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ACCOUNTING, MICROECONOMICS & STATISTICS
Microeconomics Essentials
Targeted Skill Level: Basic
Duration: 3 hours
COURSE DESCRIPTION
Creating a winning business strategy requires understanding basic market principles such as supply and demand. Microeconomics Essentials lays the foundation for strategic decision-making skills. From demand, cost and elasticity, to various market structures, you'll gain an understanding of the factors that affect business choices. Principles of game theory help you to analyze a competitor's actions and formulate a strategic response.
GOALS
After completing this course you will be able to:
- Interpret the effects of market demand on a product's price elasticity
- Categorize costs in ways that inform effective strategic analyses
- Identify the intersection of price and volume that will optimize profits
- Interpret how the microeconomics that underlie a business shape the overall
industry structure and define the range of available operating strategies within that industry strategies
- Apply game theory to anticipate the outcome of a competitors' strategic moves and countermoves
- Developed in conjunction with Professor David Besanko, the Alvin J. Huss Distinguished Professor of Management Strategy at the Kellogg School of Management at Northwestern University.
CASE SIMULATION
Apply the principles of microeconomics in the soft drink industry by following the relationship of Coca Cola and Pepsi throughout history. Examples from other industries including Internet Service Providers, airlines and automobiles also illustrate principles.
INSTRUCTIONAL PATH CONTENT
- Demand
- Demand for a product - the price v. quantity tradeoff
- Demand Drivers - the external factors that influence demand
- Price Elasticity -the causes and strategic effects of price elasticity
- Total and Marginal Revenue - When does chasing more demand not pay?
- Costs
- Total costs - what are the classifications?
- Fixed and variable costs - How do they differ and why does it matter?
- Average and marginal costs - Where are the economies and diseconomies of scale?
- Sunk costs - How they confuse strategic analyses
- Economic costs - Opportunity costs and highest-value use of capital
- Price-Output Determination
- Optimal quantity - The balancing of marginal revenue and marginal cost in determining a firm's profit-maximizing quantity
- Inverse elasticity - how price elasticity and profit margin relate to one another
- Price discrimination - Different pricing strategies for different market
segments
- Perfect Competition
- Firms in perfectly competitive markets - The context for applying microeconomic principles in all types of markets
- Market equilibrium - How markets set price in the short term
- Long-run equilibrium - How markets set prices in the long run
- Oligopoly and Game Theory
- Oligopoly market - characteristics of an oligopoly market and determining
Nash equilibrium in a simultaneous game
- Sequential games - How game theory applies where firms interact sequentially
JUST-IN-TIME CONTENT
- Glossary of microeconomics and finance terms
- Nearly 60 Frequently Asked Questions
- 9 business stories from the around the world
- "Next Stop, Armpit Heaven": Extending Mega Brands at Unilever and Proctor & Gamble
- Iberia Airlines and the Implications of High Fixed Costs
- Economic Costs: Philippines Soft Drink War
- Marginal Revenue = Marginal Cost? With Intellectual Property, Do The
- Same Rules Apply?
- Price Discrimination Online: Hollywood Goes to the Web
- In a Downturn, The Strong Survive - But the Weak? Dell vs. HP in the PC Market
- It's The (Virtual) Pits: Perfect Competition within Financial Markets
- I lose? You lose: The Philippines Cola War Redux
- How ValueJet's "Small is Better" Strategy Succeeded
Presented in the Interactive Directed Learning Model™
Call us at 610.388.0969 or use our convenient contact form.
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