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Module 2

Managerial Economics (3 credits)

Taught by Kevin Mumford

This course, a synthesis of micro and macro economics, develops a high level of knowledge regarding the contribution economic theories make to understanding the strategic behavior and the nature of economic organizations. An understanding of the economic fundamentals that drive efficiency, effectiveness and competitive advantage is essential for managers, particularly in turbulent times. The microeconomics portion of this course focuses on behavior in the marketplace studying consumers, produces, middlemen, price makers, and price takers. The macroeconomics portion seeks to understand phenomena such as inflation, unemployment, interest rates, macroeconomic fluctuations, and government policies including taxes, government spending, deficits, and monetary policy.

Before the residency, you will learn the basics of microeconomic and macroeconomic theory by reading the assigned textbook chapters, viewing the provided lecture videos, and submitting your answers to four homework assignments. Our time on campus will be spent on advanced topics in discussions, class experiments, and case study analysis to study how current (but not new) economic conditions influence the kinds of business decisions you make. The primary objective of this class is for you to learn to think more like an economist. The specific topics that we cover are less important than the principles that guide how an economist views the world. The best way to learn to think like an economist is to practice.

Meet Krannert Associate Professor of Economics Kevin Mumford and learn more about this course.

Financial Management (3 credits)

Taught by Amanda Thompson

The content of the course is devoted to the two basic financial problems that all companies face: (1) On what should funds be spent (i.e., investment decisions)? and (2) From where should funds be obtained (i.e., financing decisions)? To understand how to make these decisions, we first establish a base in the art of financial modeling. Supporting topics are financial statement analysis, financial planning, stock and bond valuation, project analysis (i.e., capital budgeting), risk and return in capital markets.  

In the second half of the course, we consider topics such as cost of capital, managing the corporation's capital structure (i.e., the debt vs. equity decision), and corporate valuation and payout policy.

Operations Management (3 credits)

Taught by Ananth Iyer

Operations and supply chains are responsible for the bulk of the assets of a company and their deployment has a significant impact on performance. The first segment of this course focuses on operational choices for a single company. It will focus on firm level choices of capacity, inventory and lead time to optimize performance. The goal is to understand the impact of these choices on the system and to anticipate the impact of making changes. Example: operations discussed will include manufacturing and service systems, ranging from automobile and appliances to call centers, health care and banking. The second segment of the course will focus on managing supply chains i.e., collections of firms who jointly generate the product or service. It will focus on understanding the impact of network structure, levels of capacity, impact of forecast error and lead time, approaches to manage global procurement etc. In summary, the course will develop the capability to enhance competitiveness by improving the management of the operation or supply chain.

Meet Professor Ananth Iyer and learn more about this course.

Strategic Management (3 credits)

Taught by Rich Makadok

Strategic management is taught from the perspective of the general manager who is involved with managing an entire business unit. One of the most important ideas which will be developed in this course is that of competitive advantage. Competitive advantage has complex origins and cannot be sustainable unless its sources can be protected from duplication and imitation. The course focuses on the fundamental conditions that permit a firm to conceive, develop and sustain a superior strategic position. The course provides an opportunity to develop approaches to general management based on an integration of multi-functional and administrative perspectives. As the course develops, participants will practice the application of concepts, tools, and approaches developed in the various readings and during the class discussions.

Please note course offerings and faculty are subject to change.