PORTALE DELLA DIDATTICA

PORTALE DELLA DIDATTICA

PORTALE DELLA DIDATTICA

Elenco notifiche



Business Economics and Organization

01NMDQD

A.A. 2024/25

Course Language

Inglese

Degree programme(s)

Master of science-level of the Bologna process in Ingegneria Meccanica (Mechanical Engineering) - Torino

Course structure
Teaching Hours
Lezioni 40
Esercitazioni in aula 40
Lecturers
Teacher Status SSD h.Les h.Ex h.Lab h.Tut Years teaching
Pesce Danilo   Ricercatore a tempo det. L.240/10 art.24-B IEGE-01/A 20 0 0 0 3
Co-lectures
Espandi

Context
SSD CFU Activities Area context
ING-IND/35 8 C - Affini o integrative A11
2024/25
The subject aims to provide the basics knowledge to understand the economic environment in which businesses operate, the tools used for economic assessment and to plan production activities, analytical techniques to perform economic control of industrial processes, the knowledge of the principles of industrial organization and the various forms of organizational structure.
The course introduces students to the fundamental concepts and principles of business economics and organization, with a focus on financial and management accounting, financial statement analysis, the separation of ownership and control, decision-making processes (both short- and long-term), and the impact of digital transformation and intellectual property rights on company management. It is structured into three distinct yet complementary parts. Lectures include case discussions and exercises to equip students with the skills necessary to manage economic and financial information effectively. The course begins with an overview of how digital technologies are transforming organizations’ products, processes, and business models, creating new opportunities alongside strategic, economic, and organizational challenges. The first part then continues with the study and interpretation of the two primary accounting documents: the Balance Sheet and the Income Statement. The Balance Sheet provides a snapshot of a company’s assets at a specific point in time, while the Income Statement reflects costs and revenues over a set period. These documents offer distinct yet complementary insights into a company’s performance over time. Through financial statement analysis using indexes, students will learn to interpret the information in these documents to assess a company’s evolution, financial health, and future prospects, including changes in its business models. This analysis will form the basis of a Project Work, where students will work with real data from major US companies (e.g., Amazon, Netflix, Meta, Google). The second part of the course focuses on management accounting techniques and methods that support management in strategic planning, performance control, and business monitoring. Topics include cost classification and allocation, and short-term decision-making processes such as break-even analysis, product mix strategies, and make-or-buy decisions. The third part introduces students to the concepts and techniques of long-term decision-making, particularly in relation to capital budgeting and investment planning. A specific emphasis is placed on the factors that influence investments in innovation. Given the inherent uncertainty and risk in innovation-related investments, firms must adopt unique strategic approaches, which will be explored in depth. This section also covers the origin, nature, and role of intellectual property rights in protecting innovations and securing the economic returns of these investments. These topics are especially relevant in the context of the ongoing digital transformation.
Knowledge of economic basic that regulate life of companies and the external economic environment. Knowledge of economic and financial dynamics of companies and the legal forms of contracts for the exercise of economic activities. Knowledge of the principles of industrial organization, organizational structure, labor organization, and the key functions in the enterprise. Knowledge of techniques and methodologies for monitoring and evaluating processes and financial results of a company. Ability to understand the economic and financial periodic reports and synthesis. Ability to assess the ROI of a proposed investment. Ability to make decisions and corrective actions based on economic considerations. Ability to link typical processes of an industrial company with its dynamics and economic and financial performance. Ability to perform production planning based on economic considerations.
The course aims to provide students with foundational knowledge in Business Economics and Organization, focusing on the core concepts of capital, economics, and finance, the differing roles of management and ownership, short- and long-term decision-making processes, as well as an understanding of external phenomena such as digital transformation and patents. By the end of the course, students will be able to: - understand the vocabulary of financial accounting - understand and interpret the structure of financial statements (Balance Sheet and Income Statement) - analyze financial statements to extract information relevant for strategic decision-making - evaluate the economic and financial performance of a company - understand the tools used by managers for decision-making - plan and assess strategic and operational decisions - analyze the performance of investments - comprehend the mechanisms underlying innovative activities and their impact on firm strategies - recognize the challenges and opportunities posed by digital transformation and its impact on organizational structures and business strategy - understand the role of intellectual property in innovation management and business strategy
Elements of mathematical analysis.
There are no pre-requirements.
The subject aims to provide students with the knowledge of basic economics, management and business administration and is divided into three main parts, performed in an integrated way. The first part provides the basic elements to introduce students into economics and to understand the behaviour of companies in a market, presenting the basic concepts of micro and macroeconomics. The subject will present and discuss concepts such as consumer behaviour and customers decision in a market, the demand curve, the nature and behaviour of costs in an enterprise, short and long term decisions and the equilibrium conditions in both goods and financial markets, as well as the main forms of market (perfect competition, monopoly and oligopoly). Strategic decisions of firms will be analysed using basic elements of game theory (interaction in a strategic environment). Starting from the elements learned about the nature and behaviour of a company in the economic system, the second part focuses leadership and organization. Organization structures and theories will be analysed both at a theoretical and a practical (case-studies) level. The last part of the subject deals with an introduction to accounting, with some Financial Accounting and Financial Statements topics as well as Managerial Accounting (Cost accounting) and investment decision methods.
The course is structured in three distinct but complementary parts: PART I - Business Organization in times of Digital Transformation: Today’s Challenges for Tomorrow’s Engineers - Basic Accounting Concepts - Balance Sheet and Income Statement - Financial Statement Analysis - Case study and exercises PART II - Managerial Accounting and Cost Concepts - Cost-Volume-Profit Relationships - Differential Analysis - Variable Costing and Absorption Costing - Overview of Product Costing systems - Introduction to Budgets - Exercises PART III - Capital Budgeting - Cost of Capital, Net Present Value, and Cash Flows - Payback and Internal Rate of Return - Innovation in the organization - IPRs and Patents - Exercises
During the course, students will have the opportunity to carry out an individual Project Work on the financial statement analysis of a company of their choice among the S&P 500 (i.e., the 500 largest companies listed on stock exchanges in the United States). The Project Work will be worth up to 4 points, which will be added to the grade for the written test. The evaluation of the Project Work will be based on the following criteria: - order, accuracy, and correctness in calculating financial ratios: 1 point - quality in the presentation of results and secondary source references: 1 point - contextualisation of the financial analysis to the company's business model and competitive dynamics (e.g., industry sector, competitors, changes in customer needs and preferences, geopolitics, regulation): 1 point - discussion and interpretation of results: 1 point
During the course, students will have the opportunity to complete an individual Project Work focused on the financial statement analysis of a company of their choice from the S&P 500 (i.e., the 500 largest companies listed on stock exchanges in the United States). The Project Work will be worth up to 4 points, which will be added to the grade of the written test. The Project Work will be evaluated based on the following criteria: - Order, accuracy, and correctness in calculating financial ratios: 1 point - Quality in the presentation of results and use of secondary source references: 1 point - Contextualization of the financial analysis within the company’s business model and competitive dynamics (e.g., industry sector, competitors, changes in customer needs and preferences, geopolitics, regulation): 1 point - Discussion and interpretation of results: 1 point
The subject is lecture-based, even though a high level of interaction is expected and required. Students are asked to participate to the lectures with their own personal contribution. In the game theory part students are asked to become an active part of the lecture and to "play" simulation and games. Students that want to analyse deeper a topic of the course may prepare an additional work (little academic paper) on one of the many topics explained in classroom lessons, applied to a real case-study. This works should contain at least the following elements: - purpose of the paper (i.e. topic) - essential theoretical elements - a case study - your personal conclusions - references/bibliography The additional paper must be uploaded on the course "portale" before the day of the written exam and will be graded by the teacher. It will provide the students up to 2 points in the final mark.
The teaching includes theoretical lectures and classroom exercises in the form of numerical problems and case studies.
The material for the subject consists of slides, readings, videos and links provided by the lecturer , available on the “portale didattica”, on the Subject Page.
- Lecture support slides made available on the course web platform - Exercises with solutions and past exams made available on the course web platform - Suggested textbooks: (i) Anthony, R. N., Hawkins, D. F., & Merchant, K. A. Accounting: Text and Cases. McGraw-Hill. (ii) Garrison, R. H., Noreen, E. W., Brewer, P. C. Managerial accounting. McGraw-Hill. (iii) Horngren, C. T., Sundem, G. L., & Stratton, W. O. Introduction to Management Accounting. Pearson Education.
Slides; Esercizi risolti; Strumenti di simulazione; Strumenti di auto-valutazione; Strumenti di collaborazione tra studenti;
Lecture slides; Exercise with solutions ; Simulation tools; Self-assessment tools; Student collaboration tools;
Modalità di esame: Elaborato progettuale individuale; Prova scritta in aula tramite PC con l'utilizzo della piattaforma di ateneo;
Exam: Individual project; Computer-based written test in class using POLITO platform;
... Open or closed written test by computer The final examination aims to verify the acquisition of the knowledge and skills covered in the course by means of a test consisting of numerical exercises and theoretical questions relating to all the topics covered in the lectures and exercises. The test grade is expressed in thirtieths and honours will always be possible. The time available to the student for the written test is 1 hour 15 minutes and it is not possible to consult lecture material, notes, or other texts.
Gli studenti e le studentesse con disabilità o con Disturbi Specifici di Apprendimento (DSA), oltre alla segnalazione tramite procedura informatizzata, sono invitati a comunicare anche direttamente al/la docente titolare dell'insegnamento, con un preavviso non inferiore ad una settimana dall'avvio della sessione d'esame, gli strumenti compensativi concordati con l'Unità Special Needs, al fine di permettere al/la docente la declinazione più idonea in riferimento alla specifica tipologia di esame.
Exam: Individual project; Computer-based written test in class using POLITO platform;
The final examination is designed to assess the acquisition of knowledge and skills covered in the course through a multiple-choice test, which includes both numerical exercises and theoretical questions on all the topics discussed during lectures and exercises. The test will be graded on a scale of thirty, with the possibility of honors. During the course, students will have the opportunity to complete an individual Project Work focusing on the financial statement analysis of a company of their choice from the S&P 500 (i.e., the 500 largest publicly listed companies in the United States). The Project Work can contribute up to 4 additional points, which will be added to the grade of the written test (see the Additional Information Section for the Project Work evaluation criteria). The time allotted for the written test is 1 hour, during which the use of lecture materials, notes, or other texts is not permitted.
In addition to the message sent by the online system, students with disabilities or Specific Learning Disorders (SLD) are invited to directly inform the professor in charge of the course about the special arrangements for the exam that have been agreed with the Special Needs Unit. The professor has to be informed at least one week before the beginning of the examination session in order to provide students with the most suitable arrangements for each specific type of exam.
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