MASTER OF BUSINESS ADMINISTRATION 2019 (OMAN)

MBA 502: Economic Analysis for Business

COURSE OUTLINE

Duration: From: June 13, 2019 To: June 15, 2019

Resource Person: Prof. A.T. Fonseka (tilak@pim.sjp.ac.lk / tilakfon@yahoo.com)

1. Course Description

Economics is a parent discipline and a foundation subject which has provided valuable
inputs to other subjects such as Management, Marketing, and Finance. At the core, it
studies how the key decision makers in an economy viz. individuals, firms and
governments choose to employ the scarce resources available to them to obtain the
maximum benefit.

Traditionally, Economics has been divided into two branches of study viz.
Microeconomics and Macroeconomics. Microeconomics deals with decision making at
individual level such as consumers seeking to obtain maximum satisfaction when
spending their limited income or firms seeking to maximise profit from their limited
capital. At the micro level, the challenge facing managers is how to utilize the scarce
resources at their command efficiently and effectively to achieve the goals of the
organisation. A clear understanding of the principles and techniques of Economics would
help managers to develop their skills in making sound business decisions.

Macroeconomics deals with the way the overall economy works. Changes in national
income, employment, average price level/ inflation, and exchange rates come within the
ambit of macroeconomic discussion. Government’s monetary, fiscal and exchange rate
policies affect a firm’s operations. These are macro variables over which individual firms
have little or no control. Nevertheless, managers should understand the implications of
government policies and policy changes for business operations and develop pragmatic
responses to such policy changes.

Finally, it is important to recognise that a country’s economy is linked to the global

economy. Changes in the global environment and policies adopted by foreign
governments have inescapable consequences for organizations. This again is a variable
which is beyond the control of managers but they are compelled to develop creative
responses to such changes.

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2. MBA Programme Goals

The course in Economics has direct relevance to the learning objectives of the MBA
programme. As stated, PIM’s MBA graduates will be able to:

A. Recognize the key knowledge and skills both at local and global level.
B. Reflect with critical thinking and solve organization- related problems.
C. Realize the importance of economic and ecological concerns and the humane
aspects of business activities
D. Reinforce integrity and ethics in being conscious about values when decisions are
made

3. Course Objectives and Learning Outcomes (LOs)

Learning MBA Programme Learning Objectives

Outcomes
LO1 Recognize the relevance and uses of micro and macroeconomic
concepts. In particular:
Familiarize oneself with the basic principles of Economics;
Use tools of economic analysis and their applications;
Develop an understanding of the economic basis of business
decision making; and an understanding of macroeconomics, in
particular the role of Government, including taxation, interest
rates, and other forms of market intervention

LO2 Reflect on the concepts of microeconomics and its relevance in

understanding market behaviour and economic environment as an
interactive dynamic process that works within a macroeconomic
framework.

LO3 Realize the applicability of the concepts learnt in understanding

the broad market framework and its applications to policy analysis
LO4 Reinforce the way one professionally makes economic analyses
for optimal outcomes within dynamic situations, both in
complementary and competing scenarios.

4. Course Delivery and Methodology

- Delivery of key concepts and principles in class.

- Interactive discussions in class. Participants are expected to engage in group
discussions on specific issues related to economic decision making.
- Application of economic techniques to practical situations in an organisation to
achieve optimum results.

Students are required to study the topic areas indicated in the study schedule before
attending class. Class discussions are conducted on the assumption that students have
studied the required materials in advance. The practical exercises done in class are
designed to consolidate student understanding of the concepts, principles and
techniques of Economics.
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5. Course Content

Prescribed Textbook

Fonseka, A.T. (2018). Economic Theory and Management Practice. Colombo: PIM
Publication.

Study Schedule

Session Topic Learning Key activity Mandatory

outcome Reading(s)
1 An overview of the Develop an Interactive ATF’s Text
Economy & indicators to understanding of Lecture Ch.1
judge the health and the overall
strength of an economy; economy & key Ch. 1 Q & A
Introduction to basic
trends in an
economic concepts,
economy through
economic questions & Central Bank
economic systems. Reports & other
publications.
Application of
key economic
concepts to
decision making
in organizations.
2 Price Theory: Demand Understand how Lecture: ATF Ch.2
Supply & Concept of the free market Theory of
Equilibrium; Changes in works & apply to demand,
Equilibrium decision supply & price
situations in firms Exercise:
ATF’s Text
Ch.2
Q&A
3 Govt. intervention in the Understand the Interactive
free market & rationale for Lecture: ATF Ch.2 &
consequences Govt. Exercise – Ch.3
Elasticity & its practical intervention. Ch.2 Q & A
importance Application of Lecture:
the concept of Exercise –
elasticity to ATF’s Text:
firm’s decision Ch.3 Q & A
making

4 Theory of production & Mastery of input- Lecture: ATF Ch.5

Theory of cost output & cost- Exercise –
output ATF’s Text:
relationships & Ch.5 Q & A
apply to a firm’s
decision making

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 5 Presentation on Market Master the Interactive ATF Ch. 6
structures; Application to features of Lecture:
selected industries competitive Exercise:
Perfect competition, markets & ATF’s Text-
Monopolistic monopoly; Attempt
competition, Oligopoly Students gain questions at
& Monopoly knowledge about end of Ch.6
industries, firm-
level strategies and
their performance.
Macroeconomics: Preparation of Lecture: ATF Ch. 8
6
Introduction to National A/Cs on Exercise
macroeconomic the new format ATF’s Text:
concepts; National (IMF). Appreciate Attempt
Income a/cs & insights provided by questions at
National Accounts.
determinants of end of Ch.8
Theories of growth.
economic growth. Classroom
Indicators of economic discussion on
& Human Development indicators to
judge the
Quality of
Human
Development

7 Govt. role in the Discuss the Lecture: ATF Ch. 9

economy; Govt. Policy implications of Exercise
instruments to influence fiscal policies for ATF’s Text:
econ. Growth; Fiscal firms. Interpret Attempt
Policy Govt. budgetary questions at
a/c. end of Ch.9
8 Govt. Macroeconomic Discuss the Lecture: ATF Ch. 10 &
Policies- Monetary implications of Exercise 11
Policy; Inflation. monetary policy ATF’s Text:
for firms. Role of Attempt
a Central Bank; questions at
Assess the impact end of Ch. 10
of inflation on &11
individuals, firms
& the national
economy
Business Cycle Learn about a Discussion on ATF Ch. 13,14
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International Trade, nation’s External external trade &15 and MCQs
Balance of Payments & a/c account of the
Exchange Rate country.

10 Environmental/ecological Learn about issues Discussion: How Govt. &

sustainability. of environmental Firms address
Open Forum
sustainability. environmental
Sustainability
Issues .

Areas for Self –study

 Pricing of services provided by State-owned enterprises (e.g. water, electricity etc.).

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6. Scheme of Evaluation

Assessment Description and detail of Specific Due date Weighting

item the assignment requirements (%)
Assignment 1 MCQs and short answer Master contents June 22, 25
Individual questions. of ATF’s Text 2019
Ch.1 to 11
Assignment 2 Group reports to be Master contents June 29, 25
Group prepared on the topics of ATF’s Text 2019
report given by the instructor in
a separate note.
Final Exam Final exam: covers all the July 6, 50
Closed book material discussed during 2019
the lectures, & chapters
indicated in the textbook,

NB: Students must score minimum 60% (30/ 50) at the final Exam to pass the
subject

Submission of Assignments

Assignment 1: Upload to the portal June 22 2019

Assignment 2: Upload to the portal June 29, 2019

Late submissions are subject to penalty marks (Students’ Handbook, 2019/20:
p.14)
Presentation of assignments
Assignments must be typed & adhere to rules stated in PIM’s Presentation
Guidelines.
The Declaration regarding the avoidance of plagiarism must be included at the
beginning of the assignment. It must carry the signature of the student(s).

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7. Assessment of Key Learning outcomes

Key Learning Outcome Link to the Individual Group Final

MBA Assignment Assignment Exam
Learning
Objectives
1. Recognize the relevance A Y Y Y
& uses of economic
concepts, principles &
techniques and their
applications in business
decision making (LO1)
2. Reflect on the concepts B Y Y
and principles of
economics and their
relevance in
understanding market
behaviour as an
interactive dynamic
process that works within
a macroeconomic
framework (LO2)

3. Reach diverse C Y Y
organizations, industries
and situations with
confidence (LO3)
4. Realize the micro and Y Y Y
macro concepts learnt in
understanding the broad
market framework and
their applications for
policy analysis (LO4)
5. Reinforce the way one E Y Y Y
professionally undertakes
economic analyses for
optimal outcomes within
dynamic situations, both
in complementary and
competing scenarios
(LO5)

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8. Rubric for Written Assignments (Individual / Group)

Aspect Marks/ Grading

0-59 (Fail) 60-70 (Pass) 71-80 81-90 91 & above
C/C+ B/B+ A-/A A+
Not meeting Barely Satisfactorily Above Well above
expectations. meeting meeting expectations. expectations.
expectations. expectations.
Aims and No proper aims Given, but not Acceptable. Acceptable. Clearly spelt out.
Objectives and objectives. clear Stated in detail. Stated
specifically and
precisely.

Contents and Not at all Usage of Usage of Usage of Usage of

analysis organized. theory, appropriate appropriate appropriate
Assignment description, theory, theory, theory,
does not contain relevant description, description, description,
the essential models, relevant relevant models, relevant models,
requirements. application of models, application of application of
theory to the application of theory to the theory to the
given scenario, theory to the given scenario, given scenario,
examples, etc., given scenario, development of development of
Not adequately development of arguments, arguments,
elaborated. arguments, examples, examples,
examples, rationalization, rationalization,
rationalization sharing sharing
etc are given. experiences. experience and
Critical analysis challenging the
is available but concepts/ theory.
weak. Sound critical
analysis.

Quality and Nothing or Weak but Acceptable. Acceptable High quality

relevance of weak. Not acceptable. Appropriately presentation recommendat
recommendati acceptable. Not linked to linked to the of issue- ions that are
ons the issues issues specific issue-specific
identified. identified. recommendat with relevant
Outputs and ions with outputs and
outcomes are outputs and outcomes.
not clear. outcomes.

Adequacy Not at all Short- Satisfactory but Correct format Correct

and accuracy acceptable. comings can be further has been used. format has
of referencing and errors improved. However, a been used.
are evident. Correct format variety / mixture Variety /
has been used. of sources such mixture of
Few citations as journal, books, sources are
do not reflect as conference visible.
references and papers, websites
vice versa. etc. are not
visible.

Overall Not acceptable. Acceptable. Acceptable Sound English. Excellent

presentation Errors/ English level. Consistent competency in
with proper mistakes are Few formatting formatting. Few English.
grammar, observed. spelling and spelling and Consistent
spelling, syntax grammar grammar formatting. No
and mistakes. mistakes. spelling and
formatting. grammar
mistakes.
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9. Rubric for Final Examination (Essay-type Questions)

Aspect Marks/ Grading

0-59 (Fail) 60-70 (Pass) 71-80 81-90 91 & above
C/C+ B/B+ A-/A A+
Not meeting Barely Satisfactorily Above Well above
expectations. meeting meeting expectations. expectations.
expectations. expectations.

Introducti- No No quotes, A relevant and A relevant A relevant

on/ definitions. only one appropriate and and
background definition. quote with a appropriate appropriate
definition. quote with at quote with
least one several
definition. suitable
definitions.

Theoretical No theory or Elaboration Elaboration & Elaboration & Elaboration &

under- irrelevant on theory/ explanation / explanation / explanation /
pinning and theory/ models is description of description of description of
indication of models weak. relevant theory relevant theory relevant theory
models Examples and the models. and the models. and the models.
are hardly Graphical Graphical Graphical
stated. illustrations are illustrations are illustrations are
given. Indication given. Indication given. Indication
of exceptions (if of exceptions (if of exceptions (if
any). any). any).

Application Incorrect Explanation on Explanation on Explanation on Explanation on

application application of application of application of application of
theory to the theory to the given theory to the given theory to the
given scenario scenario. scenario. given scenario.
is barely Examples quoted. Examples quoted. Logical order.
acceptable. Solid flow.
Examples Examples
quoted. quoted.

Sharing No evidence Inadequate Satisfactory Good High quality and

experiences at all. evidence evidence evidence relevance
provided. provided. provided evidence
reflecting provided
his/her reflecting his/her
experience, experience,
knowledge knowledge etc.
etc.

Arguments Nothing Inadequate Satisfactory Good way of High quality

available. and attempt is arguing with arguments
presented
unclear. made to logic and are logically
provide some evidence. presented
arguments.

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10. Grading Scales

Marking Scale Grade

91 – 100 A+
86 – 90 A
81 – 85 A-
76 – 80 B+
71 – 75 B
66 – 70 C+
60 – 65 C
00 – 59 F

11. Supplementary Readings

Krugman, P. & Wells, R. (2009). Economics. NY: Worth Publishers.

Lipsey, R.G. & Chrystal, A. (2011). Economics. UK: Oxford University Press.
Mankiw, N.G. (2012). Principles of Economics. India: Cengage Learning.

12. Course Evaluation and Development

The PIM is constantly trying to improve the delivery of its courses. Any feedback
students may have are welcome. Previous feedback has encouraged review of assessment
approaches, the set text and approaches used to interact with students. It is believed that
these improvements have positive impacts on the students.

13. Quality Assurance

The PIM is actively monitoring student learning and quality of the student experience in
all its programmes. A random selection of completed assessment tasks may be used for
quality assurance such as to determine the extent to which programme learning objectives
are being achieved. The information is required for accreditation purposes and the
aggregated findings will be used to inform changes aimed at improving the quality of
MBA programmes of the PIM. All material used for such processes will be treated as
confidential and will not be related to course grades.

14. Academic Misconduct

The PIM has strict rules governing academic misconduct and there are substantial
penalties that can be applied to students who are found in breach of these rules. Academic
misconduct includes, but is not limited to:
 Plagiarism
 Unauthorized collaboration
 Cheating at examinations
 Theft of other students’ work

Additionally, any material submitted for assessment purposes must be work that has not
been submitted previously, by any person, for any other course at the PIM or elsewhere.

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15. Plagiarism

All students are required to upload the written assignments to “Prajna” portal on or before
the due date. IT Division of the PIM will centrally monitor the “similarity index” using
the turn-it- in software for plagiarism.

The assignments carrying more than 30% in “similarity index” will not be accepted by the
PIM.

16. Mitigating Circumstances

Students should adhere to the PIM standards which are applicable for assignment
submission and the final examinations. Late submission of assignments is not accepted
except for exceptional case-by-case decisions made by the course coordinator in
consultation with the Senior Asst. Registrar.

17. Other Information

PIM Student Handbook should be referred to for other relevant information regarding the
conduct of this course.

Prof. Tilak Fonseka

May 22, 2019

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