ECMC40F: Lecture 01 ECONOMICS OF ORGANIZATION AND MANAGEMENT Fall 2012

Instructor Contact Information: Professor: April M Franco Office: IC 290 Office hours: Thursday 1:30 to 2:30 or by appointment Email: [email protected] Telephone: (416) 287-7360 Class day/time: Thursday 11:00 1:00 p.m. Class location: IC 204 Course website: portal.utoronto.ca Course Description: This course covers the economics of the internal organization of the firm. Our main focus will be to learn how to analyze a companys business environment, select a strategy, and construct the organization necessary to put this into action. We will build on insights developed in other courses, such as Price Theory, and comparative advantage. Topics will include agency theory, risk sharing, economies of scale and scope, competition, commitment, pricing, positioning and sustainability. By the end of the course, students will be able to explain why some firms are more profitable than others and whether this above average profitability is sustainable. Prerequisite(s): ECMB01H or ECMB02H (ECOB03Y or ECOB04Y) Textbook/Required Course Materials: Economics of Strategy (3rd, 4th, 5th, or 6th Edition), by D. Besanko, D. Dranove, M. Shanley, and S. Shaefer, John Wiley and Sons. In addition, there will be three cases used to help students apply their knowledge in a business context. These cases are available for purchase online at http://cb.hbsp.harvard.edu/cb/access/15387698 Lecture Notes and Other Announcements: Most of the study materials such as slides, assignments, and other materials and important announcements will be posted on the course webpage on the portal. Check the portal regularly for important, time-sensitive announcements. It is the students responsibility to make sure that his/her email address on the portal is correct and one that you check regularly. Apparently only utoronto.ca email addresses are valid on Blackboard, so if you regularly access a different e-mail account, please forward your utoronto.ca e-mails to that account. Typically, I will respond to e-mails within 48 hours. In cases where I will not be able to respond in a timely fashion, I will post an announcement.

Evaluation and Grading:

Component Memo 1 Homework 1 Midterm Examination Memo 2/3 Homework 2 Final Examination

Weight/Value 10 % 10% 20% 10% 10% 40%

Due Date October 4 October 18 TBA November 1/15 November 22 TBA

There will be a midterm examination, worth 20% of the final course grade, and a final examination, for 40% of the final course grade. The dates for the mid-term and final examinations will be announced once finalized by the registrars office. In addition, there are two homeworks and two memos worth 10% each. While there are three memos listed, only two must be submitted; students can select which of the three memos to submit. The memos will be due on October 4, November 1, and 15. Each of the memos will be based on a case. The homeworks will be due on October 11, and November 22. All homeworks must be submitted in class and all memos must be uploaded to turnitin.com. Faxed or emailed assignments will not be accepted. No late assignments will be accepted. The midterm and final examinations will emphasize applied and theoretical problem solving with some, but less, emphasis on short answer and essay questions. Test questions will focus on material covered in lecture, homework questions, memos and topics covered in discussion. The mid-term examination covers the material in the first part of the course while the final examination covers the material from the entire course. Policy on Missed Assignments/Examinations: No late assignments will be accepted. If you miss the midterm examination due to illness and provide a doctors note, the weight will be shifted to the final examination. Policy on Calculators The use of a simple, non-programmable, quiet, non-printing calculator will be permitted in all tests and examinations. Only 6 function calculators will be acceptable. Students will not be permitted to share calculators and should take adequate precautions against calculator failure during a test. No allowance can be made for calculator failure or malfunction. Policy on Re-grades If, after looking over your grade for your examination, homework, or memo, you feel that your work merits re-grading, you must observe the following procedures:
Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

Submit your re-grading requests within one week for a homework or memo and two weeks for the midterm examination of receipt (date of distribution) of the original grade. No re-grading requests will be considered after the time limit has passed. The re-grading request will include a typed or neatly hand written note containing the following: (i) your name; (ii) your student number; (iii) the question number you believe was graded incorrectly; and (iv) explanation of why you feel your material is correct. The note must be attached to your examination.

The entire examination, homework, or memo will be reevaluated. Thus, it is possible to lose points as well as to gain points through re-grading. If you do submit your examination for reevaluation, do not write on your exam or alter it in ANY way. If you do so, this may be considered a violation of the Academic Regulations and Code of Student Conduct. If there is an error in totaling up your score, you may write this on the cover of your test. Indicate what you think the total should be and return it to me as soon as possible. Academic Support The Department of Management, in collaboration with the UTSC library, will be providing academic research support in the IC Building. To refine your research skills or to learn more about various scholarly resources, please contact the Librarian for Management and Economics students. Lola Rudin, Subject Librarian, Management and Economics Room IC375 Office hours: Thursday, 2:00 3:00pm or by appointment Email: [email protected] Web: http://guides.library.utoronto.ca/utsc_mgmt The English Language Development Centre (ELDC) helps students develop the critical thinking, vocabulary and academic communication skills essential for achieving academic and professional success. Personalized support includes: RWE (for academic writing); Communication Cafs (oral); Discussion Skill-Building Cafs; Vocabulary Cafs; seminars/workshops; personal ELD consultations; drop-in sessions. http://ctl.utsc.utoronto.ca/eld/ The Writing Centre (TWC) offers invaluable services to students (learn to become a better writer!) and offers many different kinds of help: drop-in sessions, individual consultations, workshops, clinics, and online writing handouts. http://ctl.utsc.utoronto.ca/twc/ Academic Misconduct Students should note that copying, plagiarizing, or other forms of academic misconduct will not be tolerated. If you are uncertain as to what might constitute plagiarism, please turn to http://www.utsc.utoronto.ca/~tlsweb/ELD/ELDplagiarism.htm for a brief overview. Any student caught engaging in such activities will be subject to academic discipline ranging from a mark of zero on the assignment, test or examination to dismissal from the university as outlined in the academic handbook (see http://www.utoronto.ca/govcncl/pap/policies/behaveac.html). Any student abetting or otherwise assisting in such misconduct will also be subject to academic penalties.
Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

Students with Disabilities Students with a disability/health consideration are encouraged to approach me and/or the AccessAbility Services Office (287-7560) as soon as possible. They can also drop by the office, S302B, inside the Resource Centre. The Coordinator is available by appointment to assess specific needs, provide referrals and arrange appropriate accommodations. We will work together to ensure you can achieve the learning goals in this course. Preparedness Statement Students are advised to consult the universitys preparedness site (http://www.preparedness.utoronto.ca/Emergency_Preparedness_Plan.htm) for information and regular updates regarding procedures relating to crisis planning and individual student responsibilities. Important Dates September 24 October 11 October 18 Mid-term Test November 1 November 15 November 19 November 22 December 3 December 3 December 4-6 December 7-21 Last day to add FALL (F) courses First memo due First assignment due Date to be announced Second memo due Third memo due Last day to drop FALL (F) courses Second assignment due Last day for submission of term assignments Last day of classes in the FALL term Study Break FINAL EXAM PERIOD

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt

Tentative Detailed Course Outline:

Economics of Organization and Management ECM C40F Lecture 01 Week 1 Date Sept. 13 Topic Course Overview The Horizontal Boundaries of the Firm & Diversification The Vertical Boundaries of the Firm Organizing Vertical Boundaries Case: Nucleon 5 Oct. 11 Competitors and Competition Competitors and Competition Strategic Commitment Dynamic Pricing 8 9 Nov. 1 Case: Dupont Nov. 8 Strategic Positioning Agency and Coordination Case: Husky 11 12 Nov. 22 Nov. 29 Agency and Coordination Review and Summary FINAL EXAM PERIOD Hand-out 3 Homework 2 11 13 8 10 Memo 2 6 8 Chap. BDSS (3rd/4th Ed.) Primer & 1 Chap. BDSS (5th Ed.) 1&4 Assignment

Sept. 20

2&5

2&7

Sept. 27

Oct. 4

Memo 1

6 7

Oct. 18 Oct. 25

6 7

8 9

Homework 1

10

Nov. 15

Hand-out

Memo 3

Dec. 7-21, 2011

Management, 1265 Military Trail, Toronto, ON, M1C 1A4, Canada www.utsc.utoronto.ca/mgmt