Managerial Economics 2

• have the ability to use and apply course specific terminology
• be able to account for and distinguish between purpose and the actual application of models in relation to business economic decision making
• apply course specific methods to describe and analyze a concrete problem statement and recommend one or more suggestions for a solution
• take into account sustainability and Environmental, Social and Governance (ESG) aspects, and be able to reflect on social return and impact of investments and business cases
• describe principles and application for a number of key strategic analyses: PEST, Porters Five Forces, Porters Value Chain and the Boston-model, PLC, SWOT
• understand and apply the 3 management objectives: activity management, capacity management and treasury management in relation to the 3 management levels: strategic, tactical and operational
• use budgeting as an important management tool helping to reach the company’s objectives
• understand, apply and prepare budgets (Profit & Loss, Balance Sheet and Cash-Flow budgets)
• prepare cash flow for an investment in a specific business case by applying financial theories, models and arguing for e.g. the discount rate
• evaluate investments projects based on methods such as net present value, internal rate of return, pay back time, risk analysis, scenarios and real options
• Argue for the use of investment methods under different circumstances, e.g. time horison
• describe and analyze advantages and disadvantages of various financing alternatives and calculate effective interest rates for a given financing

Business understanding
Strategic analyses (PEST, Porters Five Forces, Porters Value Chain, the Boston-model, PLC, SWOT)
Financial Management
Budgeting (Profit & Loss, Balance Sheet, Cash Flow)
What is a Business case?
Preparing a cash flow statement for an investment project
Evaluating an investment; methods and choices
Optimal life span, tax and inflation
Risk analysis
International aspects of investment
Scenario analysis and real options
Equity and debt
Criteria for choice of financing including costs, flexibility, liquidity and financial risk
Take into account Sustainability and Environmental, Social and Governance (ESG) aspects of investments

62223

Class Lectures & Discussions, Cases & Activities

Business Development Group (100)
Global Business Engineering: 3rd semester
Production: 2nd semester
Chemical technology and International Business: 4th semester