Business Analysis and Decision Making Course Specification - Scholarship Essay Example

SCHOOL OF MANAGEMENT Specification 2008/09 MN101 Value: Half unit Status: Core (Management - Single/Major) Business Analysis and Decision Making Availability: Spring Prerequisites: None Recommended: None Co-ordinator: Sukhdev JOHAL Course Staff Martin Bicknell, Sukhdev Johal, Marina Michalski Aims: This course unit combines elements of accounting, economics, and political economy into an interesting framework - the Value Added Framework, which is used to analyse, understand, and interpret corporate structure and behaviour. Through the value added framework we develop an understanding of key concepts and techniques which allow an analysis and interrogation of both the internal (e.g. labour share of value added) and the external characteristics (e.g. vertical integration) of a business. As the unit progresses, 'macro' factors are introduced which allow us to contextualise our 'micro' understanding. This unit requires no prior knowledge of the accounting, economics and political economy although a general awareness of economic and corporate conditions and debates is useful. The unit serves as a foundation for years 2 and 3. Learning Outcomes: By the end of the course unit students should be able to or have acquired: A conceptual understanding of the Value Added Framework. A technical grasp of how to undertake calculations used in the framework. The ability to interpret the results of the calculations. The ability to apply the framework to the analysis of the internal and external characteristics of a business. To set the corporate performance within a macro context. Interrogate annual report and accounts using appropriate methods, analyse and interpret the results and present a short case to the workshop group. Course Content: The teaching structure is organised into three, inter-related, themes: Market Conditions and Cost Recovery. How a Value Added Framework can explain the UK's economic decline; Value Added: its calculation and its importance; How do markets work' Using markets for cost recovery; New technology, direct exports and Globalisation to increase cost recovery; Cost Reduction. Understanding production and using productive intervention to increase flow; How design & development and quality control contribute to cost reduction. Stakeholder Analysis. Using annual report and accounts to analyse a business; Institutional conditions and their impact on business; Using the Value Added Framework: (a) The case of privatisation; (b) Structural factors and how they affect business. Within these themes we separate and de-contextualise the key areas of market, productive and financial performance. Later we reinstate context in order to first, investigate the institutional conditions and secondly, examine how both internal and external forces affect the firm/industry. Teaching & Learning Methods Organisation 10 Lectures (1 hour). Lectures start week beginning 12th January 2009 8 Workshop (1 hour each). Workshops start week beginning 19th January 2009 The lectures are organised into three themes with each lecture introducing and developing a new topic/issue or debate while steadily contextualising our understanding to show inter-relations between topics/issues. Before attending each lecture you are expected to read at least one article related to the topic area in addition to the course textbook readings (see lecture programme). The workshops provide the opportunity to discuss issues related to the lecture and to develop your understanding of the topic while deepening grasp of the subject. The teaching structure will vary but will include discussion of key issues and a small individual/group presentation. During most weeks you will receive a worksheet which you must complete for the following weeks' workshop as it will serve as a basis for discussion. Additionally, you must present a short case study based on a company. Key Bibliography: Individual sets of readings are indicated for each week of the course. Recommended textbook: Haslam, C. and Neale, A. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. ISBN 1-86152-400-5. 338.751NEA -The 2nd edition contains a more comprehensive discussion of value added and its use. In-course Feedback: The course tutor will provide feedback during workshops and through assessment of the written assignment. Standard School of Management course evaluation forms will be distributed in either week 8 or 9. Assessment: Coursework = 30% - Submit THREE essay. The submissions must be word-processed. The essay titles are included in the course outline. Examination = 70% - Essay format - no calculations. Two-hour unseen paper, containing eight questions. Answer three questions. Deadlines: 12th March 2009 (Essay submissions) The course outline is correct at the time of publication but may change due to the policy of continuous improvement. The School of Management will notify you of any changes. MN101: Business Analysis and Decision Making 2008/2009 Lecturer: Sukhdev Johal (co-ordinator), Room 105, Moore Complex, s.johal@rhul.ac.uk Workshop tutors: Martin Bicknall Marina Michalski Brief Outline and Aims of the Course This course unit combines elements of accounting, economics, and political economy into an interesting framework - the Value Added Framework, which is used to analyse, understand and interpret corporate structure and behaviour. Through the value added framework we develop an understanding of key concepts and techniques which allow an analysis and interrogation of both the internal (e.g. labour share of value added) and the external characteristics (e.g. vertical integration) of a business. As the unit progresses, 'macro' factors are introduced which allow us to contextualise our 'micro' understanding. This unit requires no prior knowledge of the accounting, economics and political economy although a general awareness of economic and corporate conditions and debates is useful. More importantly, the unit serves as a foundation for years 2 and 3. The teaching structure is organised into three, inter-related, themes: 1. Market Conditions and Cost Recovery. 2. Cost Reduction. 3. Stakeholder Analysis. Within these themes we separate and de-contextualise the key areas of market, productive and financial performance. Later we reinstate context in order to first, investigate the institutional conditions and secondly, examine how both internal and external forces affect the firm/industry. Learning outcome By the end of the course unit students should be able to or have acquired: A conceptual understanding of the Value Added Framework. A technical grasp of how to undertake calculations used in the framework. The ability to interpret the results of the calculations. The ability to apply the framework to the analysis of the internal and external characteristics of a business. To set the corporate performance within a macro context. Interrogate annual report and accounts using appropriate methods, analyse and interpret the results and present a short case to the workshop group. Overview of Lecture and Workshop Topics Week Beginning Lecture Workshop Topic 1. (12th Jan) Introduction No workshop. THEME 1: Cost Recovery and Market Conditions 2. (19th Jan.) How a Value Added Framework can explain the UK's economic decline. Introduction -discussion of course unit aims, objectives and expectations. Allocation of presentation dates. 3. (26th Jan.) Value Added: its calculation and its importance. Discussion of the UK's relative economic decline and identification of causes. 4. (2nd Feb.) How do markets work' Using markets for cost recovery. Case study: BT, Mercedes-Benz, and Volvo. 5. (9th Feb.) New technology, direct exports and Globalisation to increase cost recovery. Case study: Analysing the TV, video markets and car markets. THEME 2: Cost Reduction 6. (16th Feb.) Understanding production and using productive intervention to increase flow. Case Study: Volvo. 7. (23rd Feb.) How design & development and quality control contribute to cost reduction. Workshop exercise: Identify the industry and identify the companies- Snowball, Squealer, Major, Napoleon. THEME 3: Stakeholder Analysis 8. (2nd Mar.) Using annual report and accounts to analyse a business. Presentations -non-assessed. 9. (9th March.) 1. Institutional conditions and their impact on business. 2. Structural factors and how they affect business Presentations - non-assessed. 10. (16th Mar.) Review No workshop Organisation 10 Lectures Lectures start week beginning 12th January 2009 8 Workshop (1 hour each) See timetable for details Workshops start week beginning 19th January 2009 Lectures The lectures are organised into three themes with each lecture introducing and developing a new topic/issue or debate while steadily contextualising our understanding to show inter-relations between topics/issues. Before attending each lecture you are expected to read at least one article related to the topic area in addition to the course textbook readings (see lecture programme). Workshops The workshops provide the opportunity to discuss issues related to the lecture and to develop your understanding of the topic while deepening grasp of the subject. The teaching structure will vary but will include discussion of key issues and a small individual/group presentation. During most weeks you will receive a worksheet which you must complete for the following weeks' workshop as it will serve as a basis for discussion. Additionally, you must present a short case study based on a company. Your workshop tutor will allocate company cases and presentation dates during the first workshop. Lecture Programme 1. 12th January Introduction to the course Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 7: The political environment, pp.167-201. General: This book will be useful for all subjects including those taught in years 2 and 3. Russell, A. (1967) Clear Thinking for All, Pergamon Press. THEME 1: Cost Recovery and Market Conditions 2. 19th January How can a Value Added Framework can explain the UK's economic decline' Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 3: Competitive business: the macro-economic context, pp.67-85. Additional readings: Cairncross, A. (1995) The British Economy since 1945, 2nd edition, Blackwell, Oxford. Chapter 8, Half a Century in Retrospect, 1945-1995, pp. 288-323. eds. Griffith, A. and Wall, S. (1999) Applied Economics: an introductory course, 8th edition, Pearson Educational, Harlow. Chapter 1: Changes in the UK economic structure, pp.1-29. Williams, K. Williams, J. and Haslam, C. (1990) 'The Hollowing Out of British Industry' in Economy and Society, (Journal) vol.19, no.4, November, pp.456-490. 3. 26th January Value Added: its calculation and its importance Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 2: A competitive business analysis: A value added framework, pp.33-46. Additional readings: (one of the following) Cox, B. (1979) Value Added: an appreciation for the accountant concerned with industry, Heinemann, London. Chapter 1: What the book is about, pp.1-10; chapter 2: Measuring the Nation's Income, pp.11-23; chapter 3: Value Added and Corporate Reporting, pp.24-40. Gilchrist, R. (1971) Managing for Profit: the Added Value Concept, George Allen & Unwin, London. Chapter 1: The Nature of Company Income, pp.9-14; chapter 3: Incomes and Employment, pp.24-33; chapter 5: The Added Value Concept, pp.45-54. Gray, S. and Maunders, K. (1980) Value Added Reporting: uses and measurement -A Research Study, The Association of Certified Accountants, London. Chapter 4: The Measurement and Distribution of Value Added, pp.27-38; appendix I: Value Added Statements, pp.44-53. Morley, M. (1978) The Value Added Statement: a review of its uses in corporate reports, Gee and Co. (Printers) Ltd. on behalf of The Institute of Chartered Accountants of Scotland, Edinburgh. Chapter 10: Value added statements for selected forms of business entity and selected industries, pp.115-130. Renshall, M. Allan, R. and Nicholson, K. (1979) Added Value in External Reporting: a study of its aims and uses in the context of general purpose financial reports, The Institute of Chartered Accountants in England and Wales, London. Chapter 2: History and Background, pp.1-2; chapter 2: The Concept of Value Added, pp.3-7; chapter 3: The Calculation of Added Value, pp.8-21. 4. 2nd February How Do Markets Work' Using markets for Cost Recovery Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 2: A competitive business analysis: A value added framework, pp.46-65. Additional readings: (One of the following) Assael, H. (1998) Consumer Behaviour and Marketing Action, ITP, London. Chapter 12: Demographics and Social Class, 381-419. Earl, P. (1986) Lifestyle Economics: consumer behaviour in a turbulent world, Wheatsheaf Books, Brighton. Chapter 3: The Enterprising Consumer, pp.53-84; chapter 10: Choice Rules and the Competitive Process, pp.254-271. Engel, J. Blackwell, R. and Miniard, P. (1995) Consumer Behaviour, (International edition) 8th edition, The Dryden Press, Fort Worth. Chapter 2: Market Segmentation and Demographic Analysis, pp.39-46; chapter 24: Diffusion of Innovations, pp.867-877; chapter 23: Retailing, pp.821-845. Galbraith, J.K. (1975) Economics and the Public Purpose, Penguin Books, Harmondsworth. Chapter 12: How Prices are Set, pp.126-137. eds. Griffith, A. and Wall, S. (1999) Applied Economics: an introductory course, 8th edition, Pearson Educational, Harlow. Chapter 9: Pricing in Practice, pp.180-195. Soloman, H. Bamossy, G. and Askegaard, S. (1999) Consumer Behaviour: a European perspective, FT/Prentice Hall, Harlow. Chapter 12: Income and social class, pp.326-351. Williams, K. Haslam, C. Johal S. and Williams, J. (1994) CARS: Analysis, History, Cases, Berghahn Books, Oxford. Chapter 5: Market Characteristics and Volume Fluctuations, pp.64-79. 5. 9th February New Technology, Direct Exports and Globalisation to Increase Cost Recovery Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 1: Competitive advantage, cost reduction and cost recovery, pp.7-32. Additional readings: (One of the following) eds. Griffith, A. and Wall, S. (1999) Applied Economics: an introductory course, 8th edition, Pearson Educational, Harlow. Chapter 26: United Kingdom trade performance, pp.603-627; chapter 7, The Multinational Enterprise, pp.128-148. Kitson, M. and Michie, J. ( ) The political economy of globalisation, in Archibugi, D. Howells, J. and Michie, J. (eds.) Innovative Policy in a Global Economy, Cambridge University Press, Cambridge. Chapter 9, pp.163-183. Sutcliffe, B. and Glyn, A. (1999) 'Still Underwhelmed: indicators of Globalisation and their misinterpretation' Review of Radical Political Economics, 31(1), March, pp.111-132, URPE. Monden, Y. (1994 ) The Toyota Production System 2nd edition, Chapman & Hall, Chapter 10, pp. Womack, J. Jones, D. and Roos, D (1990) The Machine That Changed the World, Rawson Associates, London, Chapter 3: The Rise of Lean Production pp.48-70. Williams, K. et al. (1992) Factories or Warehouses: Japanese Manufacturing Direct Investment in Britain and the US, University of East London Occasional Paper No. 6. THEME 2: Cost Reduction 6. 16th February Understanding of Production; Using Productive Intervention to increase Flow Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 4: Competitive business: Industry and sector matrix analysis, pp.87-113. Additional readings: (One of the following) Gilchrist, R. (1971) Managing for Profit: the Added Value Concept, George Allen & Unwin, London. Chapter 6: The Productivity of Labour, pp.55-63; chapter 8: The Productivity of Capital, pp.75-85. Oulton, N. (1987) 'Plant closures and the productivity miracle in manufacturing' National Institute of Economic Research, August, pp.53-59. Williams, K. Haslam, C. and Williams, J. (1992) 'Ford versus Fordism: The Beginning of Mass Production'' in Work, Employment and Society, Dec. Williams, K. Haslam, C. and Williams, J. (1993) 'The Myth of the Line: Ford's production of the Model T at Highland Park 1909-1916' in Business History, vol. 35, no.3, pp.67-85, June. Womack, J. Jones, D. and Roos, D. (1990) The Machine That Changed the World, Rawson Associates, chapter 2: The Rise and Fall of Mass Production pp. 21-47 and chapter 4: Running the Factory pp.75-103 and chapter 6: Co-ordinating the Supply Chain, pp.138-168. 7. 23rd February How Design & Development and Quality Control contribute to Cost Reduction Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 4: Competitive business: Industry and sector matrix analysis, pp.95-100. Additional readings: (One of the following) Hill, T. (1993) Manufacturing Strategy: The Strategic management of the manufacturing function, chapter 3: Order-winners and Qualifiers pp.59-102. Smith, G. (1978) Wealth Creation -The Added Value Concept, Institute of Practitioners in Work Study, Organisation and Methods, Enfield. Chapter 3: Improving Business Performance, pp.41-55; chapter 4: People-The Key to Success, pp.57-64. Vollman, T. Berry, W. and Whybark, D. (1997) Manufacturing, Planning, and Control Systems, 4th edition, McGraw-Hill, London. Chapter 3: Just-In-Time, pp.68-113. Womack, J. Jones, D. and Roos, D. (1990) The Machine That Changed the World, Rawson Associates. Chapter 4: Running the Factory pp.75-103; chapter 5: Designing the Car pp.104-137. Wood, E.G. (1978) Value Added - the Key to Prosperity, Business Books, London. Chapter 8: Cost Reduction, pp.172-191. THEME 3: Stakeholder Analysis 8. 2nd March Using Annual Report and Accounts to Analyse a Business Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 2: A competitive business: A value added framework, pp.33-46. Additional readings: (One of the following) Cox, B. (1979) Value Added: an appreciation for the accountant concerned with industry, Heinemann, London. Chapter 5: Value Added and Measuring Productivity, pp.50-66; chapter 6: Value Added Ratios in More Detail, pp.67-89; chapter 8: Value Added-Comparing the Company with its Industry, pp.118-131. Gilchrist, R. (1971) Managing for Profit: the Added Value Concept, George Allen & Unwin, London. Chapter 7: The Employee's Share of Company Income, pp.64-74; chapter 4: Prosperity and Productivity, pp.34-44. Gray, S. and Maunders, K. (1980) Value Added Reporting: uses and measurement -A Research Study, The Association of Certified Accountants, London. Chapter 2: Uses of Value Added Statements, pp.5-18. Froud, J. Haslam, C. Johal, S. and Williams, K. (1996) 'Stakeholding', Capital & Class, vol ' no.' Neale, A. and Haslam, C. (1994) Economics in a Business Context 2nd edition, Chapman and Hall, London. Chapter 4: Performance evaluation, pp.105-127. Renshall, M. Allan, R. and Nicholson, K. (1979) Added Value in External Reporting: a study of its aims and uses in the context of general purpose financial reports, The Institute of Chartered Accountants in England and Wales, London. Chapter 7: Added Value in the Accounts of Financial Institutions and Other Types of Organisation, pp.69-74. 9. 9th March Institutional Conditions and their impact on business Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 5: Restructuring, financialisation and competitive advantage, pp.115-137; chapter 6: The financial environment, pp.139-166. Additional readings: (One of the following) Charkham, J. (1994) Keeping Good Company: a study of corporate governance in five countries, Oxford University Press, Oxford. Chapter 7: Which System is Best' pp.349-366. eds. Griffith, A. and Wall, S. (1999) Applied Economics: an introductory course, 8th edition, Pearson Educational, Harlow. Chapter 21: Financial institutions and markets, pp.465-500. Stapledon, G. (1996) Institutional Shareholders and Corporate Governance, Clarendon Press, Oxford. Chapter 2: The Growth of Institutional Share Ownership, pp.19-29; chapter 3: The Participants in the UK, pp.33-53. Keynes, J. (1936) The General Theory of Employment, Interest and Money, MacMillan & Co, London. Chapter 12: The State of Long-Term Expectation, pp.147-164. Nolan, P. (1989) 'The Productivity Miracle'' in Green, F. The Restructuring of the UK Economy, Harvester Wheatsheaf. 10. 16th March Case: (1) Using the Value Added Framework: The Case of Privatisation Case: (2) Structural Factors and how they affect the Business Haslam, C. Neale, A. and Johal, S. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. Chapter 2: A competitive business analysis: A value-added framework, pp.53-61. Additional readings: (One of the following) Cox, B. (1979) Value Added: an appreciation for the accountant concerned with industry, Heinemann, London. Chapter 10: Social Consequences of Improving Productivity, pp.153-175. Gilchrist, R. (1971) Managing for Profit: the Added Value Concept, George Allen & Unwin, London. Chapter 4: Prosperity and Productivity, pp.34-44. eds. Griffith, A. and Wall, S. (1999) Applied Economics: an introductory course, 8th edition, Pearson Educational, Harlow. Chapter 8: Privatization and deregulation, pp.159-177. Froud, J. Haslam, C. Johal, S. and Williams, K. (1996) 'The Right Arguments: privatisation reconsidered' in Capital & Class (journal). Neale, A. and Haslam, C. (1994) Economics in a Business Context 2nd edition, Chapman and Hall, London. Chapter 5: Management practice and the limits of management, pp.129-149. Nevins, A. (1954) FORD: The Times, the Man, the Company, Charles Scribner's Sons, New York. Chapter XX: The Five-Dollar Day, pp.512-541. Williams, K. Cutler, A. Haslam, C. Williams, J. (1992) 'Against Lean Production' in Economy & Society, August. Williams, K. Haslam, C. Johal, S. and Williams, J. (1994) CARS: Analysis, History, Cases, Berghahn Books, Chapter 8: BMC/BLMC/BL: Market-led Failure' pp.134-165 and chapter 10: America versus Japan: Bad companies or different social settlements' pp.206-246. Assessment Coursework = 30% - Submit THREE word-processed essays as a single submission -do not submit the essays separately. Your submission must have only one cover sheet. The course team will randomly select ONE essay from the 3 submitted and grade it. Examination = 70% - Essay format - no calculations. Two-hour unseen paper, containing eight questions. Answer three questions. Coursework You must submit 3 word-processed essays (word length: maximum 1,200 words for each essay, excluding any exhibits) from the list below. Essay titles. Answer any THREE questions from the following: 1. To what extent are a company's annual report and accounts useful in understanding and analysing its market, productive and financial performance' Discuss using an extended example. 2. Discuss whether institutional and structural factors in Britain and America prevent management from improving corporate performance. Use examples to illustrate points. 3. "During the recessions of the early 1980s and 1990s overseas competitors tolerated declining profitability that helped to ensure maintenance of capacity. This strategy explains why during the economic booms all except British manufacturing experienced value added growth that exceeded previous peaks." Discuss. 4. How is value-added calculated' To what extent are value added, cashflow, and profit connected to a company's sales performance' Discuss using an extended example. 5. "Cyclicality exerts a powerful influence on a car assembler's sales, value added, cashflow and profit performance." Discuss using an extended example. 6. "Ford at Highland Park and Toyota demonstrate that a growing car market is the necessary precondition for achieving superior productivity." Describe the methods used to improve productivity and critically discuss whether a growing market is a necessary precondition. 7. Use extended examples to compare and contrast the characteristics of a growing and a mature product market. Discuss how different product market phases affect a company's cost recovery. 8. Critically discuss the connections between stakeholder claims and the product market. These questions form the specimen exam paper for the 2008-09 session The essays should be submitted to the School of reception before 2pm on 12th March 2009 and on TURNITIN by midnight 12th arch 2009. DO NOTE: 1. The final two weeks of the workshop programme allots time for non-assessed presentations. This requires a small group presentation with the participants drawn from the workshop group (4 students per group, presenting a short 12 minute company analysis). This activity allows considerable autonomy as your group is free to select any company or companies to analyse, decide group membership, allocate tasks, the form of the analysis (e.g. comparative analysis), format of the presentation and conclusions. (Further information will be given during the first workshop). 2. Participation in group work and presentation is the minimum requirement to ensure your course work submission is marked although the presentation is non-assessed. 3. The course team will randomly select and grade ONE essay from your coursework submission -note that your submission must include 3 essays. 4. After the return of all essays and prior to the examination the course team will provide written guidance and suggestions on the requirements for all 8 questions. Examination You are required to sit a two-hour examination, requiring three essay style answers chosen from eight questions. The examination is sat during the Examination Term (May and/or June). Do note that a specimen exam paper is included in this outline. Recommended textbook Haslam, C. and Neale, A. (2000) Economics in a Business Context, 3rd edition, Business Press (a division of Thomson Learning), London. ISBN 1-86152-400-5. 338.751NEA Reading articles from journals like the Harvard Business Review, Business History/Review, The Economist, The Financial Times and similar type of journals will add to your background knowledge. N.B. Please ensure that you keep all course outlines as they will prove valuable in obtaining exemptions for postgraduate qualifications, e.g. CIMA and useful for future employers. Note that the Department only keeps previous year's outlines for a limited period. Read More