The contribution of these it ms to the final score is defined as follows: - la participation (individual work, quizzes group written a ignments) term project is a sbort (8 pages excluding appendices) writt n term-paper of the actual business ca e relevant to Managerial Economics issues experienced by any student within the group. The group ha to pr nt the term project r port before the cia at es ion 27 or 28
The contribution of these it ms to the final score is defined as follows: - la participation (individual work, quizzes group written a ignments) term project is a sbort (8 pages excluding appendices) writt n term-paper of the actual business ca e relevant to Managerial Economics issues experienced by any student within the group. The group ha to pr nt the term project r port before the cia at es ion 27 or 28
The contribution of these it ms to the final score is defined as follows: - la participation (individual work, quizzes group written a ignments) term project is a sbort (8 pages excluding appendices) writt n term-paper of the actual business ca e relevant to Managerial Economics issues experienced by any student within the group. The group ha to pr nt the term project r port before the cia at es ion 27 or 28
The contribution of these it ms to the final score is defined as follows: - la participation (individual work, quizzes group written a ignments) term project is a sbort (8 pages excluding appendices) writt n term-paper of the actual business ca e relevant to Managerial Economics issues experienced by any student within the group. The group ha to pr nt the term project r port before the cia at es ion 27 or 28
(IPM
Business School
Course Syllabus
< Managerial Economics
Class of Fulltime March 2006
Yulita F. Susanti, Ph.D.
IPMI Business Schoo!
Graduate Programs
The Indonesian institute for Management Development
Jakarta — indonesia
btwritten assignments, a mid-term exam and a final exam. The contribution of these items to the
final score is defined as follows:
= Class participation (individual work, quizzes,
group written as (25%)
~ A Term-project (group work) (25%)
= Midterm Examination (20%)
0%)
Aecietance lo oRkict 1G avalos
Term Project
[A term project is a short (8 pages excluding appendices) written term-paper of the actual
business case relevant to managerial economies issues experienced by any student within the
group. This group-based term project is required by the course to assess the student's ability to
apply one of the topies covered in the course. The project should be based on some of the
actual work experiences in the student’s provious or current employment, The report is due ia
class on Session 26, The group has to present the term project report before the class at
session 27 of 28. Evaluation of the term-project involved peer-ranked assessments in terms of
complexity, of relevance to proposed topic or economic concepts being applied, of breadth and
depth of the analysis, and of clarity and effectiveness ofthe presentation,
Topics, Reading and Cases
‘Module I: Microeconomics Issues
Session 1
‘Topic : ‘The Fundamentals of Managerial Economics.
Issues covered: = Objectives and structure of the course
= Nature and scope of Managerial Economics
Activity Lecture and general class discussion
Required reading: Salvatore, Dominick (2001). Chapter 1
Session?
Topic ‘The Fundamentals of Managerial Economics.
Issues covered - KeV of Microeconomics Concepts.
~ Introduction to the time value of Money.
Marginal Analysis
Activity Lecture and general class discussion
Required reading: Salvatore, Dominick (2001). Chapter 2.Market Demand,” Harvard Business Review, July-
August 1988.
Case Case #2.£.2. Phone Home: Forecasting Business
Demand (HBS case #: 9~ 583-121)
(Presentation: Groups U1)
ess and marketing problems will ETPH managers face if they are
granted an FCC cellular radio license forthe proposed area?
- , Regarding Digitcon’s business demand forccast - how would you assess the firm's approach
* to he forecasting task? (eg. do you consider their aggregate forecasting model to be
adequate to the forecasting task? Why or why not?
= What scems to you to be the strongest (and weakest elements ofthe Digitron approach?
= How would you revise (or otherwise deal with) the weak elements (i any) of the forecast?
ton ee Se
Topic: Production Analysis
Issues covered: Short and long-run production function,
- Total cost, average cost, marginal concepts
Activity + Lecture, and Class Discussion
Reading Salvatore, Dominick (2001). Chapter 6.
Session 8
Topic: Production Analysis
Issues covered: - Short and long-run production function.
~ Total cost, average cost, marginal concep's
Activity + Lecture, Case and Group Presentation
Reading Salvatore, Dominick (2001). Chapter 6,
Cases 2 Case #3. PT. Zebra Taxi (C)
(Presentation: Groups 111)
Note: Submit ofthe outline of the group term project report.
Guiding questions:
~" Regarding Supply and Demand Choracteristios (See Exhibits 1-5 of the case) do. you
consider these data adequate for the company to develop the “low cost focus” strategy the
company seems to engage in? Why oF why not?
= What seems to you to be the strongest (and weakest) eleren
economic analysis in taxi market in Surabaya?
, iFany, of Mr. Pudjianto’sSession 12
Topic Market Structure and Pricing Analysis 11
Issues covered : - Pricing in duopoly and oligopoly markets,
- Price and non-price competition, limit pricing, and price
leadership,
Activity Lecture, case discussion, and group presentation
Reeding + - Salvatore, Dominick (2001), Chapter 10.
AR. Rao, M. E. Bergen and S. Davis (2000). “How to fight a
price war.” Harvard Business Review, March ~ April, 2000.
Case + =Case # 6. Lill Tissages, S.A. (HBS ease # 9-198-005).
Assignment Questo’
‘Analyze the case according to questions written at p.2 of the
case.
(Presentation: Groups 11)
Ses
Topic : Pricing of multiple-products, price discrimination and
transfer pricing,
Issues covered: _- Pricing of products with interrelated demands.
= Optimal pricing of joint-product.
~ Meaning of and conditions for price discrimination,
~ Transfer pricing,
Reading Salvatore, Dominick 2001). Chapter 11
Activity Lecture, general discussion, group presentation
Topic : Pricing of multiple-products, price discrimination and
transfer pricing,
Issues covered: _- Pricing of products with interrelated demands.
+ Optimal pricing of joint-product.
- Meaning of and conditions for price discrimination.
«Transfer pricing.
Reading Salvatore, Dominick (2001). Chapter 11
Activity: Lecture, general discussion, group presentation
Case : Case #7: Great Giant Pineapple Company / GGPC (A)
(Presentation: Groups 111)
Guiding Questions: GGPC (A)
= 1s GGPC competitive in Indonesia and international markets? Why?
= What factors, if any, contributing to the GGPC suecess or failure in developing the
pineapple business?
= Has GGPC been able to exercise some sort of monopolistic power in these markets?
Explain!
6inflation,
Reading: ~~ Dombusch, Fischer and Startz(DFS): Chapters 1, 2.
= National income Accounting. Harvatd Business Schoo},
HBS # 9-797-075.
Activity = Lecture, and general discussion, quit.
‘Session 18 ——
Topic « Introduction (continued)
Issues covered = Money, interest, and income
~ Goods market and the IS curve
+ Assets markets and the LM curve
+ Bquilibrium in the goods and assets markets
Reading :___ ~ Domibusch, Fischer and Startz (DFS): Chapters 5.
Activity = General discussion and group presentation
Group Assignment, Do problems #4 and 5 (conceptual problems) of DFS, p. 96
and Technical Problems # | and 2 of DFS, p. 97
‘Submit these group assignments before the class.
(Presentation: Groups 1)
‘Session 19
Topic + Agregate Supply and Aggregate Demand
Issues covered: Understanding the macroeconomics indicators
Reading: Dombuseh, Fischer and Startz (DFS): Chapters 546 and
www casileasia.com: www adh org / economics
- Herdiansjah, D. (April, 2002).)Why Managers Need To Have Some
Sori of Understanding In Macroeconomics: An
Indonesian Economy-Based Empirical Perspectives. Institut
Pengembangan Manajemen Indonesia, Jakarta.
Draft ME-2002.
Activity: Class Lecturer and General
‘Session 20 ss
Agregate Supply and Aggregate Demand
= Understanding the maerozeonomics indicators
- Dombuseh, Fischer and Starz (DFS): Chapters 546 and
www castleasia.com: www adb.org / economics
~ Herdiansjah, D. (April, 2002).)7hy Managers Need To Have Some
Sort of Understanding In Macroeconomics: An
‘Indonesian Economy-Based Empirical Perspectives. Institut
Pengembangan Manajemen indonesia, Jakarta.
Draft- ME-2002,
Activity General discussion and group presentation
Case Case #9, PT. Yanmar Diesel Indonesia. Institutwith some major issues facing by the company, taking into account
‘mactoeconomie conditions and financial consequences outlined in the ease?
= How would you meke use of the data presented in Exhibit 4 ofthe ease, ifany,
to build your recommendations?
Session 23,
Topic + International Economies and the Global Economy
Issues covered: Balance of payments and exchange rates,
-~ Exchange rates basic.
+ -. Exchange Rates Regime.
Reading: ~~~ Dorbuch, R.,S. Fischer and R. Startz (2001): Chapters 12.
‘Activity Class Lecture General discussion.
cession 24
Topic + International Economics and the Global Economy
Issues covered: Corporate restructuring and privatization
Reading: ~~~ Dormbuch, R., S. Fischer and R. Startz (2001). Chapters 12.
Activity: Group preseatation
Case Case # 11. NAPOCOR Privatization: Power in the
Philippines
(Presentation: Groups 1V)
Guiding question:
o Tn what ways that macroeconomic indicators are relevant, oF not so, tothe case
‘being analyzed? Why does your group think so?
How far should the Philippines Government regulate the power utility companies,
particularly NAPOCOR?
How many pieces should the NAPOCOR Exevative split the company generating assets
into? Why?
= Ifyou were « NAPOCOR corporate advisor assigned to help Mr. Delgado, what would you
ao?
Session 25
Topic : Indonesia in The World Markets
Issues covered : ~ Resource capabilities and factor endowments
~ Extemalities and environmental issues
Reading + Seiji Naya and Chatless Morrison: “ A New Strategy Agenda:
ASEAN, AFTA and APEC”.
~ Salvatore, Dominick (2001). Chapter 12
‘Activity + Class lecture General discussion.
Session 26Managerial Economics
Regular MM ~ Fulltime 2006 Class
A Guideline for Group Term Project
Term Project Report
Due date:
(1) Submission ofthe proposed topic, abstract and outline ofthe paper: Due at the end of,
Session 11
(2) 1% draft is due atthe end of Session 21
(3) Final draft is due atthe end of Session 25
(2) Presentation ofthe paper by each group at Sessions 272nd 28
1. Introduction
Background
(Explain why your group chooses @ particular topic and why the proposed project is important
toll stakcholders)
~ Objectives of the proposed project (Business Plan)
= Qualitative measures (Bigger issues, Strategic management)
= Quantitative measures (from the point of view of Strategie Management,
Marketing, Production and Operation, and Financing Decision)
ince of the Proposed Project (Your Business Plan)
‘Competitive Analysis: Industry structure where you are, 4
= Strengths and potential weaknesses of your company with regard to you Business
Plan (strategic cluster analysis)
3. Assessment of Functional Areas Relevant to your Business Plan
311. Description ofthe proposed Product(s) / Services) / Capacity Expansion / Cost
Reduction ete. (Choose any relevant issue fit to your Business Plan / Cases to be
determined),
32, Detail Analysis
Assessment on Marketing Plan
+ Operational Plan (Including R&D?)
+ Proposed Management and Organization Deployment
+ Major Milestones
+ Structure and Capitalization
- Financial Plan.
4. Proposed Pian of Action(s)
‘Major proposed achievement
Specific proposed achievement
5. Attachments to the Business Plan/Report (Cost structure, Demand Estimate,
Financial and capital budgeting, ete.)
6. Further Considerations,
‘Yulit F Susan PLD&
210 Part2 I Demand Theory, Analysis, and Estimation
paying customers. You collect monthly data for the period from January 1986 to June
1988, which is given in Table 1. Use this data to estimate the trend line for domestic air
travel. Then use your results to answr the following questions.
QUESTIONS
1. Plot the data to see if there is any apparent trend. Does the trend appear to be upward or
ownward sloping?
2. Does your regression analysis support your casual observation? Graph your estimated trend
line on your plot. Why are there diserepancies between the actual observations and your trend
Tine?
3. Using your estimated trend line, what are your forecasts for the pesiod from July 1988 to
December 1988? How confident ae you with these Furecatts?
‘4. Does there appear to be any seasonal Yariation in airline travel? Whe. are some of the methods
that can be used to adjust for tbese seasonal diferences? Choose one such method and present
‘an adjusted forecast.
5. Which forecast, rend or seasonally adjusted, are you going to present to your director? Ex:
iin.