well motivated.

Information about retaking exams

Second examination opportunity

The features of the evaluation and determination of grades are similar to those of the first examination opportunity, as described above.

Due to the nature of the in-class participation and the project paper, the grades obtained for these parts at the first exam opportunity will be transferred to the second examination opportunity. In the second exam opportunity, the full written exam (consisting of both parts) has to be retaken.