Handbook

The performance of an organisation is driven by firm-specific, industry and economic factors. Economics in Management Practice has been developed to give you a deeper understanding of all three of these factors and to provide a rigourous foundation for any further study that you pursue in the area of Strategy.

Microeconomics is the focus of Units 1 to 6 of this course. It provides you with a deeper understanding of both firm-specific and industry factors that drive financial performance. These Units cover the purchase decisions of individual customers and how the features of the industry will influence company profitability. An understanding of microeconomics helps managers to better understand and predict the behaviour of customers, competitors and suppliers. These concepts are foundational to any further study in the area of strategy.

Macroeconomics is the focus of Units 7 to 11 of this course. It provides you with a deeper understanding of the economic factors that drive financial performance. These Units cover that factors that drive economic growth, inflation, employment, interest rates and exchange rates. An understanding of macroeconomics helps managers to better understand and predict how changes in the economy will affect the industry in which they operate.